Reinsurance is simply INSURANCE OF INSURANCE. One insurance company assumes the risk of another for a specific claim in exchange for a specified premium.

SO, HOW IS IT USED IN THE STRUCTURED SETTLEMENT PROCESS?

On those cases that are not transferable by "Qualified Assignment" under IRC 121 (worker's comp cases filed before August 5, 1997 and on disability injuries), a life insurance company reinsurance policy assumes the obligations to make specified future periodic payments of the casualty or disability insurer in an underlying settlement agreement. The transfer removes the original carrier from the obligations to make the periodic payments (usually a condition of settlement); and in most cases provides a large life insurance company as an obligor to the plaintiff in lieu of a smaller casualty or disability carrier. The process is usually a win-win for both plaintiff and defendant. The following Delta Group life insurers provide the types of reinsurance shown below:

COMPANY	Notes
	Workers' Compensation Taxable Personal Injury 104(a)(3) Disability Taxable
	Underwritten by Lincoln Benefit Life and ALNY Sold to insurance companies only, for W/Comp Taxable damages, attorney fees
	Worker's Compensation Disability Buyouts
	Worker's Compensation Environmental Claims Policy Buyouts
	Worker's Compensation sold to insurance companies only

 For more information on these carriers contact your local Delta representative.