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1. Dr. Hirshkowitz’ Inter-American C-Group Term Policy
Effective December 31, 1990, Inter-American issued a $1
million C-group term policy (certificate No. 5076058) on the life
of Dr. Hirshkowitz, age 57. The first-year premium was $48,680,
and the cost of insuring Dr. Hirshkowitz for that year was
$9,475.15. The Lakewood Plan paid the first-year premium, and,
at the end of that year, the conversion credit balance was
$40,969.07 ($48,680 - $9,475.15 + $1,764.22); the $1,764.22 is
the interest of 4.5 percent earned on the conversion credit
balance (($40,969.07 - $1,764.22) x 4.5% = $1,764.22)). 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.
This policy lapsed on December 31, 1991.
2. Dr. Desai’s Inter-American C-Group Term Policy
Effective December 31, 1990, Inter-American issued a $1
million C-group term policy (certificate No. 5076059) on the life
of Dr. Desai, age 45. The first-year premium was $17,390, and
the cost of insuring Dr. Desai for that year was $3,419.48. The
Lakewood Plan paid the first-year premium, and, at the end of
that year, the conversion credit balance was $14,599.19 ($17,390
- $3,419.48 + $628.67); the $628.67 is the interest of 4.5
percent earned on the conversion credit balance (($14,599.19 -
$628.67) x 4.5% = $628.67)). None of the conversion credit
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