Structured Settlements 4Real: What's Real in the Structured Settlements, Settlement Planning, Settlement Consulting and Litigation Recovery Management Space?

Beer Sheva Isn't Exactly The Hot Bed of Structured Settlement Information

2009-07-18T12:11:50-04:00

Big Noise from "The Holy Land"! Ohad Raz has created THE STRUCTURED SETTLEMENTS blog (emphasizing the block capitals). The thing is that it contains very little credible information about structured settlements. In my opinion a more appropriate name for the blog would be "Raz-gulla", for the cheesy syrupy concoction. My suggestion...IGNORE!

Eight Structured Settlement Consultants Explain It "Like Its 1999"

2009-07-17T18:05:53-04:00

On May 11, 1999 Hartford Life Insurance Company produced a series of useful brochures designed to help appointed structured settlement brokers compare structured settlmeent annuities to various alternatives such as Treasury Securities, Bank Trusts, CDs,, Variable Annuities and the like.

On July 17, 2009 at least eight structured settlement consultant firms are still using the Hartford Life pieces, sometimes with attribution and other times without attribution. One firm has made some modification, but the majority explain it exactly as if it was May 11, 1999.

In each of the 8 company's published comparisons with CDs, the 8 firms consistently mistate the limits of FDIC coverage as $100,000 when it is, in fact, 250,000 as we sit here today.

In each of the 8 company's published comparison's to "Treasury Securities" they flub by stating that Treasury Securities do not keep up with inflation. "TIPS" are "treasury securities"

" On May 1996, the Treasury announced its intention to offer a new type of investment date book entry security with a nominal interest rate linked to the inflation rate on prices or wages...INFLATION PROTECTION securities" Treasury Direct website news archive September 25, 1996.

Moreoever , the flubbers are consistent in being incomplete on the tax consequences of treasuries. As IRC 130(d) clearly states obligatons of the United States government are a permissble "qualified funding asset". Once again let us underscore that TIPS were available well before the date that the Hartford marketing piece (that many of these folks bastardized) existed.

In the same comparison, 7 out of 8 companies failed to recognize the secondary market for structured settlements at the same time as discussing the secondary market of treasury securities. As all of these firms should know structured settlement payment rights can be factored subject to the conditons in IRC 5891 and applicable state law. Kudos to Huver & Associates for getting this part right.

So I ask you why the 8 firms which are run by intelligent respected business people, including some of the industry's biggest producers, lawyers, former NSSTA Presidents, a text book author would still have this posted up on their websites to be used in the solicitation of insurance? What gives?

Are we talking careless?
Are we talking "slap happy"? Do they just slap something up on their website without completely reading it, or reading it once and never reading it again to check relevancy?
Or do they simply not give a crap about promoting financial illiteracy?

Surely there is nothing to be gained by having inaccurate or false information in a comparison on one's website.

Press Bashes Social Security, Just Like AIG, Over $700,000 AZ Conference

2009-07-16T14:00:22-04:00

Emmy award winning reporter Josh Bernstein has picked up where Bill Hemmer left off, sensationalist bashing what the media has perceived as excesses in the use of taxpayer dollars. In lieu of AIG's "hot stone massages", this inane sensationalism includes a video captured by a "secret camera" of a mid-program "get up and stretch" that features zaftig SSA employees dancing, ironically, to The Trammps "Disco Inferno" whose lyrics include the phrase "burn baby burn". These sensationalist bashes have led to death threats against our civil servants. I hope Mr. Bernstein and ABC15 of Phoenix are proud of themselves.

While I too am concerned that Social Security trustees said in May the program will start paying out more in benefits than it collects in taxes in 2016, and the program's trust fund will be depleted by 2037, perhaps we could do with a little less "shoot first and ask questions later" by the press before a disgruntled someone, incited by Bernstein and ABC, puts a bullet in a civil servant's back.

One gets the feeling from reading these exposes that certain press "watch dogs" feel that the best way for companies and organizations to motivate people is to put them into an austere dungeon with picture less walls and expect them to pay attention? Or perhaps this is what they had in mind...

The Official SSA Statement

"This was a training conference. The location was selected through the government's competitive bidding process. The facility that was selected was the lowest bidder, and we paid well-below the prescribed government rate".
-Leslie Walker, Regional Communications Director, Social Security Administration

I understand from the material presented by ABC15 that the negotiated hotel rate was less than $100 per night. Try getting that in the Washington DC area!

According to ABC15, a spokesperson from the SSA's regional office said the conference was essential, that teleconferencing was not an option, and that all 675 managers needed to meet in person.

Read the full ABC/Josh Bernstein Bash of the Social Security Administration

AIG St. Regis Event Was Not Executive Retreat Portayed in Media October 8, 2008

Notre Dame Responds to CSSC Promotion Concerns

2009-07-15T10:56:13-04:00

This author received the following response to his letter to University of Notre Dame concerning the manner in which NSSTA members who are CSSC designees are promoting their association with the school. In his response, Paul Slaggert, Director of Non-Degree Programs stated that he would begin discussions with Joe Ricci (Executive Director) at NSSTA so that the proper use of the CSSC designation can be clarified.

Download Notre Dame response to promotion of CSSC 7-15-2009

NSSTA members who hold the CSSC designation and the general agencies with whom they are affiliated need to be mindful of how they are currently promoting themselves and make whatever changes are necessary so as not to mischaracterize or misrepresent the credential.

Notre Dame Asked For Position on CSSC Representations About Association With School-2

2009-07-14T23:17:54-04:00

For the benefit of the NSSTA Board of Directors and membership as well as the Administration of the University of Notre Dame and those who have actually earned diplomas there, we are pleased to post comments from NSSTA members and others in relation to this author's exposure of mischaracterization of the Certified Structured Settlement designation by other NSSTA members.

"John—Just a quick note to say your blog posts on credential puffing by our structured settlement brethren is right on the mark. These really are not small or innocent mistakes. These are outright deceptions. Since NSSTA has been tacit on the matter, I believe going to directly to Notre Dame and giving them an opportunity to protect their brand is a great idea.
"Nice. That has always annoyed me".

It is worthwhile to point out that each of the commenters as well as this author has earned multiple professional designations

Notre Dame Asked For Position on CSSC Representations About Association With The School

2009-07-14T17:23:34-04:00

This author has written the following letter to the University of Notre Dame Download Letter to University of Notre Dame concerning CSSC.

The letter is necessitated by the mischaracterization by many CSSC designees as set forth in yesterday's blog post and 3 other blog posts since October 2007. In addition to writing to Chris Cushman the Program Director of the Execitive Education division that hosts the CSSC program, this author has written to the Director of Degree Programs at the Executive MBA for the school's position on non graduates and non enrollees using the name of the school to imply something that is not.

If you are using the University of Notre Dame in advertising your credentials in a way that omits "in conjunction with the NSSTA" and suggests that you did more than attend a 4 day non degree course then you might wish to sit up and take this more seriously than you previously have. The chains are moving.

7 MONTHS=CASH NOW? Another Story About Bentzen Funding and ANOTHER 7 MONTHS of Delays

2009-07-14T11:45:17-04:00

In a developing story (the details of which we hope to bring you shortly) apparently another structured settlement annuitant who chose to do business with Bentzen Funding Solutions and was met with delays in funding of nearly 7 months, and STILL HAS NOT BEEN PAID. Furthermore, in eerie similarity to the Connecticut woman story, what started in November 2008 with Bentzen Funding Solutions has ended up with "cash now pusher" Structured Asset Funding a/k/a 123 Lump Sum. According to the lengthy recorded message on my voice mail Rhonda Bentzen IS NOT returning phone calls.

This is where the rubber is going to meet the road my industry brethren. I will soon learn whether this unfortunate annuitant was referred to Rhonda Bentzen via a member of the structured settlement industry, as was the case with Connecticut woman story. If it is, it will be exposed here.

Bentzen made a statement in writing on her blog on December 12, 2007 (that she has since removed the "incriminating evidence"-but we have a copy! Download Bentzen Funding Solutions 90 pct blog post 12-12-2007) that 90% of the those in the structured settlement industry that she does business with take fees (kick backs) from her. There is plenty of independent support to show that these kickbacks ultimately screw the structured settlement annuitant by reducing the already deeply discounted amount they get in the dire financial circumstances that they face that forms the impetus to sell.

The disturbing thing is that these are the ones we know about. How about the ones that we don't know about?

After bragging to everyone that it was business as usual in September 2008 (another retracted post) Rhonda Bentzen has been noticeably silent. She has not posted since January 2009 when she tried to squelch an initiative for increased transparency. One would think that proper disclosure to the structured settlement industry of Bentzen's relationship to Structured Asset Funding a/k/a 123 Lump Sum would be a start. Getting these annuitants the money promised without undue delay would be another.

Stay tuned!

How Easy It Is To Kill Spam Comments on Your Blog

2009-07-14T09:37:20-04:00

Those who make spam comments are generally looking for cheap advertising. Spam comments typically take the form of flattering fake compliments and then include a link to the commenter's website. That link MAY count as a valid back link that helps the spam commenter's position on search engines. For the host it means that his/hers/its product, business or industry is associated with the unrelated product. In some cases this can lead to a proliferation of spam.

Noted author Patrick Johann Hindert's blog Beyond Structured Settlements continues to be the epicenter of the structured settlement industry's comment spam. Among other things that we've already covered in this blog, Beyond Structured Settlements is the reason that Indian Viagra has been associated with structured settlements and why some obscure tailor in Toronto is today associated with structured settlements. Some may feel the structured settlement industry needs a "lift" or a "nip and tuck", but not in that fashion.

I don't know why S2KM's Patrick Johann Hindert will not tend to spam comments. I have made several attempts in this forum to teach him what to do. The kingdom already knows that the Emperor has no clothes. Does "Hedwig" need fake compliments that badly?

This morning I received the following compliment from someone concerning yesterday's post Was NSSTA Asleep At The Switch on "CSSC" mark?

It said "I am glad to talk with you and you give me great help! Thanks for that, I am wondering if I can contact you via email when I meet problems".

To begin with I have never spoken with the commenter.

Clicking on the link to the senders website clearly shows this is comment spam. The commenter wants to hock Lord of The Ring gold to the unwary. Because this blog filters comments, the blogging software platform shoots an email to me which requires that first I read the comment and THEN decide on its disposition. In this case, after I determined that it was a spam comment, I hit "report spam". I could also hit "delete". In any case in order to publish it I must take the affirmative step to hit publish.

The same commenter's spam comment is posted on Beyond Structured Settlements

"For this matter, once I discussed with one of my friends, not only about the content you talked about, but also to how to improve and develop, but no results. So I am deeply moved by what you said today.

Posted by: lotro gold | July 13, 2009 at 11:37 PM"

From all indication Beyond Structured Settlements does not monitor comment spam and the comments are simply posted as written. It is very easy to delete the comments if they are posted, even without the filter. Following is a link that shows how easy it is to kill spam comments.

Download How Easy It Is To Kill Spam Comments

Was NSSTA Asleep at Switch on "CSSC" mark?

2009-07-13T11:59:04-04:00

The National Structured Settlement Trade Association (NSSTA) has been offering the designation of Certified Structured Settlement Consultant for almost 15 years in conjunction with the University of Notre Dame.

The NSSTA and the 550 or so members and designation holders use and have used the acronym "CSSC" to go along with such professional designation in conjunction with essentially "financial and insurance consulting".

According to Whois records, the URL cssc.com is registered to Consulting Services Support Corporation of Troy, Michigan and has been since March 1999. Download CoolWhois.com - WHOIS searc.. CSSC

According to United States Patent and Trademark Organization (USPTO) records Consulting Services Support Corporation of Troy, Michigan declared its first use of "CSSC" mark on June 1, 2004, in connection with, among other things " financial and insurance consulting". Download Trademark Electronic Search.. CSSC

On June 2, 2004 Consulting Services Support Corporation filed an application with the USPTO to register the trademark "CSSC" both domestically and internationally in IC036. US 100 US 101 and 102 which includes " financial and insurance consulting" along with a $335 fee. The basis if the application was "intent to use" Download CSSC App to USPTO 6-2-2004.

On October 25, 2005 the "CSSC" trademark application was published for opposition so that anyone, including the National Structured Settlement Trade Association (NSSTA) could object. Download 76595107 Published for Opposition

On October 10, 2006 the USPTO issued the domestic registration 3154546 to Consulting Services Support Corporation of Troy, Michigan. In addition the company claims International Registration 0851910

As a member of the NSSTA shouldn't you be asking the question on whose watch this happened? What now?

Structured Settlement Brokers Who's Your "Puff Daddy"?

2009-07-13T09:10:25-04:00

"Obviously, the structured settlement broker with access to the most life companies will be in a position to offer a very competitive annuity price". Ringler Associates website July 13, 2009

The implication is that the company has access to the most annuity markets and therefore the most competitive price. But It's as much advertising fluff as the ubiquitous law firm advertisement that promises that you "will pay no fee up front" (i.e. it would be atypical for a personal injury firm to charge a fee up front).

Back in "the day" there might have been a very brief period of time when a new market was introduced, before the product was rolled out to the industry, that Ringler and one or two others had a slight edge, but not now.
Furthermore, the number of structured annuity issuer companies that offer A+ of better AM Best ratings is 7. Those with A++ ratings- 2. It's safe to say that most players have access to all markets.
Furthermore, if Ringler (or any other broker making this puffed up claim) appears on the defense side of a case and the insurance carrier has a restrictive choice of life insurance markets you may get a very competitive price but perhaps not the most competitive.
Furthermore, the best price is only one component of the structured settlement decision making process. As recipients and policyholders of Executive Life of California discovered, price is not everything.
In today's environment, where plaintiffs and their law firms (1) typically have representation; (2) are more educated, access to the most markets would actually enhance diversification opportunities. But again Ringler's stable of markets is no different than most of the players in the structured settlement industry. Diversification opportunities however, don't always result in "the best price" as multiple issuers tend to average up the cost.

IF YOU'VE GOT ENOUGH YOU DON'T HAVE TO PUFF