Non-Qualified Assignment Solutions

What is a Non-Qualified Assignment?

MetLife offers structured settlement solutions for non-physical injury claims and lawsuits that are not eligible for tax-free treatment under IRC §104(a)(2) and do not qualify for IRC §130 Qualified Assignments. These solutions are designed to facilitate the transfer of a defendant’s/insurer’s periodic payment obligation in connection with resolving certain non-physical injury matters, while allowing claimants to receive payments over time in a tax efficient manner.

To meet these needs, MetLife provides two distinct Non-Qualified Assignment solutions, each constructed for different settlement scenarios.

The Traditional Non-Qualified Assignment (NQA)

The Non-Qualified Assignment (NQA) product is an annuity-based solution designed to accept the transfer of a defendant’s/insurer’s periodic payment obligation for certain non-physical injury cases.

Key Payment Characteristics of NQA

  • Subject to IRC 72(u)
  • Payments must:
    • Be immediate. Specifically, begin within one year from purchase
    • Be made in substantially equal amounts
    • Pay no less frequently than annually
  • Life-contingent payments are permitted

Introducing the Non-Qualified Assignment Flex Agreement (NQA-FA)

The Non-Qualified Assignment Flex Agreement (NQA-FA) expands MetLife’s Non-Qualified Assignment offering by utilizing a funding agreement rather than an annuity. This solution is suitable for cases that cannot meet the payment timing or structure requirements of a traditional NQA.

Key Payment Characteristics of NQA-FA

  • Not Subject to IRC 72(u)
  • Supports:
    • Deferred payment start dates (beyond one year from purchase)
    • Lump-sum payments
    • Annual increases and customized payment designs
  • Payments must be guaranteed1 and not life-contingent
  • May allow non-natural persons (e.g., businesses or corporations) as payees (requires home office approval)

Potential uses for both solutions

The NQA and the NQA-FA may be used to resolved non-physical injury matters including, but not limited to:

  • Employment Litigation
    • Wrongful Termination
    • Sexual Harassment
    • Discrimination
    • Mental Anguish
  • Construction defect
  • Contract Disputes
  • Punitive Damages
  • Environmental Claims
  • D&O and E&O claims
  • Attorney Fees associated with these types of cases

How to Choose the right solution:

Both options offer guaranteed1 payments and can spread out the tax oblication2 of a non physical injury claim

  • The Traditional NQA is best for use when payments must begin within one year or when an annuity is the desired funding vehicle.
  • The NQA-FA is the solution for claims where the settlement requires deferred payments, lump sums, or greater flexibility for benefits.

Our Advantage:

Simple and Easy

  • Our superior service makes it easier for you to do business
  • Settlement solutions tailored to meet claimant’s specific needs

Expertise

  • Work with our dedicated team of specialists
  • We have strong experience in navigating changing market conditions

Trustworthy

  • We are committed to the structured settlement market
  • Our Company’s financial strength is consistently rated highly by major rating agencies3