- 46 -
The premium for the next 12-month period, before any
experience refund, was $51,470. The policy was credited with an
experience refund of $200, and the Lakewood Plan paid the net
premium of $51,270 ($51,470 - $200). The cost of insuring Dr.
Hirshkowitz for the second year was $11,189.96, and, at the end
of that year, the conversion credit balance was $77,954.39
($34,317.46 + $51,470 - $11,189.96 + $3,356.89); the $3,356.89 is
the interest of 4.5 percent earned on the conversion credit
balance (($77,954.39 - $3,356.89) x 4.5% = $3,356.89)). Of the
conversion credit balance, $37,028.34 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 second year
($77,954.39 x 47.5%).
The third-year premium for the next 12-month period, before
any experience refund, was $53,150. The policy was credited with
an experience refund of $1,321.18, and the Lakewood Plan paid the
net premium of $51,828.82 ($53,150 - $1,321.18). The cost of
insuring Dr. Hirshkowitz for the third year was $12,095.03, and,
at the end of that year, the conversion credit balance was
$124,364.78 ($77,954.39 + $53,150 - $12,095.03 + $5,355.42); the
$5,355.42 is the interest of 4.5 percent earned on the conversion
credit balance (($124,364.78 - $5,355.42) x 4.5% = $5,355.42)).
Of the conversion credit balance, $112,239.22 could have been
transferred at this time to the C-group conversion UL policy,
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