- 45 -
$74,739 of that amount ($78,672.63 x 95%) was transferred to the
C-group conversion UL policy for potential earning. Dr. McManus
will earn these credits in 120 equal monthly installments,
beginning October 1996. The conversion credit balance of $74,739
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
34, (4) duration of 5 years, and (5) $2.1 million death benefit.
8. Dr. Hirshkowitz’ Commonwealth C-Group Term Policy
Effective December 31, 1991, Commonwealth issued a $1
million C-group term policy (certificate No. 6004482) on the life
of Dr. Hirshkowitz, age 58. The premium for the 10-month period
from December 31, 1991, through October 30, 1992, was $41,891.67,
and the cost of insuring Dr. Hirshkowitz for the 10-month period
was $8,814.60. The Lakewood Plan paid the 10-month premium, and,
at the end of that 10-month period, the conversion credit balance
was $34,317.46 ($41,891.67 - $8,814.60 + $1,240.39); the
$1,240.39 is the interest of 4.5 percent earned on the conversion
credit balance (($34,317.46 - $1,240.39) x 4.5% x 10/12 =
$1,240.39)). 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.
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