The framers of the initial laws had the foresight to understand and balance the needs of the consumer as well as the judicial, financial and insurance communities – and the result is a win for all.
BRYN MAWR, Pa. (PRWEB) June 30, 2008
"There was a concerted effort among several constituencies to advocate for the development of the 'Model Act,' which is now the basis for laws in 46 states," said Michael Goodman, CEO of J.G. Wentworth. "A decade later, it's clear that this legislation – passed universally with the support of the structured settlement industry – has been a real success for the consumer. The development of this legislation represents one of the rare occasions when the interests of the judiciary, state regulators, business and consumers lined up nearly perfectly."
Goodman added, "The framers of the initial laws had the foresight to understand and balance the needs of the consumer as well as the judicial, financial and insurance communities – and the result is a win for all." While less than 5% of structured settlements recipients have needed liquidity, the sales that have taken place are usually of vital importance to the consumers who made them. "Debt elimination, medical expenses, new homes, businesses, and tuition costs have been funded with these sales and have made material impacts on the lives of the individuals," Goodman said.
The "model act" format requires that any consumer wanting to sell all or part of the income stream from a structured settlement – the proceeds of a legal settlement paid over time – demonstrates to a judge that the transaction is in their best interests.
While the model act, supported by both the National Association of Settlement Purchasers (NASP) and other trade groups, has been modified over time by individual state legislatures, changes have been more evolutionary than revolutionary.
"Our support for judicial review remains as strong as ever," said Goodman, "and our experience across tens of thousands of transactions is that consumers, once they are educated on the value of that review in protecting their own interests, agree."
For more information about structured settlements as well as individual state statutes governing their sale, go to J.G. Wentworth's Structured Settlement Resource Center (http://www.jgwentworth.com/Structured-Settlement/Structured- Settlement-Information/Default.aspx).
About the J.G. Wentworth family of companies
J.G. Wentworth, Inc., based in Bryn Mawr, PA, is the nation's largest and most respected buyer of deferred payments for illiquid financial assets like structured settlements, annuities and, through dedicated subsidiaries, life insurance policies. Since 1992, J.G. Wentworth has purchased over $3 billion of future payment obligations from consumers and is also the nation's largest securitizer of structured settlement and annuity backed notes. The company's notes are rated AAA by Standard & Poor's and Aaa by Moody's.
For more information about J.G. Wentworth, go to http://www.jgwentworth.com.