How Are Settlement Brokers Paid?

They earn a commission on the sale of the funding instruments used to fund the structured settlement*. This commission is built into the price of the annuity such that no fee is paid outright by either party. If the case fails to settle or settles without a structure, no fee is charged.

This income covers the lion's share of their work, but there are instances where fees may be charged instead:

Due Diligence Services To the extent you have already negotiated the settlement yourself but wish to have the terms evaluated by an expert prior to final sign-off, OR you serve in a fiduciary capacity (guardian, conservator, guardian ad litem, etc.) and require expert evaluation and support, such services are available but on a fee-for-service basis.

Expert Witness Services More often retained by defendants to present "present value" testimony, brokers may also be also retained by plaintiffs' attorneys for research and rebuttal. Expect to pay hourly rate plus out-of-pocket expenses.

*The standard commission is 4%