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Retaining Your Own Planner
Defense tricks can be avoided by making certain that the settlement agreement reserves your right to structure with your broker with the annuity issuers chosen by your client with terms to be supplied to them within a reasonable period of time. You should expect your broker to be plaintiff-loyal with no special arrangements with any casualty or life companies. You should expect your broker to deliver the following services on every case, regardless of size:

1. Full market surveys. Your clients have a right to know exactly what every company in the structured settlement annuity marketplace is willing to pay for their desired stream of future payments. The financial ratings of each annuity company and all fees and commissions should be disclosed.

2. Mediation Preparation. Prior to mediation, your broker should provide you with a mediation packet. This packet should contain an "annuity cost per $1,000 of monthly benefit" survey. This will enable you to quickly estimate the cost to provide your client with a certain monthly benefit for life, and which annuity companies are most competitive. If a life care plan has been prepared, your broker should "annuitize" it to give you a better idea of what it would cost to fund your client's future care costs. The mediation packet should also contain information about the taxability of the recovery, coordination with government entitlements, liquidity analysis, and perhaps some information about the defense insurer's negotiation tactics with regard to structured settlements. Ideally your broker will have already met with your clients prior to mediation to educate them on the pros and cons of their settlement options - annuities, trusts, managed accounts, and cash.

3. Document preparation or review. Your settlement planner should review the settlement documents to ensure they contain the proper language to avoid constructive receipt or other harmful provisions that could cause adverse tax consequences (confidentiality clauses, apportionment to exemplary damages, language putting the underlying injury in doubt, etc).

4. Comprehensive settlement planning. Structured settlement annuities are not right for every case and your broker should not try to promote a structured settlement when it is inappropriate.

5. Fighting to maximize your client's wellbeing. Your broker should be willing to fight to place the annuity with the best company, with the best ratings, and at the best rate. Your broker should go the extra mile to secure the price-breaks and discounts available in most annuity transactions.

6. Your broker should shield you from liability. Make sure that your broker carries adequate E & O coverage and is able to become your liability firewall from future claims regarding the financial aspects of a settlement. Your broker should be willing to step up and give advice and actively help you protect your file from future claims.