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POWER OF ATTORNEY (POA) INDICATES THE BRANCH OFFICE MISINFORMED/MISHANDLED THE REQUEST PROVIDED BY THE CLIENT/POA, WHICH CAUSED THE LIQUIDATION OF THE CLIENT'S HARTFORD ANNUITY AND LOSS OF DEATH BENEFIT.
Damage Amount Requested
$5,000.00
Settlement Amount
$4,178.15
Broker Comment
PARTIAL LIQUIDATIONS WERE COMPLETED ON TWO ANNUITY CONTRACTS TO THE MINIMUM CONTRACT VALUE TO ALLOW FOR A "LOCK IN" OF DEATH BENEFIT FOR BOTH CONTRACTS. DUE TO A MARKET DECLINE PRIOR TO MOVING THE ANNUITY ASSETS TO THE FIXED SUB-ACCOUNT, THE CONTRACTS FELL BELOWTHE MINIMUM ALLOWED AND WERE FULLY LIQUIDATED BY THE ANNUITY COMPANIES. THIS CAUSED A LOSS OF DEATH BENEFIT FOR BOTH ANNUITY
CONTRACTS. THE CLIENT WAS OFFERED AND ACCEPTED $4,178.15 TO RESOLVE THEIR CONCERNS REGARDING THE LOSS OF DEATH BENEFIT.
9/12/2002
Customer Dispute
Denied
Allegations
CLIENT PURCHASED $157,000 ANNUITY IN SEPTEMBER 2000. CLIENT HAS WITHDRAWN OVER $45,000 AND THE ANNUITY VALUE IS APPROXIMATELY $91,000 AT THE TIME OF THE COMPLAINT. CLIENT STATES THIS ACCOUNT WAS PUT INTO A FIXED RATE PLAN WITHOUT HIS KNOWLEDGE. CLIENT WOULD LIKE THE BALANCE OF THE MONEY AVAILABLE FOR THE NEW IR TO INVEST. LOSSES EXCEED $5,000.
Damage Amount Requested
$5,000.00
Broker Comment
THE IRS IN THIS OFFICE INDICATED THAT THEY WERE BOTH ON THE TELEPHONE WITH CUSTOMER, WHEN IT WAS SUGGESTED THAT HE MAY WANT TO MOVE THESE FUNDS TO THE FIXED ACCOUNT. MR. ESPY ADVISED CUSTOMER THAT HE COULD ONLY MOVE 30% PER YEAR BACK INTO THE SUB ACCOUNTS FROM THE FIXED ACCOUNT. IT IS MY UNDERSTANDING, THAT CUSTOMER WAS ALSO ADVISED THAT HE WANTED TO MOVE MORE THAN THAT, THAT HE COULD DOLLAR COST AVERAGE (DCA) THE FUNDS OUT OVER A PERIOD FROM 3-12 MONTHS. THE CLAIM FOR REIMBURSEMENT OF HIS LOSSES WAS DENIED.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.