Bentzen Funding Solutions

A new tool for your tool box

By now we all know that Christi Fried no longer works at John Hancock, but where did she go?  Well, I am pleased to announce that after many years in the structured settlement business Christi has recognized a need in the marketplace and has created Continental Trust Services which provides MSA’s, SNT’s and Annuity testimony.  Here is Part 1 of my interview with her:

 1.     Why did you leave John Hancock?

For 15 years I worked for numerous life insurance companies and I learned how to create and administer products for the personal injury marketplace.  John Hancock hired me to create a structured settlements department and I accomplished that.  I felt it was a good time for me to create my own business and, at the same time, utilize my skills while filling a void in the market.  We need one-stop shopping for brokers to support their clients so, I started Continental Trust Services.

2.     What is Continental Trust Services?

Continental Trust is a company dedicated to servicing the needs of the structured settlement brokers.  Our primary focus is customer service.  We understand the issues involved in settlement and respect the expertise the broker adds to the process.  With so many parties involved in settlement, we commit ourselves to addressing each situation and offering unique solutions.  We provide a company for brokers to place their business because they know the calls will be answered, the answers will be correct, and their clients will be treated with respect and dignity. 

 

Let me give you a few examples.  One of our most popular services is Annuity Testimony.  We offer expert witness consultation to support the annuity product.  Second, Medicare Set-Aside and Special Needs Trusts are an important but; often forgotten product needed to protect government benefit programs.  We help brokers and their clients to provide the best package possible for each situation.  

3.     How does Annuity Testimony work?

Oftentimes a settlement requires the payment of services in the future.  These services include prescription drugs, doctor visits and equipment to support specific disability needs.  Once these needs have been defined in a life care plan, we calculate the present value for those costs.  That value can then be funded with an annuity detailing who to pay, how much and when.  The annuity guarantees a series of payments in exchange for a sum of money.  When consulting as an expert witness for Annuity Testimony, we author a detailed opinion addressing structured settlements, annuities in general and the life insurance companies that compete in the industry.  In addition, we calculate the present value of the individual life care plan detailing the value of each specific service required.

4.     Why would someone want an economist and an annuity expert?

Both professionals offer expertise that is critical to the evaluation of the case.  Economists enhance the life care plan with knowledge of life expectancy, inflation, and market indexes.  Annuity experts calculate the present value of the life care plan using pricing rates, duration and frequency.  We are independent professionals with knowledge of our respective markets but no incentive to sell those products.  We are not appointed by any life markets and use commonly accepted data to present our figures therefore; we are unbiased in our opinions.

5.     What is the present value of an annuity?

Present value is the value on a given date of a series of future payments, discounted to reflect the time value of money.

6.     What is the difference between the actual premium cost and the present value?

The actual premium cost uses an internal rate of return to quantify the time value of money.  This IRR includes charges an insurance company needs to operate, commission, a current yield curve, profit margin table and any additional fees.  Factors such as mortality and sex can change the price as well as market fluctuations.  Typically, actual premium costs expire within one business day to protect the interests of the issuing life market.  The present value of the same annuity is typically much more conservative.  The discount rate used is published by the IRS and updated monthly.

7.     What should people look for when hiring an annuity expert?

Experts should have education and experience in the life insurance marketplace.  Specifically, they should be current on pricing data, compliance issues and participants in the marketplace.  It is imperative that an expert be independent in their assessment with no monetary interest in the outcome of the settlement.

8.     Why are you qualified to do it?

My formal educational background is in economics and statistics.  I studied at Arizona State University and the University of Notre Dame, earning a Bachelor of Science degree, a Certificate of Quantitative Business Analysis and a Certified Structured Settlement Consultant designation.  For 15 years I was a leader at various life insurance companies coordinating the risk management (which includes annuity pricing and medical underwriting), contract administration (including compliance and legal issues) and distribution of structured settlement annuities.  My lectures and publications regarding substandard underwriting, annuity pricing, industry marketing and various topics in respect to federal and state regulation have been hosted by the National Structured Settlement Trade Association, the Society of Settlement Planners, and several brokerage firms.  I have dedicated my career on the issues affecting the personal injury marketplace.

9. Will you enjoy doing this type of work?

Yes, I enjoy working with the broker community and staying involved with the settlement of lawsuits.  You know, most people get up, go to work, and come home without much satisfaction in their day-to-day routine.  I feel very fortunate to know that my efforts have a direct impact on people and help educate them to make informed decisions.  Oftentimes the concepts of annuities get lost because we don’t put them in layman’s terms.  I like building the bridge between the legal and insurance marketplaces.

 

Christi can be reached by calling 617-981-2416

Back from Vacation

I have received several phone calls from people wondering if I'm OK, given that I haven't written in a little while.  Yes, I'm great.  Just came back from a few weeks over seas with my family.  My oldest child (no longer a child) is entering his senior year of college and we figured we had better grab this opportunity for what will probably be our last (whole) family vacation. 

I was so swamped with preparing for the trip, attending conferences and just normal day to day work that I quite frankly didn't have any time left to write.

I will now do my best to keep you updated on my professional opinions and any newsworthy gossip!

  

2nd Annual ASNP Conference

The 2nd Annual meeting of the Academy of Special Needs Planners (ASNP) was held in New Orleans last week.  I am very glad that I ended up attending this meeting as the educational format was phenomenal.  Patrick Hindert has a great summary of it on his blog.

In attendance were SNT attorney's as well as some members of the structured settlement community, namely, John McCullough, Patrick Hindert, Jack Meligan, Michele Whitmore and Joe Tombs.  David Cover from Peoples Bank and Ben Malsh from First Capital were also present as was Rich Halpern of The Halpern Group.

What came across to me loud and clear from attending this meeting is that the ASNP members are very eager to establish relationships with the right structured settlement consultants in their area.  One speaker actually advised the members "to seek out structured settlement consultants in your area and create working relationships with them".  They believe in structures but not over structuring.

The SSP managed to pick-up 18 new members from ASNP as a result of their presence and speaking at the conference.  I think this will be a very good symbiotic relationship for them both.

   

Settlement Planning Approach

When I was a structured settlement broker, my attorney clients would tell me repeatedly how much better I was than the other structured settlement brokers in my area.  “They” would only ever seem to quote a L/20 or TC20 giving very little thought or consideration to external factors that could possibly threaten existing finances or potential upcoming events, such as possible surgery, etc.   When I put structures together, I went through a thorough exploration of all income, potential income, government benefits, vehicles that may need to be purchased or replaced in the future, children’s education, upcoming potential medical bills, re-training costs and timeframes, and the list could go on and on.

When an annuitant comes to me now wanting to explore cashing out some of their structure, I take that same settlement planning approach to unwinding the structure as I did putting it together.  In a lot of circumstances the structure is the only form of income that the person has and it is brutally important to attempt to not only preserve as much of it as possible but to take many external factors into consideration as well.  It takes someone with that kind of experience and knowledge of the product to fully understand and be appropriate to handle the request.  Who would you want handling a complex trust or estate case, for example? Clearly you would want to know that the person has the background and knowledge to understand the nuances of the more complex cases and furthermore have an expert staff to take it to completion.

A price is just a price - one that any self-serving individual could claim to have the best of, especially when quoting it to someone who doesn’t truly understand the ins and outs of the business.  It’s what comes with that price that makes it all make sense in the end. 

Michael Upchurch purchase The Delta Group

The word is finally out – Michael Upchurch of Upchurch Financial has purchased The Delta Group from long-time industry expert and grand-daddy of the SS biz , Dave Snyder.   I, personally, am sad to see Snyder wrap up, as he’s been a very good friend to me for 18 years now.  If Dave was going to sell to anybody though, he couldn’t have made a better choice, as Michael is young, energetic and fresh with a ton of excellent ideas to make the new Delta Group a real force to be reckoned with.

A number of you have called me to ask, “Who is Michael Upchurch?”.  Michael is an accomplished structured settlement producer who resides in Jacksonville, Florida with his wife and 3 beautiful children.  He started in the structured settlement business with Ringler Associates, worked for a short time with Millennium Settlements and then finally showing his stuff with the National Settlement Consultants (the Goodman’s company).  Michael is committed to making a difference in the structured settlement industry and decided that the purchase of The Delta Group was the perfect way to help him accomplish that.

Given Michael’s superior knowledge of public benefits and the rumors that he’ll be creating some innovative new marketing products, I wouldn’t be surprised to report some very exciting news coming out of Upchurch and his new Delta Group company.  Stay tuned!  In the meantime, I know I speak for everyone when I say “we wish you nothing but good health, happiness and the perfect golf score Dave!! – enjoy it, you’ve earned it!”

Term of the week

Inferiority/Superiority complex - Wikipedia defines:

Superiority complex refers to a subconscious neurotic mechanism of compensation developed by the individual as a result of feelings of inferiority.  The feelings of inferiority in this specific complex are often brought on by social rejection, possibly as a result of the individual's inattentiveness to hygiene, appearance, or lower intelligence as compared to others.  The term was coined by Alfred Adler (February 7, 1870 - May 28, 1937) as part of his School of Individual psychology).

Those exhibiting the superiority complex commonly project their feelings of inferiority onto others they perceive as beneath them, possibly for the same reasons they themselves may have been ostracized, i.e.viewing most, possibly all others as "ugly" or "stupid", and beneath oneself.  Accusations of arrogance and cockiness are often made by others when referring to the individual exhibiting the superiority complex.

Behaviors related to this mechanism may include an exaggerated positive opinion of one's worth and abilities, unrealistically high expectations in goals and achievements for oneself and others, the persistent attempt to correct others regardless of whether they are factually correct or not, vanity extravagant style in dressing (with intent of drawing attention), pride, sentimentalism and affected exaltation, snobbishness, a tendency to discredit other's opinions, forcefulness aimed at dominating those considered as weaker or less important, credulity, and others.

Superiority and inferiority complex are often found together as the different expressions of the same pathology and the two complexes can exist within the same individual.

In the structured settlement business, or any business for that matter, it is common professional courtesy that if you find an error of sorts on someone else's web-site, you simply pick up the phone and notify the person of their error.  You should not feel the need to continually belittle and embarrass publicly that person, unless of course you suffer from an Inferiority/Superiority complex.  For anyone suffering from this affliction, it is advised that you obtain immediate help.

Factoring Fantasy

Law Cash dba SSI had this commercial ready to roll.  What's interesting is that one of the principals of LawCash informed me that they have/had a relationship with John Darer, whereby, they would refer him all of the structured settlement business that they received (in exchange for what exactly?):

http://www.youtube.com/watch?v=QTKj7iadros

Our industry's newest reporting folks posted this:

The sight of a tall blonde supermodel in the midst of a pillow fight while also urging people to sell their structured settlements should be enough to alert viewers that what they are seeing might be a joke.  But the short videos that were recorded over the summer but never aired on television were not a joke at all, according Marlies Pinto, 25, the statuesque actress who was cast in the commercials.

Pinto, who is 5'8, 136 lbs, and who has blonde hair and green eyes, said that the ads were made for LawCash and its Structured Settlements Investments affiliate. The parodies feature the company logo but provide a dummy phone number. The factoring company had intended the to add levity to the industry by featuring her and two co-eds in a pillow fight with cash flying about, and another that is a send-up of the old Crazy Eddie discount ads from decades ago, Pinto said.  The parodies can be viewed at http://www.youtube.com/practiceactress. 

In all, the actress said that she spent 14 hours in preparation for the two ads, each of which last for less than 30 seconds. 

With regard to her brief experience learning about structured settlements and factoring, Pinto said that she would be hard-pressed to ever factor a structured settlement.

"I think that it would depend on the circumstances, the amount of the structured settlement, and the company that I was working with," Pinto said. "If something seems too good to be true then it usually is.  After all, these people are in the business of selling things before anything else."

Representatives of Structured Settlement Investments declined comment on the matter. A call to the LawCash corporate office in New York was not returned.

Re-org at Prudential

Prudential sent out a letter today informing interested parties about its reorganization, stating that they are merging their Structured Settlement and Defined Benefit Annuity businesses into a combined Annuities organization.  Joe Barnet will be heading up Pru's Structured Settlement business with continued assistance from John Sciacchitano, Bob Florentine and Chris Allen.  Their bright star, Brian Ginty, however, is not staying on.  I know I speak for everybody when I say that we wish him well in whatever do decides to do.

Wasting my time

I'm confused why John Darer, who recently accused me of having too many posts about him, would now bait me with his "Smackdown".  Like I said yesterday, I'm done.  I am sick of the twisted, manipulative lies by a person, who only 3 months ago, was one of my biggest champions.  All because he is unable to have a professional debate.  Quite frankly, there's just no winning with someone like him, one who I truly believe has a serious inferiority complex.

That being said, my price would have been significantly more with or without a broker requesting a referral fee.  For anyone truly interested, call or e-mail me directly.

Of course it was turned down

Deal Flow Media recently reported about a New York factoring case that was (finally) denied (this was an attempt at a 3rd transaction).  Seneca One (owned by an ex Stone Street employee) attempted to offer the annuitant $10,000 for two lump sum payments of $50,000 May 17, 2019 and $50,000 May 17, 2024.  This equates to a 17.5% discount rate.  New York state is known for its especially paternalistic decisions.  What was Seneca One thinking?