How Structured Settlement Companies Work

While the article “Paralegal Indicted for Forging Signatures of 76 Judges” (Sept. 17) makes a key point about the importance of a regulated process to protect the best interests of injured people, we would like to clarify the role of structured settlement companies.

The article states, “Paris & Chaikin, a personal injury firm, also represents structured settlement companies in the acquisition of structured settlement rights.” Let’s be clear, a structured settlement company works with plaintiff and defense attorneys to protect injured parties during the initial settlement process by designing a tailored stream of periodic payments paid to an injured party by the defendant.

The periodic payments are primarily funded through the purchase of a fixed and determinable annuity issued directly by highly rated life insurance companies. Structured settlement companies do not purchase the settlement rights to funds a person is owed from an insurance claim settlement.