Sell Structured Settlement Finding Buyers and Pricing

Question 1

Which of the following is the most reliable way for a payee to find legitimate structured settlement buyers?

Accepted Answer

Researching NASP (National Association of Settlement Purchasers) member companies and comparing quotes

Answer

Responding to unsolicited phone calls offering to buy settlements

Answer

Accepting the first offer from any online advertisement

Answer

Asking the annuity issuer to recommend a buyer

Question 2

What organization represents structured settlement purchasing companies in the US?

Accepted Answer

NASP (National Association of Settlement Purchasers)

Answer

NSSTA (National Structured Settlements Trade Association)

Answer

FINRA

Answer

NAIC (National Association of Insurance Commissioners)

Question 3

What is the standard way a factoring company calculates its offer to a structured settlement payee?

Accepted Answer

By discounting the future payment stream to a present value using the company's chosen discount rate

Answer

By averaging competitor offers

Answer

By using the annuity's original purchase price as a baseline

Answer

By referencing published IRS tables for annuity valuations

Question 4

What does a 'bid sheet' from a factoring company typically include?

Accepted Answer

The proposed lump sum, the discount rate applied, fees, and a breakdown of payments being purchased

Answer

Only the final lump sum to be paid

Answer

The annuity issuer's rating and financial strength

Answer

A list of court dates for the approval hearing

Question 5

Which of the following is a major red flag indicating a potentially predatory structured settlement buyer?

Accepted Answer

The buyer discourages the payee from seeking independent legal or financial advice

Answer

The company is a NASP member and licensed in your state

Answer

The buyer provides a written disclosure statement 3 days before signing

Answer

The buyer files a petition with the court for approval

Question 6

What factor most directly allows a payee to increase the lump sum offered by factoring companies?

Accepted Answer

Creating competitive pressure by obtaining multiple written quotes

Answer

Having a longer remaining life expectancy

Answer

Choosing a larger factoring company with more assets

Answer

Selling the payments quickly without delay