Delta Settlement`s Blog

Catastrophic Injury Settlements – Multiple Trauma, Traumatic Brain Injury, Spinal Cord Injury, Severe Burns, and Limb Amputations

Posted on January 18, 2013 by Delta Settlements

Settlement professionals have a number of responsibilities while working on any catastrophic injury claim. Whether the injury is work related or the result of medical negligence or an accident, our job is multifaceted. Of course Delta Settlements works for each client who retains our services, but it is clear that all of the professionals with whom we are involved on any claim are entirely focused and concerned about the injured individuals who have brought everyone together.

We are very fortunate at Delta Settlements as we are retained by attorneys representing the injured person as well as attorneys representing a workers’ compensation carrier or an insurance company. It has been our experience that when providing all the medical information and future care projections, settlements are reached in such a manner and of such substance that all the professionals involved can sleep peacefully knowing a successful outcome was achieved.

CMS Issues Advanced Notice of Proposed Rulemaking

Posted on July 11, 2012 by Erin Martin, Esq., MSCC

CMS has taken the much anticipated initial steps in formulating rules regarding how to protect Medicare’s interests in liability claims involving future medicals. On 6/15/2012, CMS issued an advanced notice of proposed rulemaking soliciting comments on options they are considering making available with respect to how beneficiaries and their representatives can meet their obligations to protect Medicare’s interests in Medicare Secondary Payer (MSP) claims involving future medical care. The types of claims include automobile and liability insurance (including self-insurance), no-fault insurance, and workers’ compensation. The notice includes a proposed general rule, proposed definitions, and 7 proposed options. Comments can be submitted electronically, by regular mail, via express or overnight mail or by hand or courier. The deadline for submission is August 14, 2012. Don’t miss the opportunity to speak up!

To read the full article visit: https://www.federalregister.gov/articles/2012/06/15/2012-14678/medicare-program-medicare-secondary-payer-and-future-medicals#p-26

Posted in Uncategorized | Tagged CMS, future medicals, Liability, Medicare, rulemaking, Workers' Compensation | Leave a comment

Pacific Life Affirmed as A+ by A.M. Best

Posted on July 11, 2012 by Mikel Taft

Pacific Life Insurance Company will keep their position as a leader in the financial strength ratings. Both Standards and Poor and A.M. Best have given Pacific Life Insurance Company and Pacific Life & Annuity Company the Affirmation as an A+ company with a stable outlook.

Delta Settlements is committed to providing our clients with the best products from the best companies. Ask us to about a full market survey today.

Click Here to see the July 6th Press Release.

Posted in Delta Settlements | Tagged A.M. Best, Delta Settlements, Financial Rating, Market Survey, Pacific Life, Pacific Life & Annuity Company, Pacific Life Insurance Company, Standards and Poor, Structured Settlement | Leave a comment

Question of the Week: What is the definition of internal rate of return?

Posted on July 9, 2012 by Delta Settlements

In a new weekly feature, we will share a question that our firm receives during the week that may be of interest to many others just like them. This week we tackle “what is the actual definition of internal rate of return?” According to Wikipedia.org (and countless other highly visited websites), the internal rate of return on an investment or project is the rate of return that makes the net present value of all cash flows (both positive and negative) from a particular investment equal to zero. In more specific terms, the IRR of an investment is the discount rate at which the net present value of costs (negative cash flows) of the investment equals the net present value of the benefits (positive cash flows) of the investment.

Please check back next week for our next installment of “Question of the Week”. As always, contact us with any assistance you may need with your structured settlement – past, current, or future. We will be glad to help.

Posted in Uncategorized | Tagged internal rate of return, IRR, Question of the Week, settlement investment, Structured Settlement | Leave a comment

Erin Martin, Esq. named to JWLA Board

Posted on June 25, 2012 by Mikel Taft

Delta Settlements is very proud to announce that our own Erin Martin has been named to the Jacksonville Women Lawyer’s Association’s board. Ms. Martin will be acting as the Vice President of the Judicial Reception. Please join us in congratulating Erin on her new position, and she will be looking for your assistance to make next years Judicial Reception a great sucess.

Click Here to see pictures from the 2012 Judicial Reception.

Erin A. Martin, Esq., MSCC
Delta Settlements
Medicare Set-Aside Consultant
135 West Bay Street, Suite 400
Jacksonville, FL 32202
(904)598-1110
erin@deltasettlements.com

Posted in Delta Settlements | Tagged Delta Settlements, Jacksonville Judicial Reception, Jacksonville Women Lawyers Association, Judicial Reception, JWLA, Medicare, Medicare Set-Aside, Medicare Set-Aside Consultant | Leave a comment

Why Rated Ages Are So Important

Posted on May 31, 2012 by Andrew Jackman

We recently assisted a client who had been involved in an automobile accident that resulted in a broken leg. When the attorney brought the case to us and requested quotes, he seemed surprised at our request for her medical files. The attorney was under the impression that a broken leg would have no rendering on a rated age. In reality the life insurance companies do not segregate the medical files and only consider this one injury when making their valuation.

The attorney sent us the medical records for his client, and we presented a summary to the life insurance companies depicting the overall health of the client. We received a medical analysis from seven life insurance companies ranging her Rated Age from 36 (standard) to 40. Four years may not seem like a big deal, but when the life insurance company is quoting you on the rest of your expected life, it makes all the difference.

This four year rating meant the difference of $8,157 in guaranteed benefit, and a total of $48,889 in expected benefit (assuming she lives her full natural life).

Rated Ages are an important part of the Structured Settlement Industry. Make sure your Settlement Planner is taking a look at all of your options. Our clients are glad that we do!

Posted in Delta Settlements | Tagged Age Rating, Delta Settlements, Life Insurance Companies, Medical Records, Rated Age, Rated Ages, Settlement Planner, Settlement Planning, Structured Settlement | Leave a comment

Structured Settlement Market Survey Earns Client 15% More For Her Financial Future

Posted on May 24, 2012 by Delta Settlements

This week provided a great example of why an injured plaintiff and their attorney should ALWAYS utilize their own consultant when contemplating the use of a structured settlement. Our client was the victim of a horrific sexual assault and as part of her ultimate settlement package, a structured settlement was included. One of the liability carriers, a member of the Chartis Insurance family, and their brokerage firm representative, Atlas Settlements, would only agree to fund the annuity through an “approved list” of annuity providers. Approved lists are common in the industry and are somewhat understandable if the list is tied directly to a minimum financial rating, such as “A+” by A.M. Best.

However, the list our client had to choose from was a nonsensical group of companies that included “A”, “A+”, and “A++” rated entities. After working with the client and her advisors to create a plan for her financial future, Delta Settlements was able to obtain the best return with a well-known “A+” rated insurance company; a company that was not approved by Chartis. It was not enough that our client had suffered traumatic injuries to begin with, but now was getting denied a 15% higher return by Chartis as part of the claim resolution. As an advocate for innocent victims like our client, this was unacceptable to us. We pushed back and ultimately gained approval. If Delta Settlements had not been retained to consult on this case, this victim would have been inevitably victimized again.

If you are thinking about including a structured settlement as part of your settlement terms, please contact us for a full market survey so that you are not taken advantage of by the likes of Chartis and other liability insurers.

Posted in Delta Settlements | Tagged annuity payments, approved lists, Atlas Settlements, Chartis Insurance, Delta Settlements, guardianship, injury victims, personal injury settlement, plaintiff, Structured Settlement | Leave a comment

Personal Injury Attorneys and Injury Victims, Listen Up!

Posted on March 15, 2012 by Delta Settlements

Attorneys
You simply cannot afford to ignore structured settlements. The excuses range anywhere from the misconception that a structured settlement is just another time consuming task, to preconceived notions that all clients just want a lump sum and to move on. Other attorneys have ignored structured settlements by simply carrying the “if it ain’t broke, don’t fix it” mentality. One of the most popular reasons attorneys ignore structured settlements results from feeling that they are not sufficiently knowledgeable in the area, and do not have time to learn. All of these excuses are remedied by simply bringing in a structured settlement planner.

Aside from these misconceptions, attorneys need to remember they have an obligation to zealously represent their client and are remiss to ignore the benefits a structured settlement may provide. In fact, there have been cases where the plaintiffs’ attorneys have been held responsible for failing to present structured settlements to clients in resolving their cases.

The decision to present various options a structured settlement may provide a particular claimant should not be solely out of fear of attorney accountability. Isn’t it just good business practice in general to provide the best possible outcome for your injured client and ensure their future care? I do not think it is any secret that more than a handful of choices exist for an injured party seeking representation. If an attorney brings in a structured settlement planner to work with the injured party who presents options tailored to that party’s needs, which in turn maximizes the injured party’s recovery, it seems logical that you’re going to have a more satisfied client.

So what do you have to lose? As an attorney representing an injured party, why not consult a structured settlement planner who will work with you to ensure the best result for your client? There is no hidden agenda, or hidden costs involved, there is nothing to lose. Having a structured settlement planner costs nothing for the attorney or the client. The structured settlement planner will look at the injured party’s needs, discuss their goals and work together to present options that serve to meet those goals and maximize the settlement proceeds without prematurely exhausting the funds. Of course a structured settlement is not the best solution for every case and your planner will indicate such if it does not make sense for a particular injured party’s specific situation.

It does not necessarily have to be an enormous settlement amount in order to benefit from a structured settlement. There are many situations wherein cases settling under six-figures greatly benefit from a structure, but those benefits cannot be considered if you fail to engage a structured settlement planner.

Injury Victims – Plaintiffs
You are the reason structured settlement options exist. A structured settlement is not something created by the financial sector looking to prey upon the proceeds of your settlement funds. Rather, the government has allowed for injury victims to receive their settlements in the form of periodic payments through a tax-free income stream, with the intention of not prematurely exhausting the settlement funds. While a structured settlement is not the right option for every case, the injury victim should absolutely ask their attorney or structured settlement planner to see if their case would benefit from such.

In general, the benefit of a structured settlement through periodic payments largely depends on the type of injury and type of person in the particular case. The following types of injuries or cases are the most common that benefit from a structured settlement through periodic payments:

Injuries requiring ongoing medical care, treatment, or rehabilitation;
Injuries involving loss of limbs;
Injuries involving multiple fractures;
Injuries involving serious burns to the person;
Injuries resulting in moderate or severe permanent disability or injury;
Spinal cord injuries;
Moderate to severe head injuries;
Wrongful death.

In addition to the type of injury involved, such as those listed above, the type of person who has been injured may also help determine the suitability of a structured settlement periodic payment plan. The following general categories are merely given as examples:

Minors;
Elderly persons without significant income sources to provide for their care;
Persons with physical or mental hardships or disabilities;
Persons with poor financial management habits;
Persons needing long-term or lifetime income streams to cover ongoing costs
Persons without immediate need for large amounts of money.

Common Types of Structured Settlements
Another consideration of a structured settlement involves an awareness of the many different options available depending on each particular injured party’s needs and goals. A structured settlement planner is able to listen to these needs and goals of the injured party and customize a plan or present several options best suited to meet those specific needs and goals. While there are far too many ways of tailoring a plan to list them all, the following list illustrates some of the more common ways to structure settlement funds:
(Keep in mind, in any of the payment arrangements listed below, it is very common to use some of the settlement funds to immediately pay current and past expenses or bills, attorney fees, and any other immediate cash needs)

A set payment amount received over regular intervals for life. (i.e., $2,000 per month, for life)
A payment amount that increases periodically and are paid regularly for life (i.e., $2,000 per month, increasing 3% annually, for life)
A set payment amount or periodically increasing payment amount, paid for life, and with a specified period of time wherein even if the claimant dies, the payments will continue through the end of that specific period of time to the claimant’s estate or to another contingent payee. (i.e., $2,000 per month, with a 20 year guaranteed payment period, wherein should the claimant die, their estate or possibly children etc., will continue to receive the payments)
A set payment amount received over regular intervals for a fixed period of time, which will be paid regardless of whether or not the claimant is living. ($2,000 per month, for 20 years, paid regardless of the claimant’s lifetime)
A set payment amount received over regular intervals for life, plus additional lump sum payments at specific future dates. (i.e., $2,000 per month for life, with a $25,000 payment in 10 years and a $75,000 payment in 20 years)
Any of the above payment structures, plus the addition of specified funds for anticipated future needs such as college funds or new house funds. (i.e., $2,000 per month for life, plus $80,000 lump sum for children’s’ college expenses)
Any of the above payment structures, plus a medical trust funded with a specific amount of money to be used for future medical expenses.
Any of the above payment structures, plus a special needs trust to pay for any other anticipated special needs specific to a particular case)

Sample of what a Structured Settlement could look like:

Injured Party / Claimant: A female, who is 8 years old, struck by a car while riding her bicycle suffered a broken arm and leg. The case settled for a total of $490,502. Considering her young age, and need to maximize the settlement funds a structured settlement was agreed upon wherein the $490,502 provided a guaranteed amount of $1,102,028 with an expected payout of $1,975,175 as illustrated in the chart below.

In summary, for the example given above, the guaranteed amount the claimant would receive would be $1,102,028. The expected amount the claimant would receive, based on current life expectancy estimates, would be $1,975,175. Finally, the cost to provide these funds to the claimant would be in the amount of the $490,502 from the settlement funds.

If you have any questions about this posting or would like further information relating to a particular case you have, please contact one of our knowledgeable planners who will happily assist you.

(407) 252-5156 or (877) 596-5705

Posted in Delta Settlements | Tagged injury victims, Lump Sum, Periodic Payments, personal injury, personal injury attorneys, structured settlements | Leave a comment

Amended Regulations: Compensation for Physical Injuries or Sickness – Income Exclusions

Posted on January 24, 2012 by Delta Settlements

The Internal Revenue Service put forth final regulations, effective January 23, 2012, addressing taxpayers receiving money damages arising from personal physical injuries or physical sickness and also taxpayers paying these damages. The changes implemented have been put in force through Treasury Decision 9573 revising IRS Reg. §1.104-1(c) regarding the income exclusion under IRC §104(a)(2). The revised regulation removed the tort type injury test for determining whether damages could be excluded from taxable income and also clarified the application of emotional damages.

The revised regulations deleted the requirement that money damages received from a legal suit, action, or settlement agreement would only be excluded from gross income if based upon a tort or tort type rights. Originally, the tort-type injury test was put forth in attempt to distinguish money damages received from personal injury as opposed to money damages received based upon another cause of action such as breach of contract.

Subsequently, through specific legislative and judicial developments, there is no longer a need to base the §104(a)(2) exclusion on tort cause of action and remedy concepts. Discussed in the preamble of the final regulations, the IRS cites both Commissioner v. Schleier, 515 U.S. 323 (1995) and the revisions adopted by Congress in 1996 as justification for removing the tort test. As a result, the new regulations now provide that the “exclusion may apply to damages recovered for a personal physical injury or physical sickness under a statute, even if that statute does not provide for a broad range of remedies. The injury need not be defined as a tort under state or common law.”

Next, Reg. §1.104-1(c)(1) clarified the circumstances under which money damages for emotional distress will be excluded from income. The revised regulations indicate that emotional distress, standing alone, is not considered a physical injury or physical sickness. However, money damages for emotional distress attributed to a physical injury or physical sickness will be excluded from income. For example, if a personal injury settlement resulted in a specific amount designated for the physical injuries and also an amount designated for the emotional distress caused by that same incident, all amounts would be excluded from income. On the other hand, if the suit was based on emotional distress only, and there was no physical injury or sickness, any award of damages would not qualify for the exclusion and would be taxable.

There is one exception noted that would allow for the exclusion of money damages related to emotional distress unrelated to any physical injuries. IRC §104(a)(2) does provide for the exclusion of money damages related to emotional distress to the extent such damages are not in excess of amounts paid for medical care related to such emotional distress.

The regulations define the term damages as “an amount received (other than workers’ compensation) through prosecution of a legal suit or action, or through a settlement agreement entered into in lieu of prosecution.”

For further discussion and explanation of the revised regulations relating to compensation for injuries or sickness, click here.

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