Structured Settlement FAQ

Why were structured settlements created?

Prior to 1982, damages awarded from a lawsuit were paid in the form of a single lump sum payment. Congress determined that this payment format often left certain victims in a peculiar financial bind because their situations sometimes did not allow them to properly manage large sums of money. As such, the Periodic Payment Settlement Act of 1982 formally encouraged the use of structured settlements in certain cases.

Who is involved in the negotiation of a structured settlement?

A defendant’s attorney, plaintiff’s attorney and a structured settlement consultant come together to negotiate and decide upon a structure settlement that is best for all parties. One of our representatives will attend the settlement conference to aid in finding a settlement that suits all parties involved.

If you would like more information about structured settlements, contact Keith Kleinick, a licensed structured settlement broker in New York, today!

What are the components of a typical structured settlement?

Typical structured settlements include a variety of beneficial options including payments which increase over time, payments which increase in level increments, payments which are fixed for a period of years, and level payments which include supplementary lump sum payments.

What is a CORA certificate?

CORA stands for Certificate of Reliability and Assurances. It certifies that all parties involved in the settlement were treated fairly and that no party was taken advantage of over the course of the lawsuit and in the settlement.

What is a Non-Qualified Assignment?

A non-qualified assignment is a tax-deferred structured settlement wherein a defendant will transfer future obligations of periodic payment over to a third party assignee. The defendant is thereupon released from the obligation and assignee becomes responsible for making period payments.  A non-qualified assignment structure is not used in cases involving physical injury or death..

If you would like more information about structured settlements, contact Keith Kleinick, a licensed structured settlement broker in New York, today!