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the first-year premium, and, at the end of that year, the
conversion credit balance was $8,603.71 ($10,290 - $2,056.78 +
$370.49); the $370.49 is the interest of 4.5 percent earned on
the conversion credit balance (($8,603.71 - $370.49) x 4.5% =
$370.49)). 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
$10,530. The policy was credited with an experience refund of
$98.25, and the Neonatology Plan paid the net premium of
$10,431.75 ($10,530 - $98.25). The cost of insuring Mr. Mall for
the second year was $2,250.45, and, at the end of that year, the
conversion credit balance was $17,643.01 ($8,603.71 + $10,530 -
$2,250.45 + $759.75); the $759.75 is the interest of 4.5 percent
earned on the conversion credit balance (($17,643.01 - $759.75) x
4.5% = $759.75)). Of the conversion credit balance, $8,380.43
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 ($17,643.01 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, Mr. Mall converted this policy to a
fully paid, individually owned C-group conversion UL policy in
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