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

NASP member companies have agreed to ethical standards; researching and comparing multiple NASP members helps payees identify reputable buyers and competitive offers.

Question 2

What organization represents structured settlement purchasing companies in the US?

Accepted Answer

NASP (National Association of Settlement Purchasers)

Answer

NASP is the primary trade association for companies that purchase structured settlement payment rights, advocating for industry standards and consumer protection.

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

Factoring companies apply a proprietary discount rate to each future payment to calculate a present value, which becomes the gross offer — minus fees and costs to arrive at the net offer.

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

A bid sheet (or quote sheet) breaks down the offer — showing which payments are included, the discount rate, all fees and closing costs, and the net cash to be received by the payee.

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

Legitimate factoring companies encourage independent advice; a buyer who pressures the payee not to consult an attorney or advisor is trying to prevent informed decision-making.

Sell Structured Settlement Practice Test

Sell Structured Settlement Practice Test

Sell Structured Settlement Finding Buyers and Pricing