NSSTA 2007 Winter Regional Meeting-3

S2KM's coverage of the National Structured Settlement Trade Association (NSSTA) 2007 Winter Regional Meeting includes two prior blog posts:

NSSTA-1 summarizes progress reports from two NSSTA-sponsored initiatives and highlights NSSTA's new strategic priority to recapture the structured settlement brand.

NSSTA-2 summarizes five experts who spoke about factoring at the NSSTA 2007 Winter Regional Meeting.

This S2KM blog post addresses the remaining presentations from NSSTA's educational programs:

All Things Considered (ATC) - Formerly known as "The Tax Posse", this presentation features topics and presenters selected by NSSTA's Legal Committee. In addition to two factoring presentations (see NSSTA-2), the ATC panel addressed three issues in Santa Fe:

• NSSTA Lobbying
  
  • NSSTA lobbyist Eric Vaughn summarized the challenges NSSTA faces with the new Congress including change of control and new membership for both the House Ways and Means Committee and the Senate Finance Committee. 
  • Vaughn did not discuss two lobbying issues which have become increasingly important for NSSTA - government benefits (Medicaid and Medicare) and state laws including: settlement transfer protection acts, state periodic payment of judgment statutes and state Medicaid rules. 
  • One member of NSSTA's government affairs committee stated privately that for the first time in NSSTA history, NSSTA representatives, including Vaughn, recently met with CMS.
  • Two other speakers (Craig Ulman and Peter Vodola) referenced proposed judicial rules which could impact the Pennsylvania structured settlement protection act.

• Tax Issues - Tax specialist Tom Ronce addressed three topics. Ronce warned against potential offsets in current bills in Congress which could impact structured settlements. Ronce provided an update of Murphy v. IRS in which the D.C. Circuit Court of Appeals has agreed to revoke its controversial 2006 decision and to rehear the case in 2007.  Ronce summarized proposed federal tax regulations, including private annuity regulations, which could potentially prevent the structuring of attorney fees.  For additional information about the attorney fee issue, read this prior S2KM blog post.

• Agent Responsibilities and Exposures - Attorney Mike Miller summarized the Law of Agency as it relates to structured settlement consultants. Miller's comments also included a review of the 2006 Saltzburg and Chemerinsky memorandums plus an update on two class actions lawsuits, Macomber v. Travelers and Spencer v. Hartford.  For additional information about the Saltzburg and Chemerinsky memos, read and listen to this "Jack Meligan Interview". For additional information about Macomber v. Travelers, read this prior S2KM blog post.

Supporting Casualty Claims - Ismael Acevedo, Vice President of AIG's Structured Settlement Division delivered an educational primer for structured settlement consultants who represent (or want to represent) casualty claim departments. Acevedo's presentation summarized the results of an AIG survey of 1000 claims adjustors.  In addition, Acevedo announced a new AIG initiative to make its structured settlement program "more transparent". Acevedo did not specify whether or how this new AIG initiative will apply to such issues as factoring and/or to informed consent by injured claimants for structured settlement compensation arrangements.

The Non-Qualified Market - Speaker Dennis Drexler recommended that structured settlement consultants should consider the market for non-qualified annuities used to fund installment sales of businesses, professional practices or real or personal property. The benefits for a purchaser, according to Drexler, can include: deferred payment of capital gains, the ability to customize a payment stream, and the improved credit worthiness of the obligor.

Settlement Trust Workshop - For the second consecutive conference, NSSTA devoted half-a-day of its educational program to settlement trusts. Three trust experts, David Cover, Brad Cantwell and Jay Sangerman analyzed the relationship of annuities and trusts in the context of three case studies.

• Cover, a trust officer, pointed out the lack of knowledge most trust officers have about structured settlements as well as the important role of special needs attorneys when government benefits are an issue.
• Cantwell, a structured settlement consultant and Chairperson of NSSTA's Educational Committee, described how blended products (trusts and annuities) improve settlement planning.
• Sangerman, a special needs attorney, discussed the use of annuities to fund special needs trusts. Responding to this author's question, Sangerman insisted the Deficit Reduction Act of 2005 (DRA) does not apply to structured settlement annuities.
• Read these prior S2KM blog posts for additional information about:
  • Settlement trusts;
  • The DRA and structured settlements.