Negotiating and Processing the Structure

Here are the steps to follow in negotiating a structure:

1. Counsel consults with a structure broker regarding the plaintiff’s needs. We examine future care reports, rehabilitation reports, work capacity evaluations and other professional reports. This material is sent to several life insurance underwriters to determine whether the plaintiff’s life expectancy has been reduced. (Benefits may be made higher if the plaintiff has a reduced life expectancy.)

2. The structured annuity broker will:

i. Design the appropriate payment schedule for the plaintiff

ii. Obtain quotes for the cost of the structure from several underwriting life insurance companies

iii. Discuss various options with counsel.

3. After obtaining the quote, counsel then makes a proposal — to the plaintiff or the casualty insurance company, depending on who is advocating a structure — describing the desired schedule of payments, plus a lump sum payment of up-front money.

4. In the alternative, counsel may propose settlement of a certain quantum while reserving the right to structure a portion of the settlement.

5. Once the plaintiff selects the structure option they like the funding is requisitioned and is paid to the life insurance company. Quotes are valid for three business days, and the life insurance company must receive the funds before the end of the third day.

6. The broker then prepares an application and forwards it to the casualty insurer for signing. (The document is actually more of a “submission” than an “application” since the structure has already been placed.)

7. The broker reviews the draft settlement documents.

8. The signed application is sent to the life insurance company.

9. The annuity policy is issued together with certified copies.