- 47 -
upon conversion thereto, because the C-group term policy was in
its third year ($124,364.78 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 $296,937. At the time of conversion, the
C-group term policy’s conversion credit balance was $227,084.21,
and $215,730 of that amount ($227,084.21 x 95%) was transferred
to the C-group conversion UL policy for potential earning. Dr.
Hirshkowitz will earn these credits in 120 equal monthly
installments, beginning October 1996. The conversion credit
balance of $215,730 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 4 years 10
months, and (5) $1 million death benefit.
9. Dr. Desai’s Commonwealth C-Group Term Policy
Effective December 31, 1991, Commonwealth issued a $1
million C-group term policy (certificate No. 6004483) on the life
of Dr. Desai, age 46. The premium for the 10-month period from
December 31, 1991, through October 30, 1992, was $15,758.33, and
the cost of insuring Dr. Desai for this 10-month period was
$3,149.57. The Lakewood Plan paid the 10-month premium, and, at
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