- 39 -
- $1,798.22 + $855.83); the $855.86 is the interest of 4.5
percent earned on the conversion credit balance (($19,874.34 -
$855.83) x 4.5% = $855.83)). Of the conversion credit balance,
$17,935.59 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 third year ($19,874.34 x 90.25%).
The Lakewood Plan continued to pay the premiums on this
policy, net of the applicable experience refund, through 1996.
Effective October 31, 1996, Dr. Hirshkowitz converted this policy
to a fully paid, individually owned C-group conversion UL policy
in the face amount of $44,653. At the time of conversion, the
balance in the C-group term policy’s conversion credit account
was $35,400, and $33,630 of that amount ($35,400 x 95%) was
transferred to the C-group conversion UL policy for potential
earning. Mr. Hirshkowitz will earn these credits in 120 equal
monthly installments, beginning October 1996. The conversion
credit balance of $33,630 equaled the amount referenced in
Commonwealth’s table of conversion credit values for the
following variables: (1) Business issued before February 1,
1993, (2) male, (3) issue age 58, (4) duration of 5 years, and
(5) $150,000 death benefit.
Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 NextLast modified: May 25, 2011