- 48 -
the end of that 10-month period, the conversion credit balance
was $13,081.59 ($15,758.33 - $3,149.57 + $472.83); the $472.83 is
the interest of 4.5 percent earned on the conversion credit
balance (($13,081.59 - $472.83) x 4.5% x 10/12 = $472.83)). 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.
The premium for the next 12-month period, before any
experience refund, was $19,270. The policy was credited with an
experience refund of $60, and the Lakewood Plan paid the net
premium of $19,210 ($19,270 - $60). The cost of insuring Dr.
Desai for the second year was $4,064.12, and, at the end of that
year, the conversion credit balance was $29,560.40 ($13,081.59 +
$19,270 - $4,064.12 + $1,272.93); the $1,272.93 is the interest
of 4.5 percent earned on the conversion credit balance
(($29,560.40 - $1,272.93) x 4.5% = $1,272.93)). Of the
conversion credit balance, $14,041.19 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
($29,560.40 x 47.5%).
The third-year premium for the next 12-month period, before
any experience refund, was $19,750. The policy was credited with
an experience refund of $474.65, and the Lakewood Plan paid the
net premium of $19,275.35 ($19,750 - $474.65). The cost of
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