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FAQ for Trial Attorneys
  1. Introduction
  2. What is a Structured Settlement?
  3. Advantages to the Plaintiff
  4. Disadvantages to the Plaintiff
  5. Managing the Disadvantages
  6. Appropriate Cases
  7. Inappropriate Cases
  8. Case Size
  9. Why Annuities?
  10. Annuity Pricing
  11. Reduced Life Expect. Discounts
  12. What is an "Assignment"?
  13. Structure of the Deal
  14. Insurance Company Ratings
  15. The Closing Process
  16. What Settlement Brokers Do
  17. How Are SS Brokers Paid?
  18. If the Defense Has Their Own Broker, How will My Broker Be Paid?
Home Page > "How to" For Plaintiff Attorneys >ABC's

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%