MetLife Launches New Deferred Payment Option for Non-Physical Injury Claims

Key Terms

non-qualified assignment financial

A non-qualified assignment is the transfer of rights, benefits or securities that does not meet the legal or tax rules required for preferential treatment. For investors, that means the transfer will be taxed and reported as ordinary income or treated under standard rules rather than enjoying special tax breaks or regulatory exemptions. Think of it like passing along a coupon that no longer meets the store’s rules — you still get the item, but you lose the special price and have to pay full cost and follow normal paperwork.

funding agreement financial

A funding agreement is a written contract in which one party promises to provide money to another under specific terms — how much, when, what it can be used for, and what the provider gets in return (repayment, ownership, or other rights). Investors pay attention because it directly affects a company’s cash flow, ownership stakes and obligations; think of it as a household budget and loan combined that lays out when money arrives and what strings are attached.

annuity financial

A contract that converts a sum of money into a stream of regular payments over time, often used to guarantee income in retirement. Think of it like trading a lump sum for a steady paycheck: it matters to investors because it alters return potential, liquidity, fees and risk exposure—some annuities promise fixed payments while others vary with market performance—so they affect portfolio income planning and how quickly capital can be accessed.

structured settlements financial

Structured settlements are arrangements where a legal settlement is paid out as a series of scheduled payments instead of one lump sum, often to cover long-term needs like medical care or lost income. For investors, these payment streams can be bought and sold as predictable income assets—think of them like a rented-out annuity—so they matter for evaluating steady cash flow, credit risk of the payer, and potential resale value.

eeoc regulatory

The EEOC is the U.S. federal agency that enforces laws prohibiting workplace discrimination and harassment, acting like a referee who investigates complaints and ensures employers treat people fairly regardless of race, sex, age, disability, religion or similar traits. Its decisions and investigations matter to investors because violations can lead to costly fines, legal settlements, forced changes to hiring and pay practices, and reputational damage that can affect a company’s profits and stock value.

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NEW YORK--(BUSINESS WIRE)-- MetLife today announced the Non-Qualified Assignment Flex Agreement (NQA-FA), a new deferred payment solution designed to help attorneys and brokers resolve non-physical injury claims with more flexible settlement structures. The NQA-FA enables settlements to be paid over time, including through deferred start dates, lump sums and customized payment schedules aligned to client needs.

The NQA-FA utilizes a funding agreement rather than an annuity and gives attorneys and brokers greater control over how and when settlement payments are delivered across a broad range of non-physical injury cases. These include employment litigation, wrongful termination, discrimination, contract disputes, construction defects, property and environmental claims, liability policy buy-outs, punitive damages, and attorney fees. With approval, both individuals and businesses may be designated as payees.

Only a small percentage of employment litigation cases go to trial, with most resolved through a settlement. In fiscal year 2025, 88,201 workplace discrimination charges were filed with the U.S. Equal Employment Opportunity Commission (EEOC), flat from the prior year, but up 9% compared to fiscal year 2023¹. As settlement volumes increase, demand is growing for more adaptable structures that can address the complexity of modern cases.

“For many non-physical injury cases, payees increasingly call for delayed or customized payments that traditional structures don’t support,” said Bejan Shirvani, head of Structured Settlements at MetLife. “This funding agreement 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 claimants.”

Non-qualified assignments are commonly used to resolve claims that are not eligible for tax-free treatment under federal law by transferring payment obligations to an assignment company, allowing settlements to be paid over time. However, traditional structures are generally subject to Internal Revenue Code Section 72(u), which requires payments to begin within one year. The NQA-FA is not subject to these requirements, enabling deferred payments beyond one year and a broader range of designs that can align with future events or long-term financial needs.

The NQA-FA is available through MetLife Assignment Company, Inc. and issued by Metropolitan Tower Life Insurance Company.

About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.

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1 U.S. Equal Employment Opportunity Commission, EEOC Highlights Record-Breaking Results in Agency Reports, April 6, 2026

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611911869/en/

For Media:
Judi Mahaney
646-238-4655
jmahaney@metlife.com

Source: MetLife, Inc.