April 8, 2013 – Things were so different in 1983 when I began my claims career than they are today.

Notices of loss were still being taken by hand.

Pretty much every claims manager had his own secretary.  (And I used “his” intentionally since nearly every claims manager was male)

Among the tools in common usage today which had yet to be invented:  The Internet, personal computers, cell phones, GPS and filmless cameras.

That same year,  H. R. 5470, The Periodic Payment Settlement Act of 1982, as passed by the United States Congress’ Joint Committee on Taxation, went into effect ushering in an era of widespread use of a concept that had been brewing in the claims world for a number of years:

Structured settlements

Back then, management span of control was narrower, claims training more prevalent and it was unheard of for someone to work from home.  Even field adjusters reported to an office to receive their assignments (by hand) from their supervisor.

During these and the years that followed, as this new “structured settlement” concept grew, claims departments began embracing their usage as a creative solution to resolving injury disputes.  Carriers developed their own structured settlement programs and in those high interest, high inflation years, structured settlements helped many an unsettleable claim, settle.

Fast forward to 2013.

Claims training is less prominent than it used to be.

Seemingly every day, greater demands are placed on claims professionals.

And fewer claims people understand the nuances of structured settlements.

Which made reading this month’s Claims magazine article, “The Perks of Structured Settlements: Faster Claims Closure At The Right Price” so compelling.

Bylined by respected veteran claims executive Brian N. Farrell, the article does a great job going “back to the basics” highlighting some of the overlooked reasons why claims departments should continue to embrace the use of structured settlements as a claims resolution tool in today’s economy.

In addition to the obvious benefits to the injured parties which are well documented, the author emphasizes the benefits of using structured settlements to establish proper reserves, control litigation costs and ensure good faith bargaining among other ancillary reasons.

It’s a good read and a timely reminder that structured settlements remain one of the best kept secrets in the insurance world.

Unlike other claims tools which have been replaced by bigger, better and faster alternatives, structured settlements have yet to be improved upon and more carriers would be well served by rededicating themselves to expanding their use.

Dan Finn joins CCFOC Board of Directors

March 29, 2013 – The Collaborative Courts Foundation of Orange County (CCFOC) recently invited me to join its distinguished Board of Directors.

I was only too honored to enthusiastically accept the opportunity to become part of an organization that positively impacts the lives of so many people while playing such a vital role in Orange County’s civil justice system.

Last week, at its monthly meeting, the CCFOC Board made it official by voting me in as its newest member.

It’s a great honor to continue my commitment to community service in this capacity.

As if to prove that “when one (board) door closes, another opens,” this invitation comes just as my four year commitment as a board member of the National Structured Settlements Trade Association (NSSTA) draws to a close.

My term as NSSTA’s Immediate Past President officially ends April 19.

CCFOC exists to support the efforts of the Superior Court of California, County of Orange’s Collaborative Court initiative. As described on Orange County Superior Court’s website:

“Collaborative or “problem solving” Courts are specialized court tracks that address underlying issues that may be present in the lives of persons who come before the court on criminal, juvenile, or dependency matters. These life-changing programs involve active judicial monitoring and a team approach to decision making, and include the participation of a variety of different agencies, such as Probation and health treatment providers.”

Committed to fostering “therapeutic justice,” the foundation’s mission is to provide support & services to participants in the Orange County Collaborative Court programs, so they will overcome obstacles and become productive members of society.

Please visit CCFOC’s website for a description of the programs and services we provide.

If you, your companies or law firms are interested in helping to support our efforts, we welcome your assistance as a donor, sponsor or supporter. Since CCFOC is a 503(c)(3) nonprofit corporation, your contributions are tax deductible to the fullest extent of the law.

And if you live in Orange County, mark your calendars for Saturday, September 7 and plan to join us for our third annual fundraiser dinner being held at Seven Degrees in Laguna Beach.

Thank you to my fellow board members for your vote of confidence in me. I look forward to serving with you and want to again publicly profess how honored I am to be part of the Collaborative Courts Foundation of Orange County.

Let’s do some good!

March 25, 2013 – That’s the conclusion of the USA Today Editorial Board following its analysis of the recently concluded Los Angeles Kransky v DePuy trial in which a jury found the device manufacturer negligent to the tune of $8.3 million in compensatory damages awarded to a retired Montana prison guard who sued DePuy over complications arising from a failed metal-on-metal hip replacement.

The Kransky case, the first trial in the nation of approximately 10,000 lawsuits filed, is noteworthy for the higher than demanded compensatory value awarded and the finding that insufficient evidence existed to warrant punitive damages.

The latter may change in future cases if USA Today‘s analysis is any indication.

The widely circulated daily newspaper contrasts DePuy’s slow response in recalling the defective ASR hip device from market once problems became known to Johnson & Johnson’s prompt response to the Tylenol cyanide poisoning cases nearly three decades earlier.

Johnson & Johnson is the parent company of DePuy Orthopaedics who manufactured the recalled devices.

The nation’s second defective DePuy hip lawsuit began in the Circuit Court of Cook County, Illinois just two weeks ago.

As all these case move forward, our firm remains committed to assisting those who have been adversely impacted.  We have established a companion website, ASRHipSettlement,com, to help clients familiarize themselves with the benefits of resolving their disputes with DePuy by choosing a structured settlement.

We continue to monitor the DePuy litigation closely.

March 8, 2013 – Jury deliberations have ended in the trial of Kransky v DePuy, the first lawsuit to go to trial in the United States for defective design of the recalled ASR metal-on-metal artificial hip manufactured by DePuy Orthopaedics, a division of Johnson & Johnson.

The verdict?  Guilty of negligence.

The award:  Mixed.

While the jury awarded the plaintiff, Loren “Bill” Kransky, $8.3 million (57% higher than demanded in closing arguments) in compensatory damages, they failed to attribute any punitive damages to the verdict according to Bloomberg.

Plaintiff attorneys had sought up to $179 million in punitive damages.

It remains to be seen what impact this verdict will have on the remaining 10,000+ cases awaiting trial but we will continue to watch this litigation closely.

Johnson & Johnson lawyers plan to appeal the jury’s verdict.

March 7, 2013 – Shortly after posting an earlier blog on annuities today, I ran across an article I missed earlier in the week that reinforces the value of annuities in retirement planning.

Titled “Say Goodbye to the 4% Rule,” this Wall Street Journal column analyses a conventional retirement “draw down” strategy and comes to the conclusion that the rule is outdated.  Instead, the author offers three alternatives.

The first alternative was music to our ears:

“Use annuities instead of bonds“

If you don’t want to read the entire piece, here’s an excerpt showing how annuities can hold the key to unlocking your retirement anxiety:

Pairing the most plain-vanilla type of annuity—called a single-premium immediate annuity—with stocks, retirees can generate income more safely and reliably than if they use bonds for that piece of their portfolio, says Wade Pfau, a professor who researches retirement income at the American College of Financial Services in Bryn Mawr, Pa

Did you catch that “more safely and reliably” part?

Safety and reliability is what we’re all about.  So if you’re retired or soon to be retired and worried about securing your future, call us.

We can help.

We have access to a wide variety of the best single premium immediate annuities on the planet, along with other types to suit your risk tolerance, all certain to help you sleep better at night.

So call us.  Buy an annuity that suits your needs.  Then throw away the key!

March 7, 2013 – All it takes is 2:20 to learn what questions you should ask before purchasing an annuity.

And that even includes the three seconds it takes to click on the video we posted here for you, produced by the Insurance Information Institute:  “Buying an Annuity: 6 Questions to Ask”

While there, spend some time learning about the powerful benefits of annuities.

We talk a lot about annuities because we believe in them.

We believe in them because they offer certainty that is difficult to replicate elsewhere without incurring additional risk.

If you do your own Google research on annuities, you’re likely to find conflicting recommendations about their usefulness in an overall financial or retirement plan.

“Financial advisers not associated with insurance companies will generally argue for putting little in annuities: they feel they can get better returns through a diversified portfolio of securities.

That’s a harder sell, though, after two rounds of huge losses in the stock market in one decade.”

Paul Sullivan, New York Times “Wealth Matters” Columnist

Investment losses later in life are even harder to make up because of the shorter time horizon.

Annuities Work

When you spend your adult life helping people secure their futures with annuities as I have, without a single complaint, you can’t possibly deny their value in one’s overall retirement strategy.

And when you add the tax benefits they afford, particularly on structured settlement annuities, you’d be hard pressed to find anything comparable.

We don’t say and will never say that annuities (at least the ones we offer) are the be-all and end-all of retirement choices.  We believe in financial planners and managed funds and investment portfolios.  Always have.  Always will.

But as part of one’s overall retirement strategy, we can’t deny the value of adding a sure thing – annuities – to one’s future security.

Pensions, which have gone the way of the 8-track tape player, were good enough for previous generations.

Pension substitutes (aka annuities) are sensible replacements for this one.

With great pride we announce today our firm’s inclusion in Best’s Directory of Recommended Expert Service Providers in its Structured Settlement listing.

America’s premier independent insurance rating organization, A.M. Best Company, Inc. is  designated as a Nationally Recognized Statistical Rating Organization (NRSRO) by the National Association of Insurance Commissioners (NAIC).

Directory listing eligibility is based upon an applicant’s “reputation, character and industry experience” and requires endorsements from past clients and peers familiar with the candidate’s credentials.

We are honored to be acknowledged as one of the nation’s only Structured Settlement Experts recognized by A.M. Best and are humbled by the outpouring of support received from the many attorneys, claims professionals and insurance industry veterans who gave so willingly of their time to validate our candidacy when contacted by this respected organization.

We share this distinction with all of you who make our success possible by trusting us with all your structured settlement and specialty annuity planning needs.

Thank you to everyone who participated in the vetting process and thank you all for continuing to believe in us.  We appreciate the opportunity to be of service to YOU.

Best wishes for continued Struccess!

 “We like annuities!”

March 3, 2013 – And by “we,” we mean YOU!

This according to a recent study conducted by Life Insurance and Market Research Association (LIMRA).

Reinforcing a theme we’re quite familiar with at our firm, the study overwhelmingly concludes:

People who choose annuities are glad they did.

Among the LIMRA study findings, published about seven months ago:

• 86% of fixed annuity buyers were satisfied with their purchases
• 83% of indexed annuity buyers were satisfied with theirs
• More than half of all respondents owned two or more annuities
• 80% of those surveyed would recommend annuities to friends and family
• Financial strength of annuity issuer was an important consideration

Money for Life

Perhaps not surprisingly, supplementing Social Security or a pension was given as the most popular reason for purchasing annuities.

And in what might have been a page taken from our own play book:

“Annuity buyers’ single most important financial objective is to have enough money to last their and/or their spouse’s lifetime.”

The results of this LIMRA study contrast somewhat sharply with another recent survey – this one conducted by Spectrem Group – which found declining levels of satisfaction by wealthy investors with their own financial advisor.

In that survey, no category of investor was more than 73% satisfied with their financial advisor.

73% chance of satisfaction or 86% chance of same?  (Hmmmmm . . . )

Annuities have played vital roles in shaping the lives of the countless people we’ve had the privilege of helping for more than two decades.

We don’t specialize in everything.

We are not financial advisors.

But we are experts in the niche specialty annuity business helping people when they need trusted, professional advice with their:

Structured Settlements

Taxable Structured Settlements

Structured Attorney Fees

401(k) and SEP Conversions

And since some 80%+ of the annuity buying public is happy when they choose annuities, that pretty much makes us happiness experts too.

We’re here for YOU and always happy to help.  Call today!

February 28, 2013 – Professional sports and big money go hand in hand.  One is not possible without the other.

Contracts are signed, big money changes hands and athletes and team owners smile for the cameras.

For the lucky ones, this cycle repeats itself a few times as the prospects of ongoing riches loom ever larger.

But sooner or later, things change.

The athlete’s shelf life expires and there are no more contracts forthcoming.

The owners and the public find a new flavor-of-the-week star to admire and shower with affection.

And money.

The Mighty Casey strikes out.

Now what?

This week’s Business Insider features a revealing article about the inverse relationship between professional athletes and post-career financial prosperity.

“This Is Why So Many Professional Athletes Are Going Broke” offers some unhappy statistics about this segment of the population.

In addition to a very short average career life, among the reasons offered for so many professional athletes going “from stoked to broke” are:

• Overspending
• Poor investment choices
• Entrusting their money to the wrong people

Too bad more of them don’t come to us.

We’d talk to them about the value of using some of their money to purchase a lifetime annuity.

True, lifetime annuities don’t turn heads quite the same way Lamborghinis do.  But for safety, security and long-term happiness, they really can’t be beat.

“As one goes through life, it is extremely important to conserve funds, and one should never spend money on anything foolish, like pear nectar or a solid-gold hat.”

– From “On Frugality” by Woody Allen –

Don’t let the fact that you’re not a professional athlete stop you from making a smart move with your own financial future.

If you have any savings or 401(k) balances you no longer want to expose to market risk, let us show you how you can convert that lump sum into guaranteed cash flows you can never outlive.

We specialize in helping people find safe, secure, tax-advantaged solutions to their retirement challenges.

We’re not saying you’re destined for bankruptcy court.

But if you’re like most people, you can probably benefit from some guaranteed cash flows you can never outlive.

Call us to schedule your no obligation review today.

Annuities:  Best Choice for Security, Satisfaction and Serenity

February 26, 2013 – We have been advising clients for years about the benefits of lifetime annuities for retirement.

We’ve extolled their virtues and provided empirical evidence about the correlation between retirement and satisfaction in several previous newsletters and blogs about retirement annuities.

Here’s a sampling:

• A Happier Retirement
• The Secret to Living Well at 100
• A Paycheck for Life
• What’s Your Retirement Vulnerability?
• Annuities Are The New Black
• Live Longer . . . Buy Annuities
• Advisors say “Yea” to Annuities
• Retirement Goggles

Annuities Can’t Be Beat

In every one of these and others on our site, we provide links to studies, charts, graphs, quotes from respected professionals and a host of other support detail that helps convince us that annuitizing one’s nest egg is the absolute best path to retirement happiness.

As more and more baby boomers transition to “life after the salt mines,” we’re convinced that those who choose lifetime annuities will simplify their financial lives and sleep better at night.

BONUS:  Here’s a “Retirement checklist for Boomers” from InvestmentNews to help you see if you’re heading in the right retirement direction.

So if you’re tired of watching the stock market go up and down and want to put your mind to rest, call us when thinking about what to do with your next egg.

In addition to our thriving structured settlement practice, we are helping clients secure their retirement futures with lifetime annuities designed to meet their risk tolerance and income goals.

Let us help you.  Call us today for a no obligation consultation.