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was not paid timely, and the policy lapsed for nonpayment of the
premium. MetLife continued the policy as nonparticipating paid-
up term insurance with a face value of $410,881 through May 7,
2003, at which time it was set to be depleted of its cash value
and thus to terminate without value.
IX. Dispute of Drs. DeAngelis and Domingo
In 1999, Dr. DeAngelis received a statement from STEP
showing that the death benefit for the DeAngelises survivor whole
life policy had decreased by approximately $3.5 million. The
statement caused Dr. DeAngelis to write letters to STEP,
Teplitzky & Co., and Mr. Rapp, requesting an explanation for the
decrease in value. Dr. DeAngelis (and ultimately Dr. Domingo)
also retained an attorney as to this matter.
On investigation, Dr. DeAngelis concluded that the policies
had lapsed for nonpayment of premiums, contrary to the advice
that he had received at the inception of his participation in
STEP that the policies would be self-sustaining after the making
of the first two contributions. Because the option on each
policy to pay the annual premiums through an APL had not been
elected on the insurance application form, each of the six
subject policies lapsed as of the end of 1997.
The failure to make the APL election on the insurance
application forms was partially that of Mr. Rapp, who
misunderstood the expressed intent of Drs. DeAngelis and Domingo
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