When it comes to settlement design and choosing a structured settlement option, there are many aspects to consider, which require thoughtful planning and preparation. By the time you are submitting the final documents package to the life company with the request to issue the annuity contract, receiving the contract is usually the end of a very long road for the plaintiff and your attorney client. Accurate, complete and well-organized documents are essential to secure timely contract issuance, allowing the plaintiff to move forward and begin to feel whole again.
As a Structured Settlement Specialist, “best practices” begin with thorough information gathering right from the start with these key questions:
- Where are the settlement funds currently held?
- What is the nature of personal physical injury?
- Has a release already been signed?
- Do you have a copy of the Complaint?
- If it involves court approval is required, who will be signing on behalf of the minor/incompetent person?
Requesting proof of age early helps ensure the client’s legal name, date of birth, and gender are correct at the time of quoting. This level of detail prevents downstream issues like constructive receipt and keeps the entire process running smoothly. The more complete information provided at intake, the better the life company can support your specific needs.
Life companies are valuable allies in the settlement process, so don’t hesitate to involve them early. Reach out with questions and supporting documentation, such as:
- Is this case considered qualified or non-qualified?
- Can you review these QSF documents for acceptance?
- Please review this Release and Addendum draft and approve the requested changes?
- Can we set up a Zoom call to review quoting software and draft documents?
- May I please have a copy of your latest Broker Manual?
Consulting the Broker Manual often resolves many common questions and pain points. Never promise your client that a particular structure or provision can be implemented without consulting your life company first.
Keep every settlement document (even various drafts) in a single, well-organized file. Store related correspondence together in the same locations. This simple habit significantly reduces errors and saves time when finalizing submissions.
Before any documents are signed or submitted for court approval, all parties should carefully verify critical details, including:
- Names, dates of birth, gender
- Payment dates
- Premium amount
- Addresses
- The annuity issuer, assignee, and assignor
- Any product specific requirements
A single minor error can cause significant delays once documents are executed or court approved.
Consistency is critical. The payment schedule must match your locked-in quote and appear identically in the Assignment Agreement, Settlement Agreement and Release/Addendum, and the Application.
When court approval is involved, consider using flexible “slide language” in case the quote needs adjusting. Match terminology precisely, if your release is called “Settlement and Release Agreement” then your Addendum should be titled “Addendum to Settlement and Release Agreement.” If in the release they use “releasee” and “releasor” then your addendum should also use those identifiers. Review every detail with a fine-tooth comb and have a second set of eyes also review prior to submission.
Once your documents are in good order and ready to send to the life company, avoid sending them piecemeal. We advise:
- When you know premium is en-route, submit your application (and proof of birth if required).
- When the other documents are ready, then send those over.
This method is easier on you instead of trying to remember what has been sent and when it was sent.
Structured settlement documents are nuanced and highly detailed, and no two cases are exactly alike. It is imperative that each document is carefully managed and thoroughly reviewed for accuracy, that all records are complete, and that proper execution is ensured to facilitate a smooth process and minimize delays. Your documents team and life company partners are here to support you every step of the way.
