Structured Settlement Basics Flashcards
6 cards from real Sell Structured Settlement practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Structured Settlement Basics flashcards as text
Which type of structured settlement payment schedule pays equal amounts at regular intervals?
Answer: Level periodic payments
Level periodic payments are equal in amount and paid at consistent intervals such as monthly or annually throughout the settlement term.
A structured settlement with 'increasing payments' typically adjusts by what method?
Answer: A fixed percentage or cost-of-living index each year
Increasing payment structures commonly apply a fixed annual percentage or tie adjustments to a cost-of-living index such as the CPI.
Which entity issues the annuity contract underlying most structured settlements?
Answer: Life insurance company
Life insurance companies are the issuers of annuity contracts that back structured settlements, and they must meet state insurance regulatory requirements.
In a structured settlement, what is a 'lump-sum deferral'?
Answer: A single large payment scheduled at a future date within the payment stream
A lump-sum deferral is a single large payment built into the settlement to be paid at a specific future date, such as for a college education or retirement.
What is the typical role of a structured settlement broker?
Answer: They design and negotiate the payment structure on behalf of the plaintiff
A structured settlement broker works with the plaintiff and their attorney to design a payment schedule that meets the plaintiff's long-term financial needs.
Which organization provides professional certification for structured settlement professionals in the US?
Answer: NSSTA (National Structured Settlements Trade Association)
The NSSTA is the primary trade association for structured settlement professionals and supports the Certified Structured Settlement Consultant (CSSC) designation.