Undisclosed Affinity Arrangements
by Rick Bishop
Principal, Settlement Planners
Is your choice of settlement broker being directed by an insurance company list of “approved” brokers? Is it possible that your client’s settlement is being influenced by an affinity arrangement with a Trial Lawyer association?
In structured settlements, a common practice by liability carriers is to limit the consumer’s choice of annuity markets through “approved market” lists — which effectively restrict the presentation of competitive annuity quotes. This denies the consumer the benefit of free market competition.
The NAIC Task Force on Broker Activities defined “Inappropriate Solicitation Activities” as practices whereby an insurance producer produces a specific volume of annuity premium annually to ensure future referrals.
This practice can be tied to an affinity relationship that promises future referrals to the broker donating money to the Trial Lawyers Association. If the broker is participating in a “pay to play” arrangement to secure your business, a conflict may be created.
At Settlement Planners, Inc., our “plaintiff loyal” approach limits attorney liability while serving the client’s interest exclusively. Find out how we help can you manage risk while protecting your client.
Call today. 800-727-3885.
The Settlement Checklist Series:
ITEM #1: THE LETTER OF ACKNOWLEDGEMENT
ITEM #2 THE FULL MARKET SURVEY
ITEM #4: UNDISCLOSED AFFINITY ARRANGEMENTS
ITEM #5: GET THE FACTS ON MEDICARE SET ASIDES
ITEM #6: THE ADVANTAGES OF STRUCTURED ATTORNEY FEES
ITEM #7: BUSINESS AS USUAL… IS NO LONGER BUSINESS AS USUAL
ITEM #8: SOLVING THE SETTLEMENT MAZE
ITEM #9: Five Questions You Should Ask Before Consulting a Settlement Planner