How to Becoming a Structured Settlement Broker?What knowledge should i have?

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  • How to Becoming a Structured Settlement Broker?What knowledge should i have?


Answer #1 | 17/01 2014 11:48
There are certain requirements to become a Structured settlement Broker which you need to have experienced with. You may have heard the term structured settlements before, either from a friend or neighbor, or on late night television commercials claiming to help clients in need. A structured settlement is a guarantee-backed security, where a claimant has been paid for, usually, injuries caused by another party. In lieu of a court trail, the claimant agrees to accept a settlement, structured over an extended period of time, for collection of damages. When this process begins, it seems a difficult area to enter, as the field’s nuances are many and complicated. This is where a settlement broker comes in to play. What a Structured Settlement Broker Does A broker is hired, much as if contracting the services of a lawyer in a defense case, to act on the best behalf of the claimant. The broker is well-educated in the laws concerning structured payments, and has the contacts with insurance companies that will administer the funds. Brokers may have backgrounds in finance, economics, and civil law, but not necessarily. This field is open to anyone with the gumption and desire to such a career path. Salary of a Structured Settlement Broker Though there are instances where a broker will charge a set fee for their services, this is not often in their favor or theirs clients as at this point, the settlement amount is an unknown factor. Common practice is for the broker to receive a percentage of the settlement fee charged by the insurance company, paid for the originator of the settlement. For example, if a large store is paying a claimant for damages incurred while shopping in their store, the store is the one who pays the fees for brokering the deal. Broker percentages range from 6% to 40% of the initial fee. Simply, the size of the settlement calculates the size of the fee paid by the originator. So, if a settlement fee on a $250,000 settlement is 10%, meaning it is $25,000, a broker can earn between $1500 and $10,000 for their services. Certification States differentiate on requirements for certification, but in order to be hired by a firm to be a broker, certification is most definitely a requirement. Claimants prefer to have knowledgeable and professional members on their settlement team. One resource to determine what is required is the state insurance licensing board for the area a broker wishes to work in. Also, companies such as Condor International have in-house programs offered to their employees..
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