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transferred to the C-group conversion UL policy for potential
earning. Dr. Hirshkowitz will earn these credits in 120 equal
monthly installments, beginning October 1995. The conversion
credit balance of $122,941.12 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 59, (4) duration of 3 years 2
months, and (5) $940,000 death benefit.
3. Dr. Sankhla’s Peoples Security C-Group Term Policy
Effective January 31, 1993, Peoples Security issued a
$500,000 C-group term policy (certificate No. 7003453) on the
life of Dr. Sankhla, age 39. The first-year premium was $5,750,
and the cost of insuring Dr. Sankhla for that year was $1,245.51.
Lakewood paid this premium, and, at the end of that year, the
conversion credit balance was $4,707.19 ($5,750 - $1,245.51 +
$202.70); the $202.70 is the interest of 4.5 percent earned on
the conversion credit balance (($4,707.19 - $202.70) x 4.5% =
$202.70)). 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.
During the relevant years, Commonwealth, Inter-American, and
Peoples Security paid Kirwan, Mr. Murphy, and Mr. Ankner (either
indirectly through one of his companies or directly) commissions
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