Neonatology Associates, P.A., et al - Page 37




                                               - 37 -                                                  
            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.                                                                         
                  3.  Dr. Sobo’s Inter-American C-Group Term Policy                                    
                  Effective December 31, 1990, Inter-American issued a $1                              
            million C-group term policy (certificate No. 5076057) on the life                          
            of Dr. Sobo, age 38.  The first-year premium was $10,800, and the                          
            cost of insuring Dr. Sobo for that year was $2,374.08.  The                                
            Lakewood Plan paid the first-year premium, and, at the end of                              
            that year, the conversion credit balance was $8,805.09 ($10,800 -                          
            $2,374.08 + $379.17); the $379.17 is the interest of 4.5 percent                           
            earned on the conversion credit balance (($8,805.09 - $379.17) x                           
            4.5% = $379.17)).  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.                           
                  4.  Dr. Hirshkowitz’ Commonwealth C-Group Term Policy                                
                  Effective October 31, 1991, Commonwealth issued a $150,000                           
            C-group term policy (certificate No. 6000972) on the life of Dr.                           
            Hirshkowitz, age 58.  The first-year premium was $7,540.50, and                            
            the cost of insuring Dr. Hirshkowitz for that year was $1,572.75.                          
            The Lakewood Plan paid the first-year premium, and, at the end of                          
            that year, the conversion credit balance was $6,236.30 ($7,540.50                          






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