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FAQ for Claim Professionals
  1. Introduction
  2. What is a Structured Settlement?
  3. Why would a claimant want one?
  4. Why wouldn't they want one?
  5. How can the claimant manage the disadvantages?
  6. Why does my company want me to use them?
  7. Which kinds of cases are good candidates for structures?
  8. Which cases are not?
  9. What about case size?
  10. How do I get started?
  11. What's a typical negotiating scenario?
  12. What if the Claimant says no?
  13. Approved annuity issuers
  14. Why annuities?
  15. Annuity Pricing
  16. Reduced life expectancy discounts
  17. What is an "assignment"?
  18. Structure of the deal
  19. Insurance company ratings
  20. The closing process
  21. What do settlement brokers do?
  22. How are brokers paid?
  23. What if the claimant has their own broker?
Home Page > "How to" For Claims Professionals>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 negotiated settlement and want full assurance that the all parties have approved it as submitted, you may request that a guardian ad litem be appointed. This professional may require expert evaluation and support, which is available to them but on a fee-for-service basis.

Expert Witness Services Retained by defendants to present "present value" testimony, brokers must sometimes be retained independently (not as the purchasing broker). Expect to pay hourly fees plus out-of-pocket expenses.



*The standard commission runs in the range of 3-4%