How do structured settlement annuities work?

Structured settlement annuities are complex products, paid out to injured parties in lieu of one large lump sum. They are unique in that the the payee never owns the annuity; the defendant’s insurance company does. In the case of a catastrophe like ELNY, the payee’s ability to continue receiving payments is determined by the type of annuity the insurance company has purchased. The case study below illustrates the many variables involved.