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DeAngelis policy) were paid timely,14 and PUAR was purchased with
additional premiums of $98,403.36 in 1993 and $97,028.36 in 1994.
In 1996, the premium due on this policy as of December 28, 1995,
was paid timely with a dividend withdrawal of $16,658.17 and a
portion of a withdrawal of $123,004.98 from the PUAR.15 As to
the withdrawal from the PUAR, $64,938.47 was used to pay the
December 28, 1995, premium on this policy, and $58,066.51 was
used to pay the December 28, 1995, premium on the DeAngelises
survivor whole life policy. In 1997, the premium due on December
28, 1996, on the Dr. DeAngelis policy was paid timely with a
dividend withdrawal of $15,247.77 and a withdrawal of $66,348.87
from the PUAR. The premium due on December 28, 1997, was not
paid timely, and the policy lapsed for nonpayment of premiums.
MetLife converted the policy to nonforfeiture extended term
insurance with a face value of $2,192,891 through August 21,
2000, at which time it was set to be depleted of its cash value
and thus to terminate without value.16
14 Although the premiums were not actually paid until after
the due dates, we consider them to have been paid “timely”. To
this end, we understand each of the subject insurance policies to
have allowed a grace period after the due date so that a premium
paid during that period would be timely in the sense that the
policy would not lapse.
15 A dividend withdrawal relates to a dividend payable on a
policy.
16 Extended term insurance is a life insurance policy
nonforfeiture option that may be exercised when the policy lapses
(continued...)
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Last modified: March 27, 2008