Hartford CRC annuities that are not honored

[morty]

Has any one had a problem with the Hartford CRC annuity contracts?

I have two 10 year ones that they are arbitraily changing to lower rates and has jeopardized our retirement.

 

[anteater]

A fixed annuity typically guarantees an interest rate for some period of time. Do you mean that the interest rate is being revised during the guarantee period?

From the Hartford CRC Select contract:

A Guarantee Period is the length of time you select for which
Hartford guarantees to pay you interest. The interest rate we
credit depends on the Guarantee Period you select. We currently
offer Guarantee Periods of five years, six years, seven
years, eight years, nine years and ten years.

What happens at the end of each Guarantee Period?
We will notify you of your options before the end of your
Guarantee Period. These options currently include:

" Fully Surrendering your Contract,
" Having your Contract Value rollover to a Subsequent Guarantee
Period of the same length of time,
" Transferring to a Guarantee Period of a different duration,
" Asking us to begin making Annuity Payouts,
" Purchasing a variable annuity issued by Hartford, or
" Any other option that may become available.

Unless we receive written instructions from you selecting
a different option, Hartford will roll your Contract Value
into a Subsequent Guarantee Period for the same length
of time. Your Contract will receive the interest rate we
have established for that new Guarantee Period.

 

[morty]

Problems with Hartford Life CRC contracts

The (2) 10 year CRC (Compound Rate Contracts0 were purchased in August of 1999. Page 3-a of the contract titled "Certificate Specifications" spelled out the funds that we would be entitled to by year completed. In August of 2003, The Hartford sent us a letter saying they made a mistake on the contrats and that they were changing the "Certification Specifications" page 3-a of the contract.

Hartford has not been true to their commitment and has jeopardized our retirement.

Morty

 

[ErinGoBragh]

The (2) 10 year CRC (Compound Rate Contracts0 were purchased in August of 1999. Page 3-a of the contract titled "Certificate Specifications" spelled out the funds that we would be entitled to by year completed. In August of 2003, The Hartford sent us a letter saying they made a mistake on the contrats and that they were changing the "Certification Specifications" page 3-a of the contract.

Hartford has not been true to their commitment and has jeopardized our retirement

Morty

I know that if this happened in the company I work for, they would not be changing it. I would start by contacting the Hartford directly and asking them where they think they get off changing the terms of a contract almost 10 years after the fact.

 

[anteater]

The (2) 10 year CRC (Compound Rate Contracts0 were purchased in August of 1999. Page 3-a of the contract titled "Certificate Specifications" spelled out the funds that we would be entitled to by year completed. In August of 2003, The Hartford sent us a letter saying they made a mistake on the contrats and that they were changing the "Certification Specifications" page 3-a of the contract.

Hartford has not been true to their commitment and has jeopardized our retirement.

Morty

You were advised about this over 5 years ago?

Whatever.....

 

[ErinGoBragh]

You were advised about this over 5 years ago?

Whatever.....

Missed that part.

Nevermind, I revoke my previous advice. You're stuck; you missed the boat so to speak.

 

[morty]

Problems with Hartford Life CRC contracts

Contract were not breached until October 28, 2008, when they were fully surrender and short thousands of dolars

 

[ErinGoBragh]

Contract were not breached until October 28, 2008, when they were fully surrender and short thousands of dolars

Doesn't matter. At this point you have no recourse. So it's your loss.

 

[cingleman]

Hartford CRC

Hartford CRC products automatically renew at a lower rate if the annuity owner - you - fails to direct Hartford to transfer the funds to another product or to return the funds. Hartford provides a window of opportunity for you to make that election. It is important to time your notification so that Hartford receives it in a timely fashion that will allow you to avoid surrender charges. CRC is a fixed annuity that provides tax deferral. As a result there can be tax consequences associated with a return of funds. I advise that you consult your broker.

 

[cingleman]

additional thought

The 1 time I know of Hartford admitting to a CRC error is when the company accepted a CRC contract that had a maturity date beyond the legal age allowed. CRC contracts require a maturity date prior to the investor turning 91. If that is what happened in your case, Hartford may be willing to issue a full return of funds or even honor the rate you expected and lift the early surrender policy. The best thing is to have your broker call the service desk at Planco (800) 523 7798. It is generally more effective to work through Planco than to call Hartford directly. Planco is Hartford's wholly owned distribution subsidiary.