Certified Structured Settlement Consultant (CSSC)

What does 'cost of the annuity' represent in structured settlement negotiations?

The total of all future periodic payments The present-value premium the defendant or insurer pays to the life company to fund the payment stream The claimant's attorney fees The face value of the policy

Correct Answer:

The present-value premium the defendant or insurer pays to the life company to fund the payment stream

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