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transferred at this time to the C-group conversion UL policy,
upon conversion thereto, because the C-group term policy was in
its first year. This policy lapsed on March 15, 1992.
2. Dr. Mall’s Commonwealth C-Group Term Policy
Effective March 15, 1992, Commonwealth issued a $650,000 C-
group term policy (certificate No. 6007725) on the life of Dr.
Mall, age 46. The first-year premium was $10,653.50, and the
cost of insuring Dr. Mall for that year was $1,764.60. The
Neonatology Plan paid the first-year premium, and, at the end of
that year, the conversion credit balance was $9,288.90
($10,653.50 - $1,764.60 + $400); the $400 is the interest of 4.5
percent earned on the conversion credit balance (($9,288.90 -
$400) x 4.5% = $400)). None of the conversion credit balance
could have been transferred at this time to the C-group
conversion UL policy, upon conversion thereto, because the C-
group term policy was in its first year.
The second-year premium, before any experience refund, was
$10,731.50. The policy was credited with an experience refund of
$106.08, and the Neonatology Plan paid the net premium of
$10,625.42 ($10,731.50 - $106.08). The cost of insuring Dr. Mall
for the second year was $1,814.34, and, at the end of that year,
the conversion credit balance was $19,025.33 ($9,288.90 +
$10,731.50 - $1,814.34 + $819.27); the $819.27 is the interest of
4.5 percent earned on the conversion credit balance (($19,025.33
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