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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

What Is A Typical Negotiating Scenario?

  1. Claimsperson identifies appropriate case and calls settlement broker.

  2. Broker asks claimsperson for certain claimant and case data, (name, gender, date of birth, state of residence, claim number, etc.) and they discuss the claimant's personal situation, identifying certain economic needs or desires the claimant has and what kind of structure design might best meet those needs.

  3. Claimsperson tells broker how many different designs to prepare and at what levels of cost.

  4. The broker delivers printed settlement proposal illustrations to the claims professional who then forwards one or more to the claimant (or plaintiffs' attorney) with a cover letter outlining the offer of settlement.

  5. The claimant responds by either accepting the offer, rejecting the offer, or having questions. Rejections are routine (just as they are with initial cash offers) and should not be viewed as setbacks. Instead, they should be viewed as opportunities to gain more specific information about the claimants' needs (that information is then used to craft a more desireable structure design).

  6. The parties go back and forth, adjusting the settlement amount and the terms of the structure until an acceptable package has been found.

  7. Agreement on the terms of settlement starts the closing process (see "Closing Process").