7.     WHO “GUARANTEES” THE STRUCTURED SETTLEMENT?

• To assure that an award to the plaintiff/claimant is given the strongest possible guarantee, regardless of the defendant’s financial condition, an annuity is usually purchased by the defendant and/or defendant’s insurer through a life insurance company.

• In certain situations, the obligation to make payment may be transferred from the defendant/insurer to a third-party insurance company, further protecting the annuitant’s interest. This type of arrangement is called a “qualified assignment.”

• The use of qualified assignments in the structured settlement process was authorized by the Periodic Payment Settlement Act of 1983 and codified into law by Section 130 of the Internal Revenue Code. Section 130 extends the tax-free benefit of structured settlements provided for under Internal Revenue Code Section 104(a)(2), to qualified assignments.

8.      WHAT IS CONSTRUCTIVE RECEIPT?

• The term “Constructive Receipt” refers to a doctrine underlying the tax laws which may render the benefits taxable if violated.

• The doctrine of constructive receipt provides that if the taxpayer has control over the investment of the funds under a structured settlement such that it is the equivalent of receiving the present value and investing it himself, the future benefits will be taxable.

9.     WHEN TO CONSIDER A STRUCTURED SETTLEMENT:

• Where the claimant has sustained a severe injury with serious medical impairment, such as quadriplegia, paraplegia, or brain damage resulting in a shortened life expectancy;

• The claimant requires long-term income and medical assistance as a result of permanent injury or reduced earning power;

• Loss of limb(s) which limits the ability for meaningful employment;

• Any case involving a minor;

• Any case when the claimant lacks the expertise necessary to manage a lump sum award;

• Wrongful death cases, structures can provide replacement income, education funds for survivors;

• Any case involving large settlement authority, age is not a determining factor as benefits can be provided for children, grandchildren or retirement security; and

• Advantages to the plaintiff:

• Tax-free guaranteed income;

• Peace of mind & security;

• Competitive returns;

• Long-term receipt of a much larger amount of money;

• Protection from “investment advisors”, brokers, family and friends who would target the plaintiff’s lump sum award.

10.     ADDITIONAL FACTORS:

• If the plaintiff outlives the parents or guardians and might be victimized by others;

• If the main concern is proper financial maintenance for the plaintiff during his/her lifetime;

• If the plaintiff is in a high tax bracket and/or there is no need for an immediate large lump sum payment;

• If older plaintiffs would like to leave future dollars for their children or grandchildren; or

• If the plaintiff has a past history of living beyond his or her means.

        We will only use those companies which are rated A+ (Superior), the highest rating given by A.M. Best, an independent firm which does financial and statistical analysis of insurance companies. Only 16% of the life insurance companies for which ratings are determined are classified as A+. This rating is based on the relative strength of the company against industry average, taking into account the soundness of the company’s underwriting, management skill, level of reserves, availability of resources to meet unexpected events and the company’s investments.

        In addition, the insurance industry as a whole is extensively regulated by the insurance departments of the various states and by the National Association of Insurance Commissioners (NAIC.)

        Quite simply, a structured settlement “structures” or plans the payment of a casualty settlement over a number of years to address the immediate and long-term needs of the plaintiff. Incurred and on-going medical bills, lost wages, continuing expenses and planned future expenses (children’s college education, etc.) can be addressed through the use of annuities and other financial vehicles customized to the individual’s needs.

        Our reputation has been built on over 22 years of service, stability and innovation. Dakota Structured Settlements, Inc. stands firmly committed to providing its clients with a wide variety of first-rate insurance products and financial services. And we’re proud of where our commitment to excellence has taken us.

        In seeking the right company to provide a structured settlement annuity, all parties involved must be concerned with the company’s background, its reputation and, ultimately, its ability to meet the terms of the structured settlement by making payments, sometimes far into the future. Consider, after all, there’s nothing better than the best.

        Dakota Structured Settlements, Inc. provides financial service to more than 802 claimants today. No matter what the need, Dakota Structured Settlements, Inc. has the products and expertise to find a solution quickly and economically.

        The claimant’s age and life expectancy only affect the cost if the settlement contains life contingent payments. The shorter the life expectancy, the lower the cost. Life expectancy is based on age and sex and often is reduced by serious injury or illness.

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