- 27 -
- $819.27) x 4.5% = $819.27)). Of the conversion credit balance,
$9,037.03 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 second year ($19,025.33 x 47.5%).
The Neonatology Plan continued to pay the premiums on this
policy, net of the applicable experience refund, through 1996.
Effective October 15, 1996, Dr. Mall converted this policy to a
fully paid, individually owned C-group conversion UL policy in
the face amount of $71,102. At the time of conversion, the C-
group term policy’s conversion credit balance was $46,508.32, and
$44,182.90 of that amount ($46,508.32 x 95%) was transferred to
the C-group conversion UL policy for potential earning. Dr. Mall
will earn these credits in 120 equal monthly installments,
beginning October 1996. The conversion credit balance of
$46,508.32 equaled the amount referenced in Commonwealth’s table
of conversion credit values for the following variables: (1)
Business issued before February 1, 1993, (2) female, (3) issue
age 46, (4) duration of 4 years 7 months, and (5) $650,000 death
benefit.
3. Mr. Mall’s Commonwealth C-Group Term Policy
Effective March 15, 1992, Commonwealth issued a $500,000 C-
group term policy (certificate No. 6010423) on the life of Mr.
Mall, age 47. The first-year premium was $10,290, and the cost
of insuring Mr. Mall was $2,056.78. The Neonatology Plan paid
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