Spitzer Subpoenas The Hartford Over Annuities, Workers’ Comp

September 18, 2005

The Hartford Financial Services Group Inc. has received another subpoena from New York Attorney General Eliot Spitzer about variable annuity sales.

The subpoena, which the Hartford disclosed to the U.S. Securities and Exchange Commission in a filing last week, also seeks information about how it reports workers’ compensation premiums.

The Hartford disclosed in June that Spitzer subpoenaed the company about sales of variable annuities to senior citizens in New York.

The most recent demand for information seeks details about New Yorkers’ purchases of variable annuities under three possibilities: when money was withdrawn from a 401(k) savings plan or other tax-advantaged retirement savings plan to buy the annuity, annuity purchases made within such a plan and kept there and information about purchases of variable annuities later placed into 401(k) or other plans that receive favorable tax treatment.

Variable annuities are contracts combining life insurance and mutual funds that allow savings to build up tax-deferred. A 401(k) already allows tax deferral.

Joshua King, a spokesman for The Hartford, said the company is cooperating fully.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Was this article valuable?

Here are more articles you may enjoy.