MetLife announced a new product called the Non‑Qualified Assignment Flex Agreement (NQA‑FA), a deferred‑payment solution specifically crafted for attorneys and brokers who manage non‑physical injury claims. Unlike traditional settlement mechanisms that often require lump‑sum or short‑term payouts, the NQA‑FA lets claimants spread settlement proceeds over an extended period, choose when payments begin, and even receive lump‑sum disbursements when appropriate. By offering this flexibility, MetLife aims to address the growing demand from plaintiffs and their counsel for settlement structures that can be tailored to long‑term financial goals, cash‑flow considerations, and the timing of related events. The agreement is delivered through MetLife Assignment Company, Inc. and issued by Metropolitan Tower Life Insurance Company, positioning it within MetLife’s broader suite of structured‑settlement tools while remaining distinct from annuity products.
MetLife Launches the Non‑Qualified Assignment Flex Agreement
The NQA‑FA is a funding agreement—not an annuity—offered through MetLife Assignment Company, Inc. and issued by Metropolitan Tower Life Insurance Company. It enables settlements to be paid over time, with options for deferred start dates, lump sums, and tailored payment schedules. The agreement applies to a broad range of non‑physical injury cases, including employment litigation, wrongful termination, discrimination, contract disputes, construction defects, property and environmental claims, liability policy buy‑outs, punitive damages, and attorney fees. Both individuals and businesses may be designated as payees.
Settlement Landscape Drives Need for Flexible Structures
Employment litigation rarely proceeds to trial; most cases settle. In fiscal year 2025, the U.S. Equal Employment Opportunity Commission (EEOC) received 88,201 workplace discrimination charges, flat from the prior year but 9 % higher than fiscal year 2023. As settlement volumes rise, claimants increasingly request delayed or customized payment terms that traditional structures cannot accommodate. This trend reflects a broader shift toward more sophisticated financial planning in personal injury and employment disputes, where plaintiffs may prefer income streams that align with retirement planning, tax considerations, or future liabilities. MetLife’s NQA‑FA directly responds to these market pressures by allowing payment schedules to be aligned with the claimant’s long‑term financial strategy rather than being constrained by a one‑year start rule.
Features and Regulatory Position of the NQA‑FA
Non‑qualified assignments transfer payment obligations to an assignment company, allowing settlements to be paid over time but typically subject to Internal Revenue Code § 72(u), which mandates payments begin within one year. The NQA‑FA is expressly not subject to § 72(u), permitting deferred payments beyond one year and more varied designs aligned with future events or long‑term financial needs. Bejan Shirvani, head of Structured Settlements at MetLife, said the solution “expands the tools available to attorneys and brokers by combining greater flexibility in payment timing and structure with the strength of MetLife’s guarantees, helping support long‑term financial security for claimees.”
Key Takeaways
- MetLife’s NQA‑FA is a funding agreement that allows settlements to be paid over time with flexible start dates, lump sums, or customized schedules.
- The product covers a wide array of non‑physical injury claims, from employment discrimination to construction defects, and can name individuals or businesses as payees.
- Unlike traditional non‑qualified assignments, the NQA‑FA is not bound by Internal Revenue Code § 72(u), enabling payment structures that extend beyond one year.
FinanceInsyte's Take
The NQA‑FA gives legal and brokerage firms a new tool for structuring complex settlements without the one‑year payment trigger of existing tax‑code rules. While the product broadens design options, its impact will depend on how quickly practitioners adopt the agreement and whether regulators view the deferred structure as compliant. Buyers should monitor early usage patterns and any guidance from tax authorities that could affect the agreement’s tax treatment.
Source: Businesswire
