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Structured Settlements: The Department of Justice's Selection and Use of Annuity Brokers

GGD-00-45 Published: Feb 16, 2000. Publicly Released: Feb 16, 2000.
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Highlights

Pursuant to a congressional request, GAO provided information on the Department of Justice's (DOJ) policy and guidance for selecting structured settlement brokers, focusing on: (1) the policies and guidance for selecting structured settlement brokers used by DOJ and six selected agencies; and (2) a list of the structured settlement brokerage companies used by DOJ and the number of settlements awarded to each company since May 1997.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Justice The Attorney General of the United States should direct the Director of the Torts Branch responsible for Federal Tort Claims Act (FTCA) claims and litigation, Civil Division, to develop an adequate internal control to ensure that the reasons for selecting structured settlement brokers are always fully documented and readily available for examination.
Closed – Implemented
The Department of Justice has implemented this recommendation.
Department of Justice The Attorney General of the United States should direct the Director of the Torts Branch responsible for FTCA claims and litigation, Civil Division, to disseminate this guidance to federal agencies, including those in GAO's survey, responsible for handling structured settlement claims.
Closed – Implemented
The Department of Justice has implemented this recommendation.

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Justice and Law Enforcement
Claims settlementDamage claimsGovernment liability (legal)Internal controlsLitigationMalpractice (medical)TortsBrokerage industryFederal agenciesU.S. Army