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28, 2001, Teplitzky & Co. responded to Dr. Domingo’s questions,
indicating, among other things, that the purchase price for his
policy was determined by subtracting from the $217,305 cash
surrender value of the policy the maximum loan that could be
taken of $211,809, leaving a balance in the policy of $5,496. On
October 9, 2001, Ms. McDermott confirmed in writing to Dr.
Domingo that MetLife would be willing to change the policy on his
life to reduced paid-up status retroactively effective to the
date when a request to make such a change could have been timely
made. Ms. McDermott also informed Dr. Domingo that the policy
was still “technically an asset of the severance plan” so it
would be a “good idea” to get the policy from the plan before the
change was made. Ms. McDermott attached a letter showing that
the policy is presently of “no value to the plan” to assist Dr.
Domingo in getting the policy.
On October 14, 2001, Dr. Domingo advised Teplitzky & Co.
that he wished to purchase the Domingos survivor whole life
policy. One day later, Dr. Domingo sent to Mellon Trust a $2,000
check from Rodolfo T. Domingo M.D.P.C. and a $3,496 check from
the Domingo Family Limited Partnership as requested by the STEP
plan administrator to purchase the Domingos survivor whole life
policy. On October 24, 2001, Teplitzky & Co. applied for a
policy loan on and requested a change in ownership of the
Domingos survivor whole life policy. The policy loan was used to
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Last modified: March 27, 2008