(AT VARIOUS POINTS IN THE PROGRAM DESCRIPTIONS, THERE ARE REFERENCES TO STRUCTURE ELEMENTS. THEY ARE FUTURE AWARD ELEMENTS AND LUMP SUM PAYMENT TO BE MADE ON A CERTAIN FUTURE DATES, OR STREAMS OF PERIODIC PAYMENTS TO BE MADE OVER TIME.)

[As the programs are Activex.vbd, they are temporarily downloaded to operate on the user's computer. In this way, none of the case information is passed to the internet, and the security level is the same as that provided by the user's computer. In addition, the programs are signed to assure their integrity. The security certificate is issued by COMODO. To access any of the programs, adjust security for all to either enable or prompt the various Activex options except unsigned. The user can choose to apply these adjustments to trusted sites or across the board. When first accessing a program, the system will advise the user that downloading can pose risks. 'Click' to continue and to 'Install'. This may result in a top banner, continuing the warning. 'Click' through that item, and a blue form will appear. Click 'Clear' and continue on. ]  ] 

THE STANDARD EVALUATOR

The Standard Evaluator was designed to give the user a broad selection of alternatives. The user can

1. Develop or evaluate a structured settlement for one to five beneficiaries.

2. Use the single discount rate provided, use the weighted average of the complex rates which are also provided, or enter a rate of a user’s choosing

3. Use the fee rate provided or enter a rate of the user’s choosing.

4. Select from among the different structure ELEMENTS.

5. Provide the total settlement amount and show amount available for structuring after each element is entered. In the alternative, the user can construct a settlement amount from the structure elements by leaving the total amount blank, by providing the contingency fee or fee rate, costs and expenses, and/or front-end payments. (If the costs and expenses or the front-end payments are left blank, they are treated as -0-)

6. The user can specify either the Attorneys’ contingent fee rate or the fee amount. (The assumption is that the fee rate applies to the gross settlement.)

If the user chooses to let the system calculate the total settlement amount from the elements, the Net Funds to be Structured and Funds Structured boxes will remain blank. If the total settlement is entered, The Net Funds to be Structured and the Funds Structured boxes will reflect the impact of each component, as it is applied to the Detail. They will show how much of the funding has been allocated to the ELEMENTS of the structure and how much remains to be allocated.

The calculation of the ELEMENT value merely displays that value without affecting any of the totals or other displays. If an error is made or the entry needs to be changed, the entry can be erased without any impact by pressing the Clear before activating Add to Detail.

The Detail provides information about each transaction, as well as a summarization by beneficiary/claimant. The user can scroll across the listing to see information on the number of payments, the weighted discount rates or the total amounts to be paid. The user can more easily swap those items into the workspace by using the Show Amounts or Show # of Payments buttons.

By activating the Sort button, the transactions are generally sorted by beneficiary, by type and then by date.

POINT OF CAUTION: If Show Amounts or Show # of Payments is employed, click the button a second time to return to the original view before processing additional elements. 

THE COMPARATIVE EVALUATOR

The Comparative Evaluator is an extended Standard Evaluation on which the user can compare up to three different structure proposals against an original summary. If the user leaves any of the Proposal Identification blocks blank, that column will be ignored.

The form was designed to give the user a broad selection of alternatives. The user can

1. Develop or evaluate a structured settlement for one to five beneficiaries.

2. Use the single discount rate provided, the weighted average of the complex rates which are also provided, or enter a rate of a user’s choosing.

3. Use the fee rate provided or enter a rate of the user’s choosing

4. Select among the various structure elements.

5. Specify either the Attorneys’ contingent fee rate or the fee amount. (The assumption is that the fee rate applies to the gross settlement.)

6. Specify a different broker fee rate for each proposal or leave it blank, in which case the preset fee rate will be used. If any of the broker fee boxes are left blank, the program will display and employ the 6% rate provided.  

Most importantly, The user can enter the total settlement, fees, expenses and front-end payments in the Original Proposal column and then enter and calculate the value of the ELEMENTS of that Original Proposal as the first alternative. If the expenses, and front-end payments are left blank for the first alternative, the amounts as recorded on the original proposal will be used. The contingency fee will be calculated as each ELEMENT is added to the total. the result will be a direct comparison of the value provided by the broker and the value calculated by the sum of the value of the ELEMENTS. Whenever the expenses or front-end payments on any alternative are left blank the will employ those provided in the Original Proposal.  

The calculation of the structure ELEMENT merely displays the value without affecting any of the totals or other displays. If an error is made or the entry needs to be changed, the entry can be erased without any impact by pressing the Clear before activating the Add to Detail.

The Detail provides information about each transaction, as well as a summarization by beneficiary/claimant. The user can scroll across the listing to see information on the number of payments, the weighted discount rates or the total amounts to be paid. The user can more easily swap those items into the workspace by using the Show Amounts or Show # of Payments. By activating the Sort button, the transactions are generally sorted by beneficiary, by type and then by date.

THERE IS ONE POINT OF CAUTION: If you look at Total Amounts to read or print, click the button a second time to return the columns to their original position before continuing. The same is true for Number of Payments. This becomes critical if you process further transaction.

INTERNAL RATE OF RETURN

The Internal Rate of Return module will calculate the Structured Settlement provider's Internal Rate of Return for up to eight Structured Settlement ELEMENTS ( 3 lump sum and 5 periodic payment streams). A value can be entered for each element, for each group of elements or for the entire structure. In the former case, the item internal rate of return is estimated. In the latter two situations, an average Internal Rate of Return is derived.   

BUYOUT

The Buyout calculates an  after market purchaser's internal rate of return (IRR) based upon the payments surrendered and the amount offered in return. The module will deal with the sale of up to three lump sum payment ELEMENTS and five periodic payment ELEMENTS. The user can specify the total amount offered for all ELEMENTS, the total amount offered for lump sum ELEMENTS and for periodic payment ELEMENTS, or the amount offered for each ELEMENT. The program calculates individual internal rates of return and then calculates the value for each ELEMENT based on a current market rate. Finally, it determines the difference between the amount offered and the current market value. Generally, there is limited interest in future lump sum payments, and no interest in life contingent payments beyond any payments that are guaranteed. The system deals with COLA adjustments but assumes that the current periodic payment amount is effective for one year from the date of purchase and adjusted thereafter. This may produce a slight distortion in the internal rate of return, and if subscribers find occurrence causing problems, a further adjustment will be made to the programs. 

USER INSTRUCTIONS

The starting point is always the Clear Form Button and the ending point is the Exit Button. The rest of the buttons either apply data, clear parts of the form for further use or transfer data to other forms. Not all of the buttons appear on all of the forms, but, where they appear, they have the same functions.

Clear Form Button � Clears the form and applies certain preset data.

The user can select a specific discount rate by entering it in the box provided,  variable rates by checking the small box as indicated ( place the cursor on the description and click, a check will appear in the box), or leave both blank and use the single rate provided. The user can select a fee rate (load) by entering it in the box provided or leave it blank and use the rate provided. 

Apply Family and Settlement Summary or Proposal Data (Standard and Comparative) � sets up beneficiary/claimant data, applies the settlement or proposal information that is provided and adds other preset information. If a mistake occurs at this stage, use the Clear Form button and reenter all of the information to insure operation.

Verify Data (IRR and Buyback) - sets up and verifies the input from the user before the calculation can take place.

Calculate Value � Performs the structured element calculation. If the user wishes to change the input, use the Clear Button at the bottom of the form, and enter the new data. The calculated value is not shown in other information locations until Add to Detail is used.

Add to Detail � Transfers the transaction information to the Beneficiary data in the Settlement Summary and to a separate detail page. It also clears the Calculate Section for further transactions.

Show Detail � Does just that, shows the detail. If the user activates the Show before the Add, the detail will not reflect the transaction shown on the form

Apply Data � Because of certain idiosyncrasies of the web, the passing of information from page to page requires an action. Whenever, the user accesses the detail page, activating this button transfers accumulated information to the detail. Each time the Apply Data Button is activated, the detail is updated for transactions processed since the last time the detail was viewed.

After Apply Data The Detail page shows value information for each structure element. That includes the imputed value of that part of the element that is contingent on survival which is calculated by subtracting the value of the guaranteed portion from the total value. Both parts reflect the value of any Cost of Living Allowance (COLA) built into the element.

Show Payment Amounts � Displays the total amount of the payments that will be made for that element and a breakdown between guaranteed and contingent, where appropriate. The contingent or expected amounts are determined by subtracting the guaranteed payment amounts from the expected total amounts.

Show Number of Payments and Discount Rates � Displays the number of guaranteed and contingent payments, as appropriate, and the effective discount rate used for that element. It varies only when complex rates and longer structures are employed.

(For Life Contingent Lump Sum and Temporary Payments, numbers appear only in the contingent and total columns.)

Sort Summary � Will sort the elements by beneficiary or proposal. It is not necessary to enter each transaction in order. By pressing the Sort button, the transactions will be sorted in the general order of proposal, beneficiary, type of payment and then date of first payment.

OpenFile/Save File � Allows the user the opportunity to save the elements to a file on the user�s computer and to retrieve that file later. This file is the only record of the transactions, resides only with the user. This capability has been restricted to save space and increase speed, as rebuilding a structure takes only a few minutes. Experience shows that more extensive saving capability produces many files, out-of-date information and considerable confusion.

Print (____, Form, Sheet) � Prints the form as it then appears on the screen, including all data that is shown. If the components of the structure extend beyond the items shown on the screen, it may be necessary to scroll down until the remaining items are shown, and activate the Print a second time to print all of the material.

The program should automatically access the default printer, if attached.

Exit � Returns the user to either the primary form or our Home Page.

FORM NAVIGATION. (How do I go to the next step?) The forms can be navigated by using the tab key and (shift) tab key. Tabbing will move the solid vertical line (|) to the next entry point when the tab key is depressed. When a command button is next, a dotted rectangle will appear on it. If an entry point is inadvertently skipped, holding down the shift key while operating the Tab key will cause the cursor to move in the reverse direction. As always, the mouse point and click can be used to navigate the page to the various entry points.

The tabbing sequence includes all boxes in which data can be entered, even if data is not required or there are alternate choices. For example,

The system requires data for only one beneficiary, but tabs to all entry points. The common family name and overall total settlement are optional, but are in the tab sequence. For Attorney fee calculations, the tab moves from the percentage box to the amount box. Only one entry is needed, the other is calculated. There is no need to enter any amount for liens, liabilities and encumbrances, nor to enter any advances or front-end payments.

DATA ENTRY. The rules on entering the six types of data are listed below. After data has been placed in the box, it is entered by tabbing to the next entry point, depressing the enter key on the user's keyboard or by moving the mouse to another space and clicking it. Commands (buttons) are entered by placing the mouse indicator over the button and clicking it, or by hitting the space bar when the command is highlighted by the rectangle.

There are only six types of data input, and they are

Dates: mm/dd/yyyy - months, days and years as numbers (e.g. 02/15/1999)

Rates: .#### - decimal point followed by numbers (e.g. .0544 for 5.44%)

Amounts: ######## - straight whole number entries without commas or $ signs (e.g. 2500000 for $2,500,000.)

Letters: m/f, for male or female; m,q,s,a for the for payment schedules. In either case, upper or lower does not matter. The payment symbols are m for monthly, q for quarterly, s for semiannual and a for annual.

Names: Beneficiaries/Claimants. Provision is made for a family name, if common to all. Otherwise, the full names can be entered in the individual spaces. Information must be provided for at least one beneficiary, but any set of letters can be entered for the name. If nothing appears in the individual name blank, that column is ignored.

        List Selection: Premium Tax State

                                : Beneficiary or Claimant for Structure Item

                                : Life Expectancy (for appropriate structure items)

(There are a few jurisdictions that tax premiums paid for annuities. Those taxes are normally incorporated in any annuity proposal to increase the value of the proposal. The list is not meant to be authoritative or exhaustive. If the user�s state or commonwealth has enacted a tax or new rate, please advise Burbank.)

Premium Tax has been preset to "No Premium Tax", Life Expectancy has been preset to "Normal" and the beneficiary selection has been set to the first beneficiary, as indicated by the blue highlights. To make a different selection, click on the arrows associated with the item until the desired choice appears.  Then click on the choice or hit the enter to select the item. ( It will appear in blue

 

Copyright � 1997-2008 The Burbank Group
Last modified: January 9, 2008