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%