Structured Settlement Annuity Companies: Who Pays You, and What Changed in 2026
Reference Guide
If you receive monthly checks from an injury or workers’ compensation case, the money comes from a life insurance company, not from the defendant. Structured settlement annuity companies are those insurers. Two things made news in 2026: on July 1, Pacific Life took over the old Executive Life of New York payments from GABC, and factoring companies that buy payments drew national criticism. There is no class action settlement and no claim form.
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How a Structured Settlement Annuity Works
When a defendant agrees to pay you over time, it usually does not keep paying you itself. MetLife describes the standard chain: the defendant assigns its obligation to an assignment company, which buys an annuity from a life insurer, and the insurer then pays you directly under the annuity contract.
Federal tax law sets the rules. Under 26 U.S.C. Section 130, the payments in a qualified assignment must be fixed and determinable and cannot be accelerated, deferred, increased, or decreased by the recipient. The annuity must be issued by a company licensed as an insurer under state law and bought within 60 days of the assignment. The payments themselves are tax-free under Section 104(a)(2).
Case details
There is no class action against structured settlement annuity companies as a group. The best-known court matter is the liquidation of Executive Life Insurance Company of New York (ELNY) in the Supreme Court of the State of New York, County of Nassau. In December 2025, Guaranty Association Benefits Company (GABC) asked that court to approve an assumption reinsurance agreement with Pacific Life Insurance Company and Pacific Life & Annuity Company. The court approved it on April 20, 2026. The documents are posted on GABC’s sale page.
Selling payments is a separate court process. Every state and D.C. has a Structured Settlement Protection Act, and 26 U.S.C. Section 5891 taxes a buyer at 40 percent of the factoring discount unless a state court approves the transfer in advance as being in the payee’s best interest.
Status: No Settlement, One Big Transfer Completed
The concrete change: on July 1, 2026, Pacific Life assumed all of GABC’s remaining annuity obligations. GABC had paid over $1.1 billion to former ELNY payees from the liquidation through June 30, 2026. GABC states that benefit amounts did not change and payments continue without interruption.
Whose Payments Are Affected
Former ELNY / GABC payees: your payer has been Pacific Life since July 1, 2026. GABC’s FAQ says you do not need to do anything. The contact is still PO Box 4366, Clinton, IA 52733-4366, phone 800-421-8850. For 2026 you will get two 1099s: one from GABC for January 1 to June 30, and one from Pacific Life for July 1 to December 31.
Everyone else: your annuity issuer is named on your annuity contract or your settlement agreement. MetLife, for example, issues through Metropolitan Tower Life Insurance Company. Nothing changed for you in 2026 unless your insurer told you so in writing.
Thinking about selling payments? See what selling a structured settlement costs.
What You Can Expect to Be Paid
If an insurer fails, state guaranty associations step in, but only up to a state-set limit — often $100,000 for annuities and as high as $500,000 in some states. ELNY shows how that works: guaranty associations formed GABC to keep paying, and in 2026 the payments moved to Pacific Life without a benefit cut.
Selling payments usually brings far less than they are worth. NSSTA, the industry trade group for structured settlements, reports factoring discount rates from 16% to as high as 28%. It also cites reporting that South Carolina payees received an average of 25 cents on the dollar.
Structured Settlement Annuity Timeline
1982 — Congress Creates the Framework
Congress authorizes structured settlement annuities for injury, wrongful death and workers’ compensation cases. MetLife begins issuing them in 1983.
April 1991 — Executive Life Fails
Executive Life Insurance Company becomes insolvent. New York seizes its subsidiary ELNY and keeps the structured settlement business, which is later ordered into liquidation.
2013 — GABC Takes Over ELNY
Guaranty Association Benefits Company, formed by state guaranty associations, takes over ELNY’s assets and keeps paying former ELNY payees.
April 20, 2026 — Court Approves Transfer
The Nassau County liquidation court approves GABC’s assumption reinsurance agreement with Pacific Life, after a December 2025 petition.
May 29, 2026 — Factoring Under Scrutiny
After a Last Week Tonight segment on payment buyers, NSSTA and the National Consumers League publish a joint call for Maryland-style protections.
July 1, 2026 — Pacific Life Takes Over
Pacific Life assumes all remaining GABC annuity obligations with no change in benefits. As of October 2026, no class settlement exists.
Three Things to Watch For
Structured settlement payees are a known target. These are the traps that fit this situation:
“Structured settlement” calls and mailers offering cash
These usually come from factoring companies that want to buy your payments, not from your insurer. NSSTA reports aggressive marketing to people with cognitive injuries and repeat deals that drain a payment stream. No sale is valid without a court order, so take your time.
“Your annuity was sold — verify your account”
Former ELNY payees need to do nothing about the Pacific Life transfer. Benefits did not change. If someone asks for bank details or a fee, hang up and call Pacific Life at the number GABC published: 800-421-8850.
A quick hearing in a faraway court
NSSTA says factoring hearings have lasted as few as two to three minutes, sometimes far from the seller’s home. Maryland’s approvals fell from about 1,800 to six in a year after it required home-court hearings. Ask for your own lawyer before you sign.
Structured Settlement Annuity Companies — Questions People Ask
Short answers to the questions people ask most about this case.
What is a structured annuity?
Usually people mean a structured settlement annuity. It is an annuity a life insurer issues to fund the periodic payments a defendant agreed to make. The defendant hands the obligation to an assignment company, which buys the annuity, and the insurer pays you directly.
Which structured settlement annuity companies issue these contracts?
Life insurers licensed under state law, as 26 U.S.C. Section 130 requires. Examples include MetLife, through Metropolitan Tower Life Insurance Company, and Pacific Life. MetLife says it ranks first in structured settlement sales according to LIMRA data. That is the company’s own claim. Your contract names your issuer.
How long do structured settlements last?
As long as the schedule in your agreement says. That can mean a fixed number of years or lifetime payments; MetLife says guaranteed payments can last “for the rest of their lives.” Under federal law, you cannot speed up, delay, increase or reduce them on your own.
My payments came from Executive Life / GABC. What changed?
Only the payer. Since July 1, 2026, Pacific Life has been directly responsible for paying you. GABC says payment amounts did not change and payments continue without interruption. Use PO Box 4366, Clinton, IA 52733-4366 or 800-421-8850.
Why will I get two 1099 forms for 2026?
If you were a GABC payee, GABC issues a 1099 for payments made January 1 to June 30, 2026, and Pacific Life issues one for July 1 to December 31, 2026.
What happens if my annuity company goes under?
State guaranty associations step in up to a state limit — often $100,000 for annuities and up to $500,000 in some states. They are not government agencies. In ELNY’s case, GABC paid over $1.1 billion to former payees through June 30, 2026.
Is there a structured settlement class action I can join?
No. As of October 2026, there is no settlement, no fund and no claim form against structured settlement annuity companies. For settlements that are actually open, see our list of open class action settlements.
Can I sell my payments, and what does it cost?
Only with a state court’s approval. Federal law taxes the buyer at 40 percent of the discount unless a judge finds the sale is in your best interest. NSSTA says the tax exemption does not carry over to payments you sell. Compare with our page on selling structured settlement payments first.
About This Information
- Editorially Reviewed — Content reviewed for accuracy using published legal research, government data, and verified court records. See our methodology. Reviewed by Leonard Goldberg, Editor · Last updated
- $236 billion in real payouts analyzed · See what we found
This page is for general information only and is not legal advice. Lawsuit status, eligibility, and compensation can change. Settlement Insight is not a law firm and does not represent any party. Consult a licensed attorney about your specific situation.
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