Security

Here’s why Structures were so resilient:

Here’s why: 

• Structured settlements are provided by the highest rated life insurance companies in the country. The structured settlement marketplace is represented by household names who have passed the tests given by ratings agencies and regulators to earn those high ratings. The industry remained incredibly resilient and strong during the two worst financial crises since the Great Depression.
• Structured settlements are a highly regulated and secure investment option and remained so even during the recent financial meltdowns. Stringent state law regulations demand that there is always enough money in reserves to pay annuitants.
• Most providers have billions of dollars in surplus. In addition to the minimum requirements, insurers typically maintain additional capital referred to as excess capital and surplus.
• State insurance laws require all insurers to establish “reserves” for every obligation they assume, and these laws have worked. “When it came to agencies’ assessments of insurer’s ability to pay policy holders, they did a pretty darn good job.” (Wall Street Journal, April 27th, 2009) Insurance company funds are protected by insurance regulation. For example, during the financial crisis of 2008, AIG’s parent company could not access the annuity division’s funds. In October 2008, the Insurance Superintendent of New York pointed-out that, “The AIG situation is a great example of state regulation at work. Their policy holders were never at risk.”
• Structures are invariably preferred by the Courts for cases that involve disabled adults or minors. Those who are most vulnerable are strongly encouraged by the Courts to utilize this option. This truly speaks to the safety of structures.