John Hancock Policyholders Due For Relief

Washington residents who purchased life insurance policies from John Hancock Insurance Co. between 1979 and 1996 are besieging a state hotline for information on a settlement that could compensate them for abusive sales practices.

Insurance Commissioner Deborah Senn said 27,397 policyholders face a June 30 deadline for returning an “election form” that indicates how they want to resolve their claim.

They could receive low-interest loans to cover premium expenses, or enhanced-value annuities or mutual funds depending on the relief they choose and their ability to substantiate claims the nature of their policy was misrepresented.

“It can be complicated to decide which of these avenues is appropriate,” Senn said. “That’s why policyholders should call our hotline and make sure they fully understand their options.”

There are two numbers:

1-800-705-8796 is answered by members of the commissioner’s staff.

1-800-964-3078 is answered by John Hancock representatives.

Annuity sales up 10 percent

Sales of variable annuities rose 10 percent in the first quarter in the U.S., and are on track to gain 10 to 15 percent for the whole year, according to a group that tracks industry.

Sales rose to $22.75 billion from $20.63 billion a year earlier, although they were down from the record $23.54 billion posted in the fourth quarter of 1997, the Variable Annuity Research and Data Service said.

Variable annuity sales have grown to record levels in recent years. The retirement plans, which offer mutual funds packaged in insurance policies and let savers defer taxes, have been bolstered by the booming stock markets and a growing interest among Baby Boomers to save for retirement.

“This is a continuation of the rising amount of money that individuals are putting away” for retirement, said R.H. Carey, editor of the VARDS Report, which is published by the group.

Carey said the growth is expected to continue this year as long as the stock market doesn’t crash. In 1997, variable annuity sales rose 18 percent to $87.72 billion, a record.

‘Pay Yourself’ kit offered

As part of a campaign to get people to save more money, mutual-fund giant Fidelity Investments, of Boston, has published a “National Pay Yourself Day” education kit.

The kit includes a retirement planning guide as well as a comprehensive list of examples that show how you may cut back in some areas so you can save more money.

For your free copy of the kit, call 1-800-343-3548 any time. Your request won’t result in any follow-up calls or mailings, said Fidelity spokeswoman Leslie Bonnyman.

Stocks for nervous investors

If you’re worried about the stock market these days (and who wouldn’t be, based on the breathless news reports), then check out these “low-risk stocks for nervous investors,” as selected by Dow Theory Forecasts (219-931-6480), a sensible newsletter I have long admired.

The stocks: agricultural equipment maker Deere & Co. (symbol: DE), with a price-to-earnings ratio, based on projected profits for 1998, of just 13; Harris Corp. (HRS), with a broad range of electronics, including digital-TV technology, at a P/E of 17; and Honeywell Inc. (HON), automation and control systems, at a P/E of 21 but with strong earnings growth, especially in its space and aviation divisions.