10136(c)(12) Treated Unfairly? Your District Attorney is Here to Help.
And the Attorney General too. According to 10136(c)(12), the transfer company has to put a statement in the Disclosure Statement to the consumer stating, if you feel you are being ripped off, treated unfairly, or that you have been railroaded into doing something you don’t want to do, call your District Attorney immediately!
The Attorney General will hear from the transfer company anyway. The Attorney General doesn’t want to hear from the consumer; that would mean something is terribly wrong.
10136(c)(12)The following statement: “If you believe you were treated unfairly or were misled as to the nature of the obligations you assumed upon entering into this agreement, you should report those circumstances to your local district attorney or the office of the Attorney General.”
So, if you feel, at any point in the game, that you are being treated unfairly, you get the Attorney Generals attention, and whether or not you meant to be a whistler blower, you’ve blown a loud whistle.
Do you have your own health insurance? Is it sufficient to cover those future medical expenses? These are the types of questions and more that an independent professional adviser will ask you to help you assess whether or not you fit the criteria to be “granted” in court.
If you attempt to sell your payments, and get denied, it goes on record. Best to be as prepared as possible.
California Insurance Code 10139.5(b)(7) states “Whether the payee is, at the time of the proposed transfer, likely to require future medical care and treatment for the injuries that the payee sustained in connection with the incident that was the subject of the settlement and whether the payee lacks other resources, including insurance, sufficient to cover those future medical expenses”.
This clause is part of the “best interest” of the payee criteria the judge uses to see if it is in the “best interest” of the payee to sell their future payments. If the judge finds that it is not in your best interest, the sale does not go through.
California Insurance Code 10139.5, and what follow, simply state in the opening paragraph, “…has been approved in advance in a final court order based on express written findings by the court…” and it goes on to explain for exactly what the court is looking. For more information, take a look at the plain meaning by googling™ “CA Insurance Code 10139.5“.
The law is located in the California Insurance Code in Sections 10134 to 10139.5. Under the law, judges have a 15 point plus criteria and checklist to determine if a transfer should be approved.
Structured Settlement Protection Act Experts
If even one requirement is not met, a judge can also issue a postponement or a “continuation” for a later date to give you time to correct the mistake, or in other cases even issue a straight denial of your transfer.
Hiring an independent professional advisor that focuses on this type of work is the not only the best way to increase the chance that your transfer will be approved by a Court, but also that your transfer will be approved in one hearing.
This is legal. The transferee, the structured settlement obligor, or the annuity issuer, must be from the county of original jurisdiction, in this case, it was San Bernardino County (10139.5(f)(1)).
The transfer company and their attorneys do not have to be from the county of original jurisdiction. If there is another party buying the payment stream as a recycled annuity, they do not have to be from the county of original jurisdiction as well.
The sad part here, the resident had no independent professional adviser. We have no idea what price he got for his dollar. Rates differ with different companies, especially “out-of-state” companies.
The independent professional adviser is an accomplished thinker trained in performing due diligence on your behalf. In this particular case, the resident dealt with a well established law firm who’s practice areas are “workers compensation”, “personal injury”, “bankruptcy”, “labor law”, “real estate”, “business law”, “social security”, and they command a hefty price for their services.
Then there is the bank in New York. Did the resident really have bargaining power with a bank in New York that is a “full service, federally chartered savings bank serving professional service firms, law professionals, etc.”?
In addition, who was the third party mystery person? Did they buy the payment stream? Did this resident even know that angle of this whole deal?
It’s not that the resident or the “transferee” or the “payee” needed to understand the whole process, it is protection the resident needed. The resident had no idea what options were out there, the resident was unrepresented; and it didn’t have to be that way. California law provides $1,500 for an independent professional adviser.
Let’s go over some real life collisions/accidents in California that ended in settlements:
Settlement: $2,409,000.00-“Wrongful Death Arising Out of Traffic Accident Involving Truck-Insured’s truck driver attempted to make a left turn across highway when an auto coming in the opposite direction struck the side of the trailer.” AIG Claims Archive Search
Settlement: $2,063,000.00-“The insured operates auto repair shops. A vehicle was involved in an accident, which killed the driver and injured the passenger, after being worked on at the insured’s shop. It is alleged that the insured ground down the brake rotors too far, installed the wrong brake calipers, and when rotating the tires, placed the tires with less thread on the rear instead of the front. Testing concluded the rotors had been ground down past applicable limits. There was no difference in the thread in the front and rear tires. The police reconstruction test concluded the accident was caused by operator error-driving too fast on a wet roadway. Insured accident reconstructionist concluded the same.” AIG Claims Archive Search
Settlement: $11,036,000.00- “The insured is a retail pharmacy. The insured’s pharmacy had been filling prescriptions for a minor patient over a 14-month period. The patient was receiving a drug used to control a seizure disorder and was seizure free over that period of time. The pharmacy misfilled the prescription with the wrong dosage of the drug. The patient suffered an overdose of the drug. The patient was treated and considered to have recovered, but suffered significant complications several weeks later as seizures returned.” AIG Claims Archive Search
Where does all this money come from? Insurance companies are backed by underwriters, that are backed by larger insurance companies that are backed by even larger multinational insurance companies, that aren’t even called insurance companies anymore at this level; they’re called “Financial Institutions” that sell and buy “financial products”, like annuities, that make up structured settlements.
The cases above were settled because the money was made possible by the giant Financial Institution, the annuity issuer, who in the end gets notified if one of these claimants decides to sell parts or all of their settlement.
If you were to sell part or all of your settlement, you will be going up against this type of insurance giant, because they get notified if you decide to sell. It’s the law. Requirements of California Insurance Code §10139.5(f)(2) requires that a notice of the proposed transfer and the application for its authorization be filed with the court and served on all interested parties not less than 20 days before the scheduled hearing on any petition for approval of a transfer of structured settlement payment rights.
This includes the insurance giant that issued the expensive annuity, the underwriters, and the original insurance company. Are you prepared to go up against these insurance giants?
Transfer Companies are big, insurance-type companies that communicate everyday with the insurance companies. By obtaining independent professional advice, you can step outside of the insurance arena and be represented independently. Let your independent professional adviser protect you and rescue you from the insurance giants.
The information you obtain on this website is not, nor is it intended to be, legal advice. You should consult with a structured settlement attorney for individual independent professional advice regarding your own situation. Prior case results do not guarantee a similar outcome. Each case and facts are different.
Contacting our law firm does not create an attorney-client relationship. Don’t send us confidential information before we represent you. No attorney-client relationship is created until we agree to represent you in writing