How to Assess Strength of the Structured Settlement Company
Under the model Uniform Payment of Judgments Act of 1990, to become a
qualified insurer, the structured settlement company or insurance company
must be an admitted insurer in the state and must request designation by
the insurance commissioner. The structured settlement company/insurer must
have a minimum of $100,000 in capital and surplus that is exclusive of any
mandatory security valuation reserve. Additionally, they must have at
least the minimum following ratings from two nationally recognized rating
organizations: Aa3; Standard & Poor's, A.M. Best, A+; Moody's, AA-; Fitch
(formerly Duff & Phelps), AA-.
All structured settlement companies proposed - either by the annuity or
issuer, or the guarantor must meet stringent criteria. Some assignment
structured settlement companies or guarantors are not life insurance
companies and thus, do not have the ratings normally assigned by the
independent analysts to life insurance companies. In such case, ratings by
independent analysts and financial information about the non-insurance
company guarantor can be obtained. |
