Loans Before You Get Your Structured Settlement

If you or a loved one has been involved in an accident at work, an automobile accident, or a wrongful death case, and expect to be awarded a structured settlement in your lawsuit, then you might want to consider getting a loan to start enjoying that settlement money early. This is because many injury trials can extend for a long time and you may need that money now.

While the expectation of a large sum of money from winning a trial is great, there is often the problem of being able to pay the day to day bills as well as the medical expenses related to the accident before the award is given to you. For this reason, many people get a loan based off of their probable lawsuit winnings.

Now you will be able to heal and recover from your injuries in a more stress free environment because you do not have to worry about the family not having enough money. You can maintain your current quality of life until you have healed enough to go back to work.

A great feature of settlement loans is that they do not have to be repaid if you do not win your settlement. There are no liens on your house or other assets because it is based off of the expected pay out. This means that the lender takes the risk of the case not being won, and will give you confidence in your trial if lenders have no problem lending you money.

Even if you do not think that you will need to get a loan during the trial and while you wait for your verdict, it is a good idea to research getting a loan for your future settlement so that you will be prepared if you do end up needing it. Emergencies come up and it is always best to be prepared for the worst, so that you reduce your chance of having a negative financial situation.

Your Lawyer's Thoughts on Settlement Loans

Settlement loans are an excellent asset to plaintiffs in a current pending lawsuit. They allow the plaintiff to acquire financial funds to pay for day to day expenses, medical bills, litigation fees and whatever else they might require the funds for. Someone people are hesitant on applying for settlement loans due to how it can affect their case and what their lawyer might think. There are a few things the plaintiff should know regarding a settlement loan when it comes to their case and their lawyer's thoughts on it.

A Settlement Loan Does Not Affect Your Case

Unlike what many people would think a settlement loan will not affect your pending lawsuit. The defendant is not required to be notified of your intentions to acquire a settlement loan nor are there any laws requiring you to do so. Even if the defendant did find out about a settlement loan it would have no bearings in the pending lawsuit. So relax, getting a settlement loan will not affect the outcome of your lawsuit.

Lawyer's Favor Their Clients Getting Settlement Loans

Lawyers usually favor their client's idea of getting a loan; one reason being the example given in the above paragraph. They also allow the client to not settle the case early; this is common due to the financial hardships that can follow during a pending lawsuit. This helps the lawyer keep the client financially afloat and fight for the maximum amount of money that can be awarded. Let's face it, the more money you get awarded the more money your lawyer gets.

You can simply see with the above information a 2 things; one is a settlement loan will not affect your lawsuit in any way, shape or form. Two is that your lawyer will not be against the idea of you obtaining a settlement loan. Don't let financial issues require you to settle early!

Top 5 Reasons to Get a Settlement Loan

A settlement loan is a cash advance on a possible settlement amount in a pending lawsuit. A settlement loan provider would review the merit of your lawsuit and probability of winning and determine if you're eligible. Below are the top 5 reasons why a settlement loan would be right for you.

#1. Settlement loans don't require credit checks or specific income amounts.

A settlement loan is really just a provider or investor buying interest into your pending lawsuit. They provide a specific portion of your estimated awardable amount in return for a portion of it and they original amount loaned. Since the settlement loan is based solely on your case your credit report and current income play no role in the approval process.

#2. You only pay back the loan if you win your case.

This is what makes settlement loans not a true loan by nature. If you happen to lose your current lawsuit you're not required or obligated to pay back the original amount of the settlement loan. You only pay it back if you win your lawsuit case; this alone makes a settlement loan far more appropriate than a traditional loan.

#3. Allow you to not settle your lawsuit early for a lower amount.

Since you'll probably not be able to work during a pending lawsuit income will be hard to come by. Due to ethic rules an attorney cannot loan their client money, as it might credit situations where you'll feel you'll need to settle sooner when you really didn't want to. Since a settlement loan can provide your financial support during your lawsuit you won't feel the stress to settle early. You'll be able to make all medical, auto, home, etc payments on time and protect your credit history.

#4. You don't have to take out a loan against the full amount.

Unlike common belief you don't need to take out the maximum amount in allowed in a settlement loan. You'll find many providers go as low as $250 and up to $1,000,000+ when it comes to loan able amounts. This way you can only take out what you need to support yourself during the case and keep more of your awarded money at the end. Most settlement loan providers will also allow you to take out multiple settlement loans if you still need more money and the case has not ended yet.

#5. Settlement loans do not affect your case at all.

For some reason people think settlement loans will effect their case, this is farther from the truth. The defendant in your case is never notified if you apply for and\or get accepted for a settlement loan. In fact, the court itself isn't even notified about the settlement loan and the provider is not required by law to notify anybody beyond your attorney.

Using a Settlement Loan to Consolidate Payments

If you've been injured and have been awarded an insurance settlement or if you've won any amount of money either in court or in a game where the payments will be made over a period of time, it might seem great at first only to become rather annoying as time goes by.

To help correct this, you might want to consider finding a lender to offer you a settlement loan so that you can consolidate all of the payments that you're receiving into a single lump-sum payment.

Of course, getting a settlement loan isn't always as easy as some other types of loans since there is almost always some sort of legal aspect involved in the payments that you're trying to consolidate... in most cases, you'll need to have an attorney to set up the settlement loan so that no contracts are broken and the payments are redirected to the proper parties.

The extra work is usually worth it, however, since you will be able to receive years worth of payments at once from the loan and won't have to worry about repaying the loan afterwards.

How Settlement Loans Work

Since settlement loans aren't as common as most types of loans, many people don't know how they work if they even know that these loans exist. The process is actually quite simple however, the lender issues you a loan for the amount of your total award, minus applicable fees and charges. Your payments are then redirected to the lender, and serve as the loan payments so that you don't have to repay the lender at a later date.

You don't have to worry about using collateral to secure the loan since the payments will be set up automatically, and the lender doesn't have to worry about the risk of you defaulting on a larger loan since they will be guaranteed to get their money back plus their loan fees from the incoming payments.

Rerouting the Payments

The real trick to getting a settlement loan comes in setting up the transfer of payments. In most cases, the payments that you receive are either court mandated or are considered to be generally non-transferable by the issuing body. You'll have to hire an attorney to set up the legal transfer of the payments from you to the lender... unfortunately, this will cost a little bit more of the money that you receive.

It's usually best to visit the attorney first, before looking for a lender; many attorneys who deal in this sort of loan already have lenders that they work with, and by letting them set up the transfer and loan you may be able to save a little bit of money in the process.

Receiving the Loan

After all of the legal matters have been taken care of and the settlement loan has been approved, all that's left for you to do is to receive your money and move on with your life. Often, the money from the loan will be deposited directly into your chequeing or savings account or some combination of several different accounts.

In some cases, however, the lender may prefer to issue you a cheque for the total amount of the loan, or you might prefer to receive a portion of the money in cheque form while having the remainder deposited. The options available will largely depend upon the lender who grants the loan and possibly on the terms of the transfer as well.

Use a Settlement Loan As a No Risk Legal Financing Aid

Many people involved in a lawsuit find themselves in a difficult situation. Not all lawsuit attorneys representing a plaintiff work on pro bono or contingency fees. They require a retainer fee up front and payment for other costs of the lawsuit trial. This type of financial requirements is difficult if not impossible for 90% or more plaintiffs. This is a big reason why many people don't follow through with a lawsuit, or settle with a less experienced attorney or law firm. There is an option; a pre settlement loan is a great way to secure legal funding.

A settlement loan is basically an advance on the possible monetary award of your lawsuit. A settlement loan provider will give you a cash loan which can be used for whatever you'd like, including legal funding. In return, if your case reaches a verdict in your favor and money is awarded you'll pay back the loaned amount, interest and a nominal fee. If you happen to lose your case you are not required to pay back the loan, that's right a settlement loan is a non-recourse loan, meaning it's only required to be paid back if you win your case. This is an excellent solution for a plaintiff in need of legal funding but unable to get access to funds with their own assets.

Now, look at the advantages your able to get a cash loan in advance of any awarded money in your lawsuit, to spend as you need. This can lift a big financial burden off the plaintiff, and allow legal fees to be paid, medical bills, monthly payments, etc. In return, the downside is you are required to pay back the full amount, interest and a nominal fee only if you win your case. That being said, you should only get a loan on the absolute smallest amount you need, perhaps enough for monthly expenses for a few months and your legal fees.

Remember, if your case reaches a verdict in your favor and awarded monetary gains you'll get much more from a judge or jury than you would with an out of court settlement. So, a settlement loan may cost you in interest, but overall increase the amount of money you're able to receive.

Cash For Personal Injury Settlement

The economy is getting worse every day. Many people are selling their stocks and trading their investments in for less risky options. What is more secure than cash today? You may be wondering how to get cash for a personal injury settlement. Don't wait for 20 years to pass for your personal injury settlement to finally pay off. You are losing money every day on future payments. Your personal injury settlement is static and locked in to a rate of return that gets lower every day. The future is too risky. If you need cash, get it now. Your future payments lined up are easily turned into lump sums of cash. Don't wait for cash any longer it is yours. The court awarded it to you for your injury lawsuit. Just think about it, if you have large expenses and are head over heals with debt then get out now.

Get cash for your personal injury settlement. Disadvantages are many to holding on to the settlement payment plan you have. You are not getting a high rate of return; you are not able to use it as collateral. $500 - $900 a month payments for the rest of your life does not help you as much as cash now of $40,000- $60,000 that you can get. Why continue to ruin your credit or live a financially stressed life. Get control and freedom back to your life by cashing in now.
Cash for a personal injury settlement may be used for:

• Bills that are way past due and piled up
• Business funds and large expenses
• Children's education tuition
• Home or condo improvements
• New automobile
• Avoid foreclosure
• Avoid bankruptcy
• Medical expenses, treatments and equipment you need
• Down payment for a new house
• Legal problems & lawyer fees for other issues

Top 5 Reasons to Get a Settlement Loan

This article is designed to explain the top 5 reasons why someone might want to look into a settlement loan. A settlement loan is a cash advance on a possible settlement amount in a pending lawsuit. A settlement loan provider would review the merit of your lawsuit and probability of winning and determine if you're eligible. Below are the top 5 reasons why a settlement loan would be right for you.

#1. Settlement loans don't require credit checks or specific income amounts.

A settlement loan is really just a provider or investor buying interest into your pending lawsuit. They provide a specific portion of your estimated awardable amount in return for a portion of it and they original amount loaned. Since the settlement loan is based solely on your case your credit report and current income play no role in the approval process.

#2. You only pay back the loan if you win your case.

This is what makes settlement loans not a true loan by nature. If you happen to lose your current lawsuit you're not required or obligated to pay back the original amount of the settlement loan. You only pay it back if you win your lawsuit case; this alone makes a settlement loan far more appropriate than a traditional loan.

#3. Allow you to not settle your lawsuit early for a lower amount.

Since you'll probably not be able to work during a pending lawsuit income will be hard to come by. Due to ethic rules an attorney cannot loan their client money, as it might credit situations where you'll feel you'll need to settle sooner when you really didn't want to. Since a settlement loan can provide your financial support during your lawsuit you won't feel the stress to settle early. You'll be able to make all medical, auto, home, etc payments on time and protect your credit history.

#4. You don't have to take out a loan against the full amount.

Unlike common belief you don't need to take out the maximum amount in allowed in a settlement loan. You'll find many providers go as low as $250 and up to $1,000,000+ when it comes to loan able amounts. This way you can only take out what you need to support yourself during the case and keep more of your awarded money at the end. Most settlement loan providers will also allow you to take out multiple settlement loans if you still need more money and the case has not ended yet.

#5. Settlement loans do not affect your case at all.

For some reason people think settlement loans will effect their case, this is farther from the truth. The defendant in your case is never notified if you apply for and\or get accepted for a settlement loan. In fact, the court itself isn't even notified about the settlement loan and the provider is not required by law to notify anybody beyond your attorney.

Settlement Loan Application Process 101

Getting a settlement loan isn't that daunting of a task. The process is different between each settlement loan provider, but usually takes around 2 to 7 days to get approval. You can usually fill out the application online or over the phone. The settlement loan provider will need to speak with your attorney and this may incur costs.

There are several factors that come into play if you'll get approved for a settlement loan. One factor is the type of claim (or lawsuit type) that is currently pending. The amount you're looking to get advanced will also be considered in the process. The duration of the case can also affect the ability to get a settlement loan, or affect the amount you can receive. Finally, the most important factor is the risk. This will be based on the merit of your case and how it's looking in terms of your party winning the lawsuit.

Your settlement loan application will require all your personal information; including name, address, city, zip code, phone number and date of birth. You shouldn't be required to give your social security number since your credit history does not play a factor into the decision, they may need to use it verify your identity.

You'll then need to provide information regarding your pending case. Below is the a list of information you should have on handle, but not limited to...

Law Firm Name
Attorney Name
Law Firm Address
Law Firm Phone Number
Attorney Phone Number
Paralegal Handling Your Case
City & State of Court
Case Type
Provide Case Details (more detailed the better)
Accident Information (if applicable)
Defendants Insurance Information
Any Settlement Offers from Defendant
Liens & Assignments Regarding Your Case

Remember, you should consult your attorney prior to applying for the settlement loan. They will be required to speak with the settlement loan provider and this can incur a charge with you attorney. Most settlement loan providers do not charge any application fees, however in some instances you might be charged a fee. Make sure to inquire about any fees.

Settlement Loan Frequently Asked Questions

The settlement loan frequently asked questions contains the 7 most popular answers to questions regarding settlement loans. It's common to have questions when taking out this type of loan. Below, you'll find all the answers to the basic questions that can arise.

What is a Settlement Loan?

A settlement loan is a cash advance on your pending lawsuit. A settlement loan provider will give you a loan contingent on your pending case; based on the amount that you might win and the merit the case holds in court. These are great for people who cannot work during their pending lawsuit and need cash to support themselves financially.

How do I pay back a Settlement Loan?

You loan is paid back after you case is settled. You will not make monthly payments or have a lien placed on any property you might own. The whole concept of the settlement loan is to provide an advance on possible winnings awarded in your lawsuit case.

What if I lose my pending lawsuit?

With most respectable settlement loan providers you pay nothing back. The agreement is that you only pay back the loan if your case is won. If you win less money then what was provided in your loan you keep the difference.

Can't my attorney just lend me money during my case?

The American Bar Association won't allow attorneys to lend money to clients. This prevents conflict of interest during your pending lawsuit. In theory, if you owed your attorney money you might feel the need to settle for a less amount to satisfy that loan.

What can I use the Settlement Loan for?

Whatever you want, the settlement loan will not contain restrictions on what the money can be spent on. However, settlement loan providers like to know their clients are using the money to support themselves during their pending lawsuit financially.

How long does it take to receive my funds?

This can vary from settlement loan providers; it can take longer if you go through a broker and not an actual settlement loan provider. It can take around 2 to 7 days in most instances to get your loan approved and receive your funds.

What will my attorney think of getting a settlement loan?

Your attorney should understand with your interest in a settlement loan. They especially know the hardship on some clients during a pending lawsuit when they cannot get access to funds. As long as it doesn't interfere with any current agreements with your attorney they should have no reason to be against the idea.

Financial Freedom With Structured Settlement Loans

Unlimited money in the form of cash is something most of us want. But to have this all the time might not be based on reality. We usually need money everyday whether it is for personal or business purposes. Whether we like it or not, finance and managing our finances have always been, and will always be, part of our needs. It is also a reality that we need to borrow money to strengthen our finances Even when a big amount of money is coming from a structured settlement; we sometimes need assistance so as not to disrupt our regular finance flow. Most people might think that having a guaranteed cash flow is a myth. Nowadays, it is not. Many financial companies offer structured settlement loans in order to assist you and thousands of others in their financial responsibilities. Acquiring these services also means that structured settlements caused by lottery winnings, lawsuits, and other sources of structured settlement will no longer be your worry. Someone can provide the nitty-gritty details for you. These companies not only exist for profit but also to help people be more financially stable and guarded.

It is also important to know of trustworthy, dependable, and reliable financial companies who offer structured settlement loans. It is likewise a big help if they provide loans and financial assistance fast and easy. Most people who have need for financial assistance may widely vary from experienced businessmen to business neophytes, from employees to housewives, from people who simply need to acquire these type of loans for paying debts, having cash at hand, do some house repair, make educational payments, get that much-needed vacation and even personal necessities. Also offered by such finance companies are similar loans for auto, housing, student or educational purposes, and even credit card loan settlements. In those instances, a guaranteed source of financing is a must.

If a person has acquired a structured settlement scheme from a personal injury lawsuit, winning a lottery or by any other means, the person usually gets the total amount of money on a structured settlement basis. But what if the need to have a big percentage or whole amount of the settlement is present? Here is where structured settlement loan companies come in. They can loan you the whole or agreed amount for a fair price.

It follows that the process of acquiring these structured settlement loans may also be hassle-free, simple and a quick to understand process. In these circumstances, the reliability of the financial company is of crucial importance. It must be a company who is to be trusted, with a long history of happy and satisfied customers. Expert financial consultants would also be a great help especially to those who are new to the world of finance, so choose a company which offers guidance and live assistance from expert loan consultants.

Lastly, in acquiring structured settlement loans, it is important to understand the full terms of each agreement, either between you and the source of structured settlement and the financial company who will provide the loan.

How Can A Pre-Settlement Loan Help My Case?

A pre-settlement loan can help you to win your case. Its that simple. These loans are designed to provide you with the funds to win your case, assuming that your case has the merit to do so. Most commonly, they are used to help those that have been victims of personal injury to get the funds that they need to pay their doctor’s bills, to pay them restitution and simply to have the satisfaction of knowing that those at fault have been penalized. Most importantly, a pre-settlement loan can help you to fund your lawsuit from the beginning to the end, so that you don’t have to drop out when you no longer have the funds to fight your battle.

Pre-Settlement: The Benefits It Provides

The benefits you can get from pre-settlement loans are easy to see. You can have access to the funds that you need to fund your case. But, what else can it do? There are a number of things. Consider these benefits to using these types of loans.

· If you have medical bills or need help making payments for your everyday living expenses, a pre-settlement loan can help you to make these payments so that you don’t lose your home. It can help to keep your life on track while you can’t.

· You can secure the help of an attorney that is experienced in your type of case so that you have a better chance are winning your case and getting your settlement.

· You will be able to see your case through. Many people that file legitimate lawsuits end up falling short of actually completing the suit because they run out of money to fund it. You don’t have to worry about this risk.

· You don’t have to pay the funds back if you lose. If you invest your own money in the lawsuit, there is no way for you to pull those funds back even if you do win your case. But, if you use a pre-settlement loan, you don’t have to pay the funds back if you lose the case. That’s security in and of itself.

· You can get the justice that you and your family deserve without having to risk all that your family owns on the process. You can simply borrow the funds to make these necessary investments and walk away knowing that you got the very best settlement that you could.

There are many different lenders that are now offing lawsuit loans or pre-settlement funding. They each offer you a variety of options in how much you can borrow and what it takes to secure this loan. While it isn’t for everyone, especially those that are filing less than ideal cases, for those that have a legitimate case and know that they will get a settlement, it can be the most important thing that you do. Find out if you qualify for this type of funding and get your lawsuit underway knowing that you have the resources to make it happen.

Payday Loan Settlement

It gets really frustrating, doesn't it? Paying off your payday loans. You almost wish you didn't take the loan in the first place. Are you trapped in that vicious pay-loan cycle where you keep securing a loan just so you could pay off an existing one?

You took that loan and I bet you said to yourself, "I am going to pay this off next payday." But now, you're stuck with loans and you're paying off one loan with another loan. Unfortunately, there are a lot of people who find themselves in this situation. So, what do you do?

Things You Can Do

If it's too overwhelming, perhaps you can get some assistance in paying off your loans. I'm pretty sure if you're reading this that you need help to pay off your payday loans. Look for government representatives that would help you devise a way to pay off your loans. Also, look into your state laws. Perhaps, the state can help you payoff your loans. There are laws that would allow you to devise a payment scheme which you would be more comfortable with.

Pay Your Loan ASAP

If you take a payday loan, remember to pay that loan as soon as you possibly can. Avoid the "I'll pay the next time" attitude. This only gets you into more trouble with your loans. Pretty soon, you'd find yourself taking out more loans so you could pay the previous loans.

Payday Loan Settlement

It gets really frustrating, doesn't it? Paying off your payday loans. You almost wish you didn't take the loan in the first place. Are you trapped in that vicious pay-loan cycle where you keep securing a loan just so you could pay off an existing one?

You took that loan and I bet you said to yourself, "I am going to pay this off next payday." But now, you're stuck with loans and you're paying off one loan with another loan. Unfortunately, there are a lot of people who find themselves in this situation. So, what do you do?

Things You Can Do

If it's too overwhelming, perhaps you can get some assistance in paying off your loans. I'm pretty sure if you're reading this that you need help to pay off your payday loans. Look for government representatives that would help you devise a way to pay off your loans. Also, look into your state laws. Perhaps, the state can help you payoff your loans. There are laws that would allow you to devise a payment scheme which you would be more comfortable with.

Pay Your Loan ASAP

If you take a payday loan, remember to pay that loan as soon as you possibly can. Avoid the "I'll pay the next time" attitude. This only gets you into more trouble with your loans. Pretty soon, you'd find yourself taking out more loans so you could pay the previous loans.

Consider Other Options

If your finances are pretty stiff, consider other money-earning activities that you can do in order to help you pay off your loan. If you have no choice but to get a loan, borrow from friends or relatives - at least you could avoid the overwhelming interest you'd have to pay if you get another loan from banks or lending companies.

Insurance Settlement Loans

Insurance settlement loans are usually applicable in cases where a plaintiff is awaiting an insurance settlement for some personal injury or loss. For instance, in cases of natural disasters, organizations like the U.S. Small Business Administration award financial assistance to people whose property has been devastated.

Insurance claim procedures can be a drawn-out process, especially where an element of doubt or ambiguity exists about the claim. The recipient may have to wait several years before the claim actually materializes into hard cash. In such cases, loans to tide the claimant over are generally obtainable.

The term insurance settlement loan is sometimes associated with the practice of turning eventual life insurance settlements into real and present money. This is also known as life settlement – a practice where a financing company actually buys the death benefits of an insured person’s life insurance policy. Once this is done, the company pays all future premiums on the policy and eventually collects the death benefits. The full value of the life insurance will not be given to the beneficiary, however. This is because the only way that the insurance settlement company makes their money is by buying at a lower rate now but collecting big later. Both parties stand to benefit from this arrangement.

Other insurance policies pay a lump sum on maturity, such as retirement benefit policies. If the beneficiary does not, for any reason, wish to wait for this period to elapse, this policy may be eligible for a loan by a financial institution.

$20M Settlement OK'd for Chicago Torture

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By DEANNA BELLANDI – 21 hours ago

CHICAGO (AP) — Aldermen on Wednesday approved a nearly $20 million settlement with four former death-row inmates who claim they were tortured by Chicago police.

Some aldermen pushed for the settlement as a way to begin healing community relations with police after decades-old allegations of torture by former Lt. Jon Burge and officers under his command.

"It was a black eye on the city of Chicago and the people who live here — just terrible — so I hope it never happens again," said Alderman Ed Smith.

The settlement ends lawsuits by Leroy Orange, Stanley Howard, Aaron Patterson and Madison Hobley. All were pardoned in January 2003 by then-Gov. George Ryan when he commuted the sentences of every death row inmate in the state.

Special prosecutors last year released a report that said Burge led a group of officers that used beatings, electric shocks and other methods to get suspects, most of them black, to confess. Prosecutors have said they can't be charged because the statute of limitations expired.

Orange said the settlement money won't cure his mistrust of police or the anxieties and dreams he struggles with.

"I still think I'm gonna cringe and feel strange ... when I'm walking down the street and some policemen look at me and give me that look like they want to stop because I'm a African-American," he said after the City Council vote.

Burge was fired in the early 1990s after a police board said a murder suspect was abused while in custody. He has never been charged with any wrongdoing and now lives in Florida. An attorney for Burge has said he never tortured anyone.

Howard, who remained in prison on unrelated charges after he was pardoned, is to be paid $800,000, and his attorneys would get $1 million. The $19.8 million settlement also calls for Hobley to receive $7.5 million, Orange $5.5 million and Patterson $5 million.

Alderman Leslie Hairston apologized for their treatment and said that although the settlement brings closure to their cases, there are still problem police officers on the street.

"We still have many Jon Burges running around in each of our police departments, particularly in my neck of the woods," said Hairston, whose ward is on the South Side.

The City Council also voted to officially make former FBI agent Jody Weis the city's new police superintendent.

Weis has said he will strengthen training and work to bring public confidence back to the department. His predecessor, Phil Cline, announced his retirement last year amid allegations of excessive force, barroom brawls involving off-duty officers and a scandal in a disbanded gang and drug unit.

Court Declines Life Settlement Case

WASHINGTON — The Supreme Court declined Monday to rule on a case that tests whether states can regulate the sale of life insurance by policyholders to investors, a practice known as "viatical" or life settlements.

Under viatical settlements, individuals sell their life insurance policies for less than face value to third parties, including investors such as hedge funds, in order to realize an immediate cash benefit.

The policyholders are frequently terminally ill and need funds to pay for health care. The industry grew out of the AIDS crisis in the 1980s, but has since expanded beyond sick policyholders. An estimated $13 billion worth of life insurance policies were sold in life settlements in 2005, up from $5 million in 1989 and $200 million in 1998, according to court filings.

States began to regulate the practice in the early 1990s, due to concerns that terminally or chronically ill people are particularly vulnerable to unfairly low prices or fraud.

The case before the Supreme Court began when a Virginia resident lodged a complaint against a Texas-based company, Life Partners Inc., charging that the company paid her only 26 percent of the face value of her $115,000 policy. Virginia law required LPI to pay at least 60 percent to 70 percent, based on her life expectancy.

Life Partners sued to have the Virginia law declared an unconstitutional interference with interstate commerce. While state regulation of insurance is expressly allowed under federal law, Life Partners argued that they aren't in the insurance business, because viaticals are between policyholders and third parties.

Virginia officials responded that viaticals alter the parties to a life insurance policy, among other changes, and therefore are subject to state regulation. A federal district court judge agreed and rejected Life Partners' challenge. The 4th U.S. Circuit Court of Appeals, based in Richmond, Va. upheld that ruling.

The justices' refusal to take the case lets the appeals court's ruling stand.

The case is Life Partners Inc. v. Morrison, 07-261. Theodore Morrison is Commissioner of the Virginia State Corporation Commission.

Insurance Settlement Loans

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Insurance settlement loans are usually applicable in cases where a plaintiff is awaiting an insurance settlement for some personal injury or loss. For instance, in cases of natural disasters, organizations like the U.S. Small Business Administration award financial assistance to people whose property has been devastated.

Insurance claim procedures can be a drawn-out process, especially where an element of doubt or ambiguity exists about the claim. The recipient may have to wait several years before the claim actually materializes into hard cash. In such cases, loans to tide the claimant over are generally obtainable.

The term insurance settlement loan is sometimes associated with the practice of turning eventual life insurance settlements into real and present money. This is also known as life settlement – a practice where a financing company actually buys the death benefits of an insured person’s life insurance policy. Once this is done, the company pays all future premiums on the policy and eventually collects the death benefits. The full value of the life insurance will not be given to the beneficiary, however. This is because the only way that the insurance settlement company makes their money is by buying at a lower rate now but collecting big later. Both parties stand to benefit from this arrangement.

Other insurance policies pay a lump sum on maturity, such as retirement benefit policies. If the beneficiary does not, for any reason, wish to wait for this period to elapse, this policy may be eligible for a loan by a financial institution.

How Can A Pre-Settlement Loan Help My Case?

A pre-settlement loan can help you to win your case. Its that simple. These loans are designed to provide you with the funds to win your case, assuming that your case has the merit to do so. Most commonly, they are used to help those that have been victims of personal injury to get the funds that they need to pay their doctor’s bills, to pay them restitution and simply to have the satisfaction of knowing that those at fault have been penalized. Most importantly, a pre-settlement loan can help you to fund your lawsuit from the beginning to the end, so that you don’t have to drop out when you no longer have the funds to fight your battle.

Pre-Settlement: The Benefits It Provides

The benefits you can get from pre-settlement loans are easy to see. You can have access to the funds that you need to fund your case. But, what else can it do? There are a number of things. Consider these benefits to using these types of loans.

· If you have medical bills or need help making payments for your everyday living expenses, a pre-settlement loan can help you to make these payments so that you don’t lose your home. It can help to keep your life on track while you can’t.
· You can secure the help of an attorney that is experienced in your type of case so that you have a better chance are winning your case and getting your settlement.
· You will be able to see your case through. Many people that file legitimate lawsuits end up falling short of actually completing the suit because they run out of money to fund it. You don’t have to worry about this risk.
· You don’t have to pay the funds back if you lose. If you invest your own money in the lawsuit, there is no way for you to pull those funds back even if you do win your case. But, if you use a pre-settlement loan, you don’t have to pay the funds back if you lose the case. That’s security in and of itself.
· You can get the justice that you and your family deserve without having to risk all that your family owns on the process. You can simply borrow the funds to make these necessary investments and walk away knowing that you got the very best settlement that you could.

There are many different lenders that are now offing lawsuit loans or pre-settlement funding. They each offer you a variety of options in how much you can borrow and what it takes to secure this loan. While it isn’t for everyone, especially those that are filing less than ideal cases, for those that have a legitimate case and know that they will get a settlement, it can be the most important thing that you do. Find out if you qualify for this type of funding and get your lawsuit underway knowing that you have the resources to make it happen.

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Texas secures $15.7 million settlement against insurance firms

Texas Attorney General Greg Abbott has reached a settlement with two auto credit insurance companies his office claims did not provide required refunds to policyholders who had paid off their car loans in advance.

Under the terms of the settlement, more than 46,000 Texas vehicle owners who bought credit insurance from Service Life and Casualty Insurance Co. in Austin will receive refunds totaling $14.4 million from the company.

In addition, another 6,500 vehicle owners will receive $1.3 million in refunds from Old United Life Insurance Cos. in Mission, Kan.

Officials with Service Life and Old United could not immediately be reached for comment on the settlement.

The refunds apply to vehicle owners whose loans terminated between 2002 and 2006.

These policies were sold to cover vehicle payments in the event the borrower died or became disabled.

According to the Attorney General's Office, the companies' customers bought single-premium policies that were paid in a lump sum, usually when the customers bought the vehicles. The full cost of the credit insurance was then bundled into the buyer's vehicle loan, which in some cases was as long as six years.

Under state law, Service Life and Old United were obligated to refund unearned portions of the insurance premiums to those customers who paid off their loans ahead of schedule. However, the state claimed the companies never refunded the unearned portion.

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Bank to set up unsecured divorce-settlement loans

GIFU, Ogaki -- The Ogaki Kyoritsu Bank will from Monday begin providing unsecured loans to cover the costs incurred in divorce settlements, bank officials said.

It is reportedly the first time that a bank has designed a loan especially for divorces. The bank reportedly came up with the idea after receiving feedback from its customers.

The bank will provide loans of between 100,000 yen and 5 million yen to cover compensation payments, distribution of property and legal fees.

Officials said that in fiscal 2006, there were about 20,000 divorces across three prefectures in the Tokai region.

A legal office familiar with divorce cases said that it was normal for legal fees in divorces to reach several hundred thousand yen, and for compensation to average about 4 million yen. However, since there were no loans designed especially for divorce settlements until now, people without money had no option but to use card loans and other loans with high interest rates.

The bank's divorce loans will be open to customers aged between 20 and 65 who had an income during the previous fiscal year of 2 million yen or more. The maximum loan period will be seven years. It will be a floating-rate loan with 3.45 percent added to the short-term prime lending rate. As of Tuesday, the rate stood at 5.825 percent. (Mainichi)

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