In a further testament to the safety and security of structured settlements for injury victims, Fitch Ratings has upgraded the financial strength rating of Aviva Life Insurance Company and Aviva Life & Annuity Company of New York to AA-. Combined with Aviva’s AM Best Rating of A+, the company now satisfies the “bright line test” under the Uniform Periodic Payment Of Judgments Act (UPPJA).
Aviva is a major issuer of structured settlement annuity contracts that fund structured settlement payment streams.
Encouraged by Congress since 1982, a structured settlement is a financial option in injury and death cases in which an injured plaintiff chooses to accept compensation through a series of guaranteed payments most often funded by a life insurance company annuity. Endorsed by numerous advocates for people with disabilities, structured settlement payments are tailored to meet victims’ living and medical needs.
“Structured settlements are the safest, most secure method available to compensate victims of injury and dependents in wrongful death cases,” said Henry Strong, president of the National Structured Settlement Trade Association (NSSTA). “This decision by Fitch is a reminder to injury and accident victims that they have an excellent alternative to lump sum settlements and the multiple problems that arise from them.”
Structured settlements written today are backed by contracts from the insurance industry’s most financially stable companies. Moreover, in contrast to income from lump sum payments which is taxable, the payments from a structured settlement annuity are completely exempt from federal and state income taxes and capital gains.
Headquartered in Washington, DC, the National Structured Settlements Trade Association (www.StructuredSettlement.info) is an organization of more than 600 members who provide structured settlements to resolve physical injury and workers compensation claims.