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of $264,809. MetLife stated in part that it was making this
change because neither Dr. DeAngelis nor the STEP plan trustee
had received timely notice of either the lapse of the policy or
multidistrict litigation involving MetLife’s marketing practices;
the trustee had directed MetLife to send all mail to the trustee
in care of the STEP plan administrator. Before the formal change
of ownership, Dr. DeAngelis understood that the policy
technically had no value but that MetLife was going to change the
policy to reduced paid-up status retroactively to 1997. As of
December 28, 2004 and 2005, respectively, the Dr. DeAngelis
policy had a death benefit of $349,286 and $360,559.21 and a net
cash surrender value of $232,215.81 and $244,798.07.
D. Ms. Quinn Policy
On January 3, 2003, Dr. DeAngelis formally terminated
VRD/RTD’s participation in STEP. At that time, Dr. DeAngelis
offered on behalf of VRD/RTD to purchase from the STEP plan the
DeAngelises survivor whole life policy, the Dr. Durante policy,
and the Ms. Quinn policy. Dr. DeAngelis offered to purchase
these policies at a cost of 10 percent of each policy’s cash
value, payable as a withdrawal from the policy’s cash value.
On July 28, 2003, STEP assigned the ownership of the Ms.
Quinn policy to Ms. Quinn. No severance event had occurred under
the STEP plan to permit this assignment. In connection with the
assignment, Ms. Quinn executed a claim settlement and release
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Last modified: March 27, 2008