- 51 -
$1,150,000 that it did (the $1 million on this policy and the
$150,000 on certificate No. 6000971). The Lakewood Plan retained
those assets for the remaining covered employees.
11. Dr. Sankhla’s Commonwealth MG-5 Policy
Effective December 31, 1991, Commonwealth issued a $150,000
MG-5 policy on the life of Dr. Sankhla, age 38, for a 1-year
premium of $397.50. The policy was renewed for a second year at
a premium of $397.50, and for a third year at a premium of
$397.50. The Lakewood Plan paid all three of these premiums.
12. Dr. Hirshkowitz’ Commonwealth C-Group Term Policy
Effective December 31, 1993, Commonwealth issued a $100,000
C-group term policy (certificate No. 6022354) on the life of Dr.
Hirshkowitz, age 60. The premium for the 10-month period from
December 31, 1993, through October 30, 1994, was $4,496.67, and
the cost of insuring Dr. Hirshkowitz for that 10-month period was
$1,107.84. The Lakewood Plan paid the 10-month premium, and, at
the end thereof, the conversion credit balance was $3,515.91
($4,496.67 - $1,107.84 + $127.08); the $127.08 is the interest of
4.5 percent earned on the conversion credit balance (($3,515.91 -
$127.08) x 4.5% x 10/12 = $127.08)). 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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