- 41 -
conversion UL policy, upon conversion thereto, because the C-
group term policy was in its second year ($4,865.74 x 47.5%).
The third-year premium, before any experience refund, was
$2,962.50. The policy was credited with an experience refund of
$66.69, and the Lakewood Plan paid the net premium of $2,895.81
($2,962.50 - $66.69). The cost of insuring Dr. Desai for the
third year was $665.36, and, at the end of that year, the
conversion credit balance was $7,485.21 ($4,865.74 + $2,962.50 -
$665.36 + $322.33); the $322.33 is the interest of 4.5 percent
earned on the conversion credit balance (($7,485.21 - $322.33) x
4.5% = $322.33)). Of the conversion credit balance, $6,755.40
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 ($7,485.21 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. Desai converted this policy to a
fully paid, individually owned C-group conversion UL policy in
the face amount of $22,916. At the time of conversion, the C-
group term policy’s conversion credit balance was $13,143.16, and
$12,486 of that amount ($13,143.16 x 95%) was transferred to the
C-group conversion UL policy for potential earning. Dr. Desai
will earn this amount in 120 equal monthly installments,
beginning October 1996. The conversion credit balance of $12,486
Page: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NextLast modified: May 25, 2011