Registration Statement for a Separate Account (Unit Investment Trust) — Form N-4
Filing Table of Contents
Document/Exhibit Description Pages Size
1: N-4 Registration Statement for a Separate Account 103± 432K
(Unit Investment Trust)
2: EX-99 Miscellaneous Exhibit 22 77K
3: EX-99 Miscellaneous Exhibit 5 26K
4: EX-99 Miscellaneous Exhibit 3 14K
5: EX-99 Miscellaneous Exhibit 4 19K
6: EX-99 Miscellaneous Exhibit 4 21K
7: EX-99 Miscellaneous Exhibit 2 11K
8: EX-99 Miscellaneous Exhibit 7± 36K
9: EX-99 Miscellaneous Exhibit 1 8K
N-4 — Registration Statement for a Separate Account (Unit Investment Trust)
Document Table of Contents
As filed with the Securities and Exchange Commission on August 19, 2004.
Commission File Nos. 333-______
811-08401
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933 [ X ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. [ ]
and/or
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 44 [ X ]
JNLNY Separate Account I
(Exact Name of Registrant)
Jackson National Life Insurance Company of New York
(Name of Depositor)
2900 Westchester Avenue
Purchase, New York 10577
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (888) 367-5651
Thomas J. Meyer, Esq.
Senior Vice President, Secretary and General Counsel
Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951
(Name and Address of Agent for Service)
Copy to:
John S. (Scott) Kreighbaum, Esq.
Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951
Approximate date of proposed public offering: Upon the effective date of this
Registration Statement. December 23, 2004 requested.
The Registrant hereby agrees to amend this Registration Statement on such date
or dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
THE INFORMATION IN THE PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT
SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL
THESE SECURITIES AND IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY
STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
PERSPECTIVE ADVISORS II
FLEXIBLE PREMIUM FIXED AND VARIABLE DEFERRED ANNUITY
ISSUED BY
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORKSM THROUGH
JNLNY SEPARATE ACCOUNT I
THE DATE OF THIS PROSPECTUS IS *, which states the information about the
Separate Account, the Contract, and Jackson National Life of NY you should know
before investing. This information is meant to help you decide if the Contract
will meet your needs. Please carefully read this prospectus and any related
documents and keep everything together for future reference. Additional
information about the Separate Account can be found in the statement of
additional information (SAI) dated * that is available upon request without
charge. To obtain a copy, contact us at our:
ANNUITY SERVICE CENTER
P.O. BOX 378002
DENVER, COLORADO 80237-8002
1-800-599-5651
CONTACTUS@JNLNY.COM
WWW.JNLNY.COM
This prospectus also describes a variety of optional features, not all of which
may be available at the time you are interested in purchasing a Contract, as we
reserve the right to prospectively restrict availability of the optional
features. In addition, not all optional features may be available in combination
with other optional features, as we also reserve the right to prospectively
restrict the availability to elect certain features if certain other optional
features have been elected. Please confirm that you have the most current
prospectus and supplements to the prospectus that describe the current
availability and any restrictions on the optional features. Expenses for a
Contract with a Contract Enhancement will be higher than those for a Contract
without a Contract Enhancement, and in some cases the amount of a Contract
Enhancement may be more than offset by those expenses. We offer other variable
annuity products that offer different product features, benefits and charges.
The SAI is incorporated by reference into this prospectus, and its table of
contents begins on page *. The prospectus and SAI are part of the registration
statement that we filed with the Securities and Exchange Commission (SEC) about
this securities offering. The registration statement, material incorporated by
reference, and other information is available on the website the SEC maintains
(http://www.sec.gov) regarding registrants that make electronic filings.
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NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED
THE SECURITIES OFFERED THROUGH THIS PROSPECTUS DISCLOSURE. IT IS A CRIMINAL
OFFENSE TO REPRESENT OTHERWISE. WE DO NOT INTEND FOR THIS PROSPECTUS TO BE AN
OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY STATE
WHERE THIS IS NOT PERMITTED.
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o Not FDIC/NCUA insured o Not Bank/CU guaranteed o May lose value o Not a
deposit o Not insured by any federal agency
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* THE CONTRACT MAKES AVAILABLE FOR INVESTMENT FIXED AND VARIABLE INVESTMENT
OPTIONS. SOLD BY PROSPECTUSES ONLY, WHICH SHOULD BE ATTACHED TO THIS
PROSPECTUS (AND LET US KNOW OTHERWISE), THESE ARE THE CURRENTLY AVAILABLE
VARIABLE OPTIONS - ALL CLASS A SHARES [TO BE UPDATED BY AMENDMENT]:
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JNL SERIES TRUST
JNL/AIM Large Cap Growth Fund
JNL/AIM Small Cap Growth Fund
JNL/Alger Growth Fund
JNL/Alliance Capital Growth Fund
JNL/Eagle Core Equity Fund
JNL/Eagle SmallCap Equity Fund
JNL/FMR Balanced Fund
JNL/FMR Capital Growth Fund
JNL/JPMorgan International Value Fund
JNL/Lazard Mid Cap Value Fund
JNL/Lazard Small Cap Value Fund
JNL/Mellon Capital Management S&P 500 Index Fund
JNL/Mellon Capital Management S&P 400 MidCap Index Fund
JNL/Mellon Capital Management Small Cap Index Fund
JNL/Mellon Capital Management Bond Index Fund
JNL/Mellon Capital Management International Index Fund
JNL/Mellon Capital Management Enhanced S&P 500 Stock Index Fund
JNL/Oppenheimer Global Growth Fund
JNL/Oppenheimer Growth Fund
JNL/PIMCO Total Return Bond Fund
JNL/Putnam Equity Fund
JNL/Putnam International Equity Fund
JNL/Putnam Midcap Growth Fund
JNL/Putnam Value Equity Fund
JNL/Salomon Brothers High Yield Bond Fund
JNL/Salomon Brothers Strategic Bond Fund
JNL/Salomon Brothers U.S. Government & Quality Bond Fund
JNL/Select Balanced Fund
JNL/Select Global Growth Fund
JNL/Select Large Cap Growth Fund
JNL/Select Money Market Fund
JNL/Select Value Fund
JNL/T. Rowe Price Established Growth Fund
JNL/T. Rowe Price Mid-Cap Growth Fund
JNL/T. Rowe Price Value Fund
JNL/S&P Managed Conservative Fund
JNL/S&P Managed Moderate Fund
JNL/S&P Managed Aggressive Growth Fund
JNL/S&P Managed Moderate Growth Fund
JNL/S&P Managed Growth Fund
JNLNY VARIABLE FUND I LLC
JNL/Mellon Capital Management The DowSM 10 Fund
JNL/Mellon Capital Management The S&P(R) 10 Fund
JNL/Mellon Capital Management Global 15 Fund
JNL/Mellon Capital Management 25 Fund
JNL/Mellon Capital Management Select Small-Cap Fund
JNL/Mellon Capital Management NASDAQ(R) 15 Fund
JNL/Mellon Capital Management Value Line(R) 25 Fund
JNL VARIABLE FUND LLC
JNL/Mellon Capital Management Communications Sector Fund
JNL/Mellon Capital Management Consumer Brands Sector Fund
JNL/Mellon Capital Management Energy Sector Fund
JNL/Mellon Capital Management Financial Sector Fund
JNL/Mellon Capital Management Pharmaceutical/Healthcare Sector Fund
JNL/Mellon Capital Management Technology Sector Fund
JNL/Mellon Capital Management VIP Fund
JNL/Mellon Capital Management JNL 5 Fund
THESE FUNDS ARE AVAILABLE THROUGH SUBDIVISIONS OF THE SEPARATE ACCOUNT AND ARE
NOT THE SAME MUTUAL FUNDS THAT YOU WOULD BUY THROUGH YOUR STOCKBROKER OR A
RETAIL MUTUAL FUND.
"JNL(R)," "Jackson National(R)" and "Jackson National Life(R)" are trademarks of
Jackson National Life Insurance Company.
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," "500,"
"Standard & Poor's MidCap 400" and "S&P MidCap 400" are trademarks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Jackson National
Life Insurance Company. These Funds are not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in these Funds. Please see the Statement
of Additional Information which sets forth certain additional disclaimers and
limitations of liabilities on behalf of S&P.
"Dow Jones," "Dow Jones Industrial AverageSM," "DJIASM," "The DowSM" and "The
Dow 10SM Index" are service marks of Dow Jones & Company, Inc. (Dow Jones) and
have been licensed for use for certain purposes by Jackson National Life
Insurance Company. Dow Jones has no relationship to the annuity and Jackson
National Life Insurance Company, other than the licensing of the Dow Jones
Industrial Average (DJIA) and its service marks for use in connection with the
JNL/Mellon Capital Management The DowSM 10 Fund. Please see Appendix A for
additional information. The JNL/Mellon Capital Management The DowSM 10 Fund is
not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no
representation regarding the advisability of investing in such product.
The JNL/Mellon Capital Management The S&P(R) 10 Fund is not sponsored, endorsed,
sold or promoted by Standard & Poor's and Standard & Poor's makes no
representation regarding the advisability of investing in this Fund. Please see
the Statement of Additional Information which sets forth certain additional
disclaimers and limitations of liabilities on behalf of S&P.
The Product(s) is not sponsored, endorsed, sold or promoted by The Nasdaq Stock
Market, Inc. (including its affiliates) (Nasdaq, with its affiliates, are
referred to as the CORPORATIONS). The Corporations have not passed on the
legality or suitability of or the accuracy or adequacy of descriptions and
disclosures relating to the Product(s). The Corporations make no representation
or warranty, express or implied to the owners of the Product(s) or any member of
the public regarding the advisability of investing in securities generally or in
the Product(s) particularly, or the ability of the Nasdaq-100 Index(R) to track
general stock market performance. The Corporations' only relationship to Jackson
National Life Insurance Company (LICENSEE) is in the licensing of the
Nasdaq-100(R), Nasdaq-100 Index(R) and Nasdaq(R) trademarKS or service marks,
and certain trade names of the Corporations and the use of the Nasdaq-100
Index(R) which is determined, composed and calculated by Nasdaq without regard
to Licensee or the Product(s). Nasdaq has no obligation to take the needs of the
Licensee or the owners of the Product(s) into consideration in determining,
composing or calculating the Nasdaq-100 Index(R). The Corporations are not
responsible for and have not participated in the determination of the timing of,
prices at or quantities of the Product(s) to be issued or in the determination
or calculation of the equation by which the Product(s) is to be converted into
cash. The Corporations have no liability in connection with the administration,
marketing or trading of the Product(s).
THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR UNINTERRUPTED CALCULATION
OF THE NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE
NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE,
OWNERS OF THE PRODUCT(S) OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE
NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO
EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE
FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANY LOST
PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES,
EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
"The Nasdaq-100(R)," "Nasdaq-100 Index(R)," "Nasdaq Stock Market(R)" and
"Nasdaq" are trade or service marks of The Nasdaq, Inc. (which with its
affiliates are the "Corporations") and have been licensed for use by Jackson
National Life Insurance Company. The JNL/Mellon Capital Management NASDAQ(R) 15
Fund has not passed on the Corporations as to its legality or suitability. The
JNL/Mellon Capital Management NASDAQ(R) 15 Fund is not issued, endorsed,
sponsored, managed, sold or promoted by the Corporations. THE CORPORATIONS MAKE
NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE JNL/MELLON CAPITAL
MANAGEMENT NASDAQ(R) 15 FUND.
"Value Line(R)," "The Value Line Investment Survey" and "Value Line TimelinessTM
Ranking System" are trademarks of Value Line Securities, Inc. or Value Line
Publishing, Inc. that have been licensed to Jackson National Life Insurance
Company. The JNL/Mellon Capital Management Value Line(R) 25 Fund is not
sponsored, recommended, sold or promoted by Value Line Publishing, Inc., Value
Line, Inc. or Value Line Securities, Inc. ("Value Line"). Value Line makes no
representation regarding the advisability of investing in the JNL/Mellon Capital
Management Value Line(R) 25 Fund. Jackson National Life Insurance Company is not
affiliated with any Value Line Company.
TABLE OF CONTENTS [TO BE UPDATED]
GLOSSARY........................................................................
KEY FACTS.......................................................................
FEE AND EXPENSE TABLES..........................................................
THE ANNUITY CONTRACT............................................................
JACKSON NATIONAL LIFE OF NY.....................................................
THE FIXED ACCOUNT...............................................................
THE SEPARATE ACCOUNT............................................................
INVESTMENT DIVISIONS............................................................
CONTRACT CHARGES................................................................
PURCHASES ......................................................................
TRANSFERS.......................................................................
TELEPHONE AND INTERNET TRANSACTIONS.............................................
ACCESS TO YOUR MONEY............................................................
INCOME PAYMENTS (THE INCOME PHASE)..............................................
DEATH BENEFIT...................................................................
TAXES...........................................................................
OTHER INFORMATION...............................................................
APPENDIX A (about Dow Jones)....................................................
APPENDIX B (about Contract Enhancement recapture charges).......................
APPENDIX C (7% GMWB examples)...................................................
APPENDIX D (4% for Life GMWB examples)..........................................
APPENDIX E (5% for Life GMWB examples)..........................................
APPENDIX F (Accumulation Unit values)...........................................
GLOSSARY
THESE TERMS ARE CAPITALIZED WHEN USED THROUGHOUT THIS PROSPECTUS BECAUSE THEY
HAVE SPECIAL MEANING. IN READING THIS PROSPECTUS, PLEASE REFER BACK TO THIS
GLOSSARY IF YOU HAVE ANY QUESTIONS ABOUT THESE TERMS.
ACCUMULATION UNIT - a unit of measure we use to calculate the value in an
Investment Division prior to the Income Date.
ANNUITANT - the natural person on whose life annuity payments for this Contract
are based. The Contract allows for the naming of joint annuitants.
ANNUITY UNIT - a unit of measure we use in calculating the value of a variable
annuity payment on and after the Income Date.
BENEFICIARY - the natural person or legal entity designated to receive any
Contract benefits upon the Owner's death. The Contract allows for the naming of
multiple beneficiaries.
CONTRACT - the individual deferred variable and fixed annuity contract and any
optional endorsements you may have selected.
CONTRACT ANNIVERSARY - each one year anniversary of the Contract's Issue Date.
CONTRACT ENHANCEMENT - a credit that we will make to each premium payment you
make during the first Contract Year.
CONTRACT VALUE - the sum of your investment allocations between the Contract's
fixed and variable options.
CONTRACT YEAR - the succeeding twelve months from a Contract's Issue Date and
every anniversary.
FIXED ACCOUNT - a sub-account of our General Account to which the premium you
allocate is guaranteed to earn a specified rate of return.
GENERAL ACCOUNT - the General Account includes all our assets, including any
premium you allocated to the Fixed Account, which are available to our
creditors.
GOOD ORDER - when our administrative requirements are met for any requested
action or change, including that we have received sufficient supporting
documentation.
INCOME DATE - the date on which you begin receiving annuity payments that is at
least 13 months from the Issue Date.
ISSUE DATE - the date your Contract is issued.
INVESTMENT DIVISION - one of multiple variable options of the Separate Account
to allocate your Contract's value, each of which exclusively invests in a
different available fund. The Investment Divisions are variable because the
return on investment is not guaranteed.
JACKSON NATIONAL LIFE OF NY, JNLNY, WE, OUR, OR US - Jackson National Life
Insurance Company of New York. (We do not capitalize "we," "our," or "us" in the
prospectus.)
OWNER, YOU OR YOUR - the natural person or legal entity entitled to exercise all
rights and privileges under the Contract. Usually, but not always, the Owner is
the Annuitant. The Contract allows for the naming of joint owners.
(We do not capitalize "you" or "your" in the prospectus.)
SEPARATE ACCOUNT - JNLNY Separate Account I.
KEY FACTS
THE IMMEDIATELY FOLLOWING TWO SECTIONS BRIEFLY INTRODUCE THE CONTRACT (AND ITS
BENEFITS AND FEATURES) AND ITS COSTS; HOWEVER, PLEASE CAREFULLY READ THE WHOLE
PROSPECTUS AND ANY RELATED DOCUMENTS BEFORE PURCHASING THE CONTRACT TO BE SURE
THAT IT WILL MEET YOUR NEEDS.
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INVESTMENT OPTIONS The Contract makes available for investment
fixed and variable investment options.
For more information about the fixed option,
please see "THE FIXED ACCOUNT" beginning
on page o. For more information about the
variable options, please see "INVESTMENT
DIVISIONS" beginning on page o.
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INVESTMENT PURPOSE The Contract is intended to help you
save for retirement or another long-term
investment purpose. The Contract is designed
to provide tax deferral on your earnings.
For more information, please see "TAXES"
beginning on page o.
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FREE LOOK If you change your mind about having
purchased the Contract, you may return it
without penalty. There are conditions and
limitations. For more information, please
see "FREE LOOK" beginning on page o.
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PURCHASES There are minimum and maximum premium
requirements. You may elect to receive a
credit on your premium payments during the
first Contract Year, subject to conditions
and limitations. For more information,
please see "PURCHASES" beginning on page o.
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WITHDRAWALS Before the Income Date, there are a number
of ways to access your Contract Value,
sometimes subject to a charge, particularly
during the early Contract Years. There are
also a number of optional withdrawal
benefits available. For more information,
please see "ACCESS TO YOUR MONEY" beginning
on page o.
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INCOME PAYMENTS There are a number of income
options available. For more information,
please see "INCOME PAYMENTS (THE INCOME
PHASE)" beginning on page o.
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DEATH BENEFIT The Contract has a death benefit
that becomes payable if you die before the
Income Date. An optional death benefit is
also available. For more information, please
see "DEATH BENEFIT" beginning on page o.
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FEE AND EXPENSE TABLES
THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN
PURCHASING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE
FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU PURCHASE THE CONTRACT,
SURRENDER THE CONTRACT OR TRANSFER CASH VALUE BETWEEN INVESTMENT OPTIONS.
[Enlarge/Download Table]
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OWNER TRANSACTION EXPENSES
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Sales Load.....................................................................................................None
Maximum Contract Enhancement Recapture Charge (as a percentage of the corresponding first year premium payments
withdrawn if the optional Contract Enhancement is selected)/1/..............................................2%
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Completed Years Since
Receipt Of Premium 0 1 2 3 4 5+
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With 2% Credit 2% 2% 1.25% 1.25% 0.5% 0
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Premium Taxes (as a percentage of each premium payment) .........................................................*%
Transfer Charge (per transfer after 15 in a Contract year)/2/...................................................$25
Expedited Delivery Charge/3/.................................................................................$22.50
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1 The Contract Enhancement is subject to a recapture charge on withdrawals
within the recapture charge schedule or if the Contract is returned during
the free look period. Recapture charges are waived, however, upon death and
annuitization, and may be waived on minimum required distributions. The
recapture charge schedule lasts five years and is the same for the first 24
months.
2 We do not count transfers in conjunction with dollar cost averaging,
automatic rebalancing and automatic transfers from the Fixed Account.
3 For overnight delivery on Saturday; otherwise, the overnight delivery
charge is $10 for withdrawals. We also charge $15 for wire transfers in
connection with withdrawals.
THE NEXT TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY
DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING THE FUNDS' FEES AND
EXPENSES.
[Enlarge/Download Table]
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PERIODIC EXPENSES
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For Base Contract
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Annual Contract Maintenance Charge/4/...........................................................................$30
Separate Account Annual Expenses (as an annual percentage of the average daily
account value of the Investment Divisions)................................................................... 1.65%
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Mortality And Expense Risk Charge .....................................................................1.50%
Administration Charge .................................................................................0.15%
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Total Separate Account Annual Expenses............................................................1.65%
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For Optional Endorsements (As an annual percentage of the average daily account value of the Investment Divisions) (You
may only select one of each grouping)/5/
2% Contract Enhancement Maximum Annual Charge/6/.............................................................0.395%
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7% Guaranteed Minimum Withdrawal Benefit (GMWB) Maximum Annual Charge/7/......................................0.70%
5% For Life GMWB Maximum Annual Charge/8/.....................................................................1.30%
4% For Life GMWB Maximum Annual Charge/9/.....................................................................0.85%
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Highest Anniversary Value Death Benefit Maximum Annual Charge ................................................0.25%
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Total Separate Account Annual Expenses With The Most Expensive Optional Endorsements 10...............3.595%
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4 This charge is waived on Contract Value of $50,000 or more. This charge is
deducted proportionally from your fixed and variable options either
annually (on your Contract Anniversary) or in conjunction with a total
withdrawal, as applicable.
5 Some optional endorsements are only available to select in purchasing the
Contract and once purchased cannot be canceled.
6 This charge lasts for the first five Contract Years.
7 The current charge is 0.40%. For more information, please see "7%
Guaranteed Minimum Withdrawal Benefit" beginning on page *.
8 The charge varies with the Owner's age, or with the age of the older Owner
in the case of joint Owners, on the Contract's Issue Date (or the date this
optional endorsement is selected, if different). For an Owner between the
ages of: 60 and 64; 65 and 69; 70 and 74; and 75 and 80 - the maximum
annual charge is: 1.30%; 0.85%; 0.60%; and 0.50%, respectively. Meanwhile,
for the same age groups, the current charges are: 0.90%; 0.60%; 0.50%; and
0.40%, respectively.
9 The charge varies with the Owner's age, or with the age of the older Owner
in the case of joint Owners, on the Contract's Issue Date (or the date this
optional endorsement is selected, if different). For an Owner between the
ages of: 50 and 54; 55 and 59; 60 and 64; 65 and 69; 70 and 74; and 75 and
80 - the maximum annual charge is: 0.85%; 0.65%; 0.50%; 0.35%; 0.30%; and
0.20%, respectively. Meanwhile, for the same age groups, the current
charges are: 0.65%; 0.50%; 0.35%; 0.25%; 0.20%; and 0.15%, respectively.
10 If you were to select these optional endorsements, based on the maximum
annual charges for the 2% Contract Enhancement, 5% For Life GMWB and
Highest Anniversary Value Death Benefit.
THE INFORMATION BELOW SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES
CHARGED BY THE FUNDS AND A FULL TABLE OF THE EXPENSES CHARGED BY ALL OF THE
FUNDS, WHICH YOU WILL PAY DURING THE TIME YOUR MONEY IS ALLOCATED TO THE
CORRESPONDING INVESTMENT DIVISION.
TOTAL ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets, including management and administration fees, distribution (12b-1) fees
and other expenses) [TO BE UPDATED BY AMENDMENT]
Minimum: *%
Maximum: *%
FUND ANNUAL EXPENSES (as an annual percentage of the Fund's average daily net
assets) [TO BE UPDATED BY AMENDMENT]
[Enlarge/Download Table]
MANAGEMENT AND ESTIMATED 12B-1 TOTAL FUND
ADMINISTRATIVE DISTRIBUTION SERVICE OTHER ANNUAL
FUND NAME FEE/1/ (12B-1) FEES/2/ FEE/3/ EXPENSES/4/ EXPENSES
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JNL/AIM Large Cap Growth Fund 0.85% 0.08% 0.20% 0% 1.13%
JNL/AIM Small Cap Growth Fund 0.95% 0.04% 0.20% 0% 1.19%
JNL/Alger Growth Fund 0.80% 0.07% 0.20% 0% 1.07%
JNL/Alliance Capital Growth Fund 0.68% 0.03% 0.20% 0% 0.91%
JNL/Eagle Core Equity Fund 0.77% 0.04% 0.20% 0% 1.01%
JNL/Eagle SmallCap Equity Fund 0.85% 0.05% 0.20% 0% 1.10%
JNL/FMR Balanced Fund 0.80% 0.02% 0.20% 0% 1.02%
JNL/FMR Capital Growth Fund 0.80% 0.02% 0.20% 0% 1.02%
JNL/JPMorgan International Value Fund 0.92% 0% 0.20% 0% 1.12%
JNL/Lazard Mid Cap Value Fund 0.88% 0.09% 0.20% 0% 1.17%
JNL/Lazard Small Cap Value Fund 0.93% 0.07% 0.20% 0% 1.20%
JNL/Mellon Capital Management S&P 500 Index Fund 0.39% 0.01% 0.20% 0% 0.60%
JNL/Mellon Capital Management S&P 400 MidCap Index Fund 0.39% 0.01% 0.20% 0% 0.60%
JNL/Mellon Capital Management Small Cap Index Fund 0.39% 0.01% 0.20% 0% 0.60%
JNL/Mellon Capital Management Bond Index Fund 0.40% 0% 0.20% 0% 0.60%
JNL/Mellon Capital Management International Index Fund 0.45% 0% 0.20% 0% 0.65%
JNL/Mellon Capital Management Enhanced S&P 500 Stock
Index Fund 0.58% 0.02% 0.20% 0% 0.80%
JNL/Oppenheimer Global Growth Fund 0.85% 0% 0.20% 0% 1.05%
JNL/Oppenheimer Growth Fund 0.80% 0% 0.20% 0% 1.00%
JNL/PIMCO Total Return Bond Fund 0.60% 0% 0.20% 0% 0.80%
JNL/Putnam Equity Fund 0.77% 0.07% 0.20% 0% 1.04%
JNL/Putnam International Equity Fund 0.93% 0.03% 0.20% 0% 1.16%
JNL/Putnam Midcap Growth Fund 0.85% 0.06% 0.20% 0% 1.11%
JNL/Putnam Value Equity Fund 0.74% 0.05% 0.20% 0% 0.99%
JNL/Salomon Brothers High Yield Bond Fund 0.60% 0% 0.20% 0% 0.80%
JNL/Salomon Brothers Strategic Bond Fund 0.75% 0% 0.20% 0% 0.95%
JNL/Salomon Brothers U.S. Government & Quality Bond Fund 0.58% 0% 0.20% 0% 0.78%
JNL/Select Balanced Fund 0.59% 0.01% 0.20% 0% 0.80%
JNL/Select Global Growth Fund 0.89% 0.05% 0.20% 0% 1.14%
JNL/Select Large Cap Growth Fund 0.78% 0.04% 0.20% 0% 1.02%
JNL/Select Money Market Fund 0.40% 0% 0.20% 0% 0.60%
JNL/Select Value Fund 0.65% 0.03% 0.20% 0% 0.88%
JNL/T. Rowe Price Established Growth Fund 0.72% 0.03% 0.20% 0% 0.95%
JNL/T. Rowe Price Mid-Cap Growth Fund 0.83% 0.01% 0.20% 0% 1.04%
JNL/T. Rowe Price Value Fund 0.80% 0.02% 0.20% 0% 1.02%
JNL/S&P Managed Conservative Fund 0.18% 0% 0% 0% 0.18%
JNL/S&P Managed Moderate Fund 0.18% 0% 0% 0% 0.18%
JNL/S&P Managed Aggressive Growth Fund5 0.18% 0% 0% 0% 0.18%
JNL/S&P Managed Moderate Growth Fund5 0.18% 0% 0% 0% 0.18%
JNL/S&P Managed Growth Fund5 0.17% 0% 0% 0% 0.17%
JNL/Mellon Capital Management The DowSM 10 Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management The S&P(R)10 Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management Global 15 Fund 0.57% 0% 0.20% 0.01% 0.78%
JNL/Mellon Capital Management 25 Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management Select Small-Cap Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management NASDAQ(R)15 Fund 0.52% 0% 0.20% 0.05% 0.77%
JNL/Mellon Capital Management Value Line(R)25 Fund 0.52% 0% 0.20% 0.16% 0.88%
JNL/Mellon Capital Management Communications Sector Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management Consumer Brands Sector Fund 0.52% 0% 0.20% 0.02% 0.74%
JNL/Mellon Capital Management Energy Sector Fund 0.52% 0% 0.20% 0.02% 0.74%
JNL/Mellon Capital Management Financial Sector Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management
Pharmaceutical/Healthcare Sector Fund 0.52% 0% 0.20% 0.02% 0.74%
JNL/Mellon Capital Management Technology Sector Fund 0.52% 0% 0.20% 0.01% 0.73%
JNL/Mellon Capital Management VIP Fund 0.52% 0% 0.20% 0.05% 0.77%
JNL/Mellon Capital Management JNL 5 Fund 0.52% 0% 0.20% 0.01% 0.73%
------------------------------------------------------ ------------------ -------------- ----------- -------------- -------------
1 Certain Funds pay Jackson National Asset Management, LLC, the adviser, an
administrative fee for certain services provided to the Fund by the adviser. The
JNL/Select Global Growth Fund, the JNL/JPMorgan International Value Fund, the
JNL/Oppenheimer Global Growth Fund, the JNL/Putnam International Equity Fund and
all of the JNL/Mellon Capital Management Funds except the JNL/Mellon Capital
Management S&P 500 Index Fund, JNL/Mellon Capital Management S&P 400 MidCap
Index Fund, JNL/Mellon Capital Management Small Cap Index Fund, JNL/Mellon
Capital Management Bond Index Fund, JNL/Mellon Capital Management Enhanced S&P
500 Stock Index Fund and the JNL/Mellon Capital Management Global 15 Fund pay an
administrative fee of .15%; the JNL/Mellon Capital Management Global 15 Fund
pays an administrative fee of .20%; the nine JNL/S&P Funds pay an administrative
fee of .05%; the other Funds pay an administrative fee of .10%. The Management
and Administrative Fee and the Total Fund Annual Expenses columns in this table
reflect the inclusion of any applicable administrative fee. The management fee
reflects a reduction in connection with the adoption of a 0.20% Rule 12b-1 fee
for the Fund's Class A shares. The management fees shown in the table for the
Mellon Capital Management funds are lower than the actual fees incurred in 2003,
to reflect reductions in the contractual management fee rates.
2 The Trustees have adopted a Brokerage Enhancement Plan (the "Plan") in
accordance with the provisions of Rule 12b-1 under the Investment Company Act of
1940. The Plan uses the available brokerage commissions to promote services and
the sale of shares of the Trust. While the brokerage commission rates and
amounts paid by the Trust are not expected to increase as a result of the Plan,
the staff of the Securities and Exchange Commission has taken the position that
commission amounts received under the Plan should be reflected as distribution
expenses of the Funds. The 12b-1 fee is only paid to the extent that the
commission is recaptured. The distribution fee noted is an estimate in that it
is not possible to determine with accuracy actual amounts that will be received
by the Distributor or its affiliate under the Plan.
3 Effective December 15, 2003, the Fund implemented the Rule 12b-1 fee for Class
A shares as part of its adoption of a Rule 12b-1 Plan. Rule 12b-1 fees may not
exceed 0.20% of average daily net assets attributed to Class A shares.
4 Other Expenses include the costs associated with license fees paid by certain
Funds and the fees and expenses of the disinterested Managers, their independent
legal counsel and for a majority of the estimated expenses associated with the
Chief Compliance Officer.
5 UNDERLYING FUND EXPENSES. The expenses shown above are the annual operating
expenses for the JNL/S&P Funds. Because the JNL/S&P Funds invest in other Funds
of the JNL Series Trust and JNL Variable Fund LLC, the JNL/S&P Funds will
indirectly bear its pro rata share of fees and expenses of the underlying Funds
in addition to the expenses shown.
The total annual operating expenses for each JNL/S&P Fund (including both the
annual operating expenses for the JNL/S&P Funds and the annual operating
expenses for the underlying Funds) could range from *% to *% (this range
reflects an investment in the Funds with the lowest and highest Total Fund
Annual Expenses). The table below shows estimated total annual operating
expenses for each of the JNL/S&P Funds based on the pro rata share of expenses
that the JNL/S&P Funds would bear if they invested in a hypothetical mix of
underlying Funds. The adviser believes the expenses shown below to be a likely
approximation of the expenses the JNL/S&P Funds will incur based on the actual
mix of underlying Funds. The expenses shown below include both the annual
operating expenses for the JNL/S&P Fund and the annual operating expenses for
the underlying Funds. The actual expenses of each JNL/S&P Fund will be based on
the actual mix of underlying Funds in which it invests. The actual expenses may
be greater or less than those shown.
JNL/S&P Managed Conservative Fund......................... *%
JNL/S&P Managed Moderate Fund............................. *%
JNL/S&P Managed Moderate Growth Fund...................... 1.093%
JNL/S&P Managed Growth Fund............................... 1.129%
JNL/S&P Managed Aggressive Growth Fund.................... 1.167%
EXAMPLES. [TO BE UPDATED BY AMENDMENT] These examples are intended to help you
compare the cost of investing in the Contract with the cost of investing in
other variable annuity Contracts. The examples assume that you invest $10,000 in
the Contract for the time periods indicated. Neither transfer fees nor premium
tax charges are reflected in the examples. The examples also assume that your
investment has a 5% annual return on assets each year. Your actual costs may be
higher or lower than the costs shown in the examples.
The following examples include maximum Fund fees and expenses and the cost if
you select the Highest Anniversary Value Death Benefit, the 2% Contract
Enhancement and the 5% for Life GMWB (using the maximum possible charge (at age
60)). Based on these assumptions, your costs would be: If you do not surrender
your Contract:\
1 YEAR 3 YEARS 5 YEARS 10 YEARS
$* $* $* $*
If you surrender your Contract or begin receiving income payments from your
Contract at the end of each time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
$* $* $* $*
The following example includes minimum Fund fees and expenses and does not
include any optional endorsements. Based on these assumptions, your costs would
be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
$* $* $* $*
EXPLANATION OF FEE TABLE AND EXAMPLES. The purpose of the Fee Table and examples
is to assist you in understanding the various costs and expenses that you will
bear directly or indirectly. The Fee Table reflects the expenses of the Separate
Account and the funds. Premium taxes may also apply. The examples reflect the
annual contract maintenance charge, which is determined by dividing the total
amount of such charges collected during the calendar year by the total market
value of the Investment Divisions and the Fixed Account. THE EXAMPLES DO NOT
REPRESENT PAST OR FUTURE EXPENSES. THE ACTUAL EXPENSES THAT YOU INCUR MAY BE
GREATER OR LESS THAN THOSE SHOWN. FINANCIAL STATEMENTS. You can find the
financial statements of the Separate Account and Jackson National Life of NY in
the Statement of Additional Information. To obtain a copy free of charge,
contact us at our Annuity Service Center. Our contact information is on the
first page of this prospectus. CONDENSED FINANCIAL INFORMATION. The value of an
Accumulation Unit is determined on the basis of changes in the per share value
of an underlying fund and Separate Account charges. Please see Appendix F for
more information about Accumulation Unit values.
THE ANNUITY CONTRACT
Your Contract is a contract between you, the Owner, and us. Your Contract is
intended to help facilitate your retirement savings on a tax-deferred basis, or
other long-term investment purposes, and provides for a death benefit. Purchases
under tax-qualified plans should be made for other than tax deferral reasons.
Tax-qualified plans provide tax deferral that does not rely on the purchase of
an annuity Contract. We generally will not issue a Contract to someone older
than 90. You may allocate your Contract Values to our Fixed Account or to the
Investment Divisions. Your Contract, like all deferred annuity Contracts, has
two phases:
o the ACCUMULATION PHASE, when you make premium payments to us, and
o the INCOME PHASE, when we make income payments to you.
As the Owner, you can exercise all the rights under your Contract, including
assigning your Contract at any time during your lifetime. To be effective, an
assignment must be in writing (there is an assignment form) and sent to us for
recordation, but the effective date will be the date on which the Owner signed
the assignment form. Please contact our Annuity Service Center for help and more
information. An assignment may be a taxable event.
JACKSON NATIONAL LIFE OF NY
We are a stock life insurance company organized under the laws of the state of
New York in July 1995. Our legal domicile and principal business address is 2900
Westchester Avenue, Purchase, New York 10577. We are admitted to conduct life
insurance and annuity business in the states of Delaware, New York and Michigan.
We are ultimately a wholly owned subsidiary of Prudential plc (London, England).
We issue the Contracts and administer the Contracts and the Separate Account. We
maintain records of the name, address, taxpayer identification number and other
pertinent information for each Owner, the number and type of Contracts issued to
each Owner and records with respect to the value of each Contract.
Jackson National Life of NY is working to provide
statements/correspondence/information electronically. When this program is
available, Jackson National Life of NY will, if possible, forward
statements/correspondence/information electronically. Please contact us at our
Annuity Service Center for more information.
THE FIXED ACCOUNT
Premium that you allocate to the Fixed Account will be placed with other assets
in our General Account. The Fixed Account is not registered with the SEC, and
the SEC does not review the information we provide to you about it. Disclosures
regarding the Fixed Account, however, may be subject to the general provisions
of the federal securities laws relating to the accuracy and completeness of
statements made in prospectuses. Transfers out of the Fixed Account are subject
to contractual requirements.
The Fixed Account offers a base interest rate that we established and will
credit to the amount allocated to the Fixed Account for a six-month period. The
base interest rate is subject to your Contract's Fixed Account minimum interest
rate, which is 1.5% per annum, credited daily. Subject to this minimum
requirement, we may declare different base interest rates at different times.
Premium allocated to the Fixed Account (including any Contract Enhancement) will
be automatically transferred, on a monthly basis, to your choice of Investment
Division(s) within six months of the allocation so that, at the end of the
period, all amounts in the Fixed Account will have been transferred out. The
installment amount will be determined based on the amount allocated to the Fixed
Account and the credited interest rate. Charges, withdrawals and any additional
transfers (which are permitted at any time) taken from the Fixed Account will
shorten the length of time it takes to deplete the account balance. Automatic
transfers will not count against the 15 free transfers in a Contract Year.
Interest will continue to be credited daily on the account balance remaining in
the Fixed Account as funds are automatically transferred into your choice of
Investment Division options. However, the effective yield over the six-month
automatic transfer period will be less than the credited interest rate, as it
will be applied to a declining balance in the Fixed Account.
THE SEPARATE ACCOUNT
We established the Separate Account on September 12, 1997, pursuant to the
provisions of New York law. The Separate Account is a separate account and a
unit investment trust under federal securities law and is registered as an
investment company with the SEC.
The assets of the Separate Account legally belong to us and the obligations
under the Contracts are our obligations. However, we are not allowed to use the
Contract assets in the Separate Account to pay our liabilities arising out of
any other business we may conduct. All of the income, gains and losses resulting
from these assets (whether or not realized) are credited to or charged against
the Contracts and not against any other Contracts we may issue. The obligations
under the Contracts are our obligations.
The Separate Account is divided into Investment Divisions. We do not guarantee
the investment performance of the Separate Account or any of its Investment
Divisions.
INVESTMENT DIVISIONS [TO BE UPDATED BY AMENDMENT]
You can allocate your Contract Value to any or all of the Investment Divisions;
however, you may not allocate to more than 18 fixed and variable options at any
one time. Each Investment Division purchases the shares of one underlying fund
(mutual fund portfolio) that has its own investment objective. The Investment
Divisions are designed to offer the potential for a higher return than the Fixed
Account. HOWEVER, THIS IS NOT GUARANTEED. IT IS POSSIBLE FOR YOU TO LOSE YOUR
MONEY ALLOCATED TO ANY OF THE INVESTMENT DIVISIONS. If you allocate Contract
Values to the Investment Divisions, the amounts you are able to accumulate in
your Contract during the accumulation phase depends upon the performance of the
Investment Divisions you select. The amount of the income payments you receive
during the income phase also will depend, in part, on the performance of the
Investment Divisions you choose for the income phase.
THE FUNDS, INVESTMENT OBJECTIVES AND ADVISERS
[Enlarge/Download Table]
===================================== ========================================== =====================================
INVESTMENT ADVISER (AND
NAME OF FUND INVESTMENT OBJECTIVE SUB-ADVISER)
======================================================================================================================
JNL SERIES TRUST
----------------------------------------------------------------------------------------------------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/AIM Large Cap Growth Fund Seeks long-term growth of capital by Jackson National Asset
investing at least 80% of its assets (net Management, LLC (and AIM
assets plus the amount of any borrowings Capital Management, Inc.)
for investment purposes) in securities of
large-capitalization companies.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/AIM Small Cap Growth Fund Seeks long-term growth of capital by Jackson National Asset
normally investing at least 80% of its Management, LLC (and AIM
assets (net assets plus the amount of any Capital Management, Inc.)
borrowings for investment purposes) in
securities of small-cap companies.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Alger Growth Fund Seeks long-term capital appreciation by Jackson National Asset
investing at least 65% of its total Management, LLC (and Fred
assets in a diversified portfolio of Alger Management, Inc.)
equity securities - common stock,
preferred stock, and securities
convertible into or exchangeable for
common stock - of large companies which
trade on U.S. exchanges or in the U.S.
over-the-counter market.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Alliance Capital Growth Fund Seeks long-term growth of capital by Jackson National Asset
investing primarily in a diversified Management, LLC (and
portfolio of common stocks or securities Alliance Capital Management
with common stock characteristics that L.P.)
the sub-adviser believes have the
potential for capital appreciation, which
include securities convertible into or
exchangeable for common stock.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Eagle Core Equity Fund Seeks long-term capital appreciation and, Jackson National Asset
secondarily, current income by investing Management, LLC (and Eagle
at least 80% of its assets (net assets Asset Management, Inc.)
plus the amount of any borrowings for
investment purposes) in a diversified
portfolio of common stock of U.S.
companies that meet the criteria for one
of three separate equity strategies: the
growth equity strategy, the value equity
strategy and the equity income strategy.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Eagle SmallCap Equity Fund Seeks long-term capital appreciation by Jackson National Asset
investing at least 80% of its assets (net Management, LLC (and Eagle
assets plus the amount of any borrowings Asset Management, Inc.)
for investment purposes) in a diversified
portfolio of equity securities of U.S.
companies with market capitalizations in
the range of securities represented by
the Russell 2000(R)Index.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/FMR Balanced Fund Seeks income and capital growth, Jackson National Asset
consistent reasonable risk by investing Management, LLC (and
60% of its assets in securities and the Fidelity Management &
remainder in bonds and other debt Research Company)
securities.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/FMR Capital Growth Fund Seeks long-term growth of capital by Jackson National Asset
investing in securities issued by Management, LLC (and
medium-sized companies. Fidelity Management &
Research Company)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/JPMorgan International Value Fund Seeks high total return from a portfolio Jackson National Asset
of equity securities of foreign companies Management, LLC (and J.P.
in developed and, to a lesser extent, Morgan Investment
developing markets. Management, Inc.)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Lazard Mid Cap Value Fund Seeks capital appreciation by investing Jackson National Asset
at least 80% of its assets (net assets Management, LLC (and Lazard
plus the amount of any borrowings for Asset Management)
investment purposes) in a non-diversified
portfolio of equity securities of U.S.
companies with market capitalizations in
the range of companies represented in the
Russell Mid Cap Index and that the
sub-adviser believes are undervalued
based on their return on equity.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Lazard Small Cap Value Fund Seeks capital appreciation by investing Jackson National Asset
at least 80% of its assets (net assets Management, LLC (and Lazard
plus the amount of any borrowings for Asset Management)
investment purposes) in a non-diversified
portfolio of equity securities of U.S.
companies with market capitalizations in
the range of companies represented by the
Russell 2000(R)Index that the sub-adviser
believes are undervalued based on their
return on equity.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management S&P 500 Seeks to match the performance of the S&P Jackson National Asset
Index Fund 500(R) Index to provide long-term capital Management, LLC (and Mellon
growth by investing in Capital Management
large-capitalization company securities. Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management S&P 400 Seeks to match the performance of the S&P Jackson National Asset
MidCap Index Fund 400(R) Index to provide long-term capital Management, LLC (and Mellon
growth by investing in equity securities Capital Management
of medium capitalization weighted Corporation)
domestic corporations.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Small Cap Seeks to match the performance of the Jackson National Asset
Index Fund Russell 2000(R)Index to provide long-term Management, LLC (and Mellon
growth of capital by investing in equity Capital Management
securities of small- to mid-size domestic Corporation)
corporations.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Bond Index Seeks to match the performance of the Jackson National Asset
Fund Lehman Brothers Aggregate Bond Index to Management, LLC (and Mellon
provide a moderate rate of income by Capital Management
investing in domestic fixed-income Corporation)
investments.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Seeks to match the performance of the Jackson National Asset
International Index Fund Morgan Stanley Capital International Management, LLC (and Mellon
Europe Australasia Far East Free Index to Capital Management
provide long-term capital growth by Corporation)
investing in international equity
securities attempting to match the
characteristics of each country
within the index.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Enhanced S&P Seeks to exceed the performance of the Jackson National Asset
500 Stock Index Fund S&P 500 Index by tilting towards stocks Management, LLC (and Mellon
having higher expected return while Capital Management
maintaining overall index characteristics. Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Oppenheimer Global Growth Fund Seeks capital appreciation by investing Jackson National Asset
primarily in common stocks of companies Management, LLC (and
in the U.S. and foreign countries. The OppenheimerFunds, Inc.)
Fund can invest without limit in foreign
securities and can invest in any country,
including countries with developed or
emerging markets.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Oppenheimer Growth Fund Seeks capital appreciation by investing Jackson National Asset
mainly in common stocks of "growth Management, LLC (and
companies." The Fund currently focuses on OppenheimerFunds, Inc.)
stocks of companies having a large
capitalization (currently more than $12
billion) or mid-capitalization ($2
billion to $12 billion), but this focus
could change over time as well as the
companies the Fund considers to be
currently large- and mid-capitalization.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/PIMCO Total Return Bond Fund Seeks maximum total return, consistent Jackson National Asset
with the preservation of capital and Management, LLC (and
prudent investment management, by Pacific Investment
normally investing at least 80% of its Management Company LLC)
assets (net assets plus the amount of any
borrowings for investment purposes) in a
diversified portfolio of
investment-grade, fixed-income securities
of U.S. and foreign issuers such as
government, corporate, mortgage- and
other asset-backed securities and cash
equivalents.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Putnam Equity Fund Seeks long-term capital growth by Jackson National Asset
investing primarily in a diversified Management, LLC (and Putnam
portfolio of common stock of domestic, Investment Management, Inc.)
large-capitalization companies. However,
the Fund may also invest in preferred
stocks, bonds, convertible preferred
stock and convertible debentures if the
sub-adviser believes that they offer the
potential for capital appreciation.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Putnam International Equity Fund Seeks long-term growth of capital by Jackson National Asset
investing at least 80% of its assets (net Management, LLC (and Putnam
assets plus the amount of any borrowings Investment Management, Inc.)
for investment purposes) in a diversified
portfolio consisting primarily of common
stocks of non-U.S. companies. The Fund
invests in foreign securities that the
sub-adviser believes offer significant
potential for long-term appreciation.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Putnam Midcap Growth Fund Seeks capital appreciation by investing Jackson National Asset
mainly in common stocks of U.S. Management, LLC (and Putnam
mid-capitalization companies of a similar Investment Management,
size to those in the Russell Inc.)
MidCap(R) Growth Index, with a
focus on growth stocks which are
stocks whose earnings the
sub-adviser believes are likely to
grow faster than the economy as a
whole.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Putnam Value Equity Fund Seeks capital growth, with income as a Jackson National Asset
secondary objective, by investing Management, LLC (and Putnam
primarily in a diversified portfolio of Investment Management, Inc.)
equity securities of domestic,
large-capitalization companies. At least
80% of its assets (net assets plus the
amount of any borrowings for investment
purposes) will be invested, under normal
market conditions, in equity securities.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Salomon Brothers High Yield Bond Fund Seeks a high level of current income, Jackson National Asset
with capital appreciation as a secondary Management, LLC (and
objective, by investing at least 80% of Salomon Brothers Asset
its assets (net assets plus the amount of Management Inc.)
any borrowings for investment purposes)
in high-yield, high-risk debt securities
("junk bonds") and related investments
and may invest in securities of foreign
insurers.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Salomon Brothers Strategic Bond Fund Seeks a high level of current income, Jackson National Asset
with capital appreciation as a secondary Management, LLC (and
objective, by investing at least 80% of Salomon Brothers Asset
its assets (net assets plus the amount of Management Inc.)
any borrowings for investment purposes)
in a globally diverse portfolio of
fixed-income investments.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Salomon Brothers U.S. Government & Seeks a high level of current income by Jackson National Asset
Quality Bond Fund investing at least 80% of its assets (net Management, LLC (and
assets plus the amount of any borrowings Salomon Brothers Asset
for investment purposes) in: (i) U.S. Management Inc.)
Treasury obligations; (ii) obligations
issued or guaranteed by agencies or
instrumentalities of the U.S. Government
which are backed by their own credit and
may not be backed by the full faith and
credit of the U.S. Government; and (iii)
mortgage-backed securities guaranteed by
the Government National Mortgage
Association that are supported by the
full faith and credit of the U.S.
Government.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Select Balanced Fund Seeks reasonable income and long-term Jackson National Asset
capital growth by investing primarily in Management, LLC (and
a diversified portfolio of common stock Wellington Management
and investment grade fixed-income Company, LLP)
securities, but may also invest up to 15%
of its assets in foreign equity and fixed
income securities.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Select Global Growth Fund Seeks long-term growth of capital by Jackson National Asset
investing at least 80% of its assets (net Management, LLC (and
assets plus the amount of any borrowings Wellington Management
for investment purposes) in a diversified Company, LLP)
portfolio of equity securities of foreign
and domestic issuers.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Select Large Cap Growth Fund Seeks long-term growth of capital by Jackson National Asset
investing at least 80% of its assets (net Management, LLC (and
assets plus the amount of any borrowings Wellington Management
for investment purposes) in a diversified Company, LLP)
portfolio of common stocks of large U.S.
companies selected for their growth
potential.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Select Money Market Fund Seeks a high level of current income as Jackson National Asset
is consistent with the preservation of Management, LLC (and
capital and maintenance of liquidity by Wellington Management
investing in high quality, short-term Company, LLP)
money market instruments.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Select Value Fund Seeks long-term growth of capital by Jackson National Asset
investing at least 65% of its total Management, LLC (and
assets in common stocks of domestic Wellington Management
companies, focusing on companies with Company, LLP)
large market capitalizations.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/T. Rowe Price Established Growth Fund Seeks long-term growth of capital and Jackson National Asset
increasing dividend income by investing Management, LLC (and T.
primarily in a diversified portfolio of Rowe Price Associates, Inc.)
common stocks of well-established U.S.
growth companies.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/T. Rowe Price Mid-Cap Growth Fund Seeks long-term growth of capital by Jackson National Asset
normally investing at least 80% of its Management, LLC (and T.
assets (net assets plus the amount of any Rowe Price Associates,
borrowings for investment purposes) in a Inc.)
diversified portfolio of common stocks of
medium-sized (mid-cap) U.S. companies
which the sub-adviser expects to grow at
a faster rate than the average company.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/T. Rowe Price Value Fund Seeks long-term capital appreciation by Jackson National Asset
investing in common stocks believed to be Management, LLC (and T.
undervalued. Income is a secondary Rowe Price Associates,
objective. In taking a value approach to Inc.)
investment selection, at least 65% of its
total assets will be invested in common
stocks the portfolio manager regards as
undervalued.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/S&P Managed Conservative Fund Seeks capital growth and current income Jackson National Asset
by investing in Class A Shares of a Management, LLC (and
diversified group of other Funds of the Standard & Poor's
JNL Series Trust and JNL Variable Fund Investment Advisory
LLC that invest in equity and fixed Services, Inc.)
income securities.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/S&P Managed Moderate Fund Seeks capital growth, with current income Jackson National Asset
as a secondary objective, by investing in Management, LLC (and
Class A Shares of a diversified group of Standard & Poor's
other Funds of the JNL Series Trust and Investment Advisory
JNL Variable Fund LLC that invest in Services, Inc.)
equity and fixed income securities.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/S&P Managed Aggressive Growth Fund Seeks capital growth by investing in Jackson National Asset
Class A Shares of a diversified group of Management, LLC (and
other Funds of the JNL Series Trust and Standard & Poor's
JNL Variable Fund LLC that invest in Investment Advisory
equity and fixed income securities. Services, Inc.)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/S&P Managed Moderate Growth Fund Seeks capital growth and current income Jackson National Asset
by investing in Class A Shares of a Management, LLC (and
diversified group of other Funds of the Standard & Poor's
JNL Series Trust and JNL Variable Fund Investment Advisory
LLC that invest in equity and fixed Services, Inc.)
income securities.
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/S&P Managed Growth Fund Seeks capital growth, with current income Jackson National Asset
as a secondary objective, by investing in Management, LLC (and
Class A Shares of a diversified group of Standard & Poor's
other Funds of the JNL Series Trust and Investment Advisory
JNL Variable Fund LLC that invest in Services, Inc.)
equity and fixed income securities.
-------------------------------------------- ------------------------------------------- -----------------------------
JNLNY VARIABLE FUND I LLC
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management The DowSM 10 Seeks total return through a combination Jackson National Asset
Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management The S&P(R) 10 Seeks total return through a combination Jackson National Asset
Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Global 15 Seeks total return through a combination Jackson National Asset
of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management 25 Fund Seeks total return through a combination Jackson National Asset
of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Select Seeks total return through a combination Jackson National Asset
Small-Cap Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management NASDAQ(R)15 Seeks total return by investing in the Jackson National Asset
Fund common stocks of companies that are Management, LLC (and Mellon
expected to have a potential for capital Capital Management
appreciation. Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Value Line(R) Seeks capital appreciation by investing Jackson National Asset
25 Fund in 25 of the 100 common stocks that Management, LLC (and Mellon
Value Line(R)gives a #1 ranking for Capital Management
TimelinessTM. Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
JNL VARIABLE FUND LLC
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Seeks total return through a combination Jackson National Asset
Communications Sector Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Consumer Seeks total return through a combination Jackson National Asset
Brands Sector Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Energy Seeks total return through a combination Jackson National Asset
Sector Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Financial Seeks total return through a combination Jackson National Asset
Sector Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Seeks total return through a combination Jackson National Asset
Pharmaceutical/Healthcare Sector Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management Technology Seeks total return through a combination Jackson National Asset
Sector Fund of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management VIP Fund Seeks total return by investing in the Jackson National Asset
common stocks of companies that are Management, LLC (and Mellon
identified by a model based on six Capital Management
separate specialized strategies. Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
-------------------------------------------- ------------------------------------------- -----------------------------
JNL/Mellon Capital Management JNL 5 Fund Seeks total return through a combination Jackson National Asset
of capital appreciation and dividend Management, LLC (and Mellon
income. Capital Management
Corporation)
-------------------------------------------- ------------------------------------------- -----------------------------
The investment objectives and policies of certain Funds are similar to the
investment objectives and policies of other mutual funds that the Fund's
investment sub-advisers also manage. Although the objectives and policies may be
similar, the investment results of the Fund may be higher or lower than the
result of those other mutual funds. We cannot guarantee, and make no
representation, that the investment results of similar funds will be comparable
even though the funds have the same investment advisers. The Funds described are
available only through variable annuity Contracts issued by Jackson National
Life of NY. They are NOT offered or made available to the general public
directly. A Fund's performance may be affected by risks specific to certain
types of investments, such as foreign securities, derivative investments,
non-investment grade debt securities, initial public offerings (IPOs) or
companies with relatively small market capitalizations. IPOs and other
investment techniques may have a magnified performance impact on a Fund with a
small asset base. A Fund may not experience similar performance as its assets
grow.
You should read the prospectus for the JNL Series Trust, JNL Variable Fund LLC
and the JNLNY Variable Fund I LLC carefully before investing. Additional Funds
and Investment Divisions may be available in the future.
VOTING PRIVILEGES. To the extent required by law, we will obtain instructions
from you and other Owners about how to vote our shares of a Fund when there is a
vote of shareholders of a Fund. We will vote all the shares we own in proportion
to those instructions from Owners.
SUBSTITUTION. We reserve the right to substitute a different Fund or a different
mutual fund for the one in which any Investment Division is currently invested,
or transfer money to the General Account. We will not do this without any
required approval of the SEC. We will give you notice of any substitution.
CONTRACT CHARGES
There are charges associated with your Contract, the deduction of which will
reduce the investment return of your Contract. Some of these charges are for
optional endorsements, as noted, so they are deducted from your Contract Value
only if you selected to add that optional endorsement to your Contract. These
charges may be a lesser amount as described below, but will not be increased. We
expect to profit from certain charges assessed under the Contract. These charges
(and certain other expenses) are as follows:
MORTALITY AND EXPENSE RISK CHARGES. Each day, as part of our calculation of the
value of the Accumulation Units and Annuity Units, we make a deduction for
mortality and expense charges. On an annual basis, these charges equal 1.50% of
the average daily net asset value of your allocations to the Investment
Divisions. This charge does not apply to the Fixed Account. This charge
compensates us for the risks we assume in connection with all the Contracts, not
just your Contract. Our mortality risks under the Contracts arise from our
obligations:
o to make income payments for the life of the Annuitant during the
income phase; and
o to provide a basic death benefit prior to the Income Date.
Our expense risks under the Contracts include the risk that our actual cost of
administering the Contracts and the Investment Divisions may exceed the amount
that we receive from the administration charge and the annual contract
maintenance charges.
ANNUAL CONTRACT MAINTENANCE CHARGE. During the accumulation phase, we deduct a
$30 annual contract maintenance charge on each anniversary of the Issue Date. We
will also deduct the annual contract maintenance charge if you make a total
withdrawal. This charge is for administrative expenses. The annual contract
maintenance charge will be assessed on the Contract Anniversary or upon full
withdrawal and is taken from the Investment Divisions and the Fixed Account
based on the proportion their respective values bear to the Contract Value. We
will not deduct this charge, if when the deduction is to be made, the value of
your Contract is $50,000 or more.
ADMINISTRATION CHARGE. Each day, as part of our calculation of the value of the
Accumulation Units and Annuity Units, we make a deduction for administration
charges. On an annual basis, these charges equal 0.15% of the average daily net
asset value of your allocations to the Investment Divisions. This charge does
not apply to the Fixed Account. This charge compensates us for our expenses
incurred in administering the Contracts and the Separate Account.
TRANSFER CHARGE. You must pay $25 for each transfer in excess of 15 in a
Contract Year. This charge is deducted from the amount that is transferred prior
to the allocation to the new Allocation Option. We waive the transfer charge in
connection with dollar cost averaging, rebalancing transfers and any transfers
we require.
CONTRACT ENHANCEMENT CHARGE. A 2% Contract Enhancement is available to select
for a charge that equals 0.395% on an annual basis for a period of five Contract
Years. This charge will be imposed based upon the average daily net asset value
of your allocations to the Investment Divisions. This charge will also be
assessed against any amounts you have allocated to the Fixed Account by reducing
the base rate accordingly, but never below the minimum guaranteed interest rate
(assuming no withdrawals). Due to this charge, it is possible that upon
surrender, you will receive less money back than if you had not elected the
Contract Enhancement.
CONTRACT ENHANCEMENT RECAPTURE CHARGE. If you select the 2% Contract Enhancement
and then make a partial or total withdrawal from your Contract in the five years
since the premium payment withdrawn was made, you will pay a Contract
Enhancement recapture charge that reimburses us for all or part of the Contract
Enhancement that we credited to your Contract based on your first year premiums.
Your Contract will also be subject to a recapture charge if you return it during
the free look period. The amount of the charge is as follows:
[Download Table]
CONTRACT ENHANCEMENT RECAPTURE CHARGE (AS A PERCENTAGE OF THE
CORRESPONDING FIRST YEAR PREMIUM PAYMENT WITHDRAWN IF THE OPTIONAL
CONTRACT ENHANCEMENT IS SELECTED)
Completed Years Since Receipt of 0 1 2 3 4 5+
Premium Payment
Recapture Charge 2% 2% 1.25% 1.25% 0.5% 0
However, we do not assess the recapture charge on any amounts paid out as death
benefits, income payments, or withdrawals necessary to satisfy the minimum
distribution requirements of the Internal Revenue Code (but if the requested
withdrawal exceeds the minimum distribution requirements, then the entire
withdrawal will be assessed the applicable recapture charge).
7% GUARANTEED MINIMUM WITHDRAWAL BENEFIT CHARGE. If you select the 7% GMWB, you
will pay 0.40% on an annual basis of the average daily net asset value of your
allocations to the Investment Divisions. We reserve the right to prospectively
increase the charge on new issues, upon election of the benefit after issue or
upon any election of any "step-up" subject to a maximum charge of 0.70%. The
"step-up" is explained on page 49 below. We stop deducting this charge upon the
earlier of the date you annuitize or the date your Contract Value falls to zero.
5% FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT CHARGE. If you select the 5%
For Life GMWB, you will pay a charge on an annual basis of the average daily net
asset value of your allocations to the Investment Divisions that varies with the
Owner's age, or with the age of the older Owner in the case of joint Owners.
Currently, for an Owner between the ages of:
60 and 64......................................................0.90%
65 and 69......................................................0.60%
70 and 74......................................................0.50%
75 and 80......................................................0.40%
We reserve the right to prospectively increase the charge on new issues or upon
the selection of this benefit after issue, subject to the maximum annual charges
for the same age groups, which are: 1.30%; 0.85%; 0.60%; and 0.50%,
respectively. The charge may be reduced on the next Contract Anniversary
following a birthday that places the Owner (or older Owner, as applicable) in
the next age group if no withdrawals have been taken before that time. However,
this charge reduction is not available upon the spouse's continuation of the
Contract. We will stop deducting the charge upon the earliest of either the date
you annuitized or if your Contract value falls to zero.
4% FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT CHARGE. If you select the 4%
For Life GMWB, you will pay a charge on an annual basis of the average daily net
asset value of your allocations to the Investment Divisions that varies with the
Owner's age, or with the age of the older Owner in the case of joint Owners.
Currently, for an Owner between the ages of:
50 and 54......................................................0.65%
55 and 59......................................................0.50%
60 and 64......................................................0.35%
65 and 69......................................................0.25%
70 and 74......................................................0.20%
75 and 80......................................................0.15%
We reserve the right to prospectively increase the charge on new issues or upon
the selection of this benefit after issue, subject to the maximum annual charges
for the same age groups, which are: 0.85%; 0.65%; 0.50%; 0.35%; 0.30%; and
0.20%, respectively. The charge may be reduced on the next Contract Anniversary
following a birthday that places the Owner (or older Owner, as applicable) in
the next age group if no withdrawals have been taken before that time. However,
this charge reduction is not available upon the spouse's continuation of the
Contract. We will stop deducting the charge upon the earliest of either the date
you annuitized or if your Contract value falls to zero.
DEATH BENEFIT CHARGES. There is no charge for the Contract's basic death
benefit. However, for an additional charge, you may select the Contract's
available optional death benefit in place of the basic death benefit. The
optional death benefit is the Highest Anniversary Value Death Benefit and you
will pay 0.25% on an annual basis of the average daily net asset value of your
allocations to the Investment Divisions. We stop deducting this charge on the
date you annuitize.
OTHER EXPENSES. We pay the operating expenses of the Separate Account including
those not covered by the mortality and expense and administrative charge. There
are deductions from and expenses paid out of the assets of the Fund. These
expenses are described in the attached prospectus for the JNL Series Trust, JNL
Variable Fund LLC and the JNLNY Variable Fund I LLC.
Certain Funds pay Jackson National Asset Management, LLC, the adviser, an
administrative fee for certain services provided to the Fund by the adviser. The
JNL/Select Global Growth Fund, the JNL/JPMorgan International Value Fund, the
JNL/Oppenheimer Global Growth Fund, the JNL/Putnam International Equity Fund and
all of the JNL/Mellon Capital Management Funds except the JNL/Mellon Capital
Management S&P 500 Index Fund, JNL/Mellon Capital Management S&P 400 MidCap
Index Fund, JNL/Mellon Capital Management Small Cap Index Fund, JNL/Mellon
Capital Management Bond Index Fund, JNL/Mellon Capital Management Enhanced S&P
500 Stock Index Fund and the JNL/Mellon Capital Management Global 15 Fund pay an
administrative fee of 0.15%; the JNL/Mellon Capital Management Global 15 Fund
pays an administrative fee of 0.20%; the five JNL/S&P Funds pay an
administrative fee of 0.05%; the other Funds pay an administrative fee of 0.10%.
The administrative fees are paid to Jackson National Asset Management, LLC.
PREMIUM TAXES. We pay any premium taxes and may make a deduction from your
Contract Values for them. Currently, the deduction is *% of a premium payment.
INCOME TAXES. We reserve the right, when calculating unit values, to deduct a
credit or charge with respect to any taxes we have paid or reserved for during
the valuation period that we determine to be attributable to the operation of an
Investment Division. No federal income taxes are applicable under present law,
and we are not presently making any such deduction.
DISTRIBUTION OF CONTRACTS. Jackson National Life Distributors, Inc., located at
8055 E. Tufts Avenue, Denver, Colorado 80237, serves as the distributor of the
Contracts. Jackson National Life Distributors, Inc. is a wholly owned subsidiary
of Jackson National Life Insurance Company, Jackson National Life of NY's
parent.
Commissions are paid to broker-dealers who sell the Contracts. While commissions
may vary, they are not expected to exceed 4% of any premium payment. We may pay
trail commissions. We may also pay commissions on the Income Date if the annuity
option selected involves a life contingency or a payout over a period of ten or
more years. Under certain circumstances, we may pay bonuses, overrides and
marketing allowances, in addition to the standard commissions. Contract
purchasers should inquire of the representative if such bonus is available to
them and its compliance with applicable law. We may, under certain circumstances
where permitted by applicable law, pay a bonus to a Contract purchaser to the
extent the broker-dealer waives its commission. We may use any of our corporate
assets to cover the cost of distribution, including any profit from the
Contract's mortality and expense risk charge and other charges. We are
affiliated with the following broker-dealers:
o National Planning Corporation,
o SII Investments, Inc.,
o IFC Holdings, Inc. D/B/A Invest Financial Corporation, and
o Investment Centers of America, Inc.
The Distributor also has the following relationships with the sub-advisers and
their affiliates. The Distributor receives payments from certain sub-advisers to
assist in defraying the costs of certain promotional and marketing meetings in
which they participate. The amounts paid depend on the nature of the meetings,
the number of meetings attended, the costs expected to be incurred and the level
of the sub-adviser's participation. National Planning Corporation participates
in the sales of shares of retail mutual funds advised by certain sub-advisers
and other unaffiliated entities and receives selling and other compensation from
them in connection with those activities, as described in the prospectus or
statement of additional information for those funds. The fees range between
0.30% and 0.45% depending on these factors. In addition, the Distributor acts as
distributor of variable annuity Contracts and variable life insurance policies
(the "Other Contracts") issued by Jackson National NY and Jackson National Life
Insurance Company, its parent. Raymond James Financial Services, a brokerage
affiliate of the sub-adviser to the JNL/Eagle Funds, participates in the sale of
Contracts and is compensated by JNLD for its activities at the standard rates of
compensation. Unaffiliated broker-dealers are also compensated at the standard
rates of compensation. The compensation consists of commissions, trail
commissions and other compensation or promotional incentives as described above
and in the prospectus or statement of additional information for the Other
Contracts.
PURCHASES
MINIMUM INITIAL PREMIUM:
o $25,000 under most circumstances.
MINIMUM ADDITIONAL PREMIUMS:
o $2,000 for a qualified plan.
o $5,000 for a non-qualified plan.
o You can pay additional premiums at any time during the accumulation
phase.
These minimums apply to purchases, but do not preclude subsequent partial
withdrawals that would reduce Contract Values below the minimum initial purchase
amounts.
MAXIMUM PREMIUMS:
o The maximum aggregate premiums you may make without our prior approval
is $1 million.
The payment of subsequent premium payments relative to market conditions at the
time they are made may or may not contribute to the various benefits under your
Contract, including the death benefit and any GMWB.
ALLOCATIONS OF PREMIUM. You may allocate your premiums to one or more of the
available fixed and variable options. Each allocation must be a whole percentage
between 0% and 100%. The minimum amount you may allocate to the Fixed Account or
an Investment Division is $100. We will allocate any additional premiums you pay
in the same way unless you instruct us otherwise. These allocations will be
subject to our minimum allocation rules described above.
Although more than 18 Investment Divisions are available under your Contract,
you may not allocate your Contract Values among more than 18 Investment
Divisions at any one time.
We will issue your Contract and allocate your first premium within two business
days (days when the New York Stock Exchange is open) after we receive your first
premium and all information that we require for the purchase of a Contract. If
we do not receive all of the information that we require, we will contact you to
get the necessary information. If for some reason we are unable to complete this
process within five business days, we will either return your money or get your
permission to keep it until we receive all of the required information.
Each business day ends when the New York Stock Exchange closes, usually 4:00
p.m. Eastern time.
OPTIONAL CONTRACT ENHANCEMENT. If you elect the 2% Contract Enhancement
endorsement, then at the end of any business day in the first Contract Year when
we receive a premium payment, we will credit your Contract Values with an
additional 2% of your payment. There is a charge that is assessed against the
Investment Divisions and the Fixed Account for the Contract Enhancement. We will
impose a Contract Enhancement recapture charge if you: make a withdrawal during
the recapture charge period, including an amount meant to satisfy the minimum
distribution requirements that exceeds the minimum distribution amount; or
return your Contract during the Free Look period.
We will not impose the Contract Enhancement recapture charge on withdrawals of
earnings, amounts paid out as income payments or death benefits or amounts
withdrawn to satisfy minimum distribution requirements of the Internal Revenue
Code. If the withdrawal requested exceeds the minimum distribution requirements,
the recapture charge will be charged on the entire withdrawal amount. We expect
to make a profit on these charges. Examples in Appendix B may assist you in
understanding how the recapture charge works.
Your Contract Value will reflect the Contract Enhancement and any gains or
losses attributable to it. The Contract Enhancement, and any gains attributable
to the Contract Enhancement, distributed under your Contract will be considered
earnings under the Contract for tax purposes.
If you elect the Contract Enhancement and then make more than relatively small
premium payments during Contract Years two through five, you would likely have
lower account values than if you had not elected the Contract Enhancement. Thus,
the Contract Enhancement is suitable only for those who expect to make
substantially all of their premium payments in the first Contract Year. Charges
for the Contract Enhancement are not assessed after the fifth Contract Year.
The increased Contract Value resulting from the Contract Enhancement is reduced
during the first five Contract Years by the operation of the Contract
Enhancement Charge. If you make premium payments only in the first Contract Year
and do not make a withdrawal during the first five years, at the end of the
five-year period that the Contract Enhancement Charge is applicable, the
Contract Value will be equal to or slightly higher than if you had not selected
the Contract Enhancement endorsement, regardless of investment performance.
Contract values may also be higher if you pay additional premium payments in the
first Contract Year, because those additional amounts will be subject to the
Contract Enhancement Charge for less than five full years.
In the first five Contract Years, the Contract Enhancement typically will be
beneficial (even in circumstances where cash surrender value may not be higher
than Contracts without the Contract Enhancement) for death benefits computed on
the basis of Contract Value and withdrawals necessary to satisfy the minimum
distribution requirements of the Internal Revenue Code.
ACCUMULATION UNITS. Your Contract Value allocated to the Investment Divisions
will go up or down depending on the performance of the Investment Divisions you
select. In order to keep track of the value of your Contract during the
accumulation phase, we use a unit of measure called an "Accumulation Unit."
During the income phase we use a measure called an "Annuity Unit." Every
business day, we determine the value of an Accumulation Unit for each of the
Investment Divisions by:
o determining the total amount of assets held in the particular
Investment Division;
o subtracting any charges and taxes chargeable under the Contract; and
o dividing this amount by the number of outstanding Accumulation Units.
The value of an Accumulation Unit may go up or down from day to day and may be
different for different charges.
When you make a premium payment, we credit your Contract with Accumulation
Units. The number of Accumulation Units we credit is determined at the close of
that business day by dividing the amount of the premium allocated to any
Investment Division by the value of the Accumulation Unit for that Investment
Division.
TRANSFERS
You may transfer your Contract Value among the Investment Divisions at any time.
Transfers from the Fixed Account to an Investment Division must occur prior to
the Income Date. Transfers from the Fixed Account to an Investment Division must
occur prior to the Income Date. Transfers from an Investment Division to the
Fixed Account are not allowed at any time. You can make 15 transfers every
Contract Year during the accumulation phase without charge.
A transfer will be effective as of the end of the business day when we receive
your transfer request in Good Order.
RESTRICTIONS ON TRANSFERS. To the extent permitted by applicable law, we reserve
the right to restrict the number of transfers per year that you can request and
to restrict you from making transfers on consecutive business days. In addition,
your right to make transfers among Investment Divisions may be modified if we
determine that the exercise by one or more Contract Owners is, or would be, to
the disadvantage of other Owners. Restrictions may be applied in any manner
reasonably designed to prevent any use of the transfer right which we consider
to be to the disadvantage of other Owners. A modification could be applied to
transfers to or from one or more of the Investment Divisions, and could include,
but are not limited to:
o requiring a minimum time period between each transfer;
o limiting transfer requests from an agent acting on behalf of one or
more Contract Owners or under a power of attorney on behalf of one or
more Contract Owners; or
o limiting the dollar amount that you may transfer at any one time.
If we identify a pattern of frequent trading in and out of the Investment
Divisions, we place the Contract on a watch list. If the trading pattern
continues, we may terminate the transfer privileges, terminate electronic or
telephone transfer privileges, or require the transfer instructions to be mailed
through regular U.S. postal service, as necessary. We do not exempt any person
or class of persons from this policy. We reserve the right to change, terminate,
limit or suspend the transfer provisions at any time. If we limit the transfer
privileges, you may need to make a partial surrender to access the value of the
Contract in the Investment Divisions from which you sought a transfer. We will
notify you and your representative in writing within five days after the pattern
of frequent trading is identified.
We will restrict round trip transfers made within 15 calendar days. We will
allow redemptions from an Investment Division, however, once a complete or
partial redemption has been made from an Investment Division through an
Investment Division transfer, you will not be permitted to transfer Contract
Value back into that Investment Division within 15 calendar days of the
redemption. This restriction will not apply to the money market Investment
Division, Dollar Cost Averaging, or the Automatic Rebalancing program. We will
treat as short-term trading activity any transfer that is requested into an
Investment Division that was previously redeemed within the previous 15 days
whether the transfer was requested by you or a third party. This restriction is
designed to prevent abusive trading practices. If we determine that our goal of
curtailing abusive trading practices is not being fulfilled, we may amend or
replace the procedure described above without prior notice. We will consider
waiving the procedure described above for unanticipated financial emergencies.
Please contact our Annuity Service Center if your transfer request entails what
you believe is a financial emergency.
TELEPHONE AND INTERNET TRANSACTIONS
THE BASICS. You can request certain transactions by telephone or at
www.jnlny.com, our Internet website, subject to our right to terminate
electronic or telephone transfer privileges, as described above. Our Annuity
Service Center representatives are available during business hours to provide
you with information about your account. We require that you provide proper
identification before performing transactions over the telephone or through our
Internet website. For Internet transactions, this will include a Personal
Identification Number (PIN). You may establish or change your PIN at
www.jnlny.com.
WHAT YOU CAN DO AND HOW. You may make transfers by telephone or through the
Internet unless you elect not to have this privilege. Any authorization you
provide to us in an application, at our web-site or through other means will
authorize us to accept transaction instructions, including Investment Division
transfers/allocations, by you and your financial representative unless you
notify us to the contrary. To notify us, please call us at the Annuity Service
Center number referenced in your Contract or on your quarterly statement.
WHAT YOU CAN DO AND WHEN. When authorizing a transfer, you must complete your
telephone call by the close of the New York Stock Exchange (usually 4:00 p.m.
Eastern time) in order to receive that day's Accumulation Unit value for an
Investment Division. Transfer instructions you send electronically are
considered to be received by us at the time and date stated on the electronic
acknowledgement we return to you. If the time and date indicated on the
acknowledgement is before the close of the New York Stock Exchange, the
instructions will be carried out that day. Otherwise the instructions will be
carried out the next business day. We will retain permanent records of all
web-based transactions by confirmation number. If you do not receive an
electronic acknowledgement, you should telephone our Annuity Service Center
immediately.
HOW TO CANCEL A TRANSACTION. You may only cancel an earlier telephone or
electronic transfer requests made on the same day by calling the Service Center
before the New York Stock Exchange closes. Otherwise, your cancellation
instruction will not be allowed because of the round trip transfer restriction.
OUR PROCEDURES. Our procedures are designed to provide reasonable assurance that
telephonic or electronic authorizations are genuine. Our procedures include
requesting identifying information and tape-recording telephone communications,
and other specific details. We and our affiliates disclaim all liability for any
claim, loss or expense resulting from any alleged error or mistake in connection
with a transaction requested by telephone or other electronic means that you did
not authorize. However, if we fail to employ reasonable procedures to ensure
that all requested transactions are properly authorized, we may be held liable
for such losses.
We do not guarantee access to telephonic and electronic information or that we
will be able to accept transaction instructions via the telephone or electronic
means at all times. We also reserve the right to modify, limit, restrict or
discontinue at any time and without notice the acceptance of instruction from
someone other than you and/or this telephonic and electronic transaction
privilege. Elections of any optional benefit or program must be in writing and
will be effective upon receipt of the request in Good Order.
Upon notification of the Owner's death, any telephone transfer authorization,
other than by the surviving joint Owners, designated by the Owner ceases and we
will not allow such transactions unless the executor/representative provides
written authorization for a person or persons to act on the
executor's/representative's behalf.
ACCESS TO YOUR MONEY
You can have access to the money in your Contract:
o by making either a partial or complete withdrawal;
o by electing the Systematic Withdrawal Program;
o by electing a Guaranteed Minimum Withdrawal Benefit, or
o by electing to receive income payments.
Your Beneficiary can have access to the money in your Contract when a death
benefit is paid.
When you make a complete withdrawal you will receive the value of your Contract
on the day your request is received by us in good order, MINUS any applicable
premium tax, annual contract maintenance charges and charges due under any
optional endorsement.
Your withdrawal request must be in writing. We will accept withdrawal requests
submitted via facsimile. There are risks associated with not requiring original
signatures in order to disburse the money.
Except in connection with the systematic withdrawal program, you must withdraw
at least $500 or, if less, the entire amount in the Fixed Account or Investment
Division from which you are making the withdrawal. A withdrawal request that
would reduce the remaining Contract Value to less than $100 will be treated as a
request for a complete withdrawal. After your withdrawal, at least $100 must
remain in each Fixed Account or Investment Division from which the withdrawal
was taken.
INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY WITHDRAWAL
YOU MAKE. THERE ARE LIMITATIONS ON WITHDRAWALS FROM QUALIFIED PLANS. SEE
"TAXES."
7% GUARANTEED MINIMUM WITHDRAWAL BENEFIT. THE FOLLOWING DESCRIPTION OF THE 7%
GMWB IS SUPPLEMENTED BY SOME EXAMPLES IN APPENDIX C THAT MAY ASSIST YOU IN
UNDERSTANDING HOW THE 7% GMWB CALCULATIONS ARE MADE IN CERTAIN CIRCUMSTANCES.
For Owners 80 years old and younger on the Contract's Issue Date, or on the date
on which this endorsement is selected if after the Contract's Issue Date, a 7%
GMWB may be available, which permits an Owner to make partial withdrawals, prior
to the Income Date that, in total, are guaranteed to equal the Guaranteed
Withdrawal Balance (GWB) (as defined below), regardless of your Contract Value.
We may limit availability of this optional endorsement. Once selected, the 7%
GMWB cannot be canceled. If you select the 7% GMWB when you purchase your
Contract, your net premium payment will be used as the basis for determining the
GWB. The 7% GMWB may also be selected after the Issue Date within the 30 days
before any Contract Anniversary. If you select the 7% GMWB after the Issue Date,
to determine the GWB, we will use your Contract Value less any recapture charges
that would be paid were you to make a full withdrawal on the date the
endorsement is added. However, the GWB can never be more than $5 million, and
the GWB is reduced with each withdrawal you take.
Once the GWB has been determined, we calculate the Guaranteed Annual Withdrawal
Amount (GAWA), which is the maximum annual partial withdrawal amount. Upon
selection, the GAWA is equal to 7% of the GWB. The GAWA will not be reduced if
partial withdrawals taken within any one Contract Year do not exceed 7%.
However, withdrawals are not cumulative. If you do not take 7% in one Contract
Year, you may not take more than 7% the next Contract Year. If you withdraw more
than the 7%, the guaranteed amount available may be less than the total premium
payments and the GAWA may be reduced. Contract Enhancement recapture charges
that may apply are also taken into consideration in calculating your withdrawal
amount. The GAWA can be divided up and taken on a payment schedule that you
request. You can continue to take the GAWA each Contract Year until the GWB has
been depleted.
Any time a subsequent premium payment is made, we recalculate the GWB and the
GAWA. Each time you make a premium payment, the GWB is increased by the amount
of the net premium payment. Also, the GAWA will increase by 7% of the increase
in the GWB. We reserve the right to restrict subsequent premium payments and the
total GWB.
If the total of your partial withdrawals made in the current Contract Year are
greater than the GAWA, we will recalculate your GWB and your GAWA may be lower
in the future. Recalculation of the GWB and GAWA may result in reducing or
extending the payout period. Please refer to the examples in Appendix C for
supplemental information about the impact of partial withdrawals.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is less than or equal to the GAWA, the GWB is equal to the greater
of:
o the GWB prior to the partial withdrawal less the partial withdrawal;
or
o zero.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA, the GWB is equal to the lesser of:
o the Contract Value after the partial withdrawal, less any applicable
recapture charges remaining after the partial withdrawal; or
o the GWB prior to the partial withdrawal less the partial withdrawal,
or zero, if greater.
If all your partial withdrawals made in the current Contract Year are less than
or equal to the GAWA, the GAWA is the lesser of:
o the GAWA prior to the partial withdrawal; or
o the GWB after the partial withdrawal.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA, the GAWA is equal to the lesser of:
o the GAWA prior to the partial withdrawal, or
o the GWB after the partial withdrawal, or
o 7% of the greater of:
1. the Contract Value after the partial withdrawal, less any
applicable recapture charges remaining after the partial
withdrawal; or
2. the GWB after the partial withdrawal.
For purposes of these calculations, all partial withdrawals are assumed to be
the total amount withdrawn, including any applicable charges and adjustments.
Withdrawals made under the guarantee of this endorsement are considered to be
the same as any other partial withdrawals for the purposes of calculating any
other values under the Contract and any other endorsements. They are subject to
the same restrictions and processing rules as described in the Contract.
On or after your fifth Contract Anniversary after selecting the 7% GMWB, you may
choose to "step-up" the GWB to equal your then current Contract Value. The
request will be processed and effective on the day we receive the request in
Good Order. Your GAWA then becomes the greater of: (i) 7% of the Contract Value
on the effective date of the "step-up" or (ii) the GAWA prior to the "step-up. "
You would not choose a "step-up" if your current GWB is higher than your
Contract Value. More than one "step up" is permitted, but there must be at least
five years between "step ups." Before deciding to "step-up," please consult with
the registered representative who helped you to purchase the Contract or contact
us at our Annuity Service Center.
SPOUSAL CONTINUATION. If the Contract is continued by the spouse, the spouse
retains all rights previously held by the Owner and therefore may elect to add
the 7% GMWB feature to the Contract within the 30 days prior to any Contract
Anniversary following the continuation date of the original Contract's Issue
Date. The 7% GMWB endorsement becomes effective on the Contract Anniversary
following receipt of the request in Good Order.
If the spouse continues the Contract and the 7% GMWB endorsement already applies
to the Contract, the 7% GMWB will continue and no adjustment will be made to the
GWB or the GAWA at the time of continuation. Your spouse may elect to "step-up"
on the continuation date. If the Contract is continued under the Special Spousal
Continuation Option, the value applicable upon "step-up" is the Contract Value,
including any adjustments applied on the continuation date. Any subsequent
"step-up" must follow the "step-up" restrictions listed above (Contract
anniversaries will continue to be based on the anniversary of the original
Contract's Issue Date).
SURRENDER. If your Contract is surrendered, you will receive the Contract Value
less any applicable charges and adjustments and not the GWB or the GAWA you
would have received under the 7% GMWB Endorsement. The 7% GMWB is terminated.
CONTRACT VALUE IS ZERO. If your Contract Value is reduced to zero as the result
of a partial withdrawal or poor fund performance and the GWB after the
withdrawal is greater than zero, the GWB will be paid to you on a periodic basis
elected by you, which will be no less frequently than annually. The total annual
payment will equal the GAWA, but will not exceed the current GWB. The total
payments will not exceed the current GWB.
All other rights under your Contract cease and we will no longer accept
subsequent premium payments and all optional endorsements are terminated without
value. Upon your death as the Owner, your Beneficiary will receive the scheduled
payments. No other death benefit will be paid.
ANNUITIZATION. If you decide to annuitize your Contract, you may choose the
following income option instead of one of the other income options listed in
your Contract.
FIXED PAYMENT INCOME OPTION. This income option provides payments in a fixed
dollar amount for a specific number of years. The actual number of years that
payments will be made is determined on the calculation date by dividing the GWB
by the GAWA. Upon each payment, the GWB will be reduced by the payment amount.
The total annual amount payable will equal the GAWA but will never exceed the
current GWB. This annualized amount will be paid over the specific number of
years in the frequency (no less frequently than annually) that you select. If
you should die before the payments have been completed, the remaining payments
will be made to the Beneficiary.
This income option may not be available if the Contract is issued to qualify
under Sections 401, 403, 408 or 457 of the Internal Revenue Code. For such
Contracts, this income option will only be available if the guaranteed period is
less than the life expectancy of the Annuitant at the time the option becomes
effective.
EFFECT OF GMWB ON TAX DEFERRAL. The purchase of a 7% GMWB may not be appropriate
for the Owners of Contracts who have as a primary objective taking maximum
advantage of the tax deferral that is available to them under an annuity
Contract. Please consult your tax and financial advisors on this and other
matters prior to electing the 7% GMWB.
4% FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT. BEFORE READING MORE ABOUT THE
4% FOR LIFE GMWB, PLEASE BE SURE TO FAMILIARIZE YOURSELF WITH THE 7% GMWB, AS
DISCUSSED IN THE IMMEDIATELY PRECEDING SECTION, BECAUSE OF THE SIMILARITIES AND
DIFFERENCES BETWEEN THE ENDORSEMENTS. ALSO, THE FOLLOWING DESCRIPTION IS
SUPPLEMENTED BY SOME EXAMPLES IN APPENDIX D. For Owners between the ages of 50
and 80 on the Contract's Issue Date, or on the date on which this endorsement is
selected if after the Contract's Issue Date, a 4% for Life GMWB may be
available. The 4% for Life GMWB permits you to make partial withdrawals prior to
the Income Date that, in total, are guaranteed to at least equal the GWB,
regardless of your Contract Value. For the 4% for Life GMWB, how the GWB and
GAWA are determined is the same as the 7% GMWB, except that: there is no
recalculation of the GAWA if your total partial withdrawals in a Contract Year
exceed the GAWA and your "for life" guarantee is still in effect; the GAWA is 4%
of the GWB; and there is a "for life" guarantee. "For life" means the longer of:
the Owner's life, or with joint Owners, the life of the one dying first; or
until total partial withdrawals deplete the GWB. So long as the "for life"
guarantee is in effect, you may continue to take partial withdrawals of the GAWA
even after the Contract Value falls to zero. You will invalidate the "for life"
guarantee if your total partial withdrawals in a Contract Year exceed the GAWA.
The "for life" guarantee is terminated upon spousal continuation.
The GWB of the 4% for Life GMWB may be "stepped-up" in the same fashion as the
7% GMWB, subject to the same conditions and requirements, but with the GAWA
based on 4% of the GWB.
With the 4% for Life GMWB, if your Contract Value is reduced to zero as a result
of a partial withdrawal, contract charges or poor fund performance, the GAWA
will automatically be paid no less frequently than annually, based on your
instructions, through the "for life" guarantee, or until the GWB is depleted if
the "for life" guarantee is no longer effective.
5% FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT. BEFORE READING MORE ABOUT THE
5% FOR LIFE GMWB, PLEASE BE SURE TO FAMILIARIZE YOURSELF WITH THE 7% GMWB, AS
DISCUSSED EARLIER, BECAUSE OF THE SIMILARITIES AND DIFFERENCES BETWEEN THE
ENDORSEMENTS. THE FOLLOWING DESCRIPTION IS SUPPLEMENTED BY SOME EXAMPLES IN
APPENDIX E. For Owners between the ages of 60 and 80 on the Contract's Issue
Date, or on the date on which this endorsement is selected if after the
Contract's Issue Date, a 5% for Life GMWB may be available. The 5% for Life GMWB
permits you to make partial withdrawals prior to the Income Date that, in total,
are guaranteed to at least equal the GWB, regardless of your Contract Value. For
the 5% for Life GMWB, how the GWB and GAWA are determined is the same as the 7%
GMWB, except that: there is no recalculation of the GAWA if your total partial
withdrawals in a Contract Year exceed the GAWA and your "for life" guarantee is
still in effect; the GAWA is 5% of the GWB; and there is a "for life" guarantee.
"For life" means the longer of: the Owner's life, or with joint Owners, the life
of the one dying first; or until total partial withdrawals deplete the GWB. So
long as the "for life" guarantee is in effect, you may continue to take partial
withdrawals of the GAWA even after the Contract Value falls to zero. You will
invalidate the "for life" guarantee if your total partial withdrawals in a
Contract Year exceed the GAWA. The "for life" guarantee is terminated upon
spousal continuation.
The GWB of the 5% for Life GMWB may be "stepped-up" in the same fashion as the
7% GMWB, subject to the same conditions and requirements, with the GAWA based on
5% of the GWB.
With the 5% for Life GMWB, if your Contract Value is reduced to zero as a result
of a partial withdrawal, contract charges or poor fund performance, the GAWA
will automatically be paid no less frequently than annually, based on your
instructions, through the "for life" guarantee, or until the GWB is depleted if
the "for life" guarantee is no longer effective.
YOU MAY ONLY ELECT ONE GMWB.
SYSTEMATIC WITHDRAWAL PROGRAM. You can arrange to have money automatically sent
to you periodically while your Contract is still in the accumulation phase.
Recapture Charges may apply, and you may have to pay taxes on money you receive.
SUSPENSION OF WITHDRAWALS OR TRANSFERS. We may be required to suspend or delay
withdrawals or transfers from an Investment Division when:
o the New York Stock Exchange is closed (other than customary weekend
and holiday closings);
o under applicable SEC rules, trading on the New York Stock Exchange is
restricted;
o under applicable SEC rules, an emergency exists so that it is not
reasonably practicable to dispose of securities in an Investment
Division or determine the value of its assets; or,
o the SEC, by order, may permit for the protection of Contract Owners.
We have reserved the right to defer payment for a withdrawal or transfer from
the Fixed Account for up to six months or the period permitted by law, and we
will credit interest accordingly.
INCOME PAYMENTS (THE INCOME PHASE)
The income phase of your Contract occurs when you begin receiving regular income
payments from us. The Income Date is the day on which those payments begin. Once
income payments begin, the Contract cannot be returned to the accumulation
phase. The Income Date must be at least 13 months after the Contract's Issue
Date. You can choose the Income Date and an income option. The income options
are described below. If you do not choose an income option, we will assume that
you selected Option 3, which provides a life annuity with 120 months of
guaranteed payments. You can change the Income Date or income option at any time
before the Income Date. You must give us written notice at least seven days
before the scheduled Income Date. Income payments must begin by your 90th
birthday under a non-qualified Contract or the calendar year in which you attain
age 70 1/2 under a traditional Individual Retirement Annuity (or such other age
as required by law).
Distributions under qualified plans and Tax-Sheltered Annuities must begin by
the later of the calendar year in which you attain age 70 1/2 or the calendar
year in which you retire. Distributions from Roth IRAs are not required prior to
your death.
At the Income Date, you can choose to receive fixed or variable payments from
the Investment Divisions. Unless you tell us otherwise, your income payments
will be based on the fixed and variable options that were in place on the Income
Date.
You can choose to have income payments made monthly, quarterly, semi-annually or
annually. However, if you have less than $5,000 to apply toward an income
option, we may provide your payment in a single lump sum. Likewise, if your
first income payment would be less than $50, we may set the frequency of
payments so that the first payment would be at least $50.
VARIABLE INCOME PAYMENTS. If you choose to have any portion of your income
payments based upon one or more Investment Divisions, the dollar amount of your
initial annuity payment will depend primarily upon the following:
o the amount of your Contract Value you allocate to the Investment
Division(s) on the Income Date;
o the amount of any applicable premium taxes or recapture charges
deducted from your Contract Value on the Income Date;
o which income option you select; and
o the investment factors listed in your Contract that translate the
amount of your Contract Value (as adjusted for applicable charges,
frequency of payment and commencement date) into initial payment
amounts that are measured by the number of Annuity Units of the
Investment Division(s) you select credited to your Contract.
The investment factors in your Contract are calculated based upon a variety of
factors, including the age and gender of the Annuitant if you select an income
option with a life contingency and an assumed investment rate of 2.50%.
We calculate the dollar amount of subsequent income payments that you receive
based upon the performance of the Investment Divisions you select. If that
performance (measured by changes in the value of Annuity Units) exceeds the
assumed investment rate, then your income payments will increase; if that
performance is less than the assumed investment rate, then your income payments
will decrease. Neither expenses actually incurred (other than taxes on
investment return), nor mortality actually experienced, will adversely affect
the dollar amount of subsequent income payments.
INCOME OPTIONS. The Annuitant is the person whose life we look to when we make
income payments (each description assumes that you are the Owner and Annuitant).
OPTION 1 - Life Income. This income option provides monthly payments for your
life.
OPTION 2 - Joint and Survivor. This income option provides monthly payments for
your life and for the life of another person (usually your spouse) selected by
you.
OPTION 3 - Life Annuity With at Least 120 or 240 Monthly Payments. This income
option provides monthly payments for the Annuitant's life, but with payments
continuing to the Beneficiary for the remainder of 10 or 20 years (as you
select) if the Annuitant dies before the end of the selected period. If the
Beneficiary does not want to receive the remaining scheduled payments, a single
lump sum may be requested, which will be equal to the present value of the
remaining payments (as of the date of calculation) discounted at an interest
rate that will be equal to the rate used to calculate the initial payment.
OPTION 4 - Income for a Specified Period. This income option provides monthly
payments for any number of years from 5 to 30. If the Beneficiary does not want
to receive the remaining scheduled payments, a single lump sum may be requested,
which will be equal to the present value of the remaining payments (as of the
date of calculation) discounted at an interest rate no higher than the rate used
to calculate the initial payment.
ADDITIONAL OPTIONS - We may make other income options available.
DEATH BENEFIT
The Contract has a death benefit, namely the basic death benefit. Instead you
may select the optional death benefit for an additional charge. The optional
death benefit is only available upon application, and once chosen, cannot be
canceled.
The death benefit paid to your Beneficiary upon your death is calculated as of
the date we receive all required documentation, which includes, but is not
limited to, due proof of death and a completed claim form from the Beneficiary
of record (if there are multiple beneficiaries, we will calculate the death
benefit when we receive this documentation from the first Beneficiary). Payment
will include any required interest from the date of death. The death benefit
paid will be the basic death benefit unless you have selected the optional death
benefit endorsement. If you have a guaranteed minimum death benefit, the amount
by which the guaranteed minimum death benefit exceeds the account value will be
put into your account as of the date we receive all required documentation from
the Beneficiary of record and will be allocated among investment options
according to the current allocation instructions on file for your account as of
that date. Each Beneficiary will receive their portion of the remaining value,
subject to market fluctuations, when their option election form is received at
our Annuity Service Center in Lansing, Michigan.
BASIC DEATH BENEFIT. If you die before moving to the income phase, the person
you have chosen as your Beneficiary will receive a death benefit. If you have a
joint Owner, the death benefit will be paid when the first joint Owner dies. The
surviving joint Owner will be treated as the Beneficiary. Any other Beneficiary
designated will be treated as a contingent Beneficiary. Only a spousal
Beneficiary has the right to continue the Contract in force upon your death. The
death benefit equals the greater of:
o your Contract Value on the date we receive all required documentation
from your Beneficiary; or
o the total premiums you have paid since your Contract was issued
REDUCED FOR prior withdrawals (including any applicable charges) in
the same proportion that the Contract Value was reduced on the date of
the withdrawal.
OPTIONAL DEATH BENEFIT. The Highest Anniversary Death Benefit is available,
which is designed to protect your Contract Value from potentially poor
investment performance and the impact that poor investment performance could
have on the amount of the basic death benefit. Because there is an additional
annual charge for this optional death benefit, and because you cannot change
your selection, please be sure that you have read about and understand the
Contract's basic death benefit before selecting the optional death benefit. This
optional death benefit is not available, however, if you are 80 years old or
older on the Contract's Issue Date. The older you are when your Contract is
issued, the less advantageous it would be for you to select an optional death
benefit. The optional death benefit is subject to our administrative rules to
assure appropriate use. Our administrative rules may be changed, as necessary.
For the purpose of the optional death benefit, "Net Premiums" are defined as
your premium payments net of premium taxes, reduced by any withdrawals
(including applicable charges and deductions) at the time of the withdrawal in
the same proportion that the Contract Value was reduced on the date of the
withdrawal.
The HIGHEST ANNIVERSARY VALUE DEATH BENEFIT changes your basic death benefit to
the greatest of:
(a) your Contract Value on the date we receive all required documentation
from your Beneficiary; or
(b) total Net Premiums since your Contract was issued; or
(c) your greatest Contract Value on any Contract Anniversary prior to your
81st birthday, REDUCED BY any withdrawals (including any applicable
withdrawal charges and adjustments for withdrawals) in proportion to
the reduction of Contract Value at the time of withdrawal, annual
contract maintenance charges, transfer charges and any applicable
charges due under any optional endorsement subsequent to that Contract
Anniversary, PLUS any premiums paid (net of any applicable premium
taxes) and minus taxes deducted subsequent to that Contract
Anniversary. All adjustments occur at the time of the transaction.
PAYOUT OPTIONS. The Contract's death benefit is payable pursuant to one of the
following payout options:
o single lump sum payment; or
o payment of entire death benefit within 5 years of the date of death;
or
o payment of the entire death benefit under an income option over the
Beneficiary's lifetime or for a period not extending beyond the
Beneficiary's life expectancy; or payment of a portion of the death
benefit under an income option over the Beneficiary's lifetime or for
a period not extending beyond the Beneficiary's life expectancy, with
the balance of the death benefit payable to the Beneficiary. Any
portion of the death benefit not applied under an income option within
one year of the Owner's death, however, must be paid within five years
of the date of the Owner's death.
Under these payout options, the Beneficiary may also elect to receive additional
lump sums at any time. The receipt of any additional lump sums will reduce the
future payments to the Beneficiary.
Unless the Beneficiary chooses to receive the entire death benefit in a single
sum, the Beneficiary must elect a payout option within the 60-day period
beginning with the date we receive proof of death and payments must begin within
one year of the date of death. If the Beneficiary chooses to receive some or all
of the death benefit in a single sum and all the necessary requirements are met,
we will pay the death benefit within seven days. If your Beneficiary is your
spouse, he/she may elect to continue the Contract in his/her own name. The
Special Spousal Continuation option is one way to continue your Contract. See
"Special Spousal Continuation Option" below.
PRE-SELECTED PAYOUT OPTIONS. As Owner, you may also make a predetermined
selection of the death benefit payout option if your death occurs before the
Income Date. If this Pre-Selected Death Benefit Option Election is in force at
the time of your death, the payment of the death benefit may not be postponed,
nor can the Contract be continued under any other provisions of this Contract.
This restriction applies even if the Beneficiary is your spouse, unless such
restriction is prohibited by the Internal Revenue Code.
SPECIAL SPOUSAL CONTINUATION OPTION. If your spouse is the Beneficiary and
elects to continue the Contract in his or her own name after your death,
pursuant to the Special Spousal Continuation Option, no death benefit will be
paid at that time. Instead, we will contribute to the Contract a Continuation
Adjustment, which is the amount by which the death benefit that would have been
payable exceeds the Contract Value. We calculate this amount using the Contract
Value and death benefit as of the date we receive all required documentation
from the Beneficiary of record and the spousal Beneficiary's written request to
continue the Contract (the "Continuation Date"). We will add this amount to the
Contract based on the current allocation instructions at the time of your death,
subject to any minimum allocation restrictions, unless we receive other
allocation instructions from your spouse.
If your spouse continues the Contract in his/her own name under the Special
Spousal Continuation option, the new Contract Value will be considered the
initial premium for purposes of determining any future death benefit under the
Contract. The age of the surviving spouse at the time of the continuation of the
Contract will be used to determine all benefits under the Contract
prospectively.
If your spouse elects to continue the Contract, your spouse, as new Owner,
cannot terminate most of the optional benefits you elected. The Contract, and
its optional benefits, remain the same. Your spouse will also be subject to the
same fees, charges and expenses under the Contract as you were.
However, if the Pre-Selected Death Benefit Option Election is in force at the
time of your death, the payment of the death benefit may not be postponed, nor
can the Contract be continued under any other provisions of this Contract. This
restriction applies even if the Beneficiary is your spouse, unless such
restriction is prohibited by the Internal Revenue Code.
DEATH OF OWNER ON OR AFTER THE INCOME DATE. If you or a joint Owner dies, and is
not the Annuitant, on or after the Income Date, any remaining payments under the
income option elected will continue at least as rapidly as under the method of
distribution in effect at the date of death. If you die, the Beneficiary becomes
the Owner. If the joint Owner dies, the surviving joint Owner, if any, will be
the designated Beneficiary. Any other Beneficiary designation on record at the
time of death will be treated as a contingent Beneficiary. A contingent
Beneficiary is entitled to receive payment only after the Beneficiary dies.
DEATH OF ANNUITANT. If the Annuitant is not an Owner or joint Owner and the
Annuitant dies before the Income Date, you can name a new Annuitant. If you do
not name a new Annuitant within 30 days of the death of the Annuitant, you will
become the Annuitant. However, if the Owner is a non-natural person (for
example, a corporation), then the death of the Annuitant will be treated as the
death of the Owner, and a new Annuitant may not be named.
If the Annuitant dies on or after the Income Date, any remaining guaranteed
payments will be paid to the Beneficiary as provided for in the income option
selected. Any remaining guaranteed payments will be paid at least as rapidly as
under the method of distribution in effect at the Annuitant's death. With Option
1 or 2 of the income options, if the Annuitant's death occurs before the first
income payment, the amount applied to the income option will be paid to the
Owner or Beneficiary, as applicable. For more information, see "Income Options"
on page **.
TAXES
THE FOLLOWING IS ONLY GENERAL INFORMATION AND IS NOT INTENDED AS TAX ADVICE TO
ANY INDIVIDUAL. ADDITIONAL TAX INFORMATION IS INCLUDED IN THE SAI. YOU SHOULD
CONSULT YOUR OWN TAX ADVISER AS TO HOW THESE GENERAL RULES WILL APPLY TO YOU IF
YOU PURCHASE A CONTRACT.
TAX-QUALIFIED AND NON-QUALIFIED CONTRACTS. If you purchase your Contract as a
part of a tax-qualified plan such as an Individual Retirement Annuity (IRA),
Tax-Sheltered Annuity (sometimes referred to as a 403(b) Contract), or pension
or profit-sharing plan (including a 401(k) plan or H.R. 10 Plan) your Contract
will be what is referred to as a qualified Contract. Tax deferral under a
tax-qualified Contract arises under the specific provisions of the Internal
Revenue Code (Code) governing the tax-qualified plan, so a tax-qualified
Contract should be purchased only for the features and benefits other than tax
deferral that are available under a tax-qualified Contract, and not for the
purpose of obtaining tax deferral. You should consult your own adviser regarding
these features and benefits of the Contract prior to purchasing a tax-qualified
Contract.
If you do not purchase your Contract as a part of any tax-qualified pension
plan, specially sponsored program or an individual retirement annuity, your
Contract will be what is referred to as a non-qualified Contract.
The amount of your tax liability on the earnings under and the amounts received
from either a tax-qualified or a non-qualified Contract will vary depending on
the specific tax rules applicable to your Contract and your particular
circumstances.
NON-QUALIFIED CONTRACTS - GENERAL TAXATION. Increases in the value of a
non-qualified Contract attributable to undistributed earnings are generally not
taxable to the Contract Owner or the Annuitant until a distribution (either a
withdrawal or an income payment) is made from the Contract. This tax deferral is
generally not available under a non-qualified Contract owned by a non-natural
person (e.g., a corporation or certain other entities other than a trust holding
the Contract as an agent for a natural person). Loans based on a non-qualified
Contract are treated as distributions.
NON-QUALIFIED CONTRACTS - WITHDRAWALS AND INCOME PAYMENTS. Any withdrawal from a
non-qualified Contract is taxable as ordinary income to the extent it does not
exceed the accumulated earnings under the Contract. A part of each income
payment under a non-qualified Contract is generally treated as a non-taxable
return of premium. The balance of each income payment is taxable as ordinary
income. The amounts of the taxable and non-taxable portions of each income
payment are determined based on the amount of the investment in the Contract and
the length of the period over which income payments are to be made. Income
payments received after all of your investment in the Contract is recovered are
fully taxable as ordinary income. Additional information is provided in the SAI.
The Code also imposes a 10% penalty on certain taxable amounts received under a
non-qualified Contract. This penalty tax will not apply to any amounts:
o paid on or after the date you reach age 59 1/2;
o paid to your Beneficiary after you die;
o paid if you become totally disabled (as that term is defined in the
Code);
o paid in a series of substantially equal periodic payments made
annually (or more frequently) for your life or for a period not
exceeding your life expectancy or the life expectancy of a
Beneficiary;
o paid under an immediate annuity; or
o which come from premiums made prior to August 14, 1982.
TAX-QUALIFIED CONTRACTS - WITHDRAWALS AND INCOME PAYMENTS. The Code imposes
limits on loans, withdrawals and income payments under tax-qualified Contracts.
The Code also imposes minimum distribution requirements for tax-qualified
Contracts and a 10% penalty on certain taxable amounts received prematurely
under a tax-qualified Contract. These limits, required minimum distributions,
tax penalties and the tax computation rules are summarized in the SAI. Any
withdrawals under a tax-qualified Contract will be taxable except to the extent
they are allocable to an investment in the Contract (any after-tax
contributions). In most cases, there will be little or no investment in the
Contract for a tax-qualified Contract because contributions will have been made
on a pre-tax or tax-deductible basis.
WITHDRAWALS - TAX-SHELTERED ANNUITIES. The Code limits the withdrawal of amounts
attributable to purchase payments made under a salary reduction agreement from
Tax-Sheltered Annuities. Withdrawals can only be made when an Owner:
o reaches age 59 1/2;
o leaves his/her job;
o dies;
o becomes disabled (as that term is defined in the Code); or
o experiences hardship. However, in the case of hardship, the Owner can
only withdraw the premium and not any earnings.
WITHDRAWALS - ROTH IRAS. Subject to certain limitations, individuals may also
purchase a type of non-deductible IRA annuity known as a Roth IRA annuity.
Qualified distributions from Roth IRA annuities are entirely federal income-tax
free. A qualified distribution requires that the individual has held the Roth
IRA annuity for at least five years and, in addition, that the distribution is
made either after the individual reaches age 59 1/2, on account of the
individual's death or disability, or as a qualified first-time home purchase,
subject to $10,000 lifetime maximum, for the individual, or for a spouse, child,
grandchild or ancestor.
CONSTRUCTIVE WITHDRAWALS - INVESTMENT ADVISER FEES. Withdrawals from
non-qualified Contracts for the payment of investment adviser fees will be
considered taxable distributions from the Contract. In a series of Private
Letter Rulings, however, the Internal Revenue Service has held that the payment
of investment adviser fees from a tax-qualified Contract need not be considered
a distribution for income tax purposes. Under the facts in these Rulings:
o there was a written agreement providing for payments of the fees
solely from the annuity Contract,
o the Contract Owner had no liability for the fees and
o the fees were paid solely from the annuity Contract to the adviser.
EXTENSION OF LATEST INCOME DATE. If you do not annuitize your Contract
on or before the Latest Income Date, it is possible that the IRS could
challenge the status of your Contract as an annuity Contract for tax
purposes. The result of such a challenge could be that you would be
viewed as either constructively receiving the increase in the account
value each year from the inception of the Contract or the entire
increase in the account value would be taxable in the year you attain
age 90. In either situation, you could realize taxable income even if
the Contract proceeds are not distributed to you at that time.
Accordingly, before purchasing a Contract, you should consult your tax
advisor with respect to these issues.
DEATH BENEFITS. None of the death benefits paid under the Contract to the
Beneficiary will be tax-exempt life insurance benefits. The rules governing the
taxation of payments from an annuity Contract, as discussed above, generally
apply to the payment of death benefits and depend on whether the death benefits
are paid as a lump sum or as annuity payments. Estate or gift taxes may also
apply.
ASSIGNMENT. An assignment of your Contract will generally be a taxable event.
Assignments of a tax-qualified Contract may also be limited by the Code and the
Employee Retirement Income Security Act of 1974, as amended. These limits are
summarized in the SAI. You should consult your tax adviser prior to making any
assignment of your Contract.
DIVERSIFICATION. The Code provides that the underlying investments for a
non-qualified variable annuity must satisfy certain diversification requirements
in order to be treated as an annuity Contract. We believe that the underlying
investments are being managed so as to comply with these requirements.
OWNER CONTROL. In a Revenue Ruling issued in 2003, the Internal Revenue Service
(IRS) considered certain variable annuity and variable life insurance Contracts
and held that the types of actual and potential control that the Contract Owners
could exercise over the investment assets held by the insurance company under
these variable Contracts was not sufficient to cause the Contract Owners to be
treated as the Owners of those assets and thus to be subject to current income
tax on the income and gains produced by those assets. Under the Contract, like
the contracts described in the Revenue Ruling, there will be no arrangement,
plan, Contract or agreement between the Contract Owner and Jackson National
regarding the availability of a particular investment option and other than the
Contract Owner's right to allocate premiums and transfer funds among the
available sub-accounts, all investment decisions concerning the sub-accounts
will be made by the insurance company or an advisor in its sole and absolute
discretion.
The Contract will differ from the contracts described in the Revenue Ruling, in
two respects. The first difference is that the contract in the Revenue Ruling
provided only twelve investment options with the insurance company having the
ability to add an additional 8 options whereas a Contract offers * Investment
Divisions and a Fixed Account, although a Contract Owner can select no more than
18 fixed and variable options at any one time. The second difference is that the
Owner of a contract in the Revenue Ruling could only make one transfer per
30-day period without a fee whereas during the accumulation phase, a Contract
Owner will be permitted to make up to 15 transfers in any one year without a
charge.
The Revenue Ruling states that whether the Owner of a variable contract is to be
treated as the Owner of the assets held by the insurance company under the
contract will depend on all of the facts and circumstances. Jackson National
does not believe that the differences between the Contract and the contracts
described in the Revenue Ruling with respect to the number of investment choices
and the number of investment transfers that can be made under the contract
without an additional charge should prevent the holding in the Revenue Ruling
from applying to the Owner of a Contract. At this time, however, it cannot be
determined whether additional guidance will be provided by the IRS on this issue
and what standards may be contained in such guidance. We reserve the right to
modify the Contract to the extent required to maintain favorable tax treatment.
OTHER INFORMATION
DOLLAR COST AVERAGING. You can arrange to have a regular amount of money
periodically transferred automatically from one Investment Division to any
number of the Investment Divisions if you have at least $15,000 of Contract
Value. The periodic transfer intervals may be monthly, quarterly, semi-annually
or annually. Dollar Cost Averaging theoretically gives you a lower average cost
per unit for the Investment Divisions over time than you would receive if you
made a one-time purchase. Transfers from the more volatile Investment Divisions
may not result in lower average costs and such Investment Divisions may not be
an appropriate source of dollar cost averaging transfers in volatile markets.
Certain restrictions may apply. Dollar Cost Averaging and Rebalancing are
mutually exclusive, you cannot select both.
EARNINGS SWEEP. You can choose to move your earnings from the Money Market
Investment Division on a monthly basis, and there is no minimum transfer amount.
REBALANCING. You can arrange to have us automatically reallocate your Contract
Value among Investment Divisions periodically to maintain your selected
allocation percentages. Rebalancing is consistent with maintaining your
allocation of investments among market segments, although it is accomplished by
reducing your Contract Value allocated to the better performing Investment
Divisions. Dollar Cost Averaging and Rebalancing are mutually exclusive, you
cannot select both. You may cancel a Dollar Cost Averaging, Earnings Sweep or
Rebalancing program using whatever methods you use to change your allocation
instructions.
FREE LOOK. You may return your Contract to the selling agent or us within 20
days after receiving it. We will return
o the Contract Value in the Investment Divisions, PLUS
o any fees and expenses deducted from the premium prior to allocation to
the Investment Divisions, PLUS
o the full amount of premium you allocated to the Fixed Account (minus
any withdrawals), minus
o any applicable Contract Enhancement recapture charge.
We will determine the Contract Value in the Investment Divisions as of the date
the request for refund is mailed to us, or the date you return it to the selling
agent.
ADVERTISING. From time to time, we may advertise several types of performance of
the Investment Divisions.
o TOTAL RETURN is the overall change in the value of an investment in an
Investment Division over a given period of time.
o STANDARDIZED AVERAGE ANNUAL TOTAL RETURN is calculated in accordance
with SEC guidelines.
o NON-STANDARDIZED TOTAL RETURN may be for periods other than those
required by, or may otherwise differ from, standardized average annual
total return. For example, if a Fund has been in existence longer than
the Investment Division, we may show non-standardized performance for
periods that begin on the inception date of the Fund, rather than the
inception date of the Investment Division.
o YIELD refers to the income generated by an investment over a given
period of time.
Performance will be calculated by determining the percentage change in the value
of an Accumulation Unit by dividing the increase (decrease) for that unit by the
value of the Accumulation Unit at the beginning of the period. Performance will
reflect the deduction of the mortality and expense risk and administration
charges and may reflect the deduction of the contract maintenance charge, but
will not reflect charges for optional features except in performance data used
in sales materials that promote those optional features. The deduction of
charges for optional features would reduce the percentage increase or make
greater any percentage decrease.
MARKET TIMING AND ASSET ALLOCATION SERVICES. Market timing and asset allocation
services must comply with our administrative systems, rules and procedures.
Because excessive trades in an underlying Fund can hurt the performance of the
Fund and corresponding Investment Division and harm Contract Owners, we reserve
the right to refuse any transfer requests from a market timing and asset
allocation service or other non-Contract Owners that we believe will
disadvantage the Fund or the Contract Owners.
Market timing or asset allocation services may conflict with transactions under
the dollar cost averaging program, earnings sweep program, automatic rebalancing
program or systematic withdrawal program (the "Programs"). Accordingly, when we
receive notice that you have authorized a market timing or asset allocation
service to effect transactions on your behalf, we will automatically terminate
your participation in any Program in which you are then enrolled, unless you
authorize us in writing to continue your participation.
MODIFICATION OF YOUR CONTRACT. Only our President, Vice President, Secretary or
Assistant Secretary may approve a change to or waive a provision of your
Contract. Any change or waiver must be in writing. We may change the terms of
your Contract without your consent in order to comply with changes in applicable
law, or otherwise as we deem necessary.
LEGAL PROCEEDINGS. There are no material legal proceedings, other than the
ordinary routine litigation incidental to the business to which Jackson National
Life Insurance Company of New York is a party.
Jackson National Life Insurance Company ("Jackson National" or "JNL"), Jackson
National Life of NY's parent, is a defendant in a number of civil proceedings
substantially similar to other litigation brought against many life insurers
alleging misconduct in the sale or administration of insurance products. These
matters are sometimes referred to as market conduct litigation. The market
conduct litigation currently pending against JNL asserts various theories of
liability and purports to be filed on behalf of individuals or differing classes
of persons in the United States who purchased either life insurance or annuity
products from JNL during periods ranging from 1981 to present. JNL has retained
national and local counsel experienced in the handling of such litigation. To
date, such litigation has either been resolved by Jackson National on a
non-material basis, or is being vigorously defended. At this time, it is not
feasible to make a meaningful estimate of the amount or range of loss that could
result from an unfavorable outcome in such actions.
PRIVACY POLICY
COLLECTION OF NONPUBLIC PERSONAL INFORMATION. We collect nonpublic personal
information (financial and health) about you from some or all of the following
sources:
o Information we receive from you on applications or other forms;
o Information about your transactions with us;
o Information we receive from a consumer reporting agency;
o Information we obtain from others in the process of verifying
information you provide us; and
o Individually identifiable health information, such as your medical
history, when you have applied for a life insurance policy.
DISCLOSURE OF CURRENT AND FORMER CUSTOMER NONPUBLIC PERSONAL INFORMATION. We
will not disclose our current and former customers' nonpublic personal
information to affiliated or nonaffiliated third parties, EXCEPT AS PERMITTED BY
LAW. TO THE EXTENT PERMITTED BY LAW, WE MAY DISCLOSE to either affiliated or
nonaffiliated third parties all of the nonpublic personal financial information
that we collect about our customers, as described above.
In general, any disclosures to affiliated or nonaffiliated parties will be for
the purpose of them providing services for us so that we may more efficiently
administer your Contract and process the transactions and services you request.
WE DO NOT SELL INFORMATION TO EITHER AFFILIATED OR NON-AFFILIATED PARTIES.
We also share customer name and address information with unaffiliated mailers to
assist in the mailing of company newsletters and other Contract Owner
communications. Our agreements with these third parties require them to use this
information responsibly and restrict their ability to share this information
with other parties.
We do not internally or externally share nonpublic personal health information
other than, as permitted by law, to process transactions or to provide services
that you have requested. These transactions or services include, but are not
limited to, underwriting life insurance policies, obtaining reinsurance of life
policies and processing claims for waiver of premium, accelerated death
benefits, terminal illness benefits or death benefits.
SECURITY TO PROTECT THE CONFIDENTIALITY OF NONPUBLIC PERSONAL INFORMATION. We
HAVE SECURITY PRACTICES AND PROCEDURES in place to prevent unauthorized access
to your nonpublic personal information. Our practices of safeguarding your
information help protect against the criminal use of the information. Our
employees are bound by a Code of Conduct requiring that all information be kept
in strict confidence, and they are subject to disciplinary action for violation
of the Code.
We RESTRICT ACCESS to nonpublic personal information about you to those
employees who need to know that information to provide products or services to
you. We MAINTAIN PHYSICAL, ELECTRONIC AND PROCEDURAL SAFEGUARDS that comply with
federal and state regulations to guard your nonpublic personal information.
TABLE OF CONTENTS OF
THE STATEMENT OF ADDITIONAL INFORMATION
General Information and History ........................................2
Services ...............................................................2
Purchase of Securities Being Offered ...................................3
Underwriters ...........................................................3
Calculation of Performance .............................................3
Additional Tax Information .............................................6
Net Investment Factor .................................................17
Financial Statements ..................................................18
Accumulation Unit Value ..............................................A-1
APPENDIX A
DOW JONES DOES NOT:
o Sponsor, endorse, sell or promote the JNL/Mellon Capital Management The
DowSM 10 Fund.
o Recommend that any person invest in the JNL/Mellon Capital Management Trust
The DowSM 10 Fund or any other securities.
o Have any responsibility or liability for or make any decisions about the
timing, amount or pricing of the JNL/Mellon Capital Management The DowSM 10
Fund.
o Have any responsibility or liability for the administration, management or
marketing of the JNL/Mellon Capital Management The DowSM 10 Fund.
o Consider the needs of the JNL/Mellon Capital Management The DowSM 10 Fund
in determining, composing or calculating the DJIA or have any obligation to
do so.
--------------------------------------------------------------------------------
DOW JONES WILL NOT HAVE ANY LIABILITY IN CONNECTION WITH THE JNL/MELLON CAPITAL
MANAGEMENT THE DOWSM 10 FUND. SPECIFICALLY,
o DOW JONES DOES NOT MAKE ANY WARRANTY, EXPRESS OR IMPLIED, AND DOW
JONES DISCLAIMS ANY WARRANTY ABOUT:
o THE RESULTS TO BE OBTAINED BY THE JNL/MELLON CAPITAL MANAGEMENT
THE DOWSM 10 FUND, THE OWNERS OF THE JNL/MELLON CAPITAL
MANAGEMENT THE DOWSM 10 FUND OR ANY OTHER PERSON IN CONNECTION
WITH THE USE OF THE DJIA AND THE DATA INCLUDED IN THE DJIA;
o THE ACCURACY OR COMPLETENESS OF THE DJIA AND ITS DATA;
o THE MERCHANTABILITY AND THE FITNESS FOR A PARTICULAR PURPOSE OR
USE OF THE DJIA AND ITS DATA.
o DOW JONES WILL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR
INTERRUPTIONS IN THE DJIA OR ITS DATA.
o UNDER NO CIRCUMSTANCES WILL DOW JONES BE LIABLE FOR ANY LOST PROFITS
OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES,
EVEN IF DOW JONES KNOWS THAT THEY MIGHT OCCUR.
o THE LICENSING AGREEMENT BETWEEN JACKSON NATIONAL LIFE INSURANCE
COMPANY AND DOW JONES IS SOLELY FOR THEIR BENEFIT AND NOT FOR THE
BENEFIT OF THE OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT THE DOWSM
10 FUND OR ANY OTHER THIRD PARTIES.
--------------------------------------------------------------------------------
APPENDIX B
------------------------------------------------------------------------------
JNL/NY EXAMPLE 1
------------------------------------------------------------------------------
100,000.00 : Premium
2.00% : Contract Enhancement
1.25% : Recapture Charge Year 4
5.50% : Net Return
AT END OF YEAR 4
126,360.11 : Contract Value at end of year 4
100,000.00 : Net Withdrawal requested
26,360.11 : Earnings
74,572.04 : Premium withdrawn (grossed up to account for Recapture
--------- Charge)
100,932.15 : Total Gross Withdrawal
100,932.15 : Total Gross Withdrawal
-932.15 : Recapture Charge
-------
100,000.00 : Total Net Withdrawal
------------------------------------------------------------------------------
------------------------------------------------------------------------------
JNL/NY EXAMPLE 2
------------------------------------------------------------------------------
10/1/04
100,000.00 : Premium
1.25% : Recapture Charge Contribution Year 3
12/1/04
100,000.00 : Premium
2.00% : Recapture Charge Contribution Year 2
2.00% : Contract Enhancement
0.00% : Net Return
11/1/06
204,000.00 : Contract Value
150,000.00 : Net Withdrawal Requested
4,000.00 : Earnings
100,000.00 : Premium 1 withdrawn (grossed up to account for Recapture
Charge)
48,214.29 : Premium 2 withdrawn (grossed up to account for
--------- Recapture Charge)
152,214.29 : Total Gross Withdrawal
152,214.29 : Total Gross Withdrawal
-1,250.00 : Recapture Charge from Premium 1
-964.29 : Recapture Charge from Premium 2
-------
150,000.00 : Total Net Withdrawal
------------------------------------------------------------------------------
APPENDIX C
THESE EXAMPLES ARE PROVIDED TO ASSIST YOU IN UNDERSTANDING HOW THE GWB AND GAWA
VALUES ARE COMPUTED, AND HOW THEY MAY BE ALTERED BY VARIOUS EVENTS, INCLUDING
SUBSEQUENT PREMIUM PAYMENTS, ELECTION OF THE "STEP-UP" OR PARTIAL WITHDRAWALS.
THE EXAMPLES ONLY DEPICT LIMITED CIRCUMSTANCES, AND SPECIFIC FACTUAL
ASSUMPTIONS. THE RESULTS MAY VARY DEPENDING UPON THE TIMING OR SEQUENCE OF
ACTIONS, AS WELL AS CHANGES IN MARKET CONDITIONS. IF YOU ARE CONTEMPLATING
ELECTING THE 7% GMWB, OR EXERCISING ANY RIGHTS THEREUNDER, PLEASE CONSIDER IN
MAKING YOUR DECISIONS THE RESULTS BASED ON THE SPECIFIC FACTS THAT APPLY TO YOU.
ALL OF THE FOLLOWING EXAMPLES ASSUME YOU SELECT THE 7% GMWB WHEN YOU PURCHASE
YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. NO OTHER OPTIONAL
BENEFITS ARE SELECTED. THEY ALSO ASSUME THAT NO CHARGES OR ADJUSTMENTS WILL
APPLY TO PARTIAL WITHDRAWALS.
EXAMPLE 1: AT ISSUE, THE GWB AND GAWA ARE DETERMINED.
o Your Guaranteed Withdrawal Balance (GWB) is $100,000, which is your
initial Premium payment.
o Your Guaranteed Annual Withdrawal Amount (GAWA) is $7,000, which is 7%
of your GWB.
EXAMPLE 2: SUBSEQUENT PREMIUM PAYMENT.
If you make an additional Premium payment of $50,000 before you make any
withdrawals, then
o Your GWB is $150,000, which is your prior GWB ($100,000) plus your
additional Premium payment ($50,000).
o Your GAWA is $10,500, which is your prior GAWA ($7,000) plus 7% of
your additional Premium payment ($3,500).
EXAMPLE 3: WITHDRAWAL EQUAL TO THE GAWA.
If you take the GAWA ($7,000) as a withdrawal before the end of the first
Contract Year, then
o Your GWB becomes $93,000, which is your prior GWB ($100,000) minus the
GAWA ($7,000).
o Your GAWA for the next year remains $7,000, because you did not take
more than the GAWA ($7,000).
EXAMPLE 4: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
INCREASED DUE TO POSITIVE MARKET PERFORMANCE AND THE GAWA IS REDUCED AS A RESULT
OF THE TRANSACTION.
If you withdraw $60,000 and your Contract Value is $150,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($60,000) from your
Contract Value ($150,000). This equals $90,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($60,000) from
your GWB ($100,000). This is $40,000. Your new GWB is $40,000,
since this is the lesser of the two amounts.
o Since the Contract Value after the partial withdrawal ($90,000) is
more than the new GWB ($40,000), but less than the GWB prior to the
partial withdrawal ($100,000), the GAWA is reduced. The new GAWA is 7%
of the greater of the Contract Value after the partial withdrawal or
the new GWB, which is $6,300.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 7 additional years to deplete the new GWB.
EXAMPLE 5: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
INCREASED DUE TO POSITIVE MARKET PERFORMANCE AND THE GAWA REMAINS UNCHANGED.
If you withdraw $40,000 and your Contract Value is $150,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($40,000) from your
Contract Value ($150,000). This equals $110,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($40,000) from
your GWB ($100,000). This is $60,000. Your new GWB is $60,000,
since this is the lesser of the two amounts.
o Since the Contract value after the partial withdrawal ($110,000) is
more than the new GWB ($60,000) and more than the GWB prior to the
partial withdrawal ($100,000), the GAWA is unchanged. The GAWA remains
$7,000.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 9 additional years to deplete the new GWB.
EXAMPLE 6: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
DECREASED DUE TO NEGATIVE MARKET PERFORMANCE.
If you withdraw $50,000 and your Contract value is $80,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($50,000) from your
Contract value ($80,000). This equals $30,000 and is your new
Contract value.
o Second, we deduct the amount of the withdrawal ($50,000) from
your GWB ($100,000). This is $50,000. Your new GWB becomes
$30,000, since this is the lesser of the two amounts.
o Since the Contract value prior to the partial withdrawal ($80,000) is
less than or equal to the GWB prior to the partial withdrawal
($100,000), the GAWA is reduced. The new GAWA is 7% of the new GWB,
which is $2,100.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 15 additional years to deplete the new GWB.
EXAMPLE 7: STEP-UP.
If you elect to "step-up" your 7% GMWB on a Contract Anniversary at least 5
years after electing the 7% GMWB, assuming you have made no withdrawals and your
Contract value at the time of step-up is $200,000, then
o We recalculate your GWB to equal your Contract value, which is
$200,000.
o We recalculate your GAWA by comparing your GAWA before the step-up
($7,000) to 7% of your new GWB ($14,000) and choose the greater amount
($14,000). This is your new GAWA.
o After the "step-up," if you took withdrawals of the GAWA, it would
take 15 additional years to deplete the new GWB.
EXAMPLE 8: VALUES MAY DIFFER BASED ON THE ORDER OF YOUR ELECTIONS. THE FOLLOWING
TWO EXAMPLES DEMONSTRATE THE DIFFERENT RESULTS IF YOU ELECT A "STEP-UP" PRIOR TO
SUBMITTING A WITHDRAWAL REQUEST RATHER THAN MAKING THE WITHDRAWAL PRIOR TO A
"STEP-UP."
If your Contract value prior to any transactions is $200,000 and you wish to
"step-up" your 7% GMWB on a Contract Anniversary at least 5 years after electing
the 7% GMWB (assuming you have made no prior withdrawals) but also wish to take
the original GAWA ($7,000) as a withdrawal, then
8A: STEP-UP FOLLOWED BY WITHDRAWAL.
o Upon step-up, we recalculate your GWB to equal your Contract value,
which is $200,000. We then recalculate your GAWA by comparing your
GAWA before the step-up ($7,000) to 7% of your new GWB ($14,000) and
choose the greater amount ($14,000). This is your new GAWA.
o Upon withdrawal of less than or equal to the GAWA, your GWB becomes
$193,000, which is your prior GWB ($200,000) minus the withdrawal
($7,000). Your GAWA remains $14,000, because you did not take more
than the GAWA.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 14 additional years to deplete the new GWB.
8B: WITHDRAWAL FOLLOWED BY A STEP-UP.
o Upon withdrawal of less than or equal to the GAWA, your GWB becomes
$93,000, which is your prior GWB ($100,000) minus the withdrawal
($7,000). Your GAWA remains $7,000, because you did not take more than
the GAWA.
o Upon step-up, we recalculate your GWB to equal your Contract value
after the withdrawal, which is $193,000. We then recalculate your GAWA
by comparing your GAWA before the step-up ($7,000) to 7% of your new
GWB ($13,510) and choose the greater amount ($13,510). This is your
new GAWA.
o After the step-up, if you took withdrawals of the GAWA, it would take
15 additional years to deplete the new GWB.
EXAMPLE 9: THE FOLLOWING TWO EXAMPLES DEMONSTRATE THAT IN SOME CASES THE ORDER
OF YOUR TRANSACTIONS WILL NOT IMPACT THE FINAL RESULTS.
If your Contract value prior to any transactions is $200,000 and you wish to
"step-up" your 7% GMWB on a Contract Anniversary at least 5 years after electing
the 7% GMWB (assuming you have made no prior withdrawals) but also wish to take
a withdrawal greater than the GAWA ($15,000), then
9A: STEP-UP FOLLOWED BY WITHDRAWAL.
o Upon step-up, we recalculate your GWB to equal your Contract value,
which is $200,000. We then recalculate your GAWA by comparing your
GAWA before the step-up ($7,000) to 7% of your new GWB ($14,000) and
choose the greater amount ($14,000). This is your new GAWA.
o Upon withdrawal of an amount greater than the GAWA, your GWB is the
lesser of the Contract value after the partial withdrawal ($185,000)
or the prior GWB less the partial withdrawal ($15,000), which is
$185,000. Since the Contract value prior to the partial withdrawal
($200,000) is less than or equal to the GWB prior to the partial
withdrawal ($200,000), the GAWA is reduced. The new GAWA is 7% of the
new GWB, which is $12,950.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 15 additional years to deplete the new GWB.
9B: WITHDRAWAL FOLLOWED BY A STEP-UP.
o Upon withdrawal of an amount greater than the GAWA, your GWB is the
lesser of the Contract value after the partial withdrawal ($185,000)
or the prior GWB less the partial withdrawal ($85,000), which is
$85,000. Since the Contract value after the partial withdrawal
($185,000) is more than the new GWB ($85,000) and more than the GWB
prior to the partial withdrawal ($100,000), the GAWA is unchanged. The
GAWA remains $7,000.
o Upon step-up, we recalculate your GWB to equal your Contract value
after the withdrawal, which is $185,000. We then recalculate your GAWA
by comparing your GAWA before the step-up ($7,000) to 7% of your new
GWB ($12,950) and choose the greater amount ($12,950). This is your
new GAWA.
o After the step-up, if you took withdrawals of the GAWA, it would take
15 additional years to deplete the new GWB.
APPENDIX D
THESE EXAMPLES ARE PROVIDED TO ASSIST YOU IN UNDERSTANDING HOW THE GWB AND GAWA
VALUES ARE COMPUTED, AND HOW THEY MAY BE ALTERED BY VARIOUS EVENTS, INCLUDING
SUBSEQUENT PREMIUM PAYMENTS, ELECTION OF THE "STEP-UP" OR PARTIAL WITHDRAWALS.
THE EXAMPLES ONLY DEPICT LIMITED CIRCUMSTANCES AND SPECIFIC FACTUAL ASSUMPTIONS.
THE RESULTS MAY VARY DEPENDING UPON THE TIMING OR SEQUENCE OF ACTIONS, AS WELL
AS CHANGES IN MARKET CONDITIONS. IF YOU ARE CONTEMPLATING ELECTING THE 4% FOR
LIFE GMWB OR EXERCISING ANY RIGHTS THEREUNDER, PLEASE CONSIDER IN MAKING YOUR
DECISIONS BASED ON THE SPECIFIC FACTS THAT APPLY TO YOU. THE FOR LIFE GUARANTEE
PERMITS WITHDRAWALS OF THE GAWA FOR THE LONGER OF THE OWNER'S LIFE OR THE LIFE
OF THE FIRST OF THE JOINT OWNERS TO DIE IF CONDITIONS FOR THE BENEFIT TO BE
FULLY EFFECTIVE ARE SATISFIED. ALL OF THE FOLLOWING EXAMPLES ASSUME YOU SELECT
THE 4% FOR LIFE GMWB WHEN YOU PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM
PAYMENT IS $100,000. NO OTHER OPTIONAL BENEFITS ARE SELECTED.
EXAMPLE 1: AT ISSUE, THE GWB AND GAWA ARE DETERMINED.
o Your Guaranteed Withdrawal Balance (GWB) is $100,000, which is your
initial Premium payment.
o Your Guaranteed Annual Withdrawal Amount (GAWA) is $4,000, which is 4%
of your GWB.
EXAMPLE 2: SUBSEQUENT PREMIUM PAYMENT.
If you make an additional Premium payment of $50,000 before you make any
withdrawals, then
o Your GWB is $150,000, which is your prior GWB ($100,000) plus your
additional Premium payment ($50,000).
o Your GAWA is $6,000, which is your prior GAWA ($4,000) plus 4% of your
additional Premium payment ($2,000) and the For Life Guarantee remains
effective.
EXAMPLE 3: WITHDRAWAL EQUAL TO THE GAWA.
If you take the GAWA ($4,000) as a withdrawal before the end of the first
Contract Year, then
o Your GWB becomes $96,000, which is your prior GWB ($100,000) minus the
GAWA ($4,000).
o Your GAWA for the next year remains $4,000, because you did not take
more than the GAWA ($4,000) and the For Life Guarantee remains
effective.
EXAMPLE 4: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
INCREASED DUE TO POSITIVE MARKET PERFORMANCE AND THE GAWA IS REDUCED AS A RESULT
OF THE TRANSACTION.
If you withdraw $60,000 and your Contract Value is $150,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($60,000) from your
Contract Value ($150,000). This equals $90,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($60,000) from
your GWB ($100,000). This is $40,000. Your new GWB is $40,000,
since this is the lesser of the two amounts.
o Since the Contract Value after the partial withdrawal ($90,000) is
more than the new GWB ($40,000), but less than the GWB prior to the
partial withdrawal ($100,000), the GAWA is reduced. The new GAWA is 4%
of the greater of the Contract Value after the partial withdrawal or
the new GWB, which is $3,600. Since the withdrawal is greater than the
GAWA, the For Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 12 additional years to deplete the new GWB.
EXAMPLE 5: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
INCREASED DUE TO POSITIVE MARKET PERFORMANCE AND THE GAWA REMAINS UNCHANGED.
If you withdraw $40,000 and your Contract Value is $150,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($40,000) from your
Contract Value ($150,000). This equals $110,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($40,000) from
your GWB ($100,000). This is $60,000. Your new GWB is $60,000,
since this is the lesser of the two amounts.
o Since the Contract Value after the partial withdrawal ($110,000) is
more than the new GWB ($60,000) and more than the GWB prior to the
partial withdrawal ($100,000), the GAWA is unchanged. The GAWA remains
$4,000, but since the withdrawal is greater than the GAWA, the For
Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 15 additional years to deplete the new GWB.
EXAMPLE 6: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
DECREASED DUE TO NEGATIVE MARKET PERFORMANCE.
If you withdraw $50,000 and your Contract Value is $80,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($50,000) from your
Contract Value ($80,000). This equals $30,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($50,000) from
your GWB ($100,000). This is $50,000. Your new GWB becomes
$30,000, since this is the lesser of the two amounts.
o Since the Contract Value prior to the partial withdrawal ($80,000) is
less than or equal to the GWB prior to the partial withdrawal
($100,000), the GAWA is reduced. The new GAWA is 4% of the new GWB,
which is $1,200. Since the withdrawal is greater than the GAWA, the
For Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 25 additional years to deplete the new GWB.
EXAMPLE 7: STEP-UP.
If you elect to "step-up" your GMWB on a Contract Anniversary at least 5 years
after electing the GMWB, assuming you have made no withdrawals and your Contract
Value at the time of step-up is $200,000, then
o We recalculate your GWB to equal your Contract Value, which is
$200,000.
o We recalculate your GAWA by comparing your GAWA before the step-up
($4,000) to 4% of your new GWB ($8,000) and choose the greater amount
($8,000). This is your new GAWA.
o After the "step-up", if you took withdrawals of the GAWA, it would
take 25 additional years to deplete the new GWB. If the For Life
Guarantee remains effective, withdrawals of the GAWA could continue
until the death of the Owner or the first of the Joint Owners, if any,
even beyond 25 years.
EXAMPLE 8: VALUES MAY DIFFER BASED ON THE ORDER OF YOUR ELECTIONS. THE FOLLOWING
TWO EXAMPLES DEMONSTRATE THE DIFFERENT RESULTS IF YOU ELECT A "STEP-UP" PRIOR TO
SUBMITTING A WITHDRAWAL REQUEST RATHER THAN MAKING THE WITHDRAWAL PRIOR TO A
"STEP-UP".
If your Contract Value prior to any transactions is $200,000 and you wish to
"step-up" your GMWB on a Contract Anniversary at least 5 years after electing
the GMWB (assuming you have made no prior withdrawals) but also wish to take the
original GAWA ($4,000) as withdrawal, then
8A: STEP-UP FOLLOWED BY WITHDRAWAL.
o Upon step-up, we recalculate your GWB to equal your Contract Value,
which is $200,000. We then recalculate your GAWA by comparing your
GAWA before the step-up ($4,000) to 4% of your new GWB ($8,000) and
choose the greater amount ($8,000). This is your new GAWA.
o Upon withdrawal of less than or equal to the GAWA, your GWB becomes
$196,000, which is your prior GWB ($200,000) minus the withdrawal
($4,000). Your GAWA remains $8,000, because you did not take more than
the GAWA.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 25 additional years to deplete the new GWB. If the For Life
Guarantee remains effective, withdrawals of the GAWA could continue
until the death of the Owner or the first of the Joint Owners, if any,
even beyond 25 years.
8B: WITHDRAWAL FOLLOWED BY A STEP-UP.
o Upon withdrawal of less than or equal to the GAWA, your GWB becomes
$96,000, which is your prior GWB ($100,000) minus the withdrawal
($4,000). Your GAWA remains $4,000, because you did not take more than
the GAWA.
o Upon step-up, we recalculate your GWB to equal your Contract Value
after the withdrawal, which is $196,000. We then recalculate your GAWA
by comparing your GAWA before the step-up ($4,000) to 4% of your new
GWB ($7,840) and choose the greater amount ($7,840). This is your new
GAWA.
o After the step-up, if you took withdrawals of the GAWA, it would take
25 additional years to deplete the new GWB. If the For Life Guarantee
remains effective, withdrawals of the GAWA could continue until the
death of the Owner or the first of the Joint Owners, if any, even
beyond 25 years.
EXAMPLE 9: THE FOLLOWING TWO EXAMPLES DEMONSTRATE THAT IN SOME CASES THE ORDER
OF YOUR TRANSACTIONS WILL NOT IMPACT THE FINAL RESULTS.
If your Contract Value prior to any transactions is $200,000 and you wish to
"step-up" your GMWB on a Contract Anniversary at least 5 years after electing
the GMWB (assuming you have made no prior withdrawals) but also wish to take a
withdrawal greater than the GAWA ($15,000), then
9A: STEP-UP FOLLOWED BY WITHDRAWAL.
o Upon step-up, we recalculate your GWB to equal your Contract Value,
which is $200,000. We then recalculate your GAWA by comparing your
GAWA before the step-up ($4,000) to 4% of your new GWB ($8,000) and
choose the greater amount ($8,000). This is your new GAWA.
o Upon withdrawal of an amount greater than the GAWA, your GWB is the
lesser of the Contract Value after the partial withdrawal ($185,000)
or the prior GWB less the partial withdrawal ($15,000), which is
$185,000. Since the Contract Value prior to the partial withdrawal
($200,000) is less than or equal to the GWB prior to the partial
withdrawal ($200,000), the GAWA is reduced. The new GAWA is 4% of the
new GWB, which is $7,400. Since the withdrawal is greater than the
GAWA, the For Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 25 additional years to deplete the new GWB.
9B: WITHDRAWAL FOLLOWED BY A STEP-UP.
o Upon withdrawal of an amount greater than the GAWA, your GWB is the
lesser of the Contract Value after the partial withdrawal ($185,000)
or the prior GWB less the partial withdrawal ($85,000), which is
$85,000. Since the Contract Value after the partial withdrawal
($185,000) is more than the new GWB ($85,000) and more than the GWB
prior to the partial withdrawal ($100,000), the GAWA is unchanged. The
GAWA remains $4,000.
o Upon step-up, we recalculate your GWB to equal your Contract Value
after the withdrawal, which is $185,000. We then recalculate your GAWA
by comparing your GAWA before the step-up ($4,000) to 4% of your new
GWB ($7,400) and choose the greater amount ($7,400). This is your new
GAWA. Since the withdrawal is greater than the GAWA, the For Life
Guarantee is null and void.
o After the step-up, if you took withdrawals of the GAWA, it would take
25 additional years to deplete the new GWB.
EXAMPLE 10: WITHDRAWAL AFTER THE GWB HAS BEEN DEPLETED.
If your Contract Value is $15,000 and you take the GAWA ($4,000) as a withdrawal
when the GWB has been depleted ($0), if the sum of the withdrawals you have
taken did not exceed the GAWA in any contract year and the For Life Guarantee is
fully effective, then:
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($4,000) from your
Contract Value ($15,000). This equals $11,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($4,000) from your
GWB ($0). This cannot be less than $0 so it is set to $0.
o Your GWB remains $0.
o Your GAWA for the next year remains $4,000 because you did not take
more than the GAWA ($4,000) and the For Life Guarantee remains
effective.
APPENDIX E
THESE EXAMPLES ARE PROVIDED TO ASSIST YOU IN UNDERSTANDING HOW THE GWB AND GAWA
VALUES ARE COMPUTED, AND HOW THEY MAY BE ALTERED BY VARIOUS EVENTS, INCLUDING
SUBSEQUENT PREMIUM PAYMENTS, ELECTION OF THE "STEP-UP" OR PARTIAL WITHDRAWALS.
THE EXAMPLES ONLY DEPICT LIMITED CIRCUMSTANCES, AND SPECIFIC FACTUAL
ASSUMPTIONS. THE RESULTS MAY VARY DEPENDING UPON THE TIMING OR SEQUENCE OF
ACTIONS, AS WELL AS CHANGES IN MARKET CONDITIONS. IF YOU ARE CONTEMPLATING
ELECTING THE 5% FOR LIFE GMWB OR EXERCISING ANY RIGHTS THEREUNDER, PLEASE
CONSIDER IN MAKING YOUR DECISIONS BASED ON THE SPECIFIC FACTS THAT APPLY TO YOU.
THE FOR LIFE GUARANTEE PERMITS WITHDRAWALS OF THE GAWA FOR THE LONGER OF THE
OWNER'S LIFE OR THE LIFE OF THE FIRST OF THE JOINT OWNERS TO DIE IF CONDITIONS
FOR THE BENEFIT TO BE FULLY EFFECTIVE ARE SATISFIED.
ALL OF THE FOLLOWING EXAMPLES ASSUME YOU SELECT THE 5% FOR LIFE GMWB WHEN YOU
PURCHASE YOUR CONTRACT AND YOUR INITIAL PREMIUM PAYMENT IS $100,000. NO OTHER
OPTIONAL BENEFITS ARE SELECTED.
EXAMPLE 1: AT ISSUE, THE GWB AND GAWA ARE DETERMINED.
o Your Guaranteed Withdrawal Balance (GWB) is $100,000, which is your
initial Premium payment.
o Your Guaranteed Annual Withdrawal Amount (GAWA) is $5,000, which is 5%
of your GWB.
EXAMPLE 2: SUBSEQUENT PREMIUM PAYMENT.
If you make an additional Premium payment of $50,000 before you make any
withdrawals, then
o Your GWB is $150,000, which is your prior GWB ($100,000) plus your
additional Premium payment ($50,000).
o Your GAWA is $7,500, which is your prior GAWA ($5,000) plus 5% of your
additional Premium payment ($2,500) and the For Life Guarantee remains
effective.
EXAMPLE 3: WITHDRAWAL EQUAL TO THE GAWA.
If you take the GAWA ($5,000) as a withdrawal before the end of the first
Contract Year, then
o Your GWB becomes $95,000, which is your prior GWB ($100,000) minus the
GAWA ($5,000).
o Your GAWA for the next year remains $5,000, because you did not take
more than the GAWA ($5,000) and the For Life Guarantee remains
effective.
EXAMPLE 4: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
INCREASED DUE TO POSITIVE MARKET PERFORMANCE AND THE GAWA IS REDUCED AS A RESULT
OF THE TRANSACTION.
If you withdraw $60,000 and your Contract Value is $150,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($60,000) from your
Contract Value ($150,000). This equals $90,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($60,000) from
your GWB ($100,000). This is $40,000.
o Your new GWB is $40,000, since this is the lesser of the two amounts.
o Since the Contract Value after the partial withdrawal ($90,000) is
more than the new GWB ($40,000), but less than the GWB prior to the
partial withdrawal ($100,000), the GAWA is reduced. The new GAWA is 5%
of the greater of the Contract Value after the partial withdrawal or
the new GWB, which is $4,500. Since the withdrawal is greater than the
GAWA, the For Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 9 additional years to deplete the new GWB.
EXAMPLE 5: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
INCREASED DUE TO POSITIVE MARKET PERFORMANCE AND THE GAWA REMAINS UNCHANGED.
If you withdraw $40,000 and your Contract Value is $150,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($40,000) from your
Contract Value ($150,000). This equals $110,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($40,000) from
your GWB ($100,000). This is $60,000.
o Your new GWB is $60,000, since this is the lesser of the two amounts.
o Since the Contract Value after the partial withdrawal ($110,000) is
more than the new GWB ($60,000) and more than the GWB prior to the
partial withdrawal ($100,000), the GAWA is unchanged. The GAWA remains
$5,000, but since the withdrawal is greater than the GAWA, the For
Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 12 additional years to deplete the new GWB.
EXAMPLE 6: WITHDRAWAL GREATER THAN THE GAWA WHEN THE CONTRACT VALUE HAS
DECREASED DUE TO NEGATIVE MARKET PERFORMANCE.
If you withdraw $50,000 and your Contract Value is $80,000 at the time of
withdrawal, then
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($50,000) from your
Contract Value ($80,000). This equals $30,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($50,000) from
your GWB ($100,000). This is $50,000.
o Your new GWB becomes $30,000, since this is the lesser of the two
amounts.
o Since the Contract Value prior to the partial withdrawal ($80,000) is
less than or equal to the GWB prior to the partial withdrawal
($100,000), the GAWA is reduced. The new GAWA is 5% of the new GWB,
which is $1,500. Since the withdrawal is greater than the GAWA, the
For Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 20 additional years to deplete the new GWB.
EXAMPLE 7: STEP-UP.
If you elect to "step-up" your GMWB on a Contract Anniversary at least 5 years
after electing the GMWB, assuming you have made no withdrawals and your Contract
Value at the time of step-up is $200,000, then
o We recalculate your GWB to equal your Contract Value, which is
$200,000.
o We recalculate your GAWA by comparing your GAWA before the step-up
($5,000) to 5% of your new GWB ($10,000) and choose the greater amount
($10,000). This is your new GAWA.
o After the "step-up," if you took withdrawals of the GAWA, it would
take 20 additional years to deplete the new GWB. If the For Life
Guarantee remains effective, withdrawals of the GAWA could continue
until the death of the Owner or the first of the Joint Owners, if any,
even beyond 20 years.
EXAMPLE 8: VALUES MAY DIFFER BASED ON THE ORDER OF YOUR ELECTIONS. THE FOLLOWING
TWO EXAMPLES DEMONSTRATE THE DIFFERENT RESULTS IF YOU ELECT A "STEP-UP" PRIOR TO
SUBMITTING A WITHDRAWAL REQUEST RATHER THAN MAKING THE WITHDRAWAL PRIOR TO A
"STEP-UP".
If your Contract Value prior to any transactions is $200,000 and you wish to
"step-up" your GMWB on a Contract Anniversary at least 5 years after electing
the GMWB (assuming you have made no prior withdrawals) but also wish to take the
original GAWA ($5,000) as withdrawal, then
8A: STEP-UP FOLLOWED BY WITHDRAWAL.
o Upon step-up, we recalculate your GWB to equal your Contract Value,
which is $200,000. We then recalculate your GAWA by comparing your
GAWA before the step-up ($5,000) to 5% of your new GWB ($10,000) and
choose the greater amount ($10,000). This is your new GAWA.
o Upon withdrawal of less than or equal to the GAWA, your GWB becomes
$195,000, which is your prior GWB ($200,000) minus the withdrawal
($5,000). Your GAWA remains $10,000, because you did not take more
than the GAWA.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 20 additional years to deplete the new GWB. If the For Life
Guarantee remains effective, withdrawals of the GAWA could continue
until the death of the Owner or the first of the Joint Owners, if any,
even beyond 20 years.
8B: WITHDRAWAL FOLLOWED BY A STEP-UP.
o Upon withdrawal of less than or equal to the GAWA, your GWB becomes
$95,000, which is your prior GWB ($100,000) minus the withdrawal
($5,000). Your GAWA remains $5,000, because you did not take more than
the GAWA.
o Upon step-up, we recalculate your GWB to equal your Contract Value
after the withdrawal, which is $195,000. We then recalculate your GAWA
by comparing your GAWA before the step-up ($5,000) to 5% of your new
GWB ($9,750) and choose the greater amount ($9,750). This is your new
GAWA.
o After the step-up, if you took withdrawals of the GAWA, it would take
20 additional years to deplete the new GWB. If the For Life Guarantee
remains effective, withdrawals of the GAWA could continue until the
death of the Owner or the first of the Joint Owners, if any, even
beyond 20 years.
EXAMPLE 9: THE FOLLOWING TWO EXAMPLES DEMONSTRATE THAT IN SOME CASES THE ORDER
OF YOUR TRANSACTIONS WILL NOT IMPACT THE FINAL RESULTS.
If your Contract Value prior to any transactions is $200,000 and you wish to
"step-up" your GMWB on a Contract Anniversary at least 5 years after electing
the GMWB (assuming you have made no prior withdrawals) but also wish to take a
withdrawal greater than the GAWA ($15,000), then
9A: STEP-UP FOLLOWED BY WITHDRAWAL.
o Upon step-up, we recalculate your GWB to equal your Contract Value,
which is $200,000. We then recalculate your GAWA by comparing your
GAWA before the step-up ($5,000) to 5% of your new GWB ($10,000) and
choose the greater amount ($10,000). This is your new GAWA.
o Upon withdrawal of an amount greater than the GAWA, your GWB is the
lesser of the Contract Value after the partial withdrawal ($185,000)
or the prior GWB less the partial withdrawal ($15,000), which is
$185,000. Since the Contract Value prior to the partial withdrawal
($200,000) is less than or equal to the GWB prior to the partial
withdrawal ($200,000), the GAWA is reduced. The new GAWA is 5% of the
new GWB, which is $9,250. Since the withdrawal is greater than the
GAWA, the For Life Guarantee is null and void.
o After the withdrawal, if you took withdrawals of the GAWA, it would
take 20 additional years to deplete the new GWB.
9B: WITHDRAWAL FOLLOWED BY A STEP-UP.
o Upon withdrawal of an amount greater than the GAWA, your GWB is the
lesser of the Contract Value after the partial withdrawal ($185,000)
or the prior GWB less the partial withdrawal ($85,000), which is
$85,000. Since the Contract Value after the partial withdrawal
($185,000) is more than the new GWB ($85,000) and more than the GWB
prior to the partial withdrawal ($100,000), the GAWA is unchanged. The
GAWA remains $5,000.
o Upon step-up, we recalculate your GWB to equal your Contract Value
after the withdrawal, which is $185,000. We then recalculate your GAWA
by comparing your GAWA before the step-up ($5,000) to 5% of your new
GWB ($9,250) and choose the greater amount ($9,250). This is your new
GAWA. Since the withdrawal is greater than the GAWA, the For Life
Guarantee is null and void.
o After the step-up, if you took withdrawals of the GAWA, it would take
20 additional years to deplete the new GWB.
EXAMPLE 10: WITHDRAWAL AFTER THE GWB HAS BEEN DEPLETED.
If your Contract Value is $15,000 and you take the GAWA ($5,000) as a withdrawal
when the GWB has been depleted ($0), if the sum of the withdrawals you have
taken did not exceed the GAWA in any contract year and the For Life Guarantee is
fully effective, then:
o We recalculate your GWB by comparing the results of two calculations
and choosing the lesser amount:
o First, we deduct the amount of the withdrawal ($5,000) from your
Contract Value ($15,000). This equals $10,000 and is your new
Contract Value.
o Second, we deduct the amount of the withdrawal ($5,000) from your
GWB ($0). This cannot be less than $0 so it is set to $0.
o Your GWB remains $0.
o Your GAWA for the next year remains $5,000 because you did not take
more than the GAWA ($5,000) and the For Life Guarantee remains
effective.
APPENDIX F
An Accumulation Unit value history is provided below. It shows values for the
following Contracts:
o Contracts with no endorsements and
o Contracts with optional endorsements.
ACCUMULATION UNIT VALUES [TO BE UPDATED BY AMENDMENT]
CONTRACT - M&E 1.25% WITH THE FOLLOWING POSSIBLE COMBINATIONS OF BENEFITS:
BASE CONTRACT AND $1 MILLION ADMINISTRATION FEE WAIVER
NEW BASE CONTRACT
The following table shows Accumulation Unit values at the beginning and end of
the periods indicated as well as the number of Accumulation Units outstanding
for each division as of the end of the periods indicated. This information has
been taken from the Separate Account's financial statements. This information
should be read together with the Separate Account's financial statements and
related notes which are in the SAI.
[Enlarge/Download Table]
--------------------------------------------------------------------------------------------------------------------------
QUESTIONS: If you have any questions about your Contract, you may contact us at:
ANNUITY SERVICE CENTER: 1 (800) 599-5651 (9 a.m. - 8 p.m., ET)
MAIL ADDRESS: P.O. Box 378002, Denver, Colorado 80237-8002
DELIVERY ADDRESS: 8055 East Tufts Avenue, Second Floor, Denver,
Colorado 80237
INSTITUTIONAL MARKETING
GROUP (IMG) SERVICE CENTER: 1 (888) 464-7779 (8 a.m. - 8 p.m., ET)
(for Contracts purchased through a bank
or other financial institution)
MAIL ADDRESS: P.O. Box 30901, Lansing, Michigan 48909-8401
DELIVERY ADDRESS: 1 Corporate Way, Lansing, Michigan 48951
Attn: IMG
HOME OFFICE: 2900 Westchester Avenue, Purchase, New York 10577
--------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
*
INDIVIDUAL AND GROUP DEFERRED FIXED AND
VARIABLE ANNUITY CONTRACTS
ISSUED BY THE JNLNY SEPARATE ACCOUNT I
OF JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORKSM
This Statement of Additional Information (SAI) is not a prospectus. It contains
information in addition to and more detailed than set forth in the Prospectus
and should be read in conjunction with the Prospectus dated *. The Prospectus
may be obtained from Jackson National Life Insurance Company of New York by
writing P.O. Box 378004, Denver, Colorado 80237, or calling 1-800-599-5651. Not
all Investment Divisions described in this SAI may be available for investment.
TABLE OF CONTENTS
PAGE
General Information and History............................................2
Services...................................................................2
Purchase of Securities Being Offered.......................................3
Underwriters...............................................................3
Calculation of Performance.................................................3
Additional Tax Information.................................................6
Net Investment Factor ....................................................17
Financial Statements .....................................................19
Accumulation Unit Values.................................................A-1
GENERAL INFORMATION AND HISTORY
JNLNY Separate Account I (Separate Account) is a separate investment account of
Jackson National Life Insurance Company of New York (Jackson National(R) NY). In
September 1997, the company changed its name from First Jackson National Life
Insurance Company to its present name. Jackson National NY is a wholly owned
subsidiary of Jackson National Life Insurance Company(R), and is ultimately a
wholly owned subsidiary of Prudential plc, London, England, a life insurance
company in the United Kingdom.
The JNL/Mellon Capital Management S&P Divisions and the JNL/S&P Divisions are
not sponsored, endorsed, sold or promoted by Standard & Poor's, a division of
The McGraw-Hill Companies, Inc. (S&P). S&P makes no representation or warranty,
express or implied, to the owners of the Divisions or any member of the public
regarding the advisability of investing in securities generally or in the
Divisions particularly or the ability of the S&P 500 Index to track general
stock market performance. S&P's only relationship to the Separate Account
(Licensee) is the licensing of certain trademarks and trade names of S&P and of
the S&P 500 Index that are determined, composed and calculated by S&P without
regard to the Licensee or the Divisions. S&P has no obligation to take the needs
of the Licensee or the owners of the Divisions into consideration in
determining, composing or calculating the S&P 500 Index. S&P is not responsible
for and has not participated in the determination of the prices and amount of
the Divisions or the timing of the issuance or sale of the Divisions or in the
determination or calculation of the equation by which the Divisions are to be
converted into cash. S&P has no obligation or liability in connection with the
administration, marketing or trading of the Divisions.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX
OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR ANY ERRORS,
OMISSIONS, OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED,
AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE DIVISIONS, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN.
S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY
OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL,
PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
Value Line Publishing, Inc.'s ("VLPI") only relationship to JNL is VLPI's
licensing to JNL of certain VLPI trademarks and trade names and the Value Line
Timeliness Ranking System (the "System"), which is composed by VLPI without
regard to JNL, this Product or any investor. VLPI has no obligation to take the
needs of JNL or any investor in the Product into consideration in composing the
System. The Product results may differ from the hypothetical or published
results of the Value Line Timeliness Ranking System. VLPI is not responsible for
and has not participated in the determination of the prices and composition of
the Product or the timing of the issuance for sale of the Product or in the
calculation of the equations by which the Product is to be converted into cash.
VLPI MAKES NO WARRANTY CONCERNING THE SYSTEM, EXPRESS OR IMPLIED, INCLUDING, BUT
NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR ANY IMPLIED WARRANTIES ARISING FROM USAGE OF TRADE, COURSE
OF DEALING OR COURSE OF PERFORMANCE, AND VLPI MAKES NO WARRANTY AS TO THE
POTENTIAL PROFITS OR ANY OTHER BENEFITS THAT MAY BE ACHIEVED BY USING THE SYSTEM
OR ANY INFORMATION OR MATERIALS GENERATED THEREFROM. VLPI DOES NOT WARRANT THAT
THE SYSTEM WILL MEET ANY REQUIREMENTS OR THAT IT WILL BE ACCURATE OR ERROR-FREE.
VLPI ALSO DOES NOT GUARANTEE ANY USES, INFORMATION, DATA OR OTHER RESULTS
GENERATED FROM THE SYSTEM. VLPI HAS NO OBLIGATION OR LIABILITY (I) IN CONNECTION
WITH THE ADMINISTRATION, MARKETING OR TRADING OF THE PRODUCT; OR (II) FOR ANY
LOSS, DAMAGE, COST OR EXPENSE SUFFERED OR INCURRED BY ANY INVESTOR OR OTHER
PERSON OR ENTITY IN CONNECTION WITH THIS PRODUCT, AND IN NO EVENT SHALL VLPI BE
LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL, SPECIAL, PUNITIVE,
INCIDENTAL, INDIRECT OR EXEMPLARY DAMAGES IN CONNECTION WITH THE PRODUCT.
The Product(s) is not sponsored, endorsed, sold or promoted by The Nasdaq Stock
Market, Inc.(including its affiliates) (Nasdaq, with its affiliates, are
referred to as the CORPORATIONS). The Corporations have not passed on the
legality or suitability of or the accuracy or adequacy of descriptions and
disclosures relating to the Product(s). The Corporations make no representation
or warranty, express or implied to the owners of the Product(s) or any member of
the public regarding the advisability of investing in securities generally or in
the Product(s) particularly, or the ability of the Nasdaq-100 Index(R) to track
general stock market performance. The Corporations' only relationship to JACKSON
NATIONAL LIFE INSURANCE COMPANY (LICENSEE) is in the licensing of the
Nasdaq-100(R), Nasdaq-100 Index(R) and Nasdaq(R) trademarKS or service marks,
and certain trade names of the Corporations and the use of the Nasdaq-100
Index(R) which is determined, composed and calculated by Nasdaq without regard
to Licensee or the Product(s). Nasdaq has no obligation to take the needs of the
Licensee or the owners of the Product(s) into consideration in determining,
composing or calculating the Nasdaq-100 Index(R). The Corporations are not
responsible for and have not participated in the determination of the timing of,
prices at or quantities of the Product(s) to be issued or in the determination
or calculation of the equation by which the Product(s) is to be converted into
cash. The Corporations have no liability in connection with the administration,
marketing or trading of the Product(s).
THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR UNINTERRUPTED CALCULATION
OF THE NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE
NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE,
OWNERS OF THE PRODUCT(S) OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE
NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO
EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE
FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANY LOST
PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES,
EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
"The Nasdaq-100(R)," "Nasdaq-100 Index(R)," "Nasdaq Stock Market(R)" and
"Nasdaq" are trade or service marks of The Nasdaq, Inc. (which with its
affiliates are the "Corporations") and have been licensed for use by Jackson
National Life Insurance Company. The JNL/Mellon Capital Management NASDAQ(R) 15
Fund has not passed on the Corporations as to its legality or suitability. The
JNL/Mellon Capital Management NASDAQ(R) 15 Fund is not issued, endorsed,
sponsored, managed, sold or promoted by the Corporations. THE CORPORATIONS MAKE
NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE JNL/MELLON CAPITAL
MANAGEMENT NASDAQ(R) 15 FUND.
SERVICES
Jackson National NY is the custodian of the assets of the Separate Account.
Jackson National NY holds all cash of the Separate Account and attends to the
collection of proceeds of shares of the underlying Fund bought and sold by the
Separate Account.
The financial statements of JNLNY Separate Account I and Jackson National NY for
the periods indicated have been included herein in reliance upon the reports of
__________, independent certified public accountants, appearing elsewhere
herein, and upon the authority of said firm as experts in accounting and
auditing. ___________ is located at
_____________________.
PURCHASE OF SECURITIES BEING OFFERED
The Contracts will be sold by licensed insurance agents. The agents will be
registered representatives of broker-dealers that are registered under the
Securities Exchange Act of 1934 and members of the National Association of
Securities Dealers, Inc. (NASD).
UNDERWRITERS
The Contracts are to be offered continuously and will be distributed by Jackson
National Life Distributors, Inc. (JNLD), 8055 E. Tufts Avenue, Denver, Colorado
80237. JNLD is a subsidiary of Jackson National Life Insurance Company. We
expect to compensate broker-dealers selling the Contracts.
CALCULATION OF PERFORMANCE
When Jackson National NY advertises performance for an Investment Division
(except the JNL/Select Money Market Division, we will include quotations of
standardized average annual total return to facilitate comparison with
standardized average annual total return advertised by other variable annuity
separate accounts. Standardized average annual total return for an Investment
Division will be shown for periods beginning on the date the Investment Division
first invested in the corresponding Fund. We will calculate standardized average
annual total return according to the standard methods prescribed by rules of the
Securities and Exchange Commission.
Standardized average annual total return for a specific period is calculated by
taking a hypothetical $1,000 investment in an Investment Division at the
offering on the first day of the period ("initial investment"), and computing
the average annual compounded rate of return for the period that would equate
the initial investment with the ending redeemable value ("redeemable value") of
that investment at the end of the period, carried to at least the nearest
hundredth of a percent. Standardized average annual total return is annualized
and reflects the deduction of all recurring charges that are charged to all
Contracts. The redeemable value also reflects the effect of any applicable
withdrawal charge or other charge that may be imposed at the end of the period.
No deduction is made for premium taxes that may be assessed by certain states.
Jackson National NY may also advertise non-standardized total return on an
annualized and cumulative basis. Non-standardized total return may be for
periods other than those required to be presented or may otherwise differ from
standardized average annual total return. The Contract is designed for long-term
investment; therefore, Jackson National NY believes that non-standardized total
return that does not reflect the deduction of any applicable withdrawal charge
may be useful to investors. Reflecting the deduction of the withdrawal charge
decreases the level of performance advertised. Non-standardized total return may
also assume a larger initial investment that more closely approximates the size
of a typical Contract.
Standardized average annual total return quotations will be current to the last
day of the calendar quarter preceding the date on which an advertisement is
submitted for publication. Both standardized average annual total return
quotations and non-standardized total return quotations will be based on rolling
calendar quarters and will cover at least periods of one, five, and ten years,
or a period covering the time the Investment Division has been in existence, if
it has not been in existence for one of the prescribed periods.
Quotations of standardized average annual total return and non-standardized
total return are based upon historical earnings and will fluctuate. Any
quotation of performance should not be considered a guarantee of future
performance. Factors affecting the performance of an Investment Division and its
corresponding Fund include general market conditions, operating expenses and
investment management. An owner's withdrawal value upon surrender of a Contract
may be more or less than its original cost.
Jackson National NY may advertise the current annualized yield for a 30-day
period for an Investment Division. The annualized yield of an Investment
Division refers to the income generated by the Investment Division over a
specified 30-day period. Because this yield is annualized, the yield generated
by an Investment Division during the 30-day period is assumed to be generated
each 30-day period. The yield is computed by dividing the net investment income
per accumulation unit earned during the period by the price per unit on the last
day of the period, according to the following formula:
[OBJECT OMITTED]
Where:
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a = net investment income earned during the period by the Fund attributable to shares
owned by the Investment Division.
b = expenses for the Investment Division accrued for the period (net of reimbursements).
c = the average daily number of accumulation units outstanding during the period.
d = the maximum offering price per accumulation unit on the last day of the period.
Net investment income will be determined in accordance with rules established by
the Securities and Exchange Commission. Accrued expenses will include all
recurring fees that are charged to all Contracts.
Because of the charges and deductions imposed by the Separate Account, the yield
for an Investment Division will be lower than the yield for the corresponding
Fund. The yield on amounts held in the Investment Divisions normally will
fluctuate over time. Therefore, the disclosed yield for any given period is not
an indication or representation of future yields or rates of return. An
Investment Division's actual yield will be affected by the types and quality of
portfolio securities held by the Fund and the Funds operating expenses.
Any current yield quotations of the JNL/Select Money Market Division will
consist of a seven calendar day historical yield, carried at least to the
nearest hundredth of a percent. We may advertise yield for the Division based on
different time periods, but we will accompany it with a yield quotation based on
a seven day calendar period. The JNL/Select Money Market Division's yield will
be calculated by determining the net change, exclusive of capital changes, in
the value of a hypothetical pre-existing account having a balance of one
accumulation unit at the beginning of the base period, subtracting a
hypothetical charge reflecting deductions from Contracts, and dividing the net
change in account value by the value of the account at the beginning of the
period to obtain a base period return and multiplying the base period return by
(365/7). The JNL/Select Money Market Division's effective yield is computed
similarly but includes the effect of assumed compounding on an annualized basis
of the current yield quotations of the Division.
The JNL/Select Money Market Division's yield and effective yield will fluctuate
daily. Actual yields will depend on factors such as the type of instruments in
the Fund's portfolio, portfolio quality and average maturity, changes in
interest rates, and the Fund's expenses. Although the Investment Division
determines its yield on the basis of a seven calendar day period, it may use a
different time period on occasion. The yield quotes may reflect the expense
limitations described in the Fund's Prospectus or Statement of Additional
Information. There is no assurance that the yields quoted on any given occasion
will be maintained for any period of time and there is no guarantee that the net
asset values will remain constant. It should be noted that neither a Contract
owner's investment in the JNL/Select Money Market Division nor that Division's
investment in the JNL/Select Money Market Division is guaranteed or insured.
Yields of other money market Funds may not be comparable if a different base or
another method of calculation is used.
ADDITIONAL TAX INFORMATION
NOTE: INFORMATION CONTAINED HEREIN SHOULD NOT BE SUBSTITUTED FOR THE ADVICE OF A
PERSONAL TAX ADVISER. JACKSON NATIONAL DOES NOT MAKE ANY GUARANTEE REGARDING THE
TAX STATUS OF ANY CONTRACT OR ANY TRANSACTION INVOLVING THE CONTRACTS.
PURCHASERS BEAR THE COMPLETE RISK THAT THE CONTRACTS MAY NOT BE TREATED AS
"ANNUITY CONTRACTS" UNDER FEDERAL INCOME TAX LAWS. IT SHOULD BE FURTHER
UNDERSTOOD THAT THE FOLLOWING DISCUSSION IS NOT EXHAUSTIVE AND THAT OTHER
SPECIAL RULES MAY BE APPLICABLE IN CERTAIN SITUATIONS. MOREOVER, NO ATTEMPT HAS
BEEN MADE TO CONSIDER ANY APPLICABLE STATE OR OTHER TAX LAWS OR TO COMPARE THE
TAX TREATMENT OF THE CONTRACTS TO THE TAX TREATMENT OF ANY OTHER INVESTMENT.
GENERAL
Section 72 of the Internal Revenue Code of 1986, as amended (the "Code"),
governs taxation of annuities in general. An individual owner is not taxed on
increases in the value of a Contract until distribution occurs, either in the
form of a withdrawal or as annuity payments under the annuity option elected.
For a withdrawal received as a total surrender (total redemption or a death
benefit), the recipient is taxed on the portion of the payment that exceeds the
cost basis of the Contract. For a payment received as a partial withdrawal from
a non-qualified Contract, federal tax liability is generally determined on a
last-in, first-out basis, meaning taxable income is withdrawn before the cost
basis of the Contract is withdrawn. In the case of a partial withdrawal under a
tax-qualified Contract, a ratable portion of the amount received is taxable. For
Contracts issued in connection with non-qualified plans, the cost basis is
generally the premiums, while for Contracts issued in connection with
tax-qualified plans there may be no cost basis. The taxable portion of a
withdrawal is taxed at ordinary income tax rates. Tax penalties may also apply.
For annuity payments, a portion of each payment in excess of an exclusion amount
is includable in taxable income. All annuity payments in excess of the exclusion
amount are fully taxable at ordinary income rates.
The exclusion amount for payments based on a fixed annuity option is determined
by multiplying the payment by the ratio that the cost basis of the Contract
(adjusted for any period certain or refund feature) bears to the expected return
under the Contract. The exclusion amount for payments based on a variable
annuity option is determined by dividing the cost basis of the Contract
(adjusted for any period certain or refund guarantee) by the fixed or estimated
number of years for which annuity payments are to be made. No exclusion is
allowed with respect to any payments received after the investment in the
Contract has been recovered (i.e., when the total of the excludable amounts
equals the investment in the Contract). For certain types of tax-qualified plans
there may be no cost basis in the Contract within the meaning of Section 72 of
the Code.
The taxable portion is taxed at ordinary income tax rates. Owners, annuitants
and beneficiaries under the Contracts should seek competent financial advice
about the tax consequences of distributions.
Jackson National is taxed as a life insurance company under the Code. For
federal income tax purposes, the Separate Account is not a separate entity from
Jackson National and its operations form a part of Jackson National.
WITHHOLDING TAX ON DISTRIBUTIONS
The Code generally requires Jackson National (or, in some cases, a plan
administrator) to withhold tax on the taxable portion of any distribution or
withdrawal from a Contract. For "eligible rollover distributions" from Contracts
issued under certain types of tax-qualified plans, 20% of the distribution must
be withheld, unless the payee elects to have the distribution "rolled over" to
another eligible plan in a direct transfer. This requirement is mandatory and
cannot be waived by the owner.
An "eligible rollover distribution" is the taxable portion of any amount
received by a covered employee from a plan qualified under Section 401(a) or
403(a) of the Code, from a tax sheltered annuity qualified under Section 403(b)
of the Code or an eligible deferred compensation plan of a state or local
government under Section 457(b) (other than (1) a series of substantially equal
periodic payments (not less frequently than annually) for the life (or life
expectancy) of the employee, or joint lives (or joint life expectancies) of the
employee, and his or her designated beneficiary, or for a specified period of
ten years or more; (2) minimum distributions required to be made under the Code;
and (3) hardship withdrawals). Failure to "roll over" the entire amount of an
eligible rollover distribution (including an amount equal to the 20% portion of
the distribution that was withheld) could have adverse tax consequences,
including the imposition of a penalty tax on premature withdrawals, described
later in this section.
Withdrawals or distributions from a Contract other than eligible rollover
distributions are also subject to withholding on the estimated taxable portion
of the distribution, but the owner may elect in such cases to waive the
withholding requirement. If not waived, withholding is imposed (1) for periodic
payments, at the rate that would be imposed if the payments were wages, or (2)
for other distributions, at the rate of 10%. If no withholding exemption
certificate is in effect for the payee, the rate under (1) above is computed by
treating the payee as a married individual claiming 3 withholding exemptions.
Generally, the amount of any payment of interest to a non-resident alien of the
United States shall be subject to withholding of a tax equal to 30% of such
amount or, if applicable, a lower treaty rate. A payment may not be subject to
withholding where the recipient sufficiently establishes that such payment is
effectively connected to the recipient's conduct of a trade or business in the
United States and such payment is included in the recipient's gross income.
DIVERSIFICATION -- SEPARATE ACCOUNT INVESTMENTS
Section 817(h) of the Code imposes certain asset diversification standards on
variable annuity Contracts. The Code provides that a variable annuity Contract
will not be treated as an annuity Contract for any period (and any subsequent
period) for which the investments held in any segregated asset account
underlying the Contract are not adequately diversified, in accordance with
regulations prescribed by the United States Treasury Department ("Treasury
Department"). Disqualification of the Contract as an annuity Contract would
result in imposition of federal income tax to the owner with respect to earnings
allocable to the Contract prior to the receipt of payments under the Contract.
The Code contains a safe harbor provision which provides that annuity Contracts,
such as the Contracts, meet the diversification requirements if, as of the close
of each calendar quarter, the underlying assets meet the diversification
standards for a regulated investment company, and no more than 55% of the total
assets consist of cash, cash items, U.S. government securities and securities of
other regulated investment companies.
The Treasury Department has issued Regulations establishing diversification
requirements for the mutual Funds underlying variable Contracts. These
Regulations amplify the diversification requirements for variable Contracts set
forth in the Code and provide an alternative to the safe harbor provision
described above. Under these Regulations, a mutual Fund will be deemed
adequately diversified if (1) no more than 55% of the value of the total assets
of the mutual Fund is represented by any one investment; (2) no more than 70% of
the value of the total assets of the mutual Fund is represented by any two
investments; (3) no more than 80% of the value of the total assets of the mutual
Fund is represented by any three investments; and (4) no more than 90% of the
value of the total assets of the mutual Fund is represented by any four
investments.
Jackson National intends that each Fund of the JNL Series Trust will be managed
by its respective investment adviser in such a manner as to comply with these
diversification requirements.
At the time the Treasury Department issued the diversification Regulations, it
did not provide guidance regarding the circumstances under which Contract owner
control of the investments of a segregated asset account would cause the
Contract owner to be treated as the owner of the assets of the segregated asset
account. Revenue Ruling 2003-91 provides such guidance by describing the
circumstances under which the owner of a variable contract will not possess
sufficient control over the assets underlying the contract to be treated as the
owner of those assets for federal income tax purposes.
Rev. Rul. 2003-91 considered certain variable annuity and variable life
insurance contracts and held that the types of actual and potential control that
the contract owners could exercise over the investment assets held by the
insurance company under these variable contracts was not sufficient to cause the
contract owners to be treated as the owners of those assets and thus to be
subject to current income tax on the income and gains produced by those assets.
Under the contracts in Rev. Rul. 2003-91 there was no arrangement, plan,
contract or agreement between the contract owner and the insurance company
regarding the availability of a particular investment option and other than the
contract owner's right to allocate premiums and transfer funds among the
available sub-accounts, all investment decisions concerning the sub-accounts
were made by the insurance company or an advisor in its sole and absolute
discretion. Twelve investment options were available under the contracts in Rev.
Rul. 2003-91 although the insurance company had the right to increase (but to no
more than 20) or decrease the number of sub-accounts at any time. The contract
owner was permitted to transfer amounts among the various investment options
without limitation, subject to incurring fees for more than one transfer per
30-day period.
Like the contracts described in Rev. Rul. 2003-91, under the Contract there will
be no arrangement, plan, contract or agreement between a Contract owner and
Jackson National regarding the availability of a particular Allocation Option
and other than the Contract owner's right to allocate premiums and transfer
funds among the available Allocation Options, all investment decisions
concerning the Allocation Options will be made by Jackson National or an advisor
in its sole and absolute discretion. The Contract will differ from the contracts
described in Rev. Rul. 2003-91 in two respects. The first difference is that the
contracts described in Rev. Rul. 2003-91 provided only twelve investment options
with the insurance company having the ability to add an additional eight options
whereas the Contract offers 55 Investment Divisions and 4 Fixed Accounts
although a Contract owner can select no more than 18 Allocation Options at any
one time. The second difference is that the owner of a contract in Rev. Rul.
2003-91 could only make one transfer per 30-day period without a fee whereas
during the accumulation phase, a Contract owner can make 15 transfers in any one
year without a charge.
Rev. Rul. 2003-91 states that whether the owner of a variable contract is to be
treated as the owner of the assets held by the insurance company under the
contract will depend on all of the facts and circumstances. Jackson National
does not believe that the differences between the Contract and the contracts
described in Rev. Rul. 2003-91 with respect to the number of investment choices
and the number of investment transfers that can be made under the Contract
without an additional charge should prevent the holding in Rev. Rul. 2003-91
from applying to the owner of a Contract. At this time, however, it cannot be
determined whether additional guidance will be provided by the IRS on this issue
and what standards may be contained in such guidance. Jackson National reserves
the right to modify the Contract to the extent required to maintain favorable
tax treatment.
MULTIPLE CONTRACTS
The Code provides that multiple annuity Contracts that are issued within a
calendar year to the same Contract owner by one company or its affiliates are
treated as one annuity Contract for purposes of determining the tax consequences
of any distribution. Such treatment may result in adverse tax consequences
including more rapid taxation of the distributed amounts from such multiple
Contracts. For purposes of this rule, Contracts received in a Section 1035
exchange will be considered issued in the year of the exchange. Owners should
consult a tax adviser prior to purchasing more than one annuity Contract in any
calendar year.
PARTIAL 1035 EXCHANGES
Section 1035 of the Code provides that an annuity Contract may be exchanged in a
tax-free transaction for another annuity Contract. Historically, it was presumed
that only the exchange of an entire Contract, as opposed to a partial exchange,
would be accorded tax-free status. In 1998 in CONWAY VS. COMMISSIONER, the Tax
Court held that the direct transfer of a portion of an annuity Contract into
another annuity Contract qualified as a non-taxable exchange. On November 22,
1999, the Internal Revenue Service filed an Action on Decision that indicated it
acquiesced in the Tax Court decision in CONWAY. However, in its acquiescence
with the decision of the Tax Court, the Internal Revenue Service stated that it
will challenge transactions where taxpayers enter into a series of partial
exchanges and annuitizations as part of a design to avoid application of the 10%
premature distribution penalty or other limitations imposed on annuity Contracts
under the Code. In the absence of further guidance from the Internal Revenue
Service it is unclear what specific types of partial exchange designs and
transactions will be challenged by the Internal Revenue Service. Due to the
uncertainty in this area owners should consult their own tax advisers prior to
entering into a partial exchange of an annuity Contract.
CONTRACTS OWNED BY OTHER THAN NATURAL PERSONS
Under Section 72(u) of the Code, the investment earnings on premiums for
Contracts will be taxed currently to the owner if the owner is a non-natural
person, e.g., a corporation or certain other entities. Such Contracts generally
will not be treated as annuities for federal income tax purposes. However, this
treatment is not applied to Contracts held by a trust or other entity as an
agent for a natural person nor to Contracts held by certain tax-qualified plans.
Purchasers should consult their own tax counsel or other tax adviser before
purchasing a Contract to be owned by a non-natural person.
TAX TREATMENT OF ASSIGNMENTS
An assignment or pledge of a Contract may have tax consequences. Any assignment
or pledge of a tax-qualified Contract may also be prohibited by ERISA in some
circumstances. Owners should, therefore, consult competent legal advisers should
they wish to assign or pledge their Contracts.
An assignment or pledge of all or any portion of the value of a Non-Qualified
Contract is treated under Section 72 of the Code as an amount not received as an
annuity. The value of the Contract assigned or pledged that exceeds the
aggregate premiums paid will be included in the individual's gross income. In
addition, the amount included in the individual's gross income could also be
subject to the 10% penalty tax discussed below under Non-Qualified Contracts.
An assignment or pledge of all or any portion of the value of a Qualified
Contract will disqualify the Qualified Contract. If the Qualified Contract is
part of a qualified pension or profit-sharing plan, the Code prohibits the
assignment or alienation of benefits provided under the plan. If the Qualified
Contract is an IRA annuity or a 403(b) annuity, the Code requires the Qualified
Contract to be nontransferable. If the Qualified Contract is part of an eligible
deferred compensation plan, amounts cannot be made available to plan
participants or beneficiaries: (1) until the calendar year in which the
participant attains age 70 1/2; (2) when the participant has a severance from
employment; or (3) when the participant is faced with an unforeseeable
emergency.
DEATH BENEFITS
Any death benefits paid under the Contract are taxable to the beneficiary. The
rules governing the taxation of payments from an annuity Contract, as discussed
above, generally apply to the payment of death benefits and depend on whether
the death benefits are paid as a lump sum or as annuity payments. Estate or gift
taxes may also apply.
TAX-QUALIFIED PLANS
The Contracts offered by the Prospectus are designed to be suitable for use
under various types of tax-qualified plans. Taxation of owners of a
tax-qualified Contract will vary based on the type of plan and the terms and
conditions of each specific plan. Owners, annuitants and beneficiaries are
cautioned that benefits under a tax-qualified Contract may be subject to the
terms and conditions of the plan, regardless of the terms and conditions of the
Contracts issued to Fund the plan.
TAX TREATMENT OF WITHDRAWALS
NON-QUALIFIED CONTRACTS
Section 72 of the Code governs treatment of distributions from annuity
Contracts. It provides that if the contract value exceeds the aggregate premiums
made, any amount withdrawn not in the form of an annuity payment will be treated
as coming first from the earnings and then, only after the income portion is
exhausted, as coming from the principal. Withdrawn earnings are included in a
taxpayer's gross income. Section 72 further provides that a 10% penalty will
apply to the income portion of any distribution. The penalty is not imposed on
amounts received: (1) after the taxpayer reaches 59 1/2; (2) upon the death of
the owner; (3) if the taxpayer is totally disabled as defined in Section
72(m)(7) of the Code; (4) in a series of substantially equal periodic payments
made at least annually for the life (or life expectancy) of the taxpayer or for
the joint lives (or joint life expectancies) of the taxpayer and his
beneficiary; (5) under an immediate annuity; or (6) which are allocable to
premium payments made prior to August 14, 1982.
With respect to (4) above, if the series of substantially equal periodic
payments is modified before the later of your attaining age 59 1/2 or five years
from the date of the first periodic payment, then the tax for the year of the
modification is increased by an amount equal to the tax which would have been
imposed (the 10% penalty tax) but for the exception, plus interest for the tax
years in which the exception was used.
TAX-QUALIFIED CONTRACTS
In the case of a withdrawal under a tax-qualified Contract, a ratable portion of
the amount received is taxable, generally based on the ratio of the individual's
cost basis to the individual's total accrued benefit under the retirement plan.
Special tax rules may be available for certain distributions from a
tax-qualified Contract. Section 72(t) of the Code imposes a 10% penalty tax on
the taxable portion of any distribution from qualified retirement plans,
including Contracts issued and qualified under Code Sections 401 (pension and
profit sharing plans), 403(b) (tax-sheltered annuities), individual retirement
accounts and annuities under 408(a) and (b) (IRAs) and Roth IRAs under 408A. To
the extent amounts are not included in gross income because they have been
rolled over to an IRA or to another eligible qualified plan, no tax penalty will
be imposed.
The tax penalty will not apply to the following distributions: (1) if
distribution is made on or after the date on which the owner or annuitant (as
applicable) reaches age 59 1/2; (2) distributions following the death or
disability of the owner or annuitant (as applicable) (for this purpose
"disability" is defined in Section 72(m)(7) of the Code); (3) upon separation
from service after attainment of age 55, distributions that are part of a series
of substantially equal periodic payments made not less frequently than annually
for the life (or life expectancy) of the owner or annuitant (as applicable) or
the joint lives (or joint life expectancies) of such owner or annuitant (as
applicable) and his or her designated beneficiary; (4) distributions to an owner
or annuitant (as applicable) who has separated from service after he has
attained age 55; (5) distributions made to the owner or annuitant (as
applicable) to the extent such distributions do not exceed the amount allowable
as a deduction under Code Section 213 to the owner or annuitant (as applicable)
for amounts paid during the taxable year for medical care; (6) distributions
made to an alternate payee pursuant to a qualified domestic relations order; (7)
distributions made on account of an IRS levy upon the qualified Contracts, (8)
distributions from an IRA after separation from employment for the purchase of
medical insurance (as described in Section 213(d)(1)(D) of the Code) for the
Contract owner or annuitant (as applicable) and his or her spouse and dependents
if the Contract owner or annuitant (as applicable) has received unemployment
compensation for at least 12 weeks (this exception will no longer apply after
the Contract owner or annuitant (as applicable) has been re-employed for at
least 60 days); (9) distributions from an IRA made to the owner or annuitant (as
applicable) to the extent such distributions do not exceed the qualified higher
education expenses (as defined in Section 72(t)(7) of the Code) (as applicable)
for the taxable year; and (10) distributions from an IRA made to the owner or
annuitant (as applicable) which are qualified first time home buyer
distributions (as defined in Section 72(t)(8) of the Code). The exceptions
stated in items (4) and (6) above do not apply in the case of an IRA. The
exception stated in (3) above applies to an IRA without the requirement that
there be a separation from service.
With respect to (3) above, if the series of substantially equal periodic
payments is modified before the later of your attaining age 59 1/2 or five years
from the date of the first periodic payment, then the tax for the year of the
modification is increased by an amount equal to the tax which would have been
imposed (the 10% penalty tax) but for the exception, plus interest for the tax
years in which the exception was used.
Withdrawals of amounts attributable to contributions made pursuant to a salary
reduction agreement (in accordance with Section 403(b)(11) of the Code) are
limited to the following: when the owner attains age 59 1/2, severs employment,
dies, becomes disabled (within the meaning of Section 72(m)(7) of the Code), or
in the case of hardship. Hardship withdrawals do not include any earnings on
salary reduction contributions. These limitations on withdrawals apply to: (1)
salary reduction contributions made after December 31, 1988; (2) income
attributable to such contributions; and (3) income attributable to amounts held
as of December 31, 1988. The limitations on withdrawals do not affect rollovers
or exchanges between certain tax-qualified plans. Tax penalties may also apply.
While the foregoing limitations only apply to certain Contracts issued in
connection with Section 403(b) plans, all owners should seek competent tax
advice regarding any withdrawals or distributions.
The taxable portion of a withdrawal or distribution from tax-qualified Contracts
may, under some circumstances, be "rolled over" into another eligible plan so as
to continue to defer income tax on the taxable portion. Such treatment is
available for an "eligible rollover distribution" made by certain types of plans
(as described above under "Taxes - Withholding Tax on Distributions") that is
transferred within 60 days of receipt into another eligible plan or an IRA.
Plans making such eligible rollover distributions are also required, with some
exceptions specified in the Code, to provide for a direct transfer of the
distribution to the transferee plan designated by the recipient.
Amounts received from IRAs may also be rolled over into other IRAs or certain
other plans, subject to limitations set forth in the Code.
Generally, distributions from a tax-qualified plan must commence no later than
April 1 of the calendar year following the year in which the employee attains
the later of age 70 1/2 or the date of retirement. In the case of an IRA,
distributions must commence no later than April 1 of the calendar year following
the year in which the owner attains age 70 1/2. Required distributions from
defined contribution plans and IRAs are determined by dividing the account
balance by the appropriate distribution period found in a uniform lifetime
distribution table set forth in IRS regulations. If the sole beneficiary is the
Contract holder's or employee's spouse and the spouse is more than 10 years
younger than the employee, a longer distribution period measured by the joint
life and last survivor expectancy of the Contract holder employee and spouse is
permitted to be used. Distributions under a defined benefit plan or an annuity
Contract must be paid in the form of periodic annuity payments for the
employee's life (or the joint lives of the employee and beneficiary) or over a
period certain that does not exceed the period under the uniform lifetime table
for the employee's age in the year in which the annuity starting date occurs. If
the required minimum distributions are not made, a 50% penalty tax on the amount
not distributed is imposed on the individual.
Prior to the date that annuity payments begin under an annuity Contract, the
required minimum distribution rules applicable to defined contribution plans and
IRAs will be used. For this purpose, the entire interest under an annuity
Contract is the account value under the Contract plus the actuarial value of any
other benefits such as guaranteed death benefits that will be provided under the
Contract. The IRS has announced that it is reconsidering this rule and that
during its reconsideration, the rule is not effective. The IRS has further
announced that if this rule, or a similar rule is adopted after its
reconsideration, such rule will not come into effect before January 2004.
TYPES OF TAX-QUALIFIED PLANS
The Contracts offered herein are designed to be suitable for use under various
types of tax-qualified plans. Taxation of participants in each tax-qualified
plan varies with the type of plan and terms and conditions of each specific
plan. Owners, Annuitants and Beneficiaries are cautioned that benefits under a
tax-qualified plan may be subject to the terms and conditions of the plan
regardless of the terms and conditions of the Contracts issued pursuant to the
plan. Some retirement plans are subject to distribution and other requirements
that are not incorporated into Jackson National's administrative procedures.
Jackson National is not bound by the terms and conditions of such plans to the
extent such terms conflict with the terms of a Contract, unless Jackson National
specifically consents to be bound. Owners, Annuitants and Beneficiaries are
responsible for determining that contributions, distributions and other
transactions with respect to the Contracts comply with applicable law.
A tax-qualified Contract will not provide any necessary or additional tax
deferral if it is used to fund a tax-qualified plan that is tax deferred.
However, the Contract has features and benefits other than tax deferral that may
make it an appropriate investment for a tax-qualified plan. Following are
general descriptions of the types of tax-qualified plans with which the
Contracts may be used. Such descriptions are not exhaustive and are for general
informational purposes only. The tax rules regarding tax-qualified plans are
very complex and will have differing applications depending on individual facts
and circumstances. Each purchaser should obtain competent tax advice prior to
purchasing a Contract issued under a tax-qualified plan.
Contracts issued pursuant to tax-qualified plans include special provisions
restricting Contract provisions that may otherwise be available as described
herein. Generally, Contracts issued pursuant to tax-qualified plans are not
transferable except upon surrender or annuitization. Various penalty and excise
taxes may apply to contributions or distributions made in violation of
applicable limitations. Furthermore, certain withdrawal penalties and
restrictions may apply to surrenders from Tax-Qualified Contracts. (See "Tax
Treatment of Withdrawals - Tax-Qualified Contracts" above.)
On July 6, 1983, the Supreme Court decided in ARIZONA GOVERNING COMMITTEE V.
NORRIS that benefits provided under an employer's deferred compensation plan
could not, under Title VII of the Civil Rights Act of 1964, vary between men and
women. The Contracts sold by Jackson National in connection with certain
Tax-Qualified Plans will utilize tables that do not differentiate on the basis
of sex. Such annuity tables will also be available for use in connection with
certain non-qualified deferred compensation plans.
(a) Tax-Sheltered Annuities
Section 403(b) of the Code permits the purchase of "tax-sheltered
annuities" by public schools and certain charitable, educational and
scientific organizations described in Section 501(c) (3) of the Code.
These qualifying employers may make contributions to the Contracts for
the benefit of their employees. Such contributions are not included in
the gross income of the employee until the employee receives
distributions from the Contract. The amount of contributions to the
tax-sheltered annuity is limited to certain maximums imposed by the
Code. Furthermore, the Code sets forth additional restrictions
governing such items as transferability, distributions,
non-discrimination and withdrawals. Employee loans are not allowed
under these Contracts. Any employee should obtain competent tax advice
as to the tax treatment and suitability of such an investment.
(b) Individual Retirement Annuities
Section 408(b) of the Code permits eligible individuals to contribute
to an individual retirement program known as an "individual retirement
annuity" ("IRA annuity"). Under applicable limitations, certain amounts
may be contributed to an IRA annuity that will be deductible from the
individual's gross income. IRA annuities are subject to limitations on
eligibility, contributions, transferability and distributions. Sales of
IRA annuities are subject to special requirements imposed by the Code,
including the requirement that certain informational disclosure be
given to persons desiring to establish an IRA. Purchasers of Contracts
to be qualified as IRA annuities should obtain competent tax advice as
to the tax treatment and suitability of such an investment.
(c) Roth IRA Annuities
Section 408A of the Code provides that individuals may purchase a
non-deductible IRA annuity, known as a Roth IRA annuity. Purchase
payments for Roth IRA annuities are limited to a maximum of $2,000 per
year and are not deductible from taxable income. The Economic Growth &
Tax Relief Reconciliation Act of 2001 (the "Act") increases the maximum
annual dollar limitation limit for IRA contributions (including Roth
IRA contributions) from $2,000 to $3,000 for calendar years 2002
through 2004; $4,000 for calendar years 2005 through 2007; and $5,000
for 2008. After 2008, the limit will be adjusted annually for inflation
in $500 increments. In addition, the Act allows individuals age 50 and
older to make additional catch-up IRA contributions. The otherwise
maximum contribution limit (before application of adjusted gross income
phase-out limits) for an individual who had celebrated his or her 50th
birthday before the end of the tax year is increased by $500 for 2002
through 2005, and $1,000 for 2006 and later.
Lower maximum limitations apply to individuals with adjusted gross
incomes between $95,000 and $110,000 in the case of single taxpayers,
between $150,000 and $160,000 in the case of married taxpayers filing
joint returns, and between $0 and $10,000 in the case of married
taxpayers filing separately. An overall $2,000 annual limitation
(increased as discussed above) continues to apply to all of a
taxpayer's IRA annuity contributions, including Roth IRA annuities and
non-Roth IRA annuities.
Qualified distributions from Roth IRA annuities are free from federal
income tax. A qualified distribution requires that the individual has
held the Roth IRA annuity for at least five years and, in addition,
that the distribution is made either after the individual reaches age
59 1/2, on the individual's death or disability, or as a qualified
first-time home purchase, subject to a $10,000 lifetime maximum, for
the individual, a spouse, child, grandchild, or ancestor. Any
distribution that is not a qualified distribution is taxable to the
extent of earnings in the distribution. Distributions are treated as
made from contributions first and therefore no distributions are
taxable until distributions exceed the amount of contributions to the
Roth IRA annuity. The 10% penalty tax and the regular IRA annuity
exceptions to the 10% penalty tax apply to taxable distributions from
Roth IRA annuities.
Amounts may be rolled over from one Roth IRA annuity to another Roth
IRA annuity. Furthermore, an individual may make a rollover
contribution from a non-Roth IRA annuity to a Roth IRA annuity, unless
the individual has adjusted gross income over $100,000 or the
individual is a married taxpayer filing a separate return. The
individual must pay tax on any portion of the IRA annuity being rolled
over that would be included in income if the distributions were not
rolled over. There are no similar limitations on rollovers from one
Roth IRA annuity to another Roth IRA annuity.
(d) Pension and Profit-Sharing Plans
The Internal Revenue Code permits employers, including self-employed
individuals, to establish various types of qualified retirement plans
for employees. These retirement plans may permit the purchase of the
Contracts to provide benefits under the plan. Contributions to the plan
for the benefit of employees will not be included in the gross income
of the employee until distributed from the plan. The tax consequences
to owners may vary depending upon the particular plan design. However,
the Code places limitations on all plans on such items as amount of
allowable contributions; form, manner and timing of distributions;
vesting and non-forfeitability of interests; nondiscrimination in
eligibility and participation; and the tax treatment of distributions,
transferability of benefits, withdrawals and surrenders. Purchasers of
Contracts for use with pension or profit sharing plans should obtain
competent tax advice as to the tax treatment and suitability of such an
investment.
(e) Eligible Deferred Compensation Plans -- Section 457
Under Code provisions, employees and independent contractors performing
services for state and local governments and other tax-exempt
organizations may participate in eligible deferred compensation plans
under Section 457 of the Code. The amounts deferred under a Plan that
meets the requirements of Section 457 of the Code are not taxable as
income to the participant until paid or otherwise made available to the
participant or beneficiary. As a general rule, the maximum amount that
can be deferred in any one year is the lesser of 100% of the
participant's includible compensation or the elective deferral
limitation. The Act increases the dollar limit on deferrals to conform
to the elective deferral limitation. The Act also increases the
elective deferral limitation to $11,000 for 2002 and in $1,000 annual
increments thereafter until it reaches $15,000 in 2006. The limit is
indexed for inflation after that in $500 increments. The Act also
increases the 33 1/3% of compensation limitation on deferrals to 100%
of compensation. In addition, the Act allows individuals in eligible
deferred compensation plans of state or local governments age 50 and
older to make additional catch-up contributions. The otherwise maximum
contribution limit for an individual who had celebrated his or her 50th
birthday before the end of the tax year is increased by $1,000 for 2002
and by additional $1,000 increments through 2006, when the catch-up
contribution will by $5,000. Catch-up contributions are also available
for participants in qualified pension and profit-sharing plans and
tax-sheltered annuities under Section 403(b) of the Code.
In limited circumstances, the plan may provide for additional catch-up
contributions in each of the last three years before normal retirement
age. Furthermore, the Code provides additional requirements and
restrictions regarding eligibility and distributions.
All of the assets and income of an eligible deferred compensation plan
established by a governmental employer must be held in trust for the
exclusive benefit of participants and their beneficiaries. For this
purpose, custodial accounts and certain annuity Contracts are treated
as trusts. The requirement of a trust does not apply to amounts under a
Plan of a tax-exempt (non-governmental) employer. In addition, the
requirement of a trust does not apply to amounts under a Plan of a
governmental employer if the Plan is not an eligible plan within the
meaning of section 457(b) of the Code. In the absence of such a trust,
amounts under the plan will be subject to the claims of the employer's
general creditors.
In general, distributions from a Plan are prohibited under section 457
of the Code unless made after the participant:
o attains age 701/2,
o severs employment,
o dies, or
o suffers an unforeseeable financial emergency as defined in the
regulations.
Under present federal tax law, amounts accumulated in a Plan of a tax-exempt
(non-governmental) employer under section 457 of the Code cannot be transferred
or rolled over on a tax-deferred basis except for certain transfers to other
Plans under Section 457. Amounts accumulated in a Plan of a state or local
government employer may be transferred or rolled over to another eligible
deferred compensation plan of a state or local government, an IRA, a qualified
pension or profit-sharing plan or a tax-sheltered annuity under Section 403(b)
of the Code.
NET INVESTMENT FACTOR
The net investment factor is an index applied to measure the net investment
performance of an Investment Division from one valuation date to the next. The
net investment factor for any Investment Division for any valuation period
during the accumulation and annuity phases is determined by dividing (a) by (b)
and then subtracting (c) from the result where:
(a) is the net result of:
(1) the net asset value of a Fund share held in the
Investment Division determined as of the valuation
date at the end of the valuation period, plus
(2) the per share amount of any dividend or other
distribution declared by the Fund if the
"ex-dividend" date occurs during the valuation
period, plus or minus
(3) a per share credit or charge with respect to any
taxes paid or reserved for by Jackson National NY
during the valuation period which are determined by
Jackson National NY to be attributable to the
operation of the Investment Division (no federal
income taxes are applicable under present law);
(b) is the net asset value of the Fund share held in the
Investment Division determined as of the valuation date at the
end of the preceding valuation period; and
(c) is the asset charge factor determined by Jackson National NY
for the valuation period to reflect the asset based charges
(the mortality and expense risks), administration charge, and
any applicable charges for optional benefits.
Also see "Income Payments (The Income Phase)" in the Prospectus.
Since the net investment factor may be greater than, less than, or equal to one,
and the factor that offsets the 3% investment rate assumed is slightly less than
one, the value of an annuity unit (which changes with the product of that
factor) and the net investment may increase, decrease or remain the same.
ACCUMULATION UNIT VALUES [TO BE UPDATED BY AMENDMENT]
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Financial statements and schedules included in Part A:
Not Applicable
(2) Financial statements and schedules included in Part B
[TO BE FILED BY AMENDMENT]:
JNLNY Separate Account I
Report of Independent Accountants as of December 31, 2003
Statement of Assets and Liabilities as of December 31, 2003
Statement of Operations for the Year Ended December 31, 2003
Statement of Changes in Net Assets for the Years Ended December
31, 2003 December 31, 2002 and December 31, 2001
Notes to Financial Statements
Jackson National Life Insurance Company of New York
Report of Independent Accountants as of December 31, 2003
Balance Sheet for the years ended December 31, 2003, 2002 and
2001
Income Statement for the years ended December 31, 2003,
2002, and 2001
Statement of Stockholder's Equity and Comprehensive Income
for the years ended December 31, 2003, 2002, and 2001
Statement of Cash Flows for the years ended
December 31, 2003, 2002 and 2001
Notes to Financial Statements
Item 24.(b) Exhibits
Exhibit No. Description
1. Resolution of Depositor's Board of Directors authorizing the
establishment of the Registrant, incorporated by reference to
Registrant's Registration Statement filed via EDGAR on October 3,
1997 (File Nos. 333-37175 and 811-08401).
2. Not Applicable
3.a General Distributor Agreement dated September 19, 1997, incorporated
by reference to Registrant's Registration Statement filed via EDGAR
on October 3, 1997 (File Nos. 333-37175 and 811-08401).
b. General Distributor Agreement dated June 30, 1998, incorporated
by reference to Registrant's Post-Effective Amendment No. 12 filed
via EDGAR on July 22, 2004 (File Nos. 333-70384 and 811-08401).
4.a. Specimen of the JNLNY Perspective Advisors II Fixed and Variable
Annuity Contract, attached hereto.
b. Specimen of Section 403(b) Tax Sheltered Annuity Endorsement, attached
hereto.
c. Specimen of Retirement Plan Endorsement, attached hereto.
d. Specimen of Individual Retirement Annuity Endorsement, attached hereto.
e. Specimen of Roth Individual Retirement Annuity Endorsement, attached
hereto.
f. Specimen of 2% Contract Enhancement Endorsement, attached hereto.
g. Specimen of Highest Anniversary Value Death Benefit Option Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No.
12 filed via EDGAR on July 22, 2004 (File Nos. 333-70384 and
811-08401).
h. Specimen of Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No.
12 filed via EDGAR on July 22, 2004 (File Nos. 333-70384 and
811-08401).
i. Specimen of 4% for Life Guaranteed Minimum Withdrawal Benefit Endorse-
ment, incorporated by reference to Registrant's Post-Effective
Amendment No. 12 filed via EDGAR on July 22, 2004 (File Nos. 333-70384
and 811-08401).
j. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit Endorse-
ment, incorporated by reference to Registrant's Post-Effective
Amendment No. 12 filed via EDGAR on July 22, 2004 (File Nos. 333-70384
and 811-08401).
5.a. Form of the JNLNY Perspective Advisors II Fixed and Variable Annuity
Application, attached hereto.
6.a. Declaration and Charter of Depositor, incorporated by reference to
Registrant's Registration Statement filed via EDGAR on October 3,
1997 (File Nos. 333-37175 and 811-08401).
b. By-laws of Depositor, incorporated by reference to Registrant's
Registration Statement filed via EDGAR on October 3, 1997 (File Nos.
333-37175 and 811-08401).
7.a. Variable Annuity GMIB Reinsurance Agreement [to be filed by amendment].
8. Not Applicable
9. Opinion and Consent of Counsel, attached hereto.
10. Consent of Independent Accountants [to be filed by amendment].
11. Not Applicable
12. Not Applicable
Item 25. Directors and Officers of the Depositor
Name and Principal Positions and Offices
Business Address with Depositor
Donald B. Henderson, Jr. Director
4A Rivermere Apartments
Bronxville, NY 10708
Henry J. Jacoby Director
305 Riverside Drive
New York, NY 10025
David L. Porteous Director
20434 Crestview Drive
Reed City, MI 49777
Donald T. DeCarlo Director
200 Manor Road
Douglaston, New York 11363
Herbert G. May III Chief Administrative Officer &
275 Grove St Building 2 Director
4th floor
Auburndale, MA 02466
Richard D. Ash Vice President -
1 Corporate Way Actuary & Appointed Actuary
Lansing, MI 48951
John B. Banez Vice President -
1 Corporate Way Systems and Programming
Lansing, MI 48951
James Binder Vice President -
1 Corporate Way Finance and Corporate Strategy
Lansing, MI 48951
John H. Brown Vice President - Government
1 Corporate Way Relations
Lansing, MI 48951
Joseph Mark Clark Vice President -
1 Corporate Way Policy Administration
Lansing, MI 48951
Marianne Clone Vice President - Administration -
1 Corporate Way Customer Service Center
Lansing, MI 48951
James B. Croom Vice President &
1 Corporate Way Deputy General Counsel
Lansing, MI 48951
Gerald W. Decius Vice President -
1 Corporate Way Systems Application Coordinator
Lansing, MI 48951
Lisa C. Drake Senior Vice President - Chief
1 Corporate Way Actuary
Lansing, MI 48951
Robert A. Fritts Senior Vice President &
1 Corporate Way Controller - Financial
Lansing, MI 48951 Operations
James D. Garrison Vice President - Tax
1 Corporate Way
Lansing, MI 48951
James Golembiewski Vice President & Chief of Compliance
1 Corporate Way for Separate Accounts, Senior
Lansing, MI 48951 Counsel & Assistant Secretary
Lou E. Hensley Vice President - Corporate
1 Corporate Way Development
Lansing, MI 48951
Andrew B. Hopping Executive Vice President,
1 Corporate Way Chief Financial Officer,
Lansing, MI 48951 Treasurer & Chairman of the Board
Stephen A. Hrapkiewicz, Jr. Senior Vice President - Human
1 Corporate Way Resources
Lansing, MI 48951
Clifford J. Jack Executive Vice President &
8055 E. Tufts Avenue Chief Distribution Officer
Suite 1000
Denver, CO 80237
Cheryl L. Johns Vice President - Life Division
1 Corporate Way
Lansing, MI 48951
Timo P. Kokko Vice President - Support
1 Corporate Way Services
Lansing, MI 48951
Everett W. Kunzelman Vice President - Underwriting
1 Corporate Way
Lansing, MI 48951
Clark P. Manning President, Chief Executive Officer
1 Corporate Way & Director
Lansing, MI 48951
Thomas J. Meyer Senior Vice President,
1 Corporate Way General Counsel &
Lansing, MI 48951 Secretary
Keith R. Moore Vice President - Technology
1 Corporate Way
Lansing, MI 48951
P. Chad Myers Senior Vice President - Asset/
1 Corporate Way Liability Management
Lansing, MI 48951
J. George Napoles Executive Vice President &
1 Corporate Way Chief Information Officer
Lansing, MI 48951
Mark D. Nerud Vice President - Fund
225 W. Wacker Drive Accounting & Administration
Suite 1200
Chicago, IL 60606
Russell E. Peck Vice President - Financial
1 Corporate Way Operations
Lansing, MI 48951
Bradley J. Powell Vice President - Institutional
210 Interstate North Parkway Marketing Group
Suite 401
Atlanta, GA 30339-2120
Laura L. Prieskorn Vice President - Model Office
1 Corporate Way
Lansing, MI 48951
James B. Quinn Vice President - Broker
1 Corporate Way Management
Lansing, MI 48951
James R. Sopha Executive Vice President -
1 Corporate Way Corporate Development
Lansing, MI 48951
Robert M. Tucker, Jr. Vice President - Regional
1 Corporate Way Information Technology
Lansing, MI 48951
Michael A. Wells Chief Operating Officer
401 Wilshire Boulevard & Director
Suite 1200
Santa Monica, CA 90401
Karen S. Weidman Vice President - Administration -
8055 E. Tufts Avenue Denver Service Center
Suite 1000
Denver, CO 80237
[Enlarge/Download Table]
Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant.
Company State of Organization Control/Ownership Business Principal
Alaiedon, LLC Michigan 100% Hermitage
Management LLC
Alcona Funding LLC Delaware 100% Jackson National Life Investment Related
Insurance Company Company
BH Clearing, LLC Michigan 100% Jackson National Life Broker/Dealer
Insurance Company
Berrien Funding LLC Delaware 100% Jackson National Life Investment Related
Insurance Company Company
Brooke Finance Corporation Delaware 100% Brooke Holdings, Inc. Finance Company
Brooke Holdings, Inc. Delaware 100% Brooke Holdings (UK) Holding Company Activities
Limited
Brooke Holdings (UK) Limited United Kingdom 100% Holborn Delaware Holding Company Activities
Corporation
Brooke Investment, Inc. Delaware 100% Brooke Holdings, Inc. Investment Related Company
Brooke Life Insurance Company Michigan 100% Brooke Holdings, Inc. Life Insurance
Brooke (Jersey) Limited United Kingdom 100% Prudential One Limited Holding Company Activities
Calhoun Funding LLC Delaware 100% Jackson National Life Investment Related
Insurance Company Company
Crescent Telephone Delaware 100% Jackson National Life Telecommunications
Insurance Company
Curian Capital, LLC Michigan 100% Jackson National Life Registered Investment
Insurance Company Advisor
GCI Holding Corporation Delaware 70% Jackson National Life Holding Company Activities
Insurance Company
Gloucester Holdings Delaware 100% Jackson National Life Adhesives
Insurance Company
GS28 Limited United Kingdom 100% Brooke Holdings (UK) Holding Company Activities
Limited
Hermitage Management, LLC Michigan 100% Jackson National Life Advertising Agency
Company Insurance
Holborn Delaware Corporation Delaware 100% Prudential Four Holding Company Activities
Limited
Holliston Mills Delaware 70% Jackson National Life Textile Mfg.
Insurance Company
Industrial Coatings Group Delaware 70% Jackson National Life Textile Mfg.
Insurance Company
IFC Holdings, Inc. Delaware 100% National Planning Broker/Dealer
Holdings Inc.
Investment Centers of America Delaware 100% IFC Holdings, Inc. Broker/Dealer
Jackson Federal Bank USA 100% Jackson National Savings & Loan
Life Insurance Company
JNL Investors Series Trust Massachusetts 100% Jackson National Investment Company
Life Insurance Company
Jackson National Asset Michigan 100% Jackson National Life Investment Adviser and
Management, LLC Insurance Company Transfer Agent
Jackson National Life Bermuda 100% Jackson National Life Insurance
(Bermuda) Ltd. Life Insurance Company
Jackson National Life Delaware 100% Jackson National Life Advertising/Marketing
Distributors, Inc. Insurance Company Corporation and
Broker/Dealer
Jackson National Life New York 100% Jackson National Life Life Insurance
Insurance Company of New York Insurance Company
JNLI LLC Delaware 100% Jackson National Life Tuscany Notes
Insurance Company
JNL Securities, LLC Michigan 100% Curian Capital, LLC Broker/Dealer and
Insurance Agency
JNL Series Trust Massachusetts Common Law Trust with Investment Company
contractual association
with Jackson National Life
Insurance Company of New
York
JNL Variable Fund LLC Delaware 100% Jackson National Investment Company
Separate Account - I
JNL Variable Fund III LLC Delaware 100% Jackson National Investment Company
Separate Account III
JNL Variable Fund IV LLC Delaware 100% Jackson National Investment Company
Separate Account IV
JNL Variable Fund V LLC Delaware 100% Jackson National Investment Company
Separate Account V
JNLNY Variable Fund I LLC Delaware 100% JNLNY Separate Investment Company
Account I
JNLNY Variable Fund II LLC Delaware 100% JNLNY Separate Investment Company
Account II
LePages Management Company, LP Delaware 50% LePages MC, LLC
LePages MC, LLC Delaware 100% PPM Management, Inc.
National Planning Corporation Delaware 100% National Planning Broker/Dealer and
Holdings, Inc. Investment Adviser
National Planning Holdings, Delaware 100% Brooke Holdings, Inc. Holding Company Activities
Inc.
Piedmont Funding LLC Delaware 100% Jackson National Life Investment Related
Insurance Company Company
PPM Holdings, Inc. Delaware 100% Brooke Holdings, Inc. Holding Company Activities
Prudential plc United Kingdom Publicly Traded Financial Institution
Prudential One Limited United Kingdom 100% Prudential plc Holding Company Activities
Prudential Two Limited United Kingdom 100% Prudential One Limited Holding Company Activities
Prudential Three Limited United Kingdom 100% Prudential One Limited Holding Company Activities
Prudential Four Limited United Kingdom 80% Prudential One Limited, Holding Company Activities
10% Prudential Two Limited,
10% Prudential Three
Limited
SII Investments, Inc. Wisconsin 100% National Planning Broker/Dealer
Holdings, Inc.
Item 27. Not applicable.
Item 28. Indemnification
Provision is made in the Company's By-Laws for indemnification by the Company of
any person made or threatened to be made a party to an action or proceeding,
whether civil or criminal by reason of the fact that he or she is or was a
director, officer or employee of the Company or then serves or has served any
other corporation in any capacity at the request of the Company, against
expenses, judgments, fines and amounts paid in settlement to the full extent
that officers and directors are permitted to be indemnified by the laws of the
State of New York.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 ("Act") may be permitted to directors, officers and controlling persons of
the Company pursuant to the foregoing provisions, or otherwise, the Company has
been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
liabilities (other than the payment by the Company of expenses incurred or paid
by a director, officer or controlling person of the Company in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
Company will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriter
(a) Jackson National Life Distributors, Inc. acts as general distributor
for the JNLNY Separate Account I. Jackson National Life Distributors,
Inc. also acts as general distributor for the Jackson National
Separate Account - I, the Jackson National Separate Account III, the
Jackson National Separate Account V, and the JNLNY Separate Account
II.
(b) Directors and Officers of Jackson National Life Distributors, Inc.:
NAME AND BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER
------------------------- --------------------------------------
Michael A. Wells Director
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
Andrew B. Hopping Director and Chief Financial Officer
1 Corporate Way
Lansing, MI 48951
Clifford J. Jack President and Chief Executive Officer
8055 E. Tufts Avenue
Suite 1000
Denver, CO 80237
Nikhil Advani Vice President - Product Management
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Stephen M. Ash Vice President - Finance
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Michael Bell Senior Vice President and Chief Legal Officer
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Kristen (West) Billows Vice President - Fixed Annuities Marketing
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
William Britt Vice President - Market Planning and
8055 E. Tufts Avenue Analysis
Suite 1100
Denver, CO 80237
Tori Bullen Vice President - Institutional Marketing
210 Interstate North Parkway Group
Suite 401
Atlanta, GA 30339-2120
Doug Campbell Senior Vice President and National Sales
8055 E. Tufts Avenue Director
Suite 1100
Denver, CO 80237
Maura Collins Vice Presdent - Regulatory Accounting and
8055 E. Tufts Avenue Special Projects
Suite 1100
Denver, CO 80237
Robert DeChellis Executive Vice President - National Sales
8055 E. Tufts Avenue Manager
Suite 1000
Denver, CO 80237
Anthony L. Dowling Assistant Vice President and
8055 E. Tufts Avenue Chief Compliance Officer
Suite 1100
Denver, CO 80237
Joseph D. Emanuel Executive Vice President
8055 E. Tufts Avenue
Suite 1000
Denver, CO 80237
Steve Goldberg Vice President - Guaranteed Product
8055 E. Tufts Avenue Development
Suite 1100
Denver, CO 80237
Luis Gomez Vice President - Marketing
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Thomas Hurley Vice President - Market Research
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
John Kawauchi Senior Vice President - Marketing
8055 E. Tufts Avenue and Corporate Communications
Suite 1100
Denver, CO 80237
Steve Kluever Vice President - Variable Product
8055 E. Tufts Avenue Development
Suite 1100
Denver, CO 80237
David R. Lilien Senior Vice President - National Sales
8055 E. Tufts Avenue Development
Suite 1100
Denver, CO 80237
James Livingston Senior Vice President - Product Development
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Susan McClure Vice President - Business Development and
8055 E. Tufts Avenue Chief of Staff
Suite 1100
Denver, CO 80237
Thomas J. Meyer Secretary
1 Corporate Way
Lansing, MI 48951
Michael Nicola Senior Vice President - Strategic
8055 E. Tufts Avenue Relationships
Suite 1100
Denver, CO 80237
Bradley J. Powell Executive Vice President
210 Interstate North Parkway
Suite 401
Atlanta, GA 30339-2120
Peter Radloff Vice President - Marketing
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Gregory B. Salsbury Executive Vice President
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Marilynn Scherer Vice President - National Sales Development
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Greg Smith Senior Vice President - Project Management/
8055 E. Tufts Avenue Business Solutions
Suite 1100
Denver, CO 80237
David Sprague Vice President - National Sales Development
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Daniel Starishevsky Vice President - Variable Annuity Marketing
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Doug Townsend Vice President, Controller and FinOp
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Ray Trueblood Vice President - National Sales Development
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
Phil Wright Vice President - Communications
8055 E. Tufts Avenue
Suite 1100
Denver, CO 80237
[Enlarge/Download Table]
(c)
NEW UNDERWRITING COMPENSATION ON
NAME OF PRINCIPAL DISCOUNTS AND REDEMPTION BROKERAGE
UNDERWRITER COMMISSIONS OR ANNUITIZATION COMMISSIONS COMPENSATION
----------- ----------- ----------- ----------- -----------
Jackson National Life
Distributors, Inc. Not Applicable Not Applicable Not Applicable Not Applicable
Item 30. Location of Accounts and Records
Jackson National Life Insurance Company of New York
2900 Westchester Avenue
Purchase, NY 10577
Jackson National Life Insurance Company of New York
Annuity Service Center
8055 East Tufts Ave., Second Floor
Denver, CO 80237
Jackson National Life Insurance Company of New York
Institutional Marketing Group Service Center
1 Corporate Way
Lansing, MI 48951
Jackson National Life Insurance Company of New York
225 West Wacker Drive, Suite 1200
Chicago, IL 60606
Item 31. Management Services
Not Applicable
Item 32. Undertakings and Representations
a. Jackson National Life Insurance Company of New York hereby undertakes
to file a post-effective amendment to this registration statement as
frequently as is necessary to ensure that the audited financial
statements in the registration statement are never more than sixteen
(16) months old for so long as payment under the variable annuity
contracts may be accepted.
b. Jackson National Life Insurance Company of New York hereby undertakes
to include either (1) as part of any application to purchase a
contract offered by the Prospectus, a space that an applicant can
check to request a Statement of Additional Information, or (2) a
postcard or similar written communication affixed to or included in
the Prospectus that the applicant can remove to send for a Statement
of Additional Information.
c. Jackson National Life Insurance Company of New York hereby undertakes
to deliver any Statement of Additional Information and any financial
statement required to be made available under this Form promptly upon
written or oral request.
d. Jackson National Life Insurance Company of New York represents that
the fees and charges deducted under the contract, in the aggregate,
are reasonable in relation to the services rendered, the expenses to
be incurred, and the risks assumed by Jackson National Life Insurance
Company of New York.
e. The Registrant hereby represents that any contract offered by the
prospectus and which is issued pursuant to Section 403(b) of the
Internal Revenue Code of 1986, as amended, is issued by the
Registrant in reliance upon, and in compliance with, the Securities
and Exchange Commission's industry-wide no-action letter to the
American Council of Life Insurance (publicly available November 28,
1988) which permits withdrawal restrictions to the extent necessary
to comply with IRC Section 403(b)(11).
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant certifies that it and has caused this Registration
Statement to be signed on its behalf, in the City of Lansing, and State of
Michigan, on this 19th day of August, 2004.
JNLNY Separate Account I
(Registrant)
By: Jackson National Life Insurance Company of New York
By: /s/ Thomas J. Meyer
-----------------------------------------------
Thomas J. Meyer
Senior Vice President, General Counsel,
Secretary and Director
Jackson National Life Insurance Company of New York (Depositor)
By: /s/ Thomas J. Meyer
-----------------------------------------------
Thomas J. Meyer
Senior Vice President, General Counsel,
Secretary and Director
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
indicated.
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Clark P. Manning Date
President and Chief Executive Officer
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Andrew B. Hopping Date
Executive Vice President,
Chief Financial Officer,
Treasurer and Chairman of
the Board
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Herbert G. May III Date
Chief Administrative Officer and Director
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Bradley J. Powell Date
Vice President - IMG and Director
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
James G. Golembiewski Date
Vice President & Chief of Compliance
for Separate Accounts, Senior
Counsel & Assistant Secretary
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Thomas J. Meyer Date
Senior Vice President, General Counsel,
Secretary and Director
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Donald B. Henderson, Jr. Date
Director
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Henry J. Jacoby Date
Director
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
David C. Porteous Date
Director
/S/ THOMAS J. MEYER* August 19, 2004
---------------------------- ---------------
Donald T. DeCarlo Date
Director
* Thomas J. Meyer, Attorney In Fact
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as a
director and/or officer of JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
(the Depositor), a New York corporation, hereby appoints Andrew B. Hopping,
Thomas J. Meyer and Clark P. Manning (with full power to each of them to act
alone) his attorney-in-fact and agent, each with full power of substitution and
resubstitution, for and in his name, place and stead, in any and all capacities,
to execute, deliver and file in the names of the undersigned, any of the
documents referred to below relating to the registration statement on Form N-4,
under the Investment Company Act of 1940, as amended, and under the Securities
Act of 1933, as amended, covering the registration of a Variable Annuity
Contract issued by JNLNY Separate Account I (the Registrant), including the
initial registration statements, any amendment or amendments thereto, with all
exhibits and any and all documents required to be filed with respect thereto
with any regulatory authority. Each of the undersigned grants to each of said
attorney-in-fact and agent, full authority to do every act necessary to be done
in order to effectuate the same as fully, to all intents and purposes as he
could do in person, thereby ratifying all that said attorney-in-fact and agent,
may lawfully do or cause to be done by virtue hereof.
This Power of Attorney may be executed in one or more counterparts, each
of which shall be deemed to be an original, and all of which shall be deemed to
be a single document.
IN WITNESS WHEREOF, each of the undersigned director and/or officer
hereby executes this Power of Attorney as of the 5th day of January, 2004.
/S/ CLARK P. MANNING
-------------------------------------
Clark P. Manning
President and Chief Executive Officer
/S/ ANDREW B. HOPPING
-------------------------------------
Andrew B. Hopping
Executive Vice President, Chief
Financial Officer and Director
/S/ BRADLEY J. POWELL
-------------------------------------
Bradley J. Powell
Vice President - IMG and Director
/S/ HERBERT G. MAY III
-------------------------------------
Herbert G. May III
Chief Administrative Officer and
Director
/S/ JAMES G. GOLEMBIEWSKI
-------------------------------------
James G. Golembiewski
Vice President, Associate General
Counsel and Director
/S/ THOMAS J. MEYER
-------------------------------------
Thomas J. Meyer
Senior Vice President, General
Counsel and Director
/S/ DONALD B. HENDERSON, JR.
-------------------------------------
Donald B. Henderson, Jr.
Director
/S/ HENRY J. JACOBY
-------------------------------------
Henry J. Jacoby
Director
/S/ DAVID L. PORTEOUS
-------------------------------------
David L. Porteous
Director
/S/ DONALD T. DECARLO
-------------------------------------
Donald T. DeCarlo
Director
Exhibit List
Exhibit No. Description
4.a. Specimen of the JNLNY Perspective Advisors II Fixed and Variable
Annuity Contract, attached hereto as EX-4.a.
b. Specimen of Section 403(b) Tax Sheltered Annuity Endorsement,
attached hereto as EX-4.b.
c. Specimen of Retirement Plan Endorsement, attached hereto as
EX-4.c.
d. Specimen of Individual Retirement Annuity Endorsement, attached
hereto as EX-4.d.
e. Specimen of Roth Individual Retirement Annuity Endorsement,
attached hereto as EX-4.e.
f. Specimen of 2% Contract Enhancement Endorsement, attached hereto
as EX-4.f.
5.a. Form of the JNLNY Perspective Advisors II Fixed and Variable
Annuity Application, attached hereto as EX-5.a.
9. Opinion and Consent of Counsel, attached hereto as EX-9.
Dates Referenced Herein and Documents Incorporated by Reference
64 Subsequent Filings that Reference this Filing
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