- 61 -
amounts that were payable for charges related to the policies or
otherwise incidental to the participation in the STEP plan. In
fact, upon learning that their policies had lost the value that
they expected to receive, Drs. DeAngelis and Domingo pursued
recovery of those losses both directly and aggressively with
their insurance agent and with the STEP plan representatives and
caused the policies written on their lives to be transferred to
them (and the Ms. Quinn policy to be transferred to her) as they
had expected from the start of their investment in the STEP plan.
As to the DeAngelises survivor whole life policy and the Domingos
survivor whole life policy, the retroactive reinstatement and
conversion of those policies to APL also rebuts petitioners’
claim that each insurance policy was truly an asset of the STEP
plan which the plan had the unfettered right to benefit from, to
liquidate, or to dispose of; to the contrary, the cash value
theoretically belonging to the STEP plan was converted into death
benefits for Drs. DeAngelis and Domingo even though VRD/RTD had
stopped making contributions years before the conversion.
We also note the events leading up to the initial purchase
of the whole life insurance policies. Through the partnership
agreement executed on June 19, 1990, Drs. DeAngelis and Domingo
had expressed their intent to retire in the near future. Yet, in
connection with the planning of their personal estates and their
consideration of ways to reduce the application to their estates
Page: Previous 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 Next
Last modified: March 27, 2008