Document/Exhibit Description Pages Size
1: 485BPOS Post-Effective Amendment 738 4.30M
2: EX-99 Application 6 52K
4: EX-99 Endorsement 15 53K
3: EX-99 Endorsements 2 10K
6: EX-99 Legal Opinion 1 8K
7: EX-99 Miscellaneous Exhibit 1 6K
5: EX-99 Reinsurance 11± 62K
As filed with the Securities and Exchange Commission on April 2, 2009
Commission File Nos. 333-119659
811-08401
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM N-4
______________
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. | |
Post-Effective Amendment No. 13 |X|
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 149 |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:
Anthony L. Dowling, Esq.
Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951
It is proposed that this filing will become effective:
___ immediately upon filing pursuant to paragraph (b)
_X_ on April 6, 2009, pursuant to paragraph (b)
___ 60 days after filing pursuant to paragraph (a)(1)
___ on [date] pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
____ This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
PERSPECTIVE(SM) L SERIES
FLEXIBLE PREMIUM FIXED AND VARIABLE DEFERRED ANNUITY
Issued by
Jackson National Life Insurance Company of New York(R) and through
JNLNY Separate Account I
The date of this prospectus is April 6, 2009, which states the information about
the Separate Account, the Contract, and Jackson National Life Insurance Company
of New York ("Jackson of NY(SM)") you should know before investing. This
prospectus provides a description of the material rights and obligations under
the Contract. Your Contract and any endorsements are the formal contractual
agreement between you and the Company. It is important that you read the
Contract and endorsements. 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 April 6, 2009 that is available upon
request without charge. To obtain a copy, contact us at our:
Jackson of NY Service Center
P.O. Box 30902
Lansing, Michigan 48909-8402
1-800-599-5651
www.jackson.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. Broker-dealers selling the Contracts may limit the availability of an
optional feature. Ask your representative about what optional features are or
are not offered. If a particular optional feature that interests you is not
offered, you may want to contact another broker-dealer to explore its
availability. 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. We reserve the right to limit the
number of Contracts that you may purchase. We also reserve the right to refuse
any premium payment. Please confirm with us or your representative that you have
the most current prospectus and supplements to the prospectus that describe the
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 with different product features,
benefits and charges.
The SAI is incorporated by reference into this prospectus, and its table of
contents begins on page 178. 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.
Jackson intends to rely on newly adopted SEC Rule 12h-7 to the extent it may be
determined to be applicable to variable insurance products.
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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 allocation fixed and variable options. The
variable options are Investment Divisions of the Separate Account, each of which
invests in one of the following funds - all class A shares (the "Funds"):
2
JNL Series Trust
----------------
JNL Institutional Alt 20 Fund
JNL Institutional Alt 35 Fund
JNL Institutional Alt 50 Fund
JNL Institutional Alt 65 Fund
JNL/AIM Global Real Estate Fund
JNL/AIM International Growth Fund
JNL/AIM Large Cap Growth Fund
JNL/AIM Small Cap Growth Fund
JNL/Capital Guardian Global Balanced Fund
JNL/Capital Guardian Global Diversified Research Fund
JNL/Capital Guardian International Small Cap Fund
JNL/Capital Guardian U.S. Growth Equity Fund
JNL/Credit Suisse Global Natural Resources Fund
JNL/Credit Suisse Long/Short Fund
JNL/Eagle Core Equity Fund
JNL/Eagle SmallCap Equity Fund
JNL/Franklin Templeton Founding Strategy Fund
JNL/Franklin Templeton Global Growth Fund
JNL/Franklin Templeton Income Fund
JNL/Franklin Templeton Mutual Shares Fund
JNL/Franklin Templeton Small Cap Value Fund
JNL/Goldman Sachs Core Plus Bond
JNL/Goldman Sachs Emerging Markets Debt Fund
JNL/Goldman Sachs Mid Cap Value Fund
JNL/Goldman Sachs Short Duration Bond Fund
JNL/JPMorgan International Value Fund
JNL/JPMorgan MidCap Growth Fund
JNL/JPMorgan U.S. Government & Quality Bond Fund
JNL/Lazard Emerging Markets Fund
JNL/Lazard Mid Cap Equity Fund
JNL/M&G Global Basics Fund
JNL/M&G Global Leaders Fund
JNL/Mellon Capital Management European 30 Fund
JNL/Mellon Capital Management Pacific Rim 30 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 International Index Fund
JNL/Mellon Capital Management Bond Index Fund
JNL/Mellon Capital Management Index 5 Fund
JNL/Mellon Capital Management 10 x 10 Fund
JNL/Oppenheimer Global Growth Fund
JNL/PAM Asia ex-Japan Fund
JNL/PAM China-India Fund
JNL/PIMCO Real Return Fund
JNL/PIMCO Total Return Bond Fund
JNL/PPM America Core Equity Fund
JNL/PPM America High Yield Bond Fund
JNL/PPM America Mid Cap Value Fund
JNL/PPM America Small Cap Value Fund
JNL/PPM America Value Equity Fund
JNL/Red Rocks Listed Private Equity Fund
JNL/Select Balanced 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 Moderate Growth Fund
JNL/S&P Managed Growth Fund
JNL/S&P Managed Aggressive Growth Fund
JNL/S&P Retirement Income Fund
JNL/S&P Retirement 2015 Fund
JNL/S&P Retirement 2020 Fund
JNL/S&P Retirement 2025 Fund
JNL/S&P Disciplined Moderate Fund
JNL/S&P Disciplined Moderate Growth Fund
JNL/S&P Disciplined Growth Fund
JNL/S&P Competitive Advantage Fund
JNL/S&P Dividend Income & Growth Fund
JNL/S&P Intrinsic Value Fund
JNL/S&P Total Yield Fund
JNL/S&P 4 Fund
JNL Variable Fund LLC
----------------------
JNL/Mellon Capital Management Nasdaq(R) 25 Fund
JNL/Mellon Capital Management Value Line(R) 30 Fund
JNL/Mellon Capital Management Dow(SM) Dividend Fund
JNL/Mellon Capital Management S&P(R) 24 Fund
JNL/Mellon Capital Management 25 Fund
JNL/Mellon Capital Management Select Small-Cap Fund
JNL/Mellon Capital Management JNL 5 Fund
JNL/Mellon Capital Management VIP Fund
JNL/Mellon Capital Management JNL Optimized 5 Fund
JNL/Mellon Capital Management S&P(R) SMid 60 Fund
JNL/Mellon Capital Management NYSE(R) International 25 Fund
JNL/Mellon Capital Management Communications Sector Fund
JNL/Mellon Capital Management Consumer Brands Sector Fund
JNL/Mellon Capital Management Financial Sector Fund
JNL/Mellon Capital Management Healthcare Sector Fund
JNL/Mellon Capital Management Oil & Gas Sector Fund
JNL/Mellon Capital Management Technology Sector Fund
3
Underscored are the Funds that are newly available, recently underwent name
changes, or were subject to a merger, as may be explained in the accompanying
parenthetical. The Funds are not the same mutual funds that you would buy
through your stockbroker or a retail mutual fund. The prospectuses for the Funds
are attached to this prospectus.
In addition, the JNL/Lazard Small Cap Equity Fund and the JNL/Mellon Capital
Management Enhanced S&P 500 Stock Index Fund were previously offered as Funds
under this Contract. However, effective April 6, 2009, these Funds were merged
with the JNL/Mellon Capital Management Small Cap Index Fund and the JNL/Mellon
Capital Management S&P 500 Index Fund, respectively, as outlined below:
[Enlarge/Download Table]
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CURRENTLY OFFERED FUNDS PREVIOUSLY OFFERED FUNDS
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JNL/Mellon Capital Management S&P 500 Index Fund JNL/Mellon Capital Management Enhanced
S&P 500 Stock Index Fund
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JNL/Mellon Capital Management Small Cap Index Fund JNL/Lazard Small Cap Equity Fund
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4
TABLE OF CONTENTS
GLOSSARY ................................................................. 6
KEY FACTS ................................................................
FEES AND EXPENSES TABLES ................................................. 8
EXAMPLE .................................................................. 18
THE ANNUITY CONTRACT ..................................................... 18
JACKSON OF NY ............................................................ 19
THE FIXED ACCOUNT ........................................................ 19
THE SEPARATE ACCOUNT ..................................................... 20
INVESTMENT DIVISIONS ..................................................... 20
CONTRACT CHARGES ......................................................... 33
DISTRIBUTION OF CONTRACTS ................................................ 47
PURCHASES ................................................................ 49
TRANSFERS AND FREQUENT TRANSFER RESTRICTIONS ............................. 51
TELEPHONE AND INTERNET TRANSACTIONS ...................................... 52
ACCESS TO YOUR MONEY ..................................................... 53
INCOME PAYMENTS (THE INCOME PHASE) ....................................... 161
DEATH BENEFIT ............................................................ 168
TAXES .................................................................... 172
OTHER INFORMATION ........................................................ 175
PRIVACY POLICY ........................................................... 177
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION ............. 178
APPENDIX A (Trademarks, Services Marks, and Related Disclosures) ......... A-1
APPENDIX B (Contract Enhancement Recapture Charges) ...................... B-1
APPENDIX C (Broker-Dealer Support) ....................................... C-1
APPENDIX D (GMWB Prospectus Examples) .................................... D-1
APPENDIX E (FutureGuard 6 GMIB Prospectus Examples) ...................... E-1
APPENDIX F (Accumulation Unit Values) .................................... F-1
5
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. Any reference
to Annuitant includes any joint Annuitant.
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.
Completed Year - the succeeding twelve months from the date on which we receive
a premium payment.
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 Month - the period of time between consecutive monthly anniversaries of
the Contract's Issue Date.
Contract Quarterly Anniversary - each three-month anniversary of the Contract's
Issue Date.
Contract Value - the sum of your allocations between the Contract's Fixed
Account and Investment Divisions.
Contract Year - the succeeding twelve months from a Contract's Issue Date and
every anniversary.
Interest Rate Adjustment - an adjustment to the Contract Value allocated to the
Fixed Account that is withdrawn, transferred, or annuitized before the end of
the specified period.
Fixed Account - part of our General Account to which the Contract Value you
allocate is guaranteed to earn a stated rate of return over the specified
period.
General Account - the General Account includes all our assets, including any
Contract Value you allocate 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.
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 called variable because
the return on investment is not guaranteed.
Jackson 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.) Any reference to the Owner
includes any joint Owner.
Separate Account - JNLNY Separate Account I. The Separate Account is divided
into sub-accounts generally referred to as Investment Divisions.
6
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.
[Enlarge/Download Table]
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Allocation Options The Contract makes available a Fixed Account and Investment Divisions for allocation of your
------------------ premium payments and Contract Value. Allocations to the Fixed Account for a specified period
of one year may remain for one year, and we may require equal monthly transfers to the
Investment Divisions during the time. For more information about the Fixed Account, please
see "THE FIXED ACCOUNT" beginning on page 19. For more information about the
Investment Divisions, please see "INVESTMENT DIVISIONS" beginning on page 20.
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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, if it is not issued
under a qualified retirement plan. Qualified plans confer their own tax deferral. For more
information, please see "TAXES" beginning on page 172.
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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, including time limitations. For more
information, please see "FREE LOOK" beginning on page 176.
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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 fees, conditions and
limitations. The Contract also has a premium protection option, namely the Capital Protection
Program. For more information, please see "PURCHASES" beginning on page 49.
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Withdrawals Before the Income Date, there are a number of ways to access your Contract Value, generally
----------- subject to a charge or adjustment, particularly during the early Contract Years. There are also a
number of optional withdrawal benefits available. The Contract has a free withdrawal
provision and waives the charges and adjustments in the event you may require extended care.
For more information, please see "ACCESS TO YOUR MONEY" beginning on page 53.
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Income Payments There are a number of income options available, including an optional, guaranteed minimum
--------------- income benefit. For more information, please see "INCOME PAYMENTS (THE INCOME
PHASE)" beginning on page 161.
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Death Benefit The Contract has a death benefit that becomes payable if you die before the Income Date.
------------- Optional death benefit are also available. For more information, please see "DEATH
BENEFIT" beginning on page 168.
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7
FEES AND EXPENSES TABLES
The following tables describe the fees and expenses that you will pay when
purchasing, owning and surrendering the Contract. The first table (and
footnotes) 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.
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Owner Transaction Expenses
--------------------------
Front-end Sales Load None
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Maximum Withdrawal Charge (1) -
Percentage of premium withdrawn, if applicable 7%
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Maximum Contract Enhancement Recapture Charge (2) -
Percentage of the corresponding first year premiums withdrawn 3%
with a Contract Enhancement
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Maximum Premium Taxes (3) -
Percentage of each premium 2%
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Transfer Charge (4) -
Per transfer after 15 in a Contract Year $ 25
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Expedited Delivery Charge (5) $22.50
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(1) There may be a withdrawal charge on these withdrawals of Contract Value:
withdrawals in excess of the free withdrawal amount; withdrawals under a
tax-qualified Contract that exceed the minimum distribution requirements
of the Internal Revenue Code; withdrawals in excess of the free withdrawal
amount to meet the minimum distribution requirements of a tax-qualified
Contract purchased with contributions from a nontaxable transfer, after
the Owner's death, of an Individual Retirement Annuity (IRA), or to meet
the minimum distribution requirements of a Roth IRA annuity; and a total
withdrawal. The withdrawal charge is a schedule lasting four Completed
Years:
Completed Years Since Receipt Of Premium -
0 1 2 3 4+
-----------------------------------------------------------
Base Schedule 7% 6% 5% 4% 0%
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(2) Contract Enhancements (C.E.) are subject to recapture charges in addition
to asset-based charges for specified periods. There may be a recapture
charge on these withdrawals of Contract Value with a Contract Enhancement
if the Contract is returned during the free look period; withdrawals in
excess of the free withdrawal amounts; withdrawals that exceed the
required minimum distribution of the Internal Revenue Code; and a total
withdrawal. The recapture charge schedule is based on Completed Years and
depends on your Contract Enhancement:
Completed Years Since Receipt Of Premium -
0 1 2 3 4 5 6 7+
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2% C.E. 2% 2% 1.25% 1.25% 0.5% 0 0 0
----------------------------------------------------------------------
3% C.E. 3% 3% 2% 2% 2% 1% 1% 0
----------------------------------------------------------------------
4% C.E. 3% 3% 2% 2% 2% 1% 1% 0
(3) Currently, premium taxes do not apply.
(4) We do not count transfers in conjunction with dollar cost averaging,
earnings sweep and automatic rebalancing, and automatic transfers from the
Fixed Account.
(5) For overnight delivery on Saturday; otherwise, the overnight delivery
charge is $10 for withdrawals. We also charge $20 for wire transfers in
connection with withdrawals.
The next table (and footnotes) 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.
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Periodic Expenses
-----------------
Base Contract
-------------
Annual Contract Maintenance Charge (6) $ 30
Separate Account Annual Expenses
Annual percentage of average daily account value of
Investment Divisions 1.65%
Mortality And Expense Risk Charge 1.50%
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8
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Administration Charge (7) 0.15%
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Total Separate Account Annual Expenses for Base Contract 1.65%
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Optional Endorsements - A variety of optional endorsements to the Contract are
available. Please see the footnotes for additional information on the various
optional endorsement charges.
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The following optional endorsement charges are based on average daily net asset
value. You may select one from each grouping below(8):
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4% Contract Enhancement Maximum Annual Charge (9) 0.56%
3% Contract Enhancement Maximum Annual Charge (9) 0.42%
2% Contract Enhancement Maximum Annual Charge (10) 0.395%
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The following optional death benefit endorsement charges are based on either
average daily net asset value or on a benefit base and are indicated as such.
Please see the footnotes for additional information on the various optional
death benefit endorsement charges. You may select one of the available benefits
listed below(8):
Average Daily Net Asset Value Based Charges
Highest Anniversary Value Death Benefit Maximum Annual Charge (11) 0.40%
Benefit Based Charges
LifeGuard Freedom DB(SM) Maximum Annual Charge (only available if the
LifeGuard Freedom GMWB is also selected) (12) 0.60%
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The following optional endorsement charges are benefit based. Please see the
footnotes for additional information on the various optional endorsement
charges. You may select one of the available benefits listed below(8):
[Enlarge/Download Table]
Guaranteed Minimum Income Benefit (GMIB) Maximum Annual Charge ("FutureGuard(SM)")
(no longer offered as of October 6, 2008) (13) 0.60%
GMIB Maximum Annual Charge ("FutureGuard 6(SM)")(no longer offered as of April 6, 2009) (14) 0.90%
7% Guaranteed Minimum Withdrawal Benefit (GMWB) Maximum Annual Charge (no longer offered
as of March 31, 2008)("SafeGuard 7 Plus(SM)") (15) 0.75%
Guaranteed Minimum Withdrawal Benefit With 5-Year Step-Up Maximum Annual Charge
("SafeGuard Max(SM)") (16) 0.81%
5% GMWB With Annual Step-Up Maximum Annual Charge ("AutoGuard 5(SM)," formerly
"AutoGuard(R)") (17) 1.47%
6% GMWB With Annual Step-Up Maximum Annual Charge ("AutoGuard 6(SM)") (18) 1.62%
5% GMWB Without Step-Up Maximum Annual Charge (no longer offered as of October 6, 2008)
("MarketGuard 5(R)") (19) 0.51%
5% for Life GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as of
April 30, 2007)("LifeGuard Protector(SM)") (20) 1.47%
5% for Life GMWB With Bonus and Annual Step-Up Maximum Annual Charge (no
longer offered as of March 31, 2008)("LifeGuard Advantage(SM)," formerly
"LifeGuard Protector Advantage(SM)") (21) 1.50%
5% for Life GMWB With Bonus and 5-Year Step-Up Maximum Annual Charge (no longer offered
as of April 30, 2007)("LifeGuard Protector Plus(SM)") (22) 1.47%
Joint 5% for Life GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as
of April 30, 2007)("LifeGuard Protector with Joint Option") (23) 1.62%
Joint 5% for Life GMWB With Bonus and 5-Year Step-Up Maximum Annual Charge (no longer
offered as of April 30, 2007)("LifeGuard Protector Plus with Joint Option") (24) 1.71%
For Life GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as of
March 31, 2008)("LifeGuard Ascent(SM)") (25) 1.50%
Joint For Life GMWB With Annual Step-Up Maximum Annual Charge (no longer offered as of
March 31, 2008)("LifeGuard Ascent With Joint Option") (26) 1.71%
For Life GMWB With Bonus and Annual Step-Up Maximum Annual Charge ("LifeGuard
Freedom(SM) GMWB") (27) 1.50%
Joint For Life GMWB With Bonus and Annual Step-Up Maximum Annual Charge ("LifeGuard
Freedom GMWB With Joint Option") (28) 1.86%
5% for Life GMWB Maximum Annual Charge (no longer offered as of May 1, 2006)
("LifeGuard 5(R)") (29) 1.32%
4% for Life GMWB Maximum Annual Charge (no longer offered as of May 1, 2006)
("LifeGuard 4(R)") (30) 0.87%
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9
(6) This charge is waived on Contract Value of $50,000 or more. This charge is
deducted proportionally from allocations to the Fixed Account and
Investment Divisions either annually (on your Contract Anniversary) or in
conjunction with a total withdrawal, as applicable.
(7) This charge is waived on initial premiums of $1 million or more, but we
may reverse the waiver and reinstate the Administrative Charge if your
withdrawals during the first year of the Contract cause the Contract Value
to drop below $1 million.
(8) Some optional endorsements are only available to select when purchasing
the Contract and once purchased cannot be canceled. Also, you may not
select both a Guaranteed Minimum Income Benefit and any Guaranteed Minimum
Withdrawal Benefit.
(9) This charge lasts for the first seven Contract Years.
(10) This charge lasts for the first five Contract Years.
(11) The current charge is 0.25%, on an annual basis, of the average daily net
asset value of your allocations to the Investment Divisions.
(12) The LifeGuard Freedom DB is only available in conjunction with the
purchase of the LifeGuard Freedom GMWB. The current and maximum charge for
the LifeGuard Freedom DB is 0.05% of the GMWB Death Benefit each Contract
Month (0.60% annually). The charge for LifeGuard Freedom DB is in addition
to the charge for the LifeGuard Freedom GMWB.
The GMWB Death Benefit is equal to the LifeGuard Freedom GWB (see footnote
27 below). If you select the LifeGuard Freedom GMWB when you purchase your
Contract, the GWB is generally your initial premium payment, net of taxes
and adjusted for any subsequent premium payments and withdrawals. If the
LifeGuard Freedom GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals.
For more information about the charge for the LifeGuard Freedom DB, please
see "Optional Death Benefit - LifeGuard Freedom DB Charge" on page 46. For
more information about how this optional death benefit endorsement works,
please see "LifeGuard Freedom DB" under "Optional Death Benefits",
beginning on page 169. For more information about how the LifeGuard
Freedom GMWB works, please see "For Life GMWB With Bonus and Annual
Step-Up" beginning on page 127.
(13) The charge for FutureGuard is expressed as an annual percentage of the
GMIB Benefit Base. The GMIB Benefit Base for FutureGuard is the greater of
(a) or (b), where:
(a) Generally equals all premiums you have paid, subject to certain
adjustments, compounded at an annual interest rate of 5% until the
earlier of the Annuitant's 80th birthday or the exercise date of
this GMIB; and
(b) Generally equals the greatest Contract Value on any Contract
Anniversary prior to the Annuitant's 81st birthday, subject to
certain adjustments after that Contract Anniversary.
For more information about how the endorsement works, including more
details regarding the GMIB Benefit Base, please see "FutureGuard
Guaranteed Minimum Income Benefit" beginning on page 163.
For Contracts with this GMIB purchased on and after January 17, 2006
(subject to availability), you pay 0.05% of the GMIB Benefit Base each
Contract Month (0.60% annually).
For Contracts with this GMIB purchased from March 7, 2005 through January
16, 2006 (subject to availability), you pay 0.15% of the GMIB Benefit Base
each calendar quarter (0.60% annually).
We deduct the charge from your Contract Value. Quarterly charges are pro
rata deducted over each applicable Investment Division and the Fixed
Account. Monthly charges are also pro rata, but deducted over the
applicable Investment Divisions only. For more information about the
charge for this endorsement, please see "FutureGuard Guaranteed Minimum
Income Benefit Charge" beginning on page 36.
(14) The current and maximum charge is 0.075% of the GMIB Benefit Base each
Contract Month (0.90% annually). The GMIB Benefit Base for FutureGuard 6
is the greater of (a) or (b), where:
(a) Generally equals the Step-Up Value on the most recent Step-Up
Date, subject to certain adjustments after the most recent Step-Up
Date, compounded at an annual interest rate of 6% until the earlier
of the Annuitant's 80th birthday or the exercise date of this GMIB;
and
(b) Generally equals the greatest Contract Value on any Contract
Anniversary prior to the Annuitant's 81st birthday, subject to
certain adjustments after that Contract Anniversary.
At issue, the Step-Up Date is the Issue Date, and the Step-Up Value is
generally equal to the initial premium paid plus any Contract Enhancement
credited. After issue, the Step-Up Date is the Contract Anniversary on
which the Owner elects to step up to the Contract Value, and the Step-Up
Value is equal to the Contract Value on that Step-Up Date.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted based on the applicable Investment Divisions only. For more
information about the charge for this endorsement, please see "FutureGuard
6 Guaranteed Minimum Income Benefit Charge" beginning on page 36. For more
information about how the endorsement works, including more details
regarding the GMIB Benefit Base, please see "FutureGuard 6 Guaranteed
Minimum Income Benefit" beginning on page 165.
(15) 0.75% is the maximum annual charge of the Guaranteed Withdrawal Balance
(GWB) when this endorsement is added to a Contract on and after January
17, 2006, which charge is payable monthly. The GWB is the guaranteed
amount available for future periodic withdrawals. If you select a GMWB
when you purchase your Contract, the GWB is generally your initial premium
payment, net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals.
The charge is expressed as an annual percentage and depends on:
o When the endorsement is added to the Contract.
o The endorsement's availability - on and after, or before
January 17, 2006.
o The basis for deduction - a percentage of the GWB or your
allocations to Investment Divisions (average daily net asset
value).
o The frequency of deduction - monthly or daily.
10
The below tables have the maximum and current charges.
For Contracts to which this endorsement was added on and after January 17,
2006 (subject to availability), you pay the applicable percentage of the
GWB each Contract Month. We deduct the charge from your Contract Value.
Monthly charges are pro rata deducted over each applicable Investment
Division.
For Contracts to which this endorsement was added before January 17, 2006,
the charge is a percentage, on an annual basis, of the average daily net
asset value of your allocations to the Investment Divisions.
7% GMWB
Endorsement's On and after Before
Availability January 17, 2006 January 17, 2006
--------------------------------------------------------------
Maximum Annual 0.75% 0.70%
Charge
--------------------------------------------------------------
Current Annual 0.42% 0.40%
Charge
--------------------------------------------------------------
Charge Basis GWB Investment Divisions
--------------------------------------------------------------
Charge Frequency Monthly Daily
For more information about the charge for this endorsement, please see "7%
Guaranteed Minimum Withdrawal Benefit Charge" beginning on page 36. For
more information about how the endorsement works, including more details
regarding the GWB, please see "7% Guaranteed Minimum Withdrawal Benefit"
beginning on page 55.
(16) The current charge is 0.0375% (0.45% annually) of the GWB, subject to a
maximum annual charge of 0.81% as used in the Table. We reserve the right
to prospectively change the current charge: on new Contracts; if you
select this benefit after your Contract is issued; or upon election of a
step-up - subject to the applicable maximum annual charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information, including how the GWB is calculated, please see
"Guaranteed Minimum Withdrawal Benefit With 5-Year Step-Up" beginning on
page 59.
(17) The current charge is 0.055% (0.66% annually) of the GWB, subject to
maximum annual charge of 1.47% as used in the Table. We reserve the right
to prospectively change the current charge: on new Contracts; if you
select this benefit after your Contract is issued; or with a step-up that
you request (not on step-ups that are automatic) - subject to the
applicable maximum annual charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information, including how the GWB is calculated, please see "5%
Guaranteed Minimum Withdrawal Benefit With Annual Step-Up" beginning on
page 64.
(18) The current charge is 0.0725% (0.87% annually) of the GWB, subject to a
maximum annual charge of 1.62% as used in the Table. We reserve the right
to prospectively change the current charge: on new Contracts; if you
select this benefit after your Contract is issued; or with a step-up that
you request (not on step-ups that are automatic) - subject to the
applicable maximum annual charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information, including how the GWB is calculated, please see "6%
Guaranteed Minimum Withdrawal Benefit With Annual Step-Up" beginning on
page 68.
(19) The current charge is 0.0175% (0.21% annually) of the GWB, subject to a
maximum annual charge of 0.51% as used in the Table. We reserve the right
to prospectively change the current charge on new Contracts, or before you
select this benefit if after your Contract is issued, subject to the
applicable maximum annual charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information, including how the GWB is calculated, please see "5%
Guaranteed Minimum Withdrawal Benefit Without Step-Up" beginning on page
73.
11
(20) 1.47% is the maximum annual charge of the 5% for Life GMWB With Annual
Step-Up for a 65-69 year old, which charge is payable monthly. The charge
for the 5% for Life GMWB With Annual Step-Up varies by age group. The
below tables have the maximum and current charges for all age groups.
You pay the applicable percentage of the GWB each month. The GWB is the
guaranteed amount available for future periodic withdrawals. If you select
a GMWB when you purchase your Contract, the GWB is generally your initial
premium payment, net of taxes and adjusted for any subsequent premium
payments and withdrawals. If the GMWB is elected after the issue date, the
GWB is generally 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, adjusted for any subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted based on the applicable Investment Divisions only.
5% for Life GMWB With Annual Step-Up
--------------------------------------------------------
Annual Charge Maximum Current
--------------------------------------------------------
Ages 45 - 49 0.87%/12 0.42%/12
50 - 54 0.87%/12 0.42%/12
55 - 59 1.20%/12 0.66%/12
60 - 64 1.32%/12 0.75%/12
65 - 69 1.47%/12 0.90%/12
70 - 74 0.87%/12 0.51%/12
75 - 80 0.60%/12 0.36%/12
--------------------------------------------------------
Charge Basis GWB
--------------------------------------------------------
Charge Frequency Monthly
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. We may also change the
current charge when you elect a step-up (not on step-ups that are
automatic), again subject to the applicable maximum annual charge.
For more information about the charge for this endorsement, please see "5%
for Life GMWB With Annual Step-Up Charge" beginning on page 39. For more
information about how the endorsement works, please see "5% for Life GMWB
With Annual Step-Up" beginning on page 77.
(21) 1.50% is the maximum annual charge of the 5% for Life GMWB With Bonus and
Annual Step-Up for the following age groups: 55-59, 60-64, and 65-69,
which charge is payable monthly. The charge for the 5% for Life GMWB With
Annual Step-Up varies by age group. The below tables have the maximum and
current charges for all age groups.
You pay the applicable percentage of the GWB each month. The GWB is the
guaranteed amount available for future periodic withdrawals. If you select
a GMWB when you purchase your Contract, the GWB is generally your initial
premium payment, net of taxes and adjusted for any subsequent premium
payments and withdrawals. If the GMWB is elected after the issue date, the
GWB is generally 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, adjusted for any subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted based on the applicable Investment Divisions only.
5% for Life GMWB With Bonus and Annual Step-Up
--------------------------------------------------------
Annual Charge Maximum Current
--------------------------------------------------------
Ages 45 - 49 1.02%/12 0.57%/12
50 - 54 1.17%/12 0.72%/12
55 - 59 1.50%/12 0.96%/12
60 - 64 1.50%/12 0.96%/12
65 - 69 1.50%/12 0.96%/12
70 - 74 0.90%/12 0.57%/12
75 - 80 0.66%/12 0.42%/12
--------------------------------------------------------
Charge Basis GWB
--------------------------------------------------------
Charge Frequency Monthly
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. We may also change the
current charge when you elect a step-up (not on step-ups that are
automatic), again subject to the applicable maximum annual charge.
For more information about the charge for this endorsement, please see "5%
for Life GMWB With Bonus and Annual Step-Up Charge" beginning on page 39.
For more information about how the endorsement works, please see "5% for
Life GMWB With Bonus and Annual Step-Up" beginning on page 83.
(22) 1.47% is the maximum annual charge of the 5% for Life GMWB With Bonus and
Five-Year Step-Up for the following age groups: 55-59 and 60-64, which
charge is payable monthly. The charge for the 5% for Life GMWB With Bonus
and Five-Year Step-Up varies by age group. The below tables have the
maximum and current charges for all age groups.
You pay the applicable percentage of the GWB each month. The GWB is the
guaranteed amount available for future periodic withdrawals. If you select
a GMWB when you purchase your Contract, the GWB is generally your initial
premium payment, net of taxes and adjusted for any subsequent premium
payments and withdrawals. If the GMWB is elected after the issue date, the
GWB is generally 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, adjusted for any subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted based on the applicable Investment Divisions only.
5% for Life GMWB With Bonus and Five-Year Step-Up
--------------------------------------------------------
Annual Charge Maximum Current
--------------------------------------------------------
Ages 45 - 49 0.87%/12 0.42%/12
50 - 54 1.02%/12 0.57%/12
55 - 59 1.47%/12 0.87%/12
60 - 64 1.47%/12 0.87%/12
65 - 69 1.20%/12 0.66%/12
70 - 74 0.75%/12 0.36%/12
75 - 80 0.57%/12 0.30%/12
--------------------------------------------------------
Charge Basis GWB
--------------------------------------------------------
Charge Frequency Monthly
12
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. We may also change the
current charge when you elect a step-up, again subject to the applicable
maximum annual charge.
For more information about the charge for this endorsement, please see "5%
for Life GMWB With Bonus and Five-Year Step-Up Charge" beginning on page
40. For more information about how the endorsement works, please see "5%
for Life GMWB With Bonus and Five-Year Step-Up" beginning on page 90.
(23) 1.62% is the maximum annual charge of the Joint 5% for Life GMWB With
Annual Step-Up for a 65-69 year old, which charge is payable monthly. The
charge for the Joint 5% for Life GMWB With Annual Step-Up varies by age
group. The below tables have the maximum and current charges for all age
groups.
You pay the applicable percentage of the GWB each month. The GWB is the
guaranteed amount available for future periodic withdrawals. If you select
a GMWB when you purchase your Contract, the GWB is generally your initial
premium payment, net of taxes and adjusted for any subsequent premium
payments and withdrawals. If the GMWB is elected after the issue date, the
GWB is generally 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, adjusted for any subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted based on the applicable Investment Divisions only.
Joint 5% for Life GMWB With Annual Step-Up
--------------------------------------------------
Annual Charge Maximum Current
--------------------------------------------------
Ages 45 - 49 1.02%/12 0.57%/12
50 - 54 1.02%/12 0.57%/12
55 - 59 1.35%/12 0.81%/12
60 - 64 1.47%/12 0.90%/12
65 - 69 1.62%/12 1.05%/12
70 - 74 1.02%/12 0.66%/12
75 - 80 0.75%/12 0.51%/12
--------------------------------------------------
Charge Basis GWB
--------------------------------------------------
Charge Frequency Monthly
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. We may also change the
current charge when you elect a step-up (not on step-ups that are
automatic), again subject to the applicable maximum annual charge.
For more information about the charge for this endorsement, please see
"Joint 5% for Life GMWB With Annual Step-Up Charge" beginning on page 41.
For more information about how the endorsement works, please see "Joint 5%
for Life GMWB With Annual Step-Up" beginning on page 97.
(24) 1.71% is the maximum annual charge of the Joint 5% for Life GMWB With
Bonus and Five-Year Step-Up for the following age groups: 55-59 and 60-64,
which charge is payable monthly. The charge for the Joint 5% for Life GMWB
With Bonus and Five-Year Step-Up varies by age group. The below tables
have the maximum and current charges for all age groups.
You pay the applicable percentage of the GWB each month. The GWB is the
guaranteed amount available for future periodic withdrawals. If you select
a GMWB when you purchase your Contract, the GWB is generally your initial
premium payment, net of taxes and adjusted for any subsequent premium
payments and withdrawals. If the GMWB is elected after the issue date, the
GWB is generally 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, adjusted for any subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted based on the applicable Investment Divisions only.
Joint 5% for Life GMWB With Bonus and Five-Year Step-Up
--------------------------------------------------------
Annual Charge Maximum Current
--------------------------------------------------------
Ages 45 - 49 1.11%/12 0.66%/12
50 - 54 1.26%/12 0.81%/12
55 - 59 1.71%/12 1.11%/12
60 - 64 1.71%/12 1.11%/12
65 - 69 1.47%/12 0.90%/12
70 - 74 1.02%/12 0.60%/12
75 - 80 0.81%/12 0.57%/12
--------------------------------------------------------
Charge Basis GWB
--------------------------------------------------------
Charge Frequency Monthly
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. We may also change the
current charge when you elect a step-up, again subject to the applicable
maximum annual charge.
For more information about the charge for this endorsement, please see
"Joint 5% for Life GMWB With Bonus and Five-Year Step-Up Charge" beginning
on page 42. For more information about how the endorsement works, please
see "Joint 5% for Life GMWB With Bonus and Five-Year Step-Up" beginning on
page 103.
(25) The current charge is 0.08% (0.96% annually) of the GWB, subject to a
maximum annual charge of 1.50% as used in the Table. We reserve the right
to prospectively change the current charge on new Contracts, or if you
select this benefit after your Contract is issued, subject to the
applicable maximum annual charge. We may also change the current charge
when you elect a step-up (not on step-ups that are automatic), again
subject to the applicable maximum annual charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally your Contract Value less
13
any recapture charges that would be paid were you to make a full
withdrawal on the date the endorsement is added, adjusted for any
subsequent premium payments and withdrawals. For more information about
the charge for this endorsement, please see "For Life GMWB With Annual
Step-Up Charge" beginning on page 42. For more information about how the
endorsement works, please see "For Life GMWB With Annual Step-Up"
beginning on page 111.
(26) The current charge is 0.0975% (1.17% annually) of the GWB, subject to a
maximum annual charge of 1.71% as used in the Table. We reserve the right
to prospectively change the current charge on new Contracts, or if you
select this benefit after your Contract is issued, subject to the
applicable maximum annual charge. We may also change the current charge
when you elect a step-up (not on step-ups that are automatic), again
subject to the applicable maximum annual charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information about the charge for this endorsement, please see "Joint
For Life GMWB With Annual Step-Up Charge" beginning on page 43. For more
information about how the endorsement works, please see "Joint For Life
GMWB With Annual Step-Up" beginning on page 119.
(27) The current charge is 0.08% (0.96% annually) of the GWB, subject to a
maximum annual charge of 1.50% as used in the Table. We reserve the right
to prospectively change the current charge on new Contracts, or if you
select this benefit after your Contract is issued, subject to the
applicable maximum annual charge. We may also change the current charge
when there is a step-up on or after the fifth Contract Anniversary
(eleventh Contract Anniversary if this endorsement is added to the
Contract before January 12, 2009), again subject to the maximum annual
charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information about the charge for this endorsement, please see "For
Life GMWB With Bonus and Annual Step-Up Charge" beginning on page 43. For
more information about how the endorsement works, please see "For Life
GMWB With Bonus and Annual Step-Up" beginning on page 127.
(28) The current charge is 0.105% (1.26% annually) of the GWB, subject to a
maximum annual charge of 1.86% as used in the Table. We reserve the right
to prospectively change the current charge on new Contracts, or if you
select this benefit after your Contract is issued, subject to the
applicable maximum annual charge. We may also change the current charge
when there is a step-up on or after the fifth Contract Anniversary
(eleventh Contract Anniversary if this endorsement is added to the
Contract before January 12, 2009), again subject to the maximum annual
charge.
The charge is deducted at the end of each Contract Month, or upon
termination of the endorsement, from the Investment Divisions to which
your Contract Value is allocated on a pro rata basis. We deduct the charge
from the Investment Divisions by canceling Accumulation Units; the charge
is not part of the Accumulation Unit calculation.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The GWB is the guaranteed amount
available for future periodic withdrawals. If you select a GMWB when you
purchase your Contract, the GWB is generally your initial premium payment,
net of taxes and adjusted for any subsequent premium payments and
withdrawals. If the GMWB is elected after the issue date, the GWB is
generally 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, adjusted for any subsequent premium payments and withdrawals. For
more information about the charge for this endorsement, please see "Joint
Life GMWB With Bonus and Annual Step-Up Charge" beginning on page 44. For
more information about how the endorsement works, please see "Joint For
Life GMWB With Bonus and Annual Step-Up" beginning on page 137.
(29) 1.32% is the maximum annual charge of the Guaranteed Withdrawal Balance
(GWB) for a 60-64 year old Owner of a Contract to which this endorsement
is added on and after January 17, 2006 through April 30, 2006, which
charge is payable monthly. The charge for the 5% for Life GMWB varies by
age group. The below tables have the maximum and current charges for all
age groups.
Charges are expressed as an annual percentage and depend on:
o The Owner's age when the endorsement is added to the Contract.
o The endorsement's availability - effective May 1, 2006, this
endorsement is no longer available to add to a Contract.
o The basis for deduction - a percentage of the GWB or your
allocations to Investment Divisions (average daily net asset
value).
o The frequency of deduction - monthly or daily.
For Contracts to which this endorsement was added before May 1, 2006
(subject to availability), you pay the applicable percentage of the GWB
each Contract Month. The GWB is the guaranteed amount available for future
periodic withdrawals. If you select a GMWB when you purchase your
Contract, the GWB is generally your initial premium payment, net of taxes
and adjusted for any subsequent premium payments and withdrawals. If the
GMWB is elected after the issue date, the GWB is generally 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, adjusted for any
subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted over each applicable Investment Division.
For Contracts to which this endorsement was added before January 17, 2006,
the charge is the applicable percentage, on an annual basis, of the
average daily net asset value of your allocations to the Investment
Divisions.
5% For Life GMWB
Endorsement's Before May 1, 2006 Before
Availability January 17, 2006*
-------------------------------------------------------------
Annual Charge Maximum Current Maximum Current
-------------------------------------------------------------
Ages 60 - 64 1.32%/12 0.90%/12 1.30% 0.90%
65 - 69 0.87%/12 0.60%/12 0.85% 0.60%
70 - 74 0.60%/12 0.51%/12 0.60% 0.50%
75 - 80 0.51%/12 0.42%/12 0.50% 0.40%
Charge Basis GWB Investment Divisions
-------------------------------------------------------------
Charge Frequency Monthly Daily
-------------------------------------------------------------
14
* The bonus is available only for Contracts to which this GMWB was
added from January 17, 2006 through April 30, 2006.
With joint Owners, the charge is based on the older Owner's age. For the
Owner that is a legal entity, the charge is based on the Annuitant's age.
(With joint Annuitants, the charge is based on the older Annuitant's age.)
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. For Contracts to which
this endorsement was added from January 17, 2006 through April 30, 2006,
we may also change the current charge with a step-up, again subject to the
applicable maximum annual charge.
For more information about the charge for this endorsement, please see "5%
For Life Guaranteed Minimum Withdrawal Benefit Charge" beginning on page
44. For more information about how the endorsement works, please see "5%
For Life Guaranteed Minimum Withdrawal Benefit" beginning on page 148.
(30) 0.87% is the maximum annual charge of the Guaranteed Withdrawal Balance
(GWB) for a 50-54 year old Owner of a Contract to which this endorsement
is added on and after January 17, 2006 through April 30, 2006, which
charge is payable monthly. The charge for the 4% for Life GMWB varies by
age group. The below tables have the maximum and current charges for all
age groups.
o The Owner's age when the endorsement is added to the Contract.
o The endorsement's availability - effective May 1, 2006, this
endorsement is no longer available to add to a Contract.
o The basis for deduction - a percentage of the GWB or your
allocations to Investment Divisions (average daily net asset
value).
o The frequency of deduction - monthly or daily.
For Contracts to which this endorsement was added before May 1, 2006
(subject to availability), you pay the applicable percentage of the GWB
each Contract Month. The GWB is the guaranteed amount available for future
periodic withdrawals. If you select a GMWB when you purchase your
Contract, the GWB is generally your initial premium payment, net of taxes
and adjusted for any subsequent premium payments and withdrawals. If the
GMWB is elected after the issue date, the GWB is generally 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, adjusted for any
subsequent premium payments and withdrawals.
We deduct the charge from your Contract Value. Monthly charges are pro
rata deducted over each applicable Investment Division.
For Contracts to which this endorsement was added before January 17, 2006,
the charge is the applicable percentage, on an annual basis, of the
average daily net asset value of your allocations to the Investment
Divisions.
Endorsement's 4% For Life GMWB Before
Availability Before May 1, 2006 January 17, 2006*
-------------------------------------------------------------
Annual Charge Maximum Current Maximum Current
-------------------------------------------------------------
Ages 50 - 54 0.87%/12 0.66%/12 0.85% 0.65%
55 - 59 0.66%/12 0.51%/12 0.65% 0.50%
60 - 64 0.51%/12 0.36%/12 0.50% 0.35%
65 - 69 0.36%/12 0.27%/12 0.35% 0.25%
70 - 74 0.30%/12 0.21%/12 0.30% 0.20%
75 - 80 0.21%/12 0.15%/12 0.20% 0.15%
-------------------------------------------------------------
Charge Basis GWB Investment Divisions
-------------------------------------------------------------
Charge Frequency Monthly Daily
* The bonus is available only for Contracts to which this GMWB was
added from January 17, 2006 through April 30, 2006.
With joint Owners, the charge is based on the older Owner's age. For the
Owner that is a legal entity, the charge is based on the Annuitant's age.
(With joint Annuitants, the charge is based on the older Annuitant's age.)
We reserve the right to prospectively change the current charge on new
Contracts, or if you select this benefit after your Contract is issued,
subject to the applicable maximum annual charge. For Contracts to which
this endorsement was added from January 17, 2006 through April 30, 2006,
we may also change the current charge with a step-up, again subject to the
applicable maximum annual charge.
For more information about the charge for this endorsement, please see "4%
For Life Guaranteed Minimum Withdrawal Benefit Charge" beginning on page
45. For more information about how the endorsement works, please see "4%
For Life Guaranteed Minimum Withdrawal Benefit" beginning on page 155.
The next item shows the minimum and maximum total annual operating expenses
charged by the Funds that you may pay periodically during the time that you own
the Contract.
Total Annual Fund Operating Expenses
--------------------------------------
(Expenses that are deducted from Fund assets, including management and
administration fees, 12b-1 service fees and other expenses.)
------------------------
Minimum: 0.57%
Maximum: 2.63%
------------------------
More detail concerning each Fund's fees and expenses is below. But please refer
to the Funds' prospectuses for even more information on the Funds, including
investment objectives, performance, and information about Jackson National Asset
Management, LLC(R), the Funds' Adviser and Administrator, as well as the
sub-advisers.
15
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Fund Operating Expenses
(As an annual percentage of the Fund's average
daily net assets) MANAGEMENT SERVICE ACQUIRED ANNUAL
AND ADMIN (12B-1) OTHER FUND FEES OPERATING
FUND NAME FEE(A) FEE EXPENSES(B) AND EXPENSES(C) EXPENSES
-----------------------------------------------------------------------------------------------------------------------------------
JNL Institutional Alt 20 0.20% 0.00% 0.01% 0.80%(E) 1.01%
JNL Institutional Alt 35 0.20% 0.00% 0.01% 0.94%(E) 1.15%
JNL Institutional Alt 50 0.20% 0.00% 0.01% 1.10%(E) 1.31%
JNL Institutional Alt 65 0.20% 0.00% 0.01% 1.28%(E) 1.49%
JNL/AIM Global Real Estate 0.86%(F) 0.20% 0.01% 0.01% 1.08%
JNL/AIM International Growth 0.82% 0.20% 0.01% 0.04% 1.07%
JNL/AIM Large Cap Growth 0.77% 0.20% 0.00% 0.01% 0.98%
JNL/AIM Small Cap Growth 0.95% 0.20% 0.01% 0.01% 1.17%
JNL/Capital Guardian Global Balanced 0.80% 0.20% 0.01% 0.01% 1.02%
JNL/Capital Guardian Global Diversified Research 0.88% 0.20% 0.01% 0.01% 1.10%
JNL/Capital Guardian International Small Cap 1.10% 0.20% 0.01% 0.03% 1.34%
JNL/Capital Guardian U.S. Growth Equity 0.78% 0.20% 0.01% 0.01% 1.00%
JNL/Credit Suisse Global Natural Resources 0.83% 0.20% 0.01% 0.01% 1.05%
JNL/Credit Suisse Long/Short 0.95%(F) 0.20% 0.41%(D) 0.01% 1.57%
JNL/Eagle Core Equity 0.75% 0.20% 0.01% 0.01% 0.97%
JNL/Eagle SmallCap Equity 0.82% 0.20% 0.01% 0.01% 1.04%
JNL/Franklin Templeton Founding Strategy 0.05% 0.00% 0.01% 1.07%(E) 1.13%
JNL/Franklin Templeton Global Growth 0.90% 0.20% 0.01% 0.01% 1.12%
JNL/Franklin Templeton Income 0.79% 0.20% 0.01% 0.01% 1.01%
JNL/Franklin Templeton Mutual Shares 0.85% 0.20% 0.03%(D) 0.01% 1.09%
JNL/Franklin Templeton Small Cap Value 0.95% 0.20% 0.01% 0.01% 1.17%
JNL/Goldman Sachs Core Plus Bond 0.69% 0.20% 0.01% 0.01% 0.91%
JNL/Goldman Sachs Emerging Markets Debt 0.90% 0.20% 0.01% 0.07% 1.18%
JNL/Goldman Sachs Mid Cap Value 0.83% 0.20% 0.01% 0.01% 1.05%
JNL/Goldman Sachs Short Duration Bond 0.54% 0.20% 0.00% 0.02% 0.76%
JNL/JPMorgan International Value 0.81% 0.20% 0.00% 0.00% 1.01%
JNL/JPMorgan MidCap Growth 0.80% 0.20% 0.02% 0.01% 1.03%
JNL/JPMorgan U.S. Government & Quality Bond 0.55% 0.20% 0.01% 0.02% 0.78%
JNL/Lazard Emerging Markets 1.06% 0.20% 0.02% 0.01% 1.29%
JNL/Lazard Mid Cap Equity 0.82% 0.20% 0.00% 0.01% 1.03%
JNL/M&G Global Basics 1.00% 0.20% 0.04% 0.03% 1.27%
JNL/M&G Global Leaders 1.00% 0.20% 0.03% 0.03% 1.26%
JNL/Mellon Capital Management European 30 0.57% 0.20% 0.07% 0.02% 0.86%
JNL/Mellon Capital Management Pacific Rim 30 0.57% 0.20% 0.05% 0.02% 0.84%
JNL/Mellon Capital Management S&P 500 Index 0.38% 0.20% 0.02% 0.01% 0.61%
JNL/Mellon Capital Management S&P 400 MidCap Index 0.39% 0.20% 0.02% 0.00% 0.61%
JNL/Mellon Capital Management Small Cap Index 0.39% 0.20% 0.02% 0.00% 0.61%
JNL/Mellon Capital Management International Index 0.44% 0.20% 0.01% 0.00% 0.65%
JNL/Mellon Capital Management Bond Index 0.40% 0.20% 0.01% 0.00% 0.61%
JNL/Mellon Capital Management Index 5 0.05% 0.00% 0.01% 0.62%(E) 0.68%
JNL/Mellon Capital Management 10 x 10 0.05% 0.00% 0.01% 0.63%(E) 0.69%
JNL/Oppenheimer Global Growth 0.84% 0.20% 0.02% 0.00% 1.06%
JNL/PAM Asia ex-Japan 1.05%(F) 0.20% 0.01% 0.05% 1.31%
JNL/PAM China-India 1.10%(F) 0.20% 0.08% 0.08% 1.46%
JNL/PIMCO Real Return 0.60% 0.20% 0.01% 0.00% 0.81%
JNL/PIMCO Total Return Bond 0.60% 0.20% 0.01% 0.00% 0.81%
JNL/PPM America Core Equity 0.75% 0.20% 0.01% 0.00% 0.96%
JNL/PPM America High Yield Bond 0.58% 0.20% 0.01% 0.03% 0.82%
JNL/PPM America Mid Cap Value 0.85% 0.20% 0.01% 0.02% 1.08%
JNL/PPM America Small Cap Value 0.85% 0.20% 0.01% 0.02% 1.08%
JNL/PPM America Value Equity 0.65% 0.20% 0.01% 0.00% 0.86%
JNL/Red Rocks Listed Private Equity 1.00% 0.20% 0.02% 1.41% 2.63%
JNL/Select Balanced 0.57% 0.20% 0.01% 0.01% 0.79%
JNL/Select Money Market 0.36% 0.20% 0.01% 0.00% 0.57%
JNL/Select Value 0.63% 0.20% 0.00% 0.01% 0.84%
JNL/T. Rowe Price Established Growth 0.69% 0.20% 0.01% 0.01% 0.91%
JNL/T. Rowe Price Mid-Cap Growth 0.81% 0.20% 0.01% 0.02% 1.04%
JNL/T. Rowe Price Value 0.75% 0.20% 0.01% 0.01% 0.97%
JNL/S&P Managed Conservative 0.18% 0.00% 0.01% 0.85%(E) 1.04%
JNL/S&P Managed Moderate 0.17% 0.00% 0.01% 0.88%(E) 1.06%
JNL/S&P Managed Moderate Growth 0.15% 0.00% 0.01% 0.93%(E) 1.09%
16
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Fund Operating Expenses
(As an annual percentage of the Fund's average
daily net assets) MANAGEMENT SERVICE ACQUIRED ANNUAL
AND ADMIN (12B-1) OTHER FUND FEES OPERATING
FUND NAME FEE(A) FEE EXPENSES(B) AND EXPENSES(C) EXPENSES
-----------------------------------------------------------------------------------------------------------------------------------
JNL/S&P Managed Growth 0.15% 0.00% 0.01% 0.97%(E) 1.13%
JNL/S&P Managed Aggressive Growth 0.17% 0.00% 0.01% 0.98%(E) 1.16%
JNL/S&P Retirement Income 0.18% 0.00% 0.01% 0.88%(E) 1.07%
JNL/S&P Retirement 2015 0.18% 0.00% 0.01% 0.93%(E) 1.12%
JNL/S&P Retirement 2020 0.18% 0.00% 0.01% 0.95%(E) 1.14%
JNL/S&P Retirement 2025 0.18% 0.00% 0.01% 0.97%(E) 1.16%
JNL/S&P Disciplined Moderate 0.18% 0.00% 0.01% 0.66%(E) 0.85%
JNL/S&P Disciplined Moderate Growth 0.18% 0.00% 0.01% 0.66%(E) 0.85%
JNL/S&P Disciplined Growth 0.18% 0.00% 0.01% 0.65%(E) 0.84%
JNL/S&P Competitive Advantage 0.50% 0.20% 0.01% 0.00% 0.71%
JNL/S&P Dividend Income & Growth 0.50% 0.20% 0.01% 0.00% 0.71%
JNL/S&P Intrinsic Value 0.50% 0.20% 0.01% 0.00% 0.71%
JNL/S&P Total Yield 0.50% 0.20% 0.01% 0.01% 0.72%
JNL/S&P 4 0.05% 0.00% 0.01% 0.72%(E) 0.78%
JNL/Mellon Capital Management Nasdaq(R) 25 0.48%(F) 0.20% 0.05% 0.00% 0.73%
JNL/Mellon Capital Management Value Line(R) 30 0.43% 0.20% 0.16% 0.00% 0.79%
JNL/Mellon Capital Management Dow(SM) Dividend 0.44%(F) 0.20% 0.03% 0.00% 0.67%
JNL/Mellon Capital Management S&P(R) 24 0.49%(F) 0.20% 0.02% 0.00% 0.71%
JNL/Mellon Capital Management 25 0.44% 0.20% 0.01% 0.00% 0.65%
JNL/Mellon Capital Management Select Small-Cap 0.44% 0.20% 0.01% 0.00% 0.65%
JNL/Mellon Capital Management JNL 5 0.42% 0.20% 0.02% 0.00% 0.64%
JNL/Mellon Capital Management VIP 0.44%(F) 0.20% 0.04% 0.00% 0.68%
JNL/Mellon Capital Management JNL Optimized 5 0.44% 0.20% 0.06% 0.00% 0.70%
JNL/Mellon Capital Management S&P(R) SMid 60 0.49%(F) 0.20% 0.01% 0.01% 0.71%
JNL/Mellon Capital Management NYSE(R) International 25 0.53%(F) 0.20% 0.05% 0.00% 0.78%
JNL/Mellon Capital Management Communications Sector 0.49%(F) 0.20% 0.04% 0.00% 0.73%
JNL/Mellon Capital Management Consumer Brands Sector 0.49%(F) 0.20% 0.03% 0.00% 0.72%
JNL/Mellon Capital Management Financial Sector 0.48%(F) 0.20% 0.03% 0.00% 0.71%
JNL/Mellon Capital Management Healthcare Sector 0.46%(F) 0.20% 0.03% 0.00% 0.69%
JNL/Mellon Capital Management Oil & Gas Sector 0.44% 0.20% 0.03% 0.00% 0.67%
JNL/Mellon Capital Management Technology Sector 0.48%(F) 0.20% 0.03% 0.00% 0.71%
(A) Certain Funds pay Jackson National Asset Management, LLC, the
Administrator, an administrative fee for certain services provided to the
Fund by the Administrator.
The JNL/AIM Global Real Estate Fund, JNL/AIM International Growth Fund,
JNL/Capital Guardian International Small Cap Fund, JNL/Capital Guardian
Global Diversified Research Fund, JNL/Capital Guardian Global Balanced
Fund, JNL/Credit Suisse Global Natural Resources Fund, JNL/Credit Suisse
Long/Short Fund, JNL/Franklin Templeton Global Growth Fund, JNL/Goldman
Sachs Emerging Markets Debt Fund, JNL/JPMorgan International Value Fund,
JNL/Lazard Emerging Markets Fund, JNL/M&G Global Basics Fund, JNL/M&G
Global Leaders Fund, JNL/Oppenheimer Global Growth Fund, JNL/PAM Asia
Ex-Japan Fund, JNL/Red Rocks Listed Private 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 Index 5 Fund, JNL/Mellon Capital Management 10 x 10 Fund,
JNL/Mellon Capital Management NYSE(R) International 25 Fund, JNL/Mellon
Capital Management European 30 Fund, and JNL/Mellon Capital Management
Pacific Rim 30 Fund pay an administrative fee of 0.15%.
The JNL/Mellon Capital Management NYSE(R) International 25 Fund,
JNL/Mellon Capital Management European 30 Fund, JNL/Mellon Capital
Management Pacific Rim 30 Fund, and JNL/PAM China-India Fund pay an
administrative fee of 0.20%.
The JNL Institutional Alt 20 Fund, JNL Institutional Alt 35 Fund, JNL
Institutional Alt 50 Fund, JNL Institutional Alt 65 Fund, JNL/Franklin
Templeton Founding Strategy Fund, JNL/Mellon Capital Management Index 5
Fund, JNL/Mellon Capital Management 10 x 10 Fund, and all of the JNL/S&P
Funds except the JNL/S&P Competitive Advantage Fund, JNL/S&P Dividend
Income & Growth Fund, JNL/S&P Intrinsic Value Fund, and JNL/S&P Total
Yield Fund pay an administrative fee of 0.05%.
All other Funds pay an administrative fee of 0.10%.
The Management and Administrative Fee and the Annual Operating Expenses
columns in this table reflect the inclusion of the applicable
administrative fee.
(B) Other expenses include registration fees, licensing costs, a portion of
the Chief Compliance Officer costs, directors and officers insurance,
certain professional fees, and the fees and expenses of the disinterested
Trustees/Managers and of independent legal counsel to the disinterested
Trustees/Managers.
(C) Acquired fund fees and expenses shown represent each Fund's pro rata share
of fees and expenses of investing in mutual funds, including money market
funds used for purposes of investing available cash balances.
(D) Amount includes the costs associated with the Fund's short sales on equity
securities. When a cash dividend is declared on a security for which the
Fund holds a short position, the Fund incurs the obligation to pay an
amount equal to that dividend to the lender of the security sold short. In
addition, the Fund incurs fees in connection with the borrowing of
securities related to short sale transactions. For the period ended
December 31, 2008, total cost of short sales transactions to the
JNL/Credit Suisse Long/Short Fund, and JNL/Franklin Templeton Mutual
Shares Fund was 0.40% and 0.01%, respectively.
17
(E) Amounts are based on the allocations to underlying funds during the period
ended December 31,2008. Current allocations may be different, and
therefore, actual amounts for subsequent periods may be higher or lower
than those shown above.
(F) The management/administrative fee reflects a contract amendment.
EXAMPLE
The example below is intended to help you compare the cost of investing in the
Contract with the cost of investing in other variable annuity contracts. These
costs include Contract owner transaction expenses, Contract fees, Separate
Account annual expenses and Fund fees and expenses.
(The Annual Contract Maintenance Charge 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 example assumes that you invest $10,000 in the Contract for the time periods
indicated. Neither transfer fees nor premium tax charges are reflected in the
example. The example also assumes that your investment has a 5% annual return on
assets each year.
The following example includes maximum Fund fees and expenses and the cost if
you select the optional Highest Anniversary Death Benefit, the most expensive
Contract Enhancement Endorsement, and the Guaranteed Minimum Withdrawal Benefit
(using the maximum possible charge). Although your actual costs may be higher or
lower, based on these assumptions, your costs would be:
If you surrender your Contract at the end of the applicable time period:
1 year 3 years 5 years 10 years
$1,732 $2,849 $3,707 $6,528
If you annuitize at the end of the applicable time period (no additional fees
upon annuitization):
1 year * 3 years 5 years 10 years
* Withdrawal charges apply to income payments occurring within one year of the
Contract's Issue Date.
If you do not surrender your Contract:
1 year 3 years 5 years 10 years
$732 $2,149 $3,507 $6,528
The example does not represent past or future expenses. Your actual costs may be
higher or lower.
Condensed Financial Information. The information about the values of all
Accumulation Units constitute the condensed financial information, which can be
found in the Statement of Additional 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 for the base Contract and the
various combinations of optional endorsements. The financial statements of the
Separate Account and Jackson of NY can be found in the Statement of Additional
Information. The financial statements of the Separate Account include
information about all the contracts offered through the Separate Account. The
financial statements of Jackson of NY that are included should be considered
only as bearing upon the company's ability to meet its contractual obligations
under the Contracts. Jackson of NY's financial statements do not bear on the
future investment experience of the assets held in the Separate Account. For
your copy of the Statement of Additional Information, please contact us at the
Annuity Service Center. Our contact information is on the cover page of this
prospectus.
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 will not issue a Contract to someone older than age 90.
Optional benefits may have different requirements, as noted.
You may allocate your Contract Value to
o our Fixed Account, as may be made available by us, or as may
be otherwise limited
18
by us; or to
o Investment Divisions of the Separate Account that invest in
underlying funds.
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. You can
assign your Contract at any time during your lifetime, but we will not be bound
until we receive written notice of the assignment (there is an assignment form).
We reserve the right to refuse an assignment, and an assignment may be a taxable
event. Your ability to change ownership is limited on Contracts with one of the
For Life GMWBs. Please contact the Annuity Service Center for help and more
information.
The Contract is a flexible premium fixed and variable deferred annuity and may
be issued as either an individual or a group contract. This prospectus provides
a description of the material rights and obligations under the Contract. Your
Contract and any endorsements are the formal contractual agreement between you
and the Company.
JACKSON 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 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 of NY is working to provide documentation electronically. When this
program is available, Jackson of NY will, as permitted, forward documentation
electronically. Please contact us at our Annuity Service Center for more
information.
THE FIXED ACCOUNT
Contract Value that you allocate to a Fixed Account option 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. Both the availability of the
Fixed Account options, and transfers into and out of the Fixed Account, may be
subject to contractual and administrative requirements. For more information,
please see the application, check with the registered representative helping you
to purchase the Contract, or contact us at our Annuity Service Center.
Each Fixed Account option offers a base interest rate that we established and
will credit to your Contract Value in the Fixed Account for a specified period
(currently, one, three, five or seven years), so long as the Contract Value is
not withdrawn, transferred, or annuitized until the end of the specified period.
Currently, the Fixed Account minimum interest rate is 2% per annum, which is
credited daily. For Contracts issued from January 1, 2006 through April 5, 2009,
the guaranteed minimum interest rate is 3% per annum, which is credited daily.
For Contracts issued before January 1, 2006, the guaranteed minimum interest
rate is 2.25% per annum, which is credited daily. Subject to these minimum
requirements, we may declare different base interest rates at different times.
An Interest Rate Adjustment may apply to amounts withdrawn, transferred or
annuitized from a Fixed Account Option prior to the end of the specified period.
The Interest Rate Adjustment reflects changes in the level of interest rates
since the beginning of the Fixed Account Option period. The Interest Rate
Adjustment is based on the relationship of the current new business interest
rate to the guaranteed base interest rate being credited to the Fixed Account
Option. The current new business interest rate used for this comparison is the
base interest rate available on a new Fixed Account Option with a duration equal
to the number of years remaining in the current Fixed Account Option period,
increased by 0.25%. Generally, the Interest Rate Adjustment will increase the
Fixed Account Option Value when current new business rates are lower than the
rate being credited and will decrease the Fixed Account Option Value when
current new business rates are higher than the rate being credited.
There will be no Interest Rate Adjustment when the current new business interest
rate (after adjustment for the 0.25% bias) is greater than the guaranteed base
interest rate by less than 0.25%. This restriction avoids decreases in the Fixed
Account Option Value in
19
situations where the general level of interest rates has declined but the bias
results in a current new business interest rate that is higher than the
guaranteed base interest rate.
Also, there is no Interest Rate Adjustment on: the one-year Fixed Account
option; death benefit proceed payments; payments pursuant to a life contingent
income option or an income option resulting in payments spread over at least
five years; amounts withdrawn for Contract charges; and free withdrawals. In no
event will the Interest Rate Adjustment reduce the credited interest below the
guaranteed minimum interest rate applicable to your Contract, which cannot be
less than the guaranteed minimum interest rate required under state insurance
laws.
Whenever a specified period ends, you will have 30 days to transfer or withdraw
the Contract Value in the Fixed Account option, and there will not be an
Interest Rate Adjustment. If you do nothing, then after 30 days, the Contract
Value that remains in that Fixed Account option will be subject to another
specified period of the same duration, subject to availability, and provided
that that specified period will not extend beyond the Income Date. Otherwise, we
will allocate the Contract Value based on your Investment Division allocation
instructions. If any Contract Enhancement is selected, allocations to the
three-, five- and seven-year Fixed Account are prohibited until the end of the
applicable recapture charge period. Your Contract contains a more complete
description of the Fixed Account options, as supplemented by our administrative
requirements relating to transfers.
You may allocate premiums to the one-year Fixed Account option, but we may
require that the amount in the one-year Fixed Account (including any Contract
Enhancement) be automatically transferred on a monthly basis in equal
installments to your choice of Investment Division within 12 months of the date
we received the premium, so that at the end of the period, all amounts in the
one-year Fixed Account will have been transferred. The amount will be determined
based on the amount allocated to the one-year Fixed Account and the base
interest rate. Charges, withdrawals and additional transfers taken from the
one-year Fixed Account will shorten the length of time it takes to deplete the
account balance. These 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 one-year Fixed Account as funds are automatically transferred into your
choice of Investment Divisions. However, the effective yield over the 12-month
automatic transfer period will be less than the base interest rate, as it will
be applied to a declining balance in the one-year Fixed Account.
The DCA+ Fixed Account Option, if available, offers a fixed interest rate that
we guarantee for a period of up to one year in connection with
dollar-cost-averaging transfers to one or more of the Investment Divisions or
systematic transfers to other Fixed Account Options. From time to time, we will
offer special interest rates on the DCA+ Fixed Account Option. The DCA+ Fixed
Account Option is only available for new premiums. DCA+ is not available to
Contracts issued before July 14, 2008.
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 under
state insurance law 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 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
You may allocate your Contract Value to no more than 18 Investment Divisions and
the Fixed Account 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 Contract Value 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 depend 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 following Funds in which the Investment Divisions invest are each known as a
Fund of Funds. Funds offered in a Fund of Funds structure may have higher
expenses than direct investments in the underlying Funds. You should read the
prospectus for the JNL Series Trust for more information.
20
JNL Institutional Alt 20
JNL Institutional Alt 35
JNL Institutional Alt 50
JNL Institutional Alt 65
JNL/Franklin Templeton Founding Strategy
JNL/Mellon Capital Management Index 5
JNL/Mellon Capital Management 10 x 10
JNL/S&P Managed Conservative
JNL/S&P Managed Moderate
JNL/S&P Managed Moderate Growth
JNL/S&P Managed Growth
JNL/S&P Managed Aggressive Growth
JNL/S&P Retirement Income
JNL/S&P Retirement 2015
JNL/S&P Retirement 2020
JNL/S&P Retirement 2025
JNL/S&P Disciplined Moderate
JNL/S&P Disciplined Moderate Growth
JNL/S&P Disciplined Growth
JNL/S&P 4
The names of the Funds that are available, along with the names of the advisers
and sub-advisers and a brief statement of each investment objective, are below:
--------------------------------------------------------------------------------
JNL Series Trust
--------------------------------------------------------------------------------
JNL Institutional Alt 20 Fund
Jackson National Asset Management, LLC
Seeks long-term growth of capital and income by investing in Class A
shares of a diversified group of other Funds ("Underlying Funds").
The Underlying Funds in which each Fund may invest are a part of the
JNL Series Trust and the JNL Variable Fund LLC. Each Fund has a
target percentage allocation between Underlying Funds that are
categorized as primarily investing in traditional asset classes and
non-traditional asset classes. Under normal circumstances, the Fund
allocates approximately 80% of its assets to Underlying Funds that
invest primarily in traditional asset classes, and approximately 20%
to Underlying Funds that invest primarily in non-traditional asset
classes.
--------------------------------------------------------------------------------
JNL Institutional Alt 35 Fund
Jackson National Asset Management, LLC
Seeks long-term growth of capital and income by investing in Class A
shares of a diversified group of other Funds ("Underlying Funds").
The Underlying Funds in which each Fund may invest are a part of the
JNL Series Trust and the JNL Variable Fund LLC. Each Fund has a
target percentage allocation between Underlying Funds that are
categorized as primarily investing in traditional asset classes and
non-traditional asset classes. Under normal circumstances, the Fund
allocates approximately 65% of its assets to Underlying Funds that
invest primarily in traditional asset classes, and approximately 35%
to Underlying Funds that invest primarily in non-traditional asset
classes.
--------------------------------------------------------------------------------
JNL Institutional Alt 50 Fund
Jackson National Asset Management, LLC
Seeks long-term growth of capital and income by investing in Class A
shares of a diversified group of other Funds ("Underlying Funds").
The Underlying Funds in which each Fund may invest are a part of the
JNL Series Trust and the JNL Variable Fund LLC. Each Fund has a
target percentage allocation between Underlying Funds that are
categorized as primarily investing in traditional asset classes and
non-traditional asset classes. Under normal circumstances, the Fund
allocates approximately 50% of its assets to Underlying Funds that
invest primarily in traditional asset classes, and approximately 50%
to Underlying Funds that invest primarily in non-traditional asset
classes.
--------------------------------------------------------------------------------
JNL Institutional Alt 65 Fund
Jackson National Asset Management, LLC
Seeks long-term growth of capital and income by investing in Class A
shares of a diversified group of other Funds ("Underlying Funds").
The Underlying Funds in which each Fund may invest are a part of the
JNL Series Trust and the JNL Variable Fund LLC. Each Fund has a
target percentage allocation between Underlying Funds that are
categorized as primarily investing in traditional asset classes and
non-traditional asset classes. Under normal circumstances, the Fund
allocates approximately 35% of its assets to Underlying Funds that
invest primarily in traditional asset classes, and approximately 65%
to Underlying Funds that invest primarily in non-traditional asset
classes.
--------------------------------------------------------------------------------
JNL/AIM Global Real Estate Fund
Jackson National Asset Management, LLC (and Invesco Aim Capital
Management, Inc. (f/k/a AIM Capital Management, Inc.) and
sub-sub-advisers: Invesco Institutional (N.A.), Inc. (f/k/a INVESCO
Institutional (N.A.), Inc.); and Invesco Asset Management Ltd.)
Seeks high total return by investing at least 80% of its assets (net
assets plus the amount of any borrowings for investment purposes) in
securities of real estate and real estate-related companies,
including real estate investment trusts. The Fund will normally
invest in securities of companies located in at least three
different countries, including the United States.
21
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JNL/AIM International Growth Fund
Jackson National Asset Management, LLC (and Invesco Aim Capital
Management, Inc. (f/k/a AIM Capital Management, Inc.))
Seeks long-term growth of capital by investing in a diversified
portfolio of reasonably priced, quality international equity
securities whose issuers are considered by the Fund's portfolio
managers to have strong earnings growth.
--------------------------------------------------------------------------------
JNL/AIM Large Cap Growth Fund
Jackson National Asset Management, LLC (and Invesco Aim Capital
Management, Inc. (f/k/a AIM Capital Management, Inc.))
Seeks long-term growth of capital by investing at least 80% of its
assets (net assets plus the amount of any borrowings for investment
purposes) in securities of large-capitalization companies.
--------------------------------------------------------------------------------
JNL/AIM Small Cap Growth Fund
Jackson National Asset Management, LLC (and Invesco Aim Capital
Management, Inc. (f/k/a AIM Capital Management, Inc.))
Seeks long-term growth of capital by investing, normally, at least
80% of its assets (net assets plus the amount of any borrowings for
investment purposes) in securities of small-capitalization
companies.
--------------------------------------------------------------------------------
JNL/Capital Guardian Global Balanced Fund
Jackson National Asset Management, LLC (and Capital Guardian Trust
Company)
Seeks income and capital growth, consistent with reasonable risk via
balanced accomplishment of long-term growth of capital, current
income, and conservation of principal through investments in stocks
and fixed-income securities of U.S. and non-U.S. issuers. The Fund's
neutral position is a 65%/35% blend of equities and fixed-income,
but may allocate 55% to 75% to equities and 25% to 45% to
fixed-income.
--------------------------------------------------------------------------------
JNL/Capital Guardian Global Diversified Research Fund
Jackson National Asset Management, LLC (and Capital Guardian Trust
Company)
Seeks long-term growth of capital and income by investing at least
80% of its assets (net assets plus the amount of any borrowings for
investment purposes) in a portfolio consisting of equity securities
of U.S. and non-U.S. issuers. The Fund normally will invest in
common stocks, preferred shares and convertible securities of
companies with market capitalization greater than $1 billion at the
time of purchase.
--------------------------------------------------------------------------------
JNL/Capital Guardian International Small Cap Fund
Jackson National Asset Management, LLC (and Capital Guardian Trust
Company)
Seeks long-term growth of capital and income by investing at least
80% of its assets (net assets plus the amount of any borrowings for
investment purposes) in a portfolio consisting primarily of equity
securities of non-U.S. issuers (including ADRs and other U.S.
registered securities) and securities whose principal markets are
outside the U.S. with market capitalization of between $50 million
and $2 billion at the time of purchase.
--------------------------------------------------------------------------------
JNL/Capital Guardian U.S. Growth Equity Fund
Jackson National Asset Management, LLC (and Capital Guardian Trust
Company)
Seeks long-term growth of capital and income by investing at least
80% of its assets (net assets plus the amount of any borrowings for
investment purposes) in a portfolio consisting primarily of equity
securities of U.S. issuers and securities whose principal markets
are in the U.S. (including ADRs and other U.S. registered foreign
securities that are tied economically to the U.S.). The Fund
normally will invest in common stocks and convertible securities of
companies with market capitalization greater than $1.5 billion at
the time of purchase.
--------------------------------------------------------------------------------
JNL/Credit Suisse Global Natural Resources Fund
Jackson National Asset Management, LLC (and Credit Suisse Asset
Management, LLC and Credit Suisse Asset Management Limited
(sub-sub-adviser))
Seeks long-term capital growth by investing, normally, at least 80%
of its assets (net assets plus the amount of any borrowings for
investment purposes) in worldwide companies active in the
extraction, production, processing and trading of the following
products: chemicals, building materials, metal and other raw
materials, timber and paper products, containers and packaging as
well as companies in the energy resources sector.
--------------------------------------------------------------------------------
JNL/Credit Suisse Long/Short Fund
Jackson National Asset Management, LLC (and Credit Suisse Asset
Management, LLC)
Seeks total return by investing through an active quantitative
equity management strategy that allows the portfolio to
simultaneously invest in stocks and to underweight unattractive
stocks beyond benchmark weights, resulting in short positions on
certain stocks.
--------------------------------------------------------------------------------
JNL/Eagle Core Equity Fund
Jackson National Asset Management, LLC (and Eagle Asset Management, Inc.)
Seeks long-term growth through capital appreciation and,
secondarily, current income by investing at least 80% of its net
assets (plus the amount of any borrowings for investment purposes)
in equity securities consisting primarily of common stocks of large
U.S. companies.
--------------------------------------------------------------------------------
JNL/Eagle SmallCap Equity Fund
Jackson National Asset Management, LLC (and Eagle Asset Management, Inc.)
Seeks long-term capital appreciation by investing at least 80% of
its assets (net assets plus the amount of any borrowings for
investment purposes) in a diversified portfolio of equity securities
of U.S. companies with market capitalizations in the range of $100
million to $3 billion.
22
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JNL/Franklin Templeton Founding Strategy Fund
Jackson National Asset Management, LLC
Seeks capital appreciation by investing in a combination of mutual
funds (Underlying Funds) on a fixed percentage basis. These
Underlying Funds, in turn invest primarily in U.S. and foreign
equity securities, and, to a lesser extent, fixed-income and money
market securities.
--------------------------------------------------------------------------------
JNL/Franklin Templeton Global Growth Fund
Jackson National Asset Management, LLC (and Templeton Global Advisors
Limited)
Seeks long-term capital growth by investing primarily in the equity
securities of companies located anywhere in the world, including
emerging markets (under normal market conditions).
--------------------------------------------------------------------------------
JNL/Franklin Templeton Income Fund
Jackson National Asset Management, LLC (and Franklin Advisers, Inc.)
Seeks to maximize income while maintaining prospects for capital
appreciation by investing in a diversified portfolio of debt and
equity securities.
--------------------------------------------------------------------------------
JNL/Franklin Templeton Mutual Shares Fund
Jackson National Asset Management, LLC (and Franklin Mutual Advisers, LLC)
Seeks capital appreciation, which may occasionally be short-term,
and secondarily, income by investing mainly in equity securities
(including securities convertible into, or that the Sub-Adviser
expects to be exchanged for, common or preferred stock) of companies
in any nation that the Sub-Adviser believes are available at market
prices less than their value based on certain recognized or
objective criteria (intrinsic value). The Fund invests predominately
(80% or more) in mid- and large-cap companies with market
capitalization greater than $1.5 billion at the time of investment,
but it may invest a significant portion of its assets in small-cap
companies as well.
--------------------------------------------------------------------------------
JNL/Franklin Templeton Small Cap Value Fund
Jackson National Asset Management, LLC (and Franklin Advisory Services,
LLC)
Seeks long-term total return by investing at least 80% of its assets
(net assets plus the amount of any borrowings for investment
purposes) in investments of small-capitalization companies.
--------------------------------------------------------------------------------
JNL/Goldman Sachs Core Plus Bond Fund
Jackson National Asset Management, LLC (and Goldman Sachs Asset
Management, L.P. and Goldman Sachs Asset Management International
(sub-sub-adviser))
Seeks a high level of current income, with capital appreciation as a
secondary objective, by investing at least 80% of its assets (net
assets plus the amount of any borrowings for investment purposes) in
a globally diverse portfolio of bonds and other fixed-income
securities and related investments.
--------------------------------------------------------------------------------
JNL/Goldman Sachs Emerging Markets Debt Fund
Jackson National Asset Management, LLC (and Goldman Sachs Asset
Management, L.P. and Goldman Sachs Asset Management International
(sub-sub-adviser))
Seeks a high level of total return consisting of income and capital
appreciation, by investing at least 80% of its assets (net assets
plus the amount of any borrowings for investment purposes) in
sovereign and corporate debt of issuers located in emerging
countries denominated in the local currency of such emerging
countries or in currencies of such emerging countries, which may be
represented by forwards or other derivatives that may have interest
rate exposure.
--------------------------------------------------------------------------------
JNL/Goldman Sachs Mid Cap Value Fund
Jackson National Asset Management, LLC (and Goldman Sachs Asset
Management, L.P.)
Seeks long-term capital appreciation by investing at least 80% of
its assets (net assets plus the amount of any borrowings for
investment purposes) in a diversified portfolio of equity
investments in mid-cap issuers with public stock market
capitalizations (based upon shares available for trading on an
unrestricted basis) within the range of market capitalization of
companies constituting the Russell Midcap(R) Value Index at the time
of the investment.
--------------------------------------------------------------------------------
JNL/Goldman Sachs Short Duration Bond Fund
Jackson National Asset Management, LLC (and Goldman Sachs Asset
Management, L.P.)
Seeks a high level of current income, and secondarily, the potential
for capital appreciation by investing 80% of its assets (net assets
plus the amount of any borrowings for investment purposes) in fixed
income securities (including derivatives on such securities).
Normally the portfolio will focus on high quality securities.
--------------------------------------------------------------------------------
JNL/JPMorgan International Value Fund
Jackson National Asset Management, LLC (and J.P. Morgan Investment
Management Inc.)
Seeks high total return from a portfolio of equity securities of
foreign companies in developed and, to a lesser extent, developing
markets by investing at least 80% of its assets (net assets plus the
amount of any borrowings for investment purposes) in a diversified
portfolio consisting primarily of value common stocks of non-U.S.
companies; the Fund seeks to invest mainly in, but is not limited
to, securities included in the MSCI EAFE Value Index.
23
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JNL/JPMorgan MidCap Growth Fund
Jackson National Asset Management, LLC (and J.P. Morgan Investment
Management Inc.)
Seeks capital growth over the long-term by investing primarily in
common stocks of mid-cap companies which its sub-adviser, J.P.
Morgan Investment Management Inc. ("JPMorgan"), believes are capable
of achieving sustained growth. Under normal circumstances, the Fund
invests at least 80% of its assets (net assets plus the amount of
any borrowings for investment purposes) in a broad portfolio of
common stocks of companies with market capitalizations equal to
those within the universe of Russell Midcap Growth Index stocks at
the time of purchase.
--------------------------------------------------------------------------------
JNL/JPMorgan U.S. Government & Quality Bond Fund
Jackson National Asset Management, LLC (and J.P. Morgan Investment
Management Inc.)
Seeks a high level of current income by investing at least 80% of
its assets (net assets plus the amount of any borrowings for
investment purposes) in: (i) U.S. 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. Such securities entitle the
holder to receive all interest and principal payments due whether or
not payments are actually made on the underlying mortgages; (iv)
mortgage-backed securities guaranteed by agencies or
instrumentalities of the U.S. government which are supported by
their own credit but not the full faith and credit of the U.S.
government; (v) collateralized mortgage obligations issued by
private issuers for which the underlying mortgage-backed securities
serving as collateral are backed by (i) the credit alone of the U.S.
government agency or instrumentality which issues or guarantees the
mortgage-backed securities, or (ii) the full faith and credit of the
U.S. government; (vi) repurchase agreements collateralized by any of
the foregoing; and (vii) other investments (such as derivatives
contracts) related to those listed above.
--------------------------------------------------------------------------------
JNL/Lazard Emerging Markets Fund
Jackson National Asset Management, LLC (and Lazard Asset Management LLC)
Seeks long-term capital appreciation by investing 80% of its assets
(net assets plus the amount of any borrowings for investment
purposes) in equity securities of companies whose principal business
activities are located in emerging market countries and that the
sub-adviser believes are undervalued based on their earnings, cash
flow or asset values.
--------------------------------------------------------------------------------
JNL/Lazard Mid Cap Equity Fund
Jackson National Asset Management, LLC (and Lazard Asset Management LLC)
Seeks long-term capital appreciation by investing at least 80% of
its assets (net assets plus the amount of any borrowings for
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.
--------------------------------------------------------------------------------
JNL/M&G Global Basics Fund
Jackson National Asset Management, LLC (and M&G Investment Management
Limited)
Seeks to maximize long-term capital growth by investing in companies
operating in basic industries ("primary" and "secondary"
industries), and also in companies that service these industries.
The Fund may also invest in other global equities.
--------------------------------------------------------------------------------
JNL/M&G Global Leaders Fund
Jackson National Asset Management, LLC (and M&G Investment Management
Limited)
Seeks to maximize long-term total return (the combination of income
and growth of capital) by investing in stocks selected from the full
spectrum of leading companies world-wide. The Fund aims to achieve
consistent returns in the global equity funds sector.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management European 30 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to provide capital appreciation by investing under normal
circumstances at least 80% of its assets (net assets plus the amount
of any borrowings for investment purposes) in the common stock of 30
companies selected from the MSCI Europe Index.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management Pacific Rim 30 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to provide capital appreciation by investing under normal
circumstances at least 80% of its assets (net assets plus the amount
of any borrowings for investment purposes) in the common stock of 30
companies selected from the MSCI Pacific Index.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management S&P 500 Index Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to match the performance of the S&P 500(R) Index. The Fund is
constructed to mirror the S&P 500 Index to provide long-term capital
growth.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management S&P 400 MidCap Index Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to match the performance of the S&P Midcap 400 Index. The Fund
is constructed to mirror the index to provide long-term capital
growth by investing in equity securities of medium
capitalization-weighted domestic corporations.
24
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JNL/Mellon Capital Management Small Cap Index Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to match the performance of the Russell 2000(R) Index. The
Fund is constructed to mirror the index to provide long-term growth
of capital by investing in equity securities of small- to mid-size
domestic companies.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management International Index Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to match the performance of the Morgan Stanley Capital
International Europe Australasia Far East Index. The Fund is
constructed to mirror the index to provide long-term capital growth
by investing in international equity securities attempting to match
the characteristics of each country within the index.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management Bond Index Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to match the performance of the Barclays U.S. Aggregate Bond
Index. The Fund is constructed to mirror the Index to provide a
moderate rate of income by investing in domestic fixed-income
investments.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management Index 5 Fund
Jackson National Asset Management, LLC
Seeks to achieve its objective by initially allocating in the
following Funds:
- 20% in the JNL/Mellon Capital Management S&P 500 Index Fund;
- 20% in the JNL/Mellon Capital Management S&P 400 MidCap Index
Fund;
- 20% in the JNL/Mellon Capital Management Small Cap Index Fund;
- 20% in the JNL/Mellon Capital Management International Index
Fund; and
- 20% in the JNL/Mellon Capital Management Bond Index Fund.
--------------------------------------------------------------------------------
JNL/Mellon Capital Management 10 x 10 Fund
Jackson National Asset Management, LLC
Seeks to achieve its objective by initially allocating in the
following Funds:
- 50% in the Class A shares of the JNL/Mellon Capital Management
JNL 5 Fund;
- 10% in the Class A shares of the JNL/Mellon Capital Management
S&P 500 Index Fund;
- 10% in the Class A shares of the JNL/Mellon Capital Management
S&P 400 MidCap Index Fund;
- 10% in the Class A shares of the JNL/Mellon Capital Management
Small Cap Index Fund;
- 10% in the Class A shares of the JNL/Mellon Capital Management
International Index Fund; and
- 10% in the Class A shares of the JNL/Mellon Capital Management
Bond Index Fund.
--------------------------------------------------------------------------------
JNL/Oppenheimer Global Growth Fund
Jackson National Asset Management, LLC (and Oppenheimer Funds, Inc.)
Seeks capital appreciation by investing primarily in common stocks
of companies in the U.S. and foreign countries. The Fund can invest
without limit in foreign securities and can invest in any country,
including countries with developed or emerging markets.
--------------------------------------------------------------------------------
JNL/PAM Asia ex-Japan Fund
Jackson National Asset Management, LLC (and Prudential Asset Management
(Singapore) Limited)
Seeks long-term total return by investing under normal circumstances
at least 80% of its assets (net assets plus the amount of any
borrowings for investment purposes) in equity and equity-related
securities (such as depositary receipts, convertible bonds and
warrants) of companies, which are listed, incorporated, or have
their area of primary activity in the Asia ex-Japan region where the
(i) securities are of issuers organized under the laws of the
country or of a country within the geographic region or (ii)
maintains their principal place of business in that country or
region; or (iii) securities are traded principally in the country or
region; or (iv) securities of issuers, during the issuer's most
recent fiscal year, derived at least 50% of their revenues or
profits from goods produced or sold, investments made, or services
performed in the country or region or have at least 50% of their
assets in that country or region.
--------------------------------------------------------------------------------
JNL/PAM China-India Fund
Jackson National Asset Management, LLC (and Prudential Asset Management
(Singapore) Limited)
Seeks long-term total return by investing normally, 80% of its
assets (net assets plus the amount of any borrowings for investment
purposes) in equity and equity-related securities (such as
depositary receipts, convertible bonds and warrants) of
corporations, which are incorporated in, or listed in, or have their
area of primary activity in the People's Republic of China and India
where the (i) securities are of issuers organized under the laws of
the country or of a country within the geographic region or (ii)
maintain their principal place of business in that country or
region; or (iii) securities are traded principally in the country or
region; or (iv) securities of issuers, during the issuer's most
recent fiscal year, derived at least 50% of their revenues or
profits from goods produced or sold, investments made, or services
performed in the country or region or have at least 50% of their
assets in that country or region.
25
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JNL/PIMCO Real Return Fund
Jackson National Asset Management, LLC (and Pacific Investment Management
Company LLC)
Seeks maximum real return, consistent with preservation of real
capital and prudent investment management by investing under normal
circumstances at least 80% of its assets (net assets plus the amount
of any borrowings for investment purposes) in inflation-indexed
bonds of varying maturities issued by the U.S. and non-U.S.
governments, their agencies or instrumentalities, and corporations,
which may be represented by forwards or derivatives such as options,
futures contracts, or swap agreements.
--------------------------------------------------------------------------------
JNL/PIMCO Total Return Bond Fund
Jackson National Asset Management, LLC (and Pacific Investment Management
Company LLC)
Seeks to realize maximum total return, consistent with the
preservation of capital and prudent investment management, by
investing under normal circumstances at least 80% of its assets (net
assets plus the amount of any borrowings for investment purposes) in
a diversified portfolio of fixed-income income instruments of
varying maturities, which may be represented by forwards or
derivatives such as options, futures contracts, or swap agreements.
--------------------------------------------------------------------------------
JNL/PPM America Core Equity Fund
Jackson National Asset Management, LLC (and PPM America, Inc.)
Seeks long-term capital growth by investing primarily, at least 80%
of its assets (net assets plus the amount of any borrowings for
investment purposes) in a diversified portfolio of equity securities
(which include common stocks, securities convertible into common
stock and securities with common stock characteristics, such as
rights and warrants) of U.S. companies with market capitalizations
within the range of companies constituting the S&P 500 Index at the
time of the initial purchase. If the market capitalization of a
company held by the Fund moves outside this range, the Fund may, but
is not required to, sell the securities.
--------------------------------------------------------------------------------
JNL/PPM America High Yield Bond Fund
Jackson National Asset Management, LLC (and PPM America, Inc.)
Seeks to maximize current income, with capital appreciation as a
secondary objective, by investing at least 80% of its assets (net
assets plus the amount of any borrowings for investment purposes) in
high-yield, high-risk debt securities ("junk bonds") and related
investments and may invest in derivative instruments that have
economic characteristics similar to the fixed income instruments,
and in derivative instruments such as options, futures contracts or
swap agreements, including credit default swaps, and may also invest
in securities of foreign issuers.
--------------------------------------------------------------------------------
JNL/PPM America Mid Cap Value Fund
Jackson National Asset Management, LLC (and PPM America, Inc.)
Seeks long-term growth of capital by investing, primarily, at least
80% of its assets (net assets plus the amount of any borrowings for
investment purposes) in a diversified portfolio of equity securities
of U.S. companies with market capitalizations within the range of
companies, constituting the Russell Midcap Index at the time of the
initial purchase. If the market capitalization of a company held by
the Fund moves outside this range, the Fund may, but is not required
to, sell the securities.
--------------------------------------------------------------------------------
JNL/PPM America Small Cap Value Fund
Jackson National Asset Management, LLC (and PPM America, Inc.)
Seeks long-term growth of capital by investing, primarily, at least
80% of its assets (net assets plus the amount of any borrowings for
investment purposes) in a diversified portfolio of equity securities
of U.S. companies with market capitalizations of between $15.8
million and $2.5 billion under normal market conditions at the time
of initial purchase. The range will vary with market conditions over
time. If the market capitalization of a company held by the Fund
moves outside this range, the Fund may, but is not required to, sell
the securities.
--------------------------------------------------------------------------------
JNL/PPM America Value Equity Fund
Jackson National Asset Management, LLC (and PPM America, Inc.)
Seeks long-term capital growth by investing primarily in a
diversified portfolio of equity securities of domestic companies
with market capitalizations within the range of companies
constituting the S&P 500 Index. The capitalization range of the S&P
500 Index is currently between $452.2 million and $417.8 billion. At
least 80% of its assets (net assets plus the amount of any
borrowings for investment purposes) will be invested, under normal
circumstances, in equity securities.
--------------------------------------------------------------------------------
JNL/Red Rocks Listed Private Equity Fund
Jackson National Asset Management, LLC (and Red Rocks Capital LLC)
Seeks maximum total return by investing at least 80% of its assets
(net assets plus the amount of any borrowings for investment
purposes) in (i) securities of U.S. and non-U.S. companies listed on
a national securities exchange, or foreign equivalent, that have a
majority of their assets invested in or exposed to private companies
or have as its stated intention to have a majority of its assets
invested in or exposed to private companies ("Listed Private Equity
Companies"), and (ii) derivatives that otherwise have the economic
characteristics of Listed Private Equity Companies.
--------------------------------------------------------------------------------
JNL/Select Balanced Fund
Jackson National Asset Management, LLC (and Wellington Management Company,
LLP)
Seeks reasonable income and long-term capital growth by investing
primarily in a diversified portfolio of common stock and investment
grade fixed-income securities. The Fund may invest in any type or
class of security.
26
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JNL/Select Money Market Fund
Jackson National Asset Management, LLC (and Wellington Management Company,
LLP)
Seeks a high level of current income as is consistent with the
preservation of capital and maintenance of liquidity by investing in
high quality, short-term money market instruments.
--------------------------------------------------------------------------------
JNL/Select Value Fund
Jackson National Asset Management, LLC (and Wellington Management Company,
LLP)
Seeks long-term growth of capital by investing under normal
circumstances at least 65% of its total assets in common stocks of
domestic companies, focusing on companies with large market
capitalizations. Using a value approach, the Fund seeks to invest in
stocks that are underpriced relative to other stocks.
--------------------------------------------------------------------------------
JNL/T. Rowe Price Established Growth Fund
Jackson National Asset Management, LLC (and T. Rowe Price Associates,
Inc.)
Seeks long-term growth of capital and increasing dividend income by
investing primarily in common stocks, concentrating its investments
in well-established growth companies.
--------------------------------------------------------------------------------
JNL/T. Rowe Price Mid-Cap Growth Fund
Jackson National Asset Management, LLC (and T. Rowe Price Associates,
Inc.)
Seeks long-term growth of capital by normally investing at least 80%
of its assets (net assets plus the amount of any borrowings for
investment purposes) in a broadly diversified portfolio of common
stocks of medium-sized (mid-capitalization) companies which the
sub-adviser expects to grow at a faster rate than the average
company.
--------------------------------------------------------------------------------
JNL/T. Rowe Price Value Fund
Jackson National Asset Management, LLC (and T. Rowe Price Associates,
Inc.)
Seeks long-term capital appreciation by investing in common stocks
believed to be undervalued. Income is a secondary objective. In
taking a value approach to investment selection, at least 65% of its
total assets will be invested in common stocks the sub-adviser
regards as undervalued.
--------------------------------------------------------------------------------
JNL/S&P Managed Conservative Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth and current income by investing in Class A
Shares of a diversified group of other Funds (Underlying Funds),
which are part of the JNL Series Trust and JNL Variable Fund LLC
that invest in equity and fixed income securities.
Under normal circumstances, the Fund allocates approximately 10% to
30% of its assets to Underlying Funds that invest primarily in
equity securities, 50% to 80% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 30% to Underlying
Funds that invest primarily in money market securities. The Fund
remains flexible with respect to the percentage it will allocate
among particular Underlying Funds.
--------------------------------------------------------------------------------
JNL/S&P Managed Moderate Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth, with current income as a secondary objective,
by investing in Class A Shares of a diversified group of other Funds
(Underlying Funds), which are part of the JNL Series Trust and JNL
Variable Fund LLC that invest in equity and fixed income securities.
Under normal circumstances, the Fund allocates approximately 30% to
50% of its assets to Underlying Funds that invest primarily in
equity securities, 35% to 65% to Underlying Funds that invest
primarily in fixed-income securities and 0-25% to Underlying Funds
that invest primarily in money market securities. The Fund remains
flexible with respect to the percentage it will allocate among
particular Underlying Funds.
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JNL/S&P Managed Moderate Growth Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth and current income by investing in Class A
Shares of a diversified group of other Funds (Underlying Funds),
which are part of the JNL Series Trust and JNL Variable Fund LLC
that invest in equity and fixed income securities.
Under normal circumstances, the Fund allocates approximately 50% to
70% of its assets to Underlying Funds that invest primarily in
equity securities, 20% to 50% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 20% to Underlying
Funds that invest primarily in money market securities. The Fund
remains flexible with respect to the percentage it will allocate
among particular Underlying Funds.
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JNL/S&P Managed Growth Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth, with current income as a secondary objective,
by investing in Class A Shares of a diversified group of other Funds
(Underlying Funds), which are part of the JNL Series Trust and JNL
Variable Fund LLC that invest in equity and fixed income securities.
Under normal circumstances, the Fund allocates approximately 70% to
90% of its assets to Underlying Funds that invest primarily in
equity securities, 5% to 30% to Underlying Funds that invest
primarily in fixed-income securities and 0-15% to Underlying Funds
that invest primarily in money market securities. The Fund remains
flexible with respect to the percentage it will allocate among
particular Underlying Funds.
27
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JNL/S&P Managed Aggressive Growth Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth by investing in Class A Shares of a diversified
group of other Funds (Underlying Funds), which are part of the JNL
Series Trust and JNL Variable Fund LLC that invest in equity
securities.
Under normal circumstances, the Fund allocates up to 80% to 100% of
its assets to Underlying Funds that invest primarily in equity
securities, 0% to 20% to Underlying Funds that invest primarily in
fixed-income securities and 0% to 20% to Underlying Funds that
invest primarily in money market securities. The Fund remains
flexible with respect to the percentage it will allocate among
particular Underlying Funds.
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JNL/S&P Retirement Income Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks high current income and as a secondary objective, capital
appreciation by investing in Class A shares of a diversified group
of other Funds (Underlying Funds), which are part of the JNL Series
Trust and the JNL Variable Fund LLC using an asset allocation
strategy designed for investors already in or near retirement.
Under normal circumstances, the Fund allocates approximately 20% to
45% of its assets to Underlying Funds that invest primarily in
equity securities, 20% to 80% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 30% to Underlying
Funds that invest primarily in short-term securities. Within these
three asset classes, the Fund remains flexible with respect to the
percentage it will allocate among Underlying Funds.
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JNL/S&P Retirement 2015 Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks high total return until its target retirement date. After the
Fund's target retirement date, the Fund's objective will be to seek
high current income and as a secondary objective, capital
appreciation. Once the Fund reaches an allocation that is similar to
the JNL/S&P Retirement Income Fund, it is expected that the Fund
will be merged into the JNL/S&P Retirement Income Fund. The Fund
seeks to achieve its objective by investing in Class A shares of a
diversified group of other Funds (Underlying Funds), which are part
of the JNL Series Trust and the JNL Variable Fund LLC using an asset
allocation strategy designed for investors expecting to retire
around the year 2015, assuming a retirement age of 65.
Under normal circumstances, the Fund allocates approximately 30% to
80% of its assets to Underlying Funds that invest primarily in
equity securities, 20% to 70% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 30% to Underlying
Funds that invest primarily in short-term securities. Within these
three asset classes, the Fund remains flexible with respect to the
percentage it will allocate among Underlying Funds.
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JNL/S&P Retirement 2020 Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks high total return until its target retirement date. After the
Fund's target retirement date, the Fund's objective will be to seek
high current income and as a secondary objective, capital
appreciation. Once the Fund reaches an allocation that is similar to
the JNL/S&P Retirement Income Fund, it is expected that the Fund
will be merged into the JNL/S&P Retirement Income Fund. The Fund
seeks to achieve its objective by investing in Class A shares of a
diversified group of other Funds (Underlying Funds), which are part
of the JNL Series Trust and the JNL Variable Fund LLC using an asset
allocation strategy designed for investors expecting to retire
around the year 2020, assuming a retirement age of 65.
Under normal circumstances, the JNL/S&P Retirement 2020 Fund
allocates approximately 30-% to 90% of its assets to Underlying
Funds that invest primarily in equity securities, 0% to 70% to
Underlying Funds that invest primarily in fixed-income securities
and 0% to 30% to Underlying Funds that invest primarily in
short-term securities. Within these three asset classes, the Fund
remains flexible with respect to the percentage it will allocate
among Underlying Funds.
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JNL/S&P Retirement 2025 Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks high total return until its target retirement date. After the
Fund's target retirement date, the Fund's objective will be to seek
high current income and as a secondary objective, capital
appreciation. Once the Fund reaches an allocation that is similar to
the JNL/S&P Retirement Income Fund, it is expected that the Fund
will be merged into the JNL/S&P Retirement Income Fund. The Fund
seeks to achieve its objective by investing in Class A shares of a
diversified group of other Funds (Underlying Funds), which are part
of the JNL Series Trust and the JNL Variable Fund LLC using an asset
allocation strategy designed for investors expecting to retire
around the year 2025, assuming a retirement age of 65.
Under normal circumstances, the JNL/S&P Retirement 2025 Fund
allocates approximately 30% to 95% of its assets to Underlying Funds
that invest primarily in equity securities, 0% to 70% to Underlying
Funds that invest primarily in fixed-income securities and 0% to 30%
to Underlying Funds that invest primarily in short-term securities.
Within these three asset classes, the Fund remains flexible with
respect to the percentage it will allocate among Underlying Funds.
28
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JNL/S&P Disciplined Moderate Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth, and secondarily, current income by investing
in Class A shares of a diversified group of other Funds (Underlying
Funds), which are part of the JNL Series Trust and the JNL Variable
Fund LLC. The Fund seeks to achieve capital growth through its
investments in Underlying Funds that invest primarily in equity
securities. The Fund seeks to achieve current income through its
investments in Underlying Funds that invest primarily in
fixed-income securities.
Under normal circumstances, the Fund allocates approximately 50% to
70% of its assets to Underlying Funds that invest primarily in
equity securities, 20% to 50% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 20% of its assets to
Underlying Funds that invest primarily in money market securities.
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JNL/S&P Disciplined Moderate Growth Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth and current income by investing in Class A
shares of a diversified group of other Funds (Underlying Funds),
which are part of the JNL Series Trust and the JNL Variable Fund
LLC. The Fund seeks to achieve capital growth through its
investments in Underlying Funds that invest primarily in equity
securities. The Fund seeks to achieve current income through its
investments in Underlying Funds that invest primarily in
fixed-income securities.
Under normal circumstances, the Fund allocates approximately 70% to
90% of its assets to Underlying Funds that invest primarily in
equity securities, 5% to 30% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 15% of its assets to
Underlying Funds that invest primarily in money market securities.
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JNL/S&P Disciplined Growth Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC)
Seeks capital growth by investing in Class A shares of a diversified
group of other Funds (Underlying Funds), which are part of the JNL
Series Trust and the JNL Variable Fund LLC. The Fund seeks to
achieve capital growth through its investments in Underlying Funds
that invest primarily in equity securities.
Under normal circumstances, the Fund allocates approximately 80% to
100% of its assets to Underlying Funds that invest primarily in
equity securities, 0% to 20% to Underlying Funds that invest
primarily in fixed-income securities and 0% to 20% of its assets to
Underlying Funds that invest primarily in money market securities.
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JNL/S&P Competitive Advantage Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC and Mellon Capital Management Corporation)
Seeks capital appreciation by investing approximately equal amounts
in the common stock of 30 companies included in the S&P 500 that
are, in the opinion of Standard & Poor's Investment Advisory
Services LLC ("SPIAS"), profitable and predominantly higher-quality.
In selecting the companies, SPIAS looks to 30 companies ranked by
return on invested capital and lowest market-to-book multiples.
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JNL/S&P Dividend Income & Growth Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC and Mellon Capital Management Corporation)
Seeks primarily capital appreciation with a secondary focus on
current income by investing approximately equal amounts in the
common stock of the 30 companies, that have the highest indicated
annual dividend yields ("Dividend Yield") within their sector. The
three stocks with the highest Dividend Yield, are selected from each
of 10 economic sectors in the S&P 500.
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JNL/S&P Intrinsic Value Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC and Mellon Capital Management Corporation)
Seeks capital appreciation by investing approximately equal amounts
in the common stock of 30 companies included in the S&P 500,
excluding financial companies, that are, in the opinion of Standard
& Poor's Investment Advisory Services LLC ("SPIAS"), companies with
positive free cash flows and low external financing needs.
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JNL/S&P Total Yield Fund
Jackson National Asset Management, LLC (and Standard & Poor's Investment
Advisory Services LLC and Mellon Capital Management Corporation)
Seeks capital appreciation by investing approximately equal amounts
in the common stock of the 30 companies that have the highest S&P
Total Yield (a broad measure of cash returned to shareholders and
bondholders). Standard & Poor's Investment Advisory Services LLC
("SPIAS") seeks companies that are significantly reducing their debt
burden and/or increasing their equity distributions.
29
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JNL/S&P 4 Fund
Jackson National Asset Management, LLC
Seeks capital appreciation by investing in a combination of mutual
funds ("Underlying Funds") on a fixed percentage basis. The Fund
will invest at least 80% of its assets (net assets plus the amount
of any borrowings for investment purposes) in companies included in
the S&P 500. The Fund seeks to achieve its objective by making
initial allocations of its assets and cash flows to the following
four Underlying Funds (Class A) on each Stock Selection Date:
- 25% in JNL/S&P Competitive Advantage Fund; and
- 25% in JNL/S&P Dividend Income & Growth Fund; and
- 25% in JNL/S&P Intrinsic Value Fund; and
- 25% in JNL/S&P Total Yield Fund.
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30
About the JNL/S&P Retirement Funds. The JNL/S&P Retirement Funds have retirement
target dates. The investment strategies of these funds are designed to limit
your risk of investment losses as of the date you expect to make withdrawals
from your Contract. There is at least some degree of overlap between this
fundamental goal and the protections provided under the Contract's basic death
benefit and under certain optional features, specifically: (i) any GMIB and (ii)
any GMWB.
Each of these three benefits provides a specific guarantee of minimum value
regardless of investment performance on certain relevant dates: (i) the Owner's
date of death in the case of death benefits; and (ii) an Owner's specific age
under a GMIB and a GMWB. To the extent the JNL/S&P Retirement Funds achieve
their specific goals, the need for and the additional value of the protections
received under these three benefits may be somewhat diminished.
The potential for overlap is greatest for a GMIB and GMWB because those benefits
will come into effect at approximately the same date as the JNL/S&P Retirement
Funds' applicable target retirement date. The potential for overlap generally is
less for death benefits because those benefits do not come into effect on a
fixed or predetermined date and the likelihood the Owner's date of death will be
the same as the date that is the target date for the JNL/S&P Retirement Funds is
relatively small.
You, therefore, are encouraged to consider whether you want to participate in an
optional benefit when you plan to invest in a JNL/S&P Retirement Fund. Among the
considerations are the charges for the optional benefits and the value to you of
having overlapping goals and protections. In addition, there may be personal
considerations affecting your decision that a knowledgeable adviser can assist
you in weighing.
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JNL Variable Fund LLC
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JNL/Mellon Capital Management Nasdaq(R) 25 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return by investing in the common stocks of companies
that are expected to have a potential for capital appreciation. The
common stocks of 25 companies are selected from stocks included in
the Nasdaq-100 Index(R).
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JNL/Mellon Capital Management Value Line(R) 30 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks capital appreciation by investing in 30 of the 100 common
stocks that Value Line(R) gives a #1 ranking for Timeliness(TM). The
30 stocks are selected each year based on certain positive financial
attributes.
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JNL/ Mellon Capital Management Dow(SM) Dividend Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks to provide the potential for an above-average total return by
investing approximately equal amounts in the common stock of the 25
companies included in the Dow Jones Select Dividend Index(SM) which
have the best overall ranking on both the change in return on assets
of the last year compared to the prior year and price-to-book on or
about the last business day before each Stock Selection Date.
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JNL/Mellon Capital Management S&P(R) 24 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through capital appreciation by investing in the
common stocks of 24 companies that have the potential for capital
appreciation; the 24 companies are selected from a subset of stocks
included in the Standard & Poor's 500 Composite Stock Price Index
("S&P 500 Index(R)"), on each Stock Selection Date.
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JNL/Mellon Capital Management 25 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by investing the common stocks of 25 companies
selected from a pre-screened subset of the stocks listed on the New
York Stock Exchange ("NYSE"), on each Stock Selection Date.
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JNL/Mellon Capital Management Select Small-Cap Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through capital appreciation by investing at
least 80% of its assets (net assets plus the amount of any
borrowings for investment purposes) in a portfolio of common stocks
of 100 small capitalization ("small cap") companies selected from a
pre-screened subset of the common stocks listed on the New York
Stock Exchange ("NYSE"), the American Stock Exchange ("AMEX") or The
Nasdaq Stock Market ("Nasdaq"), on each Stock Selection Date.
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JNL/Mellon Capital Management JNL 5 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through capital appreciation and dividend income
by investing in the common stocks of companies that are identified
by a model based on 5 different specialized strategies:
- 20% in the Dow(SM) 10 Strategy, a dividend yielding strategy;
- 20% in the S&P(R) 10 Strategy, a blended valuation-momentum
strategy;
- 20% in the Global 15 Strategy, a dividend yielding strategy;
31
- 20% in the 25 Strategy, a dividend yielding strategy; and
- 20% in the Select Small-Cap Strategy, a small capitalization
strategy.
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JNL/Mellon Capital Management VIP Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return by investing in the common stocks of companies
that are identified by a model based on six separate specialized
strategies:
- The Dow(SM) Dividend Strategy;
- The European 20 Strategy;
- The Nasdaq(R) 25 Strategy;
- The S&P 24 Strategy;
- The Select Small-Cap Strategy; and
- The Value Line(R) 30 Strategy.
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JNL/Mellon Capital Management JNL Optimized 5 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks capital appreciation by investing in the common stocks of
companies that are identified by a model based on five separate
specialized strategies:
- 25% in the Nasdaq(R) 25 Strategy;
- 25% in the Value Line(R) 30 Strategy;
- 24% in the European 20 Strategy;
- 14% in the Global 15 Strategy; and
- 12% in the 25 Strategy.
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JNL/Mellon Capital Management S&P(R) SMid 60 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks capital appreciation by investing in the common stock of 30
companies included in the Standard & Poor's MidCap 400 Index and 30
companies in the Standard & Poor's SmallCap 600 Index. The 60
companies are selected on each Stock Selection Date. The Fund seeks
to achieve its objective by identifying small and mid-capitalization
companies with improving fundamental performance and sentiment. The
Fund focuses on small and mid-capitalization companies because the
Adviser believes they are more likely to be in an earlier stage of
their economic life cycle than mature large-cap companies.
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JNL/Mellon Capital Management NYSE(R) International 25 Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks capital appreciation by investing in foreign companies. The 25
companies are selected on each Stock Selection Date. The Sub-Adviser
generally uses a buy and hold strategy, trading only around each
Stock Selection Date, when cash flow activity occurs in the Fund and
for a dividend investment. The Sub-Adviser may also trade for
mergers or acquisitions if the original stock is not the surviving
company.
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JNL/Mellon Capital Management Communications Sector Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by utilizing a replication investment approach,
called indexing, which attempts to replicate the investment
performance of the Dow Jones U.S. Telecommunications Index.
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JNL/Mellon Capital Management Consumer Brands Sector Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by utilizing a replication investment approach,
called indexing, which attempts to replicate the investment
performance of the Dow Jones U.S. Consumer Services Index.
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JNL/Mellon Capital Management Financial Sector Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by utilizing a replication investment approach,
called indexing, which attempts to replicate the investment
performance of the Dow Jones U.S. Financial Index.
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JNL/Mellon Capital Management Healthcare Sector Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by utilizing a replication investment approach,
called indexing, which attempts to replicate the investment
performance of the Dow Jones U.S. Healthcare Index.
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JNL/Mellon Capital Management Oil & Gas Sector Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by utilizing a replication investment approach,
called indexing, which attempts to replicate the investment
performance of the Dow Jones U.S. Oil & Gas Index.
32
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JNL/Mellon Capital Management Technology Sector Fund
Jackson National Asset Management, LLC (and Mellon Capital Management
Corporation)
Seeks total return through a combination of capital appreciation and
dividend income by utilizing a replication investment approach,
called indexing, which attempts to replicate the investment
performance of the Dow Jones U.S. Technology Index.
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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
results 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 sub-advisers. The Funds described
are available only through variable annuity Contracts issued by Jackson 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 and the JNL Variable
Fund LLC carefully before investing. Additional Investment Divisions and
underlying funds may be available in the future. The prospectuses for the JNL
Series Trust and the JNL Variable Fund LLC are attached to this prospectus.
However, these prospectuses may also be obtained at no charge by calling
1-800-599-5651 (NY Annuity and Life Service Center) or 1-888-464-7779 (for NY
contracts purchased through a bank or financial institution), by writing P.O.
Box 30902, Lansing, Michigan 48909-8402 or by visiting www.jackson.com.
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. An effect of this proportional voting is that
a relatively small number of Owners may determine the outcome of a vote.
Substitution. We reserve the right to substitute a different underlying fund or
investment company 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. Charges are deducted
proportionally from your Contract Value. Some of these charges are for optional
endorsements, as noted, so they are deducted from your Contract Value only if
you elected to add that optional endorsement to your Contract. These charges may
be a lesser amount where required by state law or as described below, but will
not be increased, except as also described. We expect to profit from certain
charges associated 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 the
Mortality and Expense Risk Charge. On an annual basis, this charge equals 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 and include:
o to make income payments for the life of the Annuitant
during the income phase;
o to waive the withdrawal charge in the event of the
Owner's death; 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. Included among these expense risks are those that we assume
in connection with waivers of withdrawal charges under the Extended Care
Benefit.
If your Contract Value were ever to become insufficient to pay this charge, your
Contract would terminate without value.
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
33
Anniversary or upon full withdrawal and is deducted proportionally from your
allocations to the Fixed Account and Investment Divisions. 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. If the initial
premium equals $1 million or more, we will waive the administration charge.
However, we reserve the right to reverse this waiver and reinstate the
administration charge if withdrawals are made in the first Contract Year that
result in the Contract Value falling substantially below $1 million, as
determined by us.
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 a different Investment Division or the Fixed Account, as
applicable. We waive the transfer charge in connection with Dollar Cost
Averaging, Earnings Sweep, Rebalancing transfers and any transfers we require.
Withdrawal Charge. At any time during the accumulation phase (if and to the
extent that Contract Value is sufficient to pay any remaining withdrawal charges
that remain after a withdrawal), you may withdraw the following with no
withdrawal charge:
o premiums that are no longer subject to a withdrawal
charge (premiums in your annuity for at least four years
without being withdrawn), plus
o earnings (excess of your Contract Value allocated to the
Investment Divisions and the Fixed Account over
remaining premiums allocated to those accounts)
o during each Contract Year 10% of premium that would
otherwise incur a withdrawal charge, be subject to a
Contract Enhancement recapture charge, or be reduced by
an Interest Rate Adjustment, and that has not been
previously withdrawn (this can be withdrawn at once or
in segments throughout the Contract Year), minus
earnings (required minimum distribution will reduce the
free withdrawal amount).
We will deduct a withdrawal charge on:
o withdrawals in excess of the free withdrawal amounts, or
o withdrawals under a tax-qualified Contract that exceeds
its required minimum distribution, or
o withdrawals in excess of the free withdrawal amounts to
meet the required minimum distribution of a
tax-qualified Contract purchased with contributions from
a nontaxable transfer, after the Owner's death, of an
Individual Retirement Annuity (IRA), or to meet the
required minimum distribution of a Roth IRA annuity, or
o total withdrawals.
The amount of the withdrawal charge deducted varies depending upon how many
years prior to the withdrawal you made the premium payment(s) you are
withdrawing) according to the following schedule:
Withdrawal Charge (as a percentage of premium payments):
Completed Years
Since Receipt of
Premium 0 1 2 3 4+
Base Schedule 7% 6% 5% 4% 0%
For purposes of the withdrawal charge, we treat withdrawals as coming first from
earnings and then from the oldest remaining premium. If you make a full
withdrawal, the withdrawal charge is based on premiums remaining in the Contract
and no free withdrawal amount applies. If you withdraw only part of the value of
your Contract, we deduct the withdrawal charge from the remaining value in your
Contract. The withdrawal charge compensates us for costs associated with selling
the Contracts.
Note: Withdrawals under a non-qualified Contract will be taxable on an "income
first" basis. This means that any withdrawal from a non-qualified Contract that
does not exceed the accumulated income under the Contract will be taxable in
full. Any withdrawals under a tax-qualified Contract will be taxable except to
the extent that they are allocable to investment in the Contract, as defined by
34
the Internal Revenue Code (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.
We do not assess the withdrawal charge on any payments paid out as:
o income payments (but the withdrawal charge is deducted
on the Income Date if that date is within 13 months of
the Issue Date);
o death benefits;
o withdrawals necessary to satisfy the required minimum
distribution of the Internal Revenue Code (but if the
withdrawal requested exceeds the required minimum
distribution; if the Contract was purchased with
contributions from a nontaxable transfer, after the
Owner's death, of an Individual Retirement Annuity
(IRA); or is a Roth IRA annuity, then the entire
withdrawal will be subject to the withdrawal charge); or
o a one-time benefit on withdrawals of up to $250,000 from
the Separate Account or from the Fixed Accounts if you
need extended hospital or nursing home care as provided
in your Contract.
We may reduce or eliminate the amount of the withdrawal charge when the Contract
is sold under circumstances that reduce our sales expense. Some examples are:
the purchase of a Contract by a large group of individuals or an existing
relationship between us and a prospective purchaser. We may not deduct a
withdrawal charge under a Contract issued to an officer, director, agent or
employee of Jackson of NY or any of our affiliates.
Contract Enhancement Charge. If you select one of the Contract Enhancements,
then for a period of seven Contract Years (five for the 2% Contract Enhancement)
a charge will be imposed based upon the average daily net asset value of your
allocations to the Investment Divisions. These charges will also be assessed
against any amounts you have allocated to the Fixed Account by reducing credited
rates, but not below the minimum guaranteed interest rate (assuming no
withdrawals). The amounts of these charges (or reductions in credited rates)
depend upon which of the Contract Enhancements you select:
Contract Enhancement 2% 3% 4%
Charge (on an annual basis) 0.395% 0.42% 0.56%
Due to this charge, it is possible that upon a total withdrawal, you will
receive less money back than if you had not elected the Contract Enhancement.
Contract Enhancement Recapture Charge. If you select a Contract Enhancement and
then make a partial or total withdrawal from your Contract, including
annuitization, in the first seven years (five years for the 2% Contract
Enhancement) 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 Enhancements 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 amounts of these charges are as follows:
Contract Enhancement Recapture Charge (as a percentage of the corresponding
first year premium payment withdrawn if an optional Contract Enhancement is
selected)
Completed Years Since Receipt of
Premium Payment 0 1 2 3 4 5 6 7+
Recapture Charge (2% Credit) 2% 2% 1.25% 1.25% 0.5% 0 0 0
Recapture Charge (3% Credit) 3% 3% 2% 2% 2% 1% 1% 0
Recapture Charge (4% Credit) 3% 3% 2% 2% 2% 1% 1% 0
We expect to make a profit on the recapture charge, and examples in Appendix B
may assist you in understanding how the recapture charge works. However, we do
not assess the recapture charge on any amounts paid out as:
o death benefits;
o income payments paid during the income phase (beginning
on a date that is more than 13 months from the Issue
Date);
o withdrawals taken under the free withdrawal provision;
35
o withdrawals necessary to satisfy the required minimum
distribution of the Internal Revenue Code (but if the
requested withdrawal exceeds the required minimum
distribution, then the entire withdrawal will be
assessed the applicable recapture charge); or
o withdrawals of up to $250,000 from the Separate Account
or from the Fixed Accounts if you need extended hospital
or nursing home care as provided in your Contract.
During the applicable recapture charge period, you may neither allocate premiums
nor transfer Contract Value to the Fixed Account (for the specified periods of
three, five and seven years).
FutureGuard Guaranteed Minimum Income Benefit Charge.
PLEASE NOTE: EFFECTIVE OCTOBER 6, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
The charge for FutureGuard depends on the endorsement's availability and the
frequency of deduction, as explained below.
For Contracts with this GMIB purchased on and after January 17, 2006
(subject to availability), you pay 0.05% of the GMIB Benefit Base each
Contract Month (0.60% annually).
For Contracts with this GMIB purchased from March 7, 2005 through January
16, 2006 (subject to availability), you pay 0.15% of the GMIB Benefit Base
each calendar quarter (0.60% annually).
We deduct the charge from your Contract Value. Quarterly charges are pro rata
deducted over each applicable Investment Division and the Fixed Account. Monthly
charges are also pro rata, but deducted over the applicable Investment Divisions
only. The quarterly charge is waived with respect to the Fixed Account to the
extent its deduction would result in a net interest rate of less than the Fixed
Account minimum interest rate. The monthly charge is waived at the end of a
Contract Month to the extent it exceeds the amount of your Contract Value
allocated to the Investment Divisions. With the Investment Divisions, we deduct
the charge by canceling Accumulation Units rather than as part of the
calculation to determine Accumulation Unit Value. While the charge is deducted
from Contract Value, it is based on the applicable percentage of the GMIB
Benefit Base. The actual deduction of the charge will be reflected in your
quarterly statement. For more information about the GMIB Benefit Base, please
see "FutureGuard Guaranteed Minimum Income Benefit" beginning on page 163. The
charge is prorated, from the endorsement's effective date, to the end of the
first quarter or first month after selection, as applicable. Similarly, the
charge is prorated upon termination of the endorsement. PLEASE NOTE: The charge
for this GMIB will be deducted even if you never use the benefit. Also, this
GMIB only applies to certain optional income payments.
FutureGuard 6 Guaranteed Minimum Income Benefit Charge.
PLEASE NOTE: EFFECTIVE APRIL 6, 2009, THIS ENDORSEMENT IS NO LONGER AVAILABLE TO
ADD TO A CONTRACT.
The charge is 0.075% of the GMIB Benefit Base each Contract Month (0.90%
annually). We deduct the charge from your Contract Value on a pro rata basis
over each applicable Investment Division. The monthly charge is waived at the
end of a Contract Month to the extent it exceeds the amount of your Contract
Value allocated to the Investment Divisions. With the Investment Divisions, we
deduct the charge by canceling Accumulation Units rather than as part of the
calculation to determine Accumulation Unit Value. While the charge is deducted
from Contract Value, it is based on the applicable percentage of the GMIB
Benefit Base. Upon termination of the endorsement, the charge is prorated for
the period since the last monthly charge. The actual deduction of the charge
will be reflected in your quarterly statement. For more information about the
GMIB Benefit Base, please see "FutureGuard 6 Guaranteed Minimum Income Benefit"
beginning on page 165. PLEASE NOTE: The charge for this GMIB will be deducted
even if you never use the benefit. Also, this GMIB only applies to certain
optional income payments.
7% Guaranteed Minimum Withdrawal Benefit ("SafeGuard 7 Plus") Charge. The charge
for this GMWB is expressed as an annual percentage of the GWB and depends on
when the endorsement is added to the Contract. For more information about the
GWB, please see "7% Guaranteed Minimum Withdrawal Benefit" beginning on page 55.
The charge also depends on the endorsement's availability, the basis for
deduction, and the frequency of deduction, as explained below.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
For Contracts to which this GMWB is added on and after January 17, 2006
(subject to availability), the charge is:
36
Maximum Annual Charge Current Annual Charge
-------------------------------------------------
Monthly Monthly
0.75% 0.42% / 12
You pay the applicable annual percentage of the GWB each Contract Month.
But the charge is waived at the end of a Contract Month to the extent it
exceeds the amount of your Contract Value allocated to the Investment
Divisions. We deduct the charge from your Contract Value pro rata over
each applicable Investment Division by canceling Accumulation Units rather
than as part of the calculation to determine Accumulation Unit Value.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The charge is prorated, from the
endorsement's effective date, to the end of each Contract month (monthly
anniversary) after selection. Similarly, the charge is prorated upon
termination of the endorsement, including upon conversion (if conversion
is permitted). (For information about conversion privileges under this
GMWB, please see "Conversion" beginning on page 58.)
For Contracts to which this GMWB was added before January 17, 2006, the
charge is:
Maximum Annual Charge Current Annual Charge
-------------------------------------------------
0.70% 0.40%
You pay the percentage charge, on an annual basis, of the average daily
net asset value of your allocations to the Investment Divisions.
We reserve the right to prospectively change the charge on new Contracts, or if
you select the benefit after your Contract is issued, subject to the applicable
maximum annual charge. For Contracts to which this GMWB is added on and after
January 17, 2006, we may also change the charge with a step-up, again subject to
the applicable maximum annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. We stop deducting the charge on the earlier date that you annuitize
the Contract or your Contract Value is zero. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "7% Guaranteed Minimum Withdrawal Benefit"
beginning on page 55. Also see "Guaranteed Minimum Withdrawal Benefit Important
Special Considerations" beginning on page 55 for additional important
information to consider when purchasing a Guaranteed Minimum Withdrawal Benefit.
Guaranteed Minimum Withdrawal Benefit With 5-Year Step-Up Charge ("SafeGuard
Max"). If you select the Guaranteed Minimum Withdrawal Benefit With 5-Year
Step-Up, you pay the charge, currently 0.0375% of the GWB each Contract Month
(0.45% annually). We will waive the charge at the end of a Contract Month to the
extent that the charge exceeds the amount of your Contract Value allocated to
the Investment Divisions. For more information about the GWB, please see
"Guaranteed Minimum Withdrawal Benefit With 5-Year Step-Up" beginning on page
59.
We deduct the charge from your Contract Value on a pro rata basis over each
applicable Investment Division. With the Investment Divisions, we deduct the
charge by canceling Accumulation Units rather than as part of the calculation to
determine Accumulation Unit Value. While the charge is deducted from Contract
Value, it is based on the applicable percentage of the GWB. Upon termination of
the endorsement, the charge is prorated for the period since the last monthly
charge.
We reserve the right to prospectively change the charge: on new Contracts; if
you select this benefit after your Contract is issued; or upon election of a
Step-Up - subject to a maximum charge of 0.81% annually.
The actual deduction of the charge will be reflected in your quarterly
statement. We stop deducting this charge on the earlier date that you annuitize
the Contract, or your Contract Value is zero. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "Guaranteed Minimum Withdrawal Benefit With 5-Year
Step-Up" beginning on page 59. Also see "Guaranteed Minimum Withdrawal Benefit
Important Special Considerations" beginning on page 55 for additional important
information to consider when purchasing a Guaranteed Minimum Withdrawal Benefit.
5% Guaranteed Minimum Withdrawal Benefit With Annual Step-Up ("AutoGuard 5")
Charge. If you select the 5% GMWB With Annual Step-Up, you will pay 0.055% of
the GWB each Contract Month (0.66% annually). The actual deduction of the charge
will be reflected in your quarterly statement. For more information about the
GWB, please see "5% Guaranteed Minimum Withdrawal Benefit With Annual Step-Up"
beginning on page 64. We deduct the charge from your Contract
37
Value pro rata over each applicable Investment Division by canceling
Accumulation Units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the percentage of the GWB. We will waive the charge at the end of a
Contract Month, however, to the extent that the charge exceeds the amount of
your Contract Value allocated to the Investment Divisions. Upon termination of
the endorsement, including upon conversion (if conversion is permitted), the
charge is prorated for the period since the last monthly charge. (For
information about conversion privileges under this GMWB, please see "Conversion"
beginning on page 68.)
The charge may be reduced if you do not take any withdrawals before the fifth
Contract Anniversary, or before the tenth Contract Anniversary, after the
endorsement's effective date. After the fifth Contract Anniversary if no
withdrawals have been taken, you will pay 0.0375% of the GWB each Contract Month
(0.45% annually). After the tenth Contract Anniversary if no withdrawals have
been taken, you will pay 0.0175% of the GWB each Contract Month (0.21%
annually). We reserve the right to prospectively change the charge: on new
Contracts; if you select this benefit after your Contract is issued; or with a
step-up that you request (not on step-ups that are automatic) - subject to a
maximum charge of 1.47% annually. We stop deducting this charge on the earlier
date that you annuitize the Contract, or your Contract Value is zero. Please
check with your representative to learn about the current level of the charge,
or contact us at the Annuity Service Center for more information. Our contact
information is on the first page of the prospectus. In addition, please consult
the representative to be sure if a Step-Up is right for you and about any
increase in charges upon a Step-Up. Upon election of the GMWB and a Step-Up, the
applicable GMWB charge will be reflected in your confirmation. For more
information about how the endorsement works, please see "5% Guaranteed Minimum
Withdrawal Benefit With Annual Step-Up" beginning on page 64. Also see
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional important information to consider when
purchasing a Guaranteed Minimum Withdrawal Benefit.
6% Guaranteed Minimum Withdrawal Benefit With Annual Step-Up ("AutoGuard 6")
Charge. If you select the 6% GMWB With Annual Step-Up you will pay 0.0725% of
the GWB each Contract Month (0.87% annually), which we will waive at the end of
a Contract Month to the extent that the charge exceeds the amount of your
Contract Value allocated to the Investment Divisions. The actual deduction of
the charge will be reflected in your quarterly statement. For more information
about the GWB, please see "6% Guaranteed Minimum Withdrawal Benefit With Annual
Step-Up" beginning on page 68. We deduct the charge from your Contract Value on
a pro rata basis over each applicable Investment Division by canceling
accumulation units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the applicable percentage of the GWB. Upon termination of the
endorsement, including upon conversion (if conversion is permitted), the charge
is prorated for the period since the last monthly charge. (For information about
conversion privileges under this GMWB, please see "Conversion" beginning on page
72.)
The charge may be reduced if you do not take any withdrawals before the fifth
Contract Anniversary, or before the tenth Contract Anniversary, after the
endorsement's effective date. If you have not taken any withdrawals before the
fifth Contract Anniversary, then you will pay 0.05% of the GWB each Contract
Month (0.60% annually). After the tenth Contract Anniversary if no withdrawals
have been taken, you will pay 0.025% of the GWB each Contract Month (0.30%
annually). We reserve the right to prospectively change the charge on new
Contracts; if you select this benefit after your Contract is issued; or with a
step-up that you request (not on step-ups that are automatic) - subject to a
maximum charge of 1.62% annually. We stop deducting this charge on the earlier
date that you annuitize the Contract, or your Contract Value is zero. Please
check with your representative to learn about the current level of the charge,
or contact us at the Annuity Service Center for more information. Our contact
information is on the first page of the prospectus. In addition, please consult
the representative to be sure if a Step-Up is right for you and about any
increase in charges upon a Step-Up. Upon election of the GMWB and a Step-Up, the
applicable GMWB charge will be reflected in your confirmation. For more
information about how the endorsement works, please see "6% Guaranteed Minimum
Withdrawal Benefit with Annual Step-Up" beginning on page 68. Also see
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional important information to consider when
purchasing a Guaranteed Minimum Withdrawal Benefit.
5% Guaranteed Minimum Withdrawal Benefit Without Step-Up ("MarketGuard 5")
Charge. If you select the 5% GMWB Without Step-Up, you will pay 0.0175% of the
GWB each Contract Month (0.21% annually). The actual deduction of the charge
will be reflected in your quarterly statement. For more information about the
GWB, please see "5% Guaranteed Minimum Withdrawal Benefit Without Step-Up"
beginning on page 73.
PLEASE NOTE: EFFECTIVE OCTOBER 6, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
We deduct the charge from your Contract Value pro rata over each applicable
Investment Division by canceling Accumulation Units rather than as part of the
calculation to determine Accumulation Unit Value. While the charge is deducted
from Contract Value, it is based on the percentage of the GWB. The charge is
prorated, from the endorsement's effective date, to the end of each Contract
month (monthly anniversary) after selection. We will waive the charge at the end
of a Contract Month, however, to the extent that the charge exceeds the amount
of your Contract Value allocated to the Investment Divisions. The charge is
prorated upon termination of the endorsement, including upon conversion (if
conversion is permitted). (For information about conversion privileges under
this GMWB, please see "Conversion" beginning on page 76.) Similarly, the charge
may be reduced if you do not take any withdrawals before the fifth Contract
Anniversary, or before the tenth Contract Anniversary, after the endorsement's
effective date. After the fifth
38
Contract Anniversary if no withdrawals have been taken, you will pay 0.0125% of
the GWB each Contract Month. After the tenth Contract Anniversary if no
withdrawals have been taken, you will pay 0.01% of the GWB each Contract Month.
We reserve the right to prospectively change the charge on new Contracts, or
before you select this benefit if after your Contract is issued, subject to a
maximum charge of 0.51% annually. We stop deducting this charge on the earlier
date that you annuitize the Contract, or your Contract Value is zero. Please
check with your representative to learn about the current level of the charge,
or contact us at the Annuity Service Center for more information. Our contact
information is on the first page of the prospectus. In addition, please consult
the representative to be sure if a Step-Up is right for you and about any
increase in charges upon a Step-Up. Upon election of the GMWB and a Step-Up, the
applicable GMWB charge will be reflected in your confirmation. For more
information about how the endorsement works, please see "5% Guaranteed Minimum
Withdrawal Benefit Without Step-Up" beginning on page 73. Also see "Guaranteed
Minimum Withdrawal Benefit Important Special Considerations" beginning on page
55 for additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
5% For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
("LifeGuard Protector") Charge. The charge for this GMWB is expressed as an
annual percentage of the GWB and depends on the Owner's age when the endorsement
is added to the Contract. The charge varies by age group (see table below). For
more information about the GWB, please see "5% For Life Guaranteed Minimum
Withdrawal Benefit With Annual Step-Up" beginning on page 77. With joint Owners,
the charge is based on the older Owner's age. For the Owner that is a legal
entity, the charge is based on the Annuitant's age. (With joint Annuitants, the
charge is based on the older Annuitant's age.)
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
Annual Charge Maximum Current
------------------------------------------------
Ages 45 - 49 0.87%/12 0.42%/12
50 - 54 0.87%/12 0.42%/12
55 - 59 1.20%/12 0.66%/12
60 - 64 1.32%/12 0.75%/12
65 - 69 1.47%/12 0.90%/12
70 - 74 0.87%/12 0.51%/12
75 - 80 0.60%/12 0.36%/12
------------------------------------------------
Charge Basis GWB
------------------------------------------------
Charge Frequency Monthly
You pay the applicable annual percentage of the GWB each month. But the charge
is waived at the end of a Contract Month to the extent it exceeds the amount of
your Contract Value allocated to the Investment Divisions. We deduct the charge
from your Contract Value pro rata over each applicable Investment Division by
canceling Accumulation Units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the applicable percentage of the GWB. The charge is prorated, from the
endorsement's effective date, to the end of each Contract month (monthly
anniversary) after selection. Similarly, the charge is prorated upon termination
of the endorsement, including upon conversion (if conversion is permitted). (For
information about conversion privileges under this GMWB, please see "Conversion"
beginning on page 82.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. We may also change the charge when you elect a step-up
(not on step-ups that are automatic), again subject to the applicable maximum
annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "5% For Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up" beginning on page 77. Please check with your representative to
learn about the current level of the charge, or contact us at the Annuity
Service Center for more information. Our contact information is on the first
page of the prospectus. In addition, please consult the representative to be
sure if a Step-Up is right for you and about any increase in charges upon a
Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "5% For Life Guaranteed Minimum Withdrawal Benefit
With Annual Step-Up" beginning on page 77. Also see "Guaranteed Minimum
Withdrawal Benefit Important Special Considerations" beginning on page 55 for
additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Annual Step-Up
("LifeGuard Advantage") Charge. The charge for this GMWB is expressed as an
annual percentage of the GWB and depends on the Owner's age when the endorsement
is added to the Contract. The charge varies by age group (see table below). For
more information about the GWB, please see "5% For Life Guaranteed Minimum
Withdrawal Benefit With Bonus And Annual Step-Up" beginning on
39
page 83. With joint Owners, the charge is based on the older Owner's age. For
the Owner that is a legal entity, the charge is based on the Annuitant's age.
(With joint Annuitants, the charge is based on the older Annuitant's age.)
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
Annual Charge Maximum Current
------------------------------------------------
Ages 45 - 49 1.02%/12 0.57%/12
50 - 54 1.17%/12 0.72%/12
55 - 59 1.50%/12 0.96%/12
60 - 64 1.50%/12 0.96%/12
65 - 69 1.50%/12 0.96%/12
70 - 74 0.90%/12 0.57%/12
75 - 80 0.66%/12 0.42%/12
------------------------------------------------
Charge Basis GWB
------------------------------------------------
Charge Frequency Monthly
You pay the applicable annual percentage of the GWB each month. But the charge
is waived at the end of a Contract Month to the extent it exceeds the amount of
your Contract Value allocated to the Investment Divisions. We deduct the charge
from your Contract Value pro rata over each applicable Investment Division by
canceling Accumulation Units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the applicable percentage of the GWB. Upon termination of the
endorsement, including upon conversion (if conversion is permitted), the charge
is prorated for the period since the last monthly charge. (For information about
conversion privileges under this GMWB, please see "Conversion" beginning on page
89.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. We may also change the charge when you elect a step-up
(not on step-ups that are automatic), again subject to the applicable maximum
annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "5% For Life Guaranteed Minimum Withdrawal Benefit With
Bonus And Annual Step-Up" beginning on page 83. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "5% For Life Guaranteed Minimum Withdrawal Benefit
With Bonus And Annual Step-Up" beginning on page 83. Also see "Guaranteed
Minimum Withdrawal Benefit Important Special Considerations" beginning on page
55 for additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Five-Year
Step-Up ("LifeGuard Protector Plus") Charge. The charge for this GMWB is
expressed as an annual percentage of the GWB and depends on the Owner's age when
the endorsement is added to the Contract. The charge varies by age group (see
table below). For more information about the GWB, please see "5% For Life
Guaranteed Minimum Withdrawal Benefit With Bonus And Five-Year Step-Up"
beginning on page 90. With joint Owners, the charge is based on the older
Owner's age. For the Owner that is a legal entity, the charge is based on the
Annuitant's age. (With joint Annuitants, the charge is based on the older
Annuitant's age.)
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
Annual Charge Maximum Current
------------------------------------------------
Ages 45 - 49 0.87%/12 0.42%/12
50 - 54 1.02%/12 0.57%/12
55 - 59 1.47%/12 0.87%/12
60 - 64 1.47%/12 0.87%/12
65 - 69 1.20%/12 0.66%/12
70 - 74 0.75%/12 0.36%/12
75 - 80 0.57%/12 0.30%/12
------------------------------------------------
Charge Basis GWB
------------------------------------------------
Charge Frequency Monthly
40
You pay the applicable annual percentage of the GWB each month. But the charge
is waived at the end of a Contract Month to the extent it exceeds the amount of
your Contract Value allocated to the Investment Divisions. We deduct the charge
from your Contract Value pro rata over each applicable Investment Division by
canceling Accumulation Units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the applicable percentage of the GWB. The charge is prorated, from the
endorsement's effective date, to the end of each Contract month (monthly
anniversary) after selection. Similarly, the charge is prorated upon termination
of the endorsement, including upon conversion (if conversion is permitted). (For
information about conversion privileges under this GMWB, please see "Conversion"
beginning on page 96.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. We may also change the charge when you elect a step-up,
again subject to the applicable maximum annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "5% For Life Guaranteed Minimum Withdrawal Benefit With
Bonus and Five-Year Step-Up" beginning on page 90. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "5% For Life Guaranteed Minimum Withdrawal Benefit
With Bonus and Five-Year Step-Up" beginning on page 90. Also see "Guaranteed
Minimum Withdrawal Benefit Important Special Considerations" beginning on page
55 for additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
Joint 5% For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
("LifeGuard Protector With Joint Option") Charge. The charge for this GMWB is
expressed as an annual percentage of the GWB and depends on the youngest Covered
Life's age when the endorsement is added to the Contract. For more information
about the GWB and for information on who is a Covered Life under this form of
GMWB, please see "Joint 5% For Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up" beginning on page 97. The charge varies by age group (see table
below), and both Covered Lives must be within the eligible age range.
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
Annual Charge Maximum Current
------------------------------------------------
Ages 45 - 49 1.02%/12 0.57%/12
50 - 54 1.02%/12 0.57%/12
55 - 59 1.35%/12 0.81%/12
60 - 64 1.47%/12 0.90%/12
65 - 69 1.62%/12 1.05%/12
70 - 74 1.02%/12 0.66%/12
75 - 80 0.75%/12 0.51%/12
------------------------------------------------
Charge Basis GWB
------------------------------------------------
Charge Frequency Monthly
You pay the applicable annual percentage of the GWB each month. But the charge
is waived at the end of a Contract Month to the extent it exceeds the amount of
your Contract Value allocated to the Investment Divisions. We deduct the charge
from your Contract Value pro rata over each applicable Investment Division by
canceling Accumulation Units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the applicable percentage of the GWB. The charge is prorated, from the
endorsement's effective date, to the end of each Contract month (monthly
anniversary) after selection. Similarly, the charge is prorated upon termination
of the endorsement, including upon conversion (if conversion is permitted). (For
information about conversion privileges under this GMWB, please see "Conversion"
beginning on page 103.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. We may also change the charge when you elect a step-up
(not on step-ups that are automatic), again subject to the applicable maximum
annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "Joint 5% For Life Guaranteed Minimum Withdrawal Benefit
With Annual Step-Up" beginning on page 97. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is
41
right for you and about any increase in charges upon a Step-Up. Upon election of
the GMWB and a Step-Up, the applicable GMWB charge will be reflected in your
confirmation. For more information about how the endorsement works, please see
"Joint 5% For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up"
beginning on page 97. Also see "Guaranteed Minimum Withdrawal Benefit Important
Special Considerations" beginning on page 55 for additional important
information to consider when purchasing a Guaranteed Minimum Withdrawal Benefit.
Joint 5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Five-Year
Step-Up ("LifeGuard Protector Plus With Joint Option") Charge. The charge for
this GMWB is expressed as an annual percentage of the GWB and depends on the
youngest Covered Life's age when the endorsement is added to the Contract. For
more information about the GWB and for information on who is a Covered Life
under this form of GMWB, please see "Joint 5% For Life Guaranteed Minimum
Withdrawal Benefit With Bonus And Five-Year Step-Up" beginning on page 103. The
charge varies by age group (see table below) and both Covered Lives must be
within the eligible age range.
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
Annual Charge Maximum Current
------------------------------------------------
Ages 45 - 49 1.11%/12 0.66%/12
50 - 54 1.26%/12 0.81%/12
55 - 59 1.71%/12 1.11%/12
60 - 64 1.71%/12 1.11%/12
65 - 69 1.47%/12 0.90%/12
70 - 74 1.02%/12 0.60%/12
75 - 80 0.81%/12 0.57%/12
------------------------------------------------
Charge Basis GWB
------------------------------------------------
Charge Frequency Monthly
You pay the applicable annual percentage of the GWB each month. But the charge
is waived at the end of a Contract Month to the extent it exceeds the amount of
your Contract Value allocated to the Investment Divisions. We deduct the charge
from your Contract Value pro rata over each applicable Investment Division by
canceling Accumulation Units rather than as part of the calculation to determine
Accumulation Unit Value. While the charge is deducted from Contract Value, it is
based on the applicable percentage of the GWB. Upon termination of the
endorsement, including upon conversion (if conversion is permitted),, the charge
is prorated for the period since the last monthly charge. (For information about
conversion privileges under this GMWB, please see "Conversion" beginning on page
103.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. We may also change the charge when you elect a step-up,
again subject to the applicable maximum annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "Joint 5% For Life Guaranteed Minimum Withdrawal Benefit
With Bonus And Five-Year Step-Up" beginning on page 103. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "5% For Life Guaranteed Minimum Withdrawal Benefit
With Bonus And Five-Year Step-Up" beginning on page 103. Also see "Guaranteed
Minimum Withdrawal Benefit Important Special Considerations" beginning on page
55 for additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up ("LifeGuard
Ascent") Charge. If you select the For Life Guaranteed Minimum Withdrawal
Benefit, you will pay 0.08% of the GWB each Contract Month (0.96% annually),
which we will waive at the end of a Contract Month to the extent that the charge
exceeds the amount of your Contract Value allocated to the Investment Divisions.
For more information about the GWB, please see "For Life Guaranteed Minimum
Withdrawal Benefit" beginning on page 111.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
We deduct the charge from your Contract Value pro rata over each applicable
Investment Division by canceling accumulation units rather than as part of the
calculation to determine Accumulation Unit Value. While the charge is deducted
from Contract Value, it is
42
based on the applicable percentage of the GWB. Upon termination of the
endorsement, including upon conversion (if conversion is permitted),, the charge
is prorated for the period since the last monthly charge. (For information about
conversion privileges under this GMWB, please see "Conversion" beginning on page
118.)
We reserve the right to prospectively change the charge on new Contracts; if you
select this benefit after your Contract is issued; or with a step-up that you
request (not on step-ups that are automatic) - subject to a maximum charge of
1.50% annually.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "For Life Guaranteed Minimum Withdrawal Benefit With Annual
Step-Up" beginning on page 111. Please check with your representative to learn
about the current level of the charge, or contact us at the Annuity Service
Center for more information. Our contact information is on the first page of the
prospectus. In addition, please consult the representative to be sure if a
Step-Up is right for you and about any increase in charges upon a Step-Up. Upon
election of the GMWB and a Step-Up, the applicable GMWB charge will be reflected
in your confirmation. For more information about how the endorsement works,
please see "For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up"
beginning on page 111. Also see "Guaranteed Minimum Withdrawal Benefit Important
Special Considerations" beginning on page 55 for additional important
information to consider when purchasing a Guaranteed Minimum Withdrawal Benefit.
Joint For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
("LifeGuard Ascent With Joint Option") Charge. If you select the Joint For Life
Guaranteed Minimum Withdrawal Benefit, you will pay 0.0975% of the GWB each
Contract Month (1.17% annually), which we will waive at the end of a Contract
Month to the extent that the charge exceeds the amount of your Contract Value
allocated to the Investment Divisions. For more information about the GWB,
please see "Joint For Life Guaranteed Minimum Withdrawal Benefit With Annual
Step-Up" beginning on page 119.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
We deduct the charge from your Contract Value pro rata over each applicable
Investment Division by canceling accumulation units rather than as part of the
calculation to determine Accumulation Unit Value. While the charge is deducted
from Contract Value, it is based on the applicable percentage of the GWB. Upon
termination of the endorsement, including upon conversion (if conversion is
permitted),, the charge is prorated for the period since the last monthly
charge. (For information about conversion privileges under this GMWB, please see
"Conversion" beginning on page 126.)
We reserve the right to prospectively change the charge on new Contracts; if you
select this benefit after your Contract is issued; or with a step-up that you
request (not on step-ups that are automatic) - subject to a maximum charge of
1.71% annually.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "Joint For Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up" beginning on page 119. Please check with your representative to
learn about the current level of the charge, or contact us at the Annuity
Service Center for more information. Our contact information is on the first
page of the prospectus. In addition, please consult the representative to be
sure if a Step-Up is right for you and about any increase in charges upon a
Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "Joint For Life Guaranteed Minimum Withdrawal
Benefit With Annual Step-Up" beginning on page 119. Also see "Guaranteed Minimum
Withdrawal Benefit Important Special Considerations" beginning on page 55 for
additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Annual Step-Up
("LifeGuard Freedom GMWB") Charge. If you select the For Life Guaranteed Minimum
Withdrawal Benefit With Bonus and Annual Step-Up, you will pay 0.08% of the GWB
each Contract Month (0.96% annually), which we will waive at the end of a
Contract Month to the extent that the charge exceeds the amount of your Contract
Value allocated to the Investment Divisions. For more information about the GWB,
please see "For Life Guaranteed Minimum Withdrawal Benefit With Bonus and Annual
Step-Up" beginning on page 127. We deduct the charge from your Contract Value
pro rata over each applicable Investment Division by canceling accumulation
units rather than as part of the calculation to determine Accumulation Unit
Value. While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. Upon termination of the endorsement, including
upon conversion (if conversion is permitted), the charge is prorated for the
period since the last monthly charge. (For information about conversion
privileges under this GMWB, please see "Conversion" beginning on page 136.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the maximum
charge of 1.50% annually. We may also change the charge when there is a Step-Up
on or after the fifth
43
Contract Anniversary (eleventh Contract Anniversary if this endorsement is added
to the Contract before January 12, 2009), again subject to the maximum annual
charge. If the GMWB charge is to increase, a notice will be sent to you 45 days
prior to the Contract Anniversary. You may then elect to discontinue the
automatic Step-Up provision and the GMWB charge will not increase but remain at
its then current level.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "For Life Guaranteed Minimum Withdrawal Benefit With Bonus
And Annual Step-Up" beginning on page 127. Please check with your representative
to learn about the current level of the charge, or contact us at the Annuity
Service Center for more information. Our contact information is on the first
page of the prospectus. In addition, please consult the representative to be
sure if a Step-Up is right for you and about any increase in charges upon a
Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "For Life Guaranteed Minimum Withdrawal Benefit
With Bonus And Annual Step-Up" beginning on page 127. Also see "Guaranteed
Minimum Withdrawal Benefit Important Special Considerations" beginning on page
55 for additional important information to consider when purchasing a Guaranteed
Minimum Withdrawal Benefit.
Note: The above section describes the charge for the LifeGuard Freedom GMWB
only. If you purchase the LifeGuard Freedom DB, additional charges apply for
that benefit. Please see "Optional Death Benefit - LifeGuard Freedom DB Charge"
on page 46 for details.
Joint For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Annual
Step-Up ("LifeGuard Freedom GMWB With Joint Option") Charge. If you select the
Joint For Life Guaranteed Minimum Withdrawal Benefit With Bonus and Annual
Step-Up, you will pay 0.105% of the GWB each Contract Month (1.26% annually),
which we will waive at the end of a Contract Month to the extent that the charge
exceeds the amount of your Contract Value allocated to the Investment Divisions.
For more information about the GWB, please see "Joint For Life Guaranteed
Minimum Withdrawal Benefit With Bonus and Annual Step-Up" beginning on page 137.
We deduct the charge from your Contract Value pro rata over each applicable
Investment Division by canceling accumulation units rather than as part of the
calculation to determine Accumulation Unit Value. While the charge is deducted
from Contract Value, it is based on the applicable percentage of the GWB. Upon
termination of the endorsement, including upon conversion (if conversion is
permitted), the charge is prorated for the period since the last monthly charge.
(For information about conversion privileges under this GMWB, please see
"Conversion" beginning on page 147.)
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the maximum
charge of 1.86% annually. We may also change the charge when there is a Step-Up
on or after the fifth Contract Anniversary (eleventh Contract Anniversary if
this endorsement is added to the Contract before January 12, 2009), again
subject to the maximum annual charge. If the GMWB charge is to increase, a
notice will be sent to you 45 days prior to the Contract Anniversary. You may
then elect to discontinue the automatic Step-Up provision and the GMWB charge
will not increase but remain at its then current level.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement through the
earlier date that you annuitize the Contract or your Contract Value is zero.
Also, we will stop deducting the charge under the other circumstances that would
cause the endorsement to terminate. For more information, please see
"Termination" under "Joint For Life Guaranteed Minimum Withdrawal Benefit With
Bonus And Annual Step-Up" beginning on page 137. Please check with your
representative to learn about the current level of the charge, or contact us at
the Annuity Service Center for more information. Our contact information is on
the first page of the prospectus. In addition, please consult the representative
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-Up. Upon election of the GMWB and a Step-Up, the applicable GMWB charge
will be reflected in your confirmation. For more information about how the
endorsement works, please see "Joint For Life Guaranteed Minimum Withdrawal
Benefit With Bonus And Annual Step-Up" beginning on page 137. Also see
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional important information to consider when
purchasing a Guaranteed Minimum Withdrawal Benefit.
5% For Life Guaranteed Minimum Withdrawal Benefit ("LifeGuard 5") Charge. The
charge for this GMWB is expressed as an annual percentage of the GWB and depends
on the Owner's age when the endorsement is added to the Contract. For more
information about the GWB, please see "5% For Life Guaranteed Minimum Withdrawal
Benefit" beginning on page 148. The charge varies by age group. The charge also
depends on the endorsement's availability, and the basis for and frequency of
its deduction, as explained below. With joint Owners, the charge is based on the
older Owner's age. For the Owner that is a legal entity, the charge is based on
the Annuitant's age. (With joint Annuitants, the charge is based on the older
Annuitant's age.)
PLEASE NOTE: EFFECTIVE MAY 1, 2006, THIS ENDORSEMENT IS NO LONGER AVAILABLE TO
ADD TO A CONTRACT.
The bonus is available only for Contracts to which this GMWB was added from
January 17, 2006 through April 30, 2006.
44
For Contracts to which this GMWB was added before May 1, 2006 (subject to
availability), the charge for each age group is:
Annual Charge Maximum Current
------------------------------------------------
Ages 60 - 64 1.32% / 12 0.90% / 12
65 - 69 0.87% / 12 0.60% / 12
70 - 74 0.60% / 12 0.51% / 12
75 - 80 0.51% / 12 0.42% / 12
------------------------------------------------
Charge Basis GWB
------------------------------------------------
Charge Frequency Monthly
You pay the applicable annual percentage of the GWB each Contract Month.
But the charge is waived at the end of a Contract Month to the extent it
exceeds the amount of your Contract Value allocated to the Investment
Divisions. We deduct the charge from your Contract Value pro rata over
each applicable Investment Division by canceling Accumulation Units rather
than as part of the calculation to determine Accumulation Unit Value.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The charge is prorated, from the
endorsement's effective date, to the end of each Contract month (monthly
anniversary) after selection. Similarly, the charge is prorated upon
termination of the endorsement, including upon conversion (if conversion
is permitted). (For information about conversion privileges under this
GMWB, please see "Conversion" beginning on page 154.)
For Contracts to which this GMWB was added before January 17, 2006, the
charge for each age group is:
Annual Charge Maximum Current
------------------------------------------------
Ages 60 - 64 1.30% 0.90%
65 - 69 0.85% 0.60%
70 - 74 0.60% 0.50%
75 - 80 0.50% 0.40%
------------------------------------------------
Charge Basis Investment Divisions
------------------------------------------------
Charge Frequency Daily
You pay the applicable percentage charge, on an annual basis, of the
average daily net asset value of your allocations to the Investment
Divisions. 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 are made. But this charge
reduction is not available upon the spouse's continuation of the Contract.
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. For Contracts to which this endorsement was added from
January 17, 2006 through April 30, 2006, we may also change the charge with a
step-up, again subject to the applicable maximum annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement, even if the
For Life Guarantee would become invalid, through the earlier date that you
annuitize the Contract or your Contract Value is zero. Also, we will stop
deducting the charge under the other circumstances that would cause the
endorsement to terminate. For more information, please see "Termination" under
"5% For Life Guaranteed Minimum Withdrawal Benefit" beginning on page 148.
Please check with your representative to learn about the current level of the
charge, or contact us at the Annuity Service Center for more information. Our
contact information is on the first page of the prospectus. Upon election of the
GMWB, the applicable GMWB charge will be reflected in your confirmation. For
more information about how the endorsement works, please see "5% For Life
Guaranteed Minimum Withdrawal Benefit" beginning on page 148. Also see
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional important information to consider when
purchasing a Guaranteed Minimum Withdrawal Benefit.
4% For Life Guaranteed Minimum Withdrawal Benefit ("LifeGuard 4") Charge. The
charge for this GMWB is expressed as an annual percentage of the GWB and depends
on the Owner's age when the endorsement is added to the Contract. For more
information about the GWB, please see "4% For Life Guaranteed Minimum Withdrawal
Benefit" beginning on page 155. The charge varies by age group. The charge also
depends on the endorsement's availability, and the basis for and frequency of
its deduction, as explained below. With joint Owners, the charge is based on the
older Owner's age. For the Owner that is a legal entity, the charge is based on
the Annuitant's age. (With joint Annuitants, the charge is based on the older
Annuitant's age.)
PLEASE NOTE: EFFECTIVE MAY 1, 2006, THIS ENDORSEMENT IS NO LONGER AVAILABLE TO
ADD TO A CONTRACT.
The bonus is available only for Contracts to which this GMWB was added from
January 17, 2006 through April 30, 2006.
45
For Contracts to which this GMWB is was added before May 1, 2006 (subject
to availability), the charge for each age group is:
Annual Charge Maximum Current
--------------------------------------------------
Ages 50 - 54 0.87% / 12 0.66% / 12
55 - 59 0.66% / 12 0.51% / 12
60 - 64 0.51% / 12 0.36% / 12
65 - 69 0.36% / 12 0.27% / 12
70 - 74 0.30% / 12 0.21% / 12
75 - 80 0.21% / 12 0.15% / 12
--------------------------------------------------
Charge Basis GWB
--------------------------------------------------
Charge Frequency Monthly
You pay the applicable annual percentage of the GWB each Contract Month.
But the charge is waived at the end of a Contract Month to the extent it
exceeds the amount of your Contract Value allocated to the Investment
Divisions. We deduct the charge from your Contract Value pro rata over
each applicable Investment Division by canceling Accumulation Units rather
than as part of the calculation to determine Accumulation Unit Value.
While the charge is deducted from Contract Value, it is based on the
applicable percentage of the GWB. The charge is prorated, from the
endorsement's effective date, to the end of each Contract month (monthly
anniversary) after selection. Similarly, the charge is prorated upon
termination of the endorsement, including upon conversion (if conversion
is permitted). (For information about conversion privileges under this
GMWB, please see "Conversion" beginning on page 160.)
For Contracts to which this GMWB was added before January 17, 2006, the
charge for each age group is:
Annual Charge Maximum Current
-------------------------------------------------
Ages 50 - 54 0.85% 0.65%
55 - 59 0.65% 0.50%
60 - 64 0.50% 0.35%
65 - 69 0.35% 0.25%
70 - 74 0.30% 0.20%
75 - 80 0.20% 0.15%
-------------------------------------------------
Charge Basis Investment Divisions
-------------------------------------------------
Charge Frequency Daily
You pay the applicable percentage charge, on an annual basis, of the
average daily net asset value of your allocations to the Investment
Divisions. 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 are made. But this charge
reduction is not available upon the spouse's continuation of the Contract.
We reserve the right to prospectively change the charge on new Contracts, or if
you select this benefit after your Contract is issued, subject to the applicable
maximum annual charge. For Contracts to which this endorsement was added from
January 17, 2006 through April 30, 2006, we may also change the charge with a
step-up, again subject to the applicable maximum annual charge.
The actual deduction of the charge will be reflected in your quarterly
statement. You will continue to pay the charge for the endorsement even if the
For Life Guarantee would become invalid through the earlier date that you
annuitize the Contract or your Contract Value is zero. Also, we will stop
deducting the charge under the other circumstances that would cause the
endorsement to terminate. For more information, please see "Termination" under
"4% For Life Guaranteed Minimum Withdrawal Benefit" beginning on page 155.
Please check with your representative to learn about the current level of the
charge in your state, or contact us at the Annuity Service Center for more
information. Our contact information is on the first page of the prospectus.
Upon election of the GMWB, the applicable GMWB charge will be reflected in your
confirmation. For more information about how the endorsement works, please see
"4% For Life Guaranteed Minimum Withdrawal Benefit" beginning on page 155. Also
see "Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional important information to consider when
purchasing a Guaranteed Minimum Withdrawal Benefit.
Optional Death Benefit - Highest Anniversary Value Death Benefit Charge. There
is no charge for the Contract's basic death benefit. However, if you select the
Highest Anniversary Value Death Benefit, you will pay 0.25%, subject to a
maximum of 0.40% on new issues, 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. We reserve the right to change the charge
on new Contracts, subject to a maximum annual charge of 0.40%.
Optional Death Benefit - LifeGuard Freedom DB Charge. There is no additional
charge for the Contract's basic death benefit. However, if you select the
LifeGuard Freedom DB optional death benefit, which is only available in
conjunction with the purchase of the LifeGuard Freedom GMWB, you will pay two
separate charges for the combined benefit. For LifeGuard Freedom
46
DB, you will pay 0.05% of the GMWB Death Benefit each Contract Month (0.60%
annually). The charge for LifeGuard Freedom DB, which is based on a percentage
of the GMWB Death Benefit, is separate from and in addition to the charge for
the LifeGuard Freedom GMWB, which is based on a percentage of the Guaranteed
Withdrawal Balance (GWB) and paid each Contract Month at the rate of 0.96%
annually. For more information about the GMWB Death Benefit, please see
"LifeGuard Freedom DB" under "Optional Death Benefits", beginning on page 168.
For more information about the charges for LifeGuard Freedom GMWB, please see
page 43, and for benefit information, including the GWB, please see "For Life
Guaranteed Minimum Withdrawal Benefit With Bonus And Annual Step-Up" beginning
on page 127.
We deduct the charge from your Contract Value on a pro rata basis over each
applicable Investment Division. The monthly charge is waived at the end of a
Contract Month to the extent it exceeds the amount of your Contract Value
allocated to the Investment Divisions. The charge is deducted from the
Investment Divisions by the redemption of Accumulation Units attributable to
your Contract rather than as an asset based charge applied to the assets of all
Contract Owners who elected the optional death benefit. While the charge is
deducted from Contract Value, it is calculated based on the applicable
percentage of the GMWB Death Benefit. Upon termination of the endorsement, the
charge is prorated for the period since the last monthly charge. 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 charges. 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 and
the JNL Variable Fund LLC. For more information, please see the "Fund Operating
Expenses" table beginning on page 16.
Premium Taxes. Your state charges premium taxes or other similar taxes. We pay
these taxes and may make a deduction from your Contract Values for them.
Currently, the deduction would be 2% of a premium payment, but we are not
required to pay premium taxes.
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
the Separate Account, or to a particular 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 LLC ("JNLD"), located at 7601 Technology Way,
Denver, Colorado 80237, serves as the distributor of the Contracts. JNLD is a
wholly owned subsidiary of Jackson National Life Insurance Company
(Jackson(SM)), Jackson of NY's parent.
Commissions are paid to broker-dealers who sell the Contracts. While commissions
may vary, they are not expected to exceed 8% of any premium payment. Where lower
commissions are paid up front, we may also 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, JNLD out of its own resources may pay bonuses,
overrides, and marketing allowances, in addition to the standard commissions.
These payments and/or reimbursements to broker-dealers are in recognition of
their marketing and distribution and/or administrative services support. They
may not be offered to all broker-dealers, and the terms of any particular
agreement may vary among broker-dealers depending on, among other things, the
level and type of marketing and distribution support provided assets under
management, and the volume and size of the sales of our insurance products. They
may provide us greater access to the registered representatives of the
broker-dealers receiving such compensation or may otherwise influence the
broker-dealer and/or registered representative to present the Contracts more
favorably than other investment alternatives. Such compensation is subject to
applicable state insurance law and regulation and the NASD rules of conduct.
While such compensation may be significant, it will not cause any additional
direct charge by us to you.
The two primary forms of such compensation paid by JNLD are overrides and
marketing support payments. Overrides are payments that are designed as
consideration for product placement, assets under management and sales volume.
Overrides are generally based on a fixed percentage of product sales and
currently range from 10 to 50 basis points (0.10% to 0.50%). Marketing support
payments may be in the form of cash and/or non-cash compensation and allow us
to, among other things, participate in sales conferences and educational
seminars. Examples of such payments include, but are not limited to,
reimbursements for representative training or "due diligence" meetings
(including travel and lodging expenses), client prospecting seminars, and
business development and educational enhancement items. Payments or
reimbursements for meetings and seminars are generally based on the anticipated
level of participation and/or accessibility and the size of the audience.
Subject to NASD rules of conduct, we may also provide cash and/or non-cash
compensation to registered representatives in the form of gifts, promotional
items and occasional meals and entertainment.
47
Below is an alphabetical listing of the 20 broker-dealers that received the
largest amounts of marketing and distribution and/or administrative support in
2008 from the Distributor in relation to the sale of our variable insurance
products:
A.G. Edwards & Sons, Inc.
Centaurus Financial, Inc.
Commonwealth Financial Network
FSC Securities Corporation
Hantz Financial Services, Inc.
Intersecurities, Inc.
Invest Financial Corporation
Investment Centers of America, Inc.
Lincoln Financial Securities Corporation
LPL Financial Corporation
National Planning Corporation
Next Financial Group, Inc.
Raymond James & Associates, Inc.
Royal Alliance Associates, Inc.
Securities America, Inc.
SII Investments, Inc.
UBS Financial Services, Inc.
Wachovia Securities LLC
WaMu Investments, Inc.
Woodbury Financial Services, Inc.
Please see Appendix C for a complete list of broker-dealers that received
amounts of marketing and distribution and/or administrative support in 2008 from
the Distributor in relation to the sale of our variable insurance products.
While we endeavor to update this list on an annual basis, please note that
interim changes or new arrangements may not be listed.
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. You can learn about the amount of any available bonus by calling the
toll-free number on the cover page of this prospectus. Contract purchasers
should inquire of the representative if such bonus is available to them and its
compliance with applicable law. If you elect the optional Three-Year Withdrawal
Charge Period endorsement, if available, a lower commission may be paid to the
registered representative who sells you your Contract than if you elect to
purchase the product without that endorsement. 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. Besides Jackson
National Life Distributors LLC, we are affiliated with the following
broker-dealers:
o National Planning Corporation,
o SII Investments, Inc.,
48
o IFC Holdings, Inc. d/b/a Invest Financial Corporation,
o Investment Centers of America, Inc., and
o Curian Clearing LLC
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 of NY and Jackson, 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.
All of the compensation described here, and other compensation or benefits
provided by Jackson of NY or our affiliates, may be greater or less than the
total compensation on similar or other products. The amount and/or structure of
the compensation can possibly create a potential conflict of interest as it may
influence your registered representative, broker-dealer or selling institution
to present this Contract over other investment alternatives. The variations in
compensation, however, may also reflect differences in sales effort or ongoing
customer services expected of the registered representative or the
broker-dealer. You may ask your registered representative about any variations
and how he or she and his or her broker-dealer are compensated for selling the
Contract.
PURCHASES
Minimum Initial Premium:
o $10,000 (Qualified and Non-Qualified)
Minimum Additional Premiums:
o $500 (Qualified and Non-Qualified)
o $50 for an automatic payment 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, as long as the amount left in the account is sufficient to pay the
withdrawal charge. We reserve the right to limit the number of Contracts that
you may purchase. We also reserve the right to refuse any premium payment. There
is a $100 minimum balance requirement for each Fixed Account and Investment
Division. A withdrawal request that would reduce the remaining Contract Value to
less than $100 will be treated as a request for a complete withdrawal. We
reserve the right to restrict availability or impose restrictions on the Fixed
Account.
Maximum Premiums:
o The maximum aggregate premiums you may make without our
prior approval is $1 million.
The payment of subsequent premiums 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, the GMWBs and any GMIB. The payment and
timing of subsequent premium payments may also affect the value of the Contract
Enhancements.
Allocations of Premium. You may allocate your premiums to one or more of the
Fixed Account and Investment Divisions. Each allocation must be a whole
percentage between 0% and 100%. The minimum amount you may allocate to the
Investment Division or Fixed Account 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.
You may not allocate your Contract Values among more than 18 Investment
Divisions and the Fixed Account at any one time.
49
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 return your money.
Each business day ends when the New York Stock Exchange closes (usually 4:00
p.m. Eastern time).
Optional Contract Enhancements. If you elect one of our optional Contract
Enhancements, then at the end of any business day in the first Contract Year
when we receive a premium payment, we will credit your Contract Value with an
additional 2%, 3% or 4% of your payment, depending upon which Contract
Enhancement you have selected. Contract Enhancements are available to Owners 87
years old and younger. There is a charge, described above, that is assessed
against the Investment Divisions and the Fixed Account for the Contract
Enhancements, and its amount depends upon which Contract Enhancement you elect.
We will impose a Contract Enhancement recapture charge if you
o make withdrawals in excess of the free withdrawals
permitted by your Contract or
o return your Contract during the Free Look period.
The amount and duration of the recapture charge depends upon which Contract
Enhancement you elect. We will not impose the Contract Enhancement recapture
charge if your withdrawal is made for extended care, withdrawal of earnings,
withdrawals made in accordance with your Contract's free withdrawal provision,
amounts paid out as income payments or death benefits, or to satisfy required
minimum distribution of the Internal Revenue Code. If the withdrawal requested
exceeds the required minimum distribution, the recapture charge will be charged
on the entire withdrawal amount. We expect to make a profit on these charges for
the Contract Enhancements. Examples in Appendix B may assist you in
understanding how recapture charges for the Contract Enhancement's work.
Your Contract Value will reflect any gains or losses attributable to a Contract
Enhancement. Contract Enhancements, and any increase in value attributable to a
Contract Enhancement, distributed under your Contract will be considered
earnings under the Contract for tax purposes.
Asset-based charges are deducted from the total value of the Separate Account.
In addition, for the Fixed Account, the Contract Enhancement charge lowers the
credited rate that would apply if the Contract Enhancement had not been elected.
Therefore, your Contract incurs charges on the entire amounts included in your
Contract, which includes premium payments made in the first seven (five for the
2% Contract Enhancement) years, the Contract Enhancement and the earnings, if
any, on such amounts for the first seven (five for the 2% Contract Enhancement)
Contract Years. As a result, the aggregate charges assessed will be higher than
those that would be charged if the Contract did not include the Contract
Enhancement. Accordingly, it is possible that upon surrender, you will receive
less money back than you would have if you had not elected the Contract
Enhancement. Jackson of NY will recapture all or part of any Contract
Enhancements if you make withdrawals in the first seven (five for the 2%
Contract Enhancement) years. We expect to profit from certain charges assessed
under the Contract, including the withdrawal charge, the mortality and expense
risk charge and the Contract Enhancement charge.
If you elect the Contract Enhancement and then make more than relatively small
premium payments during Contract Years two through seven (five for the 2%
Contract Enhancement), you would likely have a lower Contract Value 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 seventh Contract Year (fifth for the 2% Contract
Enhancement).
Accordingly, the increased Contract Value resulting from a Contract Enhancement
is reduced during the first seven Contract Years (five for the 2% Contract
Enhancement) 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 seven years (five for the 2% Contract Enhancement), at the end
of the seven-year period (five for the 2% Contract Enhancement) that the
Contract Enhancement charge is applicable, the Contract Value will be equal to
or slightly higher than if you had not selected a Contract Enhancement,
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 seven full years (five for the 2% Contract Enhancement).
In the first seven Contract Years (five for the 2% Contract Enhancement), the
Contract Enhancement typically will be beneficial (even in circumstances where
cash surrender value may not be higher than Contracts without the Contract
Enhancement) in the following circumstances:
o death benefits computed on the basis of Contract Value;
50
o withdrawals taken under the free withdrawal provision;
o withdrawals necessary to satisfy the required minimum
distribution of the Internal Revenue Code;
o withdrawals under our extended care benefit. For more
information, please see "Waiver of Withdrawal and
Recapture Charges for Extended Care" beginning on page
56.
In electing a Contract Enhancement, you may neither allocate premiums nor
transfer Contract Value to the Fixed Account (for the specified periods of
three, five and seven years) during the applicable recapture charge period.
Capital Protection Program. If you select our Capital Protection program at
issue, we will allocate enough of your premium to the Fixed Account you select
to assure that the amount so allocated will equal at the end of a selected
period of 1, 3, 5, or 7 years, your total original premium paid. You may
allocate the rest of your premium to any Investment Division(s). If any part of
the Fixed Account value is surrendered or transferred before the end of the
selected guarantee period, the value at the end of that period will not equal
the original premium. This program is available only if Fixed Account options
are available. There is no charge for the Capital Protection Program. You should
consult your Jackson of NY representative with respect to the current
availability of 3, 5, 7 year Fixed Accounts and the availability of the Capital
Protection Program.
For an example of capital protection, assume you made a premium payment of
$10,000 when the interest rate for the three-year guaranteed period was 3% per
year. We would allocate $9,152 to that guarantee period because $9,152 would
increase at that interest rate to $10,000 after three years, assuming no
withdrawals are taken. The remaining $848 of the payment would be allocated to
the Investment Division(s) you selected.
Alternatively, assume Jackson of NY receives a premium payment of $10,000 when
the interest rate for the 7-year period is 6.75% per year. Jackson of NY will
allocate $6,331 to that guarantee period because $6,331 will increase at that
interest rate to $10,000 after 7 years. The remaining $3,669 of the payment will
be allocated to the Investment Division(s) you selected.
Thus, as these examples demonstrate, the shorter guarantee periods require
allocation of substantially all of your premium to achieve the intended result.
In each case, the results will depend on the interest rate declared for the
guaranteed period.
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 asset-based charges and taxes chargeable
under the Contract; and
o dividing this amount by the number of outstanding
Accumulation Units.
Charges deducted through the cancellation of units are not reflected in this
computation.
The value of an Accumulation Unit may go up or down from day to day. The base
Contract has a different Accumulation Unit value than each combination of
optional endorsements an Owner may elect, based on the differing amount of
charges applied in calculating that Accumulation Unit value.
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 that reflects the combination of optional endorsements you have elected
and their respective charges.
TRANSFERS AND FREQUENT TRANSFER RESTRICTIONS
You may transfer your Contract Value between and among the Investment Divisions
at any time, unless transfers are subject to other limitations, but transfers
between the Fixed Account and an Investment Division must occur prior to the
Income Date. Transfers from the Fixed Account will be subject to any applicable
Interest Rate Adjustment. There may be periods when we do not offer the Fixed
Account, or when we impose special transfer requirements on the Fixed Account.
If a renewal occurs within one year of the Income Date, we will continue to
credit interest up to the Income Date at the then Current Interest Rate for the
applicable Fixed Account Option. You can make 15 transfers every Contract Year
during the accumulation phase without charge.
51
A transfer will be effective as of the end of the business day when we receive
your transfer request in Good Order, and we will disclaim all liability for
transfers made based on your transfer instructions, or the instructions of a
third party authorized to submit transfer requests on your behalf.
Restrictions on Transfers: Market Timing. The Contract is not designed for
frequent transfers by anyone. Frequent transfers between and among Investment
Divisions may disrupt the underlying Funds and could negatively impact
performance, by interfering with efficient management and reducing long-term
returns, and increasing administrative costs. Neither the Contracts nor the
underlying Funds are meant to promote any active trading strategy, like market
timing. To protect Owners and the underlying Funds, we have policies and
procedures to deter frequent transfers between and among the Investment
Divisions.
Under these policies and procedures, there is a $25 charge per transfer after 15
in a Contract Year, and no round trip transfers are allowed within 15 calendar
days. Also, we could restrict your ability to make transfers to or from one or
more of the Investment Divisions, which possible restrictions may include, but
are not limited to:
o limiting the number of transfers over a period of time;
o requiring a minimum time period between each transfer;
o limiting transfer requests from an agent acting on
behalf of one or more Owners or under a power of
attorney on behalf of one or more Owners; or
o limiting the dollar amount that you may transfer at any
one time.
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 between and among Investment Divisions may be modified if we determine
that the exercise by one or more Owners is, or would be, to the disadvantage of
other Owners.
We continuously monitor transfers under the Contract for disruptive activity
based on frequency, pattern and size. We will more closely monitor Contracts
with disruptive activity, placing them on a watch list, and if the disruptive
activity continues, we will restrict the availability of electronic or
telephonic means to make a transfer, instead requiring that transfer
instructions be mailed through regular U.S. postal service, and/or terminate the
ability to make transfers completely, as necessary. If we terminate your ability
to make transfers, you may need to make a partial withdrawal to access the
Contract Value in the Investment Division(s) from which you sought a transfer.
We will notify you and your representative in writing within five days of
placing the Contract on a watch list.
Regarding round trip transfers, 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 any value back into that Investment Division within 15
calendar days of the redemption. 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 calendar days, whether the transfer was
requested by you or a third party.
Our policies and procedures do not apply to the money market Investment
Division, the Fixed Account, Dollar Cost Averaging, Earnings Sweep or the
Automatic Rebalancing program. We may also make exceptions that involve an
administrative error, or a personal unanticipated financial emergency of an
Owner resulting from an identified health, employment, or other financial or
personal event that makes the existing allocation imprudent or a hardship.
Please contact our Annuity Service Center if you believe your transfer request
entails a financial emergency.
Otherwise, we do not exempt any person or class of persons from our policies and
procedures. We have agreements allowing for asset allocation and investment
advisory services that are not only subject to our policies and procedures, but
also to additional conditions and limitations, intended to limit the potential
adverse impact of these activities on other Owners of the Contract. We expect to
apply our policies and procedures uniformly, but because detection and
deterrence involves judgments that are inherently subjective, we cannot
guarantee that we will detect and deter every Contract engaging in frequent
transfers every time. If these policies and procedures are ineffective, the
adverse consequences described above could occur. We also expect to apply our
policies and procedures in a manner reasonably designed to prevent transfers
that we consider to be to the disadvantage of other Owners, and we may take
whatever action we deem appropriate, without prior notice, to comply with or
take advantage of any state or federal regulatory requirement.
TELEPHONE AND INTERNET TRANSACTIONS
The Basics. You can request certain transactions by telephone or at
www.jackson.com, our Internet web-site, 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
52
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.jackson.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. Our contact information is on the cover page of this prospectus and the
number is 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 Annuity 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 any other 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.
Withdrawals under the Contract may be subject to a withdrawal charge. For
purposes of the withdrawal charge, we treat withdrawals as coming first from
earnings and then from the oldest remaining premium. When you make a complete
withdrawal you will receive the value of your Contract as of the end of the
business day your request is received by us in Good Order, minus any applicable
taxes, the annual contract maintenance charges, charges due under any optional
endorsement and all applicable recapture and withdrawal charges, adjusted for
any applicable Interest Rate Adjustment. For more information about withdrawal
charges, please see "Withdrawal Charge" beginning on page 34.
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. To minimize the risks, the proceeds
will be sent to your last
53
recorded address in our records, so be sure to notify us, in writing, with an
original signature, of any address change. We do not assume responsibility for
improper disbursement if you have failed to provide us with the current address
to which the proceeds should be sent.
Except in connection with the Systematic Withdrawal Program, you must withdraw
at least $500 or, if less, the entire amount in the Investment Division or Fixed
Account from which you are making the withdrawal. If you are not specific, your
withdrawal will be taken from your allocations to the Fixed Account and
Investment Divisions based on the proportion their respective values bear to the
Contract Value. With the Systematic Withdrawal Program, you may withdraw a
specified dollar amount (of at least $50 per withdrawal) or a specified
percentage. After your withdrawal, at least $100 must remain in each Investment
Division or Fixed Account from which the withdrawal was taken or such greater
amount if and to the extent that Contract Value is sufficient to pay any
remaining withdrawal charges that remain after 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.
If you have an investment adviser who, for a fee, manages your Contract Value,
you may authorize payment of the fee from the Contract by requesting a partial
withdrawal. There are conditions and limitations, so please contact our Annuity
Service Center for more information. Our contact information is on the cover
page of this prospectus. We neither endorse any investment advisers, nor make
any representations as to their qualifications. The fee for this service would
be covered in a separate agreement between the two of you, and would be in
addition to the fees and expenses described in this prospectus.
Income taxes, tax penalties and certain restrictions may apply to any withdrawal
you make. There are limitations on withdrawals from qualified plans. For more
information, please see "TAXES" beginning on page 172.
Waiver of Withdrawal and Recapture Charges for Extended Care. We will waive the
withdrawal charges and recapture charges (but not any Interest Rate Adjustment)
that would otherwise apply in certain circumstances by providing you, at no
charge, an Extended Care Benefit, on amounts of up to $250,000 from the
Investment Divisions and Fixed Account that you withdraw after providing us with
a physician's statement that you have been confined to a nursing home or
hospital for 90 consecutive days, beginning at least 30 days after your Contract
was issued. You may exercise this benefit once under your Contract.
Guaranteed Minimum Withdrawal Benefit Considerations. Most people who are
managing their investments to provide retirement income want to provide
themselves with sufficient lifetime income and also to provide for an
inheritance for their Beneficiaries. The main obstacles they face in meeting
these goals are the uncertainties as to (i) how much income their investments
will produce, and (ii) how long they will live and will need to draw income from
their investments. A Guaranteed Minimum Withdrawal Benefit (GMWB) is designed to
help reduce these uncertainties.
A GMWB is intended to address those concerns but does not provide any guarantee
the income will be sufficient to cover any individual's particular needs.
Moreover, the GMWB does not assure that you will receive any return on your
investments. The GMWB also does not protect against loss of purchasing power of
assets covered by a GMWB due to inflation. Even relatively low levels of
inflation may have a significant effect on purchasing power if not offset by
stronger positive investment returns. The step-up feature on certain of the
GMWBs may provide protection against inflation when there are strong investment
returns that coincide with the availability of effecting a step-up. However,
strong investment performance will only help the GMWB guard against inflation if
the endorsement includes a step-up feature.
Payments under the GMWB will first be made from your Contract Value. Our
obligations to pay you more than your Contract Value will only arise under
limited circumstances. Thus, in considering the election of any GMWB you need to
consider whether the value to you of the level of protection that is provided by
a GMWB and its costs, which reduce Contract Value and offset our risks, are
consistent with your level of concern and the minimum level of assets that you
want to be sure are guaranteed.
The Joint For Life GMWB with Bonus and Annual Step-Up is available only to
spouses and differs from the For Life GMWB with Bonus and Annual Step-Up without
the Joint Option (which is available to spouses and unrelated parties) and
enjoys the following advantages:
o If the Contract Value falls to zero, benefit payments
under the endorsement will continue until the death of
the last surviving Covered Life if the For Life
Guarantee is effective. (For more information about the
For Life Guarantee and for information on who is a
Covered Life under this form of GMWB, please see the
"Joint For Life Guaranteed Minimum Withdrawal Benefit
With Bonus and Annual Step-Up" beginning on page 137.)
o If an Owner dies before the automatic payment of
benefits begins, the surviving Covered Life may continue
the Contract and the For Life Guarantee is not
automatically terminated (as it is on the For Life GMWBs
without the Joint Option).
54
The Joint For Life GMWB with Bonus and Annual Step-Up has a higher charge than
the For Life GMWB without the Joint Option.
Guaranteed Minimum Withdrawal Benefit Important Special Considerations. Each of
the GMWBs provides that the GMWB and all benefits thereunder will terminate on
the Income Date, which is the date when annuity payments begin. The Income Date
is either a date that you choose or the Latest Income Date. The Latest Income
Date is the date on which the Owner attains age 95 under a Non-Qualified
Contract (age 90, unless otherwise approved by the Company, if your Contract was
issued before April 6, 2009), or such earlier date as required by the applicable
qualified plan, law or regulation.
Before (1) electing a GMWB, (2) electing to annuitize your Contract after having
purchased a GMWB, or (3) when the Latest Income Date is approaching and you are
thinking about electing or have elected a GMWB, you should consider whether the
termination of all benefits under the GMWB and annuitizing produces the better
financial results for you. Naturally, you should discuss with your Jackson of NY
representative whether a GMWB is even suitable for you. Consultation with your
financial and tax advisor is also recommended.
These considerations are of greater significance if you are thinking about
electing or have elected a GMWB For Life, as the For Life payments will cease
when you annuitize voluntarily or on the Latest Income Date. Although each of
the For Life GMWBs contain an annuitization option that may allow the equivalent
of For Life payments when you annuitize on the Latest Income Date, all benefits
under a GMWB For Life (and under the other GMWBs) will terminate when you
annuitize. To the extent that we can extend the Latest Income Date without
adverse tax consequences to you, we will do so, as permitted by the applicable
qualified plan, law, or regulation. After you have consulted your financial and
tax advisors you will need to contact us to request an extension of the Latest
Income Date. Please also see "Extension of Latest Income Date" beginning on page
174 for further information regarding possible adverse tax consequences of
extending the Latest Income Date.
In addition, with regard to required minimum distributions (RMDs) under an IRA
only, it is important to consult your financial and tax advisor to determine
whether the benefits of a particular GMWB will satisfy your RMD requirements or
whether there are other IRA holdings that can satisfy the aggregate RMD
requirements. With regard to other qualified plans, you must determine what your
qualified plan permits. 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. You do not necessarily have to
annuitize your Contract to meet the minimum distribution.
7% Guaranteed Minimum Withdrawal Benefit ("SafeGuard 7 Plus"). The following
description is supplemented by some examples in Appendix D that may assist you
in understanding how the calculations are made in certain circumstances.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
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.
The 7% GMWB is not available on a Contract that already has a GMWB (one GMWB
only per Contract) or a Guaranteed Minimum Income Benefit (GMIB). 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 GWB will
not include any Contract Enhancement. 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. In determining the GWB, a
recapture charge associated with any Contract Enhancement will reduce the GWB
below the Contract Value (see Example 1c in Appendix D). The GWB can never be
more than $5 million (including upon "step-up"), 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 7%, the guaranteed amount available may be less than the total premium
payments and the GAWA may be reduced. 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.
Withdrawal charges, Contract Enhancement recapture charges, and Interest Rate
Adjustments, as applicable, are taken into consideration in calculating the
amount of your partial withdrawals pursuant to the 7% GMWB, but these charges or
adjustments are offset by your ability to make free withdrawals under the
Contract.
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 net
55
premium payment or 7% of the increase in the GWB, if the maximum GWB is hit. We
require prior approval for a subsequent premium payment, however, that would
result in your Contract having $1 million of premiums in the aggregate. We also
reserve the right to refuse subsequent premium payments. See Example 3b in
Appendix D to see how the GWB is recalculated when the $5 million maximum is
reached.
If the total of your partial withdrawals made in the current Contract Year is
greater than the GAWA, we will recalculate your GWB and your GAWA may be lower
in the future. In other words, withdrawing more than the GAWA in any Contract
Year could cause the GWB to be reduced by more than the amount of the
withdrawal(s) and even reset to the then current Contract Value, likely reducing
the GAWA, too. Recalculation of the GWB and GAWA may result in reducing or
extending the payout period. Examples 4, 5, and 7 in Appendix D illustrate the
impact of such 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 greater of the GWB prior to the partial withdrawal
less the partial withdrawal or zero.
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 Contract Value after the partial withdrawal,
less any applicable recapture charges remaining after
the partial withdrawal.
For purposes of these calculations, all partial withdrawals are assumed to be
the total amount withdrawn, including any withdrawal charges, recapture charges
and Interest Rate 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.
For certain tax-qualified Contracts to which the 7% GMWB is added on and after
January 17, 2006 (subject to availability), withdrawals greater than the
Guaranteed Annual Withdrawal Amount (GAWA) are allowed, under certain
circumstances, to meet the Contract's required minimum distribution (RMDs) under
the Internal Revenue Code (Code), and the endorsement's guarantees will not be
compromised. Otherwise, the GWB and GAWA could be adversely recalculated, as
described above.
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Required Minimum Distribution Calculations. Notice of an RMD is required
at the time of your withdrawal request, and there is an administrative
form for such notice. The administrative form allows for one time or
systematic withdrawals. Eligible withdrawals that are specified as RMDs
may only be taken based on the value of the Contract to which the
endorsement applies, even where the Code allows for the taking of RMDs for
multiple contracts from a single contract. Initiating and monitoring for
compliance with the RMD requirements is the responsibility of the Owner.
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56
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Under the Code, RMDs are calculated and taken on a calendar year basis.
But with the 7% GMWB, GAWA is based on Contract Years. Because the
intervals for the GAWA and RMDs are different, the endorsement's
guarantees may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of either of the RMD for each of the two
calendar years occurring in that Contract Year and the GAWA for that
Contract Year, then the GWB and GAWA could be adversely recalculated, as
described above. (If your Contract Year is the same as the calendar year,
then the sum of your total partial withdrawals should not exceed the
greater of the RMD and the GAWA.) Below is an example of how this modified
limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating the GMWB in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that the 7% GMWB ultimately suits your needs relative
to your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Step-Up. In the event Contract Value is greater than the GWB, the 7% GMWB allows
the GWB to be reset to Contract Value (a "Step-Up"). Upon election of a Step-Up,
the GMWB charge may be increased, subject to the maximum charges listed above.
With a Step-Up -
--------------
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The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 7% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
The first opportunity for a Step-Up is the fifth Contract Anniversary after the
7% GMWB is added to the Contract.
o For Contracts to which the 7% GMWB was added before
January 17, 2006, Step-Ups are only allowed on or during
the 30-day period following a Contract Anniversary.
A Step-Up is allowed at any time, but there must always be at least five years
between Step-Ups. The GWB can never be more than $5 million with a Step-Up. A
request for Step-Up is processed and effective on the date received in Good
Order. Please consult the representative who helped you purchase your Contract
to be sure if a Step-Up is right for you and about any increase in charges upon
a Step-up. Upon election of a Step-Up, the applicable GMWB charge will be
reflected in your confirmation.
57
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 would become 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).
Termination. The 7% GMWB endorsement terminates subject to a prorated GMWB
Charge assessed for the period since the last monthly charge on the date you
annuitize or surrender the Contract. In surrendering the Contract, 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. The 7% GMWB also
terminates: with the Contract upon your death (unless the Beneficiary who is
your spouse continues the Contract); upon the first date both the GWB and
Contract Value equal zero; or upon conversion, if permitted - whichever occurs
first.
Contract Value Is Zero. If your Contract Value is reduced to zero as the result
of a partial withdrawal, contract charges 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,
so long as the Contract is still in the accumulation phase. The total annual
payment will equal the GAWA, but 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 (assuming you are the
Owner) 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.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
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 to accumulate assets. Please consult your tax and financial advisors on
this and other matters prior to electing the 7% GMWB.
Conversion. You may convert this 7% GMWB to the 5% GMWB With Annual Step-Up
(AutoGuard 5); the 6% GMWB With Annual Step-Up (AutoGuard 6); the For Life GMWB
With Bonus and Annual Step-Up (LifeGuard Freedom GMWB); or the Joint For Life
GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint Option).
Conversion may reduce the dollar amount of your withdrawals available under the
new benefit versus the old benefit because the recalculated GWB under the new
benefit takes into account any negative investment performance under your
Contract. For conversion, the new benefit must be available at the time of
election and you must meet the eligibility requirements for the new benefit.
Conversion is permitted on any Contract Anniversary before December 6, 2009.
Conversion to AutoGuard 5 is allowed only if this 7% GMWB was added to your
Contract before September 6, 2005; conversion to AutoGuard 6 is allowed only if
this 7% GMWB was added to your Contract before June 4, 2007. A request in Good
Order for conversion is due 30 days before a Contract Anniversary for the
conversion to take effect on the Contract Anniversary.
58
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 7% GMWB that are due upon termination of the original endorsement. Since
the Contract Value includes any previously applied Contract Enhancement, we
subtract any applicable recapture charge from the Contract Value to calculate
the new GWB under the new endorsement; therefore, in calculating the new GWB, a
recapture charge associated with any Contract Enhancement will reduce the new
GWB below the Contract Value at conversion. (See Example 1c in Appendix D.)
Regarding your GAWA, a new GAWA is determined according to the rules under the
new endorsement. We will send you the new endorsement. Upon conversion, all
conditions, rules, benefits, charges and limitations of the new optional
withdrawal benefit will apply to you. The charge of the new benefit will be
higher than that currently charged for this 7% GMWB. Conversion is not a right
under the Contract or endorsement. We currently allow conversions, and we may
discontinue doing so at any time in the future. In addition, no more than two
conversions are currently allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your 7% GMWB. Converting to AutoGuard 5 or AutoGuard 6 may be advantageous if
you desire the potential for annual Step-Ups of the GWB for a period of no less
than 12 years rather than Step-Ups every five years. The annual Step-Ups may
result in a higher GWB and, subsequently, a higher GAWA. However, as stated
above, you will be increasing the cost of your GMWB when converting to the new
benefit. You will also be receiving a lower GAWA percentage of 5% for AutoGuard
5, or 6% for AutoGuard 6, instead of the current 7% you are receiving under your
7% GMWB, and this may result in a consistently lower GAWA if the GWB does not
increase upon the Step-Ups.
Converting your 7% GMWB to LifeGuard Freedom GMWB or LifeGuard Freedom GMWB with
Joint Option may be advantageous if you desire the potential for a GWB
adjustment, re-determination of the GAWA%, annual Step-Ups of the GWB to the
highest quarterly Contract Value over the life of the Contract (so long as the
Contract is in the accumulation phase), and the bonus provision that may
increase your GWB if no withdrawals are taken over a certain period, even if the
GWB does not increase upon the Step-Ups. It would also be advantageous if you
desire lifetime income versus a return of premium guarantee. Additionally,
conversion to LifeGuard Freedom GMWB with Joint Option will provide spousal
continuation of the lifetime income feature. However, as noted above, you will
be increasing the cost of your GMWB when converting to the new benefit. You may
also be receiving a lower GAWA percentage under LifeGuard Freedom GMWB or
LifeGuard Freedom GMWB with Joint Option instead of the current 7% you are
receiving under your 7% GMWB. Additionally, the For Life Guarantee is not
effective until the Contract Anniversary on or immediately following the Owner's
(or with joint Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard
Freedom GMWB. For LifeGuard Freedom GMWB with Joint Option, the For Life
Guarantee is not effective until the Contract Anniversary on or immediately
following the youngest Covered Life's attained age of 59 1/2.
Finally, the new GWB upon any conversion of your 7% GMWB would be equal to the
Contract Value at the time of the conversion. As a result, if the GWB in your
current GMWB is higher than your Contract Value, your GWB will decrease upon
conversion. In addition, the new GAWA will be based on the new GWB of the new
benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
Guaranteed Minimum Withdrawal Benefit With 5-Year Step-Up ("SafeGuard Max"). The
following description of this GMWB is supplemented by the examples in Appendix
D, particularly example 2 for the varying benefit percentage and examples 6 and
7 for the Step-Ups. This GMWB guarantees partial withdrawals during the
Contract's accumulation phase (i.e., before the Income Date) until the earlier
of:
o The Owner's (or any joint Owner's) death;
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future
periodic withdrawals.
PLEASE NOTE: The guarantees of this GMWB are subject to the
endorsement's terms, conditions, and limitations that are explained
below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners up to 85 years old (proof of age is required);
may be added to a Contract on the Issue Date or any Contract Anniversary; and
once added cannot be canceled. At least 30 calendar days' prior notice and proof
of age is required for Good Order to add this GMWB to a Contract on a Contract
Anniversary. This GMWB is not available on a Contract that already has a GMWB
(only one GMWB per Contract) or a Guaranteed Minimum Income Benefit (GMIB). We
allow ownership changes of a Contract with this GMWB when the Owner is a legal
entity - to another legal entity or the Annuitant. Otherwise, ownership changes
are not allowed. When the Owner is a legal entity, changing Annuitants is not
allowed. Availability of this
59
GMWB may be subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit cause the GWB and GAWA to be recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA is determined based on the Owner's attained age at the time of
first withdrawal and equals the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. See the GAWA percentage table below.
--------------------------------------------------------------------------
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any Contract
Enhancement.
The GAWA is determined based on the Owner's attained age at the time of
first withdrawal and equals the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. See the GAWA percentage table below.
--------------------------------------------------------------------------
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancements, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-Up),
and the GWB is reduced by each withdrawal.
PLEASE NOTE: Upon the Owner's death, this GMWB might be continued by a spousal
Beneficiary. Please see the "Spousal Continuation" subsection below for more
information.
Withdrawals. The GAWA percentage and the GAWA are determined at the time of the
first withdrawal. The GAWA is equal to the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. The GAWA percentage varies according to age
group and is determined based on the Owner's attained age at the time of the
first withdrawal. If there are joint Owners, the GAWA percentage is based on the
attained age of the oldest joint Owner. (In the examples in Appendix D and
elsewhere in this prospectus we refer to this varying GAWA percentage structure
as the "varying benefit percentage".) The GAWA percentage for each age group is:
Ages GAWA Percentage
----------------------------------
0 - 74 7%
75 - 79 8%
80 - 84 9%
85+ 10%
Withdrawals cause the GWB to be recalculated. Withdrawals may also cause the
GAWA to be recalculated, depending on whether or not the withdrawal, plus all
prior withdrawals in the current Contract Year, is less than or equal to the
GAWA, or for certain tax-qualified Contracts only, the RMD (if greater than the
GAWA). The tables below clarify what happens in either instance. RMD denotes the
required minimum distribution under the Internal Revenue Code for certain
tax-qualified Contracts only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
60
When a withdrawal, plus all prior withdrawals in the current Contract
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Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA is recalculated, equaling the lesser of:
o The GAWA before the withdrawal; Or
o The GWB after the withdrawal.
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You may withdraw the greater of the GAWA or RMD, as applicable, all at once or
throughout the Contract Year. Withdrawing less than the greater of the GAWA or
RMD, as applicable, in a Contract Year does not entitle you to withdraw more
than the greater of the GAWA or RMD, as applicable, in the next Contract Year.
The amount you may withdraw each Contract Year and not cause the GWB and GAWA to
be recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount. The GAWA is also likely to be reduced.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
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The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o The GAWA before the withdrawal; Or
o The GWB after the withdrawal; Or
o The GAWA percentage multiplied by the Contract Value after the
withdrawal less any recapture charge on any Contract
Enhancement.
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Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
If the age of any Owner is incorrectly stated at the time of election of the
GMWB, on the date the misstatement is discovered, the GWB and the GAWA will be
recalculated based on the GAWA percentage applicable at the correct age. Any
future GAWA percentage recalculation will be based on the correct age.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the
endorsement's guarantees may be more susceptible to being compromised.
With tax-qualified Contracts, if the sum of your total partial withdrawals
in a Contract Year exceed the greatest of the RMD for each of the two
calendar years occurring in that Contract Year and the GAWA for that
Contract Year, then the GWB and GAWA could be adversely recalculated, as
described above. (If your Contract Year is the same as the calendar year,
then the sum of your total partial withdrawals should not exceed the
--------------------------------------------------------------------------
61
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greater of the RMD and the GAWA.) Below is an example of how this modified
limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
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The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
If the premium payment is received after the first withdrawal, the GAWA is
also recalculated, increasing by:
o The GAWA percentage multiplied by the subsequent premium
payment net of any applicable premium taxes; Or
o The GAWA percentage multiplied by the increase in the GWB - if
the maximum GWB is hit.
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We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
With a Step-Up -
--------------
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The GWB equals Contract Value (subject to a $5 million maximum).
If the Step-Up occurs after the first withdrawal, the GAWA is
recalculated, equaling the greater of:
o The GAWA percentage multiplied by the new GWB, Or
o The GAWA prior to Step-Up.
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The first opportunity for a Step-Up is the fifth Contract Anniversary after this
GMWB is added to the Contract. Thereafter, a Step-Up is allowed at any time, but
there must always be at least five years between Step-Ups. The GWB can never be
more than $5 million with a Step-Up. A request for Step-Up is processed and
effective on the date received in Good Order. Please consult the
62
representative who helped you purchase your Contract to be sure if a Step-Up is
right for you and about any increase in charges upon a Step-Up. Upon election of
a Step-Up, the applicable GMWB charge will be reflected in your confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners) while the Contract is still in force, this GMWB terminates without
value.
Contract Value Is Zero. If your Contract Value is reduced to zero as the result
of a partial withdrawal, contract charges or poor fund performance and the GWB
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, so long as the Contract is
still in the accumulation phase. The total annual payment will equal the GAWA,
but will not exceed the current GWB. If the GAWA percentage has not yet been
determined, it will be set at the GAWA percentage corresponding to the Owner's
(or oldest joint Owner's) attained age at the time the Contract Value is reduced
to zero and the GAWA will be equal to the GAWA percentage multiplied by the GWB.
After each payment when the Contract Value is zero -
--------------------------------------------------
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The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA is recalculated, equaling the lesser of:
o The GAWA before the payment; Or
o The GWB after the payment.
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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, no death benefit is payable.
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
this GMWB to the Contract within the 30 days prior to any Contract Anniversary
following the continuation date of the original Contract's Issue Date. This GMWB
would become effective on the Contract Anniversary following receipt of the
request in Good Order.
If the spouse continues the Contract and this endorsement already applies to the
Contract, the GMWB will continue and no adjustment will be made to the GWB or
the GAWA at the time of continuation. If the GAWA percentage has not yet been
determined, it will be set at the GAWA percentage corresponding to the Owner's
(or oldest joint Owner's) attained age on the continuation date and the GAWA
will be equal to the GAWA percentage multiplied by the GWB. 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).
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
In surrendering your Contract, you will receive
the Contract Value less any applicable charges and
adjustments and not the GWB or the GAWA you would
have received under this GMWB.
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB;
o The first date both the GWB and the Contract Value
equals zero; or
o The date all obligations under this GMWB are satisfied
after the Contract has been terminated.
Annuitization.
63
On the Latest Income Date, the Owner may choose the following income option
instead of one of the other income options listed in the 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 (assuming you are the
Owner) before the payments have been completed, the remaining payments
will be made to the Beneficiary, as scheduled.
If the GAWA percentage has not yet been determined, the GAWA percentage
will be based on the Owner's (or oldest joint Owner's) attained age at the
time of election of this option and the GAWA will be equal to the GAWA
percentage multiplied by the GWB. The GAWA percentage will not change
after election of this option.
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.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
5% Guaranteed Minimum Withdrawal Benefit With Annual Step-Up ("AutoGuard 5").
The following description is supplemented by the examples in Appendix D that may
assist you in understanding how 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 5%
GMWB With Annual Step-Up 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. The 5% GMWB With Annual Step-Up is not available on a
Contract that already has a GMWB (one GMWB only per Contract) or a Guaranteed
Minimum Income Benefit (GMIB). We may further limit the availability of this
optional endorsement. Once selected, the 5% GMWB With Annual Step-Up cannot be
canceled. If you select the 5% GMWB With Annual Step-Up when you purchase your
Contract, your premium payment net of any applicable taxes will be used as the
basis for determining the GWB. The GWB will not include any Contract
Enhancement. The 5% GMWB With Annual Step-Up may also be selected after the
Issue Date within 30 days before any Contract Anniversary, and the endorsement
will take effect on the Contract Anniversary if your request is in Good Order.
If you select the 5% GMWB With Annual Step-Up 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.
In determining the GWB, a recapture charge associated with any Contract
Enhancement will reduce the GWB below the Contract Value (see Example 1c in
Appendix D). The GWB can never be more than $5 million (including upon
"step-up"), 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, except for
certain tax-qualified Contracts (as explained below). Upon selection, the GAWA
is equal to 5% of the GWB. The GAWA will not be reduced if partial withdrawals
taken within any one Contract Year do not exceed 5%. However, withdrawals are
not cumulative. If you do not take 5% in one Contract Year, you may not take
more than 5% the next Contract Year. If you withdraw more than 5%, the
guaranteed amount available may be less than the total premium payments and the
GAWA will likely be reduced. 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.
Withdrawal charges, Contract Enhancement recapture charges, and Interest Rate
Adjustments, as applicable, are taken into consideration in calculating the
amount of your partial withdrawals pursuant to the 5% GMWB With Annual Step-Up,
but these charges or adjustments are offset by your ability to make free
withdrawals under the Contract.
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 5% of the net
premium payment or 5% of the increase in the GWB, if the maximum GWB is reached.
We require prior approval for a subsequent premium payment, however, that would
result in your Contract having $1 million of premiums in the aggregate. We also
reserve the
64
right to refuse subsequent premium payments. See Example 3b in Appendix D to see
how the GWB is recalculated when the $5 million maximum is reached.
If the total of your partial withdrawals made in the current Contract Year is
greater than the GAWA, we will recalculate your GWB and your GAWA will likely be
lower in the future. In other words, withdrawing more than the GAWA in any
Contract Year could cause the GWB to be reduced by more than the amount of the
withdrawal(s), likely reducing the GAWA, too. Recalculation of the GWB and GAWA
may result in reducing or extending the payout period. Examples 4, 5, and 7 in
Appendix D illustrate the impact of such withdrawals.
For certain tax-qualified Contracts, this GMWB allows for withdrawals greater
than GAWA to meet the Contract's required minimum distributions (RMDs) under the
Internal Revenue Code (Code) without compromising the endorsement's guarantees.
Examples 4, 5, and 7 in Appendix D supplement this description. Because the
intervals for the GAWA and RMDs are different, namely Contract Years versus
calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see
"Required Minimum Distribution Calculations" below for more information.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is less than or equal to the GAWA or RMD, as applicable, the GWB
is equal to the greater of:
o the GWB prior to the partial withdrawal less the partial
withdrawal; or
o zero.
If all your partial withdrawals made in the current Contract Year are less than
or equal to the GAWA or RMD, as applicable, 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 or RMD, as applicable, and this
endorsement was added to your Contract on or after December 3, 2007, the GWB is
equal to the greater of:
o the GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any portion of the partial
withdrawal not defined as an Excess Withdrawal (see
below), then reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal; or
o zero.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA or RMD, as applicable, and this
endorsement was added to your Contract on or after December 3, 2007, the GAWA is
equal to the lesser of:
o the GAWA prior to the partial withdrawal reduced in the
same proportion that the Contract Value is reduced by
the Excess Withdrawal, or
o the GWB after the partial withdrawal.
The Excess Withdrawal is defined to be the lesser of:
o the total amount of the current partial withdrawal, or
o the amount by which the cumulative partial withdrawals
for the current Contract Year exceeds the greater of the
GAWA or the RMD, as applicable.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA or RMD, as applicable, and this
endorsement was added to your Contract before December 3, 2007, the GWB is equal
to the lesser of:
o the Contract Value after the partial withdrawal, less
any applicable recapture
65
charges remaining after the partial withdrawal; or
o the greater of the GWB prior to the partial withdrawal
less the partial withdrawal or zero.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA or RMD, as applicable, and this
endorsement was added to your Contract before December 3, 2007, 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 5% of the Contract Value after the partial withdrawal,
less any applicable recapture charges remaining after
the withdrawal.
For purposes of all of these calculations, all partial withdrawals are assumed
to be the total amount withdrawn, including any withdrawal charges, recapture
charges and Interest Rate Adjustments.
Withdrawals made under the guarantee of this endorsement are considered to be
the same as any other partial withdrawals, including systematic 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. Withdrawals under the guarantee of this endorsement
are also treated the same for federal income tax purposes. For more information
about tax qualified and non-qualified Contracts, please see "TAXES" beginning on
page 172.
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Required Minimum Distribution Calculations. Notice of an RMD is required
at the time of your withdrawal request, and there is an administrative
form for such notice. The administrative form allows for one time or
systematic withdrawals. Eligible withdrawals that are specified as RMDs
may only be taken based on the value of the Contract to which the
endorsement applies, even where the Code allows for the taking of RMDs for
multiple contracts from a single contract. Initiating and monitoring for
compliance with the RMD requirements is the responsibility of the Owner.
Under the Code, RMDs are calculated and taken on a calendar year basis.
But with the 5% GMWB With Annual Step-Up, GAWA is based on Contract Years.
Because the intervals for the GAWA and RMDs are different, the
endorsement's guarantees may be more susceptible to being compromised.
With tax-qualified Contracts, if the sum of your total partial withdrawals
in a Contract Year exceed the greatest of either of the RMD for each of
the two calendar years occurring in that Contract Year and the GAWA for
that Contract Year, then the GWB and GAWA could be adversely recalculated,
as described above. (If your Contract Year is the same as the calendar
year, then the sum of your total partial withdrawals should not exceed the
greater of the RMD and the GAWA.) Below is an example of how this modified
limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMD requirements for calendar years 2007 and 2008 are $14
and $16, respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD requirement for either of the two calendar years
occurring in that Contract Year, the GWB and GAWA would not be
adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
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66
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Examples that are relevant specific to tax-qualified Contracts,
illustrating the GMWB in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that the 5% GMWB With Annual Step-Up ultimately suits
your needs relative to your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Step-Up. Step-ups with the 5% GMWB With Annual Step-Up reset your GWB to the
greater of Contract Value or the GWB before step-up, and GAWA becomes the
greater of 5% of the new GWB or GAWA before step-up. Step-ups occur
automatically upon each of the first 12 Contract Anniversaries from the
endorsement's effective date, then on or after the 13th Contract Anniversary, at
any time upon your request, so long as there is at least one year between
step-ups. Upon election of a Step-Up, the GMWB charge may be increased, subject
to the maximum charges listed above. The request will be processed and effective
on the day we receive the request in Good Order. Before deciding to "step-up,"
please consult the representative who helped you purchase your Contract to be
sure if a Step-Up is right for you and about any increase in charges upon a
Step-up. Upon election of a Step-Up, the applicable GMWB charge will be
reflected in your confirmation.
Spousal Continuation. If you die before annuitizing a Contract with the 5% GMWB
With Annual Step-Up, the Contract's death benefit is still payable when Contract
Value is greater than zero. Alternatively, the Contract allows the Beneficiary
who is your spouse to continue it, retaining all rights previously held by the
Owner. If the spouse continues the Contract and the 5% GMWB With Annual Step-Up
endorsement already applies to the Contract, the 5% GMWB With Annual Step-Up
will continue and no adjustment will be made to the GWB or the GAWA at the time
of continuation. Step-ups will continue automatically or as permitted (as
described above), and Contract Anniversaries will continue to be based on the
anniversary of the original Contract's Issue Date. Upon spousal continuation of
a Contract without the 5% GMWB With Annual Step-Up, if the 5% GMWB With Annual
Step-Up is available at the time, the Beneficiary may request to add this
endorsement within 30 days before any Contract Anniversary, and the endorsement
will take effect on the Contract Anniversary if the request is made in Good
Order.
Termination. The 5% GMWB With Annual Step-Up endorsement terminates subject to a
prorated GMWB Charge assessed for the period since the last monthly charge on
the date you annuitize or surrender the Contract. In surrendering the Contract,
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 5% GMWB With
Annual Step-Up. The 5% GMWB With Annual Step-Up also terminates with the
Contract upon your death (unless the Beneficiary who is your spouse continues
the Contract); upon the first date both the GWB and Contract Value equal zero;
or upon conversion, if available - whichever occurs first.
Contract Value Is Zero. If your Contract Value is reduced to zero as the result
of a partial withdrawal, contract charges or poor fund performance and the GWB
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, so long as the Contract is
still in the accumulation phase. The total annual payment will equal the GAWA,
but will not exceed the current GWB. The payments continue until the GWB is
reduced to zero.
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 (assuming you are the
Owner) before the payments have been completed, the remaining payments
will be made to the Beneficiary, as scheduled.
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.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing
67
to annuitize your Contract after having purchased a GMWB; or when the Latest
Income Date is approaching and you are thinking about electing or have elected a
GMWB.
Effect of GMWB on Tax Deferral. The purchase of the 5% GMWB With Annual Step-Up
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 to accumulate assets. Please consult your tax and
financial advisors on this and other matters prior to electing the 5% GMWB With
Annual Step-Up.
Conversion. You may convert this 5% GMWB With Annual Step-Up to the 6% GMWB With
Annual Step-Up (AutoGuard 6); the For Life GMWB With Bonus and Annual Step-Up
(LifeGuard Freedom GMWB); or the Joint For Life GMWB With Bonus and Annual
Step-Up (LifeGuard Freedom GMWB with Joint Option). Conversion may reduce the
dollar amount of your withdrawals available under the new benefit versus the old
benefit because the recalculated GWB under the new benefit takes into account
any negative investment performance under your Contract. For conversion, the new
benefit must be available at the time of election and you must meet the
eligibility requirements for the new benefit. Conversion is permitted on any
Contract Anniversary before December 6, 2009. A request in Good Order for
conversion is due 30 days before a Contract Anniversary for the conversion to
take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 5% GMWB With Annual Step-Up that are due upon termination of the
original endorsement. Since the Contract Value includes any previously applied
Contract Enhancement, we subtract any applicable recapture charge from the
Contract Value to calculate the new GWB under the new endorsement; therefore, in
calculating the new GWB, a recapture charge associated with any Contract
Enhancement will reduce the new GWB below the Contract Value at conversion. (See
Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is determined
according to the rules under the new endorsement. We will send you the new
endorsement. Upon conversion, all conditions, rules, benefits, charges and
limitations of the new optional withdrawal benefit will apply to you. The charge
of the new benefit will be higher than that currently charged for this 5% GMWB
With Annual Step-Up. Conversion is not a right under the Contract or
endorsement. We currently allow conversions, and we may discontinue doing so at
any time in the future. In addition, no more than two conversions are currently
allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your 5% GMWB With Annual Step-Up. Converting to AutoGuard 6 may be advantageous
if you desire a higher GAWA percentage of 6%, which is allowed under AutoGuard
6, as opposed to your current GAWA percentage of 5%. However, as stated above,
you will be increasing the cost of your GMWB when converting to the new benefit.
Converting your 5% GMWB With Annual Step-Up to LifeGuard Freedom GMWB or
LifeGuard Freedom GMWB with Joint Option may be advantageous if you desire the
potential for a GWB adjustment, re-determination of the GAWA%, annual Step-Ups
of the GWB to the highest quarterly Contract Value over the life of the Contract
(so long as the Contract is in the accumulation phase), and the bonus provision
that may increase your GWB if no withdrawals are taken over a certain period,
even if the GWB does not increase upon the Step-Ups. It would also be
advantageous if you desire lifetime income versus a return of premium guarantee.
Additionally, conversion to LifeGuard Freedom GMWB with Joint Option will
provide spousal continuation of the lifetime income feature. However, as noted
above, you will be increasing the cost of your GMWB when converting to the new
benefit. Additionally, the For Life Guarantee is not effective until the
Contract Anniversary on or immediately following the Owner's (or with joint
Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard Freedom GMWB.
For LifeGuard Freedom GMWB with Joint Option, the For Life Guarantee is not
effective until the Contract Anniversary on or immediately following the
youngest Covered Life's attained age of 59 1/2. Because the GAWA percentage
under LifeGuard Freedom GMWB and LifeGuard Freedom GMWB with Joint Option varies
according to age group (the younger the age group, the lower the GAWA
percentage) and is determined based on the attained age at the time of the first
withdrawal, your GAWA percentage may increase or decrease, depending on the age
at which you convert and depending on when you take your first withdrawal after
conversion.
Finally, the new GWB upon any conversion of your 5% GMWB With Annual Step-Up
would be equal to the Contract Value at the time of the conversion. As a result,
if the GWB in your current GMWB is higher than your Contract Value, your GWB
will decrease upon conversion. In addition, the new GAWA will be based on the
new GWB of the new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
6% Guaranteed Minimum Withdrawal Benefit With Annual Step-Up ("AutoGuard 6").
The following description is supplemented by the examples in Appendix D that may
assist you in understanding how 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 6%
GMWB With Annual Step-Up 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
68
defined below), regardless of your Contract Value. The 6% GMWB With Annual
Step-Up is not available on a Contract that already has a GMWB (one GMWB only
per Contract) or a Guaranteed Minimum Income Benefit (GMIB). We may further
limit the availability of this optional endorsement. Once selected, the 6% GMWB
With Annual Step-Up cannot be canceled. If you select the 6% GMWB With Annual
Step-Up when you purchase your Contract, your premium payment net of any
applicable taxes will be used as the basis for determining the GWB. The GWB will
not include any Contract Enhancement. The 6% GMWB With Annual Step-Up may also
be selected after the Issue Date within 30 days before any Contract Anniversary,
and the endorsement will take effect on the Contract Anniversary if your request
is in Good Order. If you select the 6% GMWB With Annual Step-Up 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. In determining the GWB, a recapture charge associated with
any Contract Enhancement will reduce the GWB below the Contract Value (see
Example 1c in Appendix D). The GWB can never be more than $5 million (including
upon "step-up"), 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, except for
certain tax-qualified Contracts (as explained below). Upon selection, the GAWA
is equal to 6% of the GWB. The GAWA will not be reduced if partial withdrawals
taken within any one Contract Year do not exceed 6%. However, withdrawals are
not cumulative. If you do not take 6% in one Contract Year, you may not take
more than 6% the next Contract Year. If you withdraw more than 6%, the
guaranteed amount available may be less than the total premium payments and the
GAWA will likely be reduced. 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.
Withdrawal charges, Contract Enhancement recapture charges, and Interest Rate
Adjustments, as applicable, are taken into consideration in calculating the
amount of your partial withdrawals pursuant to the 6% GMWB With Annual Step-Up,
but these charges or adjustments are offset by your ability to make free
withdrawals under the Contract.
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 6% of the net
premium payment or 6% of the increase in the GWB, if the maximum GWB is reached.
We require prior approval for a subsequent premium payment, however, that would
result in your Contract having $1 million of premiums in the aggregate. We also
reserve the right to refuse subsequent premium payments. See Example 3b in
Appendix D to see how the GWB is recalculated when the $5 million maximum is
reached.
If the total of your partial withdrawals made in the current Contract Year is
greater than the GAWA, we will recalculate your GWB and your GAWA will likely be
lower in the future. In other words, withdrawing more than the GAWA in any
Contract Year could cause the GWB to be reduced by more than the amount of the
withdrawal(s), likely reducing the GAWA, too. Recalculation of the GWB and GAWA
may result in reducing or extending the payout period. Examples 4, 5, and 7 in
Appendix D illustrate the impact of such withdrawals.
For certain tax-qualified Contracts, this GMWB allows for withdrawals greater
than GAWA to meet the Contract's required minimum distributions (RMDs) under the
Internal Revenue Code (Code) without compromising the endorsement's guarantees.
Examples 4, 5, and 7 in Appendix D supplement this description. Because the
intervals for the GAWA and RMDs are different, namely Contract Years versus
calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see
"Required Minimum Distribution Calculations" below for more information.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is less than or equal to the GAWA or RMD, as applicable, the GWB
is equal to the greater of:
o the GWB prior to the partial withdrawal less the partial
withdrawal; or
o zero.
If all your partial withdrawals made in the current Contract Year are less than
or equal to the GAWA or RMD, as applicable, 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 or RMD, as applicable, and this
endorsement was added to your Contract on or after December 3, 2007, the GWB is
equal to the greater of:
o the GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any
69
portion of the partial withdrawal not defined as an
Excess Withdrawal (see below), then reduced in the same
proportion that the Contract Value is reduced by the
Excess Withdrawal; or
o zero.
If the partial withdrawal plus all prior partial
withdrawals made in the current Contract Year is greater
than the GAWA or RMD, as applicable, and this
endorsement was added to your Contract on or after
December 3, 2007, the GAWA is equal to the lesser of:
o the GAWA prior to the partial withdrawal reduced in the
same proportion that the Contract Value is reduced by
the Excess Withdrawal, or
o the GWB after the partial withdrawal.
The Excess Withdrawal is defined to be the lesser of:
o the total amount of the current partial withdrawal, or
o the amount by which the cumulative partial withdrawals
for the current Contract Year exceeds the greater of the
GAWA or the RMD, as applicable.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA or RMD, as applicable, and this
endorsement was added to your Contract before December 3, 2007, 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 greater of the GWB prior to the partial withdrawal
less the partial withdrawal or zero.
If the partial withdrawal plus all prior partial withdrawals made in the current
Contract Year is greater than the GAWA or RMD, as applicable, and this
endorsement was added to your Contract before December 3, 2007, 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 6% of the Contract Value after the partial withdrawal,
less any applicable recapture charges remaining after
the withdrawal.
For purposes of these calculations, all partial withdrawals are assumed to be
the total amount withdrawn, including any withdrawal charges, recapture charges
and Interest Rate Adjustments.
Withdrawals made under the guarantee of this endorsement are considered to be
the same as any other partial withdrawals, including systematic 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. Withdrawals under the guarantee of this endorsement
are also treated the same for federal income tax purposes. For more information
about tax-qualified and non-qualified Contracts, please see "TAXES" beginning on
page 172.
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Required Minimum Distribution Calculations. Notice of an RMD is required
at the time of your withdrawal request, and there is an administrative
form for such notice. The administrative form allows for one time or
systematic withdrawals. Eligible withdrawals that are specified as RMDs
may only be taken based on the value of the Contract to which the
endorsement applies, even where the Code allows for the taking of RMDs for
multiple contracts from a single contract. Initiating and monitoring for
compliance with the RMD requirements is the responsibility of the Owner.
Under the Code, RMDs are calculated and taken on a calendar year basis.
But with the 6% GMWB With Annual Step-Up, GAWA is based on Contract Years.
Because the intervals for the GAWA and RMDs are different, the
endorsement's guarantees may be more susceptible to being compromised.
With tax-qualified Contracts, if the sum of your total partial withdrawals
in a Contract Year exceed the greatest of either of the RMD for each of
the
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70
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two calendar years occurring in that Contract Year and the GAWA for that
Contract Year, then the GWB and GAWA could be adversely recalculated, as
described above. (If your Contract Year is the same as the calendar year,
then the sum of your total partial withdrawals should not exceed the
greater of the RMD and the GAWA.) Below is an example of how this modified
limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMD requirements for calendar years 2007 and 2008 are $14
and $16, respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD requirement for either of the two calendar years
occurring in that Contract Year, the GWB and GAWA would not be
adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant specific to tax-qualified Contracts,
illustrating the GMWB in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who helped you
purchase your tax-qualified Contract, and your tax adviser, to be sure
that the 6% GMWB With Annual Step-Up ultimately suits your needs relative
to your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Step-Up. Step-Ups with the 6% GMWB With Annual Step-Up reset your GWB to the
greater of Contract Value or the GWB before step-up, and GAWA becomes the
greater of 6% of the new GWB or GAWA before step-up. Step-Ups occur
automatically upon each of the first 12 Contract Anniversaries from the
endorsement's effective date, then on or after the 13th Contract Anniversary, at
any time upon your request, so long as there is at least one year between
step-ups. Upon election of a Step-Up, the GMWB charge may be increased, subject
to the maximum charges listed above. In addition, the GWB can never be more than
$5 million with a Step-Up. The request will be processed and effective on the
day we receive the request in Good Order. Before deciding to "step-up," please
consult the representative who helped you purchase your Contract to be sure if a
Step-Up is right for you and about any increase in charges upon a Step-Up. Upon
election of a Step-Up, the applicable GMWB charge will be reflected in your
confirmation.
Spousal Continuation. If you die before annuitizing a Contract with the 6% GMWB
With Annual Step-Up, the Contract's death benefit is still payable when Contract
Value is greater than zero. Alternatively, the Contract allows the Beneficiary
who is your spouse to continue it, retaining all rights previously held by the
Owner. If the spouse continues the Contract and the 6% GMWB With Annual Step-Up
endorsement already applies to the Contract, the 6% GMWB With Annual Step-Up
will continue and no adjustment will be made to the GWB or the GAWA at the time
of continuation. Step-Ups will continue automatically or as permitted (as
described above), and Contract Anniversaries will continue to be based on the
anniversary of the original Contract's Issue Date. Upon spousal continuation of
a Contract without the 6% GMWB With Annual Step-Up, if the 6% GMWB With Annual
Step-Up is available at the time, the Beneficiary may request to add this
endorsement within 30 days before any Contract Anniversary, and the endorsement
will take effect on the Contract Anniversary if the request is made in Good
Order.
Termination. The 6% GMWB With Annual Step-Up endorsement terminates subject to a
prorated GMWB Charge assessed for the period since the last monthly charge on
the date you annuitize or surrender the Contract. In surrendering the Contract,
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 6% GMWB With
Annual Step-Up. The 6% GMWB With Annual Step-Up also terminates: with the
Contract upon your death (unless the Beneficiary who is your spouse continues
the Contract); upon the first date both the GWB and Contract Value equal zero;
or upon conversion, if permitted - whichever occurs first.
71
Contract Value Is Zero. If your Contract Value is reduced to zero as the result
of a partial withdrawal, contract charges or poor fund performance and the GWB
is greater than zero, the GWB will be paid automatically to you on a periodic
basis elected by you, which will be no less frequently than annually, so long as
the Contract is still in the accumulation phase. The total annual payment will
equal the GAWA, but will not exceed the current GWB. The payments continue until
the GWB is reduced to zero.
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 (assuming you are the
Owner) before the payments have been completed, the remaining payments
will be made to the Beneficiary, as scheduled.
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.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. The purchase of the 6% GMWB With Annual Step-Up
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 6% GMWB With Annual Step-Up.
Conversion. You may convert this 6% GMWB With Annual Step-Up to the For Life
GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB) or the Joint For
Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint
Option). Conversion may reduce the dollar amount of your withdrawals available
under the new benefit versus the old benefit because the recalculated GWB under
the new benefit takes into account any negative investment performance under
your Contract. For conversion, the new benefit must be available at the time of
election and you must meet the eligibility requirements for the new benefit.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 6% GMWB With Annual Step-Up that are due upon termination of the
original endorsement. Since the Contract Value includes any previously applied
Contract Enhancement, we subtract any applicable recapture charge from the
Contract Value to calculate the new GWB under the new endorsement; therefore, in
calculating the new GWB, a recapture charge associated with any Contract
Enhancement will reduce the new GWB below the Contract Value at conversion. (See
Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is determined
according to the rules under the new endorsement. We will send you the new
endorsement. Upon conversion, all conditions, rules, benefits, charges and
limitations of the new optional withdrawal benefit will apply to you. The charge
of the new benefit will be higher than that currently charged for this 6% GMWB
With Annual Step-Up. Conversion is not a right under the Contract or
endorsement. We currently allow conversions, and we may discontinue doing so at
any time in the future. In addition, no more than two conversions are currently
allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your 6% GMWB With Annual Step-Up. Converting your 6% GMWB With Annual Step-Up to
LifeGuard Freedom GMWB or LifeGuard Freedom GMWB with Joint Option may be
advantageous if you desire the potential for a GWB adjustment, re-determination
of the GAWA%, annual Step-Ups of the GWB to the highest quarterly Contract Value
over the life of the Contract (so long as the Contract is in the accumulation
phase), and the bonus provision that may increase your GWB if no withdrawals are
taken over a certain period, even if the GWB does not increase upon the
Step-Ups. It would also be advantageous if you desire lifetime income versus a
return of premium guarantee. Additionally, conversion to LifeGuard Freedom GMWB
with Joint Option will provide spousal continuation of the lifetime income
feature.
72
However, as noted above, you will be increasing the cost of your GMWB when
converting to the new benefit. Additionally, the For Life Guarantee is not
effective until the Contract Anniversary on or immediately following the Owner's
(or with joint Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard
Freedom GMWB. For LifeGuard Freedom GMWB with Joint Option, the For Life
Guarantee is not effective until the Contract Anniversary on or immediately
following the youngest Covered Life's attained age of 59 1/2. Depending on the
age at which you convert, you may also decrease your GAWA percentage and GAWA.
Because the GAWA percentage under LifeGuard Freedom GMWB and LifeGuard Freedom
GMWB with Joint Option varies according to age group (the younger the age group,
the lower the GAWA percentage) and is determined based on the attained age at
the time of the first withdrawal, your GAWA percentage may increase or decrease,
depending on the age at which you convert and depending on when you take your
first withdrawal after conversion.
Finally, the new GWB upon any conversion of your 6% GMWB With Annual Step-Up
would be equal to the Contract Value at the time of the conversion. As a result,
if the GWB in your current GMWB is higher than your Contract Value, your GWB
will decrease upon conversion. In addition, the new GAWA will be based on the
new GWB of the new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
5% Guaranteed Minimum Withdrawal Benefit Without Step-Up ("MarketGuard 5"). The
following description is supplemented by some examples in Appendix D that may
assist you in understanding how calculations are made in certain circumstances.
PLEASE NOTE: EFFECTIVE OCTOBER 6, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
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 5%
GMWB Without Step-Up 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. The 5% GMWB Without Step-Up is not available on a Contract that
already has a GMWB (one GMWB only per Contract) or a Guaranteed Minimum Income
Benefit (GMIB). We may further limit the availability of this optional
endorsement. Once selected, the 5% GMWB Without Step-Up cannot be canceled. If
you select the 5% GMWB Without Step-Up when you purchase your Contract, your
premium payment net of any applicable taxes will be used as the basis for
determining the GWB. The GWB will not include any Contract Enhancement. The 5%
GMWB Without Step-Up may also be selected after the Issue Date within 30 days
before any Contract Anniversary, and the endorsement will take effect on the
Contract Anniversary if your request is in Good Order. If you select the 5% GMWB
Without Step-Up 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. In determining the GWB, a
recapture charge associated with any Contract Enhancement will reduce the GWB
below the Contract Value (see Example 1c in Appendix D). 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, except for
certain tax-qualified Contracts (see below). Upon selection, the GAWA is equal
to 5% of the GWB. The GAWA will not be reduced if partial withdrawals taken
within any one Contract Year do not exceed 5%. However, withdrawals are not
cumulative. If you do not take 5% in one Contract Year, you may not take more
than 5% the next Contract Year. If you withdraw more than 5%, the guaranteed
amount available may be less than the total premium payments and the GAWA may be
reduced. 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.
Withdrawal charges, Contract Enhancement recapture charges, and Interest Rate
Adjustments, as applicable, are taken into consideration in calculating the
amount of your partial withdrawals pursuant to the 5% GMWB Without Step-Up, but
these charges or adjustments are offset by your ability to make free withdrawals
under the Contract.
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 5% of the net
premium payment or 5% of the increase in the GWB, if the maximum GWB is reached.
We require prior approval for a subsequent premium payment, however, that would
result in your Contract having $1 million of premiums in the aggregate. We also
reserve the right to refuse subsequent premium payments. See Example 3b in
Appendix D to see how the GWB is recalculated when the $5 million maximum is
reached.
If the total of your partial withdrawals made in the current Contract Year is
greater than the GAWA, we will recalculate your GWB and your GAWA may be lower
in the future. In other words, withdrawing more than the GAWA in any Contract
Year could cause the GWB to be reduced by more than the amount of the
withdrawal(s) and even reset to the then current Contract
73
Value, likely reducing the GAWA, too. Recalculation of the GWB and GAWA may
result in reducing or extending the payout period. Examples 4, 5, and 7 in
Appendix D illustrate the impact of such 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 greater of the GWB prior to the partial withdrawal
less the partial withdrawal or zero.
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 5% of the Contract Value after the partial withdrawal,
less any applicable recapture charges remaining after
the withdrawal.
For purposes of these calculations, all partial withdrawals are assumed to be
the total amount withdrawn, including any withdrawal charges, recapture charges
and Interest Rate Adjustments.
Withdrawals made under the guarantee of this endorsement are considered to be
the same as any other partial withdrawals, including systematic 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. Withdrawals under the guarantee of this endorsement
are also treated the same for federal income tax purposes. For more information
about tax qualified and non-qualified Contracts, please see "TAXES" beginning on
page 172.
For certain tax-qualified Contracts, the 5% GMWB Without Step-Up allows for
withdrawals greater than GAWA to meet the required minimum distribution (RMDs)
under the Internal Revenue Code (Code) without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
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Required Minimum Distribution Calculations. Notice of an RMD is required
at the time of your withdrawal request, and there is an administrative
form for such notice. The administrative form allows for one time or
systematic withdrawals. Eligible withdrawals that are specified as RMDs
may only be taken based on the value of the Contract to which the
endorsement applies, even where the Code allows for the taking of RMDs for
multiple contracts from a single contract. Initiating and monitoring for
compliance with the RMD requirements is the responsibility of the Owner.
Under the Code, RMDs are calculated and taken on a calendar year basis.
But with the 5% GMWB Without Step-Up, GAWA is based on Contract Years.
Because the intervals for the GAWA and RMDs are different, the
endorsement's guarantees may be more susceptible to being compromised.
With tax-qualified Contracts, if the sum of your total partial withdrawals
in a Contract Year exceed the greatest of either of the RMD for each of
the two calendar years occurring in that Contract Year and the GAWA for
that Contract Year, then the GWB and GAWA could be adversely recalculated,
as described above. (If your Contract Year is the same as the calendar
year, then the sum of your total partial withdrawals should not exceed the
greater of the RMD and the GAWA.)
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74
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Below is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMD requirements for calendar years 2007 and 2008 are $14
and $16, respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD requirement for either of the two calendar years
occurring in that Contract Year, the GWB and GAWA would not be
adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating the GMWB in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that the 5% GMWB Without Step-Up ultimately suits your
needs relative to your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Spousal Continuation. If you die before annuitizing a Contract with the 5% GMWB
Without Step-Up, the Contract's death benefit is still payable when Contract
Value is greater than zero. Alternatively, the Contract allows the Beneficiary
who is your spouse to continue it, retaining all rights previously held by the
Owner. If the spouse continues the Contract and the 5% GMWB Without Step-Up
endorsement already applies to the Contract, the 5% GMWB Without Step-Up will
continue and no adjustment will be made to the GWB or the GAWA at the time of
continuation. Contract Anniversaries will continue to be based on the
anniversary of the original Contract's Issue Date. Upon spousal continuation of
a Contract without the 5% GMWB Without Step-Up, if the 5% GMWB Without Step-Up
is available at the time, the Beneficiary may request to add this endorsement
within 30 days before any Contract Anniversary, and the endorsement will take
effect on the Contract Anniversary if the request is made in Good Order.
Termination. The 5% GMWB Without Step-Up endorsement terminates subject to a
prorated GMWB Charge assessed for the period since the last monthly charge on
the date you annuitize or surrender the Contract. In surrendering the Contract,
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 5% GMWB Without
Step-Up. The 5% GMWB Without Step-Up also terminates: with the Contract upon
your death (unless the Beneficiary who is your spouse continues the Contract);
upon the first date both the GWB and Contract Value equal zero; or upon
conversion, if permitted - whichever occurs first.
Contract Value Is Zero. If your Contract Value is reduced to zero as the result
of a partial withdrawal, contract charges or poor fund performance and the GWB
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, so long as the Contract is
still in the accumulation phase. The total annual payment will equal the GAWA,
but will not exceed the current GWB. The payments continue until the GWB is
reduced to zero.
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:
75
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 (assuming you are the
Annuitant) before the payments have been completed, the remaining payments
will be made to the Beneficiary, as scheduled.
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.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. The purchase of the 5% GMWB Without Step-Up 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 to accumulate assets. Please consult your tax and financial
advisors on this and other matters prior to electing the 5% GMWB Without
Step-Up.
Conversion. You may convert this 5% GMWB Without Step-Up to the Guaranteed
Minimum Withdrawal Benefit With 5-Year Step-Up (SafeGuard Max); the 5% GMWB With
Annual Step-Up (AutoGuard 5); the 6% GMWB With Annual Step-Up (AutoGuard 6); the
For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB); or the
Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with
Joint Option). Conversion may reduce the dollar amount of your withdrawals
available under the new benefit versus the old benefit because the recalculated
GWB under the new benefit takes into account any negative investment performance
under your Contract. For conversion, the new benefit must be available at the
time of election and you must meet the eligibility requirements for the new
benefit. Conversion is permitted on any Contract Anniversary before December 6,
2009. A request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 5% GMWB Without Step-Up that are due upon termination of the original
endorsement. Since the Contract Value includes any previously applied Contract
Enhancement, we subtract any applicable recapture charge from the Contract Value
to calculate the new GWB under the new endorsement; therefore, in calculating
the new GWB, a recapture charge associated with any Contract Enhancement will
reduce the new GWB below the Contract Value at conversion. (See Example 1c in
Appendix D.) Regarding your GAWA, a new GAWA is determined according to the
rules under the new endorsement. We will send you the new endorsement. Upon
conversion, all conditions, rules, benefits, charges and limitations of the new
optional withdrawal benefit will apply to you. The charge of the new benefit
will be higher than that currently charged for this 5% GMWB Without Step-Up.
Conversion is not a right under the Contract or endorsement. We currently allow
conversions, and we may discontinue doing so at any time in the future. In
addition, no more than two conversions are currently allowed over the life of a
Contract.
There are several important factors to consider when deciding whether to convert
your 5% GMWB Without Step-Up. Converting your 5% GMWB Without Step-Up to
SafeGuard Max may be advantageous if you desire the potential for Step-Ups of
the GWB every five years. Step-Ups are not automatic and must be elected by you.
Step-Ups may result in a higher GWB and, subsequently, a higher GAWA. You will
also be receiving a higher GAWA percentage of at least 7% for SafeGuard Max,
instead of the current 5% you are receiving under your 5% GMWB Without Step-Up.
However, as stated above, you will be increasing the cost of your GMWB when
converting to the new benefit.
Converting your 5% GMWB Without Step-Up to AutoGuard 5 or AutoGuard 6 may be
advantageous if you desire the potential for automatic annual Step-Ups of the
GWB for a period of no less than 12 years rather than no Step-Ups. The annual
Step-Ups may result in a higher GWB and, subsequently, a higher GAWA. You will
also be receiving the same GAWA percentage of 5% for AutoGuard 5, and a higher
GAWA percentage of 6% for AutoGuard 6, instead of the current 5% you are
receiving under your 5% GMWB Without Step-Up. However, as stated above, you will
be increasing the cost of your GMWB when converting to the new benefit.
Converting your 5% GMWB Without Step-Up to LifeGuard Freedom GMWB or LifeGuard
Freedom GMWB with Joint Option may be advantageous if you desire the potential
for a GWB adjustment, re-determination of the GAWA%, annual Step-Ups of the GWB
to the highest quarterly Contract Value over the life of the Contract (so long
as the Contract is in the accumulation phase), and the bonus provision that may
increase your GWB if no withdrawals are taken over a certain period, even if the
GWB does not increase upon the Step-Ups. It would also be advantageous if you
desire lifetime income versus a return of premium guarantee. Additionally,
conversion to LifeGuard Freedom GMWB with Joint Option will provide spousal
continuation of the lifetime income feature.
76
However, as noted above, you will be increasing the cost of your GMWB when
converting to the new benefit. Additionally, the For Life Guarantee is not
effective until the Contract Anniversary on or immediately following the Owner's
(or with joint Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard
Freedom GMWB. For LifeGuard Freedom GMWB with Joint Option, the For Life
Guarantee is not effective until the Contract Anniversary on or immediately
following the youngest Covered Life's attained age of 59 1/2. Because the GAWA
percentage under LifeGuard Freedom GMWB and LifeGuard Freedom GMWB with Joint
Option varies according to age group (the younger the age group, the lower the
GAWA percentage) and is determined based on the attained age at the time of the
first withdrawal, your GAWA percentage may increase or decrease, depending on
the age at which you convert and depending on when you take your first
withdrawal after conversion.
Finally, the new GWB upon any conversion of your 5% GMWB Without Step-Up would
be equal to the Contract Value at the time of the conversion. As a result, if
the GWB in your current GMWB is higher than your Contract Value, your GWB will
decrease upon conversion. In addition, the new GAWA will be based on the new GWB
of the new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
5% For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
("LifeGuard Protector"). The following description of this GMWB is supplemented
by the examples in Appendix D, particularly examples 6 and 7 for the Step-Ups
and example 9 for the For Life guarantees.
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
This GMWB guarantees partial withdrawals during the Contract's accumulation
phase (i.e., before the Income Date) for the longer of:
o The Owner's life (the "For Life Guarantee") if the For
Life Guarantee is in effect;
The For Life Guarantee is based on the life of the
first Owner to die with joint Owners. There are
also other GMWB options for joint Owners that are
spouses, as described below.
For the Owner that is a legal entity, the For Life
Guarantee is based on the Annuitant's life (or the
life of the first Annuitant to die if there is
more than one Annuitant).
The For Life Guarantee becomes effective on the
Contract Anniversary on or immediately following
the Owner's 65th birthday (or with joint Owners,
the oldest Owner's 65th birthday). If the Owner
(or oldest Owner) is 65 years old or older on the
endorsement's effective date, then the For Life
Guarantee is effective when this GMWB is added to
the Contract.
So long as the For Life Guarantee is in effect,
withdrawals are guaranteed even in the event
Contract Value is reduced to zero.
Or
o Until all withdrawals under the Contract equal the
Guaranteed Withdrawal Balance (GWB), without regard to
Contract Value.
The GWB is the guaranteed amount available for
future periodic withdrawals.
Because of the For Life Guarantee, your withdrawals could
amount to more than the GWB. But PLEASE NOTE: The guarantees
of this GMWB are subject to the endorsement's terms,
conditions, and limitations that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 45 to 80 years old (proof of age is required);
may be added to a Contract on the Issue Date or any Contract Anniversary; and
once added cannot be canceled except by a Beneficiary who is the Owner's spouse,
who, upon the Owner's death, may elect to continue the Contract without the
GMWB. At least 30 calendar days' prior notice and proof of age is required for
Good Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB
is not available on a Contract that already
77
has a GMWB (only one GMWB per Contract) or a Guaranteed Minimum Income Benefit
(GMIB). We allow ownership changes of a Contract with this GMWB when the Owner
is a legal entity - to another legal entity or the Annuitant. Otherwise,
ownership changes are not allowed. Also, when the Owner is a legal entity,
charges will be determined based on the age of the Annuitant and changing
Annuitants is not allowed. Availability of this GMWB may be subject to further
limitation. There is a limit on withdrawals each Contract Year to keep the
guarantees of this GMWB in full effect - the greater of the Guaranteed Annual
Withdrawal Amount (GAWA) and for certain tax-qualified Contracts, the required
minimum distribution (RMD) under the Internal Revenue Code. Withdrawals
exceeding the limit do not invalidate the For Life Guarantee, but cause the GWB
and GAWA to be recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 5% of the GWB.
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When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the applicable recapture charge on any
Contract Enhancement.
The GAWA equals 5% of the GWB.
--------------------------------------------------------------------------
PLEASE NOTE: At the time the For Life Guarantee becomes effective, the GAWA is
reset to equal 5% of the then current GWB.
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA, or for certain
tax-qualified Contracts only, the RMD (if greater than the GAWA). The two tables
below clarify what happens in either instance. RMD denotes the required minimum
distribution under the Internal Revenue Code for certain tax-qualified Contracts
only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
--------------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
--------------------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and not cause the GWB and GAWA to be
recalculated does not accumulate.
78
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount - even set equal to the Contract Value (less any
recapture charge on any Contract Enhancement). The GAWA is also potentially
impacted.
When a withdrawal, plus all prior withdrawals in the current Contract
--------------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o 5% of the Contract Value after the withdrawal less the
recapture charge on any Contract Enhancement; Or
o The greater of 5% of the GWB after the withdrawal, or zero.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the For
Life Guarantee may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of the RMD for each of the two calendar
years occurring in that Contract Year and the GAWA for that Contract Year,
then the GWB and GAWA could be adversely recalculated, as described above.
(If your Contract Year is the same as the calendar year, then the sum of
your total partial withdrawals should not exceed the greater of the RMD
and the GAWA.) Below is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the
--------------------------------------------------------------------------
79
--------------------------------------------------------------------------
GWB and GAWA to be adversely recalculated (if the two RMDs exceeded
the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
--------------------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 5% of the premium net of any applicable premium taxes; Or
o 5% of the increase in the GWB - if the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 5% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
Step-Ups occur automatically upon each of the first ten Contract Anniversaries
from the endorsement's effective date. Thereafter, a Step-Up is allowed at any
time upon your request, so long as there is at least one year between Step-Ups.
The GWB can never be more than $5 million with a Step-Up. A request for Step-Up
is processed and effective on the date received in Good Order. Please consult
the representative who helped you purchase your Contract to be sure if a Step-Up
is right for you and about any increase in charges upon a Step-up. Upon election
of a Step-Up, the applicable GMWB charge will be reflected in your confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners), this GMWB terminates without value.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect and
the Contract is still in the accumulation phase. Otherwise, payments will be
made while there is value to the GWB (until depleted), so long as the Contract
is still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
80
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract is in
Good Order is called the Continuation Date.)
o Upon the Owner's death, the For Life
Guarantee is void.
o Only the GWB is payable while there is value
to it (until depleted).
o Step-Ups will continue automatically or as
permitted; otherwise, the above rules for
Step-Ups apply.
o Contract Anniversaries will continue to be
based on the Contract's Issue Date.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject
to the Beneficiary's eligibility - whether or not
the spousal Beneficiary terminated the GMWB in
continuing the Contract.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB;
o The Continuation Date if the spousal Beneficiary elects
to continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract Value is zero.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if the Owner
dies before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the
81
original Owner, in which case the spouse becomes the Owner of the Contract
and the Latest Income Date is based on the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Conversion. You may convert this 5% for Life GMWB With Annual Step-Up to the For
Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB) or the Joint
For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint
Option). Conversion may reduce the dollar amount of your withdrawals available
under the new benefit versus the old benefit because the recalculated GWB under
the new benefit takes into account any negative investment performance under
your Contract. For conversion, the new benefit must be available at the time of
election and you must meet the eligibility requirements for the new benefit.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 5% for Life GMWB With Annual Step-Up that are due upon termination of
the original endorsement. Since the Contract Value includes any previously
applied Contract Enhancement, we subtract any applicable recapture charge from
the Contract Value to calculate the new GWB under the new endorsement;
therefore, in calculating the new GWB, a recapture charge associated with any
Contract Enhancement will reduce the new GWB below the Contract Value at
conversion. (See Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is
determined according to the rules under the new endorsement. We will send you
the new endorsement. Upon conversion, all conditions, rules, benefits, charges
and limitations of the new optional withdrawal benefit will apply to you. The
charge of the new benefit will be higher than that currently charged for this 5%
for Life GMWB With Annual Step-Up. Conversion is not a right under the Contract
or endorsement. We currently allow conversions, and we may discontinue doing so
at any time in the future. In addition, no more than two conversions are
currently allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your 5% for Life GMWB With Annual Step-Up. Converting your 5% for Life GMWB With
Annual Step-Up to LifeGuard Freedom GMWB or LifeGuard Freedom GMWB with Joint
Option may be advantageous if you desire the potential for a GWB adjustment,
re-determination of the GAWA%, annual Step-Ups of the GWB to the highest
quarterly Contract Value over the life of the Contract (so long as the Contract
is in the accumulation phase), and the bonus provision that may increase your
GWB if no withdrawals are taken over a certain period, even if the GWB does not
increase upon the Step-Ups. Additionally, the For Life Guarantee is effective on
the Contract Anniversary on or immediately following the Owner's (or with joint
Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard Freedom GMWB or
the youngest Covered Life's attained age of 59 1/2 for LifeGuard Freedom GMWB
with Joint Option, instead of the attained age of 65 under your 5% for Life GMWB
With Annual Step-Up. Furthermore, conversion to LifeGuard Freedom GMWB with
Joint Option will provide spousal continuation of the lifetime income feature.
However, as noted above, you will be increasing the cost of your GMWB when
converting to the new benefit. Because the GAWA percentage under LifeGuard
Freedom GMWB and LifeGuard Freedom GMWB with Joint Option varies according to
age group (the younger the age group, the lower the GAWA percentage) and is
determined based on the attained age at the time of the first withdrawal, your
GAWA percentage may increase or decrease, depending on the age at which you
convert and depending on when you take your first withdrawal after conversion.
Finally, the new GWB upon any conversion of your 5% for Life GMWB With Annual
Step-Up would be equal to the Contract Value at the time of the conversion. As a
result, if the GWB in your current GMWB is higher than your Contract Value, your
GWB will
82
decrease upon conversion. In addition, the new GAWA will be based on the new GWB
of the new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Annual Step-Up
("LifeGuard Advantage"). The following description of this GMWB is supplemented
by the examples in Appendix D, particularly examples 6 and 7 for the Step-Ups,
example 8 for the bonus and example 9 for the For Life guarantees.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
This GMWB guarantees partial withdrawals during the Contract's accumulation
phase (i.e., before the Income Date) for the longer of:
o The Owner's life (the "For Life Guarantee") if the For Life
Guarantee is in effect;
The For Life Guarantee is based on the life of the first Owner
to die with joint Owners. For the Owner that is a legal
entity, the For Life Guarantee is based on the Annuitant's
life (or the life of the first Annuitant to die if there is
more than one Annuitant).
The For Life Guarantee becomes effective on the Contract
Anniversary on or immediately following the Owner's 60th
birthday (or with joint Owners, the oldest Owner's 60th
birthday). If the Owner (or oldest Owner) is 60 years old or
older on the endorsement's effective date, then the For Life
Guarantee is effective when this GMWB is added to the
Contract.
If this GMWB was added to your Contract prior to December 3,
2007, the For Life Guarantee becomes effective on the Contract
Anniversary on or immediately following the Owner's 65th
birthday (or with joint Owners, the oldest Owner's 65th
birthday). If the Owner (or oldest Owner) is 65 years old or
older on the endorsement's effective date, then the For Life
Guarantee is effective when this GMWB is added to the
Contract.
So long as the For Life Guarantee is in effect, withdrawals
are guaranteed even in the event Contract Value is reduced to
zero.
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future periodic
withdrawals.
o With this GMWB, we offer a bonus on the GWB; you may be able to
receive a credit to the GWB for a limited time (see box below, and
the paragraph preceding it at the end of this section, for more
information).
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB, including any bonus
opportunity, are subject to the endorsement's terms, conditions, and limitations
that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 45 to 80 years old (proof of age is required);
may be added to a Contract on the Issue Date or any Contract Anniversary; and
once added cannot be canceled except by a Beneficiary who is the Owner's spouse,
who, upon the Owner's death, may elect to continue the Contract without the
GMWB. At least 30 calendar days' prior notice and proof of age is required for
Good Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB
is not available on a Contract that already has a GMWB (only one GMWB per
Contract) or a Guaranteed Minimum Income Benefit (GMIB). We allow ownership
changes of a Contract with this GMWB when the Owner is a legal entity - to
another legal entity or the Annuitant. Otherwise, ownership changes are not
allowed. Also, when the Owner is a legal entity, charges will be determined
based on the age of the Annuitant and changing Annuitants is not allowed.
Availability of this GMWB may be subject to further limitation.
83
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit do not invalidate the For Life Guarantee, but cause the GWB and GAWA to be
recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 5% of the GWB.
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When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the applicable recapture charge on any
Contract Enhancement.
The GAWA equals 5% of the GWB.
--------------------------------------------------------------------------
PLEASE NOTE: At the time the For Life Guarantee becomes effective, the GAWA is
reset to equal 5% of the then current GWB.
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA, or for certain
tax-qualified Contracts only, the RMD (if greater than the GAWA). The two tables
below clarify what happens in either instance. RMD denotes the required minimum
distribution under the Internal Revenue Code for certain tax-qualified Contracts
only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMDs without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and not cause the GWB and GAWA to be
recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount. The GAWA is also likely to be reduced.
84
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable, and this
---------------------------------------------------------------------
endorsement was added to your Contract on or after December 3, 2007 -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any portion of the partial withdrawal
not defined as an Excess Withdrawal (see below), then reduced
in the same proportion that the Contract Value is reduced by
the Excess Withdrawal; Or
o Zero.
The GAWA is recalculated as follows:
o If the For Life Guarantee is in force, the GAWA prior to the
partial withdrawal is reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal.
o If the For Life Guarantee is not in force, the GAWA is equal
to the lesser of:
o The GAWA prior to the partial withdrawal reduced
in the same proportion that the Contract Value is
reduced by the Excess Withdrawal, Or
o The GWB after the withdrawal.
--------------------------------------------------------------------------
The Excess Withdrawal is defined to be the lesser of:
o The total amount of the current partial withdrawal, Or
o The amount by which the cumulative partial withdrawals
for the current Contract Year exceeds the greater of the
GAWA or the RMD, as applicable.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable, and this
---------------------------------------------------------------------
endorsement was added to your Contract before December 3, 2007 -
--------------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o 5% of the Contract Value after the withdrawal less the
recapture charge on any Contract Enhancement; Or
o The greater of 5% of the GWB after the withdrawal, or zero.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the For
Life Guarantee may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of the RMD for each of the two calendar
years occurring in that Contract Year and the
85
--------------------------------------------------------------------------
GAWA for that Contract Year, then the GWB and GAWA could be adversely
recalculated, as described above. (If your Contract Year is the same as
the calendar year, then the sum of your total partial withdrawals should
not exceed the greater of the RMD and the GAWA.) Below is an example of
how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
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The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 5% of the premium net of any applicable premium taxes; Or
o 5% of the increase in the GWB - if the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 5% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
Step-Ups occur automatically upon each of the first ten Contract Anniversaries
from the endorsement's effective date. Thereafter, a Step-Up is allowed at any
time upon your request, so long as there is at least one year between Step-Ups.
The GWB can never be more than $5 million with a Step-Up. A request for Step-Up
is processed and effective on the date received in Good Order. Please consult
the representative who helped you purchase your Contract to be sure if a Step-Up
is right for you and about any increase in charges upon a Step-up. Upon election
of a Step-Up, the applicable GMWB charge will be reflected in your confirmation.
86
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners), this GMWB terminates without value.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect and
the Contract is still in the accumulation phase. Otherwise, payments will be
made while there is value to the GWB (until depleted), so long as the Contract
is still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract is in
Good Order is called the Continuation Date.)
o Upon the Owner's death, the For Life
Guarantee is void.
o Only the GWB is payable while there is value
to it (until depleted).
o Step-Ups will continue automatically or as
permitted; otherwise, the above rules for
Step-Ups apply.
o Contract Anniversaries will continue to be
based on the Contract's Issue Date.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
Beneficiary's eligibility - whether or not the spousal
Beneficiary terminated the GMWB in continuing the
Contract.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly statement charge and all benefits cease on the
earliest of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB;
87
o The Continuation Date if the spousal Beneficiary elects
to continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract Value is zero.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if the Owner
dies before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the original Owner, in which case the spouse
becomes the Owner of the Contract and the Latest Income Date is based on
the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The description of the bonus feature is supplemented by the examples in
Appendix D, particularly example 8. The bonus is an incentive for you not to
utilize this GMWB (take withdrawals) during a limited period of time, subject to
conditions and limitations, allowing the GWB and GAWA to increase (even in a
down market relative to your Contract Value allocated to any Investment
Divisions). The increase, however, may not equal the amount that your Contract
Value has declined. The bonus is a percentage of a sum called the Bonus Base
(defined below). The box below has more information about the bonus, including:
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a
withdrawal, premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the
GWB.
--------------------------------------------------------------------
The bonus equals 6% (5% if this GMWB is added to the Contract prior
to June 4, 2007) and is based on a sum that may vary after this GMWB
is added to the Contract (the "Bonus Base"), as described
immediately below.
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88
--------------------------------------------------------------------
o When this GMWB is added to the Contract, the Bonus Base
equals the GWB.
o With a withdrawal, if that withdrawal, and all prior
withdrawals in the current Contract Year, exceeds the
greater of the GAWA and the RMD, as applicable, then the
Bonus Base is set to the lesser of the GWB after, and
the Bonus Base before, the withdrawal. Otherwise, there
is no adjustment to the Bonus Base with withdrawals.
o All withdrawals count, including: systematic
withdrawals; RMDs for certain tax-qualified
Contracts; withdrawals of asset allocation
and advisory fees; and free withdrawals
under the Contract.
o A withdrawal in a Contract Year during the
Bonus Period (defined below) precludes a
bonus for that Contract Year.
o With a premium payment, the Bonus Base increases by the
amount of the premium net of any applicable premium
taxes.
o With any Step-Up (if the GWB increases upon step-up),
the Bonus Base is set to the greater of the GWB after,
and the Bonus Base before, the Step-Up.
The Bonus Base can never be more than $5 million.
The Bonus is available for a limited time (the "Bonus Period"). The
Bonus Period runs from the date this GMWB is added to the Contract
through the earliest of:
o The tenth Contract Anniversary after the effective date
of the endorsement;
o The Contract Anniversary on or immediately following the
Owner's (if joint Owners, the oldest Owner's) 81st
birthday; or
o The date Contract Value is zero.
Spousal continuation of a Contract with this GMWB does not affect
the Bonus Period; Contract Anniversaries are based on the Contract's
Issue Date.
The bonus is applied at the end of each Contract Year during the
Bonus Period, if there have been no withdrawals during that Contract
Year. Conversely, any withdrawal, including but not limited to
systematic withdrawals and required minimum distributions, taken in
a Contract Year during the Bonus Period causes the bonus not to be
applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 6% (5% if this
GMWB is added to the Contract prior to June 4, 2007) of
the Bonus Base.
o The GAWA is then recalculated, equaling the greatest of
5% of the new GWB and the GAWA before the bonus.
Applying the bonus to the GWB does not affect the Bonus Base.
--------------------------------------------------------------------
Conversion. You may convert this 5% for Life GMWB With Bonus and Annual Step-Up
to the For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB) or
the Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB
with Joint Option). Conversion may reduce the dollar amount of your withdrawals
available under the new benefit versus the old benefit because the recalculated
GWB under the new benefit takes into account any negative investment performance
under your Contract. For conversion, the new benefit must be available at the
time of election and you must meet the eligibility requirements for the new
benefit. Conversion is permitted on any Contract Anniversary before December 6,
2009. A request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 5% for Life GMWB With Bonus and Annual Step-Up that are due upon
termination of the original endorsement. Since the Contract Value includes any
previously applied Contract Enhancement, we subtract any applicable recapture
charge from the Contract Value to calculate the new GWB under the new
endorsement; therefore, in calculating the new GWB, a recapture charge
associated with any Contract Enhancement will reduce the new GWB below the
Contract Value at conversion. (See Example 1c in Appendix D.) Regarding your
GAWA, a new GAWA is determined according to the rules under the new endorsement.
We will send you the new endorsement. Upon conversion, all conditions, rules,
benefits, charges and limitations of the new optional withdrawal benefit will
apply to you. Depending on the age at which you convert, the charge of LifeGuard
Freedom GMWB may be higher than that currently charged for this 5% for Life GMWB
With Bonus and Annual Step-Up. The charge of LifeGuard Freedom GMWB with Joint
Option will be higher than that currently charged for this For Life GMWB With
Bonus and Annual Step-Up. Conversion is not a right under the Contract or
endorsement. We currently allow conversions, and we may discontinue doing so at
any time in the future. In addition, no more than two conversions are currently
allowed over the life of a Contract.
89
There are several important factors to consider when deciding whether to convert
your 5% for Life GMWB With Bonus and Annual Step-Up. Converting your 5% for Life
GMWB With Bonus and Annual Step-Up to LifeGuard Freedom GMWB or LifeGuard
Freedom GMWB with Joint Option may be advantageous if you desire the potential
for a GWB adjustment, re-determination of the GAWA% and annual Step-Ups of the
GWB to the highest quarterly Contract Value over the life of the Contract (so
long as the Contract is in the accumulation phase). Additionally, LifeGuard
Freedom GMWB offers a bonus provision that may increase your GWB if no
withdrawals are taken over a certain period, even if the GWB does not increase
upon the Step-Ups. Furthermore, conversion to LifeGuard Freedom GMWB with Joint
Option will provide spousal continuation of the lifetime income feature.
However, the For Life Guarantee is effective on the Contract Anniversary on or
immediately following the Owner's (or with joint Owners, the oldest Owner's)
attained age of 59 1/2 for LifeGuard Freedom GMWB or the youngest Covered Life's
attained age of 59 1/2 for LifeGuard Freedom GMWB with Joint Option, instead of
the attained age of 60 (attained age 65 if this GMWB was added to your Contract
prior to December 3, 2007) under your 5% for Life GMWB With Bonus and Annual
Step-Up. For LifeGuard Freedom GMWB with Joint Option, subject to the age at
which you convert, the bonus provision may increase your GWB if no withdrawals
are taken over a certain period, even if the GWB does not increase upon
Step-Ups. Because the GAWA percentage under LifeGuard Freedom GMWB and LifeGuard
Freedom GMWB with Joint Option varies according to age group (the younger the
age group, the lower the GAWA percentage) and is determined based on the
attained age at the time of the first withdrawal, your GAWA percentage may
increase or decrease, depending on the age at which you convert and depending on
when you take your first withdrawal after conversion. Also, depending on the age
at which you convert, you may be increasing the cost of your GMWB when
converting to LifeGuard Freedom GMWB. And you will be increasing the cost of
your GMWB when converting to LifeGuard Freedom GWMB with Joint Option.
Additionally when converting to LifeGuard Freedom GWMB with Joint Option,
depending on the age at which you convert, you may be subject to a lower bonus
than currently available under your 5% for Life GMWB With Bonus and Annual
Step-Up.
Finally, the new GWB upon any conversion of your 5% for Life GMWB With Bonus and
Annual Step-Up would be equal to the Contract Value at the time of the
conversion. As a result, if the GWB in your current GMWB is higher than your
Contract Value, your GWB will decrease upon conversion. In addition, the new
GAWA will be based on the new GWB of the new benefit after conversion. (See
Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Five-Year
Step-Up ("LifeGuard Protector Plus"). The following description of this GMWB is
supplemented by the examples in Appendix D, particularly examples 6 and 7 for
the Step-Ups, example 8 for the bonus and example 9 for the For Life guarantees.
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
This GMWB guarantees partial withdrawals during the Contract's accumulation
phase (i.e., before the Income Date) for the longer of:
o The Owner's life (the "For Life Guarantee") if the For Life
Guarantee is in effect;
The For Life Guarantee is based on the life of the first Owner
to die with joint Owners. For the Owner that is a legal
entity, the For Life Guarantee is based on the Annuitant's
life (or the life of the first Annuitant to die if there is
more than one Annuitant).
The For Life Guarantee becomes effective on the Contract
Anniversary on or immediately following the Owner's 65th
birthday (or with joint Owners, the oldest Owner's 65th
birthday). If the Owner (or oldest Owner) is 65 years old or
older on the endorsement's effective date, then the For Life
Guarantee is effective when this GMWB is added to the
Contract.
So long as the For Life Guarantee is in effect, withdrawals
are guaranteed even in the event Contract Value is reduced to
zero.
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future periodic
withdrawals.
90
o With this GMWB, we offer a bonus on the GWB; you may be able
to receive a credit to the GWB for a limited time (see box
below, and the paragraph preceding it at the end of this
section, for more information).
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB, including any bonus
opportunity, are subject to the endorsement's terms, conditions, and limitations
that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 45 to 80 years old (proof of age is required);
may be added to a Contract on the Issue Date or any Contract Anniversary; and
once added cannot be canceled except by a Beneficiary who is the Owner's spouse,
who, upon the Owner's death, may elect to continue the Contract without the
GMWB. At least 30 calendar days' prior notice and proof of age is required for
Good Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB
is not available on a Contract that already has a GMWB (only one GMWB per
Contract) or a Guaranteed Minimum Income Benefit (GMIB). We allow ownership
changes of a Contract with this GMWB when the Owner is a legal entity - to
another legal entity or the Annuitant. Otherwise, ownership changes are not
allowed. Also, when the Owner is a legal entity, charges will be determined
based on the age of the Annuitant and changing Annuitants is not allowed.
Availability of this GMWB may be subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit do not invalidate the For Life Guarantee, but cause the GWB and GAWA to be
recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 5% of the GWB.
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When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the applicable recapture charge on any
Contract Enhancement.
The GAWA equals 5% of the GWB.
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PLEASE NOTE: At the time the For Life Guarantee becomes effective, the GAWA is
reset to equal 5% of the then current GWB.
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA, or for certain
tax-qualified Contracts only, the RMD (if greater than the GAWA). The two tables
below clarify what happens in either instance. RMD denotes the required minimum
distribution under the Internal Revenue Code for certain tax-qualified Contracts
only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMDs without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
91
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and keep the guarantees of this GMWB in full
effect does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount - even set equal to the Contract Value (less any
recapture charge on any Contract Enhancement). The GAWA is also potentially
impacted.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o 5% of the Contract Value after the withdrawal less the
recapture charge on any Contract Enhancement; Or
o The greater of 5% of the GWB after the withdrawal, or zero.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Code allows for the taking of RMDs for multiple contracts from a single
contract. Initiating and monitoring for compliance with the RMD
requirements is the responsibility of the Owner.
Under the Code, RMDs are calculated and taken on a calendar year basis.
But with this GMWB, the GAWA is based on Contract Years. Because the
intervals for the GAWA and RMDs are different, the For Life Guarantee may
be more susceptible to being compromised. With tax-qualified Contracts, if
the sum of your total partial withdrawals in a Contract Year exceed the
greatest of the RMD for each of the two calendar years occurring in that
Contract Year and the GAWA for that Contract Year, then the GWB and GAWA
could be adversely recalculated, as described above. (If your Contract
Year is the same as the calendar year, then the sum of your total partial
withdrawals should not exceed the greater of the RMD and the GAWA.) Below
is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for
--------------------------------------------------------------------------
92
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calendar years 2007 and 2008 are $14 and $16, respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
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The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 5% of the premium net of any applicable premium taxes; Or
o 5% of the increase in the GWB - if the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 5% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
The first opportunity for a Step-Up is the fifth Contract Anniversary after this
GMWB is added to the Contract. During the first ten Contract Years after this
GMWB is added to the Contract, Step-Ups are only allowed on or during the 30-day
period following a Contract Anniversary. Thereafter, a Step-Up is allowed at any
time, but there must always be at least five years between Step-Ups. The GWB can
never be more than $5 million with a Step-Up. A request for Step-Up is processed
and effective on the date received in Good Order. Please consult the
representative who helped you purchase your Contract to be sure if a Step-Up is
right for you and about any increase in charges upon a Step-up. Upon election of
a Step-Up, the applicable GMWB charge will be reflected in your confirmation.
93
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners), this GMWB terminates without value.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect and
the Contract is still in the accumulation phase. Otherwise, payments will be
made while there is value to the GWB (until depleted), so long as the Contract
is still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract in Good
Order is called the Continuation Date.)
o Upon the Owner's death, the For Life Guarantee is
void.
o Only the GWB is payable while there is value to it
(until depleted).
o The Beneficiary is also allowed a Step-Up. The
Step-Up may only be elected on the first Contract
Anniversary on or after the Continuation Date,
which is the date the Beneficiary's election to
continue the Contract is in Good Order. Otherwise,
the above rules for Step-Ups apply.
o Contract Anniversaries will continue to be based
on the Contract's Issue Date.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
Beneficiary's eligibility - whether or not the spousal
Beneficiary terminated the GMWB in continuing the
Contract.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB;
94
o The Continuation Date if the spousal Beneficiary elects
to continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract Value is zero.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if the Owner
dies before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the original Owner, in which case the spouse
becomes the Owner of the Contract and the Latest Income Date is based on
the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special
Considerations" beginning on page 55 for additional things to consider before
electing a GMWB; when electing to annuitize your Contract after having purchased
a GMWB; or when the Latest Income Date is approaching and you are thinking about
electing or have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The description of the bonus feature is supplemented by the examples in
Appendix D, particularly example 8. The bonus is an incentive for you not to
utilize this GMWB (take withdrawals) during a limited period of time, subject to
conditions and limitations, allowing the GWB and GAWA to increase (even in a
down market relative to your Contract Value allocated to any Investment
Divisions). The increase, however, may not equal the amount that your Contract
Value has declined. The bonus is a percentage of a sum called the Bonus Base
(defined below). The box below has more information about the bonus, including:
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a
withdrawal, premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the
GWB.
--------------------------------------------------------------
The bonus equals 5% and is based on a sum that may vary after
this GMWB is added to the Contract (the "Bonus Base"), as
described immediately below.
--------------------------------------------------------------
95
--------------------------------------------------------------------------
o When this GMWB is added to the Contract, the Bonus Base equals
the GWB.
o With a withdrawal, if that withdrawal, and all prior
withdrawals in the current Contract Year, exceeds the greater
of the GAWA or the RMD, as applicable, then the Bonus Base is
set to the lesser of the GWB after, and the Bonus Base before,
the withdrawal. Otherwise, there is no adjustment to the Bonus
Base with withdrawals.
o All withdrawals count, including: systematic
withdrawals; RMDs for certain tax-qualified
Contracts; withdrawals of asset allocation and
advisory fees; and free withdrawals under the
Contract.
o A withdrawal in a Contract Year during the Bonus
Period (defined below) precludes a bonus for that
Contract Year.
o With a premium payment, the Bonus Base increases by the amount
of the premium net of any applicable premium taxes.
o With any Step-Up, the Bonus Base is set to the greater of the
GWB after, and the Bonus Base before, the Step-Up.
The Bonus Base can never be more than $5 million.
The Bonus is available for a limited time (the "Bonus Period"). The Bonus
Period runs from the date this GMWB is added to the Contract through the
earliest of:
o The tenth Contract Anniversary after the effective date of the
endorsement;
o The Contract Anniversary on or immediately following the
Owner's (if Joint Owners, the oldest Owner's) 81st birthday;
or
o The date Contract Value is zero.
Spousal continuation of a Contract with this GMWB does not affect the
Bonus Period; Contract Anniversaries are based on the Contract's Issue
Date.
The bonus is applied at the end of each Contract Year during the Bonus
Period, if there have been no withdrawals during that Contract Year.
Conversely, any withdrawal, including but not limited to systematic
withdrawals and required minimum distributions, taken in a Contract Year
during the Bonus Period causes the bonus not to be applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 5% of the Bonus Base.
o The GAWA is then recalculated, equaling the greater of 5% of
the new GWB and the GAWA before the bonus.
Applying the bonus to the GWB does not affect the Bonus Base.
--------------------------------------------------------------------------
Conversion. You may convert this 5% for Life GMWB With Bonus and Five-Year
Step-Up to the For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom
GMWB) or the Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard
Freedom GMWB with Joint Option). Conversion may reduce the dollar amount of your
withdrawals available under the new benefit versus the old benefit because the
recalculated GWB under the new benefit takes into account any negative
investment performance under your Contract. For conversion, the new benefit must
be available at the time of election and you must meet the eligibility
requirements for the new benefit. Conversion is permitted on any Contract
Anniversary before December 6, 2009. A request in Good Order for conversion is
due 30 days before a Contract Anniversary for the conversion to take effect on
the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 5% for Life GMWB With Bonus and Five-Year Step-Up that are due upon
termination of the original endorsement. Since the Contract Value includes any
previously applied Contract Enhancement, we subtract any applicable recapture
charge from the Contract Value to calculate the new GWB under the new
endorsement; therefore, in calculating the new GWB, a recapture charge
associated with any Contract Enhancement will reduce the new GWB below the
Contract Value at conversion. (See Example 1c in Appendix D.) Regarding your
GAWA, a new GAWA is determined according to the rules under the new endorsement.
We will send you the new endorsement. Upon conversion, all conditions, rules,
benefits, charges and limitations of the new optional withdrawal benefit will
apply to you. The charge of the new benefit will be higher than that currently
charged for this 5% for Life GMWB With Bonus and Five-Year Step-Up. Conversion
is not a right under the Contract or endorsement. We currently allow
conversions, and we may discontinue doing so at any time in the future. In
addition, no more than two conversions are currently allowed over the life of a
Contract.
There are several important factors to consider when deciding whether to convert
your 5% for Life GMWB With Bonus and Five-Year Step-Up. Converting your 5% for
Life GMWB With Bonus and Five-Year Step-Up to LifeGuard Freedom GMWB or
LifeGuard Freedom GMWB with Joint Option may be advantageous if you desire the
potential for a GWB adjustment, re-
96
determination of the GAWA% and annual Step-Ups of the GWB to the highest
quarterly Contract Value over the life of the Contract (so long as the Contract
is in the accumulation phase). Additionally, LifeGuard Freedom GMWB offers a
bonus provision that may increase your GWB if no withdrawals are taken over a
certain period, even if the GWB does not increase upon the Step-Ups. For
LifeGuard Freedom GMWB with Joint Option, subject to the age at which you
convert, the bonus provision may increase your GWB if no withdrawals are taken
over a certain period, even if the GWB does not increase upon Step-Ups.
Additionally, the For Life Guarantee is effective on the Contract Anniversary on
or immediately following the Owner's (or with joint Owners, the oldest Owner's)
attained age of 59 1/2 for LifeGuard Freedom GMWB or the youngest Covered Life's
attained age of 59 1/2 for LifeGuard Freedom GMWB with Joint Option, instead of
the attained age of 65 under your 5% for Life GMWB With Bonus and Five-Year
Step-Up. Furthermore, conversion to LifeGuard Freedom GMWB with Joint Option
will provide spousal continuation of the lifetime income feature. However, as
noted above, you will be increasing the cost of your GMWB when converting to the
new benefit. Because the GAWA percentage under LifeGuard Freedom GMWB and
LifeGuard Freedom GMWB with Joint Option varies according to age group (the
younger the age group, the lower the GAWA percentage) and is determined based on
the attained age at the time of the first withdrawal, your GAWA percentage may
increase or decrease, depending on the age at which you convert and depending on
when you take your first withdrawal after conversion.
Finally, the new GWB upon any conversion of your 5% for Life GMWB With Bonus and
Five-Year Step-Up would be equal to the Contract Value at the time of the
conversion. As a result, if the GWB in your current GMWB is higher than your
Contract Value, your GWB will decrease upon conversion. In addition, the new
GAWA will be based on the new GWB of the new benefit after conversion. (See
Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
Joint 5% For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
("LifeGuard Protector With Joint Option"). The description of this GMWB is
supplemented by the examples in Appendix D, particularly examples 6 and 7 for
the Step-Ups and example 10 for the For Life Guarantee.
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
The election of this GMWB under a non-qualified Contract requires the joint
Owners to be spouses (as defined under the Internal Revenue Code) and each joint
Owner is considered to be a "Covered Life."
The Owners cannot be subsequently changed and new Owners cannot be added. Upon
death of either joint Owner, the surviving joint Owner will be treated as the
primary Beneficiary and all other Beneficiaries will be treated as contingent
Beneficiaries. The For Life Guarantee will not apply to these contingent
Beneficiaries, as they are not Covered Lives.
This GMWB is available on a limited basis under non-qualified Contracts for
certain kinds of legal entities, such as (i) custodial accounts where the
spouses are the joint Annuitants and (ii) trusts where the spouses are the sole
beneficial owners, and the For Life Guarantee is based on the Annuitant's life
who dies last.
Tax-qualified Contracts cannot be issued to joint Owners and require the Owner
and Annuitant to be the same person. Under a tax-qualified Contract, the
election of this GMWB requires the Owner and primary Beneficiary to be spouses
(as defined in the Internal Revenue Code). The Owner and only the primary
spousal Beneficiary named at the election of this GMWB under a tax-qualified
Contract will also each be considered a Covered Life, and these Covered Lives
cannot be subsequently changed.
For tax-qualified Contracts, the Owner and primary spousal Beneficiary cannot be
changed while both are living. If the Owner dies first, the primary spousal
Beneficiary will become the Owner upon Spousal Continuation and he or she may
name a Beneficiary; however, that Beneficiary is not considered a Covered Life.
Likewise, if the primary spousal Beneficiary dies first, the Owner may name a
new Beneficiary; however, that Beneficiary is also not considered a Covered Life
and consequently the For Life Guarantee will not apply to the new Beneficiary.
For both non-qualified and tax-qualified Contracts, this GMWB guarantees partial
withdrawals during the Contract's accumulation phase (i.e., before the Income
Date) for the longer of:
o The lifetime of the last surviving Covered Life if the For Life
Guarantee is in effect;
The For Life Guarantee becomes effective on the Contract
Anniversary on or immediately following the youngest Covered
Life's 65th birthday. If the youngest Covered Life is 65 years
old or older on the endorsement's effective date, then the For
Life Guarantee is effective when this GMWB is added to the
Contract.
97
So long as the For Life Guarantee is in effect, withdrawals
are guaranteed even in the event Contract Value is reduced to
zero.
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future periodic
withdrawals.
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB are subject to the
endorsement's terms, conditions, and limitations that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Covered Lives 45 to 80 years old (proof of age is
required and both Covered Lives must be within the eligible age range). If the
age of any Covered Life is incorrectly stated at the time of election of the
GMWB, on the date the misstatement is discovered, the Contract Value will be
adjusted by the difference between the charges actually paid and the charges
that would have been paid assuming the correct age. Future GMWB charges will be
based on the correct age. If the age at election of either Covered Life falls
outside the allowable age range, the GMWB will be null and void and all GMWB
charges will be refunded.
This GMWB may be added to a Contract on the Issue Date or on any Contract
Anniversary and, if added prior to January 16, 2007, it cannot be canceled
except by a spousal Beneficiary, who, upon the Owner's death, may elect to
continue the Contract without the GMWB. If this GMWB is added on January 16,
2007 or later, then it cannot be canceled except by a spousal Beneficiary who is
not a Covered Life, who, upon the Owner's death, may elect to continue the
Contract without the GMWB. To continue joint GMWB coverage upon the death of the
Owner (or the death of either joint Owner of a non-qualified Contract), provided
that the other Covered Life is still living, the Contract must be continued by
election of Spousal Continuation. Upon continuation, the spouse becomes the
Owner and obtains all rights as the Owner.
At least 30 calendar days' prior notice and proof of age is required for Good
Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB is not
available on a Contract that already has a GMWB (only one GMWB per Contract) or
a Guaranteed Minimum Income Benefit (GMIB). Availability of this GMWB may be
subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect, which is the maximum of the Guaranteed Annual
Withdrawal Amount (GAWA) or the required minimum distribution. Withdrawals
exceeding the limit do not invalidate the For Life Guarantee, but cause the GWB
and GAWA to be recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 5% of the GWB.
--------------------------------------------------------------------------
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the applicable recapture charge on any
Contract Enhancement.
The GAWA equals 5% of the GWB.
--------------------------------------------------------------------------
PLEASE NOTE: At the time the For Life Guarantee becomes effective, the GAWA is
reset to equal 5% of the then current GWB.
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
98
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA, or for certain
tax-qualified Contracts only, the RMD (if greater than the GAWA). The two tables
below clarify what happens in either instance. RMD denotes the required minimum
distribution under the Internal Revenue Code for certain tax-qualified Contracts
only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and not cause the GWB and GAWA to be
recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount - even set equal to the Contract Value (less any
recapture charge on any Contract Enhancement). The GAWA is also potentially
impacted.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o 5% of the Contract Value after the withdrawal less any
recapture charge on any Contract Enhancement; Or
o The greater of 5% of the GWB after the withdrawal, or zero.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
----------------------------------------------------------------------
RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified
----------------------------------------------------------------------
99
--------------------------------------------------------------------------------
as RMDs may only be taken based on the value of the Contract to which the
endorsement applies, even where the Internal Revenue Code allows for the taking
of RMDs for multiple contracts from a single contract. Initiating and monitoring
for compliance with the RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a calendar
year basis. But with this GMWB, the GAWA is based on Contract Years. Because the
intervals for the GAWA and RMDs are different, the For Life Guarantee may be
more susceptible to being compromised. With tax-qualified Contracts, if the sum
of your total partial withdrawals in a Contract Year exceed the greatest of the
RMD for each of the two calendar years occurring in that Contract Year and the
GAWA for that Contract Year, then the GWB and GAWA could be adversely
recalculated, as described above. (If your Contract Year is the same as the
calendar year, then the sum of your total partial withdrawals should not exceed
the greater of the RMD and the GAWA.) Below is an example of how this modified
limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from July 1
to June 30, and that there are no withdrawals other than as described. The
GAWA for the 2008 Contract Year (ending June 30) is $10. The RMDs for
calendar years 2007 and 2008 are $14 and $16, respectively.
If the Owner takes $7 in each of the two halves of calendar year 2007 and
$8 in each of the two halves of calendar year 2008, then at the time the
withdrawal in the first half of calendar year 2008 is taken, the Owner
will have withdrawn $15. Because the sum of the Owner's withdrawals for
the 2008 Contract Year is less than the higher RMD for either of the two
calendar years occurring in that Contract Year, the GWB and GAWA would not
be adversely recalculated.
An exception to this general rule is that with the calendar year in which your
RMDs are to begin (generally, when you reach age 70 1/2), however, you may take
your RMDs for the current and next calendar years during the same Contract Year,
as necessary (see example below).
The following example illustrates this exception. It assumes an individual
Owner, born January 1, 1937, of a tax-qualified Contract with a Contract
Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March 30,
2008, he may still take the 2008 RMD before the next Contract Year begins,
June 30, 2008 without exposing the GWB and GAWA to the possibility of
adverse recalculation. However, if he takes his second RMD (the 2008 RMD)
after June 30, 2008, he should wait until the next Contract Year begins
(that is after June 30, 2009) to take his third RMD (the 2009 RMD).
Because, except for the calendar year in which RMDs begin, taking two RMDs
in a single Contract Year could cause the GWB and GAWA to be adversely
recalculated (if the two RMDs exceeded the applicable GAWA for that
Contract Year).
Examples that are relevant or specific to tax-qualified Contracts, illustrating
this GMWB, in varying circumstances and with specific factual assumptions, are
at the end of the prospectus in Appendix D, particularly examples 4, 5, and 7.
Please consult the representative who is helping, or who helped, you purchase
your tax-qualified Contract, and your tax adviser, to be sure that this GMWB
ultimately suits your needs relative to your RMD.
--------------------------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 5% of the premium net of any applicable premium taxes; Or
o 5% of the increase in the GWB - if the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
100
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 5% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
Step-Ups occur automatically upon each of the first ten Contract Anniversaries
from the endorsement's effective date. Thereafter, a Step-Up is allowed at any
time upon your request, so long as there is at least one year between Step-Ups.
The GWB can never be more than $5 million with a Step-Up. A request for Step-Up
is processed and effective on the date received in Good Order. Please consult
the representative who helped you purchase your Contract to be sure if a Step-Up
is right for you and about any increase in charges upon a Step-up. Upon election
of a Step-Up, the applicable GMWB charge will be reflected in your confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon the death of the sole Owner of a qualified Contract or
the death of either joint Owner of a non-qualified Contract while the Contract
is still in force and before the Income Date, this GMWB terminates without value
unless continued by the spouse. Please see the information beginning on page 97
regarding the required ownership and Beneficiary structure under both qualified
and non-qualified Contracts when selecting the Joint 5% For Life GMWB With
Annual Step-Up benefit.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect and
the Contract is still in the accumulation phase. Otherwise, payments will be
made while there is value to the GWB (until depleted), so long as the Contract
is still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's (or either joint Owner's)
death, the surviving spousal Beneficiary may elect to:
o Continue the Contract with this GMWB - so long as the Contract
Value is greater than zero, and the Contract is still in the
accumulation phase. (The date the spousal Beneficiary's
election to continue the Contract is in Good Order is called
the Continuation Date.)
o If the surviving spouse is a Covered Life and the
For Life Guarantee is already in effect, then the
For Life Guarantee remains effective on and after
the Continuation Date. If the For Life Guarantee
is not already in effect and the surviving spouse
is a Covered Life, the For Life Guarantee becomes
effective on the Contract Anniversary on or
immediately following the youngest original
Covered Life's 65th birthday, and the above rules
for the For Life Guarantee apply. The effective
date of the For Life Guarantee will be set on the
effective date of the endorsement.
o If the surviving spouse is not a Covered Life, the
For Life Guarantee is null and void. However, the
surviving spouse will be entitled to make
withdrawals until the GWB is exhausted.
o For a surviving spouse who is a Covered Life,
continuing the Contract with this GMWB is
necessary to be able to fully realize the benefit
of the For Life Guarantee. The For Life Guarantee
is not a separate guarantee and only applies if
the related GMWB has not terminated.
o Step-Ups will continue automatically or as
permitted in accordance with the
101
above rules for Step-Ups.
o Contract Anniversaries will continue to be based
on the original Contract's Issue Date.
o A new joint Owner may not be added in a
non-qualified Contract if a surviving spouse
continues the Contract.
o Continue the Contract without this GMWB (GMWB is terminated)
if the GMWB was added to the Contract prior to January 16,
2007. Thereafter, no GMWB charge will be assessed.
o Continue the Contract without this GMWB (GMWB is terminated)
if this GMWB was added to the Contract on January 16, 2007 or
later and if the surviving spouse is not a Covered Life.
Thereafter, no GMWB charge will be assessed. If the surviving
spouse is a Covered Life, the Contract cannot be continued
without this GMWB.
o Add another GMWB to the Contract on any Contract Anniversary
after the Continuation Date, subject to the spousal
Beneficiary's eligibility, and provided that this GMWB was
terminated on the Continuation Date.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of death of the Owner (or either joint Owner), unless
the Beneficiary who is the Owner's spouse elects to continue
the Contract with the GMWB (continuing the Contract with this
GMWB is necessary to be able to fully realize the benefit of
the For Life Guarantee if the surviving spouse is a Covered
Life);
o The Continuation Date on a Contract in which this GMWB was
added prior to January 16, 2007 if the spousal Beneficiary
elects to continue the Contract without the GMWB;
o The Continuation Date on a Contract in which this GMWB was
added on January 16, 2007 or later, if the spousal
Beneficiary, who is not a Covered Life, elects to continue the
Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied after
the Contract Value is zero.
Annuitization.
Joint Life Income of GAWA. On the Latest Income Date if the For Life
Guarantee is in effect, the Owner may choose this income option instead of
one of the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of last
surviving Covered Life. The total annual amount payable will equal the
GAWA in effect at the time of election of this option. This annualized
amount will be paid in the frequency (no less frequently than annually)
that the Owner selects. No further annuity payments are payable after the
death of the last surviving Covered Life, and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if both
Covered Lives die before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary and the spousal Beneficiary is not a Covered Life in which
case the spouse becomes the Owner of the Contract and the Latest Income
Date is based on the age of the spouse.)
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.
102
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 the
Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Conversion. You may convert this Joint 5% for Life GMWB With Annual Step-Up to
the Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB
with Joint Option). Conversion may reduce the dollar amount of your withdrawals
available under the new benefit versus the old benefit because the recalculated
GWB under the new benefit takes into account any negative investment performance
under your Contract. For conversion, the new benefit must be available at the
time of election and you must meet the eligibility requirements for the new
benefit. In addition, Covered Lives must remain the same upon conversion.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the Joint 5% for Life GMWB With Annual Step-Up that are due upon termination
of the original endorsement. Since the Contract Value includes any previously
applied Contract Enhancement, we subtract any applicable recapture charge from
the Contract Value to calculate the new GWB under the new endorsement;
therefore, in calculating the new GWB, a recapture charge associated with any
Contract Enhancement will reduce the new GWB below the Contract Value at
conversion. (See Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is
determined according to the rules under the new endorsement. We will send you
the new endorsement. Upon conversion, all conditions, rules, benefits, charges
and limitations of the new optional withdrawal benefit will apply to you. The
charge of the new benefit will be higher than that currently charged for this
Joint 5% for Life GMWB With Annual Step-Up. Conversion is not a right under the
Contract or endorsement. We currently allow conversions, and we may discontinue
doing so at any time in the future. In addition, no more than two conversions
are currently allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your Joint 5% for Life GMWB With Annual Step-Up. Converting your Joint 5% for
Life GMWB With Annual Step-Up to LifeGuard Freedom GMWB with Joint Option may be
advantageous if you desire the potential for a GWB adjustment, re-determination
of the GAWA%, annual Step-Ups of the GWB to the highest quarterly Contract Value
over the life of the Contract (so long as the Contract is in the accumulation
phase), and the bonus provision that may increase your GWB if no withdrawals are
taken over a certain period, even if the GWB does not increase upon the
Step-Ups. Additionally, the For Life Guarantee is effective on the Contract
Anniversary on or immediately following the youngest Covered Life's attained age
of 59 1/2 for LifeGuard Freedom GMWB with Joint Option, instead of the attained
age of 65 under your Joint 5% for Life GMWB With Annual Step-Up. However, as
noted above, you will be increasing the cost of your GMWB when converting to the
new benefit. Because the GAWA percentage under LifeGuard Freedom GMWB with Joint
Option varies according to age group (the younger the age group, the lower the
GAWA percentage) and is determined based on the attained age at the time of the
first withdrawal, your GAWA percentage may increase or decrease, depending on
the age at which you convert and depending on when you take your first
withdrawal after conversion.
Finally, the new GWB upon any conversion of your Joint 5% for Life GMWB With
Annual Step-Up would be equal to the Contract Value at the time of the
conversion. As a result, if the GWB in your current GMWB is higher than your
Contract Value, your GWB will decrease upon conversion. In addition, the new
GAWA will be based on the new GWB of the new benefit after conversion. (See
Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
Joint 5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus And Five-Year
Step-Up ("LifeGuard Protector Plus With Joint Option"). The description of this
GMWB is supplemented by the examples in
103
Appendix D, particularly examples 6 and 7 for the Step-Ups, example 8 for the
bonus and examples 9 and 10 for the For Life Guarantees.
PLEASE NOTE: EFFECTIVE APRIL 30, 2007, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
The election of this GMWB under a non-qualified Contract requires the joint
Owners to be spouses (as defined under the Internal Revenue Code) and each joint
Owner is considered to be a "Covered Life."
The Owners cannot be subsequently changed and new Owners cannot be added. Upon
death of either joint Owner, the surviving joint Owner will be treated as the
primary Beneficiary and all other Beneficiaries will be treated as contingent
Beneficiaries. The For Life Guarantee will not apply to these contingent
Beneficiaries, as they are not Covered Lives.
This GMWB is available on a limited basis under non-qualified Contracts for
certain kinds of legal entities, such as (i) custodial accounts where the
spouses are the joint Annuitants and (ii) trusts where the spouses are the sole
beneficial owners, and the For Life Guarantee is based on the Annuitant's life
who dies last.
Tax-qualified Contracts cannot be issued to joint Owners and require the Owner
and Annuitant to be the same person. Under a tax-qualified Contract, the
election of this GMWB requires the Owner and primary Beneficiary to be spouses
(as defined in the Internal Revenue Code). The Owner and only the primary
spousal Beneficiary named at the election of this GMWB under a tax-qualified
Contract will also each be considered a Covered Life, and these Covered Lives
cannot be subsequently changed.
For tax-qualified Contracts, the Owner and primary spousal Beneficiary cannot be
changed while both are living. If the Owner dies first, the primary spousal
Beneficiary will become the Owner upon Spousal Continuation and he or she may
name a Beneficiary; however, that Beneficiary is not considered a Covered Life.
Likewise, if the primary spousal Beneficiary dies first, the Owner may name a
new Beneficiary; however, that Beneficiary is also not considered a Covered
Life.
For both non-qualified and tax-qualified Contracts, this GMWB guarantees partial
withdrawals during the Contract's accumulation phase (i.e., before the Income
Date) for the longer of:
o The lifetime of the last surviving Covered Life if the For
Life Guarantee is in effect;
The For Life Guarantee becomes effective on the Contract
Anniversary on or immediately following the youngest
Covered Life's 65th birthday. If the youngest Covered
Life is 65 years old or older on the endorsement's
effective date, then the For Life Guarantee is effective
when this GMWB is added to the Contract.
So long as the For Life Guarantee is in effect,
withdrawals are guaranteed even in the event Contract
Value is reduced to zero.
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future
periodic withdrawals.
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB are subject to the
endorsement's terms, conditions, and limitations that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Covered Lives 45 to 80 years old (proof of age is
required and both Covered Lives must be within the eligible age range). If the
age of any Covered Life is incorrectly stated at the time of election of the
GMWB, on the date the misstatement is discovered, the Contract Value will be
adjusted by the difference between the charges actually paid and the charges
that would have been paid assuming the correct age. Future GMWB charges will be
based on the correct age. If the age at election of either Covered Life falls
outside the allowable age range, the GMWB will be null and void and all GMWB
charges will be refunded.
This GMWB may be added to a Contract on the Issue Date or on any Contract
Anniversary and, if added prior to January 16, 2007, it cannot be canceled
except by a Spousal Beneficiary, who, upon the Owner's death, may elect to
continue the Contract without the GMWB. If this GMWB is added on January 16,
2007 or later, then it cannot be canceled except by a spousal Beneficiary who is
not
104
a Covered Life, who, upon the Owner's death, may elect to continue the Contract
without the GMWB. To continue joint GMWB coverage upon the death of the Owner
(or the death of either joint Owner of a non-qualified Contract), provided that
the other Covered Life is still living, the Contract must be continued by
election of Spousal Continuation. Upon continuation, the spouse becomes the
Owner and obtains all rights as the Owner.
At least 30 calendar days' prior notice and proof of age is required for Good
Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB is not
available on a Contract that already has a GMWB (only one GMWB per Contract) or
a Guaranteed Minimum Income Benefit (GMIB). Availability of this GMWB may be
subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect, which is the maximum of the Guaranteed Annual
Withdrawal Amount (GAWA) or the required minimum distribution. Withdrawals
exceeding the limit do not invalidate the For Life Guarantee, but cause the GWB
and GAWA to be recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 5% of the GWB.
--------------------------------------------------------------------------
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the applicable recapture charge on any
Contract Enhancement.
The GAWA equals 5% of the GWB.
--------------------------------------------------------------------------
PLEASE NOTE: At the time the For Life Guarantee becomes effective, the GAWA is
reset to equal 5% of the then current GWB.
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA, or for certain
tax-qualified Contracts only, the RMD (if greater than the GAWA). The two tables
below clarify what happens in either instance. RMD denotes the required minimum
distribution under the Internal Revenue Code for certain tax-qualified Contracts
only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year.
105
Withdrawing less than the greater of the GAWA or RMD, as applicable, in a
Contract Year does not entitle you to withdraw more than the greater of the GAWA
or RMD, as applicable, in the next Contract Year. The amount you may withdraw
each Contract Year and not cause the GWB and GAWA to be recalculated does not
accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount - even set equal to the Contract Value (less any
recapture charge on any Contract Enhancement). The GAWA is also potentially
impacted.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o 5% of the Contract Value after the withdrawal less any
recapture charge on any Contract Enhancement; Or
o The greater of 5% of the GWB after the withdrawal, or zero.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the For
Life Guarantee may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of the RMD for each of the two calendar
years occurring in that Contract Year and the GAWA for that Contract Year,
then the GWB and GAWA could be adversely recalculated, as described above.
(If your Contract Year is the same as the calendar year, then the sum of
your total partial withdrawals should not exceed the greater of the RMD
and the GAWA.) Below is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
--------------------------------------------------------------------------
106
--------------------------------------------------------------------------
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
--------------------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 5% of the premium net of any applicable premium taxes; Or
o 5% of the increase in the GWB - if the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 5% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
The first opportunity for a Step-Up is the fifth Contract Anniversary after this
GMWB is added to the Contract. During the first ten Contract Years after this
GMWB is added to the Contract, Step-Ups are only allowed on or during the 30-day
period following a Contract Anniversary. Thereafter, a Step-Up is allowed at any
time, but there must always be at least five years between Step-Ups. The GWB can
never be more than $5 million with a Step-Up. A request for Step-Up is processed
and effective on the date received in Good Order. Please consult the
representative who helped you purchase your Contract to be sure if a Step-Up is
right for you and about any increase in charges upon a Step-up. Upon election of
a Step-Up, the applicable GMWB charge will be reflected in your confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon the death of the sole Owner of a non-qualified Contract
or upon the death of either joint Owner of a non-qualified Contract while the
Contract is still in force and before the Income Date, this GMWB terminates
without value unless continued by the spouse. Please see the information
beginning on page 104 regarding the required ownership and Beneficiary structure
under both qualified and non-qualified Contracts when selecting the Joint 5% For
Life GMWB With Bonus and Five-Year Step-Up benefit.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect and
the Contract is still in the accumulation phase. Otherwise, payments will be
made while there is value to the GWB (until depleted), so long as the Contract
is still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
107
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's (or either joint Owner's)
death, the surviving spousal Beneficiary may elect to:
o Continue the Contract with this GMWB - so long as the Contract
Value is greater than zero, and the Contract is still in the
accumulation phase. (The date the spousal Beneficiary's
election to continue the Contract is in Good Order is called
the Continuation Date.)
o If the surviving spouse is a Covered Life and the
For Life Guarantee is already in effect, then the
For Life Guarantee remains effective on and after
the Continuation Date. If the For Life Guarantee
is not already in effect and the surviving spouse
is a Covered Life, the For Life Guarantee becomes
effective on the Contract Anniversary on or
immediately following the youngest original
Covered Life's 65th birthday, and the above rules
for the For Life Guarantee apply. The effective
date of the For Life Guarantee will be set on the
effective date of the endorsement.
o If the surviving spouse is not a Covered Life, the
For Life Guarantee is null and void. However, the
surviving spouse will be entitled to make
withdrawals until the GWB is exhausted.
o For a surviving spouse who is a Covered Life,
continuing the Contract with this GMWB is
necessary to be able to fully realize the benefit
of the For Life Guarantee. The For Life Guarantee
is not a separate guarantee and only applies if
the related GMWB has not terminated.
o The spouse may elect to step-up the Contract Value
on the first Contract Anniversary on or
immediately following the Continuation Date;
otherwise, the above rules for Step-Up apply.
o Bonuses will continue to apply according to the
rules below for Bonuses.
o Contract Anniversaries and Contract Years will
continue to be based on the original Contract's
Issue Date.
o A new joint Owner may not be added if a surviving
spouse continues the Contract.
o A new joint Owner may not be added in a
non-qualified Contract if a surviving spouse
continues the Contract.
o Continue the Contract without this GMWB (GMWB is terminated)
if the GMWB was added to the Contract prior to January 16,
2007. Thereafter, no GMWB charge will be assessed.
o Continue the Contract without this GMWB (GMWB is terminated)
if this GMWB was added to the Contract on January 16, 2007 or
later and if the surviving spouse is not a Covered Life.
Thereafter, no GMWB charge will be assessed. If the surviving
spouse is a Covered Life, the Contract cannot be continued
without this GMWB.
108
o Add another GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
spousal Beneficiary's eligibility, and provided that
this GMWB was terminated on the Continuation Date.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of death of the Owner (or either joint Owner),
unless the Beneficiary who is the Owner's spouse elects
to continue the Contract with the GMWB (continuing the
Contract with this GMWB is necessary to be able to fully
realize the benefit of the For Life Guarantee if the
surviving spouse is a Covered Life);
o The Continuation Date on a Contract in which this GMWB
was added prior to January 16, 2007 if the spousal
Beneficiary elects to continue the Contract without the
GMWB;
o The Continuation Date on a Contract in which this GMWB
was added on January 16, 2007 or later, if the spousal
Beneficiary, who is not a Covered Life, elects to
continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract Value is zero.
Annuitization.
Joint Life Income of GAWA. On the Latest Income Date if the For Life
Guarantee is in effect, the Owner may choose this income option instead of
one of the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of last
surviving Covered Life. The total annual amount payable will equal the
GAWA in effect at the time of election of this option. This annualized
amount will be paid in the frequency (no less frequently than annually)
that the Owner selects. No further annuity payments are payable after the
death of the last surviving Covered Life, and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if both
Covered Lives die before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary and the spousal Beneficiary is not a Covered Life in which
case the spouse becomes the Owner of the Contract and the Latest Income
Date is based on the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
109
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The description of the bonus feature is supplemented by the examples in
Appendix D, particularly example 8. The bonus is an incentive for you not to
utilize this GMWB (take withdrawals) during a limited period of time, subject to
conditions and limitations, allowing the GWB and GAWA to increase (even in a
down market relative to your Contract Value allocated to any Investment
Divisions). The increase, however, may not equal the amount that your Contract
Value has declined. The bonus is a percentage of a sum called the Bonus Base
(defined below). The box below has more information about the bonus, including:
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a
withdrawal, premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the
GWB.
--------------------------------------------------------
The bonus equals 5% and is based on a sum that may vary
after this GMWB is added to the Contract (the "Bonus
Base"), as described immediately below.
o When this GMWB is added to the Contract,
the Bonus Base equals the GWB.
o With a withdrawal, if that withdrawal, and
all prior withdrawals in the current
Contract Year, exceeds the GAWA, then the
Bonus Base is set to the lesser of the GWB
after, and the Bonus Base before, the
withdrawal. Otherwise, there is no
adjustment to the Bonus Base with
withdrawals.
o All withdrawals count,
including: systematic
withdrawals; RMDs for certain
tax-qualified Contracts;
withdrawals of asset allocation
and advisory fees; and free
withdrawals under the Contract.
o A withdrawal in a Contract
Year during the Bonus Period
(defined below) precludes a
bonus for that Contract Year.
o With a premium payment, the Bonus Base
increases by the amount of the premium net
of any applicable premium taxes.
o With any Step-Up, the Bonus Base is set to
the greater of the GWB after, and the Bonus
Base before, the Step-Up.
The Bonus Base can never be more than $5 million.
The Bonus is available for a limited time (the "Bonus
Period"). The Bonus Period runs from the date this GMWB
is added to the Contract through the earliest of:
o The tenth Contract Anniversary after the
effective date of the endorsement;
o The Contract Anniversary on or immediately
following the youngest joint Owner's 81st
birthday; or
o The date Contract Value is zero.
Spousal continuation of a Contract with this GMWB does
not affect the Bonus Period; Contract Anniversaries are
based on the Contract's Issue Date.
The bonus is applied at the end of each Contract Year
during the Bonus Period, if there have been no
withdrawals during that Contract Year. Conversely, any
withdrawal, including but not limited to systematic
withdrawals and required minimum distributions, taken in
a Contract Year during the Bonus Period causes the bonus
not to be applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 5%
of the Bonus Base.
o The GAWA is then recalculated, equaling
the greater of 5% of the new GWB and the
GAWA before the bonus.
Applying the bonus to the GWB does not affect the Bonus
Base.
--------------------------------------------------------------------------------
Conversion. You may convert this Joint 5% for Life GMWB With Bonus and Five-Year
Step-Up to the Joint For Life GMWB With
110
Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint Option). Conversion
may reduce the dollar amount of your withdrawals available under the new benefit
versus the old benefit because the recalculated GWB under the new benefit takes
into account any negative investment performance under your Contract. For
conversion, the new benefit must be available at the time of election and you
must meet the eligibility requirements for the new benefit. In addition, Covered
Lives must remain the same upon conversion. Conversion is permitted on any
Contract Anniversary before December 6, 2009. A request in Good Order for
conversion is due 30 days before a Contract Anniversary for the conversion to
take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the Joint 5% for Life GMWB With Bonus and Five-Year Step-Up that are due
upon termination of the original endorsement. Since the Contract Value includes
any previously applied Contract Enhancement, we subtract any applicable
recapture charge from the Contract Value to calculate the new GWB under the new
endorsement; therefore, in calculating the new GWB, a recapture charge
associated with any Contract Enhancement will reduce the new GWB below the
Contract Value at conversion. (See Example 1c in Appendix D.) Regarding your
GAWA, a new GAWA is determined according to the rules under the new endorsement.
We will send you the new endorsement. Upon conversion, all conditions, rules,
benefits, charges and limitations of the new optional withdrawal benefit will
apply to you. The charge of the new benefit will be higher than that currently
charged for this Joint 5% for Life GMWB With Bonus and Five-Year Step-Up.
Conversion is not a right under the Contract or endorsement. We currently allow
conversions, and we may discontinue doing so at any time in the future. In
addition, no more than two conversions are currently allowed over the life of a
Contract.
There are several important factors to consider when deciding whether to convert
your Joint 5% for Life GMWB With Bonus and Five-Year Step-Up. Converting your
Joint 5% for Life GMWB With Bonus and Five-Year Step-Up to LifeGuard Freedom
GMWB with Joint Option may be advantageous if you desire the potential for a GWB
adjustment, re-determination of the GAWA% and annual Step-Ups of the GWB to the
highest quarterly Contract Value over the life of the Contract (so long as the
Contract is in the accumulation phase). For LifeGuard Freedom GMWB with Joint
Option, subject to the age at which you convert, the bonus provision may
increase your GWB if no withdrawals are taken over a certain period, even if the
GWB does not increase upon Step-Ups. Additionally, the For Life Guarantee is
effective on the Contract Anniversary on or immediately following the youngest
Covered Life's attained age of 59 1/2 for LifeGuard Freedom GMWB with Joint
Option, instead of the attained age of 65 under your Joint 5% for Life GMWB With
Bonus and Five-Year Step-Up. However, as noted above, you will be increasing the
cost of your GMWB when converting to the new benefit. Because the GAWA
percentage under LifeGuard Freedom GMWB with Joint Option varies according to
age group (the younger the age group, the lower the GAWA percentage) and is
determined based on the attained age at the time of the first withdrawal, your
GAWA percentage may increase or decrease, depending on the age at which you
convert and depending on when you take your first withdrawal after conversion.
Finally, the new GWB upon any conversion of your Joint 5% for Life GMWB With
Bonus and Five-Year Step-Up would be equal to the Contract Value at the time of
the conversion. As a result, if the GWB in your current GMWB is higher than your
Contract Value, your GWB will decrease upon conversion. In addition, the new
GAWA will be based on the new GWB of the new benefit after conversion. (See
Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up ("LifeGuard
Ascent"). The following description of this GMWB is supplemented by the examples
in Appendix D, particularly example 2 for the varying benefit percentage and
examples 6 and 7 for the Step-Ups.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
This GMWB guarantees partial withdrawals during the Contract's accumulation
phase (i.e., before the Income Date) for the longer of:
o The Owner's life (the "For Life Guarantee") if the For
Life Guarantee is in effect;
The For Life Guarantee is based on the life of the
first Owner to die with joint Owners. There are
also other GMWB options for joint Owners that are
spouses, as described below.
For the Owner that is a legal entity, the For Life
Guarantee is based on the Annuitant's life (or the
life of the first Annuitant to die if there is
more than one Annuitant).
The For Life Guarantee becomes effective when this
GMWB is added to the Contract.
111
So long as the For Life Guarantee is in effect,
withdrawals are guaranteed even in the event
Contract Value is reduced to zero.
Or
o Until all withdrawals under the Contract equal the
Guaranteed Withdrawal Balance (GWB), without regard to
Contract Value.
The GWB is the guaranteed amount available for
future periodic withdrawals.
Because of the For Life Guarantee, your withdrawals could
amount to more than the GWB. But PLEASE NOTE: The guarantees
of this GMWB are subject to the endorsement's terms,
conditions, and limitations that are explained below.
Please consult the representative who helped you purchase your Contract to be
sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 45 to 85 years old (proof of age is required);
may be added to a Contract on the Issue Date or any Contract Anniversary; and
once added cannot be canceled except by a Beneficiary who is the Owner's spouse,
who, upon the Owner's death, may elect to continue the Contract without the
GMWB. At least 30 calendar days' prior notice and proof of age is required for
Good Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB
is not available on a Contract that already has a GMWB (only one GMWB per
Contract) or a Guaranteed Minimum Income Benefit (GMIB). We allow ownership
changes of a Contract with this GMWB when the Owner is a legal entity - to
another legal entity or the Annuitant. Otherwise, ownership changes are not
allowed. When the Owner is a legal entity, changing Annuitants is not allowed.
Availability of this GMWB may be subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit do not invalidate the For Life Guarantee, but cause the GWB and GAWA to be
recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals initial premium net of any applicable premium taxes.
The GAWA is determined based on the Owner's attained age at the time of
first withdrawal and equals the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. See the GAWA percentage table below.
The For Life Guarantee becomes effective on the Contract Issue Date.
--------------------------------------------------------------------------
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any Contract
Enhancement.
The GAWA is determined based on the Owner's attained age at the time of
first withdrawal and equals the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. See the GAWA percentage table below.
The For Life Guarantee becomes effective on the Contract Anniversary on
which the endorsement is added.
-------------------------------------------------------------------------
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
PLEASE NOTE: Upon the Owner's death, the For Life Guarantee is void. However,
this GMWB might be continued by a spousal Beneficiary without the For Life
Guarantee. Please see the "Spousal Continuation" subsection below for more
information.
Withdrawals. The GAWA percentage and the GAWA are determined at the time of the
first withdrawal. The GAWA is equal to the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. The GAWA percentage varies according to age
group and
112
is determined based on the Owner's attained age at the time of the first
withdrawal. If there are joint Owners, the GAWA percentage is based on the
attained age of the oldest joint Owner. (In the examples in Appendix D and
elsewhere in this prospectus we refer to this varying GAWA percentage structure
as the "varying benefit percentage".) The GAWA percentage for each age group is:
Ages GAWA Percentage
-------------------------
45 - 59 4%
60 - 74 5%
75 - 84 6%
85+ 7%
Withdrawals cause the GWB to be recalculated. Withdrawals may also cause the
GAWA to be recalculated, depending on whether or not the withdrawal, plus all
prior withdrawals in the current Contract Year, is less than or equal to the
GAWA, or for certain tax-qualified Contracts only, the RMD (if greater than the
GAWA). The two tables below clarify what happens in either instance. RMD denotes
the required minimum distribution under the Internal Revenue Code for certain
tax-qualified Contracts only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and not cause the GWB and GAWA to be
recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount. The GAWA is also likely to be reduced.
113
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable, and this
---------------------------------------------------------------------
endorsement was added to your Contract on or after December 3, 2007 -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any portion of the partial withdrawal
not defined as an Excess Withdrawal (see below), then reduced
in the same proportion that the Contract Value is reduced by
the Excess Withdrawal; Or
o Zero.
The GAWA is recalculated as follows:
o If the For Life Guarantee is in force, the GAWA prior to the
partial withdrawal is reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal.
o If the For Life Guarantee is not in force, the GAWA is equal
to the lesser of:
o The GAWA prior to the partial withdrawal reduced
in the same proportion that the Contract Value is
reduced by the Excess Withdrawal, Or
o The GWB after the withdrawal.
--------------------------------------------------------------------------
The Excess Withdrawal is defined to be the lesser of:
o The total amount of the current partial withdrawal, or
o The amount by which the cumulative partial withdrawals
for the current Contract Year exceeds the greater of the
GAWA or the RMD, as applicable.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable, and this
---------------------------------------------------------------------
endorsement was added to your Contract before December 3, 2007 -
--------------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o The GAWA percentage multiplied by the Contract Value after the
withdrawal less the recapture charge on any Contract
Enhancement; Or
o The GAWA percentage multiplied by the GWB after the
withdrawal.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an interest rate adjustment. Withdrawals may be
subject to a recapture charge on any Contract Enhancement. Withdrawals in excess
of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
If the age of any Owner is incorrectly stated at the time of election of the
GMWB, on the date the misstatement is discovered, the GWB and the GAWA will be
recalculated based on the GAWA percentage applicable at the correct age. Any
future GAWA percentage recalculation will be based on the correct age. If the
age at election of the Owner (or oldest joint Owner) falls outside the allowable
age range, the GMWB will be null and void and all GMWB charges will be refunded.
-----------------------------------------------------------------
RMD NOTES: Notice of an RMD is required at the time of your
withdrawal request, and there is an administrative form for such
notice. The administrative form allows for one time or systematic
withdrawals. Eligible withdrawals that are specified
-----------------------------------------------------------------
114
-----------------------------------------------------------------
as RMDs may only be taken based on the value of the Contract to
which the endorsement applies, even where the Internal Revenue
Code allows for the taking of RMDs for multiple contracts from a
single contract. Initiating and monitoring for compliance with
the RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the For
Life Guarantee may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of the RMD for each of the two calendar
years occurring in that Contract Year and the GAWA for that Contract Year,
then the GWB and GAWA could be adversely recalculated, as described above.
(If your Contract Year is the same as the calendar year, then the sum of
your total partial withdrawals should not exceed the greater of the RMD
and the GAWA.) Below is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year
that runs from July 1 to June 30, and that there are
no withdrawals other than as described. The GAWA for
the 2008 Contract Year (ending June 30) is $10. The
RMDs for calendar years 2007 and 2008 are $14 and
$16, respectively.
If the Owner takes $7 in each of the two halves of
calendar year 2007 and $8 in each of the two halves
of calendar year 2008, then at the time the
withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the
sum of the Owner's withdrawals for the 2008 Contract
Year is less than the higher RMD for either of the
two calendar years occurring in that Contract Year,
the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in
which your RMDs are to begin (generally, when you reach age 70 1/2),
however, you may take your RMDs for the current and next calendar
years during the same Contract Year, as necessary (see example
below).
The following example illustrates this exception. It
assumes an individual Owner, born January 1, 1937, of
a tax-qualified Contract with a Contract Year that
runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007
RMD) until March 30, 2008, he may still take the 2008
RMD before the next Contract Year begins, June 30,
2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he
takes his second RMD (the 2008 RMD) after June 30,
2008, he should wait until the next Contract Year
begins (that is after June 30, 2009) to take his
third RMD (the 2009 RMD). Because, except for the
calendar year in which RMDs begin, taking two RMDs in
a single Contract Year could cause the GWB and GAWA
to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific
factual assumptions, are at the end of the prospectus in Appendix D,
particularly examples 4, 5, and 7. Please consult the representative
who helped you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs
relative to your RMD.
-----------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
If the premium payment is received after the first withdrawal, the GAWA is
also recalculated, increasing by:
o The GAWA percentage multiplied by the subsequent premium
payment net of any applicable premium taxes; Or
o The GAWA percentage multiplied by the increase in the GWB - if
the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
In addition to an increase in the GWB, a Step-Up allows for a potential increase
in the GAWA percentage in the event that the Step-Up occurs after the first
withdrawal. The value used to determine whether the GAWA percentage will
increase upon Step-Up is called
115
the Benefit Determination Base (BDB). The BDB equals initial premium net of any
applicable premium taxes, if this GMWB is elected at issue, or the Contract
Value on the Contract Anniversary on which the endorsement is added less the
recapture charge that would be assessed on a full withdrawal for any Contract
Enhancement, if elected after issue. Withdrawals do not affect the BDB.
Subsequent premium payments increase the BDB by the amount of the premium net of
any applicable premium taxes. In addition, unlike the GWB, the BDB is not
subject to any maximum amount. Therefore, it is possible for the BDB to be more
than $5 million.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value (subject to a $5 million maximum).
If the Contract Value is greater than the BDB prior to the Step-Up then
the BDB is set to equal the Contract Value (not subject to any maximum
amount); and, if the Step-Up occurs after the first withdrawal, the GAWA
percentage is recalculated based on the attained age of the Owner.
o If there are joint Owners, the GAWA percentage is recalculated
based on the oldest joint Owner.
o The GAWA percentage will not be recalculated upon step-ups
following Spousal Continuation.
If the Step-Up occurs after the first withdrawal, the GAWA is
recalculated, equaling the greater of:
o The GAWA percentage multiplied by the new GWB, Or
o The GAWA prior to Step-Up.
--------------------------------------------------------------------------
PLEASE NOTE: Withdrawals from the Contract reduce the GWB and Contract Value but
do not affect the BDB. In the event of withdrawals, the BDB remains unchanged.
Therefore, because the Contract Value must be greater than the BDB prior to
Step-Up in order for the GAWA percentage to increase, a GAWA percentage increase
may become less likely when continuing withdrawals are made from the Contract.
Step-Ups occur automatically upon each of the first ten Contract Anniversaries
from the endorsement's effective date. Thereafter, a Step-Up is allowed at any
time upon your request, so long as there is at least one year between Step-Ups.
The GWB can never be more than $5 million with a Step-Up. However, automatic
Step-Ups still occur and elected Step-Ups are still permitted even when the GWB
is at the maximum of $5 million if the Contract Value is greater than the BDB
and the GAWA percentage would increase. A request for Step-Up is processed and
effective on the date received in Good Order. Please consult the representative
who helped you purchase your Contract to be sure if a Step-Up is right for you
and about any increase in charges upon a Step-Up. Upon election of a Step-Up,
the applicable GMWB charge will be reflected in your confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners) while the Contract is still in force, this GMWB terminates without
value.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect and
the Contract is still in the accumulation phase. Otherwise, payments will be
made while there is value to the GWB (until depleted), so long as the Contract
is still in the accumulation phase. If the GAWA percentage has not yet been
determined, it will be set at the GAWA percentage corresponding to the Owner's
(or oldest joint Owner's) attained age at the time the Contract Value falls to
zero.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
Payments are made on the periodic basis you elect, but no less frequently than
annually. If you die before all scheduled payments are made, then your
Beneficiary will receive the remainder. All other rights under your Contract
cease, except for the right to change Beneficiaries. No subsequent premium
payments will be accepted. All optional endorsements terminate without value.
And no other death benefit is payable.
116
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract is in
Good Order is called the Continuation Date.)
o Upon the Owner's death, the For Life
Guarantee is void.
o Only the GWB is payable while there is value
to it (until depleted).
o Step-Ups will continue automatically or as
permitted; otherwise, the above rules for
Step-Ups apply.
o Contract Anniversaries will continue to be
based on the Contract's Issue Date.
o If the GAWA percentage has not yet been
determined, the GAWA percentage will be
based on the Owner's (or oldest joint
Owner's) attained age at the time of death.
The GAWA percentage will not change on
future Step-Ups, even if the Contract Value
exceeds the BDB.
o The Latest Income Date is based on the age
of the surviving spouse. Please refer to
"Annuitization" subsection below for
information regarding the availability of
the "Specified Period Income of the GAWA"
option if the GWB has been continued by a
spousal Beneficiary upon the death of the
original Owner.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
Beneficiary's eligibility - whether or not the spousal
Beneficiary terminated the GMWB in continuing the
Contract.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB;
o The Continuation Date if the spousal Beneficiary elects
to continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract has been terminated.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only
117
one annuity payment to be made under this Income Option if the Owner dies
before the due date of the second payment.
If the GAWA percentage has not yet been determined, the GAWA percentage
will be based on the Owner's (or oldest joint Owner's) attained age at the
time of election of this option. The GAWA percentage will not change after
election of this option.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the original Owner, in which case the spouse
becomes the Owner of the Contract and the Latest Income Date is based on
the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Conversion. You may convert this For Life GMWB With Annual Step-Up to the For
Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB) or the Joint
For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint
Option). Conversion may reduce the dollar amount of your withdrawals available
under the new benefit versus the old benefit because the recalculated GWB under
the new benefit takes into account any negative investment performance under
your Contract. For conversion, the new benefit must be available at the time of
election and you must meet the eligibility requirements for the new benefit.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the For Life GMWB With Annual Step-Up that are due upon termination of the
original endorsement. Since the Contract Value includes any previously applied
Contract Enhancement, we subtract any applicable recapture charge from the
Contract Value to calculate the new GWB under the new endorsement; therefore, in
calculating the new GWB, a recapture charge associated with any Contract
Enhancement will reduce the new GWB below the Contract Value at conversion. (See
Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is determined
according to the rules under the new endorsement. We will send you the new
endorsement. Upon conversion, all conditions, rules, benefits, charges and
limitations of the new optional withdrawal benefit will apply to you. The charge
of LifeGuard Freedom GMWB will the same as that currently charged for this For
Life GMWB With Annual Step-Up. The charge of LifeGuard Freedom GMWB with Joint
Option will be higher than that currently charged for this For Life GMWB With
Bonus and Annual Step-Up. Conversion is not a right under the Contract or
endorsement. We currently allow conversions, and we may discontinue doing so at
any time in the future. In addition, no more than two conversions are currently
allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your For Life GMWB With Annual Step-Up. Converting your For Life GMWB With
Annual Step-Up to LifeGuard Freedom GMWB or LifeGuard Freedom GMWB with Joint
Option may be advantageous if you desire the potential for a GWB adjustment,
annual Step-Ups of the GWB to the highest quarterly Contract Value over the life
of the Contract (so long as the Contract is in the accumulation phase), and the
bonus provision that may increase your GWB if no withdrawals are taken over a
certain period, even if the GWB does not increase upon the Step-Ups. In
addition, conversion to LifeGuard Freedom GMWB with Joint Option will provide
spousal continuation of the lifetime income feature. However, as noted above,
you will be increasing the cost of your GMWB when converting to LifeGuard
Freedom GWMB
118
with Joint Option. Furthermore, the For Life Guarantee is not effective until
the Contract Anniversary on or immediately following the Owner's (or with joint
Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard Freedom GMWB or
the youngest Covered Life's attained age of 59 1/2 for LifeGuard Freedom GMWB
with Joint Option instead of on the effective date of the endorsement under your
For Life GMWB With Annual Step-Up. Because the GAWA percentage under LifeGuard
Freedom GMWB and LifeGuard Freedom GMWB with Joint Option varies according to
age group (the younger the age group, the lower the GAWA percentage) and is
determined based on the attained age at the time of the first withdrawal, your
GAWA percentage may increase or decrease, depending on the age at which you
convert and depending on when you take your first withdrawal after conversion.
Finally, the new GWB upon any conversion of your For Life GMWB With Annual
Step-Up would be equal to the Contract Value at the time of the conversion. As a
result, if the GWB in your current GMWB is higher than your Contract Value, your
GWB will decrease upon conversion. In addition, the new GAWA will be based on
the new GWB of the new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
Joint For Life Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
("LifeGuard Ascent With Joint Option"). The description of this GMWB is
supplemented by the examples in Appendix D, particularly example 2 for the
varying benefit percentage, examples 6 and 7 for the Step-Ups and example 10 for
the For Life guarantees.
PLEASE NOTE: EFFECTIVE MARCH 31, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
The election of this GMWB under a non-qualified Contract requires the joint
Owners to be spouses (as defined under the Internal Revenue Code) and each joint
Owner is considered to be a "Covered Life."
The Owners cannot be subsequently changed and new Owners cannot be added. Upon
death of either joint Owner, the surviving joint Owner will be treated as the
primary Beneficiary and all other Beneficiaries will be treated as contingent
Beneficiaries. The For Life Guarantee will not apply to these contingent
Beneficiaries, as they are not Covered Lives.
This GMWB is available on a limited basis under non-qualified Contracts for
certain kinds of legal entities, such as (i) custodial accounts where the
spouses are the joint Annuitants and (ii) trusts where the spouses are the sole
beneficial owners, and the For Life Guarantee is based on the Annuitant's life
who dies last.
Tax-qualified Contracts cannot be issued to joint Owners and require the Owner
and Annuitant to be the same person. Under a tax-qualified Contract, the
election of this GMWB requires the Owner and primary Beneficiary to be spouses
(as defined in the Internal Revenue Code). The Owner and only the primary
spousal Beneficiary named at the election of this GMWB under a tax-qualified
Contract will also each be considered a Covered Life, and these Covered Lives
cannot be subsequently changed.
For tax-qualified Contracts, the Owner and primary spousal Beneficiary cannot be
changed while both are living. If the Owner dies first, the primary spousal
Beneficiary will become the Owner upon Spousal Continuation and he or she may
name a Beneficiary; however, that Beneficiary is not considered a Covered Life.
Likewise, if the primary spousal Beneficiary dies first, the Owner may name a
new Beneficiary; however, that Beneficiary is also not considered a Covered Life
and consequently the For Life Guarantee will not apply to the new Beneficiary.
For both non-qualified and tax-qualified Contracts, this GMWB guarantees partial
withdrawals during the Contract's accumulation phase (i.e., before the Income
Date) for the longer of:
o The lifetime of the last surviving Covered Life if the For Life
Guarantee is in effect;
The For Life Guarantee becomes effective when this GMWB is
added to the Contract.
So long as the For Life Guarantee is in effect, withdrawals
are guaranteed even in the event Contract Value is reduced to
zero.
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future periodic
withdrawals.
119
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB are subject to the
endorsement's terms, conditions, and limitations that are explained below.
Please consult the representative who helped you purchase your Contract to be
sure that this GMWB ultimately suits your needs.
This GMWB is available to Covered Lives 45 to 85 years old (proof of age is
required and both Covered Lives must be within the eligible age range). This
GMWB may be added to a Contract on the Issue Date or on any Contract Anniversary
and cannot be canceled except by a spousal Beneficiary who is not a Covered
Life, who, upon the Owner's death, may elect to continue the Contract without
the GMWB. To continue joint GMWB coverage upon the death of the Owner (or the
death of either joint Owner of a non-qualified Contract), provided that the
other Covered Life is still living, the Contract must be continued by election
of Spousal Continuation. Upon continuation, the spouse becomes the Owner and
obtains all rights as the Owner.
At least 30 calendar days' prior notice and proof of age is required for Good
Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB is not
available on a Contract that already has a GMWB (only one GMWB per Contract) or
a Guaranteed Minimum Income Benefit (GMIB). Availability of this GMWB may be
subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit do not invalidate the For Life Guarantee, but cause the GWB and GAWA to be
recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals initial premium net of any applicable premium taxes.
The GAWA is determined based on the youngest Covered Life's attained age
at the time of first withdrawal and equals the GAWA percentage multiplied
by the GWB prior to the partial withdrawal. See the GAWA percentage table
below.
The For Life Guarantee becomes effective on the Contract Issue Date.
--------------------------------------------------------------------------
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any Contract
Enhancement.
The GAWA is determined based on the youngest Covered Life's attained age
at the time of first withdrawal and equals the GAWA percentage multiplied
by the GWB prior to the partial withdrawal. See the GAWA percentage table
below.
The For Life Guarantee becomes effective on the Contract Anniversary on
which the endorsement is added.
--------------------------------------------------------------------------
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
PLEASE NOTE: Upon the Owner's death, the For Life Guarantee is void unless this
GMWB is continued by a spousal Beneficiary who is a Covered Life. However, it is
possible for this GMWB to be continued without the For Life Guarantee by a
spousal Beneficiary who is not a Covered Life. Please see the "Spousal
Continuation" subsection below for more information.
Withdrawals. The GAWA percentage and the GAWA are determined at the time of the
first withdrawal. The GAWA is equal to the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. The GAWA percentage varies according to age
group and is determined based on the youngest Covered Life's attained age at the
time of the first withdrawal. (In the examples in Appendix D and elsewhere in
this prospectus we refer to this varying GAWA percentage structure as the
"varying benefit percentage".) The GAWA percentage for each age group is:
Ages GAWA Percentage
--------- ---------------
45 - 59 4%
60 - 74 5%
75 - 84 6%
85+ 7%
120
Withdrawals cause the GWB to be recalculated. Withdrawals may also cause the
GAWA to be recalculated, depending on whether or not the withdrawal, plus all
prior withdrawals in the current Contract Year, is less than or equal to the
GAWA, or for certain tax-qualified Contracts only, the RMD (if greater than the
GAWA). The tables below clarify what happens in either instance. RMD denotes the
required minimum distribution under the Internal Revenue Code for certain
tax-qualified Contracts only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and not cause the GWB and GAWA to be
recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount. The GAWA is also likely to be reduced.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable, and this
---------------------------------------------------------------------
endorsement was added to your Contract on or after December 3, 2007 -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any portion of the partial withdrawal
not defined as an Excess Withdrawal (see below), then reduced
in the same proportion that the Contract Value is reduced by
the Excess Withdrawal; Or
o Zero.
The GAWA is recalculated as follows:
o If the For Life Guarantee is in force, the GAWA prior to the
partial withdrawal is reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal.
o If the For Life Guarantee is not in force, the GAWA is equal
to the lesser of:
o The GAWA prior to the partial withdrawal reduced
in the same proportion that the Contract Value is
reduced by the Excess Withdrawal, Or
o The GWB after the withdrawal.
--------------------------------------------------------------------------
The Excess Withdrawal is defined to be the lesser of:
o The total amount of the current partial withdrawal, or
o The amount by which the cumulative partial withdrawals
for the current Contract
121
Year exceeds the greater of the GAWA or the RMD, as
applicable.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable, and this
---------------------------------------------------------------------
endorsement was added to your Contract before December 3, 2007 -
--------------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated, equaling the lesser of:
o The GAWA percentage multiplied by the Contract Value after the
withdrawal less the recapture charge on any Contract
Enhancement; Or
o The GAWA percentage multiplied by the GWB after the
withdrawal.
--------------------------------------------------------------------------
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an interest rate adjustment. Withdrawals may be
subject to a recapture charge on any Contract Enhancement. Withdrawals in excess
of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
If the age of any Covered Life is incorrectly stated at the time of election of
the GMWB, on the date the misstatement is discovered, the GWB and the GAWA will
be recalculated based on the GAWA percentage applicable at the correct age. Any
future GAWA percentage recalculation will be based on the correct age. If the
age at election of either Covered Life falls outside the allowable age range,
the GMWB will be null and void and all GMWB charges will be refunded.
--------------------------------------------------------------------------
RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the For
Life Guarantee may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of the RMD for each of the two calendar
years occurring in that Contract Year and the GAWA for that Contract Year,
then the GWB and GAWA could be adversely recalculated, as described above.
(If your Contract Year is the same as the calendar year, then the sum of
your total partial withdrawals should not exceed the greater of the RMD
and the GAWA.) Below is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of
--------------------------------------------------------------------------
122
--------------------------------------------------------------------------
adverse recalculation. However, if he takes his second RMD (the 2008
RMD) after June 30, 2008, he should wait until the next Contract
Year begins (that is after June 30, 2009) to take his third RMD (the
2009 RMD). Because, except for the calendar year in which RMDs
begin, taking two RMDs in a single Contract Year could cause the GWB
and GAWA to be adversely recalculated (if the two RMDs exceeded the
applicable GAWA for that Contract Year).
Examples that are relevant specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who helped you
purchase your tax-qualified Contract, and your tax adviser, to be sure
that this GMWB ultimately suits your needs relative to your RMD.
--------------------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
If the premium payment is received after the first withdrawal, the GAWA is
also recalculated, increasing by:
o The GAWA percentage multiplied by the subsequent premium
payment net of any applicable premium taxes; Or
o The GAWA percentage multiplied by the increase in the GWB - if
the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
In addition to an increase in the GWB, a Step-Up allows for a potential increase
in the GAWA percentage in the event that the Step-Up occurs after the first
withdrawal. The value used to determine whether the GAWA percentage will
increase upon Step-Up is called the Benefit Determination Base (BDB). The BDB
equals initial premium net of any applicable premium taxes, if this GMWB is
elected at issue, or the Contract Value on the Contract Anniversary on which the
endorsement is added less the recapture charge that would be assessed on a full
withdrawal for any Contract Enhancement, if elected after issue. Withdrawals do
not affect the BDB. Subsequent premium payments increase the BDB by the amount
of the premium net of any applicable premium taxes. In addition, unlike the GWB,
the BDB is not subject to any maximum amount. Therefore, it is possible for the
BDB to be more than $5 million.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value (subject to a $5 million maximum).
If the Contract Value is greater than the BDB prior to the Step-Up then
the BDB is set to equal the Contract Value (not subject to any maximum
amount); and, if the Step-Up occurs after the first withdrawal, the GAWA
percentage is recalculated based on the attained age of the youngest
Covered Life.
o The GAWA percentage will not be recalculated upon step-ups
following Spousal Continuation if the spouse electing Spousal
Continuation is not a Covered Life.
If the Step-Up occurs after the first withdrawal, the GAWA is
recalculated, equaling the greater of:
o The GAWA percentage multiplied by the new GWB, Or
o The GAWA prior to Step-Up.
--------------------------------------------------------------------------
PLEASE NOTE: Withdrawals from the Contract reduce the GWB and Contract Value but
do not affect the BDB. In the event of withdrawals, the BDB remains unchanged.
Therefore, because the Contract Value must be greater than the BDB
123
prior to Step-Up in order for the GAWA percentage to increase, a GAWA percentage
increase may become less likely when continuing withdrawals are made from the
Contract.
Step-Ups occur automatically upon each of the first ten Contract Anniversaries
from the endorsement's effective date. Thereafter, a Step-Up is allowed at any
time upon your request, so long as there is at least one year between Step-Ups.
The GWB can never be more than $5 million with a Step-Up. However, automatic
Step-Ups still occur and elected Step-Ups are still permitted even when the GWB
is at the maximum of $5 million if the Contract Value is greater than the BDB
and the GAWA percentage would increase. A request for Step-Up is processed and
effective on the date received in Good Order. Please consult the representative
who helped you purchase your Contract to be sure if a Step-Up is right for you
and about any increase in charges upon a Step-Up. Upon election of a Step-Up,
the applicable GMWB charge will be reflected in your confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon the death of the sole Owner of a qualified Contract or
the death of either joint Owner of a non-qualified Contract while the Contract
is still in force, this GMWB terminates without value. Please see the
information beginning on page 119 regarding the required ownership and
Beneficiary structure under both qualified and non-qualified Contracts when
selecting the Joint For Life GMWB With Annual Step-Up benefit.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is in effect, at
least one Covered Life remains alive and the Contract is still in the
accumulation phase. Otherwise, payments will be made while there is value to the
GWB (until depleted), so long as the Contract is still in the accumulation
phase. If the GAWA percentage has not yet been determined, it will be set at the
GAWA percentage corresponding to the youngest Covered Life's attained age at the
time the Contract Value falls to zero.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
Payments are made on the periodic basis you elect, but not less frequently than
annually. If you die before all scheduled payments are made, then your
Beneficiary will receive the remainder of the GWB in the form of continuing
scheduled payments. All other rights under your Contract cease, except for the
right to change Beneficiaries. No subsequent premium payments will be accepted.
All optional endorsements terminate without value. And no other death benefit is
payable.
Spousal Continuation. In the event of the Owner's (or either joint Owner's)
death, the surviving spousal Beneficiary may elect to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract is in
Good Order is called the Continuation Date.)
o If the surviving spouse is a Covered Life,
then the For Life Guarantee remains
effective on and after the Continuation
Date.
o If the surviving spouse is not a Covered
Life, the For Life Guarantee is null and
void. However, the surviving spouse will be
entitled to make withdrawals until the GWB
is exhausted.
o For a surviving spouse who is a Covered
Life, continuing the Contract with this GMWB
is necessary to be able to fully realize the
benefit of the For Life Guarantee. The For
Life Guarantee is not a separate guarantee
and only applies if the related GMWB has not
terminated.
o Step-Ups will continue automatically or as
permitted in accordance with the above rules
for Step-Ups.
o Contract Anniversaries will continue to be
based on the original Contract's Issue Date.
o If the surviving spouse is a Covered Life,
the GAWA percentage will continue to
124
be calculated and/or recalculated based on
the youngest Covered Life's attained age.
o If the surviving spouse is not a Covered
Life and if the GAWA percentage has not yet
been determined, the GAWA percentage will be
based on the youngest Covered Life's
attained age at the time of death. The GAWA
percentage will not change on future
Step-Ups.
o The Latest Income Date is based on the age
of the surviving spouse. Please refer to
"Annuitization" subsection below for
information regarding the additional Income
Options available on the Latest Income Date.
o A new joint Owner may not be added in a
non-qualified Contract if a surviving spouse
continues the Contract.
o Continue the Contract without this GMWB (GMWB is
terminated) if the surviving spouse is not a Covered
Life. Thereafter, no GMWB charge will be assessed. If
the surviving spouse is a Covered Life, the Contract
cannot be continued without this GMWB.
o Add another GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
spousal Beneficiary's eligibility, and provided that
this GMWB was terminated on the Continuation Date.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of death of the Owner (or either joint Owner),
unless the Beneficiary who is the Owner's spouse elects
to continue the Contract with the GMWB (continuing the
Contract with this GMWB is necessary to be able to fully
realize the benefit of the For Life Guarantee if the
surviving spouse is a Covered Life);
o The Continuation Date on a Contract if the spousal
Beneficiary, who is not a Covered Life, elects to
continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract has been terminated.
Annuitization.
Joint Life Income of GAWA. On the Latest Income Date if the For Life
Guarantee is in effect, the Owner may choose this income option instead of
one of the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of last
surviving Covered Life. The total annual amount payable will equal the
GAWA in effect at the time of election of this option. This annualized
amount will be paid in the frequency (no less frequently than annually)
that the Owner selects. No further annuity payments are payable after the
death of the last surviving Covered Life, and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if both
Covered Lives die before the due date of the second payment.
If the GAWA percentage has not yet been determined, the GAWA percentage
will be based on the youngest Covered Life's attained age at the time of
election of this option. The GAWA percentage will not change after
election of this option.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary and the spousal Beneficiary is not a Covered Life in which
case the spouse becomes the Owner of the Contract and the Latest Income
Date is based on the age of the spouse.)
125
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Conversion. You may convert this Joint For Life GMWB With Annual Step-Up to the
Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with
Joint Option). Conversion may reduce the dollar amount of your withdrawals
available under the new benefit versus the old benefit because the recalculated
GWB under the new benefit takes into account any negative investment performance
under your Contract. For conversion, the new benefit must be available at the
time of election and you must meet the eligibility requirements for the new
benefit. In addition, Covered Lives must remain the same upon conversion.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the Joint For Life GMWB With Annual Step-Up that are due upon termination of
the original endorsement. Since the Contract Value includes any previously
applied Contract Enhancement, we subtract any applicable recapture charge from
the Contract Value to calculate the new GWB under the new endorsement;
therefore, in calculating the new GWB, a recapture charge associated with any
Contract Enhancement will reduce the new GWB below the Contract Value at
conversion. (See Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is
determined according to the rules under the new endorsement. We will send you
the new endorsement. Upon conversion, all conditions, rules, benefits, charges
and limitations of the new optional withdrawal benefit will apply to you. The
charge of the new benefit will be higher than that currently charged for this
Joint For Life GMWB With Annual Step-Up. Conversion is not a right under the
Contract or endorsement. We currently allow conversions, and we may discontinue
doing so at any time in the future. In addition, no more than two conversions
are currently allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your Joint For Life GMWB With Annual Step-Up. Converting your Joint For Life
GMWB With Annual Step-Up to LifeGuard Freedom GMWB with Joint Option may be
advantageous if you desire the potential for a GWB adjustment, annual Step-Ups
of the GWB to the highest quarterly Contract Value over the life of the Contract
(so long as the Contract is in the accumulation phase), and the bonus provision
that may increase your GWB if no withdrawals are taken over a certain period,
even if the GWB does not increase upon the Step-Ups. However, as noted above,
you will be increasing the cost of your GMWB when converting to the new benefit.
Additionally, the For Life Guarantee is not effective until the Contract
Anniversary on or immediately following the youngest Covered Life's attained age
of 59 1/2 for LifeGuard Freedom GMWB with Joint Option instead of on the
effective date of the endorsement under your For Life GMWB With Annual Step-Up.
Because the GAWA percentage under LifeGuard Freedom GMWB with Joint Option
varies according to age group (the younger the age group, the lower the GAWA
percentage) and is determined based on the attained age at the time of the first
withdrawal, your GAWA percentage may increase or decrease, depending on the age
at which you convert and depending on when you take your first withdrawal after
conversion.
Finally, the new GWB upon any conversion of your Joint For Life GMWB With Annual
Step-Up would be equal to the Contract Value at the time of the conversion. As a
result, if the GWB in your current GMWB is higher than your Contract Value, your
GWB will decrease upon conversion. In addition, the new GAWA will be based on
the new GWB of the new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
126
For Life Guaranteed Minimum Withdrawal Benefit With Bonus and Annual Step-Up
("LifeGuard Freedom GMWB"). The following description of this GMWB is
supplemented by the examples in Appendix D, particularly example 2 for the
varying benefit percentage, examples 6 and 7 for the Step-Ups and example 11 for
the guaranteed withdrawal balance adjustment. This GMWB guarantees partial
withdrawals during the Contract's accumulation phase (i.e., before the Income
Date) for the longer of:
o The Owner's life (the "For Life Guarantee") if the For
Life Guarantee is in effect;
The For Life Guarantee is based on the life of the
first Owner to die with joint Owners. There are
also other GMWB options for joint Owners that are
spouses, as described below.
For the Owner that is a legal entity, the For Life
Guarantee is based on the Annuitant's life (or the
life of the first Annuitant to die if there is
more than one Annuitant).
The For Life Guarantee becomes effective on the
Contract Anniversary on or immediately following
the Owner (or with joint Owners, the oldest Owner)
attaining the age of 59 1/2. If the Owner (or
oldest Owner) is 59 1/2 years old or older on the
endorsement's effective date, then the For Life
Guarantee is effective when this GMWB is added to
the Contract.
If this GMWB was added to your Contract on or
after October 6, 2008, but before January 12,
2009, the For Life Guarantee becomes effective on
the Contract Anniversary on or immediately
following the Owner (or with joint Owners, the
oldest Owner) attaining the age of 63. If the
Owner (or oldest Owner) is 63 years old or older
on the endorsement's effective date, then the For
Life Guarantee became effective when this GMWB was
added to the Contract.
The For Life Guarantee remains effective until the
date this endorsement is terminated, as described
below, or until the Continuation Date on which
this GMWB endorsement is continued under spousal
continuation.
So long as the For Life Guarantee is in effect,
withdrawals are guaranteed even in the event
Contract Value is reduced to zero.
Or
o Until all withdrawals under the Contract equal the
Guaranteed Withdrawal Balance (GWB), without regard to
Contract Value.
The GWB is the guaranteed amount available for
future periodic withdrawals.
Because of the For Life Guarantee, your withdrawals could
amount to more than the GWB. But PLEASE NOTE: The guarantees
of this GMWB are subject to the endorsement's terms,
conditions, and limitations that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 45 to 80 years old (proof of age is required);
may be added to a Contract on the Issue Date or any Contract Anniversary; and
once added cannot be canceled except by a Beneficiary who is the Owner's spouse,
who, upon the Owner's death, may elect to continue the Contract without the
GMWB. At least 30 calendar days' prior notice and proof of age is required for
Good Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB
is not available on a Contract that already has a GMWB (only one GMWB per
Contract) or a Guaranteed Minimum Income Benefit (GMIB). We allow ownership
changes of a Contract with this GMWB when the Owner is a legal entity - to
another legal entity or the Annuitant. Otherwise, ownership changes are not
allowed. When the Owner is a legal entity, changing Annuitants is not allowed.
Availability of this GMWB may be subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit do not invalidate the For Life Guarantee, but cause the GWB and GAWA to be
recalculated.
127
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals initial premium net of any applicable premium taxes.
The GAWA is determined based on the Owner's attained age at the time of
first withdrawal and equals the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. See the GAWA percentage table below.
--------------------------------------------------------------------------
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any Contract
Enhancement.
The GAWA is determined based on the Owner's attained age at the time of
first withdrawal and equals the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. See the GAWA percentage table below.
--------------------------------------------------------------------------
Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancements, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-Up,
the application of the GWB adjustment or the application of any bonus), and the
GWB is reduced by each withdrawal.
PLEASE NOTE: Upon the Owner's death, the For Life Guarantee is void. However,
this GMWB might be continued by a spousal Beneficiary without the For Life
Guarantee. Please see the "Spousal Continuation" subsection below for more
information.
Withdrawals. The GAWA percentage and the GAWA are determined at the time of the
first withdrawal. The GAWA is equal to the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. The GAWA percentage varies according to age
group and is determined based on the Owner's attained age at the time of the
first withdrawal. If there are joint Owners, the GAWA percentage is based on the
attained age of the oldest joint Owner. (In the examples in Appendix D and
elsewhere in this prospectus we refer to this varying GAWA percentage structure
as the "varying benefit percentage".)
If this GMWB was added to your Contract on or after January 12, 2009, the GAWA
percentage for each age group is:
Ages GAWA Percentage
--------------- -------------------
45 - 62 4%
63 - 74 5%
75 - 80 6%
81+ 7%
If this GMWB was added to your Contract before January 12, 2009, the GAWA
percentage for each age group is:
Ages GAWA Percentage
--------------- -------------------
45 - 74 5%
75 - 80 6%
81+ 7%
Withdrawals cause the GWB to be recalculated. Withdrawals may also cause the
GAWA to be recalculated, depending on whether or not the withdrawal, plus all
prior withdrawals in the current Contract Year, is less than or equal to the
GAWA, or for certain tax-qualified Contracts only, the RMD (if greater than the
GAWA). The tables below clarify what happens in either instance. RMD denotes the
required minimum distribution under the Internal Revenue Code for certain
tax-qualified Contracts only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
128
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or ==
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------
The GAWA is generally not reduced if all withdrawals during any one Contract
Year do not exceed the greater of the GAWA or RMD, as applicable, unless the For
Life Guarantee is not in effect and the GWB is nearly depleted, resulting in a
GWB that is less than the GAWA. You may withdraw the greater of the GAWA or RMD,
as applicable, all at once or throughout the Contract Year. Withdrawing less
than the greater of the GAWA or RMD, as applicable, in a Contract Year does not
entitle you to withdraw more than the greater of the GAWA or RMD, as applicable,
in the next Contract Year. The amount you may withdraw each Contract Year and
not cause the GWB and GAWA to be recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount. The GAWA is also likely to be reduced.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any portion of the partial withdrawal
not defined as an Excess Withdrawal (see below), then reduced
in the same proportion that the Contract Value is reduced by
the Excess Withdrawal; Or
o Zero.
The GAWA is recalculated as follows:
o If the For Life Guarantee is in force, the GAWA prior to the
partial withdrawal is reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal.
o If the For Life Guarantee is not in force, the GAWA is equal
to the lesser of:
o The GAWA prior to the partial withdrawal reduced
in the same proportion that the Contract Value is
reduced by the Excess Withdrawal, Or
o The GWB after the withdrawal.
--------------------------------------------------------------------------
The Excess Withdrawal is defined to be the lesser of:
o The total amount of the current partial withdrawal, or
o The amount by which the cumulative partial withdrawals for the
current Contract Year exceeds the greater of the GAWA or the
RMD, as applicable.
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
129
If the age of any Owner is incorrectly stated at the time of election of the
GMWB, on the date the misstatement is discovered, the GWB and the GAWA will be
recalculated based on the GAWA percentage applicable at the correct age. Any
future GAWA percentage recalculation will be based on the correct age.
--------------------------------------------------------------------------
RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the GAWA is based on Contract
Years. Because the intervals for the GAWA and RMDs are different, the For
Life Guarantee may be more susceptible to being compromised. With
tax-qualified Contracts, if the sum of your total partial withdrawals in a
Contract Year exceed the greatest of the RMD for each of the two calendar
years occurring in that Contract Year and the GAWA for that Contract Year,
then the GWB and GAWA could be adversely recalculated, as described above.
(If your Contract Year is the same as the calendar year, then the sum of
your total partial withdrawals should not exceed the greater of the RMD
and the GAWA.) Below is an example of how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
--------------------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Guaranteed Withdrawal Balance Adjustment. If this GMWB was added to your
Contract on or after October 6, 2008 and no withdrawals are taken from the
Contract on or prior to the GWB Adjustment Date (as defined below), then you
will receive a GWB adjustment.
The GWB Adjustment Date is the later of:
o The Contract Anniversary on or immediately following the
Owner's (or oldest joint Owner's) 70th birthday, Or
o The 10th Contract Anniversary following the effective
date of this endorsement.
The GWB adjustment is determined as follows:
130
o On the effective date of this endorsement, the GWB
adjustment is equal to 200% of the GWB, subject to a
maximum of $5,000,000.
o With each subsequent premium received after this GMWB is
effective and prior to the first Contract Anniversary
following this GMWB's effective date, the GWB adjustment
is recalculated to equal the GWB adjustment prior to the
premium payment plus 200% of the amount of the premium
payment, net of any applicable premium taxes, subject to
a maximum of $5,000,000. (See Example 3 in Appendix D.)
o With each subsequent premium received on or after the
first Contract Anniversary following this GMWB's
effective date, the GWB adjustment is recalculated to
equal the GWB adjustment prior to the premium payment
plus the amount of the premium payment, net of any
applicable premium taxes, subject to a maximum of
$5,000,000. (See Example 3 in Appendix D.)
If no partial withdrawals are taken on or prior to the GWB Adjustment Date, the
GWB will be re-set on that date to equal the greater of the current GWB or the
GWB adjustment. No adjustments are made to the Bonus Base or the Benefit
Determination Baseline (explained below). Once the GWB is re-set, this GWB
adjustment provision terminates. In addition, if a withdrawal is taken on or
before the GWB Adjustment Date, this GWB adjustment provision terminates without
value. (Please see example 11 in Appendix D for an illustration of this GWB
adjustment provision.)
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
If the premium payment is received after the first withdrawal, the GAWA is
also recalculated, increasing by:
o The GAWA percentage multiplied by the subsequent premium
payment net of any applicable premium taxes; Or
o The GAWA percentage multiplied by the increase in the GWB - if
the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. On each Contract Anniversary following the effective date of this GMWB,
if the highest quarterly Contract Value is greater than the GWB, the GWB will be
automatically re-set to the highest quarterly Contract Value (a "Step-Up").
If this GMWB was added to your Contract on or after October 6, 2008, then, in
addition to an increase in the GWB, a Step-Up allows for a potential increase in
the GAWA percentage in the event that the Step-Up occurs after the first
withdrawal. The value used to determine whether the GAWA percentage will
increase upon Step-Up is called the Benefit Determination Baseline (BDB). The
BDB equals initial premium net of any applicable premium taxes, if this GMWB is
elected at issue, or the Contract Value on the Contract Anniversary on which the
endorsement is added less the recapture charge that would be assessed on a full
withdrawal for any Contract Enhancement, if elected after issue.
Upon Step-Up, if the highest quarterly Contract Value is greater than the BDB
and the Step-Up occurs after the first withdrawal, the GAWA percentage will be
re-determined based on the Owner's attained age. If an age band is crossed, the
GAWA percentage will be increased. For example, assume an Owner was age 73 at
the time of the first withdrawal resulting in, according to the table above, a
GAWA percentage of 5%. Also assume that, when the Owner is age 76, a Step-Up
occurs and the highest quarterly Contract Value is greater than the BDB; in that
case, the GAWA percentage will be re-determined based on the Owner's attained
age of 76, resulting in a new GAWA percentage of 6%.
Upon Step-Up, if the highest quarterly Contract Value is not greater than the
BDB, the GAWA percentage remains unchanged regardless of whether an age band has
been crossed.
In the event that the highest quarterly Contract Value is greater than the BDB,
the BDB is set equal to the highest quarterly Contract Value.
131
Withdrawals do not affect the BDB. Subsequent premium payments increase the BDB
by the amount of the premium net of any applicable premium taxes. In addition,
unlike the GWB, the BDB is not subject to any maximum amount. Therefore, it is
possible for the BDB to be more than $5 million.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals the highest quarterly Contract Value (subject to a $5
million maximum).
--------------------------------------------------------------------------
If this GMWB was added to your Contract on or after October 6, 2008 and
the highest quarterly Contract Value is greater than the BDB prior to the
Step-Up, then the BDB is set to equal the highest quarterly Contract Value
(not subject to any maximum amount); and, if the Step-Up occurs after the
first withdrawal, the GAWA percentage is recalculated based on the
attained age of the Owner.
o If there are joint Owners, the GAWA percentage is recalculated
based on the oldest joint Owner.
o The GAWA percentage will not be recalculated upon step-ups
following Spousal Continuation.
For all Contracts to which this GMWB is added, if the Step-Up occurs after
the first withdrawal, the GAWA is recalculated, equaling the greater of:
o The GAWA percentage multiplied by the new GWB, Or
o The GAWA prior to Step-Up.
--------------------------------------------------------------------------
The highest quarterly Contract Value equals the highest of the quarterly
adjusted Contract Values from the four most recent Contract Quarterly
Anniversaries, including the Contract Anniversary upon which the Step-Up is
determined. The quarterly adjusted Contract Value equals the Contract Value on
the Contract Quarterly Anniversary, plus any premium paid subsequent to that
Contract Quarterly Anniversary, net of any applicable premium taxes, adjusted
for any partial withdrawals taken subsequent to that Contract Quarterly
Anniversary.
Partial withdrawals will affect the quarterly adjusted Contract Value as
follows:
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
--------------------------------------------------------------------------
The quarterly adjusted Contract Value is equal to the greater of:
o The quarterly adjusted Contract Value before the withdrawal
less the withdrawal; Or
o Zero.
--------------------------------------------------------------------------
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The quarterly adjusted Contract Value is equal to the greater of:
o The quarterly adjusted Contract Value prior to the partial
withdrawal, first reduced dollar-for-dollar for any portion of
the partial withdrawal not defined as an Excess Withdrawal
(see above), then reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal; Or
o Zero.
--------------------------------------------------------------------------
FOR CONTRACTS TO WHICH THIS GMWB WAS ADDED ON OR AFTER OCTOBER 6, 2008, PLEASE
NOTE: Withdrawals from the Contract reduce the GWB and highest quarterly
Contract Value but do not affect the BDB. In the event of withdrawals, the BDB
remains unchanged. Therefore, because the highest quarterly Contract Value must
be greater than the BDB prior to Step-Up in order for the GAWA percentage to
increase, a GAWA percentage increase may become less likely when continuing
withdrawals are made from the Contract.
Upon Step-Up on or after the 5th Contract Anniversary (11th Contract Anniversary
if this endorsement is added to the Contract before January 12, 2009) following
the effective date of this GMWB, the GMWB charge may be increased, subject to
the maximum annual charge of 1.50%. You will be notified in advance of a GMWB
Charge increase and may elect to discontinue the automatic step-ups. Such
election must be received in Good Order prior to the Contract Anniversary. You
may subsequently elect to reinstate the Step-Up provision at the then current
GMWB Charge. All requests will be effective on the Contract Anniversary
following receipt of the request in Good Order.
The GWB can never be more than $5 million with a Step-Up. However, the BDB is
not subject to a $5 million maximum; therefore, it is still possible for the
GAWA percentage to increase even when the GWB has hit its $5 million maximum
because
132
automatic Step-Ups still occur if the highest quarterly Contract Value is
greater than the BDB. For example, assume the GWB and BDB are equal to $5
million prior to a Step-Up. Also assume that the GAWA percentage is 5% and the
GAWA is $250,000. If, at the time of Step-Up, the highest quarterly Contract
Value is $6 million, a Step-Up will occur. The GWB will remain at its maximum of
$5 million but the BDB will be set equal to $6 million. If an age band has been
crossed and the GAWA percentage for the Owner's attained age is 6%, then the
GAWA will be equal to $300,000 (6% x $5 million).
Please consult the representative who helped you purchase your Contract to be
sure if a Step-Up is right for you and about any increase in charges upon a
Step-Up. Upon Step-Up, the applicable GMWB charge will be reflected in your
confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners) while the Contract is still in force, this GMWB terminates without
value.
Contract Value Is Zero. With this GMWB, in the event the Contract Value is zero,
the Owner will receive annual payments of the GAWA until the death of the Owner
(or the death of any joint Owner), so long as the For Life Guarantee is in
effect and the Contract is still in the accumulation phase. If the For Life
Guarantee is not in effect, the Owner will receive annual payments of the GAWA
until the earlier of the death of the Owner (or the death of any joint Owner) or
the date the GWB, if any, is depleted, so long as the Contract is still in the
accumulation phase. The last payment will not exceed the remaining GWB at the
time of payment. If the GAWA percentage has not yet been determined, it will be
set at the GAWA percentage corresponding to the Owner's (or oldest joint
Owner's) attained age at the time the Contract Value falls to zero and the GAWA
will be equal to the GAWA percentage multiplied to the GWB.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
--------------------------------------------------------------------------
Payments are made on the periodic basis you elect, but no less frequently than
annually. If you die, all rights under your Contract cease. No subsequent
premium payments will be accepted. All optional endorsements terminate without
value. And no death benefit is payable.
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract is in
Good Order is called the Continuation Date.)
o Upon the Owner's death, the For Life
Guarantee is void.
o Only the GWB is payable while there is value
to it (until depleted).
o The GWB adjustment provision is void.
o Step-Ups will continue as permitted in
accordance with the Step-Up rules above.
o Contract Anniversaries will continue to be
based on the Contract's Issue Date.
o If the GAWA percentage has not yet been
determined, the GAWA percentage will be
based on the original Owner's (or oldest
joint Owner's) attained age on the
continuation date. The GAWA percentage will
not change on future Step-Ups, even if the
Contract Value exceeds the BDB.
o The Latest Income Date is based on the age
of the surviving spouse.
133
Please refer to "Annuitization" subsection
below for information regarding the
availability of the "Specified Period Income
of the GAWA" option if the GWB has been
continued by a spousal Beneficiary upon the
death of the original Owner.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
Beneficiary's eligibility - whether or not the spousal
Beneficiary terminated the GMWB in continuing the
Contract.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
In surrendering your Contract, you will receive
the Contract Value less any applicable charges and
adjustments and not the GWB or the GAWA you would
have received under this GMWB.
o Conversion of this GMWB (if conversion is permitted);
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB;
o The Continuation Date if the spousal Beneficiary elects
to continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract has been terminated.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if the Owner
dies before the due date of the second payment.
If the GAWA percentage has not yet been determined, the GAWA percentage
will be based on the Owner's (or oldest joint Owner's) attained age at the
time of election of this option. The GAWA percentage will not change after
election of this option.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the original Owner, in which case the spouse
becomes the Owner of the Contract and the Latest Income Date is based on
the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
134
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The primary purpose of the bonus is to act as an incentive for you to
defer taking withdrawals. A bonus equal to 7% of the Bonus Base (defined below)
will be applied to the GWB at the end of each Contract Year within the Bonus
Period (also defined below) if no withdrawals are taken during that Contract
Year. The bonus enables the GWB and GAWA to increase in a given Contract Year
(even during a down market relative to your Contract Value allocated to the
Investment Divisions). The increase, however, may not equal the amount that your
Contract Value has declined. This description of the bonus feature is
supplemented by the examples in Appendix D, particularly example 8. The box
below has more information about the bonus, including:
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a
withdrawal, premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the
GWB.
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The bonus equals 7% of the Bonus Base, which is an amount that may
vary after this GMWB is added to the Contract, as described
immediately below.
o When this GMWB is added to the Contract, the Bonus Base
equals the GWB.
o With a withdrawal, if that withdrawal, and all prior
withdrawals in the current Contract Year, exceeds the
greater of the GAWA and the RMD, as applicable, then the
Bonus Base is set to the lesser of the GWB after, and
the Bonus Base before, the withdrawal. Otherwise, there
is no adjustment to the Bonus Base with withdrawals.
o All withdrawals count, including: systematic
withdrawals; RMDs for certain tax-qualified
Contracts; withdrawals of asset allocation
and advisory fees; and free withdrawals
under the Contract.
o A withdrawal in a Contract Year during the
Bonus Period (defined below) precludes a
bonus for that Contract Year.
o With a premium payment, the Bonus Base increases by the
amount of the premium payment net of any applicable
premium taxes.
o With any Step-Up (if the GWB increases upon step-up),
the Bonus Base is set to the greater of the GWB after,
and the Bonus Base before, the Step-Up.
The Bonus Base can never be more than $5 million.
The bonus is applied at the end of each Contract Year during the
Bonus Period, if there have been no withdrawals during that Contract
Year. Conversely, any withdrawal, including but not limited to
systematic withdrawals and required minimum distributions, taken in
a Contract Year during the Bonus Period causes the bonus not to be
applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 7% of the Bonus
Base.
o If the Bonus is applied after the first withdrawal (in a
prior year), the GAWA is then recalculated, equaling the
greater of the GAWA percentage multiplied by the new GWB
or the GAWA before the bonus.
Applying the bonus to the GWB does not affect the Bonus Base, GWB
adjustment or BDB.
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135
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The Bonus is only available during the Bonus Period. If this GMWB is
added to the Contract on or after October 6, 2008, the Bonus Period
begins on the effective date of this GMWB endorsement. In addition,
the Bonus Period will re-start at the time the Bonus Base increases
due to a Step-Up so long as the Step-Up occurs on or before the
Contract Anniversary immediately following the Owner's (if Joint
Owners, the oldest Owner's) 80th birthday. (See example below.)
The Bonus Period ends on the earlier of:
o The tenth Contract Anniversary following (1) the
effective date of the endorsement or (2) the most recent
increase to the Bonus Base due to a Step-Up, if later;
or
o The date the Contract Value is zero.
The Bonus Base will continue to be calculated even after the Bonus
Period expires. Therefore, it is possible for the Bonus Period to
expire and then re-start on a later Contract Anniversary if the
Bonus Base increases due to a Step-Up.
The purpose of the re-start provision is to extend the period of
time over which the Owner is eligible to receive a bonus. For
example, assume this GMWB was added to a Contract on December 1,
2008. At that time, the bonus period is scheduled to expire on
December 1, 2018 (which is the tenth Contract Anniversary following
the effective date of the endorsement). If a Step-Up increasing the
Bonus Base occurs on the third Contract Anniversary following the
effective date of the endorsement (December 1, 2011), and the Owner
is younger than age 80, the Bonus Period will re-start and will be
scheduled to expire on December 1, 2021. Further, assuming that the
next Bonus Base increase due to a Step-Up does not occur until
December 1, 2023 (which is two years after the Bonus Period in this
example expired) and that the Owner is still younger than age 80 at
that time, the Bonus Period would re-start on December 1, 2023, and
would be scheduled to expire on December 1, 2033. (Please also see
Examples 6 and 7 in Appendix D for more information regarding the
re-start provision.)
If this GMWB was added to the Contract before October 6, 2008, the
Bonus Period runs from the date this GMWB was added to the Contract
through the earliest of:
o The tenth Contract Anniversary after the effective date
of the endorsement;
o The Contract Anniversary on or immediately following the
Owner's (if joint Owners, the oldest Owner's) 81st
birthday; or
o The date Contract Value is zero.
If this GMWB was added to the Contract before October 6, 2008, there
is no provision allowing the Bonus Period to restart.
Spousal continuation of a Contract with this GMWB does not affect
the Bonus Period; Contract Anniversaries are based on the Contract's
Issue Date.
--------------------------------------------------------------------
Conversion. You may convert this For Life GMWB With Bonus and Annual Step-Up to
the Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard Freedom GMWB
with Joint Option). In addition, if this GMWB was added to your Contract before
October 6, 2008, you may convert this For Life GMWB With Bonus and Annual
Step-Up (LifeGuard Freedom GMWB) to the newest version of this same LifeGuard
Freedom GMWB, which will include the GWB adjustment, re-determination of the
GAWA%, a lower age at which the "For Life Guarantee" becomes effective, and
Bonus Period re-start provisions described above. Conversion may reduce the
dollar amount of your withdrawals available under the new benefit versus the old
benefit because the recalculated GWB under the new benefit takes into account
any negative investment performance under your Contract. For conversion, the new
benefit must be available at the time of election and you must meet the
eligibility requirements for the new benefit. Conversion is permitted on any
Contract Anniversary before December 6, 2009. A request in Good Order for
conversion is due 30 days before a Contract Anniversary for the conversion to
take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the For Life GMWB With Bonus and Annual Step-Up that are due upon
termination of the original endorsement. Since the Contract Value includes any
previously applied Contract Enhancement, we subtract any applicable recapture
charge from the Contract Value to calculate the new GWB under the new
endorsement; therefore, in calculating the new GWB, a recapture charge
associated with any Contract Enhancement will reduce the new GWB below the
Contract Value at conversion. (See Example 1c in Appendix D.) Regarding your
GAWA, a new GAWA is determined according to the rules under the new endorsement.
We will send you the new endorsement. Upon conversion, all conditions, rules,
benefits, charges and limitations of the new optional withdrawal benefit will
apply to you. The charge of the newer version of LifeGuard Freedom GMWB will be
the same as that currently charged for this For Life GMWB With Bonus and Annual
Step-Up. However, the charge may be increased upon step-up on or after the fifth
Contract Anniversary instead of the eleventh Contract Anniversary, subject to
the maximum annual charge. The charge of LifeGuard Freedom GMWB with Joint
Option will be higher than that currently charged for this For Life GMWB With
Bonus and Annual Step-Up and the charge may be increased upon step-up on or
after the fifth Contract Anniversary instead of the eleventh Contract
Anniversary, subject to the maximum annual charge. Conversion is not a right
under the Contract or
136
endorsement. We currently allow conversions, and we may discontinue doing so at
any time in the future. In addition, no more than two conversions are currently
allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your For Life GMWB With Bonus and Annual Step-Up. Converting your For Life GMWB
With Bonus and Annual Step-Up to the newer version of LifeGuard Freedom GMWB or
to LifeGuard Freedom GMWB with Joint Option may be advantageous if you desire
the potential for a GWB adjustment, re-determination of the GAWA%, to reset the
bonus provision upon Step-Ups of the Bonus Base over a certain time period (so
long as the Contract is in the accumulation phase), a lower age at which the
"For Life Guarantee" becomes effective, and the bonus provision that may
increase your GWB if no withdrawals are taken over a certain period, even if the
GWB does not increase upon the Step-Ups. Additionally, conversion to LifeGuard
Freedom GMWB with Joint Option will provide spousal continuation of the lifetime
income feature. However, as noted above, you will be increasing the cost of your
GMWB when converting to LifeGuard Freedom GWMB with Joint Option. Additionally,
when converting to LifeGuard Freedom GWMB with Joint Option, depending on the
age at which you convert, you may be subject to a lower bonus than currently
available under your For Life GMWB With Bonus and Annual Step-Up. Because the
GAWA percentage under LifeGuard Freedom GMWB and LifeGuard Freedom GMWB with
Joint Option varies according to age group (the younger the age group, the lower
the GAWA percentage) and is determined based on the attained age of the Owner
(or oldest Owner if joint Owners under LifeGuard Freedom GMWB; or youngest
Covered Life under LifeGuard Freedom GMWB with Joint Option) at the time of the
first withdrawal, your GAWA percentage may increase or decrease, depending on
the age at which you convert and depending on when you take your first
withdrawal after conversion.
Finally, the new GWB upon any conversion of your For Life GMWB With Bonus and
Annual Step-Up would be equal to the Contract Value at the time of the
conversion. As a result, if the GWB in your current GMWB is higher than your
Contract Value, your GWB will decrease upon conversion. In addition, the new
GAWA will be based on the new GWB of the new benefit after conversion. (See
Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
Please note that LifeGuard Freedom DB may be available upon conversion from the
earlier version of LifeGuard Freedom GMWB to the newer version of LifeGuard
Freedom GMWB.
Joint For Life Guaranteed Minimum Withdrawal Benefit With Bonus and Annual
Step-Up ("LifeGuard Freedom GMWB With Joint Option"). The description of this
GMWB is supplemented by the examples in Appendix D, particularly example 2 for
the varying benefit percentage, examples 6 and 7 for the Step-Ups, example 10
for the For Life guarantees and example 11 for the guaranteed withdrawal balance
adjustment.
The election of this GMWB under a non-qualified Contract requires the joint
Owners to be spouses (as defined under the Internal Revenue Code) and each joint
Owner is considered to be a "Covered Life."
The Owners cannot be subsequently changed and new Owners cannot be added. Upon
death of either joint Owner, the surviving joint Owner will be treated as the
primary Beneficiary and all other Beneficiaries will be treated as contingent
Beneficiaries. The For Life Guarantee will not apply to these contingent
Beneficiaries, as they are not Covered Lives.
This GMWB is available on a limited basis under non-qualified Contracts for
certain kinds of legal entities, such as (i) custodial accounts where the
spouses are the joint Annuitants and (ii) trusts where the spouses are the sole
beneficial owners, and the For Life Guarantee is based on the Annuitant's life
who dies last.
Tax-qualified Contracts cannot be issued to joint Owners and require the Owner
and Annuitant to be the same person. Under a tax-qualified Contract, the
election of this GMWB requires the Owner and primary Beneficiary to be spouses
(as defined in the Internal Revenue Code). The Owner and only the primary
spousal Beneficiary named at the election of this GMWB under a tax-qualified
Contract will also each be considered a Covered Life, and these Covered Lives
cannot be subsequently changed.
For tax-qualified Contracts, the Owner and primary spousal Beneficiary cannot be
changed while both are living. If the Owner dies first, the primary spousal
Beneficiary will become the Owner upon Spousal Continuation and he or she may
name a Beneficiary; however, that Beneficiary is not considered a Covered Life.
Likewise, if the primary spousal Beneficiary dies first, the Owner may name a
new Beneficiary; however, that Beneficiary is also not considered a Covered Life
and consequently the For Life Guarantee will not apply to the new Beneficiary.
For both non-qualified and tax-qualified Contracts, this GMWB guarantees partial
withdrawals during the Contract's accumulation phase (i.e., before the Income
Date) for the longer of:
o The lifetime of the last surviving Covered Life if the For Life
Guarantee is in effect;
137
If this GMWB is added to your Contract on or after January 12,
2009, the For Life Guarantee becomes effective on the Contract
Anniversary on or immediately following the youngest Covered
Life attaining the age of 59 1/2. If the youngest Covered Life
is 59 1/2 years old or older on the endorsement's effective
date, then the For Life Guarantee is effective when this GMWB
is added to the Contract.
If this GMWB was added to your Contract on or after October 6,
2008, but before January 12, 2009, the For Life Guarantee
becomes effective on the Contract Anniversary on or
immediately following the youngest Covered Life attaining the
age of 62. If the youngest Covered Life was 62 years old or
older on the endorsement's effective date, then the For Life
Guarantee became effective when this GMWB was added to the
Contract.
If this GMWB was added to your Contract before October 6,
2008, the For Life Guarantee became effective when this GMWB
was added to the Contract.
The For Life Guarantee remains effective until the date this
endorsement is terminated, as described below, or until the
Continuation Date on which a spousal Beneficiary who is not a
Covered Life continues this GMWB endorsement under spousal
continuation.
So long as the For Life Guarantee is in effect, withdrawals
are guaranteed even in the event Contract Value is reduced to
zero.
Or
o Until all withdrawals under the Contract equal the Guaranteed
Withdrawal Balance (GWB), without regard to Contract Value.
The GWB is the guaranteed amount available for future periodic
withdrawals.
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB are subject to the
endorsement's terms, conditions, and limitations that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Covered Lives 45 to 80 years old (proof of age is
required and both Covered Lives must be within the eligible age range). This
GMWB may be added to a Contract on the Issue Date or on any Contract Anniversary
and cannot be canceled except by a spousal Beneficiary who is not a Covered
Life, who, upon the Owner's death, may elect to continue the Contract without
the GMWB. To continue joint GMWB coverage upon the death of the Owner (or the
death of either joint Owner of a non-qualified Contract), provided that the
other Covered Life is still living, the Contract must be continued by election
of Spousal Continuation. Upon continuation, the spouse becomes the Owner and
obtains all rights as the Owner.
At least 30 calendar days' prior notice and proof of age is required for Good
Order to add this GMWB to a Contract on a Contract Anniversary. This GMWB is not
available on a Contract that already has a GMWB (only one GMWB per Contract) or
a Guaranteed Minimum Income Benefit (GMIB). Availability of this GMWB may be
subject to further limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code. Withdrawals exceeding the
limit do not invalidate the For Life Guarantee, but cause the GWB and GAWA to be
recalculated.
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals initial premium net of any applicable premium taxes.
The GAWA is determined based on the youngest Covered Life's attained age
at the time of first withdrawal and equals the GAWA percentage multiplied
by the GWB prior to the partial withdrawal. See the GAWA percentage table
below.
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138
When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any Contract
Enhancement.
The GAWA is determined based on the youngest Covered Life's attained age
at the time of first withdrawal and equals the GAWA percentage multiplied
by the GWB prior to the partial withdrawal. See the GAWA percentage table
below.
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Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-Up,
the application of the GWB adjustment or the application of any bonus), and the
GWB is reduced by each withdrawal.
PLEASE NOTE: Upon the Owner's death, the For Life Guarantee is void unless this
GMWB is continued by a spousal beneficiary who is a Covered Life. However, it is
possible for this GMWB to be continued without the For Life Guarantee by a
spousal Beneficiary who is not a Covered Life. Please see the "Spousal
Continuation" subsection below for more information.
Withdrawals. The GAWA percentage and the GAWA are determined at the time of the
first withdrawal. The GAWA is equal to the GAWA percentage multiplied by the GWB
prior to the partial withdrawal. The GAWA percentage varies according to age
group and is determined based on the youngest Covered Life's attained age at the
time of the first withdrawal. (In the examples in Appendix D and elsewhere in
this prospectus we refer to this varying GAWA percentage structure as the
"varying benefit percentage".)
If this GMWB was added to your Contract on or after January 12, 2009, the GAWA
percentage for each age group is:
Ages GAWA Percentage
---------------- ---------------
45 - 62 4%
63 - 74 5%
75 - 80 6%
81+ 7%
If this GMWB was added to your Contract before January 12, 2009, the GAWA
percentage for each age group is:
Ages GAWA Percentage
---------------- ---------------
45 - 74 5%
75 - 80 6%
81+ 7%
Withdrawals cause the GWB to be recalculated. Withdrawals may also cause the
GAWA to be recalculated, depending on whether or not the withdrawal, plus all
prior withdrawals in the current Contract Year, is less than or equal to the
GAWA, or for certain tax-qualified Contracts only, the RMD (if greater than the
GAWA). The tables below clarify what happens in either instance. RMD denotes the
required minimum distribution under the Internal Revenue Code for certain
tax-qualified Contracts only. (There is no RMD for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD without compromising the endorsement's
guarantees. Examples 4, 5 and 7 in Appendix D supplement this description.
Because the intervals for the GAWA and RMDs are different, namely Contract Years
versus calendar years, and because RMDs are subject to other conditions and
limitations, if your Contract is a tax-qualified Contract, then please see "RMD
NOTES" below for more information.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
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The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged while the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
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139
The GAWA is generally not reduced if all withdrawals during any one Contract
Year do not exceed the greater of the GAWA or RMD, as applicable, unless the For
Life Guarantee is not in effect and the GWB is nearly depleted, resulting in a
GWB that is less than the GAWA. You may withdraw the greater of the GAWA or RMD,
as applicable, all at once or throughout the Contract Year. Withdrawing less
than the greater of the GAWA or RMD, as applicable, in a Contract Year does not
entitle you to withdraw more than the greater of the GAWA or RMD, as applicable,
in the next Contract Year. The amount you may withdraw each Contract Year and
not cause the GWB and GAWA to be recalculated does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount. The GAWA is also likely to be reduced.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB prior to the partial withdrawal, first reduced
dollar-for-dollar for any portion of the partial withdrawal
not defined as an Excess Withdrawal (see below), then reduced
in the same proportion that the Contract Value is reduced by
the Excess Withdrawal; Or
o Zero.
The GAWA is recalculated as follows:
o If the For Life Guarantee is in force, the GAWA prior to the
partial withdrawal is reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal.
o If the For Life Guarantee is not in force, the GAWA is equal
to the lesser of:
o The GAWA prior to the partial withdrawal reduced
in the same proportion that the Contract Value is
reduced by the Excess Withdrawal, Or
o The GWB after the withdrawal.
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The Excess Withdrawal is defined to be the lesser of:
o The total amount of the current partial withdrawal, or
o The amount by which the cumulative partial withdrawals
for the current Contract Year exceeds the greater of the
GAWA or the RMD, as applicable.
Withdrawals under this GMWB are assumed to be the total amount deducted from the
Contract Value, including any withdrawal charges, recapture charges and other
charges or adjustments. Any withdrawals from Contract Value allocated to a Fixed
Account option may be subject to an Interest Rate Adjustment. For more
information, please see "THE FIXED ACCOUNT" beginning on page 19. Withdrawals
may be subject to a recapture charge on any Contract Enhancement. Withdrawals in
excess of free withdrawals may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax-qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172
If the age of any Covered Life is incorrectly stated at the time of election of
the GMWB, on the date the misstatement is discovered, the GWB and the GAWA will
be recalculated based on the GAWA percentage applicable at the correct age. Any
future GAWA percentage recalculation will be based on the correct age.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Internal Revenue Code allows for the taking of RMDs for multiple contracts
from a single contract. Initiating and monitoring for compliance with the
RMD requirements is the responsibility of the Owner.
Under the Internal Revenue Code, RMDs are calculated and taken on a
calendar year basis. But with this GMWB, the
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140
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GAWA is based on Contract Years. Because the intervals for the GAWA and
RMDs are different, the For Life Guarantee may be more susceptible to
being compromised. With tax-qualified Contracts, if the sum of your total
partial withdrawals in a Contract Year exceed the greatest of the RMD for
each of the two calendar years occurring in that Contract Year and the
GAWA for that Contract Year, then the GWB and GAWA could be adversely
recalculated, as described above. (If your Contract Year is the same as
the calendar year, then the sum of your total partial withdrawals should
not exceed the greater of the RMD and the GAWA.) Below is an example of
how this modified limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are at the end of the prospectus in Appendix D, particularly
examples 4, 5, and 7. Please consult the representative who is helping, or
who helped, you purchase your tax-qualified Contract, and your tax
adviser, to be sure that this GMWB ultimately suits your needs relative to
your RMD.
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Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Guaranteed Withdrawal Balance Adjustment. If this GMWB was added to your
Contract on or after October 6, 2008 and no withdrawals are taken from the
Contract on or prior to the GWB Adjustment Date (as defined below), then you
will receive a GWB adjustment.
The GWB Adjustment Date is the later of:
o The Contract Anniversary on or immediately following the
youngest Covered Life's 76th birthday, Or
o The 10th Contract Anniversary following the effective
date of this endorsement.
The GWB adjustment is determined as follows:
o On the effective date of this endorsement, the GWB
adjustment is equal to 200% of the GWB, subject to a
maximum of $5,000,000.
o With each subsequent premium received after this GMWB is
effective and prior to the first Contract Anniversary
following this GMWB's effective date, the GWB adjustment
is recalculated to equal the GWB adjustment prior to the
premium payment plus 200% of the amount of the premium
payment, net of any applicable premium taxes, subject to
a maximum of $5,000,000. (See Example 3 in Appendix D.)
141
o With each subsequent premium received on or after the
first Contract Anniversary following this GMWB's
effective date, the GWB adjustment is recalculated to
equal the GWB adjustment prior to the premium payment
plus the amount of the premium payment, net of any
applicable premium taxes, subject to a maximum of
$5,000,000. (See Example 3 in Appendix D.)
If no partial withdrawals are taken on or prior to the GWB Adjustment Date, the
GWB will be re-set on that date to equal the greater of the current GWB or the
GWB adjustment. No adjustments are made to the Bonus Base or the Benefit
Determination Baseline (explained below). Once the GWB is re-set, this GWB
adjustment provision terminates. In addition, if a withdrawal is taken on or
before the GWB Adjustment Date, this GWB adjustment provision terminates without
value. (Please see example 11 in Appendix D for an illustration of this GWB
adjustment provision.)
Premiums.
With each subsequent premium payment on the Contract -
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The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
If the premium payment is received after the first withdrawal, the GAWA is
also recalculated, increasing by:
o The GAWA percentage multiplied by the subsequent premium
payment net of any applicable premium taxes; Or
o The GAWA percentage multiplied by the increase in the GWB - if
the maximum GWB is hit.
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We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. On each Contract Anniversary following the effective date of this GMWB,
if the highest quarterly Contract Value is greater than the GWB, the GWB will be
automatically re-set to the highest quarterly Contract Value (a "Step-Up").
If this GMWB was added to your Contract on or after October 6, 2008, then, in
addition to an increase in the GWB, a Step-Up allows for a potential increase in
the GAWA percentage in the event that the Step-Up occurs after the first
withdrawal. The value used to determine whether the GAWA percentage will
increase upon Step-Up is called the Benefit Determination Baseline (BDB). The
BDB equals initial premium net of any applicable premium taxes, if this GMWB is
elected at issue, or the Contract Value on the Contract Anniversary on which the
endorsement is added less the recapture charge that would be assessed on a full
withdrawal for any Contract Enhancement, if elected after issue.
Upon Step-Up, if the highest quarterly Contract Value is greater than the BDB
and the Step-Up occurs after the first withdrawal, the GAWA percentage will be
re-determined based on the youngest Covered Life's attained age. If an age band
is crossed, the GAWA percentage will be increased. For example, assume the
youngest Covered Life was age 73 at the time of the first withdrawal resulting
in, according to the table above, a GAWA percentage of 5%. Also assume that,
when the youngest Covered Life is age 76, a Step-Up occurs and the highest
quarterly Contract Value is greater than the BDB; in that case, the GAWA
percentage will be re-determined based on the youngest Covered Life's attained
age of 76, resulting in a new GAWA percentage of 6%.
Upon Step-Up, if the highest quarterly Contract Value is not greater than the
BDB, the GAWA percentage remains unchanged regardless of whether an age band has
been crossed.
In the event that the highest quarterly Contract Value is greater than the BDB,
the BDB is set equal to the highest quarterly Contract Value.
Withdrawals do not affect the BDB. Subsequent premium payments increase the BDB
by the amount of the premium net of any applicable premium taxes. In addition,
unlike the GWB, the BDB is not subject to any maximum amount. Therefore, it is
possible for the BDB to be more than $5 million.
142
With a Step-Up -
--------------
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The GWB equals the highest quarterly Contract Value (subject to a $5
million maximum).
If this GMWB was added to your Contract on or after October 6, 2008 and
the highest quarterly Contract Value is greater than the BDB prior to the
Step-Up, then the BDB is set to equal the highest quarterly Contract Value
(not subject to any maximum amount); and, if the Step-Up occurs after the
first withdrawal, the GAWA percentage is recalculated based on the
attained age of the youngest Covered Life.
o The GAWA percentage will not be recalculated upon step-ups
following Spousal Continuation if the spouse electing Spousal
Continuation is not a Covered Life.
For all Contracts to which this GMWB is added, if the Step-Up occurs after
the first withdrawal, the GAWA is recalculated, equaling the greater of:
o The GAWA percentage multiplied by the new GWB, Or
o The GAWA prior to Step-Up.
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The highest quarterly Contract Value equals the highest of the quarterly
adjusted Contract Values from the four most recent Contract Quarterly
Anniversaries, including the Contract Anniversary upon which the Step-Up is
determined. The quarterly adjusted Contract Value equals the Contract Value on
the Contract Quarterly Anniversary, plus any premium paid subsequent to that
Contract Quarterly Anniversary, net of any applicable premium taxes, adjusted
for any partial withdrawals taken subsequent to that Contract Quarterly
Anniversary.
Partial withdrawals will affect the quarterly adjusted Contract Value as
follows:
When a withdrawal, plus all prior withdrawals in the current Contract
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Year, is less than or equal to the greater of the GAWA or RMD, as
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applicable -
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The quarterly adjusted Contract Value is equal to the greater of:
o The quarterly adjusted Contract Value before the withdrawal
less the withdrawal; Or
o Zero.
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When a withdrawal, plus all prior withdrawals in the current Contract
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Year, exceeds the greater of the GAWA or RMD, as applicable -
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The quarterly adjusted Contract Value is equal to the greater of:
o The quarterly adjusted Contract Value prior to the partial
withdrawal, first reduced dollar-for-dollar for any portion of
the partial withdrawal not defined as an Excess Withdrawal
(see above), then reduced in the same proportion that the
Contract Value is reduced by the Excess Withdrawal; Or
o Zero.
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FOR CONTRACTS TO WHICH THIS GMWB WAS ADDED ON OR AFTER OCTOBER 6, 2008, PLEASE
NOTE: Withdrawals from the Contract reduce the GWB and highest quarterly
Contract Value but do not affect the BDB. In the event of withdrawals, the BDB
remains unchanged. Therefore, because the highest quarterly Contract Value must
be greater than the BDB prior to Step-Up in order for the GAWA percentage to
increase, a GAWA percentage increase may become less likely when continuing
withdrawals are made from the Contract.
Upon Step-Up on or after the 5th Contract Anniversary (11th Contract Anniversary
if this endorsement is added to the Contract before January 12, 2009) following
the effective date of this GMWB, the GMWB charge may be increased, subject to
the maximum annual charge of 1.86%. You will be notified in advance of a GMWB
Charge increase and may elect to discontinue the automatic step-ups. Such
election must be received in Good Order prior to the Contract Anniversary. You
may subsequently elect to reinstate the Step-Up provision at the then current
GMWB Charge. All requests will be effective on the Contract Anniversary
following receipt of the request in Good Order.
The GWB can never be more than $5 million with a Step-Up. However, the BDB is
not subject to a $5 million maximum; therefore, it is still possible for the
GAWA percentage to increase even when the GWB has hit its $5 million maximum
because automatic Step-Ups still occur if the highest quarterly Contract Value
is greater than the BDB. For example, assume the GWB and BDB are equal to $5
million prior to a Step-Up. Also assume that the GAWA percentage is 5% and the
GAWA is $250,000. If, at the time of Step-Up, the highest quarterly Contract
Value is $6 million, a Step-Up will occur. The GWB will remain at its maximum of
$5 million but the BDB will be set equal to $6 million. If an age band has been
crossed and the GAWA percentage for the youngest Covered Life's attained age is
6%, then the GAWA will be equal to $300,000 (6% x $5 million).
143
Please consult the representative who helped you purchase your Contract to be
sure if a Step-Up is right for you and about any increase in charges upon a
Step-Up. Upon Step-Up, the applicable GMWB charge will be reflected in your
confirmation.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon the death of the sole Owner of a qualified Contract or
the death of either joint Owner of a non-qualified Contract while the Contract
is still in force, this GMWB terminates without value. Please see the
information beginning on page 137 regarding the required ownership and
beneficiary structure under both qualified and non-qualified Contracts when
selecting the Joint For Life GMWB With Bonus and Annual Step-Up benefit.
Contract Value Is Zero. With this GMWB, in the event the Contract Value is zero,
the Owner will receive annual payments of the GAWA until the death of the last
surviving Covered Life, so long as the For Life Guarantee is in effect and the
Contract is still in the accumulation phase. If the For Life Guarantee is not in
effect, the Owner will receive annual payments of the GAWA until the earlier of
the death of the Owner (or the death of any joint Owner) or the date the GWB, if
any, is depleted, so long as the Contract is still in the accumulation phase.
The last payment will not exceed the remaining GWB at the time of payment. If
the GAWA percentage has not yet been determined, it will be set at the GAWA
percentage corresponding to the youngest Covered Life's attained age at the time
the Contract Value falls to zero and the GAWA will be equal to the GAWA
percentage multiplied to the GWB.
After each payment when the Contract Value is zero -
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The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is in effect;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, or
the GWB after, the payment.
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Payments are made on the periodic basis you elect, but no less frequently than
annually. Upon death of the last surviving Covered Life, all rights under the
Contract cease. No subsequent premium payments will be accepted. All optional
endorsements terminate without value. And no death benefit is payable.
Spousal Continuation. In the event of the Owner's (or either joint Owner's)
death, the surviving spousal beneficiary may elect to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase. (The date the spousal
Beneficiary's election to continue the Contract is in
Good Order is called the Continuation Date.)
o If the surviving spouse is a Covered Life,
then the For Life Guarantee remains
effective on and after the Continuation
Date.
If the surviving spouse is not a Covered
Life, the For Life Guarantee is null and
void. However, the surviving spouse will be
entitled to make withdrawals until the GWB
is exhausted.
o If the surviving spouse is a Covered Life
and the GWB adjustment provision is in force
on the continuation date then the provision
will continue to apply in accordance with
the GWB adjustment provision rules above.
The GWB adjustment date will continue to be
based on the original effective date of the
endorsement or the youngest Covered Life's
attained age, as applicable.
If the surviving spouse it not a Covered
Life, the GWB adjustment is null and void.
o For a surviving spouse who is a Covered
Life, continuing the Contract with this GMWB
is necessary to be able to fully realize the
benefit of the For Life Guarantee. The For
Life Guarantee is not a separate guarantee
and only applies if the related GMWB has not
terminated.
o Step-Ups will continue as permitted in
accordance with the Step-Up rules above.
144
o Contract Anniversaries will continue to be
based on the original Contract's Issue Date.
o If the surviving spouse is a Covered Life,
the GAWA percentage will continue to be
calculated and/or recalculated based on the
youngest Covered Life's attained age.
o If the surviving spouse is not a Covered
Life and if the GAWA percentage has not yet
been determined, the GAWA percentage will be
based on the youngest Covered Life's
attained age on the continuation date. The
GAWA percentage will not change on future
Step-Ups.
o The Latest Income Date is based on the age
of the surviving spouse. Please refer to
"Annuitization" subsection below for
information regarding the additional Income
Options available on the Latest Income Date.
o A new joint Owner may not be added in a
non-qualified Contract if a surviving spouse
continues the Contract.
o Continue the Contract without this GMWB (GMWB is
terminated) if the surviving spouse is not a Covered
Life. Thereafter, no GMWB charge will be assessed. If
the surviving spouse is a Covered Life, the Contract
cannot be continued without this GMWB.
o Add another GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
spousal Beneficiary's eligibility, and provided that
this GMWB was terminated on the Continuation Date.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
In surrendering your Contract, you will receive
the Contract Value less any applicable charges and
adjustments and not the GWB or the GAWA you would
have received under this GMWB.
o Conversion of this GMWB (if conversion is permitted);
o The date of death of the Owner (or either joint Owner),
unless the Beneficiary who is the Owner's spouse elects
to continue the Contract with the GMWB (continuing the
Contract with this GMWB is necessary to be able to fully
realize the benefit of the For Life Guarantee if the
surviving spouse is a Covered Life);
o The Continuation Date on a Contract if the spousal
Beneficiary, who is not a Covered Life, elects to
continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract has been terminated.
Annuitization.
Joint Life Income of GAWA. On the Latest Income Date if the For Life
Guarantee is in effect, the Owner may choose this income option instead of
one of the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of last
surviving Covered Life. The total annual amount payable will equal the
GAWA in effect at the time of election of this option. This annualized
amount will be paid in the frequency (no less frequently than annually)
that the Owner selects. No further annuity payments are payable after the
death of the last surviving Covered Life, and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if both
Covered Lives die before the due date of the second payment.
145
If the GAWA percentage has not yet been determined, the GAWA percentage
will be based on the youngest Covered Life's attained age at the time of
election of this option. The GAWA percentage will not change after
election of this option.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary and the spousal Beneficiary is not a Covered Life in which
case the spouse becomes the Owner of the Contract and the Latest Income
Date is based on the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The primary purpose of the bonus is to act as an incentive for you to
defer taking withdrawals. A bonus equal to 5% of the Bonus Base (defined
below)(7% of the Bonus Base if the youngest Covered Life is 59 or older when
this GMWB is added to the Contract) will be applied to the GWB at the end of
each Contract Year within the Bonus Period (also defined below) if no
withdrawals are taken during that Contract Year. The bonus enables the GWB and
GAWA to increase in a given Contract Year (even during a down market relative to
your Contract Value allocated to the Investment Divisions). The increase,
however, may not equal the amount that your Contract Value has declined. This
description of the bonus feature is supplemented by the examples in Appendix D,
particularly example 8. The box below has more information about the bonus,
including:
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a
withdrawal, premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the
GWB.
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The bonus equals 5% of the Bonus Base (7% of the Bonus Base if the
youngest Covered Life is 59 or older when this GMWB is added to the
Contract), which is an amount that may vary after this GMWB is added
to the Contract, as described immediately below. (If this GMWB was
added to the Contract before October 6, 2008, the bonus equals 7% of
the Bonus Base for all ages.)
o When this GMWB is added to the Contract, the Bonus Base
equals the GWB.
o With a withdrawal, if that withdrawal, and all prior
withdrawals in the current Contract Year, exceeds the
greater of the GAWA and the RMD, as applicable, then the
Bonus Base is set to the lesser of the GWB after, and
the Bonus Base before, the withdrawal. Otherwise, there
is no adjustment to the Bonus Base with withdrawals.
o All withdrawals count, including: systematic
withdrawals; RMDs for certain tax-qualified
Contracts; withdrawals of asset allocation
and advisory fees; and free withdrawals
under the Contract.
o A withdrawal in a Contract Year during the
Bonus Period (defined below) precludes a
bonus for that Contract Year.
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146
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o With a premium payment, the Bonus Base increases by the
amount of the premium payment net of any applicable
premium taxes.
o With any Step-Up (if the GWB increases upon step-up),
the Bonus Base is set to the greater of the GWB after,
and the Bonus Base before, the Step-Up.
The Bonus Base can never be more than $5 million.
The bonus is applied at the end of each Contract Year during the
Bonus Period, if there have been no withdrawals during that Contract
Year. Conversely, any withdrawal, including but not limited to
systematic withdrawals and required minimum distributions, taken in
a Contract Year during the Bonus Period causes the bonus not to be
applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 5% (7% if the
youngest Covered Life is 59 or older when this GMWB is
added to the Contract) of the Bonus Base. (If this GMWB
was added to the Contract before October 6, 2008, the
GWB increases by 7% for all ages.)
o If the Bonus is applied after the first withdrawal (in a
prior year), the GAWA is then recalculated, equaling the
greater of the GAWA percentage multiplied by the new GWB
or the GAWA before the bonus.
Applying the bonus to the GWB does not affect the Bonus Base, GWB
adjustment or BDB.
The Bonus is only available during the Bonus Period. If this GMWB is
added to the Contract on or after October 6, 2008, the Bonus Period
begins on the effective date of this GMWB endorsement. In addition,
the Bonus Period will re-start at the time the Bonus Base increases
due to a Step-Up so long as the Step-Up occurs on or before the
Contract Anniversary immediately following the youngest Covered
Life's 80th birthday. (See example below.)
The Bonus Period ends on the earlier of:
o The tenth Contract Anniversary following the effective
date of the endorsement or the most recent Bonus Base
Step-Up, if later; or
o The date the Contract Value is zero.
The Bonus Base will continue to be calculated even after the Bonus
Period expires. Therefore, it is possible for the Bonus Period to
expire and then re-start on a later Contract Anniversary if the
Bonus Base increases due to a Step-Up.
The purpose of the re-start provision is to extend the period of
time over which the Owner is eligible to receive a bonus. For
example, assume this GMWB was added to a Contract on December 1,
2008. At that time, the bonus period is scheduled to expire on
December 1, 2018 (which is the tenth Contract Anniversary following
the effective date of the endorsement). If a Step-Up increasing the
Bonus Base occurs on the third Contract Anniversary following the
effective date of the endorsement (December 1, 2011), and the
youngest Covered Life is younger than age 80, the Bonus Period will
re-start and will be scheduled to expire on December 1, 2021.
Further, assuming that the next Bonus Base increase due to a Step-Up
does not occur until December 1, 2023 (which is two years after the
Bonus Period in this example expired) and that the youngest Covered
Life is still younger than age 80 at that time, the Bonus Period
would re-start on December 1, 2023, and would be scheduled to expire
on December 1, 2033. (Please also see Examples 6 and 7 in Appendix D
for more information regarding the re-start provision.)
If this GMWB was added to the Contract before October 6, 2008, the
Bonus Period runs from the date this GMWB was added to the Contract
through the earliest of:
o The tenth Contract Anniversary after the effective date
of the endorsement;
o The Contract Anniversary on or immediately following the
youngest Covered Life's 81st birthday; or
o The date Contract Value is zero.
If this GMWB was added to the Contract before October 6, 2008, there
is no provision allowing the Bonus Period to restart.
Spousal continuation of a Contract with this GMWB does not affect
the Bonus Period; Contract Anniversaries are based on the Contract's
Issue Date.
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Conversion. If this GMWB was added to your Contract before October 6, 2008, you
may convert this Joint For Life GMWB With Bonus and Annual Step-Up (LifeGuard
Freedom GMWB with Joint Option) to the newest version of this same LifeGuard
Freedom GMWB with Joint Option, which will include the GWB adjustment,
re-determination of the GAWA%, a lower age at which the "For Life Guarantee"
becomes effective, and Bonus Period re-start provisions described above.
Conversion may reduce the dollar amount of your withdrawals available under the
new benefit versus the old benefit because the recalculated GWB under the new
benefit takes
147
into account any negative investment performance under your Contract. For
conversion, the new benefit must be available at the time of election and you
must meet the eligibility requirements for the new benefit. In addition, Covered
Lives must remain the same upon conversion. Conversion is permitted on any
Contract Anniversary before December 6, 2009. A request in Good Order for
conversion is due 30 days before a Contract Anniversary for the conversion to
take effect on the Contract Anniversary.
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the Joint For Life GMWB With Annual Step-Up that are due upon termination of
the original endorsement. Since the Contract Value includes any previously
applied Contract Enhancement, we subtract any applicable recapture charge from
the Contract Value to calculate the new GWB under the new endorsement;
therefore, in calculating the new GWB, a recapture charge associated with any
Contract Enhancement will reduce the new GWB below the Contract Value at
conversion. (See Example 1c in Appendix D.) Regarding your GAWA, a new GAWA is
determined according to the rules under the new endorsement. We will send you
the new endorsement. Upon conversion, all conditions, rules, benefits, charges
and limitations of the new optional withdrawal benefit will apply to you. The
charge of the newer version of LifeGuard Freedom GMWB with Joint Option will be
the same as that currently charged for this Joint For Life GMWB With Annual
Step-Up. However, the charge may be increased upon step-up on or after the fifth
Contract Anniversary instead of the eleventh Contract Anniversary, subject to
the maximum annual charge. Conversion is not a right under the Contract or
endorsement. We currently allow conversions, and we may discontinue doing so at
any time in the future. In addition, no more than two conversions are currently
allowed over the life of a Contract.
There are several important factors to consider when deciding whether to convert
your Joint For Life GMWB With Bonus and Annual Step-Up. Converting your Joint
For Life GMWB With Bonus and Annual Step-Up to the newer version of LifeGuard
Freedom GMWB with Joint Option may be advantageous if you desire the potential
for a GWB adjustment, re-determination of the GAWA%, to reset the bonus
provision upon annual Step-Ups of the GWB over a certain time period (so long as
the Contract is in the accumulation phase), a lower age at which the "For Life
Guarantee" becomes effective, and the bonus provision that may increase your
Bonus Base if no withdrawals are taken over a certain period, even if the GWB
does not increase upon the Step-Ups. Depending on the age at which you convert,
you may also increase your GAWA percentage and GAWA. Because the GAWA percentage
under LifeGuard Freedom GMWB with Joint Option varies according to age group
(the younger the age group, the lower the GAWA percentage) and is determined
based on the attained age of the youngest Covered Life at the time of the first
withdrawal, your GAWA percentage may increase or decrease, depending on the age
at which you convert and depending on when you take your first withdrawal after
conversion.
Finally, the new GWB upon any conversion of your Joint For Life GMWB With Bonus
and Annual Step-Up would be equal to the Contract Value at the time of the
conversion. As a result, if the GWB in your current GMWB is higher than your
Contract Value, your GWB will decrease upon conversion. In addition, the new
GAWA will be based on the new GWB of the new benefit after conversion. (See
Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
5% For Life Guaranteed Minimum Withdrawal Benefit ("LifeGuard 5"). The examples
in Appendix D supplement the description of this GMWB.
PLEASE NOTE: EFFECTIVE MAY 1, 2006, THIS ENDORSEMENT IS NO LONGER AVAILABLE TO
ADD TO A CONTRACT.
This GMWB guarantees partial withdrawals during the Contract's accumulation
phase (i.e., before the Income Date) for the longer of:
o The Owner's life (the "For Life Guarantee");
The For Life Guarantee is based on the life of the
first Owner to die with joint Owners. For the
Owner that is a legal entity, the For Life
Guarantee is based on the Annuitant's life (or the
life of the first Annuitant to die if there is
more than one Annuitant).
So long as the For Life Guarantee is valid,
withdrawals are guaranteed even in the event
Contract Value is reduced to zero.
Or
o Until all withdrawals under the Contract equal the
Guaranteed Withdrawal Balance (GWB), without regard to
Contract Value.
The GWB is the guaranteed amount available for
future periodic withdrawals.
148
o For Contracts to which this GMWB is added from January
17, 2006 through April 30, 2006, we offer a bonus on the
GWB; you may be able to receive a credit to the GWB for
a limited time (see box below, and the paragraph
preceding it at the end of this section, for more
information).
Because of the For Life Guarantee, your withdrawals could amount to more than
the GWB. But PLEASE NOTE: The guarantees of this GMWB, including any bonus
opportunity, are subject to the endorsement's terms, conditions, and limitations
that are explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 60 to 80 years old; may be added to a Contract
on the Issue Date or any Contract Anniversary; and once added cannot be canceled
except by a Beneficiary who is the Owner's spouse, who, upon the Owner's death,
may elect to continue the Contract without the GMWB. At least 30 calendar days'
prior notice is required for Good Order to add this GMWB to a Contract on a
Contract Anniversary. This GMWB is not available on a Contract that already has
a GMWB (only one GMWB per Contract) or a Guaranteed Minimum Income Benefit
(GMIB). We allow ownership changes of a Contract with this GMWB when the Owner
is a legal entity - to another legal entity or the Annuitant. Otherwise,
ownership changes are not allowed. Also, when the Owner is a legal entity,
charges will be determined based on the age of the Annuitant and changing
Annuitants is not allowed. Availability of this GMWB may be subject to further
limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect - the greater of the Guaranteed Annual Withdrawal
Amount (GAWA) and for certain tax-qualified Contracts, the required minimum
distribution (RMD) under the Internal Revenue Code (IRC). Withdrawals exceeding
the limit invalidate the For Life Guarantee, in addition to causing the GWB and
GAWA to be recalculated (see below).
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 5% of the GWB.
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When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any
Contract Enhancement.
The GAWA equals 5% of the GWB.
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Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA, or for certain
tax-qualified Contracts only, the RMD (if greater than the GAWA). The two tables
below clarify what happens in either instance. RMD denotes the required minimum
distribution under the Internal Revenue Code for certain tax-qualified Contracts
only. (There is no RMD requirement for non-qualified Contracts.)
For certain tax-qualified Contracts, this GMWB allows withdrawals greater than
GAWA to meet the Contract's RMD requirements without compromising the
endorsement's guarantees. Examples 4, 5 and 7 in Appendix D supplement this
description. Because the intervals for the GAWA and RMDs are different, namely
Contract Years versus calendar years, and because RMDs are subject to other
conditions and limitations, if your Contract is a tax-qualified Contract, then
please see "RMD NOTES" below for more information.
149
When a withdrawal, plus all prior withdrawals in the current Contract
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Year, is less than or equal to the greater of the GAWA or RMD, as
-----------------------------------------------------------------
applicable -
----------
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The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is valid;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
--------------------------------------------------------------------------
The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the greater of the GAWA or RMD, as applicable. You may withdraw the
greater of the GAWA or RMD, as applicable, all at once or throughout the
Contract Year. Withdrawing less than the greater of the GAWA or RMD, as
applicable, in a Contract Year does not entitle you to withdraw more than the
greater of the GAWA or RMD, as applicable, in the next Contract Year. The amount
you may withdraw each Contract Year and keep the guarantees of this GMWB in full
effect does not accumulate.
Withdrawing more than the greater of the GAWA or RMD, as applicable, in a
Contract Year causes the GWB and GAWA to be recalculated (see below and Example
5 in Appendix D). In recalculating the GWB, the GWB could be reduced by more
than the withdrawal amount - even set equal to the Contract Value (less any
recapture charge on any Contract Enhancement). The GAWA is also potentially
impacted.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the greater of the GAWA or RMD, as applicable -
-----------------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated because the For Life Guarantee is invalidated,
equaling the lesser of:
o The GAWA before the withdrawal;
o The GWB after the withdrawal; Or
o 5% of the Contract Value after the withdrawal less the
recapture charge on any Contract Enhancement.
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If you exceed the GAWA, or for certain tax-qualified Contracts only, the RMD (if
greater than the GAWA), one time with your withdrawals, then the For Life
Guarantee is void and cannot be made valid again. From then on, this GMWB
guarantees withdrawals until the GWB is depleted. Withdrawals under this GMWB
are assumed to be the total amount deducted from the Contract Value, including
any withdrawal charges, recapture charges and other charges or adjustments. Any
withdrawals from Contract Value allocated to a Fixed Account option may be
subject to an Interest Rate Adjustment. For more information, please see "THE
FIXED ACCOUNT" beginning on page 19. Withdrawals may be subject to a recapture
charge on any Contract Enhancement. Withdrawals in excess of free withdrawals
may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes. For more information about tax qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
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RMD NOTES: Notice of an RMD is required at the time of your withdrawal
request, and there is an administrative form for such notice. The
administrative form allows for one time or systematic withdrawals.
Eligible withdrawals that are specified as RMDs may only be taken based on
the value of the Contract to which the endorsement applies, even where the
Code allows for the taking of RMDs for multiple contracts from a single
contract. Initiating and monitoring for compliance with the RMD
requirements is the responsibility of the Owner.
Under the Code, RMDs are calculated and taken on a calendar year basis.
But with this GMWB, the GAWA is based on Contract Years. Because the
intervals for the GAWA and RMDs are different, the For Life Guarantee may
be more susceptible to being invalidated. With tax-qualified Contracts, if
the sum of your total partial withdrawals in a Contract Year exceed the
greatest of the RMD for each of the two calendar years occurring in that
Contract Year and the GAWA for that
--------------------------------------------------------------------------
150
--------------------------------------------------------------------------
Contract Year, then the GWB and GAWA could be adversely recalculated, as
described above. (If your Contract Year is the same as the calendar year,
then the sum of your total partial withdrawals should not exceed the
greater of the RMD and the GAWA.) Below is an example of how this modified
limit would apply.
Assume a tax-qualified Contract with a Contract Year that runs from
July 1 to June 30, and that there are no withdrawals other than as
described. The GAWA for the 2008 Contract Year (ending June 30) is
$10. The RMDs for calendar years 2007 and 2008 are $14 and $16,
respectively.
If the Owner takes $7 in each of the two halves of calendar year
2007 and $8 in each of the two halves of calendar year 2008, then at
the time the withdrawal in the first half of calendar year 2008 is
taken, the Owner will have withdrawn $15. Because the sum of the
Owner's withdrawals for the 2008 Contract Year is less than the
higher RMD for either of the two calendar years occurring in that
Contract Year, the GWB and GAWA would not be adversely recalculated.
An exception to this general rule is that with the calendar year in which
your RMDs are to begin (generally, when you reach age 70 1/2), however,
you may take your RMDs for the current and next calendar years during the
same Contract Year, as necessary (see example below).
The following example illustrates this exception. It assumes an
individual Owner, born January 1, 1937, of a tax-qualified Contract
with a Contract Year that runs from July 1 to June 30.
If the Owner delays taking his first RMD (the 2007 RMD) until March
30, 2008, he may still take the 2008 RMD before the next Contract
Year begins, June 30, 2008 without exposing the GWB and GAWA to the
possibility of adverse recalculation. However, if he takes his
second RMD (the 2008 RMD) after June 30, 2008, he should wait until
the next Contract Year begins (that is after June 30, 2009) to take
his third RMD (the 2009 RMD). Because, except for the calendar year
in which RMDs begin, taking two RMDs in a single Contract Year could
cause the GWB and GAWA to be adversely recalculated (if the two RMDs
exceeded the applicable GAWA for that Contract Year).
Examples that are relevant or specific to tax-qualified Contracts,
illustrating this GMWB, in varying circumstances and with specific factual
assumptions, are in Appendix D, particularly examples 4, 5, and 7. Please
consult the representative who is helping, or who helped, you purchase
your tax-qualified Contract, and your tax adviser, to be sure that this
GMWB ultimately suits your needs relative to your RMD.
--------------------------------------------------------------------------
Withdrawals made under section 72(t) or section 72(q) of the Code are not
considered RMDs for purposes of preserving the guarantees under this GMWB. Such
withdrawals that exceed the GAWA will have the same effect as any withdrawal or
excess withdrawal as described above and, consistent with that description, may
cause a significant negative impact to your benefit.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
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The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 5% of the premium net of any applicable premium taxes; Or
o 5% of the increase in the GWB - if the maximum GWB is hit.
--------------------------------------------------------------------------
We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased, subject to the maximum charges listed
above.
With a Step-Up -
--------------
--------------------------------------------------------------------------
The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 5% of the new GWB; Or
o The GAWA before the Step-Up.
--------------------------------------------------------------------------
The first opportunity for a Step-Up is the fifth Contract Anniversary after this
GMWB is added to the Contract.
o On and after January 17, 2006, during the first ten
Contract Years after this GMWB is added to the Contract,
Step-Ups are only allowed on or during the 30-
151
day period following a Contract Anniversary.
o For Contracts to which this GMWB was added before
January 17, 2006, Step-Ups are only allowed during the
30-day period following a Contract Anniversary.
Thereafter, a Step-Up is allowed at any time, but there must always be at least
five years between Step-Ups. The GWB can never be more than $5 million with a
Step-Up. A request for Step-Up is processed and effective on the date received
in Good Order. Please consult the representative who helped you purchase your
Contract to be sure if a Step-Up is right for you and about any increase in
charges upon a Step-up. Upon election of a Step-Up, the applicable GMWB charge
will be reflected in your confirmation.
If a step-up transaction is processed on the same day the bonus is applied and
the Contract Value is less than or equal to the GWB after application of the
bonus, the step-up transaction should be terminated and should not count against
the Owner as an elected step-up.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners), this GMWB terminates without value.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is valid and the
Contract is still in the accumulation phase. Otherwise, payments will be made
while there is value to the GWB (until depleted), so long as the Contract is
still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is valid;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, and
the GWB after, the payment.
--------------------------------------------------------------------------
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase.
o Upon the Owner's death, the For Life
Guarantee is void.
o Only the GWB is payable while there is value
to it (until depleted).
o The spousal Beneficiary is also allowed a
Step-Up. The Step-Up may only be elected on
the first Contract Anniversary on or after
the Continuation Date, which is the date the
spousal Beneficiary's election to continue
the Contract is in Good Order. Otherwise,
the above rules for Step-Ups apply.
o Contract Anniversaries will continue to be
based on the Contract's Issue Date.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
Beneficiary's eligibility - whether or not the
Beneficiary terminated the GMWB in continuing the
Contract.
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
152
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of death of any joint Owner, unless the Beneficiary
who is the Owner's spouse elects to continue the Contract with
the GMWB (continuing the Contract with this GMWB is necessary
to be able to fully realize the benefit of the For Life
Guarantee);
o The Continuation Date if the spousal Beneficiary elects to
continue the Contract without the GMWB; or
o The date all obligations under this GMWB are satisfied after
the Contract Value is zero.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if the Owner
dies before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the original Owner, in which case the spouse
becomes the Owner of the Contract and the Latest Income Date is based on
the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The description of the bonus feature is supplemented by the examples in
Appendix D, particularly example 8. The bonus is an incentive for you not to
utilize this GMWB (take withdrawals) during a limited period of time, subject to
conditions and limitations allowing the GWB and GAWA to increase (even in a down
market relative to your Contract Value allocated to any Investment Divisions).
The increase, however, may not equal the amount that your Contract Value has
declined. The bonus is a percentage of a
153
sum called the Bonus Base (defined below). The bonus is only available for
Contracts to which this GMWB is added on and after January 17, 2006. The box
below has more information about the bonus, including:
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a withdrawal,
premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the GWB.
--------------------------------------------------------------------
The bonus equals 5% and is based on a sum that may vary after this
GMWB is added to the Contract (the "Bonus Base"), as described
immediately below.
o When this GMWB is added to the Contract, the Bonus Base
equals the GWB.
o With a withdrawal, if that withdrawal, and all prior
withdrawals in the current Contract Year, exceeds the
greater of the GAWA and the RMD, as applicable, then the
Bonus Base is set to the lesser of the GWB after, or the
Bonus Base before, the withdrawal. Otherwise, there is
no adjustment to the Bonus Base with withdrawals.
o All withdrawals count, including: systematic
withdrawals; RMDs for certain tax-qualified
Contracts; withdrawals of asset allocation
and advisory fees; and free withdrawals
under the Contract.
o A withdrawal in a Contract Year during the
Bonus Period (defined below) precludes a
bonus for that Contract Year.
o With a premium payment, the Bonus Base increases by the
amount of the premium net of any applicable premium
taxes.
o With any Step-Up, the Bonus Base is set to the greater
of the GWB after, and the Bonus Base before, the
Step-Up.
The Bonus Base can never be more than $5 million.
The Bonus is available for a limited time (the "Bonus Period"). The
Bonus Period runs from the date this GMWB is added to the Contract
through the earliest of:
o The tenth Contract Anniversary after the effective date
of the endorsement;
o The Contract Anniversary on or immediately following the
Owner's (if joint Owners, the oldest Owner's) 81st
birthday; or
o The date Contract Value is zero.
Spousal continuation of a Contract with this GMWB does not affect
the Bonus Period; Contract Anniversaries are based on the Contract's
Issue Date.
The bonus is applied at the end of each Contract Year during the
Bonus Period, if there have been no withdrawals during that Contract
Year. Conversely, any withdrawal, including but not limited to
systematic withdrawals and required minimum distributions, taken in
a Contract Year during the Bonus Period causes the bonus not to be
applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 5% of the Bonus
Base.
o The GAWA is then recalculated, equaling the greater of
5% of the new GWB and the GAWA before the bonus.
Applying the bonus to the GWB does not affect the Bonus Base.
--------------------------------------------------------------------
Conversion. You may convert this 5% for Life GMWB to the For Life GMWB With
Bonus and Annual Step-Up (LifeGuard Freedom GMWB) or the Joint For Life GMWB
With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint Option).
Conversion may reduce the dollar amount of your withdrawals available under the
new benefit versus the old benefit because the recalculated GWB under the new
benefit takes into account any negative investment performance under your
Contract. For conversion, the new benefit must be available at the time of
election and you must meet the eligibility requirements for the new benefit.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
154
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 5% for Life GMWB that are due upon termination of the original
endorsement. Since the Contract Value includes any previously applied Contract
Enhancement, we subtract any applicable recapture charge from the Contract Value
to calculate the new GWB under the new endorsement; therefore, in calculating
the new GWB, a recapture charge associated with any Contract Enhancement will
reduce the new GWB below the Contract Value at conversion. (See Example 1c in
Appendix D.) Regarding your GAWA, a new GAWA is determined according to the
rules under the new endorsement. We will send you the new endorsement. Upon
conversion, all conditions, rules, benefits, charges and limitations of the new
optional withdrawal benefit will apply to you. The charge of the new benefit
will be higher than that currently charged for this 5% for Life GMWB. Conversion
is not a right under the Contract or endorsement. We currently allow
conversions, and we may discontinue doing so at any time in the future. In
addition, no more than two conversions are currently allowed over the life of a
Contract.
There are several important factors to consider when deciding whether to convert
your 5% for Life GMWB. Converting your 5% for Life GMWB to LifeGuard Freedom
GMWB or LifeGuard Freedom GMWB with Joint Option may be advantageous if you
desire the potential for a GWB adjustment, re-determination of the GAWA% and
annual Step-Ups of the GWB to the highest quarterly Contract Value over the life
of the Contract (so long as the Contract is in the accumulation phase).
Additionally, LifeGuard Freedom GMWB offers a bonus provision that may increase
your GWB if no withdrawals are taken over a certain period, even if the GWB does
not increase upon the Step-Ups. For LifeGuard Freedom GMWB with Joint Option,
subject to the age at which you convert, the bonus provision may increase your
GWB if no withdrawals are taken over a certain period, even if the GWB does not
increase upon Step-Ups. Additionally, conversion to LifeGuard Freedom GMWB with
Joint Option will provide spousal continuation of the lifetime income feature.
However, as noted above, you will be increasing the cost of your GMWB when
converting to the new benefit. Because the GAWA percentage under LifeGuard
Freedom GMWB and LifeGuard Freedom GMWB with Joint Option varies according to
age group (the younger the age group, the lower the GAWA percentage) and is
determined based on the attained age of the Owner (or oldest Owner if joint
Owners under LifeGuard Freedom GMWB; or youngest Covered Life under LifeGuard
Freedom GMWB with Joint Option) at the time of the first withdrawal, your GAWA
percentage may increase or decrease, depending on the age at which you convert
and depending on when you take your first withdrawal after conversion.
Finally, the new GWB upon any conversion of your 5% for Life GMWB would be equal
to the Contract Value at the time of the conversion. As a result, if the GWB in
your current GMWB is higher than your Contract Value, your GWB will decrease
upon conversion. In addition, the new GAWA will be based on the new GWB of the
new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
4% For Life Guaranteed Minimum Withdrawal Benefit ("LifeGuard 4"). The examples
in Appendix D supplement the description of this GMWB in varying circumstances
and with specific factual assumptions.
PLEASE NOTE: EFFECTIVE MAY 1, 2006, THIS ENDORSEMENT IS NO LONGER AVAILABLE TO
ADD TO A CONTRACT.
This GMWB guarantees partial withdrawals during the Contract's accumulation
phase (i.e., before the Income Date) for the longer of:
o The Owner's life (the "For Life Guarantee");
The For Life Guarantee is based on the life of the
first Owner to die with joint Owners. For the
Owner that is a legal entity, the For Life
Guarantee is based on the Annuitant's life (or the
life of the first Annuitant to die if there is
more than one Annuitant).
So long as the For Life Guarantee is valid,
withdrawals are guaranteed even in the event
Contract Value is reduced to zero.
o Until all withdrawals under the Contract equal the
Guaranteed Withdrawal Balance (GWB), without regard to
Contract Value.
The GWB is the guaranteed amount available for
future periodic withdrawals.
o For Contracts to which this GMWB is added from January
17, 2006 through April 30, 2006, we offer a bonus on the
GWB; you may be able to receive a credit to the GWB for
a limited time (see box below, and the paragraph
preceding it at the end of this section, for more
information).
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Because of the For Life Guarantee, your withdrawals could
amount to more than the GWB. But PLEASE NOTE: The guarantees
of this GMWB, including any bonus opportunity, are subject to
the endorsement's terms, conditions, and limitations that are
explained below.
Please consult the representative who is helping, or who helped, you purchase
your Contract to be sure that this GMWB ultimately suits your needs.
This GMWB is available to Owners 50 to 80 years old; may be added to a Contract
on the Issue Date or any Contract Anniversary; and once added cannot be canceled
except by a Beneficiary who is the Owner's spouse, who, upon the Owner's death,
may elect to continue the Contract without the GMWB. At least 30 calendar days'
prior notice is required for Good Order to add this GMWB to a Contract on a
Contract Anniversary. This GMWB is not available on a Contract that already has
a GMWB (only one GMWB per Contract) or a Guaranteed Minimum Income Benefit
(GMIB). We allow ownership changes of a Contract with this GMWB when the Owner
is a legal entity - to another legal entity or the Annuitant. Otherwise,
ownership changes are not allowed. Also, when the Owner is a legal entity,
charges will be determined based on the age of the Annuitant and changing
Annuitants is not allowed. Availability of this GMWB may be subject to further
limitation.
There is a limit on withdrawals each Contract Year to keep the guarantees of
this GMWB in full effect, which is called the Guaranteed Annual Withdrawal
Amount (GAWA). Withdrawals exceeding the limit invalidate the For Life
Guarantee, in addition to causing the GWB and GAWA to be recalculated (see
below).
Election. The GWB depends on when this GMWB is added to the Contract, and the
GAWA derives from the GWB.
When this GMWB is added to the Contract on the Issue Date -
---------------------------------------------------------
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The GWB equals initial premium net of any applicable premium taxes.
The GAWA equals 4% of the GWB.
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When this GMWB is added to the Contract on any Contract Anniversary -
-------------------------------------------------------------------
--------------------------------------------------------------------------
The GWB equals Contract Value less the recapture charge on any Contract
Enhancement.
The GAWA equals 4% of the GWB.
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Contract Enhancements and the corresponding recapture charges are not included
in the calculation of the GWB when this GMWB is added to the Contract on the
Issue Date. This is why premium (net of any applicable premium taxes) is used to
calculate the GWB when this GMWB is added to the Contract on the Issue Date. If
you were to instead add this GMWB to your Contract post issue on any Contract
Anniversary, the GWB is calculated based on Contract Value, which will include
any previously applied Contract Enhancement, and, as a result, we subtract any
applicable recapture charge from the Contract Value to calculate the GWB. In any
event, with Contract Enhancements, the result is a GWB that is less than
Contract Value when this GMWB is added to the Contract. (See Example 1 in
Appendix D.) The GWB can never be more than $5 million (including upon Step-up),
and the GWB is reduced by each withdrawal.
Withdrawals. Withdrawals may cause both the GWB and GAWA to be recalculated,
depending on whether or not the withdrawal, plus all prior withdrawals in the
current Contract Year, is less than or equal to the GAWA. The two tables below
clarify what happens in either instance.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, is less than or equal to the GAWA -
---------------------------------------
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The GWB is recalculated, equaling the greater of:
o The GWB before the withdrawal less the withdrawal; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is valid;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before the
withdrawal, or the GWB after the withdrawal.
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The GAWA is not reduced if all withdrawals during any one Contract Year do not
exceed the GAWA. You may withdraw the GAWA all at once or throughout the
Contract Year. Withdrawing less than the GAWA in a Contract Year does not
entitle you to withdraw more than the GAWA in the next Contract Year. The amount
you may withdraw each Contract Year and keep the guarantees of this GMWB in full
effect does not accumulate.
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Withdrawing more than the GAWA in a Contract Year causes the GWB and the GAWA to
be recalculated (see below and Example 5 in Appendix D). In recalculating the
GWB, the GWB could be reduced by more than the withdrawal amount - even set
equal to Contract Value (less any recapture charge on any Contract Enhancement).
The GAWA is also potentially impacted.
When a withdrawal, plus all prior withdrawals in the current Contract
---------------------------------------------------------------------
Year, exceeds the GAWA -
----------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the lesser of:
o Contract Value after the withdrawal less any recapture charge
on any Contract Enhancement; Or
o The greater of the GWB before the withdrawal less the
withdrawal, or zero.
The GAWA is recalculated because the For Life Guarantee is invalidated,
equaling the lesser of:
o The GAWA before the withdrawal;
o The GWB after the withdrawal; Or
o 4% of the Contract Value after the withdrawal less the
recapture charge on any Contract Enhancement.
--------------------------------------------------------------------------
If you exceed the GAWA one time with your withdrawals, then the For Life
Guarantee is void and cannot be made valid again. Withdrawals under this GMWB
are assumed to be the total amount deducted from the Contract Value, including
any withdrawal charges, recapture charges and other charges or adjustments. Any
withdrawals from Contract Value allocated to a Fixed Account option may be
subject to an Interest Rate Adjustment. For more information, please see "THE
FIXED ACCOUNT" beginning on page 19. Withdrawals may be subject to a recapture
charge on any Contract Enhancement. Withdrawals in excess of free withdrawals
may be subject to a withdrawal charge.
Withdrawals under this GMWB are considered the same as any other partial
withdrawals for the purposes of calculating any other values under the Contract
and any other endorsements (for example, the Contract's death benefit). All
withdrawals count toward the total amount withdrawn in a Contract Year,
including systematic withdrawals, RMDs for certain tax-qualified Contracts,
withdrawals of asset allocation and advisory fees, and free withdrawals under
the Contract. They are subject to the same restrictions and processing rules as
described in the Contract. They are also treated the same for federal income tax
purposes For more information about tax qualified and non-qualified Contracts,
please see "TAXES" beginning on page 172.
Premiums.
With each subsequent premium payment on the Contract -
----------------------------------------------------
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The GWB is recalculated, increasing by the amount of the premium net of
any applicable premium taxes.
The GAWA is also recalculated, increasing by:
o 4% of the premium net of any applicable premium taxes; Or
o 4% of the increase in the GWB - if the maximum GWB is hit.
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We require prior approval for a subsequent premium payment that would result in
your Contract having $1 million of premiums in the aggregate. We also reserve
the right to refuse subsequent premium payments. The GWB can never be more than
$5 million. See Example 3b in Appendix D to see how the GWB is recalculated when
the $5 million maximum is hit.
Step-Up. In the event Contract Value is greater than the GWB, this GMWB allows
the GWB to be reset to the Contract Value (a "Step-Up"). Upon election of a
Step-Up, the GMWB charge may be increased subject to the maximum charges listed
above.
With a Step-Up -
--------------
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The GWB equals Contract Value.
The GAWA is recalculated, equaling the greater of:
o 4% of the new GWB; Or
o The GAWA before the Step-Up.
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The first opportunity for a Step-Up is the fifth Contract Anniversary after this
GMWB is added to the Contract.
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o On and after January 17, 2006, during the first ten
Contract Years after this GMWB is added to the Contract,
Step-Ups are only allowed on or during the 30-day period
following a Contract Anniversary.
o For Contracts to which this GMWB was added before
January 17, 2006, Step-Ups are only allowed during the
30-day period following a Contract Anniversary.
Thereafter, a Step-Up is allowed at any time, but there must always be at least
five years between Step-Ups. The GWB can never be more than $5 million with a
Step-Up. A request for Step-Up is processed and effective on the date received
in Good Order. Please consult the representative who helped you purchase your
Contract to be sure if a Step-Up is right for you and about any increase in
charges upon a Step-up. Upon election of a Step-Up, the applicable GMWB charge
will be reflected in your confirmation.
If a step-up transaction is processed on the same day the bonus is applied and
the Contract Value is less than or equal to the GWB after application of the
bonus, the step-up transaction should be terminated and should not count against
the Owner as an elected step-up.
Owner's Death. The Contract's death benefit is not affected by this GMWB so long
as Contract Value is greater than zero and the Contract is still in the
accumulation phase. Upon your death (or the first Owner's death with joint
Owners), this GMWB terminates without value.
Contract Value Is Zero. With this GMWB, in the event Contract Value is zero, the
GAWA is unchanged and payable so long as the For Life Guarantee is valid and the
Contract is still in the accumulation phase. Otherwise, payments will be made
while there is value to the GWB (until depleted), so long as the Contract is
still in the accumulation phase. Payments are made on the periodic basis you
elect, but no less frequently than annually.
After each payment when the Contract Value is zero -
--------------------------------------------------
--------------------------------------------------------------------------
The GWB is recalculated, equaling the greater of:
o The GWB before the payment less the payment; Or
o Zero.
The GAWA:
o Is unchanged so long as the For Life Guarantee is valid;
Otherwise
o Is recalculated, equaling the lesser of the GAWA before, and
the GWB after, the payment.
--------------------------------------------------------------------------
If you die before all scheduled payments are made, then your Beneficiary will
receive the remainder. All other rights under your Contract cease, except for
the right to change Beneficiaries. No subsequent premium payments will be
accepted. All optional endorsements terminate without value. And no other death
benefit is payable.
Spousal Continuation. In the event of the Owner's death (or the first Owner's
death with joint Owners), the Beneficiary who is the Owner's spouse may elect
to:
o Continue the Contract with this GMWB - so long as
Contract Value is greater than zero, and the Contract is
still in the accumulation phase.
o Upon the Owner's death, the For Life
Guarantee is void.
o Only the GWB is payable while there is
value to it (until depleted).
o The spousal Beneficiary is also allowed a
Step-Up. The Step-Up may only be elected on
the first Contract Anniversary on or after
the Continuation Date, which is the date the
spousal Beneficiary's election to continue
the Contract is in Good Order. Otherwise,
the above rules for Step-Ups apply.
o Contract Anniversaries will continue to be
based on the Contract's Issue Date.
o Continue the Contract without this GMWB (GMWB is
terminated).
o Add this GMWB to the Contract on any Contract
Anniversary after the Continuation Date, subject to the
Beneficiary's eligibility - whether or not the
Beneficiary terminated the GMWB in continuing the
Contract.
158
For more information about spousal continuation of a Contract, please see
"Special Spousal Continuation Option" beginning on page 171.
Termination. This GMWB terminates subject to a prorated GMWB Charge assessed for
the period since the last monthly charge and all benefits cease on the earliest
of:
o The Income Date;
o The date of complete withdrawal of Contract Value (full
surrender of the Contract);
o Conversion of this GMWB (if conversion is permitted);
o The date of the Owner's death (or the first Owner's
death with joint Owners), unless the Beneficiary who is
the Owner's spouse elects to continue the Contract with
the GMWB; or
o The date all obligations under this GMWB are satisfied
after the Contract Value is zero.
Annuitization.
Life Income of GAWA. On the Latest Income Date if the For Life Guarantee
is in effect, the Owner may choose this income option instead of one of
the other income options listed in the Contract. This income option
provides payments in a fixed dollar amount for the lifetime of the Owner
(or, with joint Owners, the lifetime of joint Owner who dies first). The
total annual amount payable will equal the GAWA in effect at the time of
election of this option. This annualized amount will be paid in the
frequency (no less frequently than annually) that the Owner selects. No
further annuity payments are payable after the death of the Owner (or the
first Owner's death with joint Owners), and there is no provision for a
death benefit payable to the Beneficiary. Therefore, it is possible for
only one annuity payment to be made under this Income Option if the Owner
dies before the due date of the second payment.
Specified Period Income of the GAWA. On the Latest Income Date if the For
Life Guarantee is not in effect, the Owner may choose this income option
instead of one of the other income options listed in the Contract. (This
income option only applies if the GMWB has been continued by the spousal
Beneficiary upon the death of the original Owner, in which case the spouse
becomes the Owner of the Contract and the Latest Income Date is based on
the age of the spouse.)
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
the Owner selects. If the Owner should die before the payments have been
completed, the remaining payments will be made to the Beneficiary, as
scheduled.
The "Specified Period Income of the GAWA" 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 spouse at the time the option becomes effective.
See "Guaranteed Minimum Withdrawal Benefit General Considerations" and
"Guaranteed Minimum Withdrawal Benefit Important Special Considerations"
beginning on page 55 for additional things to consider before electing a GMWB;
when electing to annuitize your Contract after having purchased a GMWB; or when
the Latest Income Date is approaching and you are thinking about electing or
have elected a GMWB.
Effect of GMWB on Tax Deferral. This GMWB may not be appropriate for Owners who
have as a primary objective taking maximum advantage of the tax deferral that is
available to them under an annuity contract to accumulate assets. Please consult
your tax and financial advisors before adding this GMWB to a Contract.
Bonus. The description of the bonus feature is supplemented by the examples in
Appendix D, particularly example 8. The bonus is an incentive for you not to
utilize this GMWB (take withdrawals) during a limited period of time, subject to
conditions and limitations, allowing the GWB and GAWA to increase (even in a
down market relative to your Contract Value allocated to any Investment
Divisions). The increase, however, may not equal the amount that your Contract
Value has declined. The bonus is a percentage of a sum called the Bonus Base
(defined below). The bonus is only available for Contracts to which this GMWB is
added on and after January 17, 2006. The box below has more information about
the bonus, including:
159
o How the bonus is calculated;
o What happens to the Bonus Base (and bonus) with a
withdrawal, premium payment, and any Step-Up;
o For how long the bonus is available; and
o When and what happens when the bonus is applied to the
GWB.
--------------------------------------------------------------------
The bonus equals 5% and is based on a sum that may vary after this
GMWB was added to the Contract (the "Bonus Base"), as described
immediately below.
o When this GMWB is added to the Contract, the Bonus
Base equals the GWB.
o With a withdrawal, if that withdrawal, and all
prior withdrawals in the current Contract Year,
exceeds the GAWA, then the Bonus Base is set to
the lesser of the GWB after, and the Bonus Base
before, the withdrawal. Otherwise, there is no
adjustment to the Bonus Base with withdrawals.
o All withdrawals count, including:
systematic withdrawals; RMDs for
certain tax-qualified Contracts;
withdrawals of asset allocation and
advisory fees; and free withdrawals
under the Contract.
o A withdrawal in a Contract Year
during the Bonus Period (defined
below) precludes a bonus for that
Contract Year.
o With a premium payment, the Bonus Base increases
by the amount of the premium net of any applicable
premium taxes.
o With any Step-Up, the Bonus Base is set to the
greater of the GWB after, and the Bonus Base
before, the Step-Up.
The Bonus Base can never be more than $5 million.
The Bonus is available for a limited time (the "Bonus Period"). The
Bonus Period runs from the date this GMWB is added to the Contract
through the earliest of:
o The tenth Contract Anniversary after the effective
date of the endorsement;
o The Contract Anniversary on or immediately
following the Owner's (if joint Owners, the oldest
Owner's) 81st birthday; or
o The date Contract Value is zero.
Spousal continuation of a Contract with this GMWB does not affect
the Bonus Period; Contract Anniversaries are based on the Contract's
Issue Date.
The bonus is applied at the end of each Contract Year during the
Bonus Period, if there have been no withdrawals during that Contract
Year. Conversely, any withdrawal, including but not limited to
systematic withdrawals and required minimum distributions, taken in
a Contract Year during the Bonus Period causes the bonus not to be
applied.
When the bonus is applied:
o The GWB is recalculated, increasing by 5% of the
Bonus Base.
o The GAWA is then recalculated, equaling the
greater of 4% of the new GWB and the GAWA before
the bonus.
Applying the bonus to the GWB does not affect the Bonus Base.
There are examples illustrating the bonus, in varying circumstances
and with specific factual assumptions, with the 5% for Life GMWB.
These examples are in the Appendices.
--------------------------------------------------------------------
Conversion. You may convert this 4% for Life GMWB to the For Life GMWB With
Bonus and Annual Step-Up (LifeGuard Freedom GMWB) or the Joint For Life GMWB
With Bonus and Annual Step-Up (LifeGuard Freedom GMWB with Joint Option).
Conversion may reduce the dollar amount of your withdrawals available under the
new benefit versus the old benefit because the recalculated GWB under the new
benefit takes into account any negative investment performance under your
Contract. For conversion, the new benefit must be available at the time of
election and you must meet the eligibility requirements for the new benefit.
Conversion is permitted on any Contract Anniversary before December 6, 2009. A
request in Good Order for conversion is due 30 days before a Contract
Anniversary for the conversion to take effect on the Contract Anniversary.
160
With conversion, the GWB is recalculated based on Contract Value at the time of
conversion. This Contract Value is determined after the deduction of any charges
for the 4% for Life GMWB that are due upon termination of the original
endorsement. Since the Contract Value includes any previously applied Contract
Enhancement, we subtract any applicable recapture charge from the Contract Value
to calculate the new GWB under the new endorsement; therefore, in calculating
the new GWB, a recapture charge associated with any Contract Enhancement will
reduce the new GWB below the Contract Value at conversion. (See Example 1c in
Appendix D.) Regarding your GAWA, a new GAWA is determined according to the
rules under the new endorsement. We will send you the new endorsement. Upon
conversion, all conditions, rules, benefits, charges and limitations of the new
optional withdrawal benefit will apply to you. The charge of the new benefit
will be higher than that currently charged for this 4% for Life GMWB. Conversion
is not a right under the Contract or endorsement. We currently allow
conversions, and we may discontinue doing so at any time in the future. In
addition, no more than two conversions are currently allowed over the life of a
Contract.
There are several important factors to consider when deciding whether to convert
your 4% for Life GMWB. Converting your 4% for Life GMWB to LifeGuard Freedom
GMWB or LifeGuard Freedom GMWB with Joint Option may be advantageous if you
desire the potential for a GWB adjustment, re-determination of the GAWA% and
annual Step-Ups of the GWB to the highest quarterly Contract Value over the life
of the Contract (so long as the Contract is in the accumulation phase).
Additionally, LifeGuard Freedom GMWB offers a bonus provision that may increase
your GWB if no withdrawals are taken over a certain period, even if the GWB does
not increase upon the Step-Ups. For LifeGuard Freedom GMWB with Joint Option,
subject to the age at which you convert, the bonus provision may increase your
GWB if no withdrawals are taken over a certain period, even if the GWB does not
increase upon Step-Ups. You may also increase your GAWA percentage.
Additionally, conversion to LifeGuard Freedom GMWB with Joint Option will
provide spousal continuation of the lifetime income feature. However, as noted
above, you will be increasing the cost of your GMWB when converting to the new
benefit. Additionally, the For Life Guarantee is not effective until the
Contract Anniversary on or immediately following the Owner's (or with joint
Owners, the oldest Owner's) attained age of 59 1/2 for LifeGuard Freedom GMWB or
the youngest Covered Life's attained age of 59 1/2 for LifeGuard Freedom GMWB
with Joint Option instead of on the effective date of the endorsement under your
4% for Life GMWB.
Finally, the new GWB upon any conversion of your 4% for Life GMWB would be equal
to the Contract Value at the time of the conversion. As a result, if the GWB in
your current GMWB is higher than your Contract Value, your GWB will decrease
upon conversion. In addition, the new GAWA will be based on the new GWB of the
new benefit after conversion. (See Example 1 in Appendix D.)
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
Systematic Withdrawal Program. You can arrange to have money automatically sent
to you periodically while your Contract is still in the accumulation phase. You
may withdraw a specified dollar amount (of at least $50 per withdrawal) or a
specified percentage. Your withdrawals may be on a monthly, quarterly,
semi-annual or annual basis. If you have arranged for systematic withdrawals,
schedule any planned Step-Up under a GMWB to occur prior to the withdrawal.
Example 6 in Appendix D illustrates the consequences of a withdrawal preceding a
Step-Up. There is no charge for the Systematic Withdrawal Program; however, you
will have to pay taxes on the money you receive. You may also be subject to a
withdrawal charge and an Interest Rate Adjustment.
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.
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
161
Income Date must be at least 13 months after the Contract's Issue Date. You can
choose the Income Date and an income option. All of the Contract Value must be
annuitized. 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 least seven days before the
Income Date, but changes to the Income Date may only be to a later date. You
must give us written notice at least seven days before the scheduled Income
Date. Income payments must begin by your 95th birthday under a non-qualified
Contract (90th birthday, unless otherwise approved by the Company, if your
Contract was issued before April 6, 2009), or by such earlier date as required
by the applicable qualified plan, law or regulation. Under a traditional
Individual Retirement Annuity, required minimum distributions must begin in the
calendar year in which you attain age 70 1/2 (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. You do not necessarily have to annuitize your Contract
to meet the minimum distribution requirements for Individual Retirement
Annuities, qualified plans, and Tax-Sheltered Annuities. 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. Or you can choose a single lump sum payment. If you have less than
$5,000 to apply toward an income option, we may provide your payment in a single
lump sum, part of which may be taxable as Federal Income. 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, recapture
charges or withdrawal charges and any Interest Rate
Adjustment 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%.
If the actual net investment rate experienced by an Investment Division exceeds
the assumed net investment rate, variable annuity payments will increase over
time. Conversely, if the actual net investment rate is less than the assumed net
investment rate, variable annuity payments will decrease over time. If the
actual net investment rate equals the assumed net investment rate, the variable
annuity payments will remain constant.
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. If you die after the Income Date, but prior to the first payment, the
amount applied to this income option will be paid to the Owner or the
Beneficiaries.
162
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. If both of you die after the Income Date, but prior to the first payment,
the amount applied to this income option will be paid to the Owner or the
Beneficiaries.
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.
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.
No withdrawals are permitted during the income phase under an income option that
is life contingent.
FutureGuard Guaranteed Minimum Income Benefit.
PLEASE NOTE: EFFECTIVE OCTOBER 6, 2008, THIS ENDORSEMENT IS NO LONGER AVAILABLE
TO ADD TO A CONTRACT.
This optional Guaranteed Minimum Income Benefit (GMIB) endorsement guarantees a
minimum fixed income benefit (under certain life contingent options) after a
period of at least 10 Contract Years, subject to specific conditions, regardless
of the fixed and variable options you select during the accumulation phase. This
benefit is only available if
o you elect it prior to your Contract's Issue Date;
o the Annuitant is not older than age 75 on the Issue
Date; and
o you exercise it on or within 30 calendar days of your
10th, or any subsequent, Contract Anniversary, but in no
event later than the 30 calendar day period following
the Contract Anniversary immediately following the
Annuitant's 85th birthday.
This GMIB will terminate and will not be payable at the earliest of:
o the Income Date (if prior to the effective date of this
GMIB);
o the 30th calendar day following the Contract Anniversary
immediately after the Annuitant's 85th birthday;
o the date you make a total withdrawal from the Contract;
o upon your death (unless your spouse is your Beneficiary,
elects to continue the Contract and is eligible for this
benefit); or
o if the Owner is not a natural person, upon the death of
the Annuitant.
Once elected, this GMIB cannot be terminated in any other way while your
Contract is in force.
You have the option of taking this GMIB instead of the other income options
described above. Your monthly income option payments will be calculated by
applying this "GMIB Benefit Base" (described below) to the annuity rates in the
table of guaranteed purchase rates attached to the GMIB endorsement. The only
type of income payments available under this GMIB are life contingent fixed
annuity income payments. The fixed annuity payment income options currently
available are:
Option 1 - Life Income,
Option 2 - Joint and Survivor,
Option 3 - Life Annuity with 120 Monthly Periods Guaranteed, and
Option 4 - Joint and Survivor Life Annuity with 120 Monthly Periods Guaranteed.
No other income options will be available, and no partial annuitization will be
allowed.
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After the 10th Contract Anniversary or any subsequent Contract Anniversary, the
Contract Owner must exercise this option prior to the Income Date. This GMIB may
not be appropriate for Owners who will be subject to any minimum distribution
requirements under an IRA or other qualified plan prior to the expiration of 10
Contract Years. Please consult a tax advisor on this and other matters of
selecting income options.
This GMIB only applies to the determination of income payments under the income
options specified above. It is not a guarantee of Contract Value or performance.
This benefit does not enhance the amounts paid in any withdrawals or death
benefits. You will not receive any benefit under this endorsement if you make a
total withdrawal of your Contract Value.
Both the amount of this GMIB and the quarterly charge for this GMIB (described
above in the Charges section) are based upon an amount called the "GMIB Benefit
Base." The GMIB Benefit Base for this GMIB is the greater of (a) or (b), where:
(a) is the Roll-Up Component which is equal to:
o all premiums you have paid (net of any applicable
premium taxes); plus
o any Contract Enhancements credited on or before the
business day the GMIB Benefit Base is being calculated;
minus
o an adjustment (described below) for any withdrawals
(including any applicable charges and Interest Rate
Adjustments to those withdrawals);
compounded at an annual interest rate of 5% from the Issue Date until the
earlier of the Annuitant's 80th birthday or the exercise date of this GMIB.
All adjustments for Premiums and Contract Enhancements are made on the date of
the Premium payment. All withdrawal adjustments are made at the end of the
Contract Year and on the exercise date of this GMIB. For total withdrawals up to
5% of the Roll-Up Component as of the previous Contract Anniversary, the
withdrawal adjustment is the dollar amount of the withdrawal (including any
applicable charges and adjustments to such withdrawal). After processing any
applicable dollar for dollar portion of the withdrawal, the withdrawal
adjustment for total withdrawals in a Contract Year in excess of 5% of the
Roll-Up Component as of the previous Contract Anniversary is the Roll-Up
Component immediately prior to the excess withdrawal multiplied by the
percentage reduction in the Contract Value attributable to the excess withdrawal
(including any applicable charges and adjustments to such excess withdrawal). In
calculating the withdrawal adjustment, the Issue Date is considered a Contract
Anniversary. Generally, the larger the withdrawal, the greater the impact on the
GMIB Benefit Base. Please note also that when the Contract Value is greater than
the Roll-Up Component, dollar for dollar withdrawals would result in a larger
withdrawal adjustment than would proportional withdrawals. However, all
withdrawals will be processed as described above, regardless of the level of the
Contract Value.
For example, the calculations for a Contract issued with an initial Premium
payment of $10,000, this Guaranteed Minimum Income Benefit, and a 4% Contract
Enhancement would be as follows. Assume the Owner takes a gross withdrawal
during the Contract Year of $400, which is less than 5% of the Roll-Up Component
as of the previous Contract Anniversary and therefore treated as a
dollar-for-dollar withdrawal at the end of the Contract Year. The Roll-Up
Component of the GMIB Benefit Base at the end of the year will be equal to the
Premium and Contract Enhancement accumulated at 5% to the end of the year. The
resulting Roll-Up Component is equal to ($10,000 + $400) x 1.05 - $400 =
$10,520. This example does not take into account taxes.
and (b) is the Greatest Contract Anniversary Value Component and is equal to:
o the greatest Contract Value on any Contract Anniversary
prior to the Annuitant's 81st birthday; minus
o an adjustment (described below) for any withdrawals
after that Contract Anniversary (including any
applicable charges and Interest Rate Adjustments for
those withdrawals); plus
o any premiums paid (net of any applicable premium taxes)
after that Contract Anniversary; minus
o any annual contract maintenance charge, transfer charge,
and any applicable non-asset based charges due under any
optional endorsement deducted after that Contract
Anniversary; and minus
o any taxes deducted after that Contract Anniversary.
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All adjustments are made on the date of the applicable listed events and their
transaction. The withdrawal adjustment is the Greatest Contract Anniversary
Value Component immediately prior to the withdrawal multiplied by the percentage
reduction in the Contract Value attributable to the withdrawal (including any
applicable charges and adjustments for such withdrawals).
Neither component of the GMIB Benefit Base will ever exceed:
o 200% of premiums paid (net of any applicable premium
taxes and excluding premiums paid in the 12 months prior
to the date this GMIB is exercised); minus
o any withdrawals (including related charges and
adjustments) deducted since the issuance of the
Contract.
The applicability of this limitation will be determined after the calculation of
each component of the GMIB Benefit Base.
If you are the Annuitant under your Contract and your spouse continues the
Contract after your death, your spouse will become the Annuitant and will
continue to be eligible for this GMIB as long as he or she would have been
eligible as an Annuitant when your Contract was issued and is age 84 or younger.
If your spouse does not satisfy those criteria, then this GMIB will terminate
and the charge for this GMIB will be discontinued. Similarly, if an Owner who is
a natural person is not the Annuitant and the Annuitant dies, you (the Owner)
may select a new Annuitant (who must be a person eligible to be an Annuitant on
the Issue Date and is age 84 or younger). If the new Annuitant in that situation
does not satisfy those criteria then this GMIB will terminate and the GMIB
charge discontinued. In the event of joint Annuitants, the age of the youngest
Annuitant will be used for all these determinations. Changing an Annuitant or
selecting a new Annuitant while the current Annuitant is still living is not
allowed.
Among other requirements applicable to Contracts issued to entities/Owners, the
use of multiple Contracts by related entities to avoid maximum premium limits is
not permitted. Selection of this GMIB, with multiple Contracts or otherwise, is
subject to our administrative rules designed to assure its appropriate use. We
may update these rules as necessary.
You may not elect both a GMIB and a GMWB, and you may not elect to add a GMWB
after the Issue Date to a Contract with a GMIB.
FutureGuard 6 Guaranteed Minimum Income Benefit.
PLEASE NOTE: EFFECTIVE APRIL 6, 2009, THIS ENDORSEMENT IS NO LONGER AVAILABLE TO
ADD TO A CONTRACT.
This Guaranteed Minimum Income Benefit is designed to provide a guaranteed
minimum level of future income regardless of the investment performance of the
underlying investment options. The benefit requires annuitization to provide
guaranteed income in the future. For those investors who are wishing to have
current income, this benefit allows them to withdraw a minimum amount and still
have guaranteed income in the future. The following description of this
Guaranteed Minimum Income Benefit is supplemented by the examples in Appendix E.
This optional GMIB endorsement guarantees a minimum fixed income benefit (under
certain life contingent options) after a period of at least 10 Contract Years,
subject to specific conditions, regardless of the Allocation Option(s) you
select during the accumulation phase. The guarantee is different depending on
when you purchased a Contract.
This benefit is only available if:
o you elect it prior to your Contract's Issue Date;
o the Annuitant is not older than age 75 on the Issue
Date; and
o you exercise it on or within 30 calendar days of any
Contract Anniversary that is at least 10 years later
than the most recent "Step-Up Date" (described below)
but in no event later than the 30 calendar day period
following the Contract Anniversary immediately following
the Annuitant's 85th birthday.
This GMIB will terminate and will not be payable at the earliest of:
o the Income Date (if prior to the effective date of this
GMIB);
o the 31st calendar day following the Contract Anniversary
immediately after the Annuitant's 85th birthday;
o the date you make a total withdrawal from the Contract;
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o upon your death (unless your spouse is your Beneficiary,
elects to continue the Contract and is eligible for this
benefit); or
o if the Owner is not a natural person, upon the death of
the Annuitant.
This GMIB can only be elected at the time you purchase your Contract. Once
elected, this GMIB cannot be terminated in any way other than described above
while your Contract is in force.
You have the option of taking this GMIB instead of the other income options
described above. Your monthly income option payments will be calculated by
applying the "GMIB Benefit Base" (described below) to the annuity rates in the
table of guaranteed purchase rates attached to this GMIB endorsement. The only
types of income payments available under this GMIB are life contingent fixed
annuity income payments. The fixed annuity payment income options currently
available are:
Option 1 - Life Income,
Option 2 - Joint and Survivor,
Option 3 - Life Annuity with 120 Monthly Periods Guaranteed, and
Option 4 - Joint and Survivor Life Annuity with 120 Monthly Periods Guaranteed.
No other income options will be available, and no partial annuitizations will be
allowed.
After any Contract Anniversary that is at least 10 years later than the most
recent "Step-Up Date" (described below), the Contract Owner must exercise this
option prior to the Income Date. This GMIB may not be appropriate for Owners who
will be subject to any minimum distribution requirements under an IRA or other
qualified plan prior to the expiration of 10 Contract Years. Please consult a
tax advisor on this and other matters of selecting income options.
This GMIB only applies to the determination of income payments under the income
options specified above. It is not a guarantee of Contract Value or performance.
This benefit does not enhance the amounts paid in any withdrawals or death
benefits.
Both the amount of this GMIB and the quarterly charge for this GMIB (described
above in the Charges section) are based upon an amount called the "GMIB Benefit
Base." The GMIB Benefit Base for this GMIB is the greater of (a) or (b), where:
(a) is the Roll-Up Component which is equal to:
o the Step-Up Value on the most recent Step-Up Date; plus
o any premiums you have paid (net of any applicable
premium taxes) subsequent to that Step-Up Date; plus
o any Contract Enhancements (which are credited only in
the first Contract Year) subsequent to the Step-Up Date;
minus
o an adjustment (described below) for any withdrawals
(including any applicable charges and Excess Interest
Adjustments to those withdrawals) subsequent to that
Step-Up Date;
compounded at an annual interest rate of 6% from the most recent Step-Up Date
until the earlier of the Annuitant's 80th birthday or the exercise date of this
GMIB.
At issue, the Step-Up Date is equal to the Issue Date, and the Step-Up Value is
equal to the initial Premium paid (net of any applicable premium taxes and Sales
Charges) plus any Contract Enhancement credited. After issue, the Step-Up Date
is equal to the Contract Anniversary on which the Owner elects to step up the
Roll-Up Component to the Contract Value, and the Step-Up Value is equal to the
Contract Value on that Step-Up Date.
Electing to step-up the Roll-Up Component is optional; however, electing to
step-up means that you cannot annuitize under this GMIB for another 10 years
(from the newly determined Step-Up Date). A written request for step-up must be
received in Good Order by the Service Center within 30 days prior to the
Contract Anniversary. The latest available Step-Up Date will be the Contract
Anniversary on or immediately following the Annuitant's 75th birthday.
All adjustments for Premiums and Contract Enhancements are made on the date of
the Premium payment. All withdrawal adjustments are made at the end of the
Contract Year and on the exercise date of this GMIB. For total withdrawals up to
6% of the Roll-Up Component as of the previous Contract Anniversary, the
withdrawal adjustment is the dollar amount of the withdrawal (including any
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applicable charges and adjustments to such withdrawal). After processing any
applicable dollar for dollar portion of the withdrawal, the withdrawal
adjustment for total withdrawals in a Contract Year in excess of 6% of the
Roll-Up Component as of the previous Contract Anniversary is the Roll-Up
Component immediately prior to the excess withdrawal multiplied by the
percentage reduction in the Contract Value attributable to the excess withdrawal
(including any applicable charges and adjustments to such excess withdrawal). In
calculating the withdrawal adjustment, the Issue Date is considered a Contract
Anniversary. Generally, the larger the withdrawal, the greater the impact on the
GMIB Benefit Base. Please note also that when the Contract Value is greater than
the Roll-Up Component, dollar for dollar withdrawals would result in a larger
withdrawal adjustment than would proportional withdrawals. However, all
withdrawals will be processed as described above, regardless of the level of the
Contract Value.
and (b) is the Greatest Contract Anniversary Value Component and is equal to:
o the greatest Contract Value on any Contract Anniversary
prior to the Annuitant's 81st birthday; minus
o an adjustment (described below) for any withdrawals
after that Contract Anniversary (including any
applicable charges and Excess Interest Adjustments for
those withdrawals); plus
o any premiums paid (net of any applicable premium taxes)
after that Contract Anniversary; minus
o any taxes deducted after that Contract Anniversary.
All of the applicable listed events and their adjustments are made on the date
of the transaction. The withdrawal adjustment is the Greatest Contract
Anniversary Value Component immediately prior to the withdrawal multiplied by
the percentage reduction in the Contract Value attributable to the withdrawal
(including any applicable charges and adjustments for such withdrawals).
For an Annuitant age 52 or younger on the Contract's Issue Date, neither
component of the GMIB Benefit Base will ever exceed the cap of:
o 500% of premiums paid (net of any applicable premium
taxes and excluding premiums paid in the 12 months prior
to the date this GMIB is exercised); minus
o any withdrawals (including related charges and
adjustments) deducted since the issuance of the
Contract.
For an Annuitant age 53 or older on the Contract's Issue Date, there is no cap
on either component of the GMIB Benefit Base.
If the Contract Value falls to zero while this GMIB is in effect, then:
o Annuitization under this GMIB will be automatically
exercised if, in each Contract Year since the Issue
Date, all withdrawals taken during the Contract Year
have either been verified to be RMDs or, in total
(including any applicable charges and adjustments), have
not exceeded 6% of the Roll-Up Component as of the
previous Contract Anniversary.
o A notice of the annuitization will be sent to the
Owner within 10 calendar days, and the Owner will
have 30 days from the date the Contract Value
falls to zero to choose an income option and a
payment frequency. The Contract will remain active
during this 30-day period. If no choice is made by
the end of the 30-day period, the Owner will
receive monthly payments based on a life annuity
with 10 years certain (joint life annuity with 10
years certain if Joint Annuitants).
o Otherwise, the GMIB terminates without value.
If you are the Annuitant under your Contract and your spouse continues the
Contract after your death, your spouse will become the Annuitant and will
continue to be eligible for this GMIB as long as he or she would have been
eligible as an Annuitant when your Contract was issued and is age 84 or younger.
If your spouse does not satisfy those criteria, then this GMIB will terminate
and the charge for this GMIB will be discontinued. Similarly, if an Owner who is
a natural person is not the Annuitant and the Annuitant dies, you (the Owner)
may select a new Annuitant (who must be a person eligible to be an Annuitant on
the Issue Date and is age 84 or younger). If the new Annuitant in that situation
does not satisfy those criteria then this GMIB will terminate and the GMIB
charge discontinued. In the event of joint Annuitants, the age of the youngest
Annuitant will be used for all these determinations. Changing an Annuitant or
selecting a new Annuitant while the current Annuitant is still living is not
allowed.
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Among other requirements applicable to Contracts issued to entities/Owners, the
use of multiple Contracts by related entities to avoid maximum premium limits is
not permitted. Selection of this GMIB, with multiple Contracts or otherwise, is
subject to our administrative rules designed to assure its appropriate use. We
may update these rules as necessary.
You may not elect both a GMIB and a GMWB, and you may not elect to add a GMWB
after the Issue Date to a Contract with a GMIB.
DEATH BENEFIT
The Contract has a death benefit, namely the basic death benefit, which is
payable during the accumulation phase. Instead, you may choose an optional death
benefit for an additional charge. As opposed to the LifeGuard Freedom DB
optional death benefit, which may be selected after the Contract has been issued
but only in conjunction with the purchase of the LifeGuard Freedom GMWB, the
optional Highest Anniversary Value Death Benefit is only available upon
application. In addition, once an optional death benefit is chosen, it cannot be
canceled except upon conversion (if conversion is permitted).
The effect of any GMWB on the amount payable to your Beneficiaries upon your
death should be considered in selecting the death benefit in combination with a
GMWB. Except as provided in certain of the GMWB endorsements, no death benefit
will be paid upon your death in the event the Contract Value falls to zero.
The death benefit paid to your Beneficiary upon your death is calculated as of
the date we receive all required documentation in Good Order, 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 interest to the extent required by law. The
death benefit paid will be the basic death benefit unless you have selected an
optional death benefit endorsement. If you have a guaranteed minimum death
benefit, the amount by which the guaranteed minimum death benefit exceeds the
Contract Value will be added to your Contract Value as of the date we receive
all required documentation from the Beneficiary of record and will be allocated
among the Fixed Account and Investment Divisions according to the current
allocation instructions on file for your Contract 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 Home Office 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 spouse
Beneficiary has the right to continue the Contract in force upon your death.
The death benefit equals the greater of:
o your Contract Value as of the end of the business day on
which we have received 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 and adjustments) in the same
proportion that the Contract Value was reduced on the
date of the withdrawal.
Optional Death Benefits. Optional death benefits are available but, because
there is an additional annual charge for optional death benefits, 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 an optional death
benefit.
The Highest Anniversary Value Death Benefit 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. This
optional death benefit is available if you are 79 years of age or younger on the
Contract's Issue Date. However, the older you are when your Contract is issued,
the less advantageous it would be for you to select an optional death benefit.
Each optional death benefit is subject to our administrative rules to assure
appropriate use, which administrative rules may be changed, as necessary.
For purposes of this optional death benefits, "Net Premiums" are defined as your
premium payments net of premium taxes, reduced by any withdrawals (including
applicable charges and adjustments for such withdrawals) at the time of the
withdrawal in the same proportion that the Contract Value was reduced on the
date of the withdrawal. Accordingly, if a withdrawal were to reduce the Contract
Value by 50%, for example, Net Premiums would also be reduced by 50%. Similarly,
with the "Highest Anniversary Value" component, the adjustment to your Contract
Value for any withdrawals (including applicable charges and deductions) will
have occurred proportionally at the time of the withdrawals.
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Following are the calculations for the optional death benefits:
Highest Anniversary Value Death Benefit changes your basic death benefit during
the accumulation phase of your Contract to the greatest of:
(a) your Contract Value as of the end of the business day on
which 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, minus any withdrawals
(including any applicable withdrawal charges and
adjustments), the Annual Contract Maintenance Charges,
transfer charges, any applicable charges due under any
optional endorsement and taxes subsequent to that
Contract Anniversary, plus any premiums paid (net of any
applicable premium taxes) subsequent to that Contract
Anniversary. For contracts issued on or after January
16, 2007, Annual Contract Maintenance Charges, transfer
charges, any applicable charges due under any optional
endorsement and taxes subsequent to that Contract
Anniversary will not be deducted from your greatest
Contract Value.
Unlike the basic death benefit, for contracts issued on or after April 6, 2009,
this optional death benefit may provide value on or after the Income Date, which
is the date on which you begin receiving annuity payments. If the Income Date is
before the Owner attains the age of 95, then this optional death benefit
endorsement terminates and no death benefit is payable. However, if the Income
Date is on the date the Owner attains age of 95 (which is the latest possible
Income Date), then the death benefit amount is equal to the excess, if any, of
(a) minus (b) where:
(a) = the GMDB Benefit Base on the Income Date; and
(b) = the Contract Value on the Income Date.
If there is a death benefit amount on or after the Income Date, it will be
payable to the Beneficiary when due proof of the Owner's death is received by
the Company in Good Order. If the Owner is not deceased as of the date that the
final annuity payment under the elected income option is due, the death benefit
amount will be payable in a lump sum to the Owner along with the final annuity
payment.
Conversion. You may convert this Highest Anniversary Value Death Benefit to
LifeGuard Freedom DB if (1) you previously elected both this Highest Anniversary
Value Death Benefit and LifeGuard Freedom GMWB, and (2) LifeGuard Freedom GMWB
was added to your Contract on or after March 31, 2008 but before October 6,
2009. (The LifeGuard Freedom DB is only available in conjunction with the
purchase of the LifeGuard Freedom GMWB.) Conversion may reduce the dollar amount
of your death benefit under the new benefit versus the old benefit because the
recalculated death benefit under the new benefit takes into account any negative
investment performance under your Contract. For conversion, the new benefit must
be available at the time of election and you must meet the eligibility
requirements for the new benefit. Conversion is permitted on any Contract
Anniversary before June 6, 2010. A request in Good Order for conversion is due
30 days before a Contract Anniversary for the conversion to take effect on the
Contract Anniversary.
We will send you the new endorsement. Upon conversion, all conditions, rules,
benefits, charges and limitations of the new optional withdrawal benefit will
apply to you. The charge of the new death benefit to which you convert will be
higher than that currently charged for this Highest Anniversary Value Death
Benefit. Conversion is not a right under the Contract or endorsement. We
currently allow conversions, and we may discontinue doing so at any time in the
future. In addition, no more than two conversions are currently allowed over the
life of a Contract.
Importantly, the new death benefit upon any conversion of your current benefit
would be equal to the Contract Value at the time of the conversion. As a result,
if the death benefit in your current benefit is higher than your Contract Value,
your death benefit will decrease upon conversion. Furthermore, since the
Contract Value includes any previously applied Contract Enhancement, we subtract
any applicable recapture charge from the Contract Value to calculate the new
death benefit under the new endorsement; therefore, in calculating the new death
benefit, a recapture charge associated with any Contract Enhancement will reduce
the new death benefit below the Contract Value at conversion.
Please consult your representative to see whether a conversion, given your
individual needs and circumstances, will provide you with more appropriate
coverage than you currently enjoy.
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LifeGuard Freedom DB, changes your basic death benefit during the accumulation
phase of your Contract to the greatest of:
(a) The Contract's Basic Death Benefit (see the description
above);
or
(b) The GMWB Death Benefit
The LifeGuard Freedom DB is only available in conjunction with the purchase of
the LifeGuard Freedom GMWB and only if the Owner is 75 years of age or younger
on the date the endorsement is added to the Contract. At election, the GMWB
Death Benefit equals the LifeGuard Freedom GMWB Guaranteed Withdrawal Balance
(GWB). If you select the LifeGuard Freedom GMWB when you purchase your Contract,
the GWB is generally your initial premium payment, net of any applicable premium
taxes and adjusted for any subsequent premium payments and withdrawals. If the
LifeGuard Freedom GMWB is elected after the issue date, the GWB is generally
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, adjusted for any
subsequent premium payments and withdrawals. Election of LifeGuard Freedom DB
after issue is only permitted if another optional death benefit endorsement has
not been elected, unless you convert to LifeGuard Freedom DB from Highest
Anniversary Value Death Benefit. (For information about conversion privileges
under the Highest Anniversary Value Death Benefit, please see the description of
that optional death benefit beginning on page 168.) In addition, if you convert
to LifeGuard Freedom GMWB from another Guaranteed Minimum Withdrawal Benefit,
LifeGuard Freedom DB is not available unless you are converting from the older
version of LifeGuard Freedom GMWB to the newer version of LifeGuard Freedom
GMWB. (For information about conversion privileges under LifeGuard Freedom GMWB,
please see "Conversion" beginning on page 136.)
At the time of a partial withdrawal, if the partial withdrawal plus all prior
partial withdrawals made in the current Contract Year is less than or equal to
the greater of (1) the LifeGuard Freedom GMWB Guaranteed Annual Withdrawal
Amount (GAWA) or (2) the required minimum distribution (RMD) under the Internal
Revenue Code (for certain tax-qualified Contracts), the GMWB Death Benefit will
be unchanged. If a partial withdrawal plus all prior partial withdrawals made in
the current Contract Year exceeds the greater of the GAWA or the RMD, the excess
withdrawal is defined to be the lesser of (1) the amount of the partial
withdrawal or (2) the amount by which the cumulative partial withdrawals for the
current Contract Year exceeds the greater of the GAWA or the RMD, and the GMWB
Death Benefit is reduced in the same proportion as the Contract Value is reduced
for the excess withdrawal.
With each subsequent premium received after this endorsement is effective, the
GMWB Death Benefit is recalculated to equal the GMWB Death Benefit prior to the
premium payment plus the amount of the premium payment, net of any applicable
premium taxes, subject to a maximum of $5,000,000.00.
The GMWB Death Benefit is not adjusted upon step-up, the application of the GWB
adjustment or the application of any bonus. The GMWB Death Benefit will
terminate on the date the Contract Value equals zero.
For more information about how the LifeGuard Freedom GMWB works, including how
the GWB and GAWA are calculated, please see "For Life GMWB With Bonus and Annual
Step-Up" beginning on page 127.
Unlike the basic death benefit, this optional death benefit may provide value on
or after the Income Date, which is the date on which you begin receiving annuity
payments. If the Income Date is before the Owner attains the age of 95, then
this optional death benefit endorsement terminates and no death benefit is
payable. However, if the Income Date is on the date the Owner attains age of 95
(which is the latest possible Income Date) and one of the following income
options is elected, then the corresponding death benefit is payable:
o Life Income of the GAWA. If this income option is elected, the
death benefit payable to the Beneficiary when due proof of the
Owner's death is received by the Company in Good Order is
equal to the GMWB Death Benefit as of the Income Date.
o Specified Period Income of the GAWA. If this income option is
elected, the death benefit payable to the Beneficiary when due
proof of the Owner's death is received by the Company in Good
Order is equal to the GMWB Death Benefit as of the Income
Date.
If, under this income option, the Owner is not deceased as of
the date that the final payment of the remaining GWB is due,
the death benefit will be
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payable in a lump sum to the Owner along with the remaining
GWB.
o Life Income. If this income option is elected and the Owner is
the Annuitant or is a non-natural person, the death benefit
payable to the Beneficiary when due proof of the Annuitant's
death is received by the Company in Good Order is equal to the
excess, if any, of (a) minus (b) where:
(a) = the GMWB Death Benefit on the Income Date; and
(b) = the Contract Value on the Income Date.
o Joint and Survivor. If this income option is elected and the
Owner is the Annuitant or is a non-natural person, the death
benefit payable to the Beneficiary when due proof of the
survivor's death is received by the Company in Good Order is
equal to the excess, if any, of (a) minus (b) where:
(a) = the GMWB Death Benefit on the Income Date; and
(b) = the Contract Value on the Income Date.
o Life Annuity With at Least 120 or 240 Monthly Payments. If
this income option is elected and the Owner is the Annuitant
or is a non-natural person, the death benefit payable to the
Beneficiary when due proof of the Annuitant's death is
received by the Company in Good Order is equal to the excess,
if any, of (a) minus (b) where:
(a) = the GMWB Death Benefit on the Income Date; and
(b) = the Contract Value on the Income Date.
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, at the current Contract
Value, in his/her own name. For more information, please see "Special Spousal
Continuation Option" beginning on page 171.
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. However, at the time of your death, we may modify the death benefit
option if the death benefit you selected exceeds the life expectancy of the
Beneficiary. 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. If the Beneficiary does
not submit the required documentation for the death benefit to us within one
year of your death, however, the death benefit must be paid, in a single lump
sum, within five years of your death.
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,
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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, so the death benefit may be at a different level.
If your spouse elects to continue the Contract, your spouse, as new Owner,
cannot terminate most of the optional benefits you elected. Any GMIB will
terminate upon your death (and no further GMIB charges will be deducted), unless
your spouse is eligible for the benefit and elects to continue it with the
Contract. For more information, please see the descriptions of the "Guaranteed
Minimum Income Benefits" beginning on page 163. Similarly, a GMWB will also
terminate upon your death (and no further GMWB charges will be deducted), unless
your spouse is eligible for the benefit and elects to continue it with the
Contract. For more information, please see the respective GMWB subsections of
this prospectus.
The Special Spousal Continuation Option is available to elect one time on the
Contract. 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 who 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.
Death of Annuitant. If the Annuitant is not an Owner or joint Owner and dies
before the Income Date, you can name a new Annuitant, subject to our
underwriting rules. 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.
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.
CONTRACT OWNER TAXATION
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 tax-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, including withdrawals under any GMWB you may elect, or an income
payment) is made from the Contract. This tax deferral is
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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 - Aggregation of Contracts. For purposes of determining
the taxability of a distribution, the Code provides that all non-qualified
contracts issued by us (or an affiliate) to you during any calendar year must be
treated as one annuity contract. Additional rules may be promulgated under this
Code provision to prevent avoidance of its effect through the ownership of
serial contracts or otherwise.
Non-Qualified Contracts - Withdrawals and Income Payments. Any withdrawal from a
non-qualified Contract, including withdrawals under any GMWB you may elect, is
taxable as ordinary income to the extent it does not exceed the accumulated
earnings under the Contract. In contrast, 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 life expectancy) or for a period not exceeding
the joint lives (or joint life expectancies) of you and
your Beneficiary;
o paid under an immediate annuity; or
o which come from premiums made prior to August 14, 1982.
Non-Qualified Contracts - Required Distributions. In order to be treated as an
annuity contract for federal income tax purposes, the Code requires any
nonqualified contract issued after January 18, 1985 to provide that (a) if an
owner dies on or after the annuity starting date but prior to the time the
entire interest in the contract has been distributed, the remaining portion of
such interest will be distributed at least as rapidly as under the method of
distribution being used as of the date of that owner's death; and (b) if an
owner dies prior to the annuity starting date, the entire interest in the
contract must be distributed within five years after the date of the owner's
death.
The requirements of (b) above can be considered satisfied if any portion of the
Owner's interest which is payable to or for the benefit of a "designated
Beneficiary" is distributed over the life of such Beneficiary or over a period
not extending beyond the life expectancy of that Beneficiary and such
distributions begin within one year of that Owner's death. The Owner's
"designated Beneficiary," who must be a natural person, is the person designated
by such Owner as a Beneficiary and to whom ownership of the Contract passes by
reason of death. However, if the Owner's "designated Beneficiary" is the
surviving spouse of the Owner, the contract may be continued with the surviving
spouse as the new Owner.
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 required minimum distribution 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, including withdrawals under any GMWB
you may elect, 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;
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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 non-qualified
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 Contract Value each year from the
inception of the Contract or the entire increase in the Contract Value would be
taxable in the year of your Latest Income Date. 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.
IRS Approval. The Contract and all death benefit riders attached thereto have
been approved by the IRS for use as an Individual Retirement Annuity prototype.
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. A fuller
discussion of the diversification requirements is contained in the SAI.
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 of NY
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 12 investment options with the insurance company having the
ability to add an additional 8 options whereas a Contract offers 92 Investment
Divisions and at least one Fixed Account, although a Contract Owner's Contract
Value can be allocated to 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.
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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 of NY 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.
Withholding. In general, the income portion of distributions from a Contract are
subject to 10% federal income tax withholding and the income portion of income
payments are subject to withholding at the same rate as wages unless you elect
not to have tax withheld. Some states have enacted similar rules. Different
rules may apply to payments delivered outside the United States.
Eligible rollover distributions from a Contract issued under certain types of
tax-qualified plans will be subject to federal tax withholding at a mandatory
20% rate unless the distribution is made as a direct rollover to a tax-qualified
plan or to an individual retirement account or annuity.
The Code generally allows the rollover of most distributions to and from
tax-qualified plans, tax-sheltered annuities, Individual Retirement Annuities
and eligible deferred compensation plans of state or local governments.
Distributions which may not be rolled over are those which are:
(a) one of a series of substantially equal annual (or more
frequent) payments made (a) over the life or life
expectancy of the employee, (b) the joint lives or joint
life expectancies of the employee and the employee's
Beneficiary, or (c) for a specified period of ten years
or more;
(b) a required minimum distribution;
(c) a hardship withdrawal; or
(d) the non-taxable portion of a distribution.
JACKSON OF NY TAXATION
We will pay company income taxes on the taxable corporate earnings created by
this separate account product adjusted for various permissible deductions and
certain tax benefits discussed below. While we may consider company income tax
liabilities and tax benefits when pricing our products, we do not currently
include our income tax liabilities in the charges you pay under the contract. We
will periodically review the issue of charging for these taxes and may impose a
charge in the future. (We do impose a so-called "Federal (DAC) Tax Charge" under
variable life insurance policies, but the "Federal (DAC) Tax Charge" merely
compensates us for the required deferral of acquisition cost and does not
constitute company income taxes.)
In calculating our corporate income tax liability, we derive certain corporate
income tax benefits associated with the investment of company assets, including
separate account assets that are treated as company assets under applicable
income tax law. These benefits reduce our overall corporate income tax
liability. Under current law, such benefits may include dividends received
deductions and foreign tax credits which can be material. We do not pass these
benefits through to the separate accounts, principally because: (i) the great
bulk of the benefits results from the dividends received deduction, which
involves no reduction in the dollar amount of dividends that the separate
account receives; (ii) product owners are not the owners of the assets
generating the benefits under applicable income tax law; and (iii) while we
impose a so-called "Federal (DAC) Tax Charge" under variable life insurance
policies, we do not currently include company income taxes in the charges owners
pay under the products.
OTHER INFORMATION
Dollar Cost Averaging. If the amount allocated to the Investment Divisions plus
the amount allocated to the Fixed Account options is at least $15,000, you can
arrange to have a dollar amount or percentage of money periodically transferred
automatically into other Investment Divisions from any of the Investment
Divisions or the one-year Fixed Account. In the case of transfers from the
Investment Divisions or the one-year Fixed Account with a stable unit value,
this can let you pay a lower average cost per unit 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. There is no charge for Dollar Cost Averaging. Certain minimums
and restrictions may apply, including that you may not select Dollar Cost
Averaging at the same time as Rebalancing. We may offer an enhanced rate of
interest, which would be credited daily, on premiums you allocate to the Fixed
Account for a specified period, and we may require equal monthly transfers to
the Investment Divisions during the time.
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Special Dollar Cost Averaging (DCA+). DCA+ is only available to Contracts issued
on or after July 14, 2008. The DCA+ Fixed Account Option is a "source account"
designed for dollar cost averaging transfers to Investment Divisions or
systematic transfers to other Fixed Account Options. The DCA+ Fixed Account
Option is credited with a special interest rate. If a DCA+ Fixed Account Option
is selected, monies in the DCA+ Fixed Account Option will be systematically
transferred to the Investment Divisions or other Fixed Account Options chosen
over the DCA+ term selected. There is no charge for DCA+. We may discontinue the
availability of DCA+ at any time and without notice. You should consult your
Jackson representative with respect to the current availability of the Fixed
Account Options and the availability of DCA+.
Earnings Sweep. You can choose to move your earnings from the money market
Investment Division or the one-year Fixed Account, if available, on a monthly
basis, and there is no minimum transfer amount. There is no charge for Earnings
Sweep.
Rebalancing. You can arrange to have us automatically reallocate your Contract
Value among Investment Divisions and the one-year Fixed Account 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. You may not select Rebalancing at the same time as Dollar
Cost Averaging. There is no charge for Rebalancing.
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 twenty
days after receiving it. We will return
o the Contract Value in the Investment Divisions, plus
o the full amount of premium you allocated to the Fixed
Account (minus any withdrawals).
We will determine the Contract Value in the Investment Divisions as of the date
we receive the Contract or the date you return it to the selling agent. We will
return premium payments where required by law.
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 contract maintenance and withdrawal
charges, but will not reflect charges for optional features except in
performance data used in sales materials that promote those optional features.
The deduction of withdrawal charges and/or the charges for optional features
would reduce the percentage increase or make greater any percentage decrease.
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 of NY is
a party.
Jackson, Jackson 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
176
referred to as market conduct litigation. The market conduct litigation
currently pending against Jackson 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
Jackson during periods ranging from 1981 to present. Jackson has retained
national and local counsel experienced in the handling of such litigation. To
date, such litigation has either been resolved by Jackson on a non-material
basis, or is being vigorously defended. Jackson accrues for legal contingencies
once the contingency is deemed to be probable and estimable. Please see the
Jackson National Life Insurance Company and Subsidiaries Consolidated Financial
Statements for the year ending December 31, 2008, for information concerning
such amounts that have been accrued. At this time, it is not feasible to make a
meaningful estimate of the amount or range of any additional losses 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.
You should know that your representative is independent of Jackson. He or she is
responsible for the use and security of information you provide him or her.
Please contact your representative if you have questions about his or her
privacy policy.
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.
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TABLE OF CONTENTS OF
THE STATEMENT OF ADDITIONAL INFORMATION
General Information and History........................................... 2
Services.................................................................. 5
Purchase of Securities Being Offered...................................... 6
Underwriters.............................................................. 6
Calculation of Performance................................................ 6
Additional Tax Information................................................ 8
Annuity Provisions........................................................ 18
Net Investment Factor..................................................... 19
Condensed Financial Information........................................... 19
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APPENDIX A
TRADEMARKS, SERVICE MARKS, AND RELATED DISCLOSURES
"JNL(R)," "Jackson National(R)" and "Jackson(SM)" are trademarks or service
marks of Jackson National Life Insurance Company.
"Dow Jones," "Dow Jones Industrial Average(SM)," "Dow Jones Select Dividend
Index(SM)," "DJIA(SM)," "The Dow(SM)" and "the Dow 10(SM)" are service marks of
Dow Jones & Company, Inc. ("Dow Jones"). Dow Jones has no relationship to the
annuity and Jackson, other than the licensing of the Dow Jones Industrial
Average (DJIA) and its service marks for use in connection with the following
funds:
JNL/Mellon Capital Management Dow(SM) 10 Fund;
JNL/Mellon Capital Management Dow(SM) Dividend Fund;
JNL/Mellon Capital Management JNL 5 Fund;
JNL/Mellon Capital Management VIP Fund;
JNL/Mellon Capital Management JNL Optimized 5 Fund;
JNL/Mellon Capital Management Communications Sector Fund;
JNL/Mellon Capital Management Consumer Brands Sector Fund;
JNL/Mellon Capital Management Financial Sector Fund;
JNL/Mellon Capital Management Healthcare Sector Fund;
JNL/Mellon Capital Management Oil & Gas Sector Fund; and
JNL/Mellon Capital Management Technology Sector Fund.
Dow Jones does not:
o Sponsor, endorse, sell or promote the JNL/Mellon Capital Management
Dow(SM) 10 Fund, the JNL/Mellon Capital Management Dow(SM) Dividend Fund,
the JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital
Management VIP Fund, the JNL/Mellon Capital Management JNL Optimized 5
Fund, the JNL/Mellon Capital Management Communications Sector Fund, the
JNL/Mellon Capital Management Consumer Brands Sector Fund, the JNL/Mellon
Capital Management Financial Sector Fund, the JNL/Mellon Capital
Management Healthcare Sector Fund, the JNL/Mellon Capital Management Oil &
Gas Sector Fund, and the JNL/Mellon Capital Management Technology Sector
Fund.
o Recommend that any person invest in the JNL/Mellon Capital Management
Dow(SM) 10 Fund, the JNL/Mellon Capital Management Dow(SM) Dividend Fund,
the JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital
Management VIP Fund, the JNL/Mellon Capital Management JNL Optimized 5
Fund, the JNL/Mellon Capital Management Communications Sector Fund, the
JNL/Mellon Capital Management Consumer Brands Sector Fund, the JNL/Mellon
Capital Management Financial Sector Fund, the JNL/Mellon Capital
Management Healthcare Sector Fund, the JNL/Mellon Capital Management Oil &
Gas Sector Fund, and the JNL/Mellon Capital Management Technology Sector
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 Dow(SM) 10
Fund, the JNL/Mellon Capital Management Dow(SM) Dividend Fund, the
JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital
Management VIP Fund, the JNL/Mellon Capital Management JNL Optimized 5
Fund, the JNL/Mellon Capital Management Communications Sector Fund, the
JNL/Mellon Capital Management Consumer Brands Sector Fund, the JNL/Mellon
Capital Management Financial Sector Fund, the JNL/Mellon Capital
Management Healthcare Sector Fund, the JNL/Mellon Capital Management Oil &
Gas Sector Fund, and the JNL/Mellon Capital Management Technology Sector
Fund.
o Have any responsibility or liability for the administration, management or
marketing of the JNL/Mellon Capital Management Dow(SM) 10 Fund, the
JNL/Mellon Capital Management Dow(SM) Dividend Fund, the JNL/Mellon
Capital Management JNL 5 Fund, the JNL/Mellon Capital Management VIP Fund,
the JNL/Mellon Capital Management JNL Optimized 5 Fund, the JNL/Mellon
Capital Management Communications Sector Fund, the JNL/Mellon Capital
Management Consumer Brands Sector Fund, the JNL/Mellon Capital Management
Financial Sector Fund, the JNL/Mellon Capital Management Healthcare Sector
Fund, the JNL/Mellon Capital Management Oil & Gas Sector Fund, and the
JNL/Mellon Capital Management Technology Sector Fund.
A-1
o Consider the needs of the JNL/Mellon Capital Management Dow(SM) 10 Fund,
the JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital
Management VIP Fund, the JNL/Mellon Capital Management Dow(SM) Dividend
Fund JNL/Mellon Capital Management Dow(SM) 10 Fund, the JNL/Mellon Capital
Management Dow(SM) Dividend Fund, the JNL/Mellon Capital Management JNL 5
Fund, the JNL/Mellon Capital Management VIP Fund, the JNL/Mellon Capital
Management JNL Optimized 5 Fund, the JNL/Mellon Capital Management
Communications Sector Fund, the JNL/Mellon Capital Management Consumer
Brands Sector Fund, the JNL/Mellon Capital Management Financial Sector
Fund, the JNL/Mellon Capital Management Healthcare Sector Fund, the
JNL/Mellon Capital Management Oil & Gas Sector Fund, and the JNL/Mellon
Capital Management Technology Sector Fund or the owners of the JNL/Mellon
Capital Management Dow(SM) 10 Fund, the JNL/Mellon Capital Management
Dow(SM) Dividend Fund, the JNL/Mellon Capital Management JNL 5 Fund, the
JNL/Mellon Capital Management VIP Fund, the JNL/Mellon Capital Management
JNL Optimized 5 Fund, the JNL/Mellon Capital Management Communications
Sector Fund, the JNL/Mellon Capital Management Consumer Brands Sector
Fund, the JNL/Mellon Capital Management Financial Sector Fund, the
JNL/Mellon Capital Management Healthcare Sector Fund, the JNL/Mellon
Capital Management Oil & Gas Sector Fund, and the JNL/Mellon Capital
Management Technology Sector 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 Dow(SM) 10 Fund, the JNL/Mellon Capital Management Dow(SM) Dividend
Fund, the JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital
Management VIP Fund, the JNL/Mellon Capital Management JNL Optimized 5 Fund, the
JNL/Mellon Capital Management Communications Sector Fund, the JNL/Mellon Capital
Management Consumer Brands Sector Fund, the JNL/Mellon Capital Management
Financial Sector Fund, the JNL/Mellon Capital Management Healthcare Sector Fund,
the JNL/Mellon Capital Management Oil & Gas Sector Fund, or the JNL/Mellon
Capital Management Technology Sector 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
Dow(SM) 10 Fund, the JNL/Mellon Capital Management Dow(SM) Dividend
Fund, the JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon
Capital Management VIP Fund, the JNL/Mellon Capital Management JNL
Optimized 5 Fund, the JNL/Mellon Capital Management Communications
Sector Fund, the JNL/Mellon Capital Management Consumer Brands
Sector Fund, the JNL/Mellon Capital Management Financial Sector
Fund, the JNL/Mellon Capital Management Healthcare Sector Fund, the
JNL/Mellon Capital Management Oil & Gas Sector Fund, and the
JNL/Mellon Capital Management Technology Sector Fund, the owners of
the JNL/Mellon Capital Management Dow(SM) 10 Fund, the JNL/Mellon
Capital Management Dow(SM) Dividend Fund, the JNL/Mellon Capital
Management JNL 5 Fund, the JNL/Mellon Capital Management VIP Fund,
the JNL/Mellon Capital Management JNL Optimized 5 Fund, the
JNL/Mellon Capital Management Communications Sector Fund, the
JNL/Mellon Capital Management Consumer Brands Sector Fund, the
JNL/Mellon Capital Management Financial Sector Fund, the JNL/Mellon
Capital Management Healthcare Sector Fund, the JNL/Mellon Capital
Management Oil & Gas Sector Fund, and the JNL/Mellon Capital
Management Technology Sector 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.
The licensing agreement between Jackson National Life Insurance Company(R) and
Dow Jones is solely for their benefit and not for the benefit of the owners of
the JNL/Mellon Capital Management Dow(SM) 10 Fund, the JNL/Mellon Capital
Management JNL 5 Fund, the JNL/Mellon Capital Management VIP Fund, the
JNL/Mellon Capital Management Dow(SM) Dividend Fund, the JNL/Mellon Capital
Management JNL Optimized 5 Fund, the JNL/Mellon Capital Management
Communications Sector Fund, the JNL/Mellon Capital Management Consumer Brands
Sector Fund, the JNL/Mellon Capital Management Financial Sector Fund, the
JNL/Mellon Capital Management Healthcare Sector Fund, the JNL/Mellon Capital
Management Oil & Gas Sector Fund, and the JNL/Mellon Capital Management
Technology Sector Fund or any other third parties.
--------------------------------------------------------------------------------
Goldman Sachs is a registered service mark of Goldman, Sachs & Co.
A-2
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
(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(R)" are trade or service marks of The Nasdaq, Inc. (which with its
affiliates are the "Corporations") and have been licensed for use by Jackson.
The Corporations have not passed on the legality or suitability of the
JNL/Mellon Capital Management Nasdaq(R)25 Fund, the JNL/Mellon Capital
Management JNL Optimized 5 Fund, or the JNL/Mellon Capital Management VIP Fund.
The JNL/Mellon Capital Management Nasdaq(R) 25 Fund, the JNL/Mellon Capital
Management VIP Fund and the JNL/Mellon Capital Management JNL Optimized 5 Fund
are 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) 25 FUND, THE JNL/MELLON
CAPITAL MANAGEMENT VIP FUND AND THE JNL/MELLON CAPITAL MANAGEMENT JNL OPTIMIZED
5 FUND.
"NYSE(R)" is a registered mark of, and "NYSE International 100 Index(SM)" is a
service mark of, the New York Stock Exchange, Inc. ("NYSE") and have been
licensed for use for certain purposes by Jackson National Asset Management, LLC.
The JNL/Mellon Capital Management NYSE(R) International 25 Fund is not
sponsored, endorsed, sold or promoted by NYSE, and NYSE makes no representation
regarding the advisability of investing in the JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
"NYSE International 100 Index(SM)" is a service mark of NYSE Group, Inc. NYSE
Group, Inc. has no relationship to Jackson National Asset Management, LLC, other
than the licensing of the "NYSE International 100 Index(SM)" (the "Index") and
its service marks for use in connection with the JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
NYSE Group, Inc. does not:
o Sponsor, endorse, sell or promote the JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
o Recommend that any person invest in the JNL/Mellon Capital
Management NYSE(R) International 25 Fund or any other securities.
o Have any responsibility or liability for or make any decisions about
the timing, amount or pricing of JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
o Have any responsibility or liability for the administration,
management or marketing of the JNL/Mellon Capital Management NYSE(R)
International 25 Fund.
o Consider the needs of the JNL/Mellon Capital Management NYSE(R)
International 25 Fund or the owners of the JNL/Mellon Capital
Management NYSE(R) International 25 Fund in determining, composing
or calculating the NYSE International 100 Index(SM) or have any
obligation to do so.
A-3
--------------------------------------------------------------------------------
NYSE Group, Inc. and its affiliates will not have any liability in connection
with the JNL/Mellon Capital Management NYSE(R) International 25 Fund.
Specifically,
o NYSE Group, Inc. and its affiliates make no warranty, express or implied,
and NYSE Group, Inc. and its affiliates disclaim any warranty about:
o The results to be obtained by the JNL/Mellon Capital Management NYSE(R)
International 25 Fund, the owner of the JNL/Mellon Capital Management
NYSE(R) International 25 Fund or any other person in connection with the
use of the Index and the data included in the NYSE International 100
Index(SM);
o The accuracy or completeness of the Index and its data;
o The merchantability and the fitness for a particular purpose or use of the
Index and its data;
o NYSE Group, Inc. will have no liability for any errors, omissions or
interruptions in the Index or its data;
o Under no circumstances will NYSE Group, Inc. or any of its affiliates be
liable for any lost profits or indirect, punitive, special or
consequential damages or losses, even if NYSE Group, Inc. knows that they
might occur.
The licensing agreement between Jackson National Asset Management, LLC and NYSE
Group, Inc. is solely for their benefit and not for the benefit of the owners of
the JNL/Mellon Capital Management NYSE(R) International 25 Fund or any other
third parties.
--------------------------------------------------------------------------------
Russell Investment Group is the source and owner of the trademarks, service
marks and copyrights related to the Russell Indexes. Russell is a trademark of
Russell Investment Group.
JNL/Mellon Capital Management Small Cap Index Fund is not promoted, sponsored or
endorsed by, nor in any way affiliated with Russell Investment Group
("Russell"). Russell is not responsible for and has not reviewed JNL/Mellon
Capital Management Small Cap Index Fund nor any associated literature or
publications and Russell makes no representation or warranty, express or
implied, as to their accuracy, or completeness, or otherwise.
Russell reserves the right, at any time and without notice, to alter, amend,
terminate or in any way change the Russell Indexes. Russell has no obligation to
take the needs of any particular fund or its participants or any other product
or person into consideration in determining, composing or calculating any of the
Russell Indexes.
Russell's publication of the Russell Indexes in no way suggests or implies an
opinion by Russell as to the attractiveness or appropriateness of investment in
any or all securities upon which the Russell Indexes are based. RUSSELL MAKES NO
REPRESENTATION, WARRANTY, OR GUARANTEE AS TO THE ACCURACY COMPLETENESS,
RELIABILITY, OR OTHERWISE OF THE RUSSELL INDEXES. RUSSELL MAKES NO
REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE, OR THE RESULTS OF USE,
OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITY (OR
COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES. RUSSELL MAKES NO OTHER
EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND,
INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTIBILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY
SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," "S&P
MidCap 400 Index," "S&P 500/Citigroup Value Index," "S&P MidCap 400/Citigroup
Value Index," and the "S&P SmallCap 600 Index" are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by Jackson. The JNL/Mellon
Capital Management S&P 500 Index Fund, the JNL/Mellon Capital Management S&P 400
MidCap Index Fund, the JNL/Mellon Capital Management S&P(R) 10 Fund, the
JNL/Mellon Capital Management S&P(R) SMid 60 Fund, the JNL/Mellon Capital
Management JNL 5 Fund, the JNL/Mellon Capital Management VIP Fund, the
JNL/Mellon Capital Management S&P(R) 24 Fund and any other investment fund or
other vehicle that is offered by third parties and that seeks to provide an
investment return based on the returns of any Standard & Poor's Index are not
sponsored, endorsed, sold or promoted by Standard & Poor's Financial Services
LLC, a wholly owned subsidiary of The McGraw-Hill Companies, Inc. ("S&P") and
its affiliates. S&P and its affiliates make no representation or warranty,
express or implied, to the owners of the Fund or any member of the public
regarding the advisability of investing in these Funds. Among the fund options
considered are index funds based on the S&P 500 and other indexes that are
published by S&P. S&P typically receives license fees from the issuers of such
funds, some of which may be based on the amount of assets invested in the fund.
Please see the Statement of Additional Information which sets forth certain
additional disclaimers and limitations of liabilities on behalf of S&P.
"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. The JNL/Mellon
Capital Management Value Line(R) 30 Fund, the JNL/Mellon Capital Management VIP
Fund, and the JNL/Mellon Capital Management JNL Optimized 5 Fund are 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) 30 Fund, the JNL/Mellon Capital Management VIP Fund,
and the JNL/Mellon Capital Management JNL Optimized 5 Fund. Jackson is not
affiliated with any Value Line Company.
A-4
APPENDIX B
CONTRACT ENHANCEMENT RECAPTURE CHARGES
[Enlarge/Download Table]
--------------------------------------------------------------------------------------------------------------
Example 1 using the Base Withdrawal Charge Schedule
--------------------------------------------------------------------------------------------------------------
100,000.00 : Premium
4.00% : Withdrawal Charge Year 4
3.00% : Contract Enhancement
2.00% : Recapture Charge Year 4
5.00% : Net Return
--------------------------------------------------------------------------------------------------------------
At end of Year 4
--------------------------------------------------------------------------------------------------------------
125,197.14 : Contract Value at end of year 4
100,000.00 : Net Withdrawal requested
25,197.14 : Earnings
79,577.51 : Premium withdrawn (grossed up to account for Withdrawal Charge and Recapture Charge)
----------
104,744.65 : Total Gross Withdrawal
104,774.65 : Total Gross Withdrawal
-3,183.10 : Withdrawal Charge
-1,591.55 : Recapture Charge
----------
100,000.00 : Total Net Withdrawal
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Example 2 using the Base Withdrawal Charge Schedule
--------------------------------------------------------------------------------------------------------------
10/1/05
100,000.00 : Premium
5.00% : Withdrawal Charge Contribution Year 3
2.00% : Recapture Charge Contribution Year 3
12/1/05
100,000.00 : Premium
6.00% : Withdrawal Charge Contribution Year 2
3.00% : Recapture Charge Contribution Year 2
3.00% : Contract Enhancement
0.00% : Net Return
11/1/07
206,000.00 : Contract Value
150,000.00 : Net Withdrawal Requested
6,000.00 : Earnings
14,000.00 : 10% Additional Free Withdrawal Amount
100,000.00 : Premium 1 withdrawn (grossed up to account for Withdrawal Charge and Recapture Charge)
40,659.34 : Premium 2 withdrawn (grossed up to account for Withdrawal Charge and Recapture Charge)
----------
160,659.34 : Total Gross Withdrawal
160,659.34 : Total Gross Withdrawal
-5,000.00 : Withdrawal Charge from Premium 1
-2,000.00 : Recapture Charge from Premium 1
-2,439.56 : Withdrawal Charge from Premium 2
-1,219.78 : Recapture Charge from Premium 2
----------
150,000.00 : Total Net Withdrawal
--------------------------------------------------------------------------------------------------------------
B-1
APPENDIX C
BROKER-DEALER SUPPORT
Below is a complete list of broker-dealers that received marketing and
distribution and/or administrative support in 2008 from the Distributor in
relation to the sale of our variable insurance products.
[Enlarge/Download Table]
1st Discount Brokerage, Inc. Capital Analysts, Inc. Essex National Securities Harvest Capital
1st Global Capital Corp. Capital City Securities Feltl & Company Hazard & Siegel, Inc.
Abbott Bennett Group LLC Capital Financial Group Ferris Baker Watts, Inc. HBW Securities
A.G. Edwards & Sons, Inc. CCF Investments, Inc. FFP Securities, Inc. Heim, Young & Associates, Inc.
Acorn Financial CCO Investment Services Corp. Fifth Third Securities Hornor Townsend & Kent, Inc.
Advantage Capital Corp. Centennial Securities Company Financial Network Investment Huckin Financial Group, Inc.
Advisors Marketing, Inc. Centaurus Financial, Inc. First Allied Securities, Inc. Huntington Investment Company
AIG Financial Advisors Century Securities First Brokerage America IMS Securities
Allegiant Securities CFD Investments, Inc. First Heartland Capital, Inc. Independent Financial Group
American General Securities Chevy Chase Securities First Independent Financial Infinex Investments
American Investors Company Choice Investments, Inc. First Merit Insurance Agency ING Financial
American Portfolios Financial Colonial Brokerage FNB Brokerage Services Institutional Securities Corp.
Ameriprise Advisor Services Colonial Financial Services Fortune Financial Services InterCarolina Financial
Ameritas Investment Corp. Colonial Investments Services Founders Financial Securities Services
Apple Tree Investments Commonwealth Financial Network Fox & Company Investments, Inc. Intersecurities, Inc.
Askar Corp. Community Bankers Securities FSC Securities Corp. Intervest International
Associated Securities Corp. Comprehensive Asset Management, FTC Methods Inc. Invest Financial Corp.
AXA Advisors, LLC Inc. G.A. Repple and Company Investacorp, Inc.
BancWest Investment Services Coordinated Capital Securities G.W. Sherwold Associates, Inc. Investment Center, Inc.
BB&T Investment Services Inc. Countrywide Investment Services GBA Financial Group, LLC Investment Centers of America,
BCG Securities Crowell, Weedon & Company Geneos Wealth Management, Inc. Inc.
Bentley Lawrence Securities Crown Capital Securities L.P. GF Investment Services Investment Professionals, Inc.
Berthel Fisher & Company CUE Financial Group, Inc. GLP Investment Services Investors Capital Corp.
Financial Services CUNA Brokerage Services, Inc. Great American Advisors, Inc. J P Turner & Company, LLC
BFT Financial CUSO Financial Services Great Nation Investment Corp. J.J.B. Hilliard, W.L. Lyons,
BOSC, Inc. Cutter and Company Great Southern Investments LLC
Brecek & Young Advisors, Inc. D.A. Davidson & Company Gunn Allen Financial, Inc. J.W. Cole Financial, Inc.
Brewer Financial Services Dunwoody Brokerage Services, Inc. GWN Securities, Inc. Janney Montgomery Scott, LLC
Broad Street Securities E Planning Securities, Inc. H D Vest Investment Securities Jefferson Pilot Securities
Broker Dealer Financial Economy Securities, Inc. H&R Block Financial Advisors Corp.
Brookstone Securities EDI Financial, Inc. H. Beck, Inc. John James Investments, Inc.
Bueter & Company, Inc. Ensemble Financial Services Hantz Financial Services, Inc. Kalos Capital, Inc.
Cadaret, Grant & Company Equable Securities Corp. Harbour Investment, Inc. KCD Financial
Calton & Associates, Inc. Equitas America Harger & Company Key Investments
Cambridge Investment Research Equity Services, Inc. Harold Dance Investments KMS Financial
Cantella & Company ESI Financial Koehler Financial, LLC
Kovack Securities, Inc.
Labrunerie Financial, Inc.
Landolt Securities, Inc.
C-1
[Enlarge/Download Table]
Lasalle St Securities LLC O.N. Equity Sales Company Royal Alliance Associates, Inc. Triune Capital Advisors
Legend Equities Corp. OneAmerica Securities Sammons Securities Company, Inc. Trustmont Financial Group
Leigh Baldwin & Company, LLC Oppenheimer & Company Schlitt Investor Services, Inc. UBS Financial Services, Inc.
Lesko Securities, Inc. P.T. Bloyd & Associates Scott & Stringfellow, Inc. UnionBanc Investment Services
Liberty Partners Financial Pacific West Securian Financial Services LLC
Life Investors Financial Packerland Brokerage Services Securities America, Inc. United Equity Securities
Lincoln Financial Securities Park Avenue Securities Securities Service Network United Planners Financial
Corp. Paulson Investment Company Sicor Securities, Inc. USA Advanced Planners, Inc.
LPL Financial Corporation Peak Securities Sigma Financial Corp. USA Financial Securities Corp.
Madison Ave Securities Pension Planners Securities Signator Investors, Inc. UVEST Corp.
Main Street Securities Peoples Securities SII Investments, Inc. Valmark Securities, Inc.
Medallion Investment Services Planmember Securities Sorrento Pacific Vanderbilt Securities LLC
Inc. Prime Capital Services Inc. South West Securities Financial VSR Financial Services, Inc.
Merrimac Corporate Securities Prime Financial Services Services, Inc. Wachovia Securities LLC
Inc. Primevest Spectrum Capital Wall Street Financial Group
Metlife Securities Pro Equities, Inc. Spire Securities LLC Walnut Street Securities
Michigan Securities Inc. Professional Asset Management Stanford Group Company WaMu Investments, Inc.
Mid Atlantic Securities Inc. Prospera Financial Services, Sterne Agee Financial Services Waterstone Financial Group
Milkie/Ferguson Investments Inc. Stifel Nicolaus & Company Webster Investments
MML Investors Services Inc. Purshe Kaplan Sterling Strategic Financial Alliance Wedbush Morgan Securities
Money Concepts Capital Corp. Qa3 Financial Corp. Summit Alliance Securities LLC Western Equity Group
Moors & Cabot Inc. Questar Capital Corp. Summit Brokerage Services, Inc. Western International
Morgan Keegan & Company R.L. Harger & Associates Inc. Summit Equities Inc. Securities, Inc.
Morgan Peabody, Inc. Raymond James & Associates, Sunset Financial Services, Inc. Wilmington Brokerage Services
Multi-Financial Securities Inc. Syndicated Capital Inc. Woodbury Financial Services,
Corp. RBC Capital Markets Corp. Synergy Investment Group Inc.
Mutual Service Corp. RC Dunwoody & Associates Inc. TFS Securities Inc. Workman Securities Corp.
National Planning Corporation Regal Securities Inc. The Leaders Group World Equity Group, Inc.
National Securities Corp. Resource Horizons Group Thomas McDonald Partners World Financial Group
New England Securities Riderwood Group Thrivent Investment Management World Group Securities, Inc.
Newbridge Securities Corp. River Stone Wealth Management Tower Square Securities, Inc. WRP Investments, Inc.
Next Financial Group, Inc. RNR Securities LLC Transamerica Financial Wunderlich Securities
NFP Securities, Inc. Robert W Baird & Company, Inc. Advisors, Inc.
North Atlantic Securities LLC Roche Securities Sales Triad Advisors, Inc.
North Ridge Securities Corp.
NYLife Securities LLC
C-2
APPENDIX D
GMWB PROSPECTUS EXAMPLES
Unless otherwise specified, the following examples assume you elected a GMWB
with a 5% benefit when you purchased your Contract, no other optional benefits
were elected, your initial premium payment was $100,000, your GAWA is greater
than your RMD (if applicable) at the time a withdrawal is requested, and all
partial withdrawals requested include any applicable charges, no prior partial
withdrawals have been made, and the bonus percentage (if applicable) is 7%. The
examples also assume that the GMWB and any For Life Guarantee have not been
terminated as described in the Access to Your Money section of this prospectus.
If you elected a GMWB other than a GMWB with a 5% benefit, the examples will
still apply, given that you replace the 5% in each of the GAWA calculations with
the appropriate GAWA%. If you elected a GMWB with a bonus percentage other than
7%, the examples will still apply if you replace the 7% in each of the bonus
calculations with the appropriate bonus percentage.
Example 1: At election, your GWB is set and your GAWA is determined based on
that value.
o Example 1a: If the GMWB is elected at issue:
o Your initial GWB is $100,000, which is your initial Premium
payment.
o Your GAWA is $5,000, which is 5% of your initial GWB
($100,000*0.05 = $5,000).
o Example 1b: If the GMWB is elected after issue when the Contract
Value is $105,000:
o Your initial GWB is $105,000, which is your Contract Value on
the effective date of the endorsement.
o Your GAWA is $5,250, which is 5% of your initial GWB
($105,000*0.05 = $5,250).
o Example 1c: If the GMWB is elected after issue or you convert to
another GMWB, if permitted, when the Contract Value is $110,000 and
your Contract includes a Contract Enhancement with a total Recapture
Charge of $5,000 at the time the GMWB is elected or converted:
o Your initial GWB in your new GMWB is $105,000, which is your
Contract Value ($110,000) less the Recapture Charge ($5,000)
on the effective date of the endorsement. If you converted
your GMWB when the GWB for your former GMWB was $120,000 and
the Contract Value less the Recapture Charge declined to
$105,000 prior to the conversion date, the conversion to the
new GMWB would result in a $15,000 reduction in the GWB.
o Your GAWA is $5,250, which is 5% of your initial GWB
($105,000*0.05 = $5,250).
o Notes:
o If your endorsement contains a varying benefit percentage:
- Your GAWA% and GAWA are not determined until the earlier
of the time of your first withdrawal, the date that your
Contract Value reduces to zero, the date that the GMWB
is continued by a spousal Beneficiary who is not a
Covered Life, or upon election of a GMWB Income Option.
- If your endorsement allows for re-determination of the
GAWA%, your initial Benefit Determination Baseline (BDB)
is set equal to your initial Premium payment if the
endorsement is elected at issue or your Contract Value
less any applicable Recapture Charge if the endorsement
is elected after issuance of the Contract.
o If your endorsement includes a Guaranteed Withdrawal Balance
Bonus provision, your bonus base is set equal to your GWB at
the time of election.
o If your endorsement includes a Guaranteed Withdrawal Balance
Adjustment provision, your initial GWB adjustment is set equal
to 200% times your initial GWB.
o If your endorsement includes a GMWB Death Benefit provision,
your initial GMWB death benefit is set equal to your initial
GWB.
Example 2: If your endorsement contains a varying benefit percentage, your GAWA%
is determined on the earlier of the time of your first withdrawal, the date that
your Contract Value reduces to zero, the date that the GMWB is continued by a
spousal Beneficiary who is not a Covered Life, or upon election of the Life
Income of a GMWB Income Option. Your GAWA% is set based upon your attained age
at that time. Your initial GAWA is determined based on this GAWA% and the GWB at
that time.
o If, at the time the GAWA% is determined, your GAWA% is 5% based on
your attained age and your GWB is $100,000, your initial GAWA is
$5,000, which is your GAWA% multiplied by your GWB at that time
($100,000 * 0.05 = $5,000).
o If your endorsement allows for re-determination of the GAWA%, your
GAWA% will be re-determined based on your attained age if your
Contract Value (or highest quarterly Contract Value, as applicable)
at the time of a step-up is greater than the BDB.
D-1
Example 3: Upon payment of a subsequent Premium, your GWB and GAWA are
re-determined. Your GWB is subject to a maximum of $5,000,000.
o Example 3a: If you make an additional Premium payment of $50,000 and
your GWB is $100,000 at the time of payment:
o Your new GWB is $150,000, which is your GWB prior to the
additional Premium payment ($100,000) plus your additional
Premium payment ($50,000).
o Your GAWA is $7,500, which is your GAWA prior to the
additional Premium payment ($5,000) plus 5% of your additional
Premium payment ($50,000*0.05 = $2,500).
o Example 3b: If you make an additional Premium payment of $100,000
and your GWB is $4,950,000 and your GAWA is $247,500 at the time of
payment:
o Your new GWB is $5,000,000, which is the maximum, since your
GWB prior to the additional Premium payment ($4,950,000) plus
your additional Premium payment ($100,000) exceeds the maximum
of $5,000,000.
o Your GAWA is $250,000, which is your GAWA prior to the
additional Premium payment ($247,500) plus 5% of the allowable
$50,000 increase in your GWB (($5,000,000 - $4,950,000)*0.05 =
$2,500).
o Notes:
o If your endorsement contains a varying benefit percentage:
- Your GAWA is recalculated upon payment of an additional
Premium (as described above) only if such payment occurs
after your GAWA% has been determined.
- If your endorsement allows for re-determination of the
GAWA%, your BDB is increased by the Premium payment.
o If your endorsement includes a Guaranteed Withdrawal Balance
Bonus provision, your bonus base is increased by the Premium
payment, subject to a maximum of $5,000,000.
o If your endorsement includes a Guaranteed Withdrawal Balance
Adjustment provision:
- If the Premium payment occurs prior to the first
Contract Anniversary following the effective date of the
endorsement, your GWB adjustment is increased by the
Premium payment times 200%, subject to a maximum of
$5,000,000. For example, if, as in Example 3a, you make
an additional Premium payment of $50,000 prior to your
first Contract Anniversary following the effective date
of the endorsement, and your GWB adjustment value before
the additional Premium payment is $200,000, then the GWB
adjustment is increased by 200% of the additional
premium payment. The resulting GWB adjustment is
$200,000 + $100,000 = $300,000.
- If the Premium payment occurs on or after the first
Contract Anniversary following the effective date of the
endorsement, your GWB adjustment is increased by the
Premium payment, subject to a maximum of $5,000,000. For
example, if you make an additional Premium payment of
$50,000 after your first Contract Anniversary following
the effective date of the endorsement, and your GWB
adjustment value before the additional Premium payment
is $200,000, then the GWB adjustment is increased by
100% of the additional premium payment. The resulting
GWB adjustment is $200,000 + $50,000 = $250,000.
o If your endorsement includes a GMWB Death Benefit provision,
your GMWB death benefit is increased by the Premium payment,
subject to a maximum of $5,000,000.
Example 4: Upon withdrawal of the guaranteed amount (which is your GAWA for
endorsements for non-qualified and qualified contracts that do not permit
withdrawals in excess of the GAWA or which is the greater of your GAWA or your
RMD for those GMWBs related to qualified contracts that permit withdrawals in
excess of the GAWA to equal your RMD), your GWB and GAWA are re-determined.
o Example 4a: If you withdraw an amount equal to your GAWA ($5,000)
when your GWB is $100,000:
o Your new GWB is $95,000, which is your GWB prior to the
withdrawal ($100,000) less the amount of the withdrawal
($5,000).
o Your GAWA for the next year remains $5,000, since you did not
withdraw an amount that exceeds your GAWA.
o If you continued to take annual withdrawals equal to your
GAWA, it would take an additional 19 years to deplete your GWB
($95,000 / $5,000 per year = 19 years), provided that there
are no further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount of the
withdrawal) and that the withdrawals are taken prior to the
Latest Income Date. However, if you have elected a For Life
GMWB and the For Life Guarantee is in effect, withdrawals
equal to your GAWA could continue for the rest of your life
(or in the case of Joint Owners, until the first death of the
Joint Owners or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 19 years, provided that the withdrawals
are taken prior to the Latest Income Date.
o Example 4b: If you withdraw an amount equal to your RMD ($7,500),
which is greater than your GAWA ($5,000) when your GWB is $100,000
and the RMD provision is in effect for your endorsement:
o Your new GWB is $92,500, which is your GWB prior to the
withdrawal ($100,000) less the amount of the withdrawal
($7,500).
o Your GAWA for the next year remains $5,000, since your
withdrawal did not exceed the greater of your GAWA ($5,000) or
your RMD ($7,500).
o If you continued to take annual withdrawals equal to your
GAWA, it would take an additional 19 years to deplete your GWB
($92,500 / $5,000 per year = 19 years), provided that there
are no further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount of the
withdrawal) and that the withdrawals are taken
D-2
prior to the Latest Income Date. However, if you have elected
a For Life GMWB and the For Life Guarantee is in effect,
withdrawals equal to your GAWA could continue for the rest of
your life (or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 19 years, provided that the withdrawals
are taken prior to the Latest Income Date.
o Notes:
o If your endorsement allows for re-determination of the GAWA%,
your BDB remains unchanged since the BDB is not adjusted for
partial withdrawals.
o If your endorsement includes a Guaranteed Withdrawal Balance
Bonus provision, your bonus base remains unchanged since the
withdrawal did not exceed the guaranteed amount; however, no
bonus will be applied to your GWB at the end of the Contract
Year in which the withdrawal is taken.
o If your endorsement includes a Guaranteed Withdrawal Balance
Adjustment provision, your Guaranteed Withdrawal Balance
Adjustment provision is terminated since a withdrawal is
taken.
o If your endorsement includes a GMWB Death Benefit provision,
your GMWB death benefit may be reduced.
o If your endorsement does not include a For Life Guarantee or
if the For Life Guarantee is not in effect, your GAWA would
not be permitted to exceed your new GWB.
o Withdrawals taken in connection with a GMWB are considered the
same as any other withdrawal for the purpose of determining
all other values under the Contract. In the case where your
minimum death benefit is reduced proportionately for
withdrawals, your death benefit may be reduced by more than
the amount of the withdrawal.
Example 5: Upon withdrawal of an amount that exceeds your guaranteed amount (as
defined in Example 4), your GWB and GAWA are re-determined.
o Example 5a: If you withdraw an amount ($10,000) that exceeds your
GAWA ($5,000) when your Contract Value is $130,000 and your GWB is
$100,000:
o Your GWB is recalculated based on the type of endorsement you
have elected and the effective date of the endorsement.
- If your endorsement contains an annual Step-Up provision
and is effective on or after 12/03/2007, your new GWB is
$91,200, which is your GWB reduced dollar for dollar for
your GAWA, then reduced in the same proportion that the
Contract Value is reduced for the portion of the
withdrawal that is in excess of the GAWA [($100,000 -
$5,000)*(1 - ($10,000 - $5,000) / ($130,000 - $5,000)) =
$91,200].
- Otherwise, your new GWB is $90,000, which is the lesser
of 1) your GWB prior to the withdrawal less the amount
of the withdrawal ($100,000 - $10,000 = $90,000) or 2)
your Contract Value prior to the withdrawal less the
amount of the withdrawal ($130,000 - $10,000 =
$120,000).
o Your GAWA is recalculated based on the type of endorsement you
have elected and the effective date of the endorsement. In
addition, if you have elected a For Life GMWB, your For Life
Guarantee may be impacted depending on the effective date of
the endorsement.
- If your endorsement contains an annual Step-Up provision
and is effective on or after 12/03/2007, your GAWA is
recalculated to equal $4,800, which is your current GAWA
reduced in the same proportion that the Contract Value
is reduced for the portion of the withdrawal that is in
excess of the GAWA [$5,000 * (1 - ($10,000 - $5,000) /
($130,000 - $5,000)) = $4,800]. If you continued to take
annual withdrawals equal to your GAWA, it would take an
additional 19 years to deplete your GWB ($91,200 /
$4,800 per year = 19 years), provided that there are no
further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken
prior to the Latest Income Date. However, if your For
Life Guarantee is in effect, withdrawals equal to your
GAWA could continue for the rest of your life (or in the
case of Joint Owners, until the first death of the Joint
Owners or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 19 years, provided that the
withdrawals are taken prior to the Latest Income Date.
- Otherwise, if your endorsement is a For Life GMWB and is
effective prior to 05/01/2006 or if your endorsement is
not a For Life GMWB, your GAWA for the next year remains
$5,000, since it is recalculated to equal the lesser of
1) your GAWA prior to the withdrawal ($5,000) or 2) 5%
of your Contract Value after the withdrawal
($120,000*0.05 = $6,000). If you continued to take
annual withdrawals equal to your GAWA, it would take an
additional 18 years to deplete your GWB ($90,000 /
$5,000 per year = 18 years), provided that there are no
further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken
prior to the Latest Income Date. In addition, if you
have elected a For Life GMWB, your For Life Guarantee
becomes null and void since the amount of the withdrawal
exceeds your GAWA.
- Otherwise, your GAWA is recalculated to equal $4,500,
which is 5% of your new GWB ($90,000*0.05 = $4,500). If
you continued to take annual withdrawals equal to your
GAWA, it would take an additional 20 years to deplete
your GWB ($90,000 / $4,500 per year = 20 years),
provided that there are no further adjustments made to
your GWB or your GAWA (besides the annual reduction of
your GWB by the amount of the withdrawal) and that the
withdrawals are taken prior to the Latest Income Date.
However, if your For Life Guarantee is in effect,
withdrawals equal to your GAWA could continue for the
rest of your life (or in the case of Joint Owners, until
the
D-3
first death of the Joint Owners or until the death of the last
surviving Covered Life if your endorsement is a For Life GMWB
with Joint Option), even beyond 20 years, provided that the
withdrawals are taken prior to the Latest Income Date.
o Example 5b: If you withdraw an amount ($10,000) that exceeds your
GAWA ($5,000) when your Contract Value is $105,000 and your GWB is
$100,000:
o Your GWB is recalculated based on the type of endorsement you
have elected and the effective date of the endorsement.
- If your endorsement contains an annual Step-Up provision
and is effective on or after 12/03/2007, your new GWB is
$90,250, which is your GWB reduced dollar for dollar for
your GAWA, then reduced in the same proportion that the
Contract Value is reduced for the portion of the
withdrawal that is in excess of the GAWA [($100,000 -
$5,000)*(1 - ($10,000 - $5,000) / ($105,000 - $5,000)) =
$90,250].
- Otherwise, your-new GWB is $90,000, which is the lesser
of 1) your GWB prior to the withdrawal less the amount
of the withdrawal ($100,000 - $10,000 = $90,000) or 2)
your Contract Value prior to the withdrawal less the
amount of the withdrawal ($105,000 - $10,000 = $95,000).
o Your GAWA is recalculated based on the type of endorsement you
have elected and/or the effective date of the endorsement. In
addition, if you have elected a For Life GMWB, your For Life
Guarantee may be impacted depending on the effective date of
the endorsement.
- If your endorsement contains an annual Step-Up provision
and is effective on or after 12/03/2007, your GAWA is
recalculated to equal $4,750, which is your current GAWA
reduced in the same proportion that the Contract Value
is reduced for the portion of the withdrawal that is in
excess of the GAWA [$5,000 * (1 - ($10,000 -
$5,000)/($105,000 - $5,000)) = $4,750]. If you continued
to take annual withdrawals equal to your GAWA, it would
take an additional 19 years to deplete your GWB ($90,250
/ $4,750 per year = 19 years), provided that there are
no further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken
prior to the Latest Income Date. However, if your For
Life Guarantee is in effect, withdrawals equal to your
GAWA could continue for the rest of your life (or in the
case of Joint Owners, until the first death of the Joint
Owners or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 19 years, provided that the
withdrawals are taken prior to the Latest Income Date.
- Otherwise, if your endorsement is a For Life GMWB and is
effective prior to 05/01/2006 or if your endorsement is
not a For Life GMWB, your GAWA for the next year is
recalculated to equal $4,750, which is the lesser of 1)
your GAWA prior to the withdrawal ($5,000) or 2) 5% of
your Contract Value after the withdrawal ($95,000*0.05 =
$4,750). If you continued to take annual withdrawals
equal to your GAWA, it would take an additional 19 years
to deplete your GWB ($90,000 / $4,750 per year = 19
years), provided that there are no further adjustments
made to your GWB or your GAWA (besides the annual
reduction of your GWB by the amount of the withdrawal)
and that the withdrawals are taken prior to the Latest
Income Date, and the amount of your final withdrawal
would be less than your GAWA (and equal to your
remaining GWB). In addition, if you have elected a For
Life GMWB, your For Life Guarantee becomes null and void
since the amount of the withdrawal exceeds your GAWA.
- Otherwise, your GAWA is recalculated to equal $4,500,
which is 5% of your new GWB ($90,000*0.05 = $4,500). If
you continued to take annual withdrawals equal to your
GAWA, it would take an additional 20 years to deplete
your GWB ($90,000 / $4,500 per year = 20 years),
provided that there are no further adjustments made to
your GWB or your GAWA (besides the annual reduction of
your GWB by the amount of the withdrawal) and that the
withdrawals are taken prior to the Latest Income Date.
However, if your For Life Guarantee is in effect,
withdrawals equal to your GAWA could continue for the
rest of your life (or in the case of Joint Owners, until
the first death of the Joint Owners or until the death
of the last surviving Covered Life if your endorsement
is a For Life GMWB with Joint Option), even beyond 20
years, provided that the withdrawals are taken prior to
the Latest Income Date.
o Example 5c: If you withdraw an amount ($10,000) that exceeds your
GAWA ($5,000) when your Contract Value is $55,000 and your GWB is
$100,000:
o Your GWB is recalculated based on the type of endorsement you
have elected and the effective date of the endorsement.
- If your endorsement contains an annual Step-Up provision
and is effective on or after 12/03/2007, your new GWB is
$85,500, which is your GWB reduced dollar for dollar for
your GAWA, then reduced in the same proportion that the
Contract Value is reduced for the portion of the
withdrawal that is in excess of the GAWA [($100,000 -
$5,000) * (1 - ($10,000 - $5,000) / ($55,000 - $5,000))
= $85,500].
- Otherwise, your new GWB is $45,000, which is the lesser
of 1) your GWB prior to the withdrawal less the amount
of the withdrawal ($100,000 - $10,000 = $90,000) or 2)
your Contract Value prior to the withdrawal less the
amount of the withdrawal ($55,000 - $10,000 = $45,000).
o Your GAWA is recalculated based on the type of endorsement you
have elected and/or the effective date of the endorsement. In
addition, if you have elected a For Life GMWB, your For Life
Guarantee may be impacted depending on the effective date of
the endorsement.
- If your endorsement contains an annual Step-Up provision
and is effective on or after 12/03/2007, your GAWA is
recalculated to equal $4,500, which is your current GAWA
reduced in the same proportion that the Contract Value
D-4
is reduced for the portion of the withdrawal that is in
excess of the GAWA [$5,000*(1-($10,000-$5,000)/($55,000
- $5,000))=$4,500]. If you continued to take annual
withdrawals equal to your GAWA, it would take an
additional 19 years to deplete your GWB ($85,500 /
$4,500 per year = 19 years), provided that there are no
further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken
prior to the Latest Income Date. However, if your For
Life Guarantee is in effect, withdrawals equal to your
GAWA could continue for the rest of your life (or in the
case of Joint Owners, until the first death of the Joint
Owners or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 19 years, provided that the
withdrawals are taken prior to the Latest Income Date.
- Otherwise, if your endorsement is a For Life GMWB and is
effective prior to 05/01/2006 or if your endorsement is
not a For Life GMWB, your GAWA for the next year is
recalculated to equal $2,250, which is the lesser of 1)
your GAWA prior to the withdrawal ($5,000) or 2) 5% of
your Contract Value after the withdrawal ($45,000*0.05 =
$2,250). If you continued to take annual withdrawals
equal to your GAWA, it would take an additional 20 years
to deplete your GWB ($45,000 / $2,250 per year = 20
years), provided that there are no further adjustments
made to your GWB or your GAWA (besides the annual
reduction of your GWB by the amount of the withdrawal)
and that the withdrawals are taken prior to the Latest
Income Date. In addition, if you have elected a For Life
GMWB, your For Life Guarantee becomes null and void
since the amount of the withdrawal exceeds your GAWA.
- Otherwise, your GAWA is recalculated to equal $2,250,
which is 5% of your new GWB ($45,000*0.05 = $2,250). If
you continued to take annual withdrawals equal to your
GAWA, it would take an additional 20 years to deplete
your GWB ($45,000 / $2,250 per year = 20 years),
provided that there are no further adjustments made to
your GWB or your GAWA (besides the annual reduction of
your GWB by the amount of the withdrawal) and that the
withdrawals are taken prior to the Latest Income Date.
However, if your For Life Guarantee is in effect,
withdrawals equal to your GAWA could continue for the
rest of your life (or in the case of Joint Owners, until
the first death of the Joint Owners or until the death
of the last surviving Covered Life if your endorsement
is a For Life GMWB with Joint Option), even beyond 20
years, provided that the withdrawals are taken prior to
the Latest Income Date.
o Notes:
o If your endorsement contains a varying benefit percentage and
allows for re-determination of your GAWA%, your BDB remains
unchanged since the BDB is not adjusted for partial
withdrawals.
o If your endorsement includes a Guaranteed Withdrawal Balance
Bonus provision, your bonus base is recalculated to equal the
lesser of 1) your bonus base prior to the withdrawal or 2)
your GWB following the withdrawal. In addition, no bonus will
be applied to your GWB at the end of the Contract Year in
which the withdrawal is taken.
o If your endorsement includes a Guaranteed Withdrawal Balance
Adjustment provision, your Guaranteed Withdrawal Balance
Adjustment provision is terminated since a withdrawal is
taken.
o If your endorsement includes a GMWB Death Benefit provision,
your GMWB death benefit will be reduced in the same proportion
that the Contract Value is reduced for the amount of the
withdrawal in excess of the GAWA.
o If your endorsement does not include a For Life Guarantee or
if the For Life Guarantee is not in effect, your GAWA would
not be permitted to exceed your remaining GWB.
o Withdrawals taken in connection with a GMWB are considered the
same as any other withdrawal for the purpose of determining
all other values under the Contract. In the case where your
minimum death benefit is reduced proportionately for
withdrawals, your death benefit may be reduced by more than
the amount of the withdrawal.
Example 6: Upon step-up, your GWB and GAWA are re-determined. (This example only
applies if your endorsement contains a Step-Up provision.)
o Example 6a: If at the time of step-up your Contract Value (or
highest quarterly Contract Value, as applicable) is $200,000, your
GWB is $90,000, and your GAWA is $5,000:
o Your new GWB is recalculated to equal $200,000, which is equal
to your Contract Value (or highest quarterly Contract Value,
as applicable).
o If your GAWA% is not eligible for re-determination, your GAWA
for the next year is recalculated to equal $10,000, which is
the greater of 1) your GAWA prior to the step-up ($5,000) or
2) 5% of your new GWB ($200,000*0.05 = $10,000).
- After step-up, if you continued to take annual
withdrawals equal to your GAWA, it would take an
additional 20 years to deplete your GWB ($200,000 /
$10,000 per year = 20 years), provided that there are no
further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken
prior to the Latest Income Date. However, if you have
elected a For Life GMWB and the For Life Guarantee is in
effect, withdrawals equal to your GAWA could continue
for the rest of your life (or in the case of Joint
Owners, until the first death of the Joint Owners or
until the death of the last surviving Covered Life if
your endorsement is a For Life GMWB with Joint Option),
even beyond 20 years, provided that the withdrawals are
taken prior to the Latest Income Date.
D-5
o However, if your GAWA% is eligible for re-determination and
the step-up occurs after the initial determination of your
GAWA%, the GAWA% will be re-determined based on your attained
age (or the youngest Covered Life's attained age if your
endorsement is a For Life GMWB with Joint Option) if your
Contract Value (or highest quarterly Contract Value, as
applicable) at the time of the step-up is greater than your
BDB.
- If, in the example above, your BDB is $100,000 and the
GAWA% at the applicable attained age is 6%:
o Your GAWA% is set to 6%, since your Contract Value
(or highest quarterly Contract Value, as
applicable)($200,000) is greater than your BDB
($100,000).
o Your GAWA is equal to $12,000, which is your new
GWB multiplied by your new GAWA% ($200,000 * 0.06
= $12,000).
o Your BDB is recalculated to equal $200,000, which
is the greater of 1) your BDB prior to the step-up
($100,000) or 2) your Contract Value (or highest
quarterly Contract Value, as applicable) at the
time of step-up ($200,000).
o If your endorsement includes a Guaranteed Withdrawal Balance
Bonus provision your bonus base is $100,000 just prior to the
step-up, your bonus base is recalculated to equal $200,000,
which is the greater of 1) your bonus base prior to the
step-up ($100,000) or 2) your GWB following the step-up
($200,000).
- If your endorsement allows for the Bonus Period to
re-start and you have not passed your Contract
Anniversary immediately following your 80th birthday (or
the youngest Covered Life's 80th birthday if your
endorsement is a For Life GMWB with Joint Option), your
Bonus Period will re-start since your bonus base has
been increased due to the step-up.
o Example 6b: If at the time of step-up your Contract Value (or
highest quarterly Contract Value, as applicable) is $90,000, your
GWB is $80,000, and your GAWA is $5,000:
o Your new GWB is recalculated to equal $90,000, which is equal
to your Contract Value (or highest quarterly Contract Value,
as applicable).
o Your GAWA for the next year remains $5,000, which is the
greater of 1) your GAWA prior to the step-up ($5,000) or 2) 5%
of your new GWB ($90,000*0.05 = $4,500).
- After step-up, if you continued to take annual
withdrawals equal to your GAWA, it would take an
additional 18 years to deplete your GWB ($90,000 /
$5,000 per year = 18 years), provided that there are no
further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken
prior to the Latest Income Date. However, if you have
elected a For Life GMWB and the For Life Guarantee is in
effect, withdrawals equal to your GAWA could continue
for the rest of your life (or in the case of Joint
Owners, until the first death of the Joint Owners or
until the death of the last surviving Covered Life if
your endorsement is a For Life GMWB with Joint Option),
even beyond 18 years, provided that the withdrawals are
taken prior to the Latest Income Date.
o If your GAWA% is eligible for re-determination and the step-up
occurs after the initial determination of your GAWA%, the
GAWA% will be re-determined based on your attained age (or the
youngest Covered Life's attained age if your endorsement is a
For Life GMWB with Joint Option) if your Contract Value (or
highest quarterly Contract Value, as applicable) is greater
than your BDB. However, in this case, it is assumed that your
initial Premium is $100,000. Your BDB would not be less than
$100,000, implying that this would not be an opportunity for a
re-determination of the GAWA%. In addition, if your BDB is
$100,000 prior to the step-up, your BDB remains $100,000,
which is the greater of 1) your BDB prior to the step-up
($100,000) or 2) your Contract Value (or highest quarterly
Contract Value, as applicable) at the time of step-up
($90,000).
If your endorsement includes a Guaranteed Withdrawal Balance
Bonus provision and your bonus base is $100,000 just
prior to the step-up, your bonus base remains $100,000,
which is the greater of 1) your bonus base prior to the
step-up ($100,000) or 2) your GWB following the step-up
($90,000).- Even if your endorsement allows for the
Bonus Period to re-start, your Bonus Period will not
re-start since your bonus base has not been increased
due to the step-up.
o Notes:
o Your endorsement may contain a provision allowing the Company
to increase the GMWB charge upon step-up. If the charge does
increase, a separate calculation would be recommended to
establish if the step-up is beneficial.
o If your endorsement contains a provision for automatic
step-ups, your GWB will only step up to the Contract Value (or
highest quarterly Contract Value, as applicable) if the
Contract Value (or highest quarterly Contract Value, as
applicable) is greater than your GWB at the time of the
automatic step-up.
o If your endorsement contains a Guaranteed Withdrawal Balance
Bonus provision and a provision for automatic step-ups, your
bonus base will be re-determined only if your GWB is increased
upon step-up to a value above your bonus base just prior to
the step-up.
o If your endorsement contains a Guaranteed Withdrawal Balance
Adjustment provision, your GWB adjustment remains unchanged
since step-ups do not impact the GWB adjustment.
o If your endorsement contains a GMWB Death Benefit provision,
your GMWB death benefit remains unchanged since step-ups do
not impact the GMWB death benefit.
D-6
o If your endorsement contains a varying benefit percentage,
your GAWA is recalculated upon step-up (as described above)
only if the step-up occurs after your GAWA% has been
determined.
o If your endorsement bases step-ups on the highest quarterly
Contract Value, the highest quarterly Contract Value is equal
to the greatest of the four most recent quarterly adjusted
Contract Values. The quarterly adjusted Contract Values are
initialized on each Contract Quarterly Anniversary and are
adjusted for any premiums and/or withdrawals subsequent to the
initialization in the same manner as the GWB.
Example 7: Impact of the order of transactions. (This example only applies if
your endorsement contains a Step-Up provision.)
o Example 7a: If prior to any transactions your Contract Value (or
highest quarterly Contract Value, as applicable) is $200,000, your
GAWA is $5,000, your GAWA% is not eligible for re-determination upon
step-up, your GWB is $100,000 and you wish to step up your GWB (or
your GWB is due to step up automatically) and you also wish to take
a withdrawal of an amount equal to $5,000:
o If you request the withdrawal the day after the step-up, upon
step-up, your GWB is set equal to $200,000, which is your
Contract Value (or highest quarterly Contract Value, as
applicable). At that time, your GAWA is recalculated and is
equal to $10,000, which is the greater of 1) your GAWA prior
to the step-up ($5,000) or 2) 5% of your new GWB
($200,000*0.05 = $10,000). On the day following the step-up
and after the withdrawal of $5,000, your new GWB is $195,000,
which is your GWB less the amount of the withdrawal ($200,000
- $5,000 = $195,000) and your GAWA will remain at $10,000
since the amount of the withdrawal does not exceed your GAWA.
If you continued to take annual withdrawals equal to your
GAWA, it would take an additional 20 years to deplete your GWB
($195,000 / $10,000 per year = 20 years), provided that there
are no further adjustments made to your GWB or your GAWA
(besides the annual reduction of your GWB by the amount of the
withdrawal) and that the withdrawals are taken prior to the
Latest Income Date. However, if you have elected a For Life
GMWB and the For Life Guarantee is in effect, withdrawals
equal to your GAWA could continue for the rest of your life
(or in the case of Joint Owners, until the first death of the
Joint Owners or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 20 years, provided that the withdrawals
are taken prior to the Latest Income Date.
- If your endorsement contains a Guaranteed Withdrawal
Balance Bonus provision and your bonus base is $100,000
just prior to the step-up, at the time of step-up, your
bonus base is recalculated and is equal to $200,000,
which is the greater of 1) your bonus base prior to the
step-up ($100,000) or 2) your GWB following the step-up
($200,000). Your bonus base is not adjusted upon
withdrawal since the amount of the withdrawal does not
exceed your GAWA.
- If your endorsement allows for the Bonus Period to
re-start and you have not passed the Contract
Anniversary immediately following your 80th
birthday (or the youngest Covered Life's 80th
birthday if your endorsement is a For Life GMWB
with Joint Option), your Bonus Period will
re-start since your bonus base has been increased
due to the step-up.
- If your endorsement allows for re-determination of the
GAWA% and your BDB is $100,000 just prior to the
step-up, then at the time of step-up, your BDB is
recalculated and is equal to $200,000, which is the
greater of 1) your BDB prior to the step-up ($100,000)
or 2) your Contract Value (or highest quarterly Contract
Value, as applicable) at the time of step-up ($200,000).
Your BDB is not adjusted upon withdrawal since the BDB
is not reduced for partial withdrawals.
o If you request the withdrawal prior to the step-up,
immediately following the withdrawal transaction, your new GWB
is $95,000, which is your GWB less the amount of the
withdrawal ($100,000 - $5,000 = $95,000) and your Contract
Value becomes $195,000, which is your Contract Value prior to
the withdrawal less the amount of the withdrawal ($200,000 -
$5,000 = $195,000). Upon step-up following the withdrawal,
your GWB is set equal to $195,000, which is your Contract
Value. At that time, your GAWA is recalculated and is equal to
$9,750, which is the greater of 1) your GAWA prior to the
step-up ($5,000) or 2) 5% of your new GWB ($195,000*0.05 =
$9,750). If you continued to take annual withdrawals equal to
your GAWA, it would take an additional 20 years to deplete
your GWB ($195,000 / $9,750 per year = 20 years), provided
that there are no further adjustments made to your GWB or your
GAWA (besides the annual reduction of your GWB by the amount
of the withdrawal) and that the withdrawals are taken prior to
the Latest Income Date. However, if you have elected a For
Life GMWB and the For Life Guarantee is in effect, withdrawals
equal to your GAWA could continue for the rest of your life
(or in the case of Joint Owners, until the first death of the
Joint Owners or until the death of the last surviving Covered
Life if your endorsement is a For Life GMWB with Joint
Option), even beyond 20 years, provided that the withdrawals
are taken prior to the Latest Income Date.
- If your endorsement contains a Guaranteed Withdrawal
Balance Bonus provision and your bonus base is $100,000
just prior to the withdrawal, then at the time of the
withdrawal, your bonus base is not adjusted since the
amount of the withdrawal does not exceed your GAWA. At
the time of step-up, your bonus base is recalculated and
is equal to $195,000, which is the greater of 1) your
bonus base prior to the step-up ($100,000) or 2) your
GWB following the step-up ($195,000).
- If your endorsement allows for the Bonus Period to
re-start and you have not passed the Contract
Anniversary immediately following your 80th
birthday (or the youngest Covered Life's 80th
birthday if your endorsement is a For Life GMWB
with Joint Option), your Bonus Period will
re-start since your bonus base has been increased
due to the step-up.
D-7
- If your endorsement allows for re-determination of the
GAWA% and your BDB is $100,000 just prior to the
withdrawal, then at the time of the withdrawal, your BDB
is not adjusted since the BDB is not reduced for partial
withdrawals. At the time of step-up, your BDB is
recalculated and is equal to $195,000, which is the
greater of 1) your BDB prior to the step-up ($100,000)
or 2) your Contract Value (or highest quarterly Contract
Value, as applicable) at the time of step-up ($195,000).
o Notes:
o As the example illustrates, when considering a request for a
withdrawal at or near the same time as the election or
automatic application of a step-up, the order of the
transactions may impact your GAWA.
- If the step-up would result in an increase in your GAWA
and the requested withdrawal is less than or equal to
your new GAWA, your GAWA resulting after the two
transactions would be greater if the withdrawal is
requested after the step-up is applied. This is
especially true if your endorsement allows for
re-determination of the GAWA% and the step-up would
result in a re-determination of the GAWA%.
- If your endorsement contains an annual step-up provision
and is effective on or after 12/03/2007, the step-up
would result in an increase in your GAWA, and the
withdrawal requested is greater than your new GAWA, your
GAWA resulting after the two transactions would be
greater if the withdrawal is requested after the step-up
is applied.
- Otherwise, your GAWA resulting from the transactions is
the same regardless of the order of transactions.
o This example would also apply in situations when the
withdrawal exceeded your GAWA but not your permissible RMD.
o Your endorsement may contain a provision allowing the Company
to increase the GMWB charge upon step-up.
o If your endorsement contains a provision for automatic
step-ups, your GWB will only step up to the Contract Value (or
highest quarterly Contract Value, as applicable) if the
Contract Value (or highest quarterly Contract Value, as
applicable) is greater than your GWB at the time of the
automatic step-up.
o If your endorsement contains a Guaranteed Withdrawal Balance
Bonus provision and a provision for automatic step-ups, your
bonus base will be re-determined only if your GWB is increased
upon step-up to a value above your bonus base just prior to
the step-up.
o If your endorsement contains a varying benefit percentage, the
GAWA% is determined at the time of the first withdrawal (if
not previously determined).
- If your endorsement allows for re-determination of the
GAWA%, the GAWA% is re-determined upon step-up if your
Contract Value (or highest quarterly Contract Value, as
applicable) is greater than your BDB.
o If your endorsement contains a Guaranteed Withdrawal Balance
Adjustment provision, your Guaranteed Withdrawal Balance
Adjustment provision is terminated at the time of the
withdrawal.
o If your endorsement contains a GMWB Death Benefit provision,
the GMWB death benefit would not be adjusted for the step-up
since step-ups do not impact the GMWB death benefit, but your
GMWB death benefit may be reduced for the withdrawal.
o If your endorsement bases step-ups on the highest quarterly
Contract Value, the highest quarterly Contract Value is equal
to the greatest of the four most recent quarterly adjusted
Contract Values. The quarterly adjusted Contract Values are
initialized on each Contract Quarterly Anniversary and are
adjusted for any premiums and/or withdrawals subsequent to the
initialization in the same manner as the GWB.
o If your endorsement does not include a For Life Guarantee or
if the For Life Guarantee is not in effect, your GAWA would
not be permitted to exceed your remaining GWB.
o Withdrawals taken in connection with a GMWB are considered the
same as any other withdrawal for the purpose of determining
all other values under the Contract. In the case where your
minimum death benefit is reduced proportionately for
withdrawals, your death benefit may be reduced by more than
the amount of the withdrawal.
Example 8: Upon application of the Guaranteed Withdrawal Balance Bonus, your GWB
and GAWA are re-determined. (This example only applies if your endorsement
contains a Guaranteed Withdrawal Balance Bonus provision.)
o Example 8a: If at the end of a Contract Year in which you have taken
no withdrawals, your GWB is $100,000, your bonus base is $100,000,
and your GAWA is $5,000:
o Your new GWB is recalculated to equal $107,000, which is equal
to your GWB plus 7% of your bonus base ($100,000 +
$100,000*0.07 = $107,000).
o Your GAWA for the next year is recalculated to equal $5,350,
which is the greater of 1) your GAWA prior to the application
of the bonus ($5,000) or 2) 5% of your new GWB ($107,000*0.05
= $5,350).
o After the application of the bonus, if you continued to take
annual withdrawals equal to your GAWA, it would take an
additional 20 years to deplete your GWB ($107,000 / $5,350 per
year = 20 years), provided that there are no further
adjustments made to your GWB or your GAWA (besides the annual
reduction of your GWB by the amount of the withdrawal) and
that the withdrawals are taken prior to the Latest Income
Date. However, if you have elected a For Life GMWB and the For
Life Guarantee is in effect, withdrawals equal to your GAWA
could continue for the rest of your life (or in the case of
Joint Owners, until the first death of the Joint Owners or
until the death of the last surviving Covered Life if your
endorsement is a For Life GMWB with Joint Option), even beyond
20 years, provided that the withdrawals are taken prior to the
Latest Income Date.
D-8
o Example 8b: If at the end of a Contract Year in which you have taken
no withdrawals, your GWB is $90,000, your bonus base is $100,000,
and your GAWA is $5,000:
o Your new GWB is recalculated to equal $97,000, which is equal
to your GWB plus 7% of your bonus base ($90,000 +
$100,000*0.07 = $97,000).
o Your GAWA for the next year remains $5,000, which is the
greater of 1) your GAWA prior to the application of the bonus
($5,000) or 2) 5% of your new GWB ($97,000*0.05 = $4,850).
o After the application of the bonus, if you continued to take
annual withdrawals equal to your GAWA, it would take an
additional 20 years to deplete your GWB ($97,000 / $5,000 per
year = 20 years), provided that there are no further
adjustments made to your GWB or your GAWA (besides the annual
reduction of your GWB by the amount of the withdrawal) and
that the withdrawals are taken prior to the Latest Income
Date. However, if you have elected a For Life GMWB and the For
Life Guarantee is in effect, withdrawals equal to your GAWA
could continue for the rest of your life (or in the case of
Joint Owners, until the first death of the Joint Owners or
until the death of the last surviving Covered Life if your
endorsement is a For Life GMWB with Joint Option), even beyond
20 years, provided that the withdrawals are taken prior to the
Latest Income Date.
o Notes:
o Your bonus base is not recalculated upon the application of
the bonus to your GWB.
o If your endorsement contains a varying benefit percentage,
your GAWA is recalculated upon the application of the bonus
(as described above) only if the application of the bonus
occurs after your GAWA% has been determined.
o If your endorsement allows for re-determination of the GAWA%,
your BDB remains unchanged since the BDB is not impacted by
the application of the bonus.
o If your endorsement includes a Guaranteed Withdrawal Balance
Adjustment provision, your GWB adjustment remains unchanged
since the GWB adjustment is not impacted by the application of
the bonus.
o If your endorsement includes a GMWB Death Benefit provision,
your GMWB death benefit remains unchanged since the GMWB death
benefit is not impacted by the application of the bonus.
o If the For Life Guarantee is not in effect, your GAWA would
not be permitted to exceed your remaining GWB.
Example 9: For Life Guarantee becomes effective after the effective date of the
endorsement. At the time the For Life Guarantee becomes effective, your GAWA is
re-determined. (This example only applies if your endorsement is a For Life GMWB
that contains a For Life Guarantee that becomes effective after the effective
date of the endorsement.)
o Example 9a: If on the reset date, your Contract Value is $30,000,
your GWB is $50,000, and your GAWA is $5,000:
o Your GAWA for the next year is recalculated to equal $2,500,
which is equal to 5% of the current GWB ($50,000*0.05 =
$2,500).
o The For Life Guarantee becomes effective, thus allowing you to
make annual withdrawals equal to your GAWA for the rest of
your life (or in the case of Joint Owners, until the first
death of the Joint Owners or until the death of the last
surviving Covered Life if your endorsement is a For Life GMWB
with Joint Option), provided that the withdrawals are taken
prior to the Latest Income Date. Once the For Life Guarantee
becomes effective, it remains in effect until the endorsement
is terminated, as described in the Access to Your Money
section of this prospectus, or upon continuation of the
Contract by the spouse (unless your endorsement is a For Life
GMWB with Joint Option and the spouse continuing the Contract
is a Covered Life in which case the For Life Guarantee remains
in effect upon continuation of the Contract by the spouse).
o Example 9b: If your Contract Value has fallen to $0 prior to the
reset date, your GWB is $50,000 and your GAWA is $5,000:
o You will continue to receive automatic payments of a total
annual amount that equals your GAWA until your GWB is
depleted. However, your GAWA would not be permitted to exceed
your remaining GWB. Your GAWA is not recalculated since the
Contract Value is $0.
o The For Life Guarantee does not become effective due to the
depletion of the Contract Value prior to the effective date of
the For Life Guarantee.
o Example 9c: If on the reset date, your Contract Value is $50,000,
your GWB is $0, and your GAWA is $5,000:
o Your GAWA for the next year is recalculated to equal $0, which
is equal to 5% of the current GWB ($0*0.05 = $0).
o The For Life Guarantee becomes effective, thus allowing you to
make annual withdrawals equal to your GAWA for the rest of
your life (or in the case of Joint Owners, until the first
death of the Joint Owners or until the death of the last
surviving Covered Life if your endorsement is a For Life GMWB
with Joint Option), provided that the withdrawals are taken
prior to the Latest Income Date. Once the For Life Guarantee
becomes effective, it remains in effect until the endorsement
is terminated, as described in the Access to Your Money
section of this prospectus, or upon continuation of the
Contract by the spouse (unless your endorsement is a For Life
GMWB with Joint Option and the spouse continuing the Contract
is a Covered Life in which case the For Life Guarantee remains
in effect upon continuation of the Contract by the spouse).
o Although your GAWA is $0, upon step-up or subsequent premium
payments, your GWB and your GAWA would increase to values
greater than $0 and since the For Life Guarantee has become
effective, you could withdraw an annual
D-9
amount equal to your GAWA for the rest of your life (or in the
case of Joint Owners, until the first death of the Joint
Owners or until the death of the last surviving Covered Life
if your endorsement is a For Life GMWB with Joint Option),
provided that the withdrawals are taken prior to the Latest
Income Date.
o Notes:
o If your endorsement is effective prior to 12/03/2007, your
reset date is the Contract Anniversary on or immediately
following your 65th birthday (or the youngest Covered Life's
65th birthday if your endorsement is a For Life GMWB with
Joint Option). If your endorsement is effective on or after
12/03/2007 and before 03/31/2008, your reset date is the
Contract Anniversary on or immediately following your 60th
birthday. If your endorsement is effective on or after
03/31/2008 and before 10/06/2008, your reset date is the
Contract Anniversary on or immediately following the date you
attain age 59 1/2. If your endorsement is effective on or
after 10/06/2008 and before 01/12/2009, your reset date is the
Contract Anniversary on or immediately following your 63rd
birthday (or the youngest Covered Life's 62nd birthday if your
endorsement is a For Life GMWB with Joint Option). If your
endorsement is effective on or after 01/12/2009, your reset
date is the Contract Anniversary on or immediately following
the date you attain age 59 1/2 (or the youngest Covered Life's
59 1/2 birthday if your endorsement is a For Life GMWB with
Joint Option).
Example 10: For Life Guarantee on a For Life GMWB with Joint Option. (This
example only applies if your endorsement is a For Life GMWB with Joint Option.)
o If at the time of the death of the Owner (or either Joint Owner) the
Contract Value is $105,000 and your GWB is $100,000:
o If your endorsement has a For Life Guarantee that becomes
effective after the effective date of the endorsement, the
surviving Covered Life may continue the Contract and the For
Life Guarantee will remain in effect or become effective on
the Contract Anniversary on the reset date. Once the For Life
Guarantee becomes effective, the surviving Covered Life will
be able to take annual withdrawals equal to the GAWA for the
rest of his or her life, provided that the withdrawals are
taken prior to the Latest Income Date.
o If your endorsement has a For Life Guarantee that becomes
effective on the effective date of the endorsement, the
surviving Covered Life may continue the Contract and the For
Life Guarantee will remain in effect. The GAWA% and the GAWA
will continue to be determined or re-determined based on the
youngest Covered Life's attained age (or the age he or she
would have attained). The surviving Covered Life will be able
to take annual withdrawals equal to the GAWA for the rest of
his or her life, provided that the withdrawals are taken prior
to the Latest Income Date.
o The surviving spouse who is not a Covered Life may continue
the Contract and the For Life Guarantee is null and void.
However, the surviving spouse will be entitled to make
withdrawals until the GWB is exhausted, provided that the
withdrawals are taken prior to the Latest Income Date.
o Your GWB remains $100,000 and your GAWA remains unchanged at
the time of continuation.
o Notes:
o If your endorsement is effective prior to 12/03/2007 and has a
For Life Guarantee that becomes effective after the effective
date of the endorsement, your reset date is the Contract
Anniversary on or immediately following the youngest Covered
Life's 65th birthday. If your endorsement is effective on or
after 10/06/2008 and before 01/12/2009 and has a For Life
Guarantee that becomes effective after the effective date of
the endorsement, your reset date is the Contract Anniversary
on or immediately following the youngest Covered Life 62nd
birthday. If your endorsement is effective on or after
01/12/2009 and has a For Life Guarantee that becomes effective
after the effective date of the endorsement, your reset date
is the Contract Anniversary on or immediately following the
date the youngest Covered Life attains age 59 1/2.
o If your endorsement contains a Guaranteed Withdrawal Balance
Bonus provision, your bonus base remains unchanged at the time
of continuation.
o If your endorsement contains a varying benefit percentage,
your BDB remains unchanged at the time of continuation.
Example 11: Upon application of the Guaranteed Withdrawal Balance adjustment,
your GWB is re-determined. (This example only applies if your endorsement
contains a Guaranteed Withdrawal Balance Adjustment provision.)
o Example 11a: If on the GWB Adjustment Date, your GWB is $160,000,
your GWB adjustment is $200,000, and you have taken no withdrawals
on or prior to the GWB Adjustment Date:
o Your new GWB is recalculated to equal $200,000, which is the
greater of 1) your GWB prior to the application of the GWB
adjustment ($160,000) or 2) the GWB adjustment ($200,000).
o Example 11b: If on the GWB Adjustment Date, your GWB is $210,000,
your GWB adjustment is $200,000, and you have taken no withdrawals
on or prior to the GWB Adjustment Date:
o Your new GWB is recalculated to equal $210,000, which is the
greater of 1) your GWB prior to the application of the GWB
adjustment ($210,000) or 2) the GWB adjustment ($200,000).
o Notes:
D-10
o The GWB adjustment provision is terminated on the GWB
Adjustment Date after the GWB adjustment is applied (if any).
o Since you have taken no withdrawals, your GAWA% and GAWA have
not yet been determined, thus no adjustment is made to your
GAWA.
o No adjustment is made to your bonus base since the bonus base
is not impacted by the GWB adjustment.
o If your endorsement allows for re-determination of the GAWA%,
no adjustment is made to your BDB since the BDB is not
impacted by the GWB Adjustment.
o If your endorsement includes a GMWB Death Benefit provision,
no adjustment is made to your GMWB death benefit since the
GMWB death benefit is not impacted by the GWB adjustment.
D-11
APPENDIX E
FUTUREGUARD 6 GMIB PROSPECTUS EXAMPLES
The following examples assume that the FutureGuard 6 GMIB was elected when the
Contract was purchased, no other optional benefits were elected and the
Annuitant was age 50 on the Contract's Issue Date. If the Annuitant was age 53
or older on the Contract's Issue Date, the 500% benefit cap would not apply.
Example 1: At issue, all GMIB values are initialized.
If your Contract is issued with a $100,000 initial premium payment (net of any
applicable premium taxes and sales charges):
- The Step-Up Date is equal to the Issue Date.
- The Step-Up Value is equal to $100,000, which is your initial
premium payment.
- Your Roll-Up Component is equal to $100,000, which is the Step-Up
Value.
- Your Greatest Contract Anniversary Value (GCAV) Component is equal
to $100,000, which is your initial premium payment.
- Neither Component is permitted to exceed $500,000, which is 500% of
your initial premium payment. (These examples will refer to this
limit as the "benefit cap".)
- Your GMIB Benefit Base is equal to $100,000, which is the greater of
the Roll-Up Component and the GCAV Component.
- The earliest date that you may elect to exercise the GMIB is on the
10th Contract Anniversary, which is 10 years from the most recent
Step-Up Date.
Example 2: Upon payment of a subsequent Premium, your Roll-Up Component, GCAV
Component, benefit cap and GMIB Benefit Base are re-determined.
If you make an additional premium payment of $50,000 (net of any applicable
premium taxes and sales charges) and your Roll-Up Component is equal to
$180,000, your GCAV Component is equal to $160,000, your benefit cap is equal to
$500,000 and your GMIB Benefit Base is equal to $180,000 at the time of payment:
- The Step-Up Date does not change.
- The Step-Up Value does not change.
- Your Roll-Up Component is equal to $230,000, which is the Roll-Up
Component prior to the premium payment plus the premium payment.
- Your GCAV Component is equal to $210,000, which is the GCAV
Component prior to the premium payment plus the premium payment.
- Your benefit cap is equal to $750,000, which is the benefit cap
prior to the premium payment plus 500% of the premium payment.
- Your GMIB Benefit Base is equal to $230,000, which is the greater of
the Roll-Up Component and the GCAV Component.
- The earliest date that you may elect to exercise the GMIB does not
change.
Example 3: Upon a partial withdrawal, your Roll-Up Component, GCAV Component,
benefit cap and GMIB Benefit Base are re-determined.
If you request a single partial withdrawal of $30,000 (including any applicable
charges and adjustments), no other partial withdrawals are made during the
Contract Year, and your Contract Value is equal to $120,000, your Roll-Up
Component on the previous Contract Anniversary is equal to $125,000, your GCAV
Component is equal to $132,000, your benefit cap is equal to $500,000, and your
GMIB Benefit Base is equal to $132,000 at the time of the withdrawal:
- The Step-Up Date does not change.
- The Step-Up Value does not change.
- Your Roll-Up Component will not be adjusted until the end of the
Contract Year (assuming that the GMIB is not exercised before then),
at which point it will be equal to:
- The Roll-Up Component on the previous Contract Anniversary
accumulated at 6% ($125,000 x 1.06 = $132,500),
- Less the portion of total withdrawals in the Contract Year
that are less than or equal to 6% of the Roll-Up Component on
the previous Contract Anniversary (0.06 x $125,000 = $7,500);
- Multiplied by the percentage reduction in Contract Value
attributable to total withdrawals in the Contract Year in
excess of 6% of the Roll-Up Component on the previous Contract
Anniversary (1 - [$30,000 - $7,500]/[$120,000 - $7,500] =
0.8).
- Your Roll-Up Component is equal to [$132,500 - $7,500] x 0.8 =
$100,000.
E-1
- Your GCAV Component is adjusted at the time of the partial
withdrawal, at which point it will be equal to $99,000, which is the
GCAV Component prior to the partial withdrawal multiplied by the
percentage reduction in the Contract Value attributable to the
withdrawal (1 - $30,000/$120,000 = 0.75).
- Your benefit cap is equal to $470,000, which is the benefit cap
prior to the partial withdrawal less the amount of the partial
withdrawal.
- Your GMIB Benefit Base at the end of the Contract Year is equal to
$100,000, which is the greater of the Roll-Up Component and the GCAV
Component.
- The earliest date that you may elect to exercise the GMIB does not
change.
Example 4: On each Contract Anniversary prior to the Annuitant's 75th birthday,
you may elect to step up your Roll-Up Component to the Contract Value, in which
case the Step-Up Date, Step-Up Value, earliest date that you may elect to
exercise the GMIB, and your Roll-Up Component will be re-determined. In
addition, on each Contract Anniversary prior to the Annuitant's 81st birthday,
your Contract Value is compared to the Contract Values on all previous Contract
Anniversaries, which may re-determine the GCAV Component.
Example 4a: If your Contract Value is equal to $120,000, your benefit cap is
equal to $500,000, the greatest Contract Value on any previous Contract
Anniversary is $100,000, your Roll-Up Component is equal to $106,000, and you
elect to step up your Roll-Up Component to the Contract Value:
- The Step-Up Date is equal to the date of the current Contract
Anniversary.
- The Step-Up Value is equal to $120,000, which is the Contract Value
on the Step-Up Date.
- Your Roll-Up Component is equal to $120,000, which is the Step-Up
Value.
- Your GCAV Component is equal to $120,000, which is the greatest
Contract Value on any Contract Anniversary.
- Your benefit cap does not change because no premium payments were
made and no withdrawals were taken.
- Your GMIB Benefit Base is equal to $120,000, which is the greater of
the Roll-Up Component and the GCAV Component.
- You may not elect to exercise your GMIB for 10 years.
Example 4b: If your Contract Value is equal to $510,000, your benefit cap is
equal to $500,000, the greatest Contract Value on any previous Contract
Anniversary is $460,000, your Roll-Up Component is equal to $450,000, and you
elect to step up your Roll-Up Component to the Contract Value:
- The Step-Up Date is equal to the date of the current Contract
Anniversary.
- The Step-Up Value is equal to $510,000, which is the Contract Value
on the Step-Up Date.
- Your Roll-Up Component is equal to $500,000, which is the lesser of
the Step-Up Value and the benefit cap.
- Your GCAV Component is equal to $500,000, which is the lesser of the
greatest Contract Value on any Contract Anniversary and the benefit
cap.
- Your benefit cap does not change because no premium payments were
made and no withdrawals were taken.
- Your GMIB Benefit Base is equal to $500,000, which is the greater of
the Roll-Up Component and the GCAV Component.
- You may not elect to exercise your GMIB for 10 years.
Example 4c: If your Contract Value is equal to $130,000, your benefit cap is
equal to $500,000, the greatest Contract Value on any previous Contract
Anniversary is $150,000 but your GCAV Component has been reduced by a subsequent
withdrawal to $120,000, your Roll-Up Component is equal to $140,000, and your
GMIB Benefit Base is $140,000:
- The Step-Up Date does not change because the Contract Value is less
than the Roll-Up Component, which means that step up is not
available.
- The Step-Up Value does not change because step up did not occur.
- Your Roll-Up Component does not change because step up did not
occur.
- Your GCAV Component does not change because the Contract Value on
the current Contract Anniversary is not the greatest Contract Value
on any Contract Anniversary.
- Your benefit cap does not change because no premium payments were
made and no withdrawals were taken.
- The GMIB Benefit Base does not change because neither the Roll-Up
Component nor the GCAV Component changed.
- The earliest date that you may elect to exercise the GMIB does not
change because step up did not occur.
Example 5: If your Contract Value falls to zero and your GMIB Benefit Base is
greater than zero, then all withdrawals taken from the Contract will be examined
in order to determine the eligibility of the GMIB Benefit Base for automatic
annuitization.
Example 5a: If your Contract Value is equal to $0, your GMIB Benefit Base is
$10,000, and all withdrawals from the Contract have been Required Minimum
Distributions:
- Your GMIB Benefit Base is eligible for automatic annuitization.
- Unless you choose another payment option, $10,000 will be applied to
purchase a Life Annuity with 120 Monthly Periods Guaranteed (a Joint
and Survivor Life Annuity with 120 Monthly Periods Guaranteed if
there are Joint Annuitants) using the Guaranteed Annuity Purchase
Rates defined in the GMIB.
E-2
- Unless you choose another payment frequency, you will receive
monthly income payments.
- The GMIB and the Contract will terminate.
Example 5b: If your Contract Value is equal to $0, your GMIB Benefit Base is
$10,000, and total withdrawals from the Contract for each individual Contract
Year have been less than or equal to 6% of the Roll-Up Component on the previous
Contract Anniversary:
- Your GMIB Benefit Base is eligible for automatic annuitization.
- Unless you choose another payment option, $10,000 will be applied to
purchase a Life Annuity with 120 Monthly Periods Guaranteed (a Joint
and Survivor Life Annuity with 120 Monthly Periods Guaranteed if
there are Joint Annuitants) using the Guaranteed Annuity Purchase
Rates defined in the GMIB.
- Unless you choose another payment frequency, you will receive
monthly income payments.
- The GMIB and the Contract will terminate.
Example 5c: If your Contract Value is equal to $0, your GMIB Benefit Base is
$10,000, and, in one Contract Year, a withdrawal was taken that was not a
Required Minimum Distribution and total withdrawals for that Contract Year
exceed 6% of the Roll-Up Component on the previous Contract Anniversary:
- The GMIB and the Contract will terminate because your GMIB Benefit
Base is not eligible for automatic annuitization.
E-3
APPENDIX F
ACCUMULATION UNIT VALUES
The tables reflect the values of accumulation units for each Investment Division
for the beginning and end of the periods indicated, and the number of
accumulation units outstanding as of the end of the periods indicated - for each
of a base Contract (with no optional endorsements) and for each Contract with
the most expensive combination of optional endorsements (through the end of the
most recent period). This information derives from the financial statements of
the Separate Account, which together constitute the Separate Account's condensed
financial information. The annualized charge for your Contract may fall in
between the charge for a base Contract and a Contract with the most expensive
combination of optional endorsements, and complete condensed financial
information about the Separate Account is available in the SAI. Contact the
Annuity Service Center to request your copy free of charge, and contact
information is on the cover page of the prospectus. Also, please ask about the
more timely accumulation unit values that are available for each Investment
Division.
The JNL/Lazard Small Cap Equity Fund and the JNL/Mellon Capital Management
Enhanced S&P 500 Stock Index Fund were previously offered as Funds under this
Contract. However, effective April 6, 2009, these Funds were merged with the
JNL/Mellon Capital Management Small Cap Index Fund and the JNL/Mellon Capital
Management S&P 500 Index Fund, respectively, as outlined below:
[Enlarge/Download Table]
--------------------------------------------------------------------------------------------------------------------
CURRENTLY OFFERED FUNDS PREVIOUSLY OFFERED FUNDS
--------------------------------------------------------------------------------------------------------------------
JNL/Mellon Capital Management S&P 500 Index Fund JNL/Mellon Capital Management Enhanced S&P 500 Stock Index Fund
--------------------------------------------------------------------------------------------------------------------
JNL/Mellon Capital Management Small Cap Index Fund JNL/Lazard Small Cap Equity Fund
--------------------------------------------------------------------------------------------------------------------
Also, effective April 6, 2009, the Separate Account has the following new
Investment Divisions, for which no Accumulation Unit information is available
yet:
JNL Institutional Alt 20 Fund;
JNL Institutional Alt 35 Fund;
JNL Institutional Alt 50 Fund; and
JNL Institutional Alt 65 Fund.
At the end of the tables in the SAI are the footnotes with the beginning dates
of activity for each Investment Division at every applicable charge level
(annualized) under the Contract.
F-1
Accumulation Unit Values
Base Contract with $1 Million Premium Administrative Fee Waiver - 1.50%
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-2
[Download Table]
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-3
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(1224)
Accumulation unit value:
Beginning of period $ 20.28 $ 19.30 N/A N/A
End of period $ 18.94 $ 20.28 N/A N/A
Accumulation units outstanding
at the end of period 24,870 24,870 N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-4
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-5
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-6
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-7
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(1224)
Accumulation unit value:
Beginning of period $ 20.36 $ 18.79 N/A N/A
End of period $ 11.45 $ 20.36 N/A N/A
Accumulation units outstanding
at the end of period 11,978 11,978 N/A N/A
JNL/MCM JNL 5 Division(1224)
Accumulation unit value:
Beginning of period $ 13.91 $ 13.83 N/A N/A
End of period $ 7.87 $ 13.91 N/A N/A
Accumulation units outstanding
at the end of period 23,076 17,656 N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-8
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-9
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-10
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-11
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-12
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-13
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period $ 11.74 N/A N/A N/A
End of period $ 9.96 N/A N/A N/A
Accumulation units outstanding
at the end of period 17,242 N/A N/A N/A
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-14
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-15
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
Accumulation Unit Values
Contract with Endorsements - 3.22%
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $12.83 $11.45 $10.96 $10.42
End of period $ 7.75 $12.83 $11.45 $10.96
Accumulation units outstanding
at the end of period -- -- -- --
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.13 $13.11 $11.82 $10.90
End of period $ 8.25 $14.13 $13.11 $11.82
Accumulation units outstanding
at the end of period -- -- -- --
F-16
[Download Table]
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-17
[Download Table]
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-18
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-19
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $16.78 $17.80 $16.04 $14.88
End of period $ 9.92 $16.78 $17.80 $16.04
Accumulation units outstanding
at the end of period -- -- -- --
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $13.36 $14.81 $13.10 $12.38
End of period $ 7.95 $13.36 $14.81 $13.10
Accumulation units outstanding
at the end of period -- -- -- --
F-20
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-21
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(781)
Accumulation unit value:
Beginning of period $ 8.62 $ 8.58 $ 7.58 $ 7.63
End of period $ 5.19 $ 8.62 $ 8.58 $ 7.58
Accumulation units outstanding
at the end of period 1,251 1,251 1,251 1,251
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-22
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-23
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $11.39 $11.22 $10.07 $ 9.54
End of period $ 6.88 $11.39 $11.22 $10.07
Accumulation units outstanding
at the end of period 7,522 7,522 7,522 7,522
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-24
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-25
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-26
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-27
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-28
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
F-29
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Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $22.57 $21.69 $19.71 $19.09
End of period $17.33 $22.57 $21.69 $19.71
Accumulation units outstanding
at the end of period -- -- -- --
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $20.21 $19.36 $16.53 $15.62
End of period $13.05 $20.21 $19.36 $16.53
Accumulation units outstanding
at the end of period -- -- -- --
F-30
[Enlarge/Download Table]
Investment Divisions December 31, December 31, December 31, December 31,
2008 2007 2006 2005
------------ ------------ ------------ ------------
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $14.16 $14.51 $12.48 $12.31
End of period $ 8.16 $14.16 $14.51 $12.48
Accumulation units outstanding
at the end of period 768 768 768 768
F-31
[Enlarge/Download Table]
-----------------------------------------------------------------------------------------------
Questions: If you have any questions about your Contract, you may contact us at:
Jackson of NY Service Center: 1 (800) 599-5651 (8 a.m. - 8 p.m. ET)
Mail Address: P.O. Box 30902, Lansing, Michigan 48909-8402
Delivery Address: 1 Corporate Way, Lansing, Michigan 48951
Jackson of NY IMG Service Center: 1 (888) 464-7779 (8 a.m. - 8 p.m. ET)
(for Contracts purchased through a bank
or another financial institution)
Mail Address: P.O. Box 33178, Detroit, MI 48232-5178
Delivery Address: c/o Standard Federal Bank, Drawer 5178,
12425 Merriman Road, Livonia, MI 48150
Home Office: 2900 Westchester Avenue, Purchase, New York 10577
----------------------------------------------------------- -----------------------------------
STATEMENT OF ADDITIONAL INFORMATION
APRIL 6, 2009
INDIVIDUAL AND GROUP DEFERRED FIXED AND
VARIABLE ANNUITY CONTRACTS
ISSUED BY THE JNLNY SEPARATE ACCOUNT I
OF JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK(R)
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 April 6, 2009. The
Prospectus may be obtained from Jackson National Life Insurance Company of New
York (Jackson of NYSM) by writing P.O. Box 30902, Lansing, Michigan 48909-8402,
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 5
Purchase of Securities Being Offered 10
Underwriters 10
Calculation of Performance 10
Additional Tax Information 12
Annuity Provisions 22
Net Investment Factor 23
Condensed Financial Information 23
GENERAL INFORMATION AND HISTORY
JNLNY Separate Account I (Separate Account) is a separate investment account of
Jackson of NY. In September 1997, the company changed its name from First
Jackson National Life Insurance Company to its present name. Jackson of NY is a
wholly owned subsidiary of Jackson National Life Insurance Company(R)
(JacksonSM), and is ultimately a wholly owned subsidiary of Prudential plc,
London, England, a life insurance company in the United Kingdom.
--------------------------------------------------------------------------------
TRADEMARKS, SERVICE MARKS, AND RELATED DISCLOSURES
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
(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(R)" are trade or service marks of The Nasdaq, Inc. (which with its
affiliates are the "Corporations") and have been licensed for use by Jackson.
The Corporations have not passed on the legality or suitability of the
JNL/Mellon Capital Management Nasdaq(R)25 Fund, the JNL/Mellon Capital
Management JNL Optimized 5 Fund, or the JNL/Mellon Capital Management VIP Fund.
The JNL/Mellon Capital Management Nasdaq(R) 25 Fund, the JNL/Mellon Capital
Management VIP Fund and the JNL/Mellon Capital Management JNL Optimized 5 Fund
are 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) 25 FUND, THE JNL/MELLON
CAPITAL MANAGEMENT VIP FUND AND THE JNL/MELLON CAPITAL MANAGEMENT JNL OPTIMIZED
5 FUND.
--------------------------------------------------------------------------------
"NYSE(R)" is a registered mark of, and "NYSE International 100 IndexSM" is a
service mark of, the New York Stock Exchange, Inc. ("NYSE") and have been
licensed for use for certain purposes by Jackson National Asset Management, LLC.
The JNL/Mellon Capital Management NYSE(R) International 25 Fund is not
sponsored, endorsed, sold or promoted by NYSE, and NYSE makes no representation
regarding the advisability of investing in the JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
"NYSE International 100 IndexSM" is a service mark of NYSE Group, Inc. NYSE
Group, Inc. has no relationship to Jackson National Asset Management, LLC, other
than the licensing of the "NYSE International 100 IndexSM" (the "Index") and its
service marks for use in connection with the JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
NYSE Group, Inc. DOES NOT:
o Sponsor, endorse, sell or promote the JNL/Mellon Capital Management
NYSE(R) International 25 Fund.
o Recommend that any person invest in the JNL/Mellon Capital Management
NYSE(R) International 25 Fund or any other securities.
o Have any responsibility or liability for or make any decisions about
the timing, amount or pricing of JNL/Mellon Capital Management NYSE(R)
International 25 Fund.
o Have any responsibility or liability for the administration,
management or marketing of the JNL/Mellon Capital Management NYSE(R)
International 25 Fund.
o Consider the needs of the JNL/Mellon Capital Management NYSE(R)
International 25 Fund or the owners of the JNL/Mellon Capital
Management NYSE(R) International 25 Fund in determining, composing or
calculating the NYSE International 100 IndexSM or have any obligation
to do so.
--------------------------------------------------------------------------------
NYSE GROUP, INC. AND ITS AFFILIATES WILL NOT HAVE ANY LIABILITY IN CONNECTION
WITH THE JNL/MELLON CAPITAL MANAGEMENT NYSE(R) INTERNATIONAL 25 FUND.
SPECIFICALLY,
o NYSE GROUP, INC. AND ITS AFFILIATES MAKE NO WARRANTY, EXPRESS OR
IMPLIED, AND NYSE GROUP, INC. AND ITS AFFILIATES DISCLAIM ANY WARRANTY
ABOUT:
o THE RESULTS TO BE OBTAINED BY THE JNL/MELLON CAPITAL MANAGEMENT
NYSE(R) INTERNATIONAL 25 FUND, THE OWNER OF THE JNL/MELLON CAPITAL
MANAGEMENT NYSE(R) INTERNATIONAL 25 FUND OR ANY OTHER PERSON IN
CONNECTION WITH THE USE OF THE INDEX AND THE DATA INCLUDED IN THE NYSE
INTERNATIONAL 100 INDEXSM;
o THE ACCURACY OR COMPLETENESS OF THE INDEX AND ITS DATA;
o THE MERCHANTABILITY AND THE FITNESS FOR A PARTICULAR PURPOSE OR USE OF
THE INDEX AND ITS DATA;
o NYSE GROUP, INC. WILL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR
INTERRUPTIONS IN THE INDEX OR ITS DATA;
o UNDER NO CIRCUMSTANCES WILL NYSE GROUP, INC. OR ANY OF ITS AFFILIATES
BE LIABLE FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR
CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NYSE GROUP, INC. KNOWS THAT
THEY MIGHT OCCUR.
THE LICENSING AGREEMENT BETWEEN JACKSON NATIONAL ASSET MANAGEMENT, LLC AND NYSE
GROUP, INC. IS SOLELY FOR THEIR BENEFIT AND NOT FOR THE BENEFIT OF THE OWNERS OF
THE JNL/MELLON CAPITAL MANAGEMENT NYSE(R) INTERNATIONAL 25 FUND OR ANY OTHER
THIRD PARTIES.
--------------------------------------------------------------------------------
Russell Investment Group is the source and owner of the trademarks, service
marks and copyrights related to the Russell Indexes. Russell is a trademark of
Russell Investment Group.
JNL/Mellon Capital Management Small Cap Index Fund is not promoted, sponsored or
endorsed by, nor in any way affiliated with Russell Investment Group
("Russell"). Russell is not responsible for and has not reviewed JNL/Mellon
Capital Management Small Cap Index Fund nor any associated literature or
publications and Russell makes no representation or warranty, express or
implied, as to their accuracy, or completeness, or otherwise.
Russell reserves the right, at any time and without notice, to alter, amend,
terminate or in any way change the Russell Indexes. Russell has no obligation to
take the needs of any particular fund or its participants or any other product
or person into consideration in determining, composing or calculating any of the
Russell Indexes.
Russell's publication of the Russell Indexes in no way suggests or implies an
opinion by Russell as to the attractiveness or appropriateness of investment in
any or all securities upon which the Russell Indexes are based. RUSSELL MAKES NO
REPRESENTATION, WARRANTY, OR GUARANTEE AS TO THE ACCURACY COMPLETENESS,
RELIABILITY, OR OTHERWISE OF THE RUSSELL INDEXES. RUSSELL MAKES NO
REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE, OR THE RESULTS OF USE,
OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITY (OR
COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES. RUSSELL MAKES NO OTHER
EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND,
INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTIBILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY
SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.
The JNL/Mellon Capital Management S&P Divisions and JNL/S&P Divisions, and any
other investment fund or other vehicle that is offered by third parties and that
seeks to provide an investment return based on the returns of any Standard &
Poor's Index are not sponsored, endorsed, sold or promoted by Standard & Poor's
Financial Services LLC ("S&P"), a wholly owned subsidiary of The McGraw-Hill
Companies, Inc. and its affiliates. S&P and its affiliates make 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, the S&P MidCap 400 Index, or any other S&P 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, the
S&P 500(R) Index, and the S&P MidCap 400 Index which 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,
the S&P 400 Index, or any other S&P 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, THE S&P MIDCAP 400 INDEX, OR ANY OTHER S&P 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, THE S&P MIDCAP 400 INDEX, OR ANY OTHER
S&P 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, THE S&P
MIDCAP 400 INDEX, OR ANY OTHER S&P 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.
Jackson has entered into a License Agreement with Value Line(R). Value Line
Publishing, Inc.'s ("VLPI") only relationship to Jackson is VLPI's licensing to
Jackson of certain VLPI trademarks and trade names and the Value Line Timeliness
Ranking System (the "System"), which is composed by VLPI without regard to
Jackson, this Product or any investor. VLPI has no obligation to take the needs
of Jackson 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.
SERVICES
Jackson of NY is the custodian of the assets of the Separate Account. Jackson of
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 Life
Insurance Company of New York for the periods indicated have been included
herein in reliance upon the reports of KPMG LLP, an independent registered
public accounting firm, appearing elsewhere herein, and upon the authority of
said firm as experts in accounting and auditing. KPMG LLP is located at 303 East
Wacker Drive, Chicago, Illinois 60601.
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 Financial Industry Regulatory
Authority (FINRA).
UNDERWRITERS
The Contracts are offered continuously and are distributed by Jackson National
Life Distributors LLC (JNLD), 7601 Technology Way, Denver, Colorado 80237. JNLD
is a subsidiary of Jackson.
The aggregate amount of underwriting commissions paid to broker/dealers was
$3,974,472 in 2006, $6,557,509 in $2007 and $6,196,210 in 2008. JNLD did not
retain any portion of the commissions.
CALCULATION OF PERFORMANCE
When Jackson of 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 of 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 of 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 of 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:
6
( a-b )
YIELD = 2 [( --- + 1) -1]
( cd )
[Download Table]
Where:
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 OF NY 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.
JACKSON OF NY'S TAX STATUS
Jackson of NY is taxed as a life insurance company under the Internal Revenue
Code of 1986, as amended (the "Code"). For federal income tax purposes, the
Separate Account is not a separate entity from Jackson of NY and its operations
form a part of Jackson of NY.
TAXATION OF ANNUITY CONTRACTS IN GENERAL
Section 72 of 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.
Owners, annuitants and beneficiaries under the Contracts should seek competent
financial advice about the tax consequences of distributions.
WITHHOLDING TAX ON DISTRIBUTIONS
The Code generally requires Jackson of NY (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) of the Code (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 the 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 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 last
day of each calendar quarter, or within 30 days after such last day, 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 of NY 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 of NY 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 of NY 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 12 investment options with the
insurance company having the ability to add an additional 8 options whereas the
Contract offers 92 Investment Divisions and at least one Fixed Account option,
although a Contract owner's Contract Value be allocated to no more than 18 fixed
and variable 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 of NY 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 of NY reserves the
right to modify the Contract to the extent required to maintain favorable tax
treatment.
MULTIPLE CONTRACTS
The Code provides that multiple non-qualified 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 V. 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. In response to the
CONWAY decision, the IRS issued Notice 2003-51 and Revenue Procedure 2008-24. In
accordance with these rulings, the IRS will consider a partial exchange valid if
there is either no withdrawal from, or surrender of, either the surviving
annuity contract or the new annuity contract within 12 months of the date of the
partial exchange or if the owner can demonstrate that they have met certain
conditions under Section 72(a)(2) or had any life event similar to these
conditions that occurred between the date of the exchange and the date of the
withdrawal or surrender. In the absence of further guidance from the Internal
Revenue Service it is unclear what specific types of life events may be approved
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 (except for the
taxation of life insurance companies). 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.
IRS APPROVAL
The Contract and all death benefit riders attached thereto have been approved by
the IRS for use as an Individual Retirement Annuity prototype.
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. Owners, annuitant and beneficiaries are also
reminded that 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
already tax-deferred.
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) distributions
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) 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.
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. 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. 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.
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.
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 of NY's administrative procedures.
Jackson of NY 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 of NY
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 of NY 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 $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 $1,000. The same contribution and catch-up
contributions are also available for purchasers of Traditional IRA
annuities.
Lower maximum limitations apply to individuals above certain adjusted gross
incomelevels. For 2008, these levels are $101,000 in the case of single
taxpayers, $159,000 in the case of married taxpayers filing joint returns,
and $0 in the case of married taxpayers filing separately. These levels are
indexed annually in $1,000 increments. An overall $5,000 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 adjusted gross income limit is eliminated for
rollovers after December 31, 2009. 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. For rollovers in 2010,
the income may be reported ratably in 2011 and 2012. 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
$16,500 elective deferral limitation in 2009. The limit is indexed for
inflation in $500 increments annually thereafter. 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 $5,500.
The same contribution and 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:
* attains age 70 1/2,
* severs employment,
* dies, or
* 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.
ANNUITY PROVISIONS
VARIABLE ANNUITY PAYMENT
The initial annuity payment is determined by taking the Contract value allocated
to that Investment Division, less any premium tax and any applicable Contract
charges, and then applying it to the income option table specified in the
Contract. The appropriate rate must be determined by the sex (except where, as
in the case of certain Qualified Plans and other employer-sponsored retirement
plans, such classification is not permitted) and age of the annuitant and
designated second person, if any.
The dollars applied are divided by 1,000 and the result multiplied by the
appropriate annuity factor appearing in the table to compute the amount of the
first monthly payment. That amount is divided by the value of an annuity unit as
of the Income Date to establish the number of annuity units representing each
variable payment. The number of annuity units determined for the first variable
payment remains constant for the second and subsequent monthly variable
payments, assuming that no reallocation of Contract values is made.
The amount of the second and each subsequent monthly variable payment is
determined by multiplying the number of annuity units by the annuity unit value
as of the business day next preceding the date on which each payment is due.
The mortality and expense experience will not adversely affect the dollar amount
of the variable annuity payments once payments have commenced.
ANNUITY UNIT VALUE
The initial value of an annuity unit of each Investment Division was set when
the Investment Divisions were established. The value may increase or decrease
from one business day to the next. The income option tables contained in the
Contract are based on a 2.5% per annum assumed investment rate.
The value of a fixed number of annuity units will reflect the investment
performance of the Investment Divisions elected, and the amount of each payment
will vary accordingly.
For each Investment Division, the value of an annuity unit for any business day
is determined by multiplying the annuity unit value for the immediately
preceding business day by the percentage change in the value of an accumulation
unit from the immediately preceding business day to the business day of
valuation, calculated by use of the Net Investment Factor, described below. The
result is then multiplied by a second factor which offsets the effect of the
assumed net investment rate of 2.5% per annum.
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's 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 of NY during the valuation period which
are determined by Jackson of 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 of NY for the
valuation period to reflect the asset-based charges (the mortality and
expense risk charge), administration charge, and any applicable
charges for optional benefits.
Also see "Income Payments (The Income Phase)" in the Prospectus.
CONDENSED FINANCIAL INFORMATION
ACCUMULATION UNIT VALUES
The tables reflect the values of accumulation units for each Investment Division
for the beginning and end of the periods indicated, and the number of
accumulation units outstanding as of the end of the periods indicated - for
Contracts with all levels of charges (and combinations of optional
endorsements). This information derives from the financial statements of the
Separate Account, which together constitute the Separate Account's condensed
financial information. Contact the Annuity Service Center to request your copy
free of charge, and contact information is on the cover page of the prospectus.
Also, please ask about the more timely accumulation unit values that are
available for each Investment Division.
The JNL/Lazard Small Cap Equity Fund and the JNL/Mellon Capital Management
Enhanced S&P 500 Stock Index Fund were previously offered as Funds under this
Contract. However, effective April 6, 2009, these Funds were merged with the
JNL/Mellon Capital Management Small Cap Index Fund and the JNL/Mellon Capital
Management S&P 500 Index Fund, respectively, as outlined below:
[Enlarge/Download Table]
-------------------------------------------------------- -----------------------------------------------------------------
CURRENTLY OFFERED FUNDS PREVIOUSLY OFFERED FUNDS
-------------------------------------------------------- -----------------------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------------------
JNL/Mellon Capital Management S&P 500 Index Fund JNL/Mellon Capital Management Enhanced S&P 500 Stock Index Fund
-------------------------------------------------------- -----------------------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------------------
JNL/Mellon Capital Management Small Cap Index Fund JNL/Lazard Small Cap Equity Fund
-------------------------------------------------------- -----------------------------------------------------------------
Also, effective April 6, 2009, the Separate Account has the following new
Investment Divisions, for which no Accumulation Unit information is available
yet:
JNL Institutional Alt 20 Fund;
JNL Institutional Alt 35 Fund;
JNL Institutional Alt 50 Fund; and
JNL Institutional Alt 65 Fund.
At the end of the tables are the footnotes with the beginning dates of activity
for each Investment Division at every applicable charge level (annualized) under
the Contract.
ACCUMULATION UNIT VALUES
BASE CONTRACT - 1.65%
[Enlarge/Download Table]
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(781)
Accumulation unit value:
Beginning of period $12.98 $15.53 $11.57 $10.51
End of period $8.21 $12.98 $15.53 $11.57
Accumulation units outstanding
at the end of period 70,807 35,510 16,689 331
JNL/AIM International Growth Division(781)
Accumulation unit value:
Beginning of period $18.66 $17.28 $14.33 $13.34
End of period $10.84 $18.66 $17.28 $14.33
Accumulation units outstanding
at the end of period 48,284 33,766 17,327 347
JNL/AIM Large Cap Growth Division(781)
Accumulation unit value:
Beginning of period $14.14 $12.42 $11.71 $11.12
End of period $8.67 $14.14 $12.42 $11.71
Accumulation units outstanding
at the end of period 35,587 19,083 10,817 975
JNL/AIM Small Cap Growth Division(781)
Accumulation unit value:
Beginning of period $15.58 $14.22 $12.63 $12.02
End of period $9.24 $15.58 $14.22 $12.63
Accumulation units outstanding
at the end of period 16,796 9,947 2,912 863
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.63 $11.89 $10.91 $9.97
End of period $8.91 $12.63 $11.89 $10.91
Accumulation units outstanding
at the end of period 81,626 22,309 8,353 -
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $30.04 $25.31 $22.71 $5.63
End of period $16.99 $30.04 $25.31 $22.71
Accumulation units outstanding
at the end of period 39,059 14,378 1,620 -
JNL/Capital Guardian International
Small Cap Division(1465)
Accumulation unit value:
Beginning of period $9.86 $9.62 N/A N/A
End of period $4.47 $9.86 N/A N/A
Accumulation units outstanding
at the end of period 29,237 2,338 N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(781)
Accumulation unit value:
Beginning of period $29.15 $27.01 $26.25 $23.45
End of period $16.95 $29.15 $27.01 $26.25
Accumulation units outstanding
at the end of period 39,071 24,532 14,280 7,373
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.68 $10.80 N/A N/A
End of period $6.56 $13.68 N/A N/A
Accumulation units outstanding
at the end of period 111,913 43,147 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $10.68 $10.13 N/A N/A
End of period $6.55 $10.68 N/A N/A
Accumulation units outstanding
at the end of period 33,820 6,841 N/A N/A
JNL/Eagle Core Equity Division(781)
Accumulation unit value:
Beginning of period $18.72 $18.92 $17.12 $16.80
End of period $11.22 $18.72 $18.92 $17.12
Accumulation units outstanding
at the end of period 3,220 2,379 1,248 903
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $25.18 $22.84 $19.33 $18.40
End of period $15.28 $25.18 $22.84 $19.33
Accumulation units outstanding
at the end of period 35,264 26,835 4,610 -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.93 $10.11 N/A N/A
End of period $6.24 $9.93 N/A N/A
Accumulation units outstanding
at the end of period 532,228 399,628 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period $9.91 $9.52 N/A N/A
End of period $5.79 $9.91 N/A N/A
Accumulation units outstanding
at the end of period 33,961 16,329 N/A N/A
JNL/Franklin Templeton Income
Division(1079)
Accumulation unit value:
Beginning of period $10.88 $10.86 $9.94 N/A
End of period $7.52 $10.88 $10.86 N/A
Accumulation units outstanding
at the end of period 198,594 60,885 16,073 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.86 $9.99 N/A N/A
End of period $6.02 $9.86 N/A N/A
Accumulation units outstanding
at the end of period 50,453 23,383 N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period $11.66 $12.63 $10.91 $10.27
End of period $7.67 $11.66 $12.63 $10.91
Accumulation units outstanding
at the end of period 38,685 18,482 5,372 -
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $19.90 $18.90 $18.36 $18.29
End of period $18.56 $19.90 $18.90 $18.36
Accumulation units outstanding
at the end of period 43,592 21,484 14,091 2,929
JNL/Goldman Sachs Emerging Markets
Debt Division(1920)
Accumulation unit value:
Beginning of period $9.29 N/A N/A N/A
End of period $9.64 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,665 N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.97 $12.83 $10.26 $10.32
End of period $8.15 $12.97 $12.83 $10.26
Accumulation units outstanding
at the end of period 31,223 26,188 6,381 -
JNL/Goldman Sachs Short Duration
Bond Division(1090)
Accumulation unit value:
Beginning of period $10.51 $10.20 $10.00 N/A
End of period $9.72 $10.51 $10.20 N/A
Accumulation units outstanding
at the end of period 50,133 21,909 11,883 N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $17.16 $15.58 $12.00 $10.13
End of period $9.37 $17.16 $15.58 $12.00
Accumulation units outstanding
at the end of period 86,130 57,700 20,650 2,393
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $25.07 $23.61 $22.08 $20.17
End of period $13.70 $25.07 $23.61 $12.09
Accumulation units outstanding
at the end of period 11,392 8,029 2,506 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(781)
Accumulation unit value:
Beginning of period $16.28 $15.56 $15.32 $15.27
End of period $17.06 $16.28 $15.56 $15.32
Accumulation units outstanding
at the end of period 39,980 24,456 5,116 169
JNL/Lazard Emerging Markets Division(1069)
Accumulation unit value:
Beginning of period $14.09 $10.87 $9.76 N/A
End of period $6.92 $14.09 $10.87 N/A
Accumulation units outstanding
at the end of period 81,410 38,921 11,026 N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $19.58 $20.44 $18.14 $17.12
End of period $11.76 $19.58 $20.44 $18.14
Accumulation units outstanding
at the end of period 40,969 33,116 16,332 10,438
JNL/Lazard Small Cap Equity Division(781)
Accumulation unit value:
Beginning of period $15.60 $17.01 $14.81 $14.62
End of period $9.42 $15.60 $17.01 $14.81
Accumulation units outstanding
at the end of period 20,263 24,176 11,115 545
JNL/M&G Global Basics Division(1914)
Accumulation unit value:
Beginning of period $8.11 N/A N/A N/A
End of period $8.39 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,883 N/A N/A N/A
JNL/M&G Global Leaders Division(1914)
Accumulation unit value:
Beginning of period $8.02 N/A N/A N/A
End of period $8.32 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,787 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1347)
Accumulation unit value:
Beginning of period $9.81 $10.30 N/A N/A
End of period $6.15 $9.81 N/A N/A
Accumulation units outstanding
at the end of period 105,860 11,722 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.93 $12.49 $11.95 N/A
End of period $7.60 $11.93 $12.49 N/A
Accumulation units outstanding
at the end of period 44,037 48,791 18,553 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.80 $11.27 $11.05 $11.03
End of period $12.03 $11.80 $11.27 $11.05
Accumulation units outstanding
at the end of period 138,581 119,420 71,209 3,852
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $6.14 $5.99 $11.22 $4.43
End of period $3.65 $6.14 $5.99 $11.22
Accumulation units outstanding
at the end of period 25,642 26,675 7,779 -
JNL/MCM Consumer Brands Sector
Division(748)
Accumulation unit value:
Beginning of period $10.45 $11.54 $10.34 $11.12
End of period $7.06 $10.45 $11.54 $10.34
Accumulation units outstanding
at the end of period 14,536 7,543 3,810 -
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.45 $11.08 N/A N/A
End of period $5.20 $10.45 N/A N/A
Accumulation units outstanding
at the end of period 141,894 142,331 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(781)
Accumulation unit value:
Beginning of period $9.87 $9.67 $8.42 $8.36
End of period $6.04 $9.87 $9.67 $8.42
Accumulation units outstanding
at the end of period 7,677 6,310 1,258 904
JNL/MCM European 30 Division(1907)
Accumulation unit value:
Beginning of period $9.24 N/A N/A N/A
End of period $8.59 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,157 N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $11.65 $14.34 $12.28 $11.36
End of period $5.66 $11.65 $14.34 $12.28
Accumulation units outstanding
at the end of period 61,647 23,466 10,533 4,937
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $12.48 $11.80 $11.28 $10.76
End of period $9.43 $12.48 $11.80 $11.28
Accumulation units outstanding
at the end of period 42,905 29,352 12,195 6,664
JNL/MCM Index 5 Division(1327)
Accumulation unit value:
Beginning of period $9.89 $10.32 N/A N/A
End of period $6.82 $9.89 N/A N/A
Accumulation units outstanding
at the end of period 124,101 2,734 N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $20.18 $18.59 $15.05 $13.87
End of period $11.33 $20.18 $18.59 $15.05
Accumulation units outstanding
at the end of period 156,957 158,536 91,313 16,149
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.84 $13.87 $11.87 $11.30
End of period $7.82 $13.84 $13.87 $11.87
Accumulation units outstanding
at the end of period 2,200,130 1,892,904 763,606 72,324
JNL/MCM JNL Optimized 5 Division(1089)
Accumulation unit value:
Beginning of period $11.97 $10.72 $9.01 N/A
End of period $6.35 $11.97 $10.72 N/A
Accumulation units outstanding
at the end of period 448,913 314,369 68,269 N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.72 $12.33 N/A N/A
End of period $7.32 $12.72 N/A N/A
Accumulation units outstanding
at the end of period 23,143 14,210 N/A N/A
JNL/MCM NYSE International 25
Division(1330)
Accumulation unit value:
Beginning of period $11.55 $10.43 N/A N/A
End of period $6.14 $11.55 N/A N/A
Accumulation units outstanding
at the end of period 48,647 28,243 N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $36.61 $27.51 $23.15 $21.06
End of period $22.37 $36.61 $27.51 $23.15
Accumulation units outstanding
at the end of period 37,797 29,940 9,352 356
JNL/MCM Pacific Rim 30 Division(1907)
Accumulation unit value:
Beginning of period $9.39 N/A N/A N/A
End of period $9.56 N/A N/A N/A
Accumulation units outstanding
at the end of period 302 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division(1450)
Accumulation unit value:
Beginning of period $10.78 $10.97 N/A N/A
End of period $7.13 $10.78 N/A N/A
Accumulation units outstanding
at the end of period 5,236 2,702 N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $16.04 $15.18 $14.07 $13.11
End of period $9.85 $16.04 $15.18 $14.07
Accumulation units outstanding
at the end of period 113,773 157,301 80,674 8,888
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $12.51 $12.13 $10.71 $10.55
End of period $7.67 $12.51 $12.13 $10.71
Accumulation units outstanding
at the end of period 189,869 170,410 100,604 8,256
JNL/MCM S&P SMid 60 Division(1347)
Accumulation unit value:
Beginning of period $8.83 $10.07 N/A N/A
End of period $6.06 $8.83 N/A N/A
Accumulation units outstanding
at the end of period 21,397 14,579 N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $18.51 $20.69 N/A N/A
End of period $10.92 $18.51 N/A N/A
Accumulation units outstanding
at the end of period 15,485 16,182 N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.93 $15.50 $13.42 $12.91
End of period $9.56 $14.93 $15.50 $13.42
Accumulation units outstanding
at the end of period 118,346 154,232 77,958 6,886
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.92 $6.14 $5.71 $5.42
End of period $3.85 $6.92 $6.14 $5.71
Accumulation units outstanding
at the end of period 61,791 49,317 27,455 767
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.78 $17.87 N/A N/A
End of period $9.19 $17.78 N/A N/A
Accumulation units outstanding
at the end of period 230,108 202,501 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.37 $13.19 $11.96 $11.39
End of period $8.09 $14.37 $13.19 $11.96
Accumulation units outstanding
at the end of period 295,834 277,325 232,027 27,866
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $15.12 $14.46 $12.57 $11.18
End of period $8.80 $15.12 $14.46 $12.57
Accumulation units outstanding
at the end of period 73,676 58,262 29,542 2,093
JNL/PAM Asia ex-Japan Division(1778)
Accumulation unit value:
Beginning of period $8.95 N/A N/A N/A
End of period $4.81 N/A N/A N/A
Accumulation units outstanding
at the end of period 31,553 N/A N/A N/A
JNL/PAM China-India Division(1778)
Accumulation unit value:
Beginning of period $7.85 N/A N/A N/A
End of period $4.16 N/A N/A N/A
Accumulation units outstanding
at the end of period 46,696 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.92 $10.29 N/A N/A
End of period $10.34 $10.92 N/A N/A
Accumulation units outstanding
at the end of period 181,373 15,528 N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.97 $14.07 $13.82 $13.74
End of period $14.79 $14.97 $14.07 $13.82
Accumulation units outstanding
at the end of period 278,784 128,848 84,242 45,228
JNL/PPM America Core Equity Division(748)
Accumulation unit value:
Beginning of period $21.52 $23.59 $21.82 $19.53
End of period $12.60 $21.52 $23.59 $21.09
Accumulation units outstanding
at the end of period 1,002 928 375 -
JNL/PPM America High Yield Bond
Division(781)
Accumulation unit value:
Beginning of period $13.60 $13.99 $12.87 $12.99
End of period $9.27 $13.60 $13.99 $12.87
Accumulation units outstanding
at the end of period 69,783 69,085 66,614 6,845
JNL/PPM America Mid Cap Value
Division(1808)
Accumulation unit value:
Beginning of period $10.59 N/A N/A N/A
End of period $5.63 N/A N/A N/A
Accumulation units outstanding
at the end of period 320 N/A N/A N/A
JNL/PPM America Small Cap Value
Division(1808)
Accumulation unit value:
Beginning of period $10.44 N/A N/A N/A
End of period $6.24 N/A N/A N/A
Accumulation units outstanding
at the end of period 49 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(781)
Accumulation unit value:
Beginning of period $20.61 $22.21 $19.97 $19.75
End of period $10.70 $20.61 $22.21 $19.97
Accumulation units outstanding
at the end of period 1,848 1,457 409 392
JNL/Red Rocks Listed Private Equity
Division(1907)
Accumulation unit value:
Beginning of period $8.52 N/A N/A N/A
End of period $5.92 N/A N/A N/A
Accumulation units outstanding
at the end of period 22,156 N/A N/A N/A
JNL/S&P 4 Division(1465)
Accumulation unit value:
Beginning of period $9.92 $10.04 N/A N/A
End of period $6.67 $9.92 N/A N/A
Accumulation units outstanding
at the end of period 294,836 3,909 N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period $9.68 N/A N/A N/A
End of period $6.88 N/A N/A N/A
Accumulation units outstanding
at the end of period 7,280 N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period $10.48 $10.87 N/A N/A
End of period $6.27 $10.48 N/A N/A
Accumulation units outstanding
at the end of period 32,856 4,903 N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period $10.53 $10.66 N/A N/A
End of period $7.60 $10.53 N/A N/A
Accumulation units outstanding
at the end of period 49,522 477 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.50 $9.96 N/A N/A
End of period $6.74 $10.50 N/A N/A
Accumulation units outstanding
at the end of period 48,537 35,471 N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period $8.98 N/A N/A N/A
End of period $7.11 N/A N/A N/A
Accumulation units outstanding
at the end of period 16,681 N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period $8.86 N/A N/A N/A
End of period $6.25 N/A N/A N/A
Accumulation units outstanding
at the end of period 12,864 N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $16.24 $15.12 $13.31 $12.23
End of period $9.72 $16.24 $15.12 $13.31
Accumulation units outstanding
at the end of period 67,717 42,107 33,550 -
JNL/S&P Managed Conservative Division(781)
Accumulation unit value:
Beginning of period $11.67 $11.16 $10.52 $10.35
End of period $9.90 $11.67 $11.16 $10.52
Accumulation units outstanding
at the end of period 259,555 76,339 47,415 24,736
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $16.11 $15.06 $13.42 $12.72
End of period $10.24 $16.11 $15.06 $13.42
Accumulation units outstanding
at the end of period 458,583 281,910 154,955 7,998
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.48 $11.77 $10.84 $10.54
End of period $9.66 $12.48 $11.77 $10.84
Accumulation units outstanding
at the end of period 294,973 198,776 62,687 5,687
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $15.30 $14.32 $12.97 $12.46
End of period $10.91 $15.30 $14.32 $12.97
Accumulation units outstanding
at the end of period 405,741 243,036 95,217 27,197
JNL/S&P Retirement 2015 Division(1199)
Accumulation unit value:
Beginning of period $11.63 $10.83 $10.68 N/A
End of period $8.00 $11.63 $10.83 N/A
Accumulation units outstanding
at the end of period 5,007 788 - N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period $11.80 $11.54 N/A N/A
End of period $7.74 $11.80 N/A N/A
Accumulation units outstanding
at the end of period 15,429 7,096 N/A N/A
JNL/S&P Retirement 2025 Division(1199)
Accumulation unit value:
Beginning of period $11.94 $11.03 $10.85 N/A
End of period $7.56 $11.94 $11.03 N/A
Accumulation units outstanding
at the end of period 35,199 789 - N/A
JNL/S&P Retirement Income Division(1168)
Accumulation unit value:
Beginning of period $11.12 $10.57 $10.32 N/A
End of period $8.95 $11.12 $10.57 N/A
Accumulation units outstanding
at the end of period 48,325 92,653 7,696 N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period $9.86 N/A N/A N/A
End of period $6.37 N/A N/A N/A
Accumulation units outstanding
at the end of period 10,147 N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $27.52 $26.03 $23.28 $22.88
End of period $21.46 $27.52 $26.03 $23.28
Accumulation units outstanding
at the end of period 40,425 19,276 3,360 426
JNL/Select Money Market Division(781)
Accumulation unit value:
Beginning of period $12.78 $12.41 $12.07 $11.95
End of period $12.85 $12.78 $12.41 $12.07
Accumulation units outstanding
at the end of period 121,008 53,561 20,406 42,243
JNL/Select Value Division(781)
Accumulation unit value:
Beginning of period $21.95 $20.69 $17.40 $16.95
End of period $14.39 $21.95 $20.69 $17.40
Accumulation units outstanding
at the end of period 37,417 38,570 8,670 1,295
JNL/T.Rowe Price Established Growth
Division(781)
Accumulation unit value:
Beginning of period $31.82 $29.38 $26.27 $24.85
End of period $17.89 $31.82 $29.38 $26.27
Accumulation units outstanding
at the end of period 54,019 23,848 11,056 1,942
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $44.42 $38.53 $36.68 $32.56
End of period $25.93 $44.42 $38.53 $36.68
Accumulation units outstanding
at the end of period 48,374 30,463 15,398 7,705
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $15.98 $16.11 $13.64 $13.28
End of period $9.35 $15.98 $16.11 $13.64
Accumulation units outstanding
at the end of period 75,454 58,882 36,542 22,329
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 1.75%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(1224)
Accumulation unit value:
Beginning of period $19.65 $18.75 N/A N/A
End of period $18.31 $19.65 N/A N/A
Accumulation units outstanding
at the end of period 8,506 8,862 N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL 5 Division(1224)
Accumulation unit value:
Beginning of period $13.79 $13.75 N/A N/A
End of period $7.79 $13.79 N/A N/A
Accumulation units outstanding
at the end of period 50,832 49,624 N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(1224)
Accumulation unit value:
Beginning of period $14.83 $14.00 N/A N/A
End of period $14.63 $14.83 N/A N/A
Accumulation units outstanding
at the end of period 11,224 11,877 N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division(1224)
Accumulation unit value:
Beginning of period $12.62 $12.26 N/A N/A
End of period $12.67 $12.62 N/A N/A
Accumulation units outstanding
at the end of period 8,902 9,034 N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 1.90%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.89 $15.46 $11.55 $10.83
End of period $8.13 $12.89 $15.46 $11.55
Accumulation units outstanding
at the end of period 37,927 21,363 12,002 -
JNL/AIM International Growth Division(781)
Accumulation unit value:
Beginning of period $18.08 $16.78 $13.95 $13.19
End of period $10.48 $18.08 $16.78 $13.95
Accumulation units outstanding
at the end of period 28,282 22,346 8,048 196
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.92 $12.26 $11.58 $10.88
End of period $8.52 $13.92 $12.26 $11.58
Accumulation units outstanding
at the end of period 24,529 7,656 5,448 -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.33 $14.03 $13.28 $11.37
End of period $9.07 $15.33 $14.03 $12.49
Accumulation units outstanding
at the end of period 12,274 7,351 1,178 -
JNL/Capital Guardian Global Balanced
Division(781)
Accumulation unit value:
Beginning of period $12.39 $11.70 $10.76 $10.17
End of period $8.72 $12.39 $11.70 $10.76
Accumulation units outstanding
at the end of period 34,868 18,121 8,271 7,881
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $29.11 $24.59 $22.12 $21.45
End of period $16.43 $29.11 $24.59 $22.12
Accumulation units outstanding
at the end of period 40,164 26,616 8,713 -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period $9.57 N/A N/A N/A
End of period $4.46 N/A N/A N/A
Accumulation units outstanding
at the end of period 24,745 N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $28.24 $26.23 $25.71 $24.38
End of period $16.38 $28.24 $26.23 $25.56
Accumulation units outstanding
at the end of period 56,755 32,929 16,447 -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.65 $10.00 N/A N/A
End of period $6.53 $13.65 N/A N/A
Accumulation units outstanding
at the end of period 85,824 19,981 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $10.65 $10.11 N/A N/A
End of period $6.51 $10.65 N/A N/A
Accumulation units outstanding
at the end of period 25,728 5,194 N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $18.20 $18.44 $16.73 $16.27
End of period $10.88 $18.20 $18.44 $16.73
Accumulation units outstanding
at the end of period 1,198 - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $24.48 $22.26 $18.89 $18.02
End of period $14.82 $24.48 $22.26 $18.89
Accumulation units outstanding
at the end of period 26,733 12,387 4,543 -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.91 $10.09 N/A N/A
End of period $6.21 $9.91 N/A N/A
Accumulation units outstanding
at the end of period 513,539 376,215 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period $9.88 $9.76 N/A N/A
End of period $5.76 $9.88 N/A N/A
Accumulation units outstanding
at the end of period 8,111 2,259 N/A N/A
JNL/Franklin Templeton Income
Division(1074)
Accumulation unit value:
Beginning of period $10.83 $10.84 $9.90 N/A
End of period $7.47 $10.83 $10.84 N/A
Accumulation units outstanding
at the end of period 51,773 47,018 11,196 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.84 $9.89 N/A N/A
End of period $6.00 $9.84 N/A N/A
Accumulation units outstanding
at the end of period 21,799 7,744 N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(835)
Accumulation unit value:
Beginning of period $11.59 $12.58 $11.50 $10.28
End of period $7.60 $11.59 $12.58 $10.89
Accumulation units outstanding
at the end of period 25,649 6,400 894 -
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $19.28 $18.36 $17.88 $17.85
End of period $17.94 $19.28 $18.36 $17.88
Accumulation units outstanding
at the end of period 48,358 45,752 30,385 8,793
JNL/Goldman Sachs Emerging Markets
Debt Division(1951)
Accumulation unit value:
Beginning of period $9.64 N/A N/A N/A
End of period $9.64 N/A N/A N/A
Accumulation units outstanding
at the end of period 519 N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division(781)
Accumulation unit value:
Beginning of period $12.88 $12.77 $11.25 $10.95
End of period $8.08 $12.88 $12.77 $11.25
Accumulation units outstanding
at the end of period 23,312 36,510 6,981 235
JNL/Goldman Sachs Short Duration
Bond Division(1104)
Accumulation unit value:
Beginning of period $10.47 $10.18 $9.99 N/A
End of period $9.66 $10.47 $10.18 N/A
Accumulation units outstanding
at the end of period 126,135 147,567 67,011 N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $16.74 $15.24 $11.77 $10.46
End of period $9.12 $16.74 $15.24 $11.77
Accumulation units outstanding
at the end of period 111,985 68,649 24,614 235
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $24.29 $22.93 $20.86 $19.68
End of period $13.24 $24.29 $22.93 $20.86
Accumulation units outstanding
at the end of period 8,445 4,691 1,215 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.77 $15.11 $14.91 $14.93
End of period $16.48 $15.77 $15.11 $14.91
Accumulation units outstanding
at the end of period 7,504 8,742 4,528 -
JNL/Lazard Emerging Markets Division(1079)
Accumulation unit value:
Beginning of period $14.03 $10.85 $8.93 N/A
End of period $6.88 $14.03 $10.85 N/A
Accumulation units outstanding
at the end of period 77,675 38,571 6,729 N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $19.11 $20.00 $17.79 $16.82
End of period $11.44 $19.11 $20.00 $17.79
Accumulation units outstanding
at the end of period 58,288 38,627 18,855 149
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $15.22 $16.64 $14.52 $13.56
End of period $9.17 $15.22 $16.64 $14.52
Accumulation units outstanding
at the end of period 64,395 64,670 29,583 -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1408)
Accumulation unit value:
Beginning of period $9.79 $10.33 N/A N/A
End of period $6.13 $9.79 N/A N/A
Accumulation units outstanding
at the end of period 92,255 31,736 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.68 $12.25 $11.74 N/A
End of period $7.42 $11.68 $12.25 N/A
Accumulation units outstanding
at the end of period 21,720 29,044 27,004 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.62 $11.13 $10.94 $10.94
End of period $11.82 $11.62 $11.13 $10.94
Accumulation units outstanding
at the end of period 75,708 63,316 31,432 2,284
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $6.01 $5.88 $4.40 $4.37
End of period $3.56 $6.01 $5.88 $4.40
Accumulation units outstanding
at the end of period 4,253 2,627 2,195 -
JNL/MCM Consumer Brands Sector
Division(781)
Accumulation unit value:
Beginning of period $10.25 $11.34 $10.19 $10.44
End of period $6.91 $10.25 $11.34 $10.19
Accumulation units outstanding
at the end of period 5,589 2,413 698 254
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.40 $11.03 N/A N/A
End of period $5.17 $10.40 N/A N/A
Accumulation units outstanding
at the end of period 220,848 253,289 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(781)
Accumulation unit value:
Beginning of period $9.66 $9.49 $8.28 $8.17
End of period $5.89 $9.66 $9.49 $8.28
Accumulation units outstanding
at the end of period 2,090 1,954 660 315
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $11.63 $14.34 $12.31 $12.08
End of period $5.63 $11.63 $14.34 $12.31
Accumulation units outstanding
at the end of period 45,712 4,945 3,539 213
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $12.22 $11.58 $11.10 $10.60
End of period $9.21 $12.22 $11.58 $11.10
Accumulation units outstanding
at the end of period 27,068 6,522 4,513 1,354
JNL/MCM Index 5 Division(1339)
Accumulation unit value:
Beginning of period $9.87 $10.24 N/A N/A
End of period $6.79 $9.87 N/A N/A
Accumulation units outstanding
at the end of period 58,618 3,627 N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.88 $18.36 $14.90 $13.76
End of period $11.13 $19.88 $18.36 $14.90
Accumulation units outstanding
at the end of period 112,251 83,471 36,913 555
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.73 $13.79 $11.83 $11.29
End of period $7.74 $13.73 $13.79 $11.83
Accumulation units outstanding
at the end of period 2,284,836 2,238,080 1,041,849 89,105
JNL/MCM JNL Optimized 5 Division(1096)
Accumulation unit value:
Beginning of period $11.92 $10.70 $9.17 N/A
End of period $6.31 $11.92 $10.70 N/A
Accumulation units outstanding
at the end of period 243,391 166,805 24,429 N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.62 $12.23 N/A N/A
End of period $7.24 $12.62 N/A N/A
Accumulation units outstanding
at the end of period 36,565 33,831 N/A N/A
JNL/MCM NYSE International 25
Division(1338)
Accumulation unit value:
Beginning of period $11.53 $10.64 N/A N/A
End of period $6.12 $11.53 N/A N/A
Accumulation units outstanding
at the end of period 15,816 14,776 N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $35.84 $27.00 $22.78 $20.77
End of period $21.85 $35.84 $27.00 $22.78
Accumulation units outstanding
at the end of period 24,031 17,095 9,653 203
JNL/MCM Pacific Rim 30 Division(1911)
Accumulation unit value:
Beginning of period $8.24 N/A N/A N/A
End of period $9.56 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,306 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division(1450)
Accumulation unit value:
Beginning of period $10.73 $10.93 N/A N/A
End of period $7.08 $10.73 N/A N/A
Accumulation units outstanding
at the end of period 840 2,449 N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.80 $14.99 $13.93 $12.34
End of period $9.68 $15.80 $14.99 $13.93
Accumulation units outstanding
at the end of period 51,898 46,345 25,081 -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.33 $11.98 $10.61 $10.22
End of period $7.54 $12.33 $11.98 $10.61
Accumulation units outstanding
at the end of period 143,544 104,397 50,462 -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period $8.70 N/A N/A N/A
End of period $6.04 N/A N/A N/A
Accumulation units outstanding
at the end of period 4,039 N/A N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $18.13 $20.30 N/A N/A
End of period $10.66 $18.13 N/A N/A
Accumulation units outstanding
at the end of period 9,334 9,394 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.71 $15.31 $13.28 $12.46
End of period $9.39 $14.71 $15.31 $13.28
Accumulation units outstanding
at the end of period 72,130 52,272 26,866 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.77 $6.02 $5.61 $5.34
End of period $3.76 $6.77 $6.02 $5.61
Accumulation units outstanding
at the end of period 47,076 24,925 7,365 927
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.64 $17.73 N/A N/A
End of period $9.10 $17.64 N/A N/A
Accumulation units outstanding
at the end of period 285,173 196,798 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.26 $13.12 $11.92 $11.38
End of period $8.00 $14.26 $13.12 $11.92
Accumulation units outstanding
at the end of period 73,222 79,457 47,241 9,352
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.87 $14.26 $12.42 $10.71
End of period $8.63 $14.87 $14.26 $12.42
Accumulation units outstanding
at the end of period 73,138 46,946 28,598 -
JNL/PAM Asia ex-Japan Division(1774)
Accumulation unit value:
Beginning of period $8.90 N/A N/A N/A
End of period $4.79 N/A N/A N/A
Accumulation units outstanding
at the end of period 24,551 N/A N/A N/A
JNL/PAM China-India Division(1774)
Accumulation unit value:
Beginning of period $7.82 N/A N/A N/A
End of period $4.14 N/A N/A N/A
Accumulation units outstanding
at the end of period 39,804 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.89 $9.94 N/A N/A
End of period $10.29 $10.89 N/A N/A
Accumulation units outstanding
at the end of period 44,411 4,331 N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.61 $13.76 $13.55 $13.50
End of period $14.39 $14.61 $13.76 $13.55
Accumulation units outstanding
at the end of period 147,130 163,713 55,854 6,575
JNL/PPM America Core Equity Division(748)
Accumulation unit value:
Beginning of period $20.85 $22.92 $20.53 $19.06
End of period $12.17 $20.85 $22.92 $20.53
Accumulation units outstanding
at the end of period 5,844 4,051 - -
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $13.26 $13.67 $12.62 $12.56
End of period $9.01 $13.26 $13.67 $12.62
Accumulation units outstanding
at the end of period 12,052 14,062 2,528 -
JNL/PPM America Mid Cap Value
Division(1807)
Accumulation unit value:
Beginning of period $10.52 N/A N/A N/A
End of period $5.62 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,363 N/A N/A N/A
JNL/PPM America Small Cap Value
Division(1807)
Accumulation unit value:
Beginning of period $10.36 N/A N/A N/A
End of period $6.23 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,912 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $19.97 $21.57 $19.90 $18.70
End of period $10.34 $19.97 $21.57 $19.45
Accumulation units outstanding
at the end of period 7,425 296 189 -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.68 N/A N/A N/A
End of period $6.65 N/A N/A N/A
Accumulation units outstanding
at the end of period 44,894 N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period $9.29 N/A N/A N/A
End of period $6.87 N/A N/A N/A
Accumulation units outstanding
at the end of period 5,154 N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period $10.46 $10.98 N/A N/A
End of period $6.24 $10.46 N/A N/A
Accumulation units outstanding
at the end of period 20,178 7,302 N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period $10.51 $10.30 N/A N/A
End of period $7.57 $10.51 N/A N/A
Accumulation units outstanding
at the end of period 12,377 2,285 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.48 $10.49 N/A N/A
End of period $6.71 $10.48 N/A N/A
Accumulation units outstanding
at the end of period 71,498 36,238 N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period $9.41 N/A N/A N/A
End of period $7.09 N/A N/A N/A
Accumulation units outstanding
at the end of period 14,164 N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period $9.30 N/A N/A N/A
End of period $6.24 N/A N/A N/A
Accumulation units outstanding
at the end of period 5,680 N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(781)
Accumulation unit value:
Beginning of period $15.85 $14.80 $13.05 $12.29
End of period $9.46 $15.85 $14.80 $13.05
Accumulation units outstanding
at the end of period 298,276 95,865 49,161 26,243
JNL/S&P Managed Conservative Division(781)
Accumulation unit value:
Beginning of period $11.57 $11.10 $10.49 $10.17
End of period $9.79 $11.57 $11.10 $10.49
Accumulation units outstanding
at the end of period 77,594 29,442 27,007 8,540
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $15.72 $14.74 $13.16 $12.50
End of period $9.97 $15.72 $14.74 $13.16
Accumulation units outstanding
at the end of period 345,603 268,607 161,829 30,169
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.37 $11.71 $10.81 $10.33
End of period $9.56 $12.37 $11.71 $10.81
Accumulation units outstanding
at the end of period 190,994 129,721 85,598 15,362
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.93 $14.01 $12.73 $12.25
End of period $10.62 $14.93 $14.01 $12.73
Accumulation units outstanding
at the end of period 343,344 298,539 214,732 112,624
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period $11.57 $11.23 N/A N/A
End of period $7.94 $11.57 N/A N/A
Accumulation units outstanding
at the end of period 7,978 8,010 N/A N/A
JNL/S&P Retirement 2020 Division(1147)
Accumulation unit value:
Beginning of period $11.74 $10.93 $10.21 N/A
End of period $7.68 $11.74 $10.93 N/A
Accumulation units outstanding
at the end of period 2,920 728 - N/A
JNL/S&P Retirement 2025 Division(1081)
Accumulation unit value:
Beginning of period $11.88 $11.00 $10.04 N/A
End of period $7.50 $11.88 $11.00 N/A
Accumulation units outstanding
at the end of period 4,573 5,421 - N/A
JNL/S&P Retirement Income Division(1004)
Accumulation unit value:
Beginning of period $11.06 $10.55 $9.97 N/A
End of period $8.89 $11.06 $10.55 N/A
Accumulation units outstanding
at the end of period 4,004 4,366 4,709 N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period $9.80 N/A N/A N/A
End of period $6.35 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,861 N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $26.67 $25.28 $22.67 $22.33
End of period $20.74 $26.67 $25.28 $22.67
Accumulation units outstanding
at the end of period 16,647 16,266 3,613 5,587
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $12.38 $12.05 $11.90 $11.64
End of period $12.42 $12.38 $12.05 $11.73
Accumulation units outstanding
at the end of period 222,307 130,795 8,185 -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.66 $20.48 $17.26 $16.10
End of period $14.17 $21.66 $20.48 $17.26
Accumulation units outstanding
at the end of period 45,127 42,914 20,374 -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $30.83 $28.54 $25.58 $24.13
End of period $17.29 $30.83 $28.54 $25.58
Accumulation units outstanding
at the end of period 59,480 40,179 13,651 -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $43.04 $37.43 $35.72 $30.96
End of period $25.07 $43.04 $37.43 $35.72
Accumulation units outstanding
at the end of period 38,972 21,773 10,555 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $15.67 $15.84 $13.45 $13.12
End of period $9.15 $15.67 $15.84 $13.45
Accumulation units outstanding
at the end of period 105,560 46,175 22,001 9,380
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 1.92%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(1224)
Accumulation unit value:
Beginning of period $12.89 $15.45 N/A N/A
End of period $8.13 $12.89 N/A N/A
Accumulation units outstanding
at the end of period 7,283 3,883 N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division(1306)
Accumulation unit value:
Beginning of period $13.65 $11.42 N/A N/A
End of period $6.53 $13.65 N/A N/A
Accumulation units outstanding
at the end of period 10,573 4,978 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division(1331)
Accumulation unit value:
Beginning of period $9.91 $10.36 N/A N/A
End of period $6.21 $9.91 N/A N/A
Accumulation units outstanding
at the end of period 12,878 6,693 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period $19.34 N/A N/A N/A
End of period $17.89 N/A N/A N/A
Accumulation units outstanding
at the end of period 54,284 N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.39 $11.03 N/A N/A
End of period $5.16 $10.39 N/A N/A
Accumulation units outstanding
at the end of period 13,303 6,090 N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division(1224)
Accumulation unit value:
Beginning of period $12.20 $11.56 N/A N/A
End of period $9.19 $12.20 N/A N/A
Accumulation units outstanding
at the end of period 11,935 5,471 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(1224)
Accumulation unit value:
Beginning of period $19.86 $18.40 N/A N/A
End of period $11.12 $19.86 N/A N/A
Accumulation units outstanding
at the end of period 6,594 3,360 N/A N/A
JNL/MCM JNL 5 Division(1224)
Accumulation unit value:
Beginning of period $13.72 $13.70 N/A N/A
End of period $7.73 $13.72 N/A N/A
Accumulation units outstanding
at the end of period 9,305 4,715 N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(1224)
Accumulation unit value:
Beginning of period $35.78 $25.93 N/A N/A
End of period $21.81 $35.78 N/A N/A
Accumulation units outstanding
at the end of period 4,045 1,977 N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division(1224)
Accumulation unit value:
Beginning of period $6.76 $6.03 N/A N/A
End of period $3.75 $6.76 N/A N/A
Accumulation units outstanding
at the end of period 26,576 11,948 N/A N/A
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.63 $17.72 N/A N/A
End of period $9.09 $17.63 N/A N/A
Accumulation units outstanding
at the end of period 7,259 3,809 N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.045%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.84 $15.42 $11.54 $10.43
End of period $8.09 $12.84 $15.42 $11.54
Accumulation units outstanding
at the end of period 1,701 1,098 471 -
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.75 $16.50 $13.74 $12.37
End of period $10.27 $17.75 $16.50 $13.74
Accumulation units outstanding
at the end of period 1,116 1,398 - -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.80 $12.17 $11.51 $10.83
End of period $8.43 $13.80 $12.17 $11.51
Accumulation units outstanding
at the end of period 327 331 - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.20 $13.93 $12.42 $11.32
End of period $8.97 $15.20 $13.93 $12.42
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.25 $11.58 $10.67 $9.78
End of period $8.61 $12.25 $11.58 $10.67
Accumulation units outstanding
at the end of period 1,103 - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period $28.58 $24.18 $21.78 $21.09
End of period $16.10 $28.58 $24.18 $21.78
Accumulation units outstanding
at the end of period 854 271 - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.63 $11.84 N/A N/A
End of period $6.51 $13.63 N/A N/A
Accumulation units outstanding
at the end of period 2,920 2,920 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.90 $18.17 $16.50 $16.07
End of period $10.69 $17.90 $18.17 $16.50
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $24.08 $21.93 $21.97 $17.80
End of period $14.56 $24.08 $21.93 $18.63
Accumulation units outstanding
at the end of period 182 - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.89 $10.09 N/A N/A
End of period $6.19 $9.89 N/A N/A
Accumulation units outstanding
at the end of period 30,492 46,645 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period $9.87 $10.12 N/A N/A
End of period $5.74 $9.87 N/A N/A
Accumulation units outstanding
at the end of period 2,468 5,422 N/A N/A
JNL/Franklin Templeton Income
Division(1081)
Accumulation unit value:
Beginning of period $10.81 $10.83 $9.91 N/A
End of period $7.44 $10.81 $10.83 N/A
Accumulation units outstanding
at the end of period 11,064 5,511 215 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.83 $10.17 N/A N/A
End of period $5.98 $9.83 N/A N/A
Accumulation units outstanding
at the end of period 9,603 12,098 N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period $11.54 $12.55 $10.88 $10.84
End of period $7.56 $11.54 $12.55 $10.88
Accumulation units outstanding
at the end of period 2,504 2,247 152 -
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $18.93 $18.05 $17.60 $17.49
End of period $17.58 $18.93 $18.05 $17.60
Accumulation units outstanding
at the end of period 13,728 14,245 12,037 -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.83 $12.74 $11.24 $11.08
End of period $8.03 $12.83 $12.74 $11.24
Accumulation units outstanding
at the end of period 465 - - -
JNL/Goldman Sachs Short Duration
Bond Division(1074)
Accumulation unit value:
Beginning of period $10.44 $10.17 $10.00 N/A
End of period $9.62 $10.44 $10.17 N/A
Accumulation units outstanding
at the end of period 3,300 2,382 2,403 N/A
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $16.50 $15.04 $11.63 $9.82
End of period $8.97 $16.50 $15.04 $11.63
Accumulation units outstanding
at the end of period 2,904 2,796 816 -
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.85 $22.55 $20.54 $19.41
End of period $12.98 $23.85 $22.55 $20.54
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.48 $14.86 $14.69 $14.72
End of period $16.16 $15.48 $14.86 $14.69
Accumulation units outstanding
at the end of period 608 499 196 -
JNL/Lazard Emerging Markets Division(1194)
Accumulation unit value:
Beginning of period $14.00 $10.84 $10.17 N/A
End of period $6.85 $14.00 $10.84 N/A
Accumulation units outstanding
at the end of period 774 2,843 338 N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.84 $19.74 $17.59 $16.13
End of period $11.27 $18.84 $19.74 $17.59
Accumulation units outstanding
at the end of period - 211 - -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $15.00 $16.43 $14.36 $13.42
End of period $9.03 $15.00 $16.43 $14.36
Accumulation units outstanding
at the end of period 1,581 557 493 -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1426)
Accumulation unit value:
Beginning of period $9.78 $10.35 N/A N/A
End of period $6.11 $9.78 N/A N/A
Accumulation units outstanding
at the end of period 17,787 17,996 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.54 $12.12 $11.63 N/A
End of period $7.32 $11.54 $12.12 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.52 $11.05 $10.88 $10.92
End of period $11.70 $11.52 $11.05 $10.88
Accumulation units outstanding
at the end of period 12,621 12,579 10,334 -
JNL/MCM Communications Sector
Division(1023)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Consumer Brands Sector
Division(1202)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.37 $11.00 N/A N/A
End of period $5.14 $10.37 N/A N/A
Accumulation units outstanding
at the end of period 2,485 20,190 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.54 $9.39 $8.20 $7.93
End of period $5.81 $9.54 $9.39 $8.20
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.49 $14.19 $12.20 $11.52
End of period $5.55 $11.49 $14.19 $12.20
Accumulation units outstanding
at the end of period 3,537 - - -
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $12.07 $11.45 $11.00 $10.32
End of period $9.08 $12.07 $11.45 $11.00
Accumulation units outstanding
at the end of period - 92 - -
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.71 $18.23 $14.81 $13.02
End of period $11.02 $19.71 $18.23 $14.81
Accumulation units outstanding
at the end of period 16,026 17,362 5,623 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.66 $13.75 $11.81 $11.28
End of period $7.69 $13.66 $13.75 $11.81
Accumulation units outstanding
at the end of period 254,492 252,500 95,117 29,308
JNL/MCM JNL Optimized 5 Division(1072)
Accumulation unit value:
Beginning of period $11.89 $10.69 $9.52 N/A
End of period $6.28 $11.89 $10.69 N/A
Accumulation units outstanding
at the end of period 15,727 31,129 76,217 N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25
Division(1358)
Accumulation unit value:
Beginning of period $11.52 $11.00 N/A N/A
End of period $6.10 $11.52 N/A N/A
Accumulation units outstanding
at the end of period 2,128 2,702 N/A N/A
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $35.40 $26.71 $22.56 $17.02
End of period $21.55 $35.40 $26.71 $22.56
Accumulation units outstanding
at the end of period 554 1,111 - -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.66 $14.88 $13.85 $12.28
End of period $9.58 $15.66 $14.88 $13.85
Accumulation units outstanding
at the end of period 7,482 9,646 6,323 -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.22 $11.89 $10.55 $10.18
End of period $7.47 $12.22 $11.89 $10.55
Accumulation units outstanding
at the end of period 9,901 10,440 8,420 -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.58 $15.20 $13.21 $12.40
End of period $9.30 $14.58 $15.20 $13.21
Accumulation units outstanding
at the end of period 7,576 9,636 6,158 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.69 $5.96 $5.56 $5.34
End of period $3.71 $6.69 $5.96 $5.56
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.56 $17.65 N/A N/A
End of period $9.04 $17.56 N/A N/A
Accumulation units outstanding
at the end of period 46,478 9,627 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.19 $13.08 $11.90 $10.37
End of period $7.95 $14.19 $13.08 $11.90
Accumulation units outstanding
at the end of period 3,326 3,337 3,344 2,280
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.73 $14.14 $12.34 $10.65
End of period $8.53 $14.73 $14.14 $12.34
Accumulation units outstanding
at the end of period 8,971 4,088 - -
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.88 $10.24 N/A N/A
End of period $10.26 $10.88 N/A N/A
Accumulation units outstanding
at the end of period 1,501 1,268 N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $14.40 $13.58 $13.40 $13.37
End of period $14.17 $14.40 $13.58 $13.40
Accumulation units outstanding
at the end of period 9,723 5,035 2,041 -
JNL/PPM America Core Equity Division(748)
Accumulation unit value:
Beginning of period $20.48 $22.53 $20.84 $18.79
End of period $11.94 $20.48 $22.53 $20.22
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $13.09 $13.51 $12.47 $12.43
End of period $8.88 $13.09 $13.51 $12.47
Accumulation units outstanding
at the end of period 160 - - -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $19.61 $21.21 $19.15 $18.44
End of period $10.14 $19.61 $21.21 $19.15
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.68 N/A N/A N/A
End of period $6.64 N/A N/A N/A
Accumulation units outstanding
at the end of period 12,037 N/A N/A N/A
JNL/S&P Competitive Advantage
Division(1458)
Accumulation unit value:
Beginning of period $9.91 $10.10 N/A N/A
End of period $6.85 $9.91 N/A N/A
Accumulation units outstanding
at the end of period 20,541 20,783 N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.46 $10.48 N/A N/A
End of period $6.69 $10.46 N/A N/A
Accumulation units outstanding
at the end of period 2,868 3,012 N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period $8.34 N/A N/A N/A
End of period $7.08 N/A N/A N/A
Accumulation units outstanding
at the end of period 856 N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.63 $14.61 $12.90 $11.90
End of period $9.32 $15.63 $14.61 $12.90
Accumulation units outstanding
at the end of period 46,648 28,799 - -
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.52 $11.06 $10.47 $10.26
End of period $9.73 $11.52 $11.06 $10.47
Accumulation units outstanding
at the end of period 10,460 10,583 - -
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $15.50 $14.55 $13.01 $12.38
End of period $9.82 $15.50 $14.55 $13.01
Accumulation units outstanding
at the end of period 5,158 2,678 2,695 2,712
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(748)
Accumulation unit value:
Beginning of period $12.32 $11.67 $10.79 $10.39
End of period $9.50 $12.32 $11.67 $10.79
Accumulation units outstanding
at the end of period 2,697 2,265 2,268 -
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.72 $13.83 $12.58 $12.13
End of period $10.46 $14.72 $13.83 $12.58
Accumulation units outstanding
at the end of period 42,633 31,548 18,170 18,563
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period $6.48 N/A N/A N/A
End of period $6.34 N/A N/A N/A
Accumulation units outstanding
at the end of period 448 N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $26.18 $24.86 $22.33 $21.39
End of period $20.34 $26.18 $24.86 $22.33
Accumulation units outstanding
at the end of period 10,154 9,687 9,780 -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $12.16 $11.85 $11.57 $11.49
End of period $12.17 $12.16 $11.85 $11.57
Accumulation units outstanding
at the end of period - 238 - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.50 $20.35 $17.17 $16.05
End of period $14.04 $21.50 $20.35 $17.17
Accumulation units outstanding
at the end of period 520 900 264 -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $30.27 $28.06 $25.19 $23.79
End of period $16.95 $30.27 $28.06 $25.19
Accumulation units outstanding
at the end of period - 359 - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $42.24 $36.78 $35.15 $30.51
End of period $24.56 $42.24 $36.78 $35.15
Accumulation units outstanding
at the end of period 2,597 735 - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.50 $15.69 $13.34 $12.60
End of period $9.04 $15.50 $15.69 $13.34
Accumulation units outstanding
at the end of period 13,526 13,535 11,935 -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.05%
[Enlarge/Download Table]
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(781)
Accumulation unit value:
Beginning of period $12.84 $15.42 $11.54 $11.32
End of period $8.09 $12.84 $15.42 $11.54
Accumulation units outstanding
at the end of period 2,622 1,460 2,610 1,572
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.74 $16.49 $13.73 $12.36
End of period $10.26 $17.74 $16.49 $13.73
Accumulation units outstanding
at the end of period - 321 320 -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.79 $12.16 $11.51 $10.82
End of period $8.42 $13.79 $12.16 $11.51
Accumulation units outstanding
at the end of period 1,645 - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.19 $13.92 $12.41 $11.32
End of period $8.97 $15.19 $13.92 $12.41
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.24 $11.58 $10.67 $9.78
End of period $8.60 $12.24 $11.58 $10.67
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $28.56 $24.16 $23.34 $21.14
End of period $16.09 $28.56 $24.16 $21.77
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $27.71 $25.78 $25.96 $24.03
End of period $16.05 $27.71 $25.78 $25.15
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.63 $12.09 N/A N/A
End of period $6.51 $13.63 N/A N/A
Accumulation units outstanding
at the end of period 8,445 2,748 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.89 $18.16 $16.50 $16.06
End of period $10.68 $17.89 $18.16 $16.50
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $24.07 $21.92 $18.63 $17.79
End of period $14.55 $24.07 $21.92 $18.63
Accumulation units outstanding
at the end of period 1,002 171 - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.89 $10.10 N/A N/A
End of period $6.19 $9.89 N/A N/A
Accumulation units outstanding
at the end of period 1,525 1,496 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1179)
Accumulation unit value:
Beginning of period $10.81 $10.83 $10.50 N/A
End of period $7.44 $10.81 $10.83 N/A
Accumulation units outstanding
at the end of period - - 1,103 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.71 N/A N/A N/A
End of period $5.98 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,308 N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period $11.54 $12.55 $10.88 $10.49
End of period $7.56 $11.54 $12.55 $10.88
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $18.92 $18.04 $17.59 $17.59
End of period $17.57 $18.92 $18.04 $17.59
Accumulation units outstanding
at the end of period 4,574 4,939 5,083 5,184
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.83 $12.74 $11.24 $10.75
End of period $8.03 $12.83 $12.74 $11.24
Accumulation units outstanding
at the end of period 1,177 - - -
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period $10.57 N/A N/A N/A
End of period $9.62 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,211 N/A N/A N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $16.49 $15.04 $11.63 $11.12
End of period $8.97 $16.49 $15.04 $11.63
Accumulation units outstanding
at the end of period 3,069 3,426 3,081 3,199
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.83 $22.53 $20.53 $19.40
End of period $12.97 $23.83 $22.53 $20.53
Accumulation units outstanding
at the end of period - 166 - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(781)
Accumulation unit value:
Beginning of period $15.47 $14.85 $14.68 $14.69
End of period $16.15 $15.47 $14.85 $14.68
Accumulation units outstanding
at the end of period 660 915 855 609
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period $14.00 $13.41 N/A N/A
End of period $6.85 $14.00 N/A N/A
Accumulation units outstanding
at the end of period 3,678 192 N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $18.83 $19.74 $17.58 $16.65
End of period $11.26 $18.83 $19.74 $17.58
Accumulation units outstanding
at the end of period 963 860 1,023 1,044
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.99 $16.42 $14.35 $13.42
End of period $9.02 $14.99 $16.42 $14.35
Accumulation units outstanding
at the end of period - - - -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.53 $12.12 $11.62 N/A
End of period $7.32 $11.53 $12.12 N/A
Accumulation units outstanding
at the end of period 2,269 3,007 6,425 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.52 $11.05 $10.88 $10.89
End of period $11.70 $11.52 $11.05 $10.88
Accumulation units outstanding
at the end of period 6,634 7,478 8,733 7,248
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.94 $5.81 $4.99 $4.33
End of period $3.51 $5.94 $5.81 $4.36
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.54 $9.38 $8.19 $7.93
End of period $5.81 $9.54 $9.38 $8.19
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.48 $14.18 $12.20 $11.51
End of period $5.55 $11.48 $14.18 $12.20
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $12.06 $11.44 $10.99 $10.28
End of period $9.07 $12.06 $11.44 $10.99
Accumulation units outstanding
at the end of period 109 3,884 3,522 3,620
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.71 $18.22 $14.81 $13.70
End of period $11.02 $19.71 $18.22 $14.81
Accumulation units outstanding
at the end of period 10,870 9,000 10,412 9,850
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.66 $13.75 $11.81 $11.28
End of period $7.69 $13.66 $13.75 $11.81
Accumulation units outstanding
at the end of period 56,012 61,079 39,999 34,033
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period $11.19 N/A N/A N/A
End of period $6.10 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,210 N/A N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $35.38 $26.69 $22.56 $20.59
End of period $21.54 $35.38 $26.69 $22.56
Accumulation units outstanding
at the end of period - 236 185 164
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.66 $14.88 $13.84 $12.95
End of period $9.58 $15.66 $14.88 $13.84
Accumulation units outstanding
at the end of period 8,311 8,822 9,444 8,447
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $12.22 $11.89 $10.55 $10.42
End of period $7.46 $12.22 $11.89 $10.55
Accumulation units outstanding
at the end of period 7,493 10,731 11,416 10,125
JNL/MCM S&P SMid 60 Division(1333)
Accumulation unit value:
Beginning of period $8.81 $10.21 N/A N/A
End of period $6.02 $8.81 N/A N/A
Accumulation units outstanding
at the end of period - 2,152 N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.90 $20.08 N/A N/A
End of period $10.51 $17.90 N/A N/A
Accumulation units outstanding
at the end of period 1,550 1,625 N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.58 $15.20 $13.21 $12.75
End of period $9.29 $14.58 $15.20 $13.21
Accumulation units outstanding
at the end of period 5,961 8,823 7,025 6,029
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.68 $5.96 $5.56 $5.06
End of period $3.70 $6.68 $5.96 $5.56
Accumulation units outstanding
at the end of period - 737 764 738
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.55 $17.65 N/A N/A
End of period $9.04 $17.55 N/A N/A
Accumulation units outstanding
at the end of period 78 312 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.19 $13.08 $11.90 $10.88
End of period $7.95 $14.19 $13.08 $11.90
Accumulation units outstanding
at the end of period 3,280 4,885 4,465 4,215
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $14.72 $14.14 $12.34 $11.01
End of period $8.53 $14.72 $14.14 $12.34
Accumulation units outstanding
at the end of period 703 670 691 728
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $11.01 N/A N/A N/A
End of period $10.26 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,292 N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.40 $13.58 $13.39 $13.36
End of period $14.16 $14.40 $13.58 $13.39
Accumulation units outstanding
at the end of period 3,891 4,832 3,724 4,493
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(781)
Accumulation unit value:
Beginning of period $13.08 $13.50 $12.47 $12.63
End of period $8.87 $13.08 $13.50 $12.47
Accumulation units outstanding
at the end of period 862 2,780 2,781 2,883
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.62 $14.60 $12.90 $11.90
End of period $9.31 $15.62 $14.60 $12.90
Accumulation units outstanding
at the end of period 636 666 - -
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.52 $11.06 $10.47 $10.26
End of period $9.73 $11.52 $11.06 $10.47
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $15.49 $14.55 $13.01 $12.13
End of period $9.81 $15.49 $14.55 $13.01
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.31 $11.67 $10.79 $10.52
End of period $9.50 $12.31 $11.67 $10.79
Accumulation units outstanding
at the end of period 472 473 473 474
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.72 $13.83 $12.60 $11.90
End of period $10.45 $14.72 $13.83 $12.60
Accumulation units outstanding
at the end of period 10,872 - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period $11.03 $10.87 N/A N/A
End of period $8.85 $11.03 N/A N/A
Accumulation units outstanding
at the end of period 440 480 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $26.17 $24.85 $22.32 $22.00
End of period $20.32 $26.17 $24.85 $22.32
Accumulation units outstanding
at the end of period 1,963 2,110 850 2,681
JNL/Select Money Market Division(781)
Accumulation unit value:
Beginning of period $12.15 $11.84 $11.56 $11.49
End of period $12.17 $12.15 $11.84 $11.56
Accumulation units outstanding
at the end of period 4,309 585 - 1,995
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.49 $20.34 $17.17 $16.04
End of period $14.04 $21.49 $20.34 $17.17
Accumulation units outstanding
at the end of period 670 - - -
JNL/T.Rowe Price Established Growth
Division(781)
Accumulation unit value:
Beginning of period $30.25 $28.05 $25.18 $23.90
End of period $16.94 $30.25 $28.05 $25.18
Accumulation units outstanding
at the end of period 300 301 301 301
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $42.23 $36.78 $35.15 $31.31
End of period $24.56 $42.23 $36.78 $35.15
Accumulation units outstanding
at the end of period 946 467 604 474
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $15.49 $15.68 $13.34 $13.03
End of period $9.04 $15.49 $15.68 $13.34
Accumulation units outstanding
at the end of period 1,438 1,383 1,412 1,418
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.07%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(1002)
Accumulation unit value:
Beginning of period $12.83 $15.42 $12.27 N/A
End of period $8.08 $12.83 $15.42 N/A
Accumulation units outstanding
at the end of period 9,852 5,171 3,112 N/A
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.69 $16.45 $13.70 $12.34
End of period $10.24 $17.69 $16.45 $13.70
Accumulation units outstanding
at the end of period 14,112 7,798 2,928 -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.78 $12.15 $11.50 $10.82
End of period $8.41 $13.78 $12.15 $11.50
Accumulation units outstanding
at the end of period 9,604 4,765 4,493 -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.17 $13.91 $12.40 $11.31
End of period $8.96 $15.17 $13.91 $12.40
Accumulation units outstanding
at the end of period 9,172 5,551 3,790 -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.23 $11.56 $10.66 $9.77
End of period $8.59 $12.23 $11.56 $10.66
Accumulation units outstanding
at the end of period 8,269 468 - -
JNL/Capital Guardian Global Diversified
Research Division(1072)
Accumulation unit value:
Beginning of period $28.49 $24.11 $22.81 N/A
End of period $16.05 $28.49 $24.11 N/A
Accumulation units outstanding
at the end of period 2,267 - - N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period $9.15 N/A N/A N/A
End of period $4.45 N/A N/A N/A
Accumulation units outstanding
at the end of period 4,288 N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $27.64 $25.72 $25.10 $23.98
End of period $16.01 $27.64 $25.72 $25.10
Accumulation units outstanding
at the end of period 641 - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.63 $10.79 N/A N/A
End of period $6.51 $13.63 N/A N/A
Accumulation units outstanding
at the end of period 27,889 8,638 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $9.46 N/A N/A N/A
End of period $6.49 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,836 N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.85 $18.12 $16.47 $16.04
End of period $10.66 $17.85 $18.12 $16.47
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $24.01 $21.88 $18.59 $17.77
End of period $14.52 $24.01 $21.88 $18.59
Accumulation units outstanding
at the end of period 1,842 1,136 78 -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.89 $10.04 N/A N/A
End of period $6.19 $9.89 N/A N/A
Accumulation units outstanding
at the end of period 88,257 49,474 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1093)
Accumulation unit value:
Beginning of period $10.80 $10.83 $9.88 N/A
End of period $7.43 $10.80 $10.83 N/A
Accumulation units outstanding
at the end of period 50,355 22,782 5,999 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.70 N/A N/A N/A
End of period $5.98 N/A N/A N/A
Accumulation units outstanding
at the end of period 4,844 N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(781)
Accumulation unit value:
Beginning of period $11.53 $12.54 $10.88 $10.52
End of period $7.55 $11.53 $12.54 $10.88
Accumulation units outstanding
at the end of period 12,073 4,681 1,831 1,079
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $18.87 $18.00 $17.56 $17.55
End of period $17.52 $18.87 $18.00 $17.56
Accumulation units outstanding
at the end of period 4,059 2,732 1,242 888
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division(1021)
Accumulation unit value:
Beginning of period $12.82 $12.74 $11.61 N/A
End of period $8.03 $12.82 $12.74 N/A
Accumulation units outstanding
at the end of period 8,271 4,701 3,231 N/A
JNL/Goldman Sachs Short Duration
Bond Division(1110)
Accumulation unit value:
Beginning of period $10.44 $10.17 $9.99 N/A
End of period $9.62 $10.44 $10.17 N/A
Accumulation units outstanding
at the end of period 4,567 1,992 2,009 N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $16.46 $15.01 $11.61 $10.33
End of period $8.95 $16.46 $15.01 $11.61
Accumulation units outstanding
at the end of period 12,344 9,056 3,106 631
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.77 $22.48 $20.48 $19.36
End of period $12.94 $23.77 $22.48 $20.48
Accumulation units outstanding
at the end of period 43 - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.44 $14.81 $14.65 $14.68
End of period $16.11 $15.44 $14.81 $14.65
Accumulation units outstanding
at the end of period 13,029 9,346 199 -
JNL/Lazard Emerging Markets Division(1122)
Accumulation unit value:
Beginning of period $13.99 $10.84 $8.98 N/A
End of period $6.85 $13.99 $10.84 N/A
Accumulation units outstanding
at the end of period 18,322 5,613 502 N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.79 $19.70 $17.55 $16.11
End of period $11.23 $18.79 $19.70 $17.55
Accumulation units outstanding
at the end of period 2,065 2,384 1,358 -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.97 $16.40 $14.33 $13.40
End of period $9.00 $14.97 $16.40 $14.33
Accumulation units outstanding
at the end of period 2,745 2,521 1,009 -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1379)
Accumulation unit value:
Beginning of period $9.78 $9.51 N/A N/A
End of period $6.11 $9.78 N/A N/A
Accumulation units outstanding
at the end of period 67,116 37,558 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.51 $12.10 $11.61 N/A
End of period $7.31 $11.51 $12.10 N/A
Accumulation units outstanding
at the end of period 6,819 1,112 1,106 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.50 $11.04 $10.87 $10.91
End of period $11.68 $11.50 $11.04 $10.87
Accumulation units outstanding
at the end of period 1,754 5,194 3,612 -
JNL/MCM Communications Sector
Division(781)
Accumulation unit value:
Beginning of period $5.93 $5.80 $4.35 $4.24
End of period $3.50 $5.93 $5.80 $4.35
Accumulation units outstanding
at the end of period 12,113 7,372 1,341 1,341
JNL/MCM Consumer Brands Sector
Division(781)
Accumulation unit value:
Beginning of period $10.08 $11.18 $10.06 $9.63
End of period $6.79 $10.08 $11.18 $10.06
Accumulation units outstanding
at the end of period 4,580 590 590 590
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.36 $11.00 N/A N/A
End of period $5.14 $10.36 N/A N/A
Accumulation units outstanding
at the end of period 63,918 61,302 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(781)
Accumulation unit value:
Beginning of period $9.52 $9.37 $8.18 $7.73
End of period $5.80 $9.52 $9.37 $8.18
Accumulation units outstanding
at the end of period 1,611 513 - 2,900
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $11.46 $14.16 $12.18 $11.50
End of period $5.54 $11.46 $14.16 $12.18
Accumulation units outstanding
at the end of period 39,256 22,471 2,376 585
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $12.04 $11.43 $10.98 $10.50
End of period $9.06 $12.04 $11.43 $10.98
Accumulation units outstanding
at the end of period 12,017 5,031 3,195 286
JNL/MCM Index 5 Division(1313)
Accumulation unit value:
Beginning of period $9.86 $10.14 N/A N/A
End of period $6.77 $9.86 N/A N/A
Accumulation units outstanding
at the end of period 15,852 16,504 N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.68 $18.20 $14.80 $13.01
End of period $11.00 $19.68 $18.20 $14.80
Accumulation units outstanding
at the end of period 11,544 8,772 5,808 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.65 $13.74 $11.81 $11.28
End of period $7.68 $13.65 $13.74 $11.81
Accumulation units outstanding
at the end of period 553,862 441,655 178,024 4,988
JNL/MCM JNL Optimized 5 Division(1094)
Accumulation unit value:
Beginning of period $11.89 $10.69 $9.06 N/A
End of period $6.28 $11.89 $10.69 N/A
Accumulation units outstanding
at the end of period 114,747 89,094 12,934 N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.55 $12.17 N/A N/A
End of period $7.19 $12.55 N/A N/A
Accumulation units outstanding
at the end of period 1,650 4,324 N/A N/A
JNL/MCM NYSE International 25
Division(1467)
Accumulation unit value:
Beginning of period $11.52 $11.55 N/A N/A
End of period $6.10 $11.52 N/A N/A
Accumulation units outstanding
at the end of period 7,281 3,829 N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $35.32 $26.66 $22.53 $20.57
End of period $21.50 $35.32 $26.66 $22.53
Accumulation units outstanding
at the end of period 12,010 3,663 1,814 324
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period $6.75 N/A N/A N/A
End of period $7.05 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,961 N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.64 $14.86 $13.83 $12.94
End of period $9.56 $15.64 $14.86 $13.83
Accumulation units outstanding
at the end of period 6,620 9,310 3,968 520
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.20 $11.88 $10.54 $10.17
End of period $7.45 $12.20 $11.88 $10.54
Accumulation units outstanding
at the end of period 31,846 9,289 4,552 -
JNL/MCM S&P SMid 60 Division(1376)
Accumulation unit value:
Beginning of period $8.81 $9.07 N/A N/A
End of period $6.02 $8.81 N/A N/A
Accumulation units outstanding
at the end of period 2,555 2,548 N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.87 $20.05 N/A N/A
End of period $10.49 $17.87 N/A N/A
Accumulation units outstanding
at the end of period 3,267 4,215 N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.56 $15.19 $13.19 $12.74
End of period $9.28 $14.56 $15.19 $13.19
Accumulation units outstanding
at the end of period 7,669 9,390 4,559 304
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.67 $5.95 $5.55 $5.29
End of period $3.70 $6.67 $5.95 $5.55
Accumulation units outstanding
at the end of period 43,124 7,957 6,240 558
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.54 $17.64 N/A N/A
End of period $9.03 $17.54 N/A N/A
Accumulation units outstanding
at the end of period 33,487 37,933 N/A N/A
JNL/MCM VIP Division(748)
Accumulation unit value:
Beginning of period $14.18 $13.07 $11.90 $10.83
End of period $7.95 $14.18 $13.07 $11.90
Accumulation units outstanding
at the end of period 43,829 18,080 5,164 -
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $14.70 $14.12 $12.32 $11.00
End of period $8.52 $14.70 $14.12 $12.32
Accumulation units outstanding
at the end of period 12,852 27,989 6,709 917
JNL/PAM Asia ex-Japan Division(1833)
Accumulation unit value:
Beginning of period $7.94 N/A N/A N/A
End of period $4.78 N/A N/A N/A
Accumulation units outstanding
at the end of period 10,616 N/A N/A N/A
JNL/PAM China-India Division(1788)
Accumulation unit value:
Beginning of period $8.27 N/A N/A N/A
End of period $4.14 N/A N/A N/A
Accumulation units outstanding
at the end of period 15,513 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.87 $10.26 N/A N/A
End of period $10.25 $10.87 N/A N/A
Accumulation units outstanding
at the end of period 9,928 819 N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.37 $13.55 $13.37 $13.34
End of period $14.13 $14.37 $13.55 $13.37
Accumulation units outstanding
at the end of period 25,319 12,801 13,923 1,367
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $13.05 $13.47 $12.44 $12.41
End of period $8.85 $13.05 $13.47 $12.44
Accumulation units outstanding
at the end of period 30,156 2,425 1,991 -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(1019)
Accumulation unit value:
Beginning of period $19.55 $21.15 $19.66 N/A
End of period $10.11 $19.55 $21.15 N/A
Accumulation units outstanding
at the end of period - 243 - N/A
JNL/Red Rocks Listed Private Equity
Division(1918)
Accumulation unit value:
Beginning of period $8.32 N/A N/A N/A
End of period $5.92 N/A N/A N/A
Accumulation units outstanding
at the end of period 8,419 N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.45 N/A N/A N/A
End of period $6.64 N/A N/A N/A
Accumulation units outstanding
at the end of period 33,098 N/A N/A N/A
JNL/S&P Competitive Advantage
Division(1458)
Accumulation unit value:
Beginning of period $9.91 $10.10 N/A N/A
End of period $6.85 $9.91 N/A N/A
Accumulation units outstanding
at the end of period 28,851 16,589 N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period $10.44 $11.08 N/A N/A
End of period $6.22 $10.44 N/A N/A
Accumulation units outstanding
at the end of period 118 104 N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period $10.49 $10.77 N/A N/A
End of period $7.54 $10.49 N/A N/A
Accumulation units outstanding
at the end of period 66,373 60,361 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.46 $10.42 N/A N/A
End of period $6.68 $10.46 N/A N/A
Accumulation units outstanding
at the end of period 27,360 6,602 N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period $6.58 N/A N/A N/A
End of period $7.08 N/A N/A N/A
Accumulation units outstanding
at the end of period 760 N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period $5.30 N/A N/A N/A
End of period $6.22 N/A N/A N/A
Accumulation units outstanding
at the end of period 373 N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.59 $14.58 $12.88 $11.88
End of period $9.29 $15.59 $14.58 $12.88
Accumulation units outstanding
at the end of period 47,238 48,126 11,893 -
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.51 $11.06 $10.46 $10.26
End of period $9.72 $11.51 $11.06 $10.46
Accumulation units outstanding
at the end of period 19,397 11,629 - -
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $15.46 $14.52 $12.99 $12.36
End of period $9.79 $15.46 $14.52 $12.99
Accumulation units outstanding
at the end of period 67,673 46,911 15,197 293
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period $12.47 $11.82 $10.94 $10.42
End of period $9.62 $12.47 $11.82 $10.94
Accumulation units outstanding
at the end of period 75,954 17,756 8,178 -
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.69 $13.80 $12.56 $12.11
End of period $10.43 $14.69 $13.80 $12.56
Accumulation units outstanding
at the end of period 79,060 157,874 78,025 18,294
JNL/S&P Retirement 2015 Division(1058)
Accumulation unit value:
Beginning of period $11.54 $10.79 $10.24 N/A
End of period $7.90 $11.54 $10.79 N/A
Accumulation units outstanding
at the end of period 356 397 397 N/A
JNL/S&P Retirement 2020 Division(1064)
Accumulation unit value:
Beginning of period $11.70 $10.91 $10.49 N/A
End of period $7.64 $11.70 $10.91 N/A
Accumulation units outstanding
at the end of period 4,081 4,498 787 N/A
JNL/S&P Retirement 2025 Division(1197)
Accumulation unit value:
Beginning of period $11.84 $10.98 $10.81 N/A
End of period $7.46 $11.84 $10.98 N/A
Accumulation units outstanding
at the end of period 1,197 1,213 970 N/A
JNL/S&P Retirement Income Division(1117)
Accumulation unit value:
Beginning of period $11.03 $10.53 $9.84 N/A
End of period $8.84 $11.03 $10.53 N/A
Accumulation units outstanding
at the end of period 830 - 1,030 N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $26.10 $24.79 $22.27 $21.34
End of period $20.27 $26.10 $24.79 $22.27
Accumulation units outstanding
at the end of period 6,244 3,578 3,579 -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $12.12 $11.81 $11.54 $11.47
End of period $12.13 $12.12 $11.81 $11.54
Accumulation units outstanding
at the end of period 3,067 3,820 57,874 -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.47 $20.33 $17.16 $16.04
End of period $14.02 $21.47 $20.33 $17.16
Accumulation units outstanding
at the end of period 55,150 520 281 -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $30.18 $27.98 $25.12 $23.73
End of period $16.89 $30.18 $27.98 $25.12
Accumulation units outstanding
at the end of period 4,062 3,042 2,126 -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $42.12 $36.69 $35.08 $30.45
End of period $24.49 $42.12 $36.69 $35.08
Accumulation units outstanding
at the end of period 3,723 1,349 1,331 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.47 $15.66 $13.32 $12.58
End of period $9.02 $15.47 $15.66 $13.32
Accumulation units outstanding
at the end of period 4,240 4,185 3,432 -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.145%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division(1361)
Accumulation unit value:
Beginning of period $13.62 $13.44 N/A N/A
End of period $6.50 $13.62 N/A N/A
Accumulation units outstanding
at the end of period 14,164 10,099 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL 5 Division(1224)
Accumulation unit value:
Beginning of period $13.62 $13.63 N/A N/A
End of period $7.66 $13.62 N/A N/A
Accumulation units outstanding
at the end of period - 4,934 N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(1224)
Accumulation unit value:
Beginning of period $15.47 $14.48 N/A N/A
End of period $9.22 $15.47 N/A N/A
Accumulation units outstanding
at the end of period - 76,271 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period $15.24 N/A N/A N/A
End of period $9.71 N/A N/A N/A
Accumulation units outstanding
at the end of period 75,435 N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.15%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(1169)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.51 $16.30 $13.59 $12.24
End of period $10.12 $17.51 $16.30 $13.59
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.10 $13.85 $12.36 $11.28
End of period $8.91 $15.10 $13.85 $12.36
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.16 $11.51 $10.61 $9.74
End of period $8.53 $12.16 $11.51 $10.61
Accumulation units outstanding
at the end of period 1,795 - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $27.36 $25.48 $24.89 $23.80
End of period $15.83 $27.36 $25.48 $24.89
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.69 $17.97 $16.34 $15.93
End of period $10.55 $17.69 $17.97 $16.34
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $23.80 $21.69 $18.46 $17.65
End of period $14.37 $23.80 $21.69 $18.46
Accumulation units outstanding
at the end of period - - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $18.68 $17.84 $17.41 $17.41
End of period $17.33 $18.68 $17.84 $17.41
Accumulation units outstanding
at the end of period 3,124 3,425 3,421 3,501
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $16.33 $14.91 $11.54 $9.75
End of period $8.87 $16.33 $14.91 $11.54
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.53 $22.27 $20.31 $19.21
End of period $12.79 $23.53 $22.27 $20.31
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.28 $14.68 $14.52 $14.57
End of period $15.93 $15.28 $14.68 $14.52
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $18.64 $19.56 $17.45 $16.53
End of period $11.14 $18.64 $19.56 $17.45
Accumulation units outstanding
at the end of period 977 493 335 326
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.85 $16.28 $14.24 $13.33
End of period $8.93 $14.85 $16.28 $14.24
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.44 $12.03 $11.54 N/A
End of period $7.25 $11.44 $12.03 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.45 $10.99 $10.84 $10.85
End of period $11.62 $11.45 $10.99 $10.84
Accumulation units outstanding
at the end of period 1,157 620 545 520
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.45 $9.31 $8.14 $7.88
End of period $5.76 $9.45 $9.31 $8.14
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $11.96 $11.36 $10.92 $10.26
End of period $8.99 $11.96 $11.36 $10.92
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.59 $18.13 $14.75 $13.66
End of period $10.94 $19.59 $18.13 $14.75
Accumulation units outstanding
at the end of period 775 335 371 419
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.62 $13.72 $11.79 $10.79
End of period $7.66 $13.62 $13.72 $11.79
Accumulation units outstanding
at the end of period 40,602 35,904 36,204 36,691
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period $38.55 N/A N/A N/A
End of period $21.33 N/A N/A N/A
Accumulation units outstanding
at the end of period 222 N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.57 $14.80 $13.79 $12.25
End of period $9.51 $15.57 $14.80 $13.79
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.15 $11.83 $10.50 $10.15
End of period $7.41 $12.15 $11.83 $10.50
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.49 $15.12 $13.15 $12.36
End of period $9.23 $14.49 $15.12 $13.15
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.50 $17.59 N/A N/A
End of period $9.00 $17.50 N/A N/A
Accumulation units outstanding
at the end of period 22,416 22,416 N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.63 $14.06 $12.28 $10.61
End of period $8.47 $14.63 $14.06 $12.28
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.26 $13.46 $13.29 $13.26
End of period $14.01 $14.26 $13.46 $13.29
Accumulation units outstanding
at the end of period 641 510 221 212
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(781)
Accumulation unit value:
Beginning of period $12.95 $13.38 $12.37 $12.54
End of period $8.78 $12.95 $13.38 $12.37
Accumulation units outstanding
at the end of period 791 525 231 226
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $19.35 $20.95 $18.94 $18.26
End of period $10.00 $19.35 $20.95 $18.94
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.47 $14.48 $12.80 $11.82
End of period $9.21 $15.47 $14.48 $12.80
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.48 $11.04 $10.45 $10.26
End of period $9.69 $11.48 $11.04 $10.45
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $15.34 $14.42 $12.91 $12.05
End of period $9.71 $15.34 $14.42 $12.91
Accumulation units outstanding
at the end of period 1,419 1,369 - -
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.57 $13.71 $12.48 $12.04
End of period $10.34 $14.57 $13.71 $12.48
Accumulation units outstanding
at the end of period 2,454 1,159 1,160 1,157
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $25.84 $24.56 $22.08 $21.79
End of period $20.05 $25.84 $24.56 $22.08
Accumulation units outstanding
at the end of period 1,368 646 644 649
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $12.00 $11.71 $11.44 $11.38
End of period $12.00 $12.00 $11.71 $11.44
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.38 $20.26 $17.12 $16.01
End of period $13.95 $21.38 $20.26 $17.12
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(781)
Accumulation unit value:
Beginning of period $29.87 $27.72 $24.91 $23.66
End of period $16.71 $29.87 $27.72 $24.91
Accumulation units outstanding
at the end of period 504 223 239 231
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $41.70 $36.35 $34.78 $30.22
End of period $24.22 $41.70 $36.35 $34.78
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.38 $15.58 $13.26 $12.54
End of period $8.96 $15.38 $15.58 $13.26
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.21%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(781)
Accumulation unit value:
Beginning of period $12.79 $15.38 $11.53 $10.14
End of period $8.04 $12.79 $15.38 $11.53
Accumulation units outstanding
at the end of period 6,664 7,469 2,958 1,734
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.38 $16.19 $13.50 $12.17
End of period $10.04 $17.38 $16.19 $13.50
Accumulation units outstanding
at the end of period 963 612 - -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.66 $12.06 $11.43 $10.77
End of period $8.33 $13.66 $12.06 $11.43
Accumulation units outstanding
at the end of period 2,768 512 - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.04 $13.81 $12.33 $11.26
End of period $8.87 $15.04 $13.81 $12.33
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.09 $11.46 $10.57 $9.71
End of period $8.48 $12.09 $11.46 $10.57
Accumulation units outstanding
at the end of period 52 - - -
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $27.99 $23.70 $21.39 $20.80
End of period $15.75 $27.99 $23.70 $21.39
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.61 $11.95 N/A N/A
End of period $6.49 $13.61 N/A N/A
Accumulation units outstanding
at the end of period 11,121 6,332 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $9.28 N/A N/A N/A
End of period $6.48 N/A N/A N/A
Accumulation units outstanding
at the end of period 5,646 N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.57 $17.86 $16.25 $15.85
End of period $10.48 $17.57 $17.86 $16.25
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period $20.73 N/A N/A N/A
End of period $14.27 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,008 N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.88 $9.80 N/A N/A
End of period $6.17 $9.88 N/A N/A
Accumulation units outstanding
at the end of period 17,359 2,493 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1123)
Accumulation unit value:
Beginning of period $10.78 $10.82 $10.15 N/A
End of period $7.41 $10.78 $10.82 N/A
Accumulation units outstanding
at the end of period 3,619 921 - N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.69 N/A N/A N/A
End of period $5.96 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,671 N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(1115)
Accumulation unit value:
Beginning of period $11.33 N/A N/A N/A
End of period $7.52 N/A N/A N/A
Accumulation units outstanding
at the end of period 729 N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $18.54 $17.71 $17.30 $17.21
End of period $17.19 $18.54 $17.71 $17.30
Accumulation units outstanding
at the end of period 1,371 1,129 - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.77 $12.71 $11.22 $9.98
End of period $7.99 $12.77 $12.71 $11.22
Accumulation units outstanding
at the end of period 4,918 2,641 - -
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period $10.44 N/A N/A N/A
End of period $9.58 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,855 N/A N/A N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $16.24 $14.83 $11.48 $11.47
End of period $8.81 $16.24 $14.83 $11.48
Accumulation units outstanding
at the end of period 6,419 10,376 4,688 2,993
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.16 $14.57 $14.43 $14.49
End of period $15.80 $15.16 $14.57 $14.43
Accumulation units outstanding
at the end of period 166 202 - -
JNL/Lazard Emerging Markets Division(1073)
Accumulation unit value:
Beginning of period $13.96 $10.83 $9.18 N/A
End of period $6.82 $13.96 $10.83 N/A
Accumulation units outstanding
at the end of period 6,168 9,388 634 N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.53 $19.46 $17.36 $15.95
End of period $11.07 $18.53 $19.46 $17.36
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.76 $16.19 $14.19 $13.27
End of period $8.87 $14.76 $16.19 $14.17
Accumulation units outstanding
at the end of period - - - -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1426)
Accumulation unit value:
Beginning of period $9.77 $10.34 N/A N/A
End of period $6.09 $9.77 N/A N/A
Accumulation units outstanding
at the end of period 8,111 6,939 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.38 $11.97 $11.50 N/A
End of period $7.21 $11.38 $11.97 N/A
Accumulation units outstanding
at the end of period - 4,358 2,888 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.41 $10.96 $10.81 $10.87
End of period $11.57 $11.41 $10.96 $10.81
Accumulation units outstanding
at the end of period - 1,252 - -
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.86 $5.74 $4.79 $4.29
End of period $3.46 $5.86 $5.74 $4.31
Accumulation units outstanding
at the end of period 2,238 1,273 - -
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.33 $10.97 N/A N/A
End of period $5.12 $10.33 N/A N/A
Accumulation units outstanding
at the end of period 3,408 6,289 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period $8.11 N/A N/A N/A
End of period $5.72 N/A N/A N/A
Accumulation units outstanding
at the end of period 394 N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.32 $14.01 $12.46 $11.41
End of period $5.47 $11.32 $14.01 $12.07
Accumulation units outstanding
at the end of period 4,514 502 - -
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.90 $11.31 $10.88 $10.42
End of period $8.94 $11.90 $11.31 $10.88
Accumulation units outstanding
at the end of period 4,244 2,110 2,887 3,386
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.52 $18.08 $14.72 $13.63
End of period $10.90 $19.52 $18.08 $14.72
Accumulation units outstanding
at the end of period 7,600 5,470 2,296 190
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.59 $13.70 $11.79 $11.27
End of period $7.64 $13.59 $13.70 $11.79
Accumulation units outstanding
at the end of period 202,277 120,818 62,889 1,319
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period $11.86 $11.36 N/A N/A
End of period $6.26 $11.86 N/A N/A
Accumulation units outstanding
at the end of period 25,029 13,864 N/A N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.49 $12.11 N/A N/A
End of period $7.15 $12.49 N/A N/A
Accumulation units outstanding
at the end of period 1,480 2,052 N/A N/A
JNL/MCM NYSE International 25
Division(1319)
Accumulation unit value:
Beginning of period $11.51 $10.33 N/A N/A
End of period $6.09 $11.51 N/A N/A
Accumulation units outstanding
at the end of period 6,879 8,069 N/A N/A
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $34.90 $26.38 $22.32 $16.86
End of period $21.21 $34.90 $26.38 $22.32
Accumulation units outstanding
at the end of period 2,190 1,588 - -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period $10.51 N/A N/A N/A
End of period $7.03 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,181 N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.51 $14.76 $13.76 $12.88
End of period $9.47 $15.51 $14.76 $13.76
Accumulation units outstanding
at the end of period 8,364 11,249 4,933 2,705
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.10 $11.80 $10.48 $10.13
End of period $7.38 $12.10 $11.80 $10.48
Accumulation units outstanding
at the end of period 3,811 1,047 1,054 -
JNL/MCM S&P SMid 60 Division(1319)
Accumulation unit value:
Beginning of period $8.80 $10.28 N/A N/A
End of period $6.00 $8.80 N/A N/A
Accumulation units outstanding
at the end of period 3,428 5,137 N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.65 $19.84 N/A N/A
End of period $10.35 $17.65 N/A N/A
Accumulation units outstanding
at the end of period 3,008 3,956 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.44 $15.08 $13.12 $12.34
End of period $9.19 $14.44 $15.08 $13.12
Accumulation units outstanding
at the end of period 1,799 4,186 793 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.59 $5.88 $5.50 $5.29
End of period $3.65 $6.59 $5.88 $5.50
Accumulation units outstanding
at the end of period 5,403 2,046 - -
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.46 $17.56 N/A N/A
End of period $8.98 $17.46 N/A N/A
Accumulation units outstanding
at the end of period 21,165 21,080 N/A N/A
JNL/MCM VIP Division(748)
Accumulation unit value:
Beginning of period $14.11 $13.03 $11.87 $10.83
End of period $7.90 $14.11 $13.03 $11.87
Accumulation units outstanding
at the end of period 233 - - -
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.57 $14.01 $12.10 $10.59
End of period $8.43 $14.57 $14.01 $12.24
Accumulation units outstanding
at the end of period - 469 - -
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division(1833)
Accumulation unit value:
Beginning of period $6.60 N/A N/A N/A
End of period $4.13 N/A N/A N/A
Accumulation units outstanding
at the end of period 390 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $11.18 N/A N/A N/A
End of period $10.22 N/A N/A N/A
Accumulation units outstanding
at the end of period 14,382 N/A N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $14.17 $13.39 $13.23 $13.22
End of period $13.92 $14.17 $13.39 $13.23
Accumulation units outstanding
at the end of period 4,455 - - -
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(781)
Accumulation unit value:
Beginning of period $12.87 $13.30 $12.31 $12.48
End of period $8.72 $12.87 $13.30 $12.31
Accumulation units outstanding
at the end of period 5,179 8,748 4,646 3,005
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.84 N/A N/A N/A
End of period $6.63 N/A N/A N/A
Accumulation units outstanding
at the end of period 12,418 N/A N/A N/A
JNL/S&P Competitive Advantage
Division(1458)
Accumulation unit value:
Beginning of period $9.91 $10.10 N/A N/A
End of period $6.84 $9.91 N/A N/A
Accumulation units outstanding
at the end of period 8,037 7,994 N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period $10.33 N/A N/A N/A
End of period $6.20 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,979 N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.38 N/A N/A N/A
End of period $6.67 N/A N/A N/A
Accumulation units outstanding
at the end of period 5,350 N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.37 $14.40 $12.74 $11.77
End of period $9.15 $15.37 $14.40 $12.74
Accumulation units outstanding
at the end of period 5,727 4,569 3,125 -
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.46 $11.02 $10.45 $10.25
End of period $9.67 $11.46 $11.02 $10.45
Accumulation units outstanding
at the end of period 13,229 4,098 - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $15.25 $14.35 $12.85 $12.00
End of period $9.64 $15.25 $14.35 $12.85
Accumulation units outstanding
at the end of period 16,288 21,998 13,842 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(748)
Accumulation unit value:
Beginning of period $12.25 $11.63 $10.77 $10.38
End of period $9.44 $12.25 $11.63 $10.77
Accumulation units outstanding
at the end of period 87,282 3,330 - -
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.49 $13.63 $12.42 $11.48
End of period $10.27 $14.49 $13.63 $12.42
Accumulation units outstanding
at the end of period 78,795 19,158 3,305 1,662
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period $9.84 N/A N/A N/A
End of period $8.80 N/A N/A N/A
Accumulation units outstanding
at the end of period 50 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period $8.90 N/A N/A N/A
End of period $6.33 N/A N/A N/A
Accumulation units outstanding
at the end of period 68 N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $25.64 $24.39 $21.94 $21.05
End of period $19.88 $25.64 $24.39 $21.94
Accumulation units outstanding
at the end of period 753 - - -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.91 $11.62 $11.37 $11.31
End of period $11.90 $11.91 $11.62 $11.37
Accumulation units outstanding
at the end of period 4,991 9,629 - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.31 $20.21 $17.08 $15.99
End of period $13.90 $21.31 $20.21 $17.08
Accumulation units outstanding
at the end of period 2,249 366 - -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $29.65 $27.53 $24.75 $23.41
End of period $16.57 $29.65 $27.53 $24.75
Accumulation units outstanding
at the end of period 828 - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $41.38 $36.10 $33.27 $30.04
End of period $24.03 $41.38 $36.10 $34.56
Accumulation units outstanding
at the end of period 428 - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.30 $15.52 $13.22 $12.50
End of period $8.91 $15.30 $15.52 $13.22
Accumulation units outstanding
at the end of period - 810 - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.25%
[Enlarge/Download Table]
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.62 $12.04 $11.41 $10.75
End of period $8.30 $13.62 $12.04 $11.41
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $15.00 $13.78 $12.30 $11.25
End of period $8.84 $15.00 $13.78 $12.30
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(781)
Accumulation unit value:
Beginning of period $12.06 $11.43 $10.55 $10.00
End of period $8.46 $12.06 $11.43 $10.55
Accumulation units outstanding
at the end of period - 1,811 1,811 1,811
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $27.85 $23.61 $21.31 $20.73
End of period $15.66 $27.85 $23.61 $21.31
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $27.02 $25.19 $24.63 $23.57
End of period $15.62 $27.02 $25.19 $24.63
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $18.44 $17.63 $17.22 $17.15
End of period $17.10 $18.44 $17.63 $17.22
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $16.17 $14.77 $11.45 $9.68
End of period $8.78 $16.17 $14.77 $11.45
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.24 $22.01 $20.09 $19.03
End of period $12.62 $23.24 $22.01 $20.09
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.09 $14.51 $14.44 $14.50
End of period $15.72 $15.09 $14.51 $14.44
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $18.46 $19.39 $17.31 $16.41
End of period $11.02 $18.46 $19.39 $17.31
Accumulation units outstanding
at the end of period - - 177 175
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.70 $16.14 $14.14 $13.23
End of period $8.83 $14.70 $16.14 $14.14
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.34 $11.94 $11.47 N/A
End of period $7.18 $11.34 $11.94 N/A
Accumulation units outstanding
at the end of period - 548 545 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.38 $10.94 $10.79 $10.86
End of period $11.54 $11.38 $10.94 $10.79
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period $9.93 $11.03 $9.94 $10.40
End of period $6.67 $9.93 $11.03 $9.94
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.37 $9.24 $8.09 $7.84
End of period $5.70 $9.37 $9.24 $8.09
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.29 $13.97 $12.04 $11.39
End of period $5.45 $11.29 $13.97 $12.04
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $11.86 $11.27 $10.85 $10.20
End of period $8.90 $11.86 $11.27 $10.85
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.47 $18.04 $14.69 $12.94
End of period $10.87 $19.47 $18.04 $14.69
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.57 $13.69 $11.78 $11.27
End of period $7.63 $13.57 $13.69 $11.78
Accumulation units outstanding
at the end of period 3,295 6,500 5,703 5,884
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $34.78 $26.30 $22.26 $20.35
End of period $21.13 $34.78 $26.30 $22.26
Accumulation units outstanding
at the end of period - 224 224 224
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.47 $14.73 $13.73 $12.21
End of period $9.44 $15.47 $14.73 $13.73
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.07 $11.77 $10.46 $10.11
End of period $7.36 $12.07 $11.77 $10.46
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.59 $19.78 N/A N/A
End of period $10.31 $17.59 N/A N/A
Accumulation units outstanding
at the end of period - 348 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.40 $15.05 $13.10 $12.33
End of period $9.16 $14.40 $15.05 $13.10
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.57 $5.87 $5.49 $5.28
End of period $3.64 $6.57 $5.87 $5.49
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.44 $17.54 N/A N/A
End of period $8.96 $17.44 N/A N/A
Accumulation units outstanding
at the end of period - 468 N/A N/A
JNL/MCM VIP Division(748)
Accumulation unit value:
Beginning of period $14.09 $13.02 $11.87 $10.83
End of period $7.88 $14.09 $13.02 $11.87
Accumulation units outstanding
at the end of period - - - -
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.53 $13.98 $12.26 $10.57
End of period $8.40 $14.53 $13.98 $12.26
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.12 $13.34 $13.18 $13.17
End of period $13.86 $14.12 $13.34 $13.18
Accumulation units outstanding
at the end of period - - 243 222
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(781)
Accumulation unit value:
Beginning of period $12.82 $13.26 $12.27 $12.45
End of period $8.68 $12.82 $13.26 $12.27
Accumulation units outstanding
at the end of period - - 251 240
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $19.11 $20.71 $18.77 $18.11
End of period $9.86 $19.11 $20.71 $18.77
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.32 $14.35 $12.70 $11.74
End of period $9.11 $15.32 $14.35 $12.70
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.44 $11.01 $10.44 $10.25
End of period $9.65 $11.44 $11.01 $10.44
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $15.19 $14.30 $12.81 $12.20
End of period $9.60 $15.19 $14.30 $12.81
Accumulation units outstanding
at the end of period - - 1,420 1,425
JNL/S&P Managed Moderate Division(748)
Accumulation unit value:
Beginning of period $12.24 $11.62 $10.76 $10.38
End of period $9.42 $12.24 $11.62 $10.76
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.43 $13.59 $12.39 $11.74
End of period $10.23 $14.43 $13.59 $12.39
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $25.51 $24.28 $21.84 $20.97
End of period $19.77 $25.51 $24.28 $21.84
Accumulation units outstanding
at the end of period - - - -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.85 $11.57 $11.32 $11.27
End of period $11.84 $11.85 $11.57 $11.32
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.27 $20.17 $17.06 $15.97
End of period $13.86 $21.27 $20.17 $17.06
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $29.50 $27.40 $24.65 $23.32
End of period $16.48 $29.50 $27.40 $24.65
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $41.18 $35.93 $34.43 $29.95
End of period $23.90 $41.18 $35.93 $34.43
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.26 $15.48 $13.19 $12.48
End of period $8.88 $15.26 $15.48 $13.19
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.295%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(1030)
Accumulation unit value:
Beginning of period $12.75 $15.35 N/A N/A
End of period $8.01 $12.75 N/A N/A
Accumulation units outstanding
at the end of period 833 837 N/A N/A
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.19 $16.03 $13.37 $12.07
End of period $9.93 $17.19 $16.03 $13.37
Accumulation units outstanding
at the end of period - 327 - -
JNL/AIM Large Cap Growth Division(781)
Accumulation unit value:
Beginning of period $13.59 $12.01 $11.39 $10.88
End of period $8.28 $13.59 $12.01 $11.39
Accumulation units outstanding
at the end of period 1,649 1,062 683 683
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.96 $13.75 $12.29 $11.22
End of period $8.81 $14.96 $13.75 $12.29
Accumulation units outstanding
at the end of period 322 341 - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $12.02 $11.40 $10.53 $9.67
End of period $8.43 $12.02 $11.40 $10.53
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period $27.69 $23.48 $21.20 $20.30
End of period $15.56 $27.69 $23.48 $21.20
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.87 $25.06 $24.51 $23.47
End of period $15.52 $26.87 $25.06 $24.51
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.60 $12.60 N/A N/A
End of period $6.48 $13.60 N/A N/A
Accumulation units outstanding
at the end of period 36,250 6,352 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $10.48 N/A N/A N/A
End of period $6.46 N/A N/A N/A
Accumulation units outstanding
at the end of period 4,045 N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.40 $17.70 $16.12 $15.74
End of period $10.37 $17.40 $17.70 $16.12
Accumulation units outstanding
at the end of period 288 238 235 -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $23.41 $21.37 $18.21 $17.43
End of period $14.12 $23.41 $21.37 $18.21
Accumulation units outstanding
at the end of period - - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.87 $10.40 N/A N/A
End of period $6.16 $9.87 N/A N/A
Accumulation units outstanding
at the end of period 24,960 12,731 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1096)
Accumulation unit value:
Beginning of period $10.76 $10.81 $9.85 N/A
End of period $7.39 $10.76 $10.81 N/A
Accumulation units outstanding
at the end of period 10,777 10,714 4,719 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.80 $10.10 N/A N/A
End of period $5.95 $9.80 N/A N/A
Accumulation units outstanding
at the end of period 5,365 5,329 N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(1201)
Accumulation unit value:
Beginning of period $11.30 N/A N/A N/A
End of period $7.49 N/A N/A N/A
Accumulation units outstanding
at the end of period 341 N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $18.34 $17.54 $17.14 $17.07
End of period $16.99 $18.34 $17.54 $17.14
Accumulation units outstanding
at the end of period 1,663 1,100 552 -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.75 $12.69 $11.22 $10.96
End of period $7.96 $12.75 $12.69 $11.22
Accumulation units outstanding
at the end of period 4,742 4,799 - -
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period $10.43 N/A N/A N/A
End of period $9.56 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,155 N/A N/A N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $16.10 $14.72 $11.41 $10.17
End of period $8.73 $16.10 $14.72 $11.41
Accumulation units outstanding
at the end of period 3,706 3,411 374 374
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.10 $21.90 $20.00 $18.94
End of period $12.54 $23.10 $21.90 $20.00
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $15.01 $14.43 $14.30 $14.37
End of period $15.62 $15.01 $14.43 $14.30
Accumulation units outstanding
at the end of period 3,863 1,107 1,130 -
JNL/Lazard Emerging Markets Division(1087)
Accumulation unit value:
Beginning of period $13.94 $10.82 $8.37 N/A
End of period $6.81 $13.94 $10.82 N/A
Accumulation units outstanding
at the end of period 474 397 - N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.38 $19.31 $17.25 $15.86
End of period $10.96 $18.38 $19.31 $17.25
Accumulation units outstanding
at the end of period 2,275 2,066 2,132 -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.64 $16.07 $14.08 $13.19
End of period $8.79 $14.64 $16.07 $14.08
Accumulation units outstanding
at the end of period 1,338 1,354 - -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.30 $11.90 $11.43 N/A
End of period $7.15 $11.30 $11.90 N/A
Accumulation units outstanding
at the end of period - - 326 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.35 $10.91 $10.77 $10.81
End of period $11.50 $11.35 $10.91 $10.77
Accumulation units outstanding
at the end of period 1,351 5,314 5,282 740
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.81 $5.70 $4.29 $4.27
End of period $3.43 $5.81 $5.70 $4.29
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Consumer Brands Sector
Division(748)
Accumulation unit value:
Beginning of period $9.90 $10.99 $9.91 $10.27
End of period $6.64 $9.90 $10.99 $9.91
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.32 $10.95 N/A N/A
End of period $5.11 $10.32 N/A N/A
Accumulation units outstanding
at the end of period 33,755 15,073 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.34 $9.21 $8.06 $7.82
End of period $5.68 $9.34 $9.21 $8.06
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $11.24 $13.92 $12.00 $11.35
End of period $5.42 $11.24 $13.92 $12.00
Accumulation units outstanding
at the end of period 699 635 557 660
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.81 $11.24 $10.82 $10.37
End of period $8.87 $11.81 $11.24 $10.82
Accumulation units outstanding
at the end of period 1,341 1,732 1,266 731
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.42 $18.00 $14.67 $12.92
End of period $10.83 $19.42 $18.00 $14.67
Accumulation units outstanding
at the end of period 4,206 5,134 3,233 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.55 $13.67 $11.77 $11.36
End of period $7.61 $13.55 $13.67 $11.77
Accumulation units outstanding
at the end of period 183,698 168,489 52,727 4,318
JNL/MCM JNL Optimized 5 Division(1119)
Accumulation unit value:
Beginning of period $11.84 $10.67 $9.30 N/A
End of period $6.24 $11.84 $10.67 N/A
Accumulation units outstanding
at the end of period 18,872 13,787 - N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.46 $12.08 N/A N/A
End of period $7.12 $12.46 N/A N/A
Accumulation units outstanding
at the end of period 3,193 1,450 N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $34.63 $26.19 $22.19 $20.29
End of period $21.03 $34.63 $26.19 $22.19
Accumulation units outstanding
at the end of period 1,254 1,369 946 351
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.43 $14.70 $13.71 $12.19
End of period $9.41 $15.43 $14.70 $13.71
Accumulation units outstanding
at the end of period - 2,359 2,418 -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $12.04 $11.75 $10.44 $10.10
End of period $7.34 $12.04 $11.75 $10.44
Accumulation units outstanding
at the end of period - 3,022 3,056 -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.37 $15.02 $13.08 $12.31
End of period $9.14 $14.37 $15.02 $13.08
Accumulation units outstanding
at the end of period 2,906 5,241 5,170 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(1068)
Accumulation unit value:
Beginning of period $6.55 $5.85 $5.48 N/A
End of period $3.62 $6.55 $5.85 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.42 $17.51 N/A N/A
End of period $8.94 $17.42 N/A N/A
Accumulation units outstanding
at the end of period 16,098 11,255 N/A N/A
JNL/MCM VIP Division(748)
Accumulation unit value:
Beginning of period $14.07 $13.00 $11.86 $10.82
End of period $7.87 $14.07 $13.00 $11.86
Accumulation units outstanding
at the end of period - - - -
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $14.48 $13.94 $12.19 $10.90
End of period $8.37 $14.48 $13.94 $12.19
Accumulation units outstanding
at the end of period 4,865 1,631 336 336
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.85 $10.23 N/A N/A
End of period $10.21 $10.85 N/A N/A
Accumulation units outstanding
at the end of period 3,821 937 N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.05 $13.29 $13.14 $13.13
End of period $13.79 $14.05 $13.29 $13.14
Accumulation units outstanding
at the end of period 18,029 9,290 2,998 538
JNL/PPM America Core Equity Division(748)
Accumulation unit value:
Beginning of period $19.84 $21.89 $19.69 $18.34
End of period $11.54 $19.84 $21.89 $19.69
Accumulation units outstanding
at the end of period 1,111 833 771 -
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.77 $13.21 $12.23 $12.22
End of period $8.64 $12.77 $13.21 $12.23
Accumulation units outstanding
at the end of period 2,299 1,597 - -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $19.00 $20.60 $18.65 $18.00
End of period $9.80 $19.00 $20.60 $18.65
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $5.74 N/A N/A N/A
End of period $6.62 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,359 N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.44 $10.69 N/A N/A
End of period $6.66 $10.44 N/A N/A
Accumulation units outstanding
at the end of period 3,312 3,127 N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.25 $14.30 $12.66 $11.70
End of period $9.07 $15.25 $14.30 $12.66
Accumulation units outstanding
at the end of period 175,184 48,833 18,311 -
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period $11.43 $11.00 $10.44 $10.18
End of period $9.63 $11.43 $11.00 $10.44
Accumulation units outstanding
at the end of period 55,500 - - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $15.13 $14.24 $12.76 $11.93
End of period $9.56 $15.13 $14.24 $12.76
Accumulation units outstanding
at the end of period 47,648 7,099 3,945 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period $12.22 $11.60 $10.76 $10.16
End of period $9.40 $12.22 $11.60 $10.76
Accumulation units outstanding
at the end of period 1,378 - - -
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.37 $13.53 $12.34 $11.70
End of period $10.18 $14.37 $13.53 $12.34
Accumulation units outstanding
at the end of period 5,482 32,912 36,867 -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $25.37 $24.15 $21.74 $20.88
End of period $19.65 $25.37 $24.15 $21.74
Accumulation units outstanding
at the end of period 814 - - -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.78 $11.51 $11.27 $11.22
End of period $11.77 $11.78 $11.51 $11.27
Accumulation units outstanding
at the end of period 2,393 - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.22 $20.14 $17.04 $15.95
End of period $13.82 $21.22 $20.14 $17.04
Accumulation units outstanding
at the end of period 3,093 3,140 - -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $29.33 $27.26 $24.53 $23.22
End of period $16.38 $29.33 $27.26 $24.53
Accumulation units outstanding
at the end of period 598 305 - -
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $40.94 $35.74 $34.24 $30.56
End of period $23.75 $40.94 $35.74 $34.24
Accumulation units outstanding
at the end of period 236 236 236 237
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.21 $15.43 $13.15 $12.45
End of period $8.85 $15.21 $15.43 $13.15
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.30%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.75 $15.36 $11.52 $10.06
End of period $8.01 $12.75 $15.36 $11.52
Accumulation units outstanding
at the end of period - - - -
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.19 $16.02 $13.37 $12.07
End of period $9.92 $17.19 $16.02 $13.37
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.58 $12.01 $11.39 $10.74
End of period $8.27 $13.58 $12.01 $11.39
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.97 $13.76 $12.29 $11.23
End of period $8.82 $14.97 $13.76 $12.29
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(781)
Accumulation unit value:
Beginning of period $12.01 $11.39 $10.52 $9.98
End of period $8.42 $12.01 $11.39 $10.52
Accumulation units outstanding
at the end of period 9,317 9,745 9,619 10,186
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $27.67 $23.47 $22.27 $20.63
End of period $15.55 $27.67 $23.47 $21.20
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.85 $25.04 $24.49 $23.45
End of period $15.51 $26.85 $25.04 $24.49
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.63 N/A N/A N/A
End of period $6.48 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,617 N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.39 $17.70 $16.12 $15.73
End of period $10.36 $17.39 $17.70 $16.12
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $23.40 $21.36 $18.20 $17.43
End of period $14.11 $23.40 $21.36 $18.20
Accumulation units outstanding
at the end of period - 106 107 -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period $11.46 $12.50 $10.86 $10.79
End of period $7.49 $11.46 $12.50 $10.86
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $18.33 $17.53 $17.13 $17.16
End of period $16.98 $18.33 $17.53 $17.13
Accumulation units outstanding
at the end of period 856 970 970 975
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.74 $12.69 $11.22 $11.12
End of period $7.96 $12.74 $12.69 $11.22
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Short Duration
Bond Division(1185)
Accumulation unit value:
Beginning of period $10.40 $10.15 $10.12 N/A
End of period $9.56 $10.40 $10.15 N/A
Accumulation units outstanding
at the end of period - - - N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $16.09 $14.71 $11.40 $9.65
End of period $8.73 $16.09 $14.71 $11.40
Accumulation units outstanding
at the end of period - 170 170 -
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $23.09 $21.89 $19.99 $18.93
End of period $12.54 $23.09 $21.89 $19.99
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.99 $14.42 $14.29 $14.36
End of period $15.61 $14.99 $14.42 $14.29
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.37 $19.30 $17.24 $15.85
End of period $10.96 $18.37 $19.30 $17.24
Accumulation units outstanding
at the end of period - 113 113 -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.63 $16.07 $14.07 $13.19
End of period $8.78 $14.63 $16.07 $14.07
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.29 $11.89 $11.43 N/A
End of period $7.15 $11.29 $11.89 N/A
Accumulation units outstanding
at the end of period 14,325 12,978 12,739 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.35 $10.91 $10.77 $10.81
End of period $11.50 $11.35 $10.91 $10.77
Accumulation units outstanding
at the end of period 8,854 10,902 8,882 6,643
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.81 $5.70 $4.29 $4.27
End of period $3.43 $5.81 $5.70 $4.29
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector
Division(748)
Accumulation unit value:
Beginning of period $9.89 $10.98 $9.91 $10.27
End of period $6.64 $9.89 $10.98 $9.91
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.32 $10.95 N/A N/A
End of period $5.10 $10.32 N/A N/A
Accumulation units outstanding
at the end of period 840 841 N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.33 $9.21 $8.06 $7.81
End of period $5.67 $9.33 $9.21 $8.06
Accumulation units outstanding
at the end of period - 430 431 -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.24 $13.92 $12.00 $11.35
End of period $5.42 $11.24 $13.92 $12.00
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.81 $11.23 $10.82 $10.37
End of period $8.86 $11.81 $11.23 $10.82
Accumulation units outstanding
at the end of period 838 819 719 597
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.41 $18.00 $14.66 $13.59
End of period $10.83 $19.41 $18.00 $14.66
Accumulation units outstanding
at the end of period 6,134 4,793 4,810 5,034
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.55 $13.67 $11.77 $11.27
End of period $7.61 $13.55 $13.67 $11.77
Accumulation units outstanding
at the end of period 53,562 53,261 38,051 35,760
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $34.63 $26.20 $22.19 $20.29
End of period $21.03 $34.63 $26.20 $22.19
Accumulation units outstanding
at the end of period 1,126 435 472 418
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.45 $14.72 $13.73 $12.87
End of period $9.43 $15.45 $14.72 $13.73
Accumulation units outstanding
at the end of period 3,494 3,256 3,795 3,669
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $12.04 $11.74 $10.44 $10.34
End of period $7.34 $12.04 $11.74 $10.44
Accumulation units outstanding
at the end of period 25,748 22,622 23,309 22,294
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.52 $19.70 N/A N/A
End of period $10.26 $17.52 N/A N/A
Accumulation units outstanding
at the end of period 1,624 1,543 N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.38 $15.03 $13.09 $12.67
End of period $9.14 $14.38 $15.03 $13.09
Accumulation units outstanding
at the end of period 1,573 1,387 1,210 1,131
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.54 $5.84 $5.47 $5.01
End of period $3.62 $6.54 $5.84 $5.47
Accumulation units outstanding
at the end of period 1,895 1,561 1,674 1,534
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.41 $17.51 N/A N/A
End of period $8.94 $17.41 N/A N/A
Accumulation units outstanding
at the end of period 5,681 8,915 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.07 $13.00 $11.86 $11.11
End of period $7.87 $14.07 $13.00 $11.86
Accumulation units outstanding
at the end of period 6,633 5,669 5,730 5,472
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.48 $13.94 $12.19 $10.55
End of period $8.37 $14.48 $13.94 $12.19
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $14.05 $13.28 $13.13 $13.12
End of period $13.78 $14.05 $13.28 $13.13
Accumulation units outstanding
at the end of period 12,779 15,477 14,402 12,615
JNL/PPM America Core Equity Division(748)
Accumulation unit value:
Beginning of period $19.83 $21.88 $19.68 $18.34
End of period $11.53 $19.83 $21.88 $19.68
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.76 $13.21 $12.23 $12.22
End of period $8.64 $12.76 $13.21 $12.23
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $18.99 $20.59 $18.64 $17.99
End of period $9.80 $18.99 $20.59 $18.64
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(781)
Accumulation unit value:
Beginning of period $15.24 $14.29 $12.65 $11.95
End of period $9.06 $15.24 $14.29 $12.65
Accumulation units outstanding
at the end of period 7,368 7,363 8,494 2,861
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.42 $11.00 $10.43 $10.25
End of period $9.63 $11.42 $11.00 $10.43
Accumulation units outstanding
at the end of period 1,257 - - -
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $15.12 $14.23 $12.76 $12.16
End of period $9.55 $15.12 $14.23 $12.76
Accumulation units outstanding
at the end of period 7,871 23,693 28,897 12,519
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.22 $11.60 $10.76 $10.51
End of period $9.40 $12.22 $11.60 $10.76
Accumulation units outstanding
at the end of period 7,342 7,329 7,227 3,388
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.36 $13.53 $12.34 $11.92
End of period $10.18 $14.36 $13.53 $12.34
Accumulation units outstanding
at the end of period 15,704 17,505 21,791 22,903
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $25.35 $24.14 $21.73 $21.47
End of period $19.64 $25.35 $24.14 $21.73
Accumulation units outstanding
at the end of period 589 603 598 488
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.77 $11.50 $11.26 $11.21
End of period $11.76 $11.77 $11.50 $11.26
Accumulation units outstanding
at the end of period 12,591 - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.21 $20.13 $17.03 $15.95
End of period $13.82 $21.21 $20.13 $17.03
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $29.31 $27.24 $24.52 $23.21
End of period $16.37 $29.31 $27.24 $24.52
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $40.92 $35.73 $34.23 $29.78
End of period $23.73 $40.92 $35.73 $34.23
Accumulation units outstanding
at the end of period - 57 57 -
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.20 $15.42 $13.15 $12.45
End of period $8.84 $15.20 $15.42 $13.15
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.32%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.75 $15.35 $11.52 $10.49
End of period $8.01 $12.75 $15.35 $11.52
Accumulation units outstanding
at the end of period 1,434 759 561 -
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $17.14 $15.98 $13.34 $12.04
End of period $9.89 $17.14 $15.98 $13.34
Accumulation units outstanding
at the end of period 30,138 24,471 756 -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.57 $12.00 $11.38 $10.73
End of period $8.26 $13.57 $12.00 $11.38
Accumulation units outstanding
at the end of period 1,041 826 261 -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.94 $13.73 $12.27 $11.22
End of period $8.80 $14.94 $13.73 $12.27
Accumulation units outstanding
at the end of period 93 86 90 -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $11.99 $11.37 $10.50 $9.66
End of period $8.40 $11.99 $11.37 $10.50
Accumulation units outstanding
at the end of period 2,490 850 - -
JNL/Capital Guardian Global Diversified
Research Division(1136)
Accumulation unit value:
Beginning of period $27.60 $23.42 $21.75 N/A
End of period $15.51 $27.60 $23.42 N/A
Accumulation units outstanding
at the end of period 1,502 - - N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.78 $24.98 $24.44 $23.41
End of period $15.47 $26.78 $24.98 $24.44
Accumulation units outstanding
at the end of period 259 772 - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.60 $10.79 N/A N/A
End of period $6.48 $13.60 N/A N/A
Accumulation units outstanding
at the end of period 39,190 26,555 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $9.74 N/A N/A N/A
End of period $6.46 N/A N/A N/A
Accumulation units outstanding
at the end of period 7,314 N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.35 $17.66 $16.09 $15.71
End of period $10.34 $17.35 $17.66 $16.09
Accumulation units outstanding
at the end of period 4,320 393 - -
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period $20.73 N/A N/A N/A
End of period $14.07 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,039 N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.87 $10.37 N/A N/A
End of period $6.16 $9.87 N/A N/A
Accumulation units outstanding
at the end of period 19,158 18,075 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period $9.84 $10.03 N/A N/A
End of period $5.71 $9.84 N/A N/A
Accumulation units outstanding
at the end of period - 513 N/A N/A
JNL/Franklin Templeton Income
Division(1096)
Accumulation unit value:
Beginning of period $10.76 $10.81 $9.85 N/A
End of period $7.38 $10.76 $10.81 N/A
Accumulation units outstanding
at the end of period 1,694 3,688 1,298 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period $9.80 $10.14 N/A N/A
End of period $5.95 $9.80 N/A N/A
Accumulation units outstanding
at the end of period 3,262 2,623 N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(1016)
Accumulation unit value:
Beginning of period $11.46 $12.49 $11.62 N/A
End of period $7.49 $11.46 $12.49 N/A
Accumulation units outstanding
at the end of period 529 428 431 N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $18.28 $17.49 $17.09 $17.03
End of period $16.94 $18.28 $17.49 $17.09
Accumulation units outstanding
at the end of period 2,166 323 969 -
JNL/Goldman Sachs Emerging Markets
Debt Division(1944)
Accumulation unit value:
Beginning of period $9.47 N/A N/A N/A
End of period $9.63 N/A N/A N/A
Accumulation units outstanding
at the end of period 569 N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.74 $12.49 N/A N/A
End of period $7.96 $12.74 N/A N/A
Accumulation units outstanding
at the end of period 148 73 N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division(1096)
Accumulation unit value:
Beginning of period $10.40 $10.15 $9.97 N/A
End of period $9.55 $10.40 $10.15 N/A
Accumulation units outstanding
at the end of period 6,502 420 - N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $16.06 $14.68 $11.39 $10.16
End of period $8.71 $16.06 $14.68 $11.39
Accumulation units outstanding
at the end of period 34,437 30,416 6,922 365
JNL/JPMorgan MidCap Growth Division(1141)
Accumulation unit value:
Beginning of period $23.03 $21.84 $19.33 N/A
End of period $12.50 $23.03 $21.84 N/A
Accumulation units outstanding
at the end of period 42 - - N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.96 $14.39 $14.26 $14.33
End of period $15.57 $14.96 $14.39 $14.26
Accumulation units outstanding
at the end of period 16,826 - - -
JNL/Lazard Emerging Markets Division(1061)
Accumulation unit value:
Beginning of period $13.94 $10.82 $10.00 N/A
End of period $6.80 $13.94 $10.82 N/A
Accumulation units outstanding
at the end of period 27,324 11,557 410 N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.33 $19.27 $17.21 $15.83
End of period $10.93 $18.33 $19.27 $17.21
Accumulation units outstanding
at the end of period 770 4,057 462 -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.60 $16.04 $14.05 $13.17
End of period $8.76 $14.60 $16.04 $14.05
Accumulation units outstanding
at the end of period 111 80 215 -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1338)
Accumulation unit value:
Beginning of period $9.77 $10.37 N/A N/A
End of period $6.08 $9.77 N/A N/A
Accumulation units outstanding
at the end of period 32,622 15,187 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.27 $11.87 $11.41 N/A
End of period $7.13 $11.27 $11.87 N/A
Accumulation units outstanding
at the end of period 5,782 5,570 5,942 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.33 $10.90 $10.76 $10.80
End of period $11.48 $11.33 $10.90 $10.76
Accumulation units outstanding
at the end of period 21,876 31,405 17,330 1,756
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.80 $5.70 $4.28 $4.27
End of period $3.42 $5.80 $5.70 $4.28
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.31 $10.95 N/A N/A
End of period $5.10 $10.31 N/A N/A
Accumulation units outstanding
at the end of period 27,340 24,855 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.32 $9.19 $8.05 $7.81
End of period $5.66 $9.32 $9.19 $8.05
Accumulation units outstanding
at the end of period 1,739 1,987 1,212 -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.22 $13.90 $11.99 $11.34
End of period $5.41 $11.22 $13.90 $11.99
Accumulation units outstanding
at the end of period 2,384 732 436 -
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $11.79 $11.22 $10.80 $10.17
End of period $8.85 $11.79 $11.22 $10.80
Accumulation units outstanding
at the end of period 3,469 2,449 1,621 -
JNL/MCM Index 5 Division(1318)
Accumulation unit value:
Beginning of period $9.85 $10.15 N/A N/A
End of period $6.75 $9.85 N/A N/A
Accumulation units outstanding
at the end of period 7,468 7,867 N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.39 $17.98 $14.65 $13.58
End of period $10.81 $19.39 $17.98 $14.65
Accumulation units outstanding
at the end of period 22,510 20,683 7,467 1,117
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.54 $13.66 $11.77 $10.54
End of period $7.60 $13.54 $13.66 $11.77
Accumulation units outstanding
at the end of period 206,331 224,466 123,118 5,764
JNL/MCM JNL Optimized 5 Division(1147)
Accumulation unit value:
Beginning of period $11.84 $10.67 $9.82 N/A
End of period $6.24 $11.84 $10.67 N/A
Accumulation units outstanding
at the end of period 26,247 5,323 - N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.45 $12.07 N/A N/A
End of period $7.11 $12.45 N/A N/A
Accumulation units outstanding
at the end of period 4,101 6,319 N/A N/A
JNL/MCM NYSE International 25
Division(1348)
Accumulation unit value:
Beginning of period $11.50 $10.67 N/A N/A
End of period $6.08 $11.50 N/A N/A
Accumulation units outstanding
at the end of period 8,733 8,827 N/A N/A
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $34.58 $26.17 $22.17 $16.76
End of period $21.00 $34.58 $26.17 $22.17
Accumulation units outstanding
at the end of period 2,650 2,385 1,050 -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division(1450)
Accumulation unit value:
Beginning of period $10.66 $10.85 N/A N/A
End of period $7.01 $10.66 N/A N/A
Accumulation units outstanding
at the end of period 1,503 5,409 N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.41 $14.68 $13.70 $12.84
End of period $9.40 $15.41 $14.68 $13.70
Accumulation units outstanding
at the end of period 12,084 10,654 6,016 1,468
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $12.02 $11.73 $10.43 $10.33
End of period $7.33 $12.02 $11.73 $10.43
Accumulation units outstanding
at the end of period 29,247 26,869 14,123 1,876
JNL/MCM S&P SMid 60 Division(1348)
Accumulation unit value:
Beginning of period $8.79 $10.21 N/A N/A
End of period $5.99 $8.79 N/A N/A
Accumulation units outstanding
at the end of period 5,448 6,704 N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.49 $19.67 N/A N/A
End of period $10.24 $17.49 N/A N/A
Accumulation units outstanding
at the end of period 1,792 1,645 N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.34 $15.00 $13.06 $12.64
End of period $9.12 $14.34 $15.00 $13.06
Accumulation units outstanding
at the end of period 12,140 11,506 6,116 1,509
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.53 $5.84 $5.46 $5.26
End of period $3.61 $6.53 $5.84 $5.46
Accumulation units outstanding
at the end of period 3,217 2,735 1,195 -
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.40 $17.50 N/A N/A
End of period $8.94 $17.40 N/A N/A
Accumulation units outstanding
at the end of period 40,596 39,652 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.06 $13.00 $11.86 $11.95
End of period $7.86 $14.06 $13.00 $11.86
Accumulation units outstanding
at the end of period 11,659 8,996 5,936 940
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.46 $13.92 $12.18 $10.54
End of period $8.36 $14.46 $13.92 $12.18
Accumulation units outstanding
at the end of period 2,428 6,594 964 -
JNL/PAM Asia ex-Japan Division(1774)
Accumulation unit value:
Beginning of period $8.89 N/A N/A N/A
End of period $4.77 N/A N/A N/A
Accumulation units outstanding
at the end of period 4,353 N/A N/A N/A
JNL/PAM China-India Division(1774)
Accumulation unit value:
Beginning of period $7.81 N/A N/A N/A
End of period $4.13 N/A N/A N/A
Accumulation units outstanding
at the end of period 5,190 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.98 N/A N/A N/A
End of period $10.20 N/A N/A N/A
Accumulation units outstanding
at the end of period 6,073 N/A N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $14.02 $13.26 $13.11 $13.12
End of period $13.75 $14.02 $13.26 $13.11
Accumulation units outstanding
at the end of period 7,020 1,659 1,831 -
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period $19.78 $21.82 $19.64 $17.59
End of period $11.50 $19.78 $21.82 $19.64
Accumulation units outstanding
at the end of period 352 320 - -
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.74 $13.18 $12.21 $12.20
End of period $8.62 $12.74 $13.18 $12.21
Accumulation units outstanding
at the end of period 1,314 942 401 -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $18.94 $20.54 $18.60 $17.96
End of period $9.77 $18.94 $20.54 $18.60
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.84 N/A N/A N/A
End of period $6.62 N/A N/A N/A
Accumulation units outstanding
at the end of period 10,860 N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period $10.13 N/A N/A N/A
End of period $7.51 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,500 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period $10.44 $10.09 N/A N/A
End of period $6.65 $10.44 N/A N/A
Accumulation units outstanding
at the end of period - 178 N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.21 $14.26 $12.63 $11.68
End of period $9.04 $15.21 $14.26 $12.63
Accumulation units outstanding
at the end of period 215,720 181,609 76,560 -
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.42 $10.99 $10.43 $10.25
End of period $9.62 $11.42 $10.99 $10.43
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $15.09 $14.21 $12.74 $12.14
End of period $9.53 $15.09 $14.21 $12.74
Accumulation units outstanding
at the end of period 32,012 30,522 18,471 5,264
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period $12.24 $11.63 $10.78 $10.37
End of period $9.42 $12.24 $11.63 $10.78
Accumulation units outstanding
at the end of period 7,558 5,233 - -
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.33 $13.50 $12.32 $11.90
End of period $10.15 $14.33 $13.50 $12.32
Accumulation units outstanding
at the end of period 52,493 32,125 20,921 1,709
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division(1147)
Accumulation unit value:
Beginning of period $10.97 $10.51 $10.12 N/A
End of period $8.78 $10.97 $10.51 N/A
Accumulation units outstanding
at the end of period - 2,628 - N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $25.29 $24.08 $21.68 $20.83
End of period $19.59 $25.29 $24.08 $21.68
Accumulation units outstanding
at the end of period 1,363 603 - -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.76 $11.49 $11.24 $11.19
End of period $11.74 $11.76 $11.49 $11.24
Accumulation units outstanding
at the end of period 52,883 426 - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.19 $20.11 $17.02 $15.94
End of period $13.80 $21.19 $20.11 $17.02
Accumulation units outstanding
at the end of period 1,632 5,434 579 -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $29.24 $27.18 $24.46 $23.16
End of period $16.33 $29.24 $27.18 $24.46
Accumulation units outstanding
at the end of period 666 526 23 -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $40.81 $35.64 $34.15 $29.72
End of period $23.67 $40.81 $35.64 $34.15
Accumulation units outstanding
at the end of period 718 493 159 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.20 $15.42 $13.15 $12.46
End of period $8.84 $15.20 $15.42 $13.15
Accumulation units outstanding
at the end of period 224 208 204 -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.40%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.72 $15.33 $11.52 $11.19
End of period $7.98 $12.72 $15.33 $11.52
Accumulation units outstanding
at the end of period - - - -
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division(994)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period $11.92 $11.31 $10.46 $9.50
End of period $8.35 $11.92 $11.31 $10.46
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $27.32 $23.20 $20.97 $20.43
End of period $15.34 $27.32 $23.20 $20.97
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.51 $24.75 $24.24 $23.23
End of period $15.30 $26.51 $24.75 $24.24
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $18.10 $17.32 $16.95 $16.90
End of period $16.75 $18.10 $17.32 $16.95
Accumulation units outstanding
at the end of period 315 332 326 -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division(994)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.94 $14.58 $11.31 $9.58
End of period $8.64 $15.94 $14.58 $11.31
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period $22.80 $21.63 $19.77 $17.25
End of period $12.37 $22.80 $21.63 $19.77
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.80 $14.26 $14.14 $14.22
End of period $15.40 $14.80 $14.26 $14.14
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.19 $19.13 $17.11 $15.74
End of period $10.84 $18.19 $19.13 $17.11
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.49 $15.92 $13.97 $13.10
End of period $8.69 $14.49 $15.92 $13.97
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.20 $11.80 $11.35 N/A
End of period $7.08 $11.20 $11.80 N/A
Accumulation units outstanding
at the end of period 2,676 - - N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.28 $10.86 $10.73 $10.81
End of period $11.42 $11.28 $10.86 $10.73
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.25 $9.14 $8.01 $7.77
End of period $5.62 $9.25 $9.14 $8.01
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.14 $13.81 $11.92 $11.29
End of period $5.37 $11.14 $13.81 $11.92
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.30 $17.91 $14.61 $12.88
End of period $10.75 $19.30 $17.91 $14.61
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.51 $13.64 $11.76 $10.55
End of period $7.58 $13.51 $13.64 $11.76
Accumulation units outstanding
at the end of period 22,500 12,994 13,320 9,199
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $34.34 $26.00 $22.04 $16.68
End of period $20.83 $34.34 $26.00 $22.04
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.34 $14.62 $13.65 $12.15
End of period $9.35 $15.34 $14.62 $13.65
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.97 $11.68 $10.40 $10.07
End of period $7.28 $11.97 $11.68 $10.40
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period $16.93 N/A N/A N/A
End of period $10.17 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,564 N/A N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.28 $14.94 $13.02 $12.27
End of period $9.07 $14.28 $14.94 $13.02
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.49 $5.80 $5.44 $5.24
End of period $3.58 $6.49 $5.80 $5.44
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.38 $13.86 $12.14 $10.51
End of period $8.30 $14.38 $13.86 $12.14
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $13.91 $13.16 $12.98 $13.05
End of period $13.63 $13.91 $13.16 $13.03
Accumulation units outstanding
at the end of period 616 658 630 -
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.64 $13.09 $12.12 $12.13
End of period $8.54 $12.64 $13.09 $12.12
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.09 $14.17 $12.55 $11.62
End of period $8.97 $15.09 $14.17 $12.55
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.97 $14.11 $12.66 $11.85
End of period $9.45 $14.97 $14.11 $12.66
Accumulation units outstanding
at the end of period 2,770 2,773 - -
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.22 $13.41 $12.24 $12.28
End of period $10.07 $14.22 $13.41 $12.24
Accumulation units outstanding
at the end of period 9,730 9,181 9,359 9,394
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $25.03 $23.86 $21.50 $20.67
End of period $19.37 $25.03 $23.86 $21.50
Accumulation units outstanding
at the end of period - - - -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.63 $11.37 $11.14 $11.11
End of period $11.60 $11.63 $11.37 $11.14
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.10 $20.04 $16.98 $15.92
End of period $13.73 $21.10 $20.04 $16.98
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $28.94 $26.93 $24.26 $22.98
End of period $16.15 $28.94 $26.93 $24.26
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $40.40 $35.31 $33.87 $29.49
End of period $23.41 $40.40 $35.31 $33.87
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.08 $15.32 $13.07 $12.39
End of period $8.77 $15.08 $15.32 $13.07
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.445%
[Enlarge/Download Table]
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(1021)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $16.87 $15.75 $13.17 $11.90
End of period $9.72 $16.87 $15.75 $13.17
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.82 $13.64 $13.03 $11.17
End of period $8.72 $14.82 $13.64 $12.21
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.36 $24.62 $24.12 $23.13
End of period $15.21 $26.36 $24.62 $24.12
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(1021)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $17.99 $17.23 $16.87 $16.82
End of period $16.65 $17.99 $17.23 $16.87
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.87 $14.52 $11.28 $9.55
End of period $8.59 $15.87 $14.52 $11.28
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $22.67 $21.52 $19.68 $18.67
End of period $12.29 $22.67 $21.52 $19.68
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.72 $14.18 $14.07 $14.16
End of period $15.30 $14.72 $14.18 $14.07
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.11 $19.06 $17.05 $15.70
End of period $10.79 $18.11 $19.06 $17.05
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.15 $11.76 $11.31 N/A
End of period $7.05 $11.15 $11.76 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.30 $10.88 $10.76 $10.83
End of period $11.43 $11.30 $10.88 $10.76
Accumulation units outstanding
at the end of period 4,859 7,372 9,107 6,721
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.22 $9.10 $7.98 $7.75
End of period $5.59 $9.22 $9.10 $7.98
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(1045)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $19.31 $17.93 $14.63 $13.59
End of period $10.76 $19.31 $17.93 $14.63
Accumulation units outstanding
at the end of period 5,059 4,617 5,706 5,044
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.49 $13.63 $11.75 $11.26
End of period $7.56 $13.49 $13.63 $11.75
Accumulation units outstanding
at the end of period 4,613 3,238 1,336 1,456
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $34.21 $25.91 $24.52 $16.64
End of period $20.74 $34.21 $25.91 $21.98
Accumulation units outstanding
at the end of period 1,788 1,896 - -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.30 $14.59 $13.63 $12.29
End of period $9.32 $15.30 $14.59 $13.63
Accumulation units outstanding
at the end of period 5,785 5,741 6,886 5,345
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $11.93 $11.66 $10.38 $9.84
End of period $7.26 $11.93 $11.66 $10.38
Accumulation units outstanding
at the end of period 7,369 7,342 8,635 6,927
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.32 $14.99 $13.08 $12.68
End of period $9.09 $14.32 $14.99 $13.08
Accumulation units outstanding
at the end of period 5,940 6,131 6,781 5,503
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.85 $13.11 $12.98 $12.99
End of period $13.57 $13.85 $13.11 $12.98
Accumulation units outstanding
at the end of period 1,172 1,386 1,355 1,224
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.57 $13.03 $12.32 $12.10
End of period $8.50 $12.57 $13.03 $12.09
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.03 $14.11 $12.51 $11.59
End of period $8.92 $15.03 $14.11 $12.51
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.91 $14.05 $12.62 $11.81
End of period $9.40 $14.91 $14.05 $12.62
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.16 $11.57 $10.74 $10.53
End of period $9.34 $12.16 $11.57 $10.74
Accumulation units outstanding
at the end of period 4,839 4,634 4,682 4,605
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.16 $13.36 $12.20 $11.58
End of period $10.02 $14.16 $13.36 $12.20
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $40.17 $35.13 $33.70 $29.36
End of period $23.27 $40.17 $35.13 $33.70
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.03 $15.27 $13.04 $12.36
End of period $8.73 $15.03 $15.27 $13.04
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.46%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.70 $15.32 $11.51 $10.38
End of period $7.97 $12.70 $15.32 $11.51
Accumulation units outstanding
at the end of period 967 - 1,370 -
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $16.84 $15.72 $13.15 $11.88
End of period $9.70 $16.84 $15.72 $13.15
Accumulation units outstanding
at the end of period 470 - - -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.45 $11.91 $11.51 $10.68
End of period $8.18 $13.45 $11.91 $11.32
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.81 $13.63 $12.20 $11.17
End of period $8.71 $14.81 $13.63 $12.20
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $11.87 $11.27 $10.42 $9.59
End of period $8.30 $11.87 $11.27 $10.42
Accumulation units outstanding
at the end of period 1,742 933 - -
JNL/Capital Guardian Global Diversified
Research Division(748)
Accumulation unit value:
Beginning of period $27.12 $23.04 $20.84 $20.31
End of period $15.22 $27.12 $23.04 $20.84
Accumulation units outstanding
at the end of period 111 146 - -
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.31 $24.58 $24.08 $23.09
End of period $15.18 $26.31 $24.58 $24.08
Accumulation units outstanding
at the end of period 252 5,867 - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.61 N/A N/A N/A
End of period $6.46 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,220 N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period $10.46 N/A N/A N/A
End of period $6.44 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,447 N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $22.98 $21.01 $17.93 $17.20
End of period $13.84 $22.98 $21.01 $17.93
Accumulation units outstanding
at the end of period 694 748 - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period $9.86 $9.93 N/A N/A
End of period $6.14 $9.86 N/A N/A
Accumulation units outstanding
at the end of period 42,938 35,232 N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1161)
Accumulation unit value:
Beginning of period $10.73 $10.80 $10.33 N/A
End of period $7.36 $10.73 $10.80 N/A
Accumulation units outstanding
at the end of period 2,153 2,207 1,522 N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(1123)
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $17.96 $17.20 $16.59 $16.80
End of period $16.62 $17.96 $17.20 $16.84
Accumulation units outstanding
at the end of period 5,612 2,289 1,312 -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.84 $14.50 $11.26 $9.54
End of period $8.58 $15.84 $14.50 $11.26
Accumulation units outstanding
at the end of period 712 178 768 -
JNL/JPMorgan MidCap Growth Division(748)
Accumulation unit value:
Beginning of period $22.63 $21.48 $19.65 $18.64
End of period $12.26 $22.63 $21.48 $19.65
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.69 $14.16 $14.05 $14.14
End of period $15.27 $14.69 $14.16 $14.05
Accumulation units outstanding
at the end of period 330 2,694 - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period $13.80 N/A N/A N/A
End of period $6.78 N/A N/A N/A
Accumulation units outstanding
at the end of period 235 N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $18.08 $19.03 $17.03 $16.17
End of period $10.77 $18.08 $19.03 $17.03
Accumulation units outstanding
at the end of period 665 536 117 163
JNL/Lazard Small Cap Equity Division(781)
Accumulation unit value:
Beginning of period $14.40 $15.84 $13.90 $13.31
End of period $8.63 $14.40 $15.84 $13.90
Accumulation units outstanding
at the end of period 401 371 140 195
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period $8.12 N/A N/A N/A
End of period $6.07 N/A N/A N/A
Accumulation units outstanding
at the end of period 7,222 N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.14 $11.75 $11.30 N/A
End of period $7.04 $11.14 $11.75 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.24 $10.82 $10.70 $10.79
End of period $11.37 $11.24 $10.82 $10.70
Accumulation units outstanding
at the end of period - 371 - -
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.73 $5.63 $4.24 $4.23
End of period $3.38 $5.73 $5.63 $4.24
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.28 $10.92 N/A N/A
End of period $5.08 $10.28 N/A N/A
Accumulation units outstanding
at the end of period 58,995 21,312 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period $6.80 N/A N/A N/A
End of period $5.59 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,454 N/A N/A N/A
JNL/MCM European 30 Division(1935)
Accumulation unit value:
Beginning of period $7.38 N/A N/A N/A
End of period $8.58 N/A N/A N/A
Accumulation units outstanding
at the end of period 580 N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $11.08 $13.75 $13.52 $11.26
End of period $5.34 $11.08 $13.75 $11.88
Accumulation units outstanding
at the end of period 6,430 169 780 -
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $11.65 $11.10 $10.71 $10.09
End of period $8.73 $11.65 $11.10 $10.71
Accumulation units outstanding
at the end of period 2,798 - 960 -
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period $9.37 N/A N/A N/A
End of period $6.73 N/A N/A N/A
Accumulation units outstanding
at the end of period 10,645 N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.23 $17.85 $14.57 $12.86
End of period $10.71 $19.23 $17.85 $14.57
Accumulation units outstanding
at the end of period 572 - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(748)
Accumulation unit value:
Beginning of period $13.48 $13.62 $11.75 $10.67
End of period $7.56 $13.48 $13.62 $11.75
Accumulation units outstanding
at the end of period 194,602 76,211 37,864 -
JNL/MCM JNL Optimized 5 Division(1176)
Accumulation unit value:
Beginning of period $11.81 $10.66 $10.18 N/A
End of period $6.21 $11.81 $10.66 N/A
Accumulation units outstanding
at the end of period 32,033 17,506 - N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period $12.19 N/A N/A N/A
End of period $7.07 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,386 N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period $11.47 N/A N/A N/A
End of period $6.06 N/A N/A N/A
Accumulation units outstanding
at the end of period 8,878 N/A N/A N/A
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $34.17 $25.89 $21.96 $16.63
End of period $20.71 $34.17 $25.89 $21.96
Accumulation units outstanding
at the end of period 898 64 2,015 -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.28 $14.58 $13.62 $12.13
End of period $9.31 $15.28 $14.58 $13.62
Accumulation units outstanding
at the end of period 299 183 - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.92 $11.65 $10.38 $10.05
End of period $7.25 $11.92 $11.65 $10.38
Accumulation units outstanding
at the end of period 311 - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period $8.61 N/A N/A N/A
End of period $5.98 N/A N/A N/A
Accumulation units outstanding
at the end of period 5,065 N/A N/A N/A
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period $16.85 N/A N/A N/A
End of period $10.11 N/A N/A N/A
Accumulation units outstanding
at the end of period 487 N/A N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.22 $14.89 $12.99 $12.25
End of period $9.03 $14.22 $14.89 $12.99
Accumulation units outstanding
at the end of period 133 - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.45 $5.77 $5.27 $5.22
End of period $3.56 $6.45 $5.77 $5.41
Accumulation units outstanding
at the end of period 1,996 789 - -
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.32 $17.42 N/A N/A
End of period $8.88 $17.32 N/A N/A
Accumulation units outstanding
at the end of period 15,638 6,128 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $14.00 $12.96 $11.84 $11.13
End of period $7.81 $14.00 $12.96 $11.84
Accumulation units outstanding
at the end of period 11,925 1,834 1,861 2,579
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.33 $13.81 $12.22 $10.49
End of period $8.27 $14.33 $13.81 $12.10
Accumulation units outstanding
at the end of period 237 - 776 -
JNL/PAM Asia ex-Japan Division(1774)
Accumulation unit value:
Beginning of period $8.89 N/A N/A N/A
End of period $4.76 N/A N/A N/A
Accumulation units outstanding
at the end of period 683 N/A N/A N/A
JNL/PAM China-India Division(1774)
Accumulation unit value:
Beginning of period $7.81 N/A N/A N/A
End of period $4.12 N/A N/A N/A
Accumulation units outstanding
at the end of period 756 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $10.97 N/A N/A N/A
End of period $10.17 N/A N/A N/A
Accumulation units outstanding
at the end of period 883 N/A N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $13.83 $13.09 $12.97 $13.00
End of period $13.55 $13.83 $13.09 $12.97
Accumulation units outstanding
at the end of period 7,186 4,193 1,710 -
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.56 $13.01 $12.07 $12.08
End of period $8.48 $12.56 $13.01 $12.07
Accumulation units outstanding
at the end of period 963 - - -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $18.61 $20.21 $18.32 $17.72
End of period $9.58 $18.61 $20.21 $18.32
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.84 N/A N/A N/A
End of period $6.61 N/A N/A N/A
Accumulation units outstanding
at the end of period 8,172 N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period $9.54 N/A N/A N/A
End of period $7.05 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,345 N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $15.01 $14.09 $12.33 $11.57
End of period $8.91 $15.01 $14.09 $12.50
Accumulation units outstanding
at the end of period 3,072 1,816 - -
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.36 $10.96 $10.41 $10.25
End of period $9.56 $11.36 $10.96 $10.41
Accumulation units outstanding
at the end of period 5,616 - - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.88 $14.04 $12.60 $11.80
End of period $9.39 $14.88 $14.04 $12.60
Accumulation units outstanding
at the end of period 25,661 16,134 8,151 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(748)
Accumulation unit value:
Beginning of period $12.15 $11.56 $10.73 $10.38
End of period $9.34 $12.15 $11.56 $10.73
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.14 $13.34 $12.19 $11.57
End of period $10.00 $14.14 $13.34 $12.19
Accumulation units outstanding
at the end of period 32,020 1,457 - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period $10.20 N/A N/A N/A
End of period $8.74 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,005 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period $9.65 N/A N/A N/A
End of period $6.31 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,288 N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $24.84 $23.69 $21.36 $20.28
End of period $19.22 $24.84 $23.69 $21.36
Accumulation units outstanding
at the end of period 614 580 471 653
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.54 $11.29 $11.18 $11.04
End of period $11.50 $11.54 $11.29 $11.07
Accumulation units outstanding
at the end of period 62,424 - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.03 $19.99 $16.95 $15.89
End of period $13.68 $21.03 $19.99 $16.95
Accumulation units outstanding
at the end of period 769 815 - -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $28.72 $26.74 $23.71 $22.85
End of period $16.02 $28.72 $26.74 $24.10
Accumulation units outstanding
at the end of period - 1,027 - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $40.10 $35.06 $33.65 $29.32
End of period $23.22 $40.10 $35.06 $33.65
Accumulation units outstanding
at the end of period 242 162 - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.01 $15.26 $13.03 $12.35
End of period $8.72 $15.01 $15.26 $13.03
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.47%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(1041)
Accumulation unit value:
Beginning of period $12.70 $15.32 $13.05 N/A
End of period $7.96 $12.70 $15.32 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/AIM International Growth Division(1027)
Accumulation unit value:
Beginning of period $16.82 $15.71 $13.63 N/A
End of period $9.69 $16.82 $15.71 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.44 $11.90 $11.31 $10.68
End of period $8.17 $13.44 $11.90 $11.31
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.80 $13.62 $12.20 $11.17
End of period $8.70 $14.80 $13.62 $12.20
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(748)
Accumulation unit value:
Beginning of period $26.28 $24.55 $24.05 $23.07
End of period $15.16 $26.28 $24.55 $24.05
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $22.95 $20.99 $17.92 $17.18
End of period $13.82 $22.95 $20.99 $17.92
Accumulation units outstanding
at the end of period - - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1097)
Accumulation unit value:
Beginning of period $10.73 $10.80 $9.84 N/A
End of period $7.36 $10.73 $10.80 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $17.94 $17.18 $16.82 $16.78
End of period $16.59 $17.94 $17.18 $16.82
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division(1097)
Accumulation unit value:
Beginning of period $10.37 $10.14 $9.96 N/A
End of period $9.51 $10.37 $10.14 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $15.83 $14.49 $11.25 $10.05
End of period $8.57 $15.83 $14.49 $11.25
Accumulation units outstanding
at the end of period 2,442 2,485 2,658 3,009
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.67 $14.14 $14.04 $14.13
End of period $15.25 $14.67 $14.14 $14.04
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division(1166)
Accumulation unit value:
Beginning of period $13.90 $10.81 $9.42 N/A
End of period $6.77 $13.90 $10.81 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $18.07 $19.02 $17.01 $15.67
End of period $10.76 $18.07 $19.02 $17.01
Accumulation units outstanding
at the end of period 927 1,009 1,485 -
JNL/Lazard Small Cap Equity Division(781)
Accumulation unit value:
Beginning of period $14.39 $15.83 $13.89 $13.27
End of period $8.62 $14.39 $15.83 $13.89
Accumulation units outstanding
at the end of period 2,288 2,448 2,174 2,329
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division(1379)
Accumulation unit value:
Beginning of period $9.76 $9.50 N/A N/A
End of period $6.07 $9.76 N/A N/A
Accumulation units outstanding
at the end of period 3,356 3,563 N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.13 $11.74 $11.30 N/A
End of period $7.03 $11.13 $11.74 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.23 $10.82 $10.70 $10.78
End of period $11.36 $11.23 $10.82 $10.70
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.73 $5.63 $4.24 $4.23
End of period $3.37 $5.73 $5.63 $4.24
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $9.20 $9.09 $7.97 $7.74
End of period $5.58 $9.20 $9.09 $7.97
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $11.08 $13.74 $11.87 $11.24
End of period $5.33 $11.08 $13.74 $11.87
Accumulation units outstanding
at the end of period 5,996 6,305 3,275 1,819
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.64 $11.09 $10.70 $10.27
End of period $8.72 $11.64 $11.09 $10.70
Accumulation units outstanding
at the end of period 3,486 3,825 3,873 2,017
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.22 $17.85 $14.57 $12.85
End of period $10.70 $19.22 $17.85 $14.57
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division(748)
Accumulation unit value:
Beginning of period $13.48 $13.62 $11.75 $10.67
End of period $7.55 $13.48 $13.62 $11.75
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $34.13 $25.87 $21.95 $19.93
End of period $20.69 $34.13 $25.87 $21.95
Accumulation units outstanding
at the end of period 1,250 1,384 1,310 969
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.27 $14.57 $13.62 $12.13
End of period $9.30 $15.27 $14.57 $13.62
Accumulation units outstanding
at the end of period 219 238 237 -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.92 $11.64 $10.37 $10.05
End of period $7.25 $11.92 $11.64 $10.37
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.27 $19.45 N/A N/A
End of period $10.10 $17.27 N/A N/A
Accumulation units outstanding
at the end of period 200 195 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.22 $14.89 $12.99 $12.24
End of period $9.02 $14.22 $14.89 $12.99
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.45 $5.77 $5.41 $5.17
End of period $3.56 $6.45 $5.77 $5.41
Accumulation units outstanding
at the end of period 6,887 7,064 7,616 4,006
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.32 $13.80 $12.59 $10.49
End of period $8.26 $14.32 $13.80 $12.10
Accumulation units outstanding
at the end of period 2,281 2,454 2,324 -
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.81 $13.08 $12.96 $12.97
End of period $13.53 $13.81 $13.08 $12.96
Accumulation units outstanding
at the end of period - 1,646 9,249 4,806
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.55 $13.01 $12.06 $12.07
End of period $8.48 $12.55 $13.01 $12.06
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $8.86 N/A N/A N/A
End of period $6.61 N/A N/A N/A
Accumulation units outstanding
at the end of period 3,303 N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.99 $14.08 $12.49 $11.57
End of period $8.90 $14.99 $14.08 $12.49
Accumulation units outstanding
at the end of period 2,438 - - -
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.87 $14.02 $12.59 $11.79
End of period $9.38 $14.87 $14.02 $12.59
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.15 $11.56 $10.73 $10.37
End of period $9.33 $12.15 $11.56 $10.73
Accumulation units outstanding
at the end of period 8,459 8,459 8,459 8,459
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $14.13 $13.33 $12.18 $11.78
End of period $9.99 $14.13 $13.33 $12.18
Accumulation units outstanding
at the end of period 4,541 4,541 4,541 4,541
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $24.81 $23.67 $21.34 $20.53
End of period $19.19 $24.81 $23.67 $21.34
Accumulation units outstanding
at the end of period - - - -
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $21.02 $19.99 $16.94 $15.89
End of period $13.67 $21.02 $19.99 $16.94
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $28.69 $26.71 $24.08 $22.83
End of period $16.00 $28.69 $26.71 $24.08
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $40.05 $35.03 $33.61 $29.29
End of period $23.19 $40.05 $35.03 $33.61
Accumulation units outstanding
at the end of period 212 231 529 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $15.00 $15.25 $13.02 $12.35
End of period $8.71 $15.00 $15.25 $13.02
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.50%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division(781)
Accumulation unit value:
Beginning of period $16.76 $15.65 $13.09 $13.15
End of period $9.65 $16.76 $15.65 $13.09
Accumulation units outstanding
at the end of period - 1,718 1,988 2,532
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.42 $11.89 $11.30 $10.67
End of period $8.16 $13.42 $11.89 $11.30
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $11.83 $11.24 $10.40 $9.58
End of period $8.27 $11.83 $11.24 $10.40
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $11.44 N/A N/A N/A
End of period $6.46 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,125 N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $17.00 $17.33 $15.82 $15.47
End of period $10.11 $17.00 $17.33 $15.82
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $17.87 $17.12 $16.77 $16.82
End of period $16.53 $17.87 $17.12 $16.77
Accumulation units outstanding
at the end of period 354 387 - 289
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.62 $14.09 $13.99 $14.09
End of period $15.19 $14.62 $14.09 $13.99
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $18.01 $18.97 $16.97 $16.13
End of period $10.72 $18.01 $18.97 $16.97
Accumulation units outstanding
at the end of period 80 1,117 1,169 1,382
JNL/Lazard Small Cap Equity Division(781)
Accumulation unit value:
Beginning of period $14.34 $15.78 $13.86 $13.51
End of period $8.59 $14.34 $15.78 $13.86
Accumulation units outstanding
at the end of period 96 1,373 1,408 1,684
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.10 $11.71 $11.27 N/A
End of period $7.01 $11.10 $11.71 N/A
Accumulation units outstanding
at the end of period - 2,701 2,701 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.21 $10.81 $10.69 $10.77
End of period $11.34 $11.21 $10.81 $10.69
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.60 $11.06 $10.67 $10.50
End of period $8.69 $11.60 $11.06 $10.67
Accumulation units outstanding
at the end of period - 801 930 1,022
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.18 $17.82 $14.55 $12.84
End of period $10.68 $19.18 $17.82 $14.55
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.46 $13.61 $11.74 $11.26
End of period $7.54 $13.46 $13.61 $11.74
Accumulation units outstanding
at the end of period 4,069 16,310 - 3,405
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.38 $12.00 N/A N/A
End of period $7.06 $12.38 N/A N/A
Accumulation units outstanding
at the end of period 13,863 13,863 N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $34.05 $25.81 $21.91 $20.06
End of period $20.63 $34.05 $25.81 $21.91
Accumulation units outstanding
at the end of period 482 343 463 561
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.25 $14.55 $13.60 $12.12
End of period $9.28 $15.25 $14.55 $13.60
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.89 $11.63 $10.36 $10.04
End of period $7.23 $11.89 $11.63 $10.36
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.22 $19.41 N/A N/A
End of period $10.07 $17.22 N/A N/A
Accumulation units outstanding
at the end of period - 1,579 N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.19 $14.86 $12.97 $12.50
End of period $9.01 $14.19 $14.86 $12.97
Accumulation units outstanding
at the end of period 103 104 104 104
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.43 $5.76 $5.40 $5.52
End of period $3.55 $6.43 $5.76 $5.40
Accumulation units outstanding
at the end of period - 1,441 1,798 2,011
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.30 $17.40 N/A N/A
End of period $8.87 $17.30 N/A N/A
Accumulation units outstanding
at the end of period - 2,146 N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $14.29 $13.78 $12.08 $10.83
End of period $8.24 $14.29 $13.78 $12.08
Accumulation units outstanding
at the end of period 119 119 120 120
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.77 $13.05 $12.93 $12.94
End of period $13.49 $13.77 $13.05 $12.93
Accumulation units outstanding
at the end of period 556 606 99 472
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.51 $12.97 $12.04 $12.05
End of period $8.45 $12.51 $12.97 $12.04
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $18.52 $20.12 $18.25 $17.65
End of period $9.53 $18.52 $20.12 $18.25
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.95 $14.04 $12.46 $11.54
End of period $8.87 $14.95 $14.04 $12.46
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $14.83 $13.99 $12.56 $12.02
End of period $9.35 $14.83 $13.99 $12.56
Accumulation units outstanding
at the end of period - - 2,802 2,804
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period $12.14 $11.55 $10.73 $10.41
End of period $9.32 $12.14 $11.55 $10.73
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.09 $13.29 $12.15 $11.54
End of period $9.96 $14.09 $13.29 $12.15
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $24.72 $23.58 $21.27 $21.05
End of period $19.11 $24.72 $23.58 $21.27
Accumulation units outstanding
at the end of period 62 62 62 62
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period $11.47 N/A N/A N/A
End of period $11.44 N/A N/A N/A
Accumulation units outstanding
at the end of period 8,973 N/A N/A N/A
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $20.99 $19.96 $16.92 $15.88
End of period $13.64 $20.99 $19.96 $16.92
Accumulation units outstanding
at the end of period 85 85 - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $28.58 $26.61 $24.00 $22.76
End of period $15.93 $28.58 $26.61 $24.00
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $39.91 $34.91 $33.51 $30.35
End of period $23.10 $39.91 $34.91 $33.51
Accumulation units outstanding
at the end of period 43 43 43 43
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $14.97 $15.22 $13.00 $12.33
End of period $8.69 $14.97 $15.22 $13.00
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.55%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $17.76 $17.02 $16.68 $16.71
End of period $16.41 $17.76 $17.02 $16.68
Accumulation units outstanding
at the end of period 2,883 3,239 3,087 3,057
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(781)
Accumulation unit value:
Beginning of period $9.13 $9.03 $7.93 $7.76
End of period $5.54 $9.13 $9.03 $7.93
Accumulation units outstanding
at the end of period 2,622 2,369 2,380 2,407
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.44 $13.59 $11.74 $10.93
End of period $7.53 $13.44 $13.59 $11.74
Accumulation units outstanding
at the end of period 9,066 9,556 10,180 10,692
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $11.86 $11.60 $10.34 $10.14
End of period $7.21 $11.86 $11.60 $10.34
Accumulation units outstanding
at the end of period 12,084 10,947 11,025 11,061
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.71 $12.99 $12.88 $12.71
End of period $13.41 $13.71 $12.99 $12.88
Accumulation units outstanding
at the end of period 2,165 3,157 3,087 2,976
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.87 $13.98 $12.41 $11.50
End of period $8.82 $14.87 $13.98 $12.41
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period $11.33 $10.94 $10.40 $10.16
End of period $9.53 $11.33 $10.94 $10.40
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $14.02 $13.23 $12.10 $11.50
End of period $9.91 $14.02 $13.23 $12.10
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $14.91 $15.17 $12.96 $12.62
End of period $8.65 $14.91 $15.17 $12.96
Accumulation units outstanding
at the end of period 1,678 1,451 1,424 1,484
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.61%
[Enlarge/Download Table]
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division(992)
Accumulation unit value:
Beginning of period $12.65 $15.28 $11.91 N/A
End of period $7.92 $12.65 $15.28 N/A
Accumulation units outstanding
at the end of period 3,413 3,471 4,273 N/A
JNL/AIM International Growth Division(781)
Accumulation unit value:
Beginning of period $16.52 $15.45 $12.94 $11.53
End of period $9.51 $16.52 $15.45 $12.94
Accumulation units outstanding
at the end of period 920 - - 647
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period $13.56 $12.41 N/A N/A
End of period $6.44 $13.56 N/A N/A
Accumulation units outstanding
at the end of period 5,187 1,569 N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $22.59 $20.69 $17.68 $16.98
End of period $13.58 $22.59 $20.69 $17.68
Accumulation units outstanding
at the end of period - - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(781)
Accumulation unit value:
Beginning of period $11.37 $12.43 $10.84 $10.25
End of period $7.41 $11.37 $12.43 $10.84
Accumulation units outstanding
at the end of period 583 536 - 752
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $17.62 $16.91 $16.58 $16.56
End of period $16.28 $17.62 $16.91 $16.58
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $11.95 N/A N/A N/A
End of period $7.87 N/A N/A N/A
Accumulation units outstanding
at the end of period 213 N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.61 $14.31 $11.48 $9.45
End of period $8.44 $15.61 $14.31 $11.13
Accumulation units outstanding
at the end of period 3,610 5,283 5,314 -
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period $13.87 $13.89 N/A N/A
End of period $6.75 $13.87 N/A N/A
Accumulation units outstanding
at the end of period 99 2,100 N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $17.82 $18.78 $16.83 $15.60
End of period $10.60 $17.82 $18.78 $16.83
Accumulation units outstanding
at the end of period 387 - - 488
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period $13.01 N/A N/A N/A
End of period $8.49 N/A N/A N/A
Accumulation units outstanding
at the end of period 179 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $11.00 $11.62 $11.19 N/A
End of period $6.94 $11.00 $11.62 N/A
Accumulation units outstanding
at the end of period - 5,763 5,797 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.14 $10.74 $10.64 $10.74
End of period $11.25 $11.14 $10.74 $10.64
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector
Division(748)
Accumulation unit value:
Beginning of period $5.66 $5.57 $5.14 $4.20
End of period $3.33 $5.66 $5.57 $4.20
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $10.94 $13.60 $11.76 $10.84
End of period $5.26 $10.94 $13.60 $11.76
Accumulation units outstanding
at the end of period 1,040 538 - 730
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.50 $10.97 $10.60 $10.51
End of period $8.60 $11.50 $10.97 $10.60
Accumulation units outstanding
at the end of period 957 1,883 1,884 765
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $19.06 $17.72 $14.48 $12.80
End of period $10.60 $19.06 $17.72 $14.48
Accumulation units outstanding
at the end of period 163 - - -
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.41 $13.58 $11.73 $11.09
End of period $7.51 $13.41 $13.58 $11.73
Accumulation units outstanding
at the end of period 18,677 22,387 7,540 7,683
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25
Division(1347)
Accumulation unit value:
Beginning of period $11.48 $10.45 N/A N/A
End of period $6.05 $11.48 N/A N/A
Accumulation units outstanding
at the end of period 3,794 5,793 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $33.73 $25.60 $21.75 $17.67
End of period $20.42 $33.73 $25.60 $21.75
Accumulation units outstanding
at the end of period 251 - - 345
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $15.15 $14.47 $13.54 $12.08
End of period $9.21 $15.15 $14.47 $13.54
Accumulation units outstanding
at the end of period 2,985 4,371 4,397 -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.82 $11.56 $10.31 $10.01
End of period $7.18 $11.82 $11.56 $10.31
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $17.06 $19.25 N/A N/A
End of period $9.96 $17.06 N/A N/A
Accumulation units outstanding
at the end of period 548 2,246 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $14.10 $14.78 $12.92 $12.19
End of period $8.94 $14.10 $14.78 $12.92
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.37 $5.71 $5.36 $5.06
End of period $3.51 $6.37 $5.71 $5.36
Accumulation units outstanding
at the end of period 3,804 - - 1,522
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.24 $17.34 N/A N/A
End of period $8.83 $17.24 N/A N/A
Accumulation units outstanding
at the end of period 2,424 2,424 N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division(1883)
Accumulation unit value:
Beginning of period $6.19 N/A N/A N/A
End of period $4.76 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,938 N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.62 $12.92 $12.82 $12.94
End of period $13.33 $13.62 $12.92 $12.82
Accumulation units outstanding
at the end of period 321 - - 1,253
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.37 $12.84 $12.00 $11.96
End of period $8.35 $12.37 $12.84 $11.93
Accumulation units outstanding
at the end of period 3,506 3,563 5,161 -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $14.67 $13.85 $12.46 $11.97
End of period $9.24 $14.67 $13.85 $12.46
Accumulation units outstanding
at the end of period 14,910 12,031 12,033 15,688
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period $12.09 $11.52 $10.71 $10.40
End of period $9.28 $12.09 $11.52 $10.71
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $13.93 $13.17 $12.05 $11.56
End of period $9.84 $13.93 $13.17 $12.05
Accumulation units outstanding
at the end of period 12,251 12,153 12,313 12,316
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.33 $11.09 $10.90 $10.88
End of period $11.28 $11.33 $11.09 $10.90
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $20.87 $19.87 $18.12 $15.84
End of period $13.55 $20.87 $19.87 $16.86
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $39.33 $34.45 $33.12 $28.90
End of period $22.74 $39.33 $34.45 $33.12
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $14.84 $15.11 $12.92 $12.27
End of period $8.61 $14.84 $15.11 $12.92
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.67%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.63 $15.26 $11.49 $11.46
End of period $7.91 $12.63 $15.26 $11.49
Accumulation units outstanding
at the end of period - - - -
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period $16.40 $15.34 $12.86 $12.90
End of period $9.43 $16.40 $15.34 $12.86
Accumulation units outstanding
at the end of period 803 - - -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.28 $11.78 $11.22 $10.61
End of period $8.06 $13.28 $11.78 $11.22
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.62 $13.48 $12.10 $11.09
End of period $8.58 $14.62 $13.48 $12.10
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period $16.68 $17.03 $15.57 $14.67
End of period $9.90 $16.68 $17.03 $15.57
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $22.44 $20.56 $17.58 $16.90
End of period $13.48 $22.44 $20.56 $17.58
Accumulation units outstanding
at the end of period - - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income
Division(1169)
Accumulation unit value:
Beginning of period $10.69 $10.79 $10.39 N/A
End of period $7.32 $10.69 $10.79 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period $11.35 $12.42 $10.84 $10.88
End of period $7.39 $11.35 $12.42 $10.84
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period $17.49 $16.79 $16.47 $16.36
End of period $16.15 $17.49 $16.79 $16.47
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $15.52 $14.24 $11.08 $10.34
End of period $8.39 $15.52 $14.24 $11.08
Accumulation units outstanding
at the end of period 425 449 814 996
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period $22.03 $20.96 $19.21 $17.07
End of period $11.92 $22.03 $20.96 $19.21
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period $14.31 $13.82 $13.74 $13.80
End of period $14.84 $14.31 $13.82 $13.74
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $17.71 $18.68 $16.75 $15.45
End of period $10.53 $17.71 $18.68 $16.75
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division(748)
Accumulation unit value:
Beginning of period $14.11 $15.55 $13.67 $12.86
End of period $8.44 $14.11 $15.55 $13.67
Accumulation units outstanding
at the end of period - - - -
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $10.94 $11.57 $11.14 N/A
End of period $6.90 $10.94 $11.57 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period $11.10 $10.71 $10.61 $10.56
End of period $11.21 $11.10 $10.71 $10.61
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Consumer Brands Sector
Division(1169)
Accumulation unit value:
Beginning of period $9.58 $10.68 $10.19 N/A
End of period $6.41 $9.58 $10.68 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period $8.91 N/A N/A N/A
End of period $5.47 N/A N/A N/A
Accumulation units outstanding
at the end of period 2,487 N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $10.89 $13.54 $11.71 $11.09
End of period $5.23 $10.89 $13.54 $11.71
Accumulation units outstanding
at the end of period 1,205 1,274 849 928
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.44 $10.92 $10.56 $10.61
End of period $8.55 $11.44 $10.92 $10.56
Accumulation units outstanding
at the end of period 554 586 1,050 1,038
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period $19.00 $17.67 $14.45 $12.81
End of period $10.55 $19.00 $17.67 $14.45
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM JNL 5 Division
Accumulation unit value:
Beginning of period $13.39 $13.56 $11.72 $10.70
End of period $7.49 $13.39 $13.56 $11.72
Accumulation units outstanding
at the end of period 719 - - -
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $33.56 $25.48 $21.66 $21.13
End of period $20.30 $33.56 $25.48 $21.66
Accumulation units outstanding
at the end of period 200 211 433 485
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period $10.17 N/A N/A N/A
End of period $7.15 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,914 N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $16.98 $19.16 N/A N/A
End of period $9.91 $16.98 N/A N/A
Accumulation units outstanding
at the end of period 366 387 N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Technology Sector Division(781)
Accumulation unit value:
Beginning of period $6.34 $5.68 $5.34 $5.24
End of period $3.49 $6.34 $5.68 $5.34
Accumulation units outstanding
at the end of period 2,468 1,082 1,984 1,989
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $14.13 $13.65 $11.98 $10.23
End of period $8.13 $14.13 $13.65 $11.98
Accumulation units outstanding
at the end of period 461 487 839 915
JNL/PAM Asia ex-Japan Division(1883)
Accumulation unit value:
Beginning of period $6.19 N/A N/A N/A
End of period $4.75 N/A N/A N/A
Accumulation units outstanding
at the end of period 1,587 N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.54 $12.85 $12.76 $12.83
End of period $13.24 $13.54 $12.85 $12.76
Accumulation units outstanding
at the end of period - - 1,776 1,724
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period $18.92 $20.95 $18.92 $19.14
End of period $10.96 $18.92 $20.95 $18.92
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period $12.30 $12.77 $11.87 $11.64
End of period $8.29 $12.30 $12.77 $11.87
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.70 $13.83 $12.29 $11.41
End of period $8.71 $14.70 $13.83 $12.29
Accumulation units outstanding
at the end of period 886 936 - -
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.58 $13.78 $12.40 $11.63
End of period $9.18 $14.58 $13.78 $12.40
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $13.85 $13.10 $11.99 $11.41
End of period $9.78 $13.85 $13.10 $11.99
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period $11.23 $11.02 $10.83 $10.80
End of period $11.18 $11.23 $11.02 $10.83
Accumulation units outstanding
at the end of period - 3,357 - -
JNL/Select Value Division
Accumulation unit value:
Beginning of period $20.80 $19.81 $16.83 $15.79
End of period $13.50 $20.80 $19.81 $16.83
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $27.97 $26.09 $23.57 $22.39
End of period $15.57 $27.97 $26.09 $23.57
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $39.05 $34.22 $32.91 $28.73
End of period $22.57 $39.05 $34.22 $32.91
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $14.77 $15.05 $12.88 $12.05
End of period $8.56 $14.77 $15.05 $12.88
Accumulation units outstanding
at the end of period 1,211 461 759 842
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.695%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.62 $15.26 $11.49 $10.33
End of period $7.90 $12.62 $15.26 $11.49
Accumulation units outstanding
at the end of period - - - -
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.26 $11.77 $11.21 $10.60
End of period $8.04 $13.26 $11.77 $11.21
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.60 $13.47 $12.08 $11.09
End of period $8.56 $14.60 $13.47 $12.08
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period $25.54 $23.92 $23.49 $22.82
End of period $14.70 $25.54 $23.92 $23.49
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $17.67 $18.64 $16.72 $15.43
End of period $10.50 $17.67 $18.64 $16.72
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $10.92 $11.54 $11.12 N/A
End of period $6.88 $10.92 $11.54 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.08 $10.70 $10.60 $10.67
End of period $11.19 $11.08 $10.70 $10.60
Accumulation units outstanding
at the end of period 1,637 2,401 2,389 2,183
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $11.42 $10.90 $10.54 $9.96
End of period $8.53 $11.42 $10.90 $10.54
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $18.96 $17.65 $14.44 $13.42
End of period $10.53 $18.96 $17.65 $14.44
Accumulation units outstanding
at the end of period 1,672 1,401 1,471 1,615
JNL/MCM JNL 5 Division(748)
Accumulation unit value:
Beginning of period $13.38 $13.55 $11.72 $10.66
End of period $7.48 $13.38 $13.55 $11.72
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $33.49 $25.43 $21.63 $16.42
End of period $20.26 $33.49 $25.43 $21.63
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.07 $14.41 $13.49 $12.69
End of period $9.16 $15.07 $14.41 $13.49
Accumulation units outstanding
at the end of period 1,959 1,748 1,780 1,716
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $11.76 $11.51 $10.28 $10.21
End of period $7.14 $11.76 $11.51 $10.28
Accumulation units outstanding
at the end of period 2,490 2,241 2,237 2,249
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.03 $14.72 $12.87 $12.49
End of period $8.88 $14.03 $14.72 $12.87
Accumulation units outstanding
at the end of period 2,041 1,870 1,750 1,790
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period $13.89 $12.89 $11.80 $11.01
End of period $7.74 $13.89 $12.89 $11.80
Accumulation units outstanding
at the end of period - - - -
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $13.51 $12.82 $12.73 $12.79
End of period $13.20 $13.51 $12.82 $12.73
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.27 $12.75 $11.85 $11.89
End of period $8.27 $12.27 $12.75 $11.85
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.67 $13.80 $12.27 $11.39
End of period $8.69 $14.67 $13.80 $12.27
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division(781)
Accumulation unit value:
Beginning of period $11.28 $10.90 $10.38 $10.11
End of period $9.47 $11.28 $10.90 $10.38
Accumulation units outstanding
at the end of period 9,487 9,487 6,155 6,155
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.55 $13.75 $12.37 $11.61
End of period $9.15 $14.55 $13.75 $12.37
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.06 $11.50 $10.70 $10.49
End of period $9.25 $12.06 $11.50 $10.70
Accumulation units outstanding
at the end of period 9,145 9,145 6,035 6,035
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $13.82 $13.07 $11.97 $11.59
End of period $9.75 $13.82 $13.07 $11.97
Accumulation units outstanding
at the end of period 6,699 6,704 6,708 6,713
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period $11.20 $10.99 $10.80 $10.79
End of period $11.14 $11.20 $10.99 $10.80
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $27.88 $26.02 $23.50 $22.34
End of period $15.51 $27.88 $26.02 $23.50
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $14.74 $15.02 $12.86 $12.22
End of period $8.54 $14.74 $15.02 $12.86
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.72%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division(781)
Accumulation unit value:
Beginning of period $16.30 $15.26 $12.79 $12.17
End of period $9.37 $16.30 $15.26 $12.79
Accumulation units outstanding
at the end of period 937 1,019 1,087 1,159
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.23 $11.75 $11.19 $10.59
End of period $8.03 $13.23 $11.75 $11.19
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.58 $13.45 $12.07 $11.08
End of period $8.55 $14.58 $13.45 $12.07
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $11.63 $11.07 $10.27 $9.48
End of period $8.12 $11.63 $11.07 $10.27
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period $26.04 N/A N/A N/A
End of period $14.69 N/A N/A N/A
Accumulation units outstanding
at the end of period 179 N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division(781)
Accumulation unit value:
Beginning of period $25.46 $23.85 $23.42 $22.07
End of period $14.65 $25.46 $23.85 $23.42
Accumulation units outstanding
at the end of period - - 208 208
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division(781)
Accumulation unit value:
Beginning of period $22.31 $20.46 $17.50 $17.53
End of period $13.40 $22.31 $20.46 $17.50
Accumulation units outstanding
at the end of period - - 275 275
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period $9.80 $10.43 N/A N/A
End of period $5.67 $9.80 N/A N/A
Accumulation units outstanding
at the end of period - 609 N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division(781)
Accumulation unit value:
Beginning of period $12.60 $12.60 $11.19 $11.10
End of period $7.84 $12.60 $12.60 $11.19
Accumulation units outstanding
at the end of period 739 804 857 914
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(781)
Accumulation unit value:
Beginning of period $15.44 $14.17 $11.03 $9.87
End of period $8.34 $15.44 $14.17 $11.03
Accumulation units outstanding
at the end of period 996 1,495 1,482 1,558
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $17.63 $18.60 $16.68 $15.40
End of period $10.47 $17.63 $18.60 $16.68
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $10.89 $11.52 $11.10 N/A
End of period $6.87 $10.89 $11.52 N/A
Accumulation units outstanding
at the end of period 243 - 885 N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $11.07 $10.69 $10.59 $10.67
End of period $11.17 $11.07 $10.69 $10.59
Accumulation units outstanding
at the end of period 1,322 1,717 1,583 1,469
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period $5.61 $5.65 N/A N/A
End of period $3.29 $5.61 N/A N/A
Accumulation units outstanding
at the end of period - 993 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division(1450)
Accumulation unit value:
Beginning of period $10.23 $10.86 N/A N/A
End of period $5.04 $10.23 N/A N/A
Accumulation units outstanding
at the end of period - 521 N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.39 $10.88 $10.52 $10.41
End of period $8.51 $11.39 $10.88 $10.52
Accumulation units outstanding
at the end of period 685 685 683 682
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(781)
Accumulation unit value:
Beginning of period $18.93 $17.63 $14.42 $13.41
End of period $10.52 $18.93 $17.63 $14.42
Accumulation units outstanding
at the end of period 307 234 258 285
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.37 $13.54 $11.71 $11.27
End of period $7.47 $13.37 $13.54 $11.71
Accumulation units outstanding
at the end of period 5,780 5,261 3,147 3,398
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $33.42 $25.39 $21.59 $19.52
End of period $20.21 $33.42 $25.39 $21.59
Accumulation units outstanding
at the end of period 430 346 359 358
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(781)
Accumulation unit value:
Beginning of period $15.05 $14.39 $13.48 $12.68
End of period $9.14 $15.05 $14.39 $13.48
Accumulation units outstanding
at the end of period 101 87 91 93
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $11.74 $11.50 $10.27 $10.20
End of period $7.12 $11.74 $11.50 $10.27
Accumulation units outstanding
at the end of period 1,330 1,118 1,144 1,195
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(781)
Accumulation unit value:
Beginning of period $14.01 $14.70 $12.86 $12.48
End of period $8.87 $14.01 $14.70 $12.86
Accumulation units outstanding
at the end of period 69 61 60 64
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.18 $17.28 N/A N/A
End of period $8.79 $17.18 N/A N/A
Accumulation units outstanding
at the end of period 1,752 1,863 N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $13.88 $12.88 $11.80 $11.08
End of period $7.73 $13.88 $12.88 $11.80
Accumulation units outstanding
at the end of period 760 719 732 736
JNL/Oppenheimer Global Growth
Division(1067)
Accumulation unit value:
Beginning of period $14.08 $13.61 $13.15 N/A
End of period $8.10 $14.08 $13.61 N/A
Accumulation units outstanding
at the end of period - - - N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period $11.38 N/A N/A N/A
End of period $10.12 N/A N/A N/A
Accumulation units outstanding
at the end of period 401 N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.48 $12.80 $12.71 $12.74
End of period $13.17 $13.48 $12.80 $12.71
Accumulation units outstanding
at the end of period 1,544 1,890 1,983 1,978
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $18.01 $19.61 $17.82 $17.27
End of period $9.25 $18.01 $19.61 $17.82
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $14.51 $13.72 $12.35 $11.81
End of period $9.13 $14.51 $13.72 $12.35
Accumulation units outstanding
at the end of period 1,714 1,864 1,988 2,119
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.05 $11.50 $10.70 $10.41
End of period $9.24 $12.05 $11.50 $10.70
Accumulation units outstanding
at the end of period 9,040 9,040 9,040 9,040
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $13.79 $13.04 $11.94 $11.37
End of period $9.73 $13.79 $13.04 $11.94
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $24.04 $22.99 $20.78 $20.04
End of period $18.55 $24.04 $22.99 $20.78
Accumulation units outstanding
at the end of period 92 - - -
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $20.75 $19.77 $16.80 $15.80
End of period $13.46 $20.75 $19.77 $16.80
Accumulation units outstanding
at the end of period - 295 - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(781)
Accumulation unit value:
Beginning of period $27.80 $25.94 $23.45 $22.37
End of period $15.46 $27.80 $25.94 $23.45
Accumulation units outstanding
at the end of period 997 1,084 411 354
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $38.80 $34.02 $32.73 $29.31
End of period $22.41 $38.80 $34.02 $32.73
Accumulation units outstanding
at the end of period 79 - 105 105
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $14.72 $15.00 $12.84 $12.20
End of period $8.53 $14.72 $15.00 $12.84
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.80%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $12.59 $15.23 $11.48 $10.93
End of period $7.87 $12.59 $15.23 $11.48
Accumulation units outstanding
at the end of period - - - -
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $16.13 $15.12 $12.68 $11.50
End of period $9.27 $16.13 $15.12 $12.68
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Large Cap Growth Division(748)
Accumulation unit value:
Beginning of period $13.17 $11.70 $11.16 $10.56
End of period $7.98 $13.17 $11.70 $11.16
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.51 $13.40 $12.03 $11.05
End of period $8.50 $14.51 $13.40 $12.03
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $11.56 $11.01 $10.22 $9.44
End of period $8.06 $11.56 $11.01 $10.22
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period $25.20 $23.63 $23.22 $22.26
End of period $14.49 $25.20 $23.63 $23.22
Accumulation units outstanding
at the end of period - - - -
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division(748)
Accumulation unit value:
Beginning of period $16.44 $16.81 $15.38 $15.09
End of period $9.74 $16.44 $16.81 $15.38
Accumulation units outstanding
at the end of period - - - -
JNL/Eagle SmallCap Equity Division(748)
Accumulation unit value:
Beginning of period $22.11 $20.29 $17.37 $16.71
End of period $13.27 $22.11 $20.29 $17.37
Accumulation units outstanding
at the end of period - - - -
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $17.20 $16.54 $16.24 $16.34
End of period $15.86 $17.20 $16.54 $16.24
Accumulation units outstanding
at the end of period 2,766 3,008 3,323 3,147
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.32 $14.07 $10.97 $9.32
End of period $8.27 $15.32 $14.07 $10.97
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $14.08 $13.61 $13.55 $13.68
End of period $14.58 $14.08 $13.61 $13.55
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(781)
Accumulation unit value:
Beginning of period $17.49 $18.47 $16.58 $15.79
End of period $10.38 $17.49 $18.47 $16.58
Accumulation units outstanding
at the end of period 215 228 239 251
JNL/Lazard Small Cap Equity Division(781)
Accumulation unit value:
Beginning of period $13.93 $15.37 $13.53 $13.49
End of period $8.32 $13.93 $15.37 $13.53
Accumulation units outstanding
at the end of period 260 277 290 304
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $10.82 $11.45 $11.04 N/A
End of period $6.82 $10.82 $11.45 N/A
Accumulation units outstanding
at the end of period 4,747 4,987 4,037 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.02 $10.65 $10.56 $10.68
End of period $11.11 $11.02 $10.65 $10.56
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(748)
Accumulation unit value:
Beginning of period $8.94 $8.86 $7.80 $7.60
End of period $5.41 $8.94 $8.86 $7.80
Accumulation units outstanding
at the end of period - - - -
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $18.84 $17.56 $14.38 $12.72
End of period $10.46 $18.84 $17.56 $14.38
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.33 $13.52 $11.70 $11.24
End of period $7.45 $13.33 $13.52 $11.70
Accumulation units outstanding
at the end of period 27,724 28,642 28,515 28,819
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $33.19 $25.23 $21.48 $20.59
End of period $20.05 $33.19 $25.23 $21.48
Accumulation units outstanding
at the end of period 168 179 187 197
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $14.98 $14.34 $13.44 $12.01
End of period $9.09 $14.98 $14.34 $13.44
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.68 $11.46 $10.24 $9.95
End of period $7.08 $11.68 $11.46 $10.24
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division(1403)
Accumulation unit value:
Beginning of period $8.76 $9.32 N/A N/A
End of period $5.95 $8.76 N/A N/A
Accumulation units outstanding
at the end of period 5,851 6,349 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $16.79 $18.98 N/A N/A
End of period $9.79 $16.79 N/A N/A
Accumulation units outstanding
at the end of period 3,116 3,324 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $13.94 $14.65 $12.82 $12.12
End of period $8.82 $13.94 $14.65 $12.82
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth
Division(781)
Accumulation unit value:
Beginning of period $14.01 $13.55 $11.91 $10.70
End of period $8.05 $14.01 $13.55 $11.91
Accumulation units outstanding
at the end of period 307 326 342 359
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.37 $12.71 $12.63 $12.67
End of period $13.06 $13.37 $12.71 $12.63
Accumulation units outstanding
at the end of period 791 839 1,278 1,220
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(781)
Accumulation unit value:
Beginning of period $12.15 $12.63 $11.76 $11.98
End of period $8.18 $12.15 $12.63 $11.76
Accumulation units outstanding
at the end of period 302 321 336 352
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division(748)
Accumulation unit value:
Beginning of period $17.82 $19.43 $17.67 $17.14
End of period $9.15 $17.82 $19.43 $17.67
Accumulation units outstanding
at the end of period - - - -
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.52 $13.68 $12.17 $11.31
End of period $8.59 $14.52 $13.68 $12.17
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period $11.24 $10.88 $10.37 $10.29
End of period $9.43 $11.24 $10.88 $10.37
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.40 $13.63 $12.28 $11.53
End of period $9.05 $14.40 $13.63 $12.28
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $13.68 $12.95 $11.87 $11.31
End of period $9.64 $13.68 $12.95 $11.87
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(781)
Accumulation unit value:
Beginning of period $23.80 $22.77 $20.60 $20.44
End of period $18.35 $23.80 $22.77 $20.60
Accumulation units outstanding
at the end of period 172 183 192 201
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.05 $10.85 $10.68 $10.68
End of period $10.98 $11.05 $10.85 $10.68
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division(748)
Accumulation unit value:
Beginning of period $20.66 $19.71 $16.76 $15.77
End of period $13.39 $20.66 $19.71 $16.76
Accumulation units outstanding
at the end of period 215 229 - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(748)
Accumulation unit value:
Beginning of period $27.52 $25.70 $23.25 $22.11
End of period $15.29 $27.52 $25.70 $23.25
Accumulation units outstanding
at the end of period - - - -
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $38.41 $33.70 $32.45 $29.08
End of period $22.17 $38.41 $33.70 $32.45
Accumulation units outstanding
at the end of period 111 118 124 130
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $14.63 $14.92 $12.78 $12.16
End of period $8.47 $14.63 $14.92 $12.78
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.81%
[Enlarge/Download Table]
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division(748)
Accumulation unit value:
Beginning of period $11.55 $11.01 $10.57 $9.44
End of period $8.05 $11.55 $11.01 $10.22
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $17.18 $16.52 $16.23 $16.24
End of period $15.84 $17.18 $16.52 $16.23
Accumulation units outstanding
at the end of period - - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.30 $14.06 $10.96 $9.32
End of period $8.26 $15.30 $14.06 $10.96
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1113)
Accumulation unit value:
Beginning of period $10.81 $11.45 $10.48 N/A
End of period $6.81 $10.81 $11.45 N/A
Accumulation units outstanding
at the end of period - - - N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period $10.76 $13.39 $11.61 $10.93
End of period $5.16 $10.76 $13.39 $11.61
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period $11.30 $10.81 $10.46 $9.83
End of period $8.44 $11.30 $10.81 $10.46
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $18.83 $17.55 $14.37 $12.72
End of period $10.45 $18.83 $17.55 $14.37
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division
Accumulation unit value:
Beginning of period $13.33 $13.52 $11.70 $10.60
End of period $7.45 $13.33 $13.52 $11.70
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(748)
Accumulation unit value:
Beginning of period $33.16 $25.21 $21.47 $16.31
End of period $20.03 $33.16 $25.21 $21.47
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $14.97 $14.33 $13.43 $12.01
End of period $9.08 $14.97 $14.33 $13.43
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.68 $11.45 $10.23 $9.95
End of period $7.08 $11.68 $11.45 $10.23
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $13.93 $14.64 $12.81 $12.12
End of period $8.81 $13.93 $14.64 $12.81
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division(748)
Accumulation unit value:
Beginning of period $13.84 $12.86 $11.79 $10.81
End of period $7.70 $13.84 $12.86 $11.79
Accumulation units outstanding
at the end of period - - - -
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $14.00 $13.54 $11.91 $10.35
End of period $8.05 $14.00 $13.54 $11.91
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(748)
Accumulation unit value:
Beginning of period $13.36 $12.70 $12.62 $12.69
End of period $13.04 $13.36 $12.70 $12.62
Accumulation units outstanding
at the end of period - - - -
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $12.13 $12.62 $11.75 $11.79
End of period $8.17 $12.13 $12.62 $11.75
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division(748)
Accumulation unit value:
Beginning of period $11.24 $10.87 $10.37 $10.24
End of period $9.42 $11.24 $10.87 $10.37
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.39 $13.61 $12.27 $11.52
End of period $9.04 $14.39 $13.61 $12.27
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.01 $11.47 $10.69 $10.48
End of period $9.20 $12.01 $11.47 $10.69
Accumulation units outstanding
at the end of period 6,127 6,127 6,127 6,127
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $13.67 $12.94 $11.86 $11.30
End of period $9.63 $13.67 $12.94 $11.86
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division(748)
Accumulation unit value:
Beginning of period $23.77 $22.75 $20.58 $19.86
End of period $18.32 $23.77 $22.75 $20.58
Accumulation units outstanding
at the end of period - - - -
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $11.04 $10.84 $10.67 $10.67
End of period $10.97 $11.04 $10.84 $10.67
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.82%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period $11.41 N/A N/A N/A
End of period $7.86 N/A N/A N/A
Accumulation units outstanding
at the end of period 167 N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division(1059)
Accumulation unit value:
Beginning of period $10.80 $11.44 $11.03 N/A
End of period $6.80 $10.80 $11.44 N/A
Accumulation units outstanding
at the end of period 529 870 863 N/A
JNL/MCM Bond Index Division(748)
Accumulation unit value:
Beginning of period $11.00 $10.63 $10.55 $10.67
End of period $11.09 $11.00 $10.63 $10.55
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period $10.54 N/A N/A N/A
End of period $8.43 N/A N/A N/A
Accumulation units outstanding
at the end of period 155 N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $18.82 $17.54 $14.36 $12.72
End of period $10.44 $18.82 $17.54 $14.36
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division(1144)
Accumulation unit value:
Beginning of period $13.32 $13.42 N/A N/A
End of period $7.44 $13.32 N/A N/A
Accumulation units outstanding
at the end of period 2,160 2,463 N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division(1450)
Accumulation unit value:
Beginning of period $12.25 $11.88 N/A N/A
End of period $6.96 $12.25 N/A N/A
Accumulation units outstanding
at the end of period 211 211 N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $33.13 $25.20 $21.45 $18.07
End of period $20.02 $33.13 $25.20 $21.45
Accumulation units outstanding
at the end of period 69 81 95 95
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division(748)
Accumulation unit value:
Beginning of period $14.96 $14.32 $13.43 $12.00
End of period $9.08 $14.96 $14.32 $13.43
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P 500 Index Division(748)
Accumulation unit value:
Beginning of period $11.67 $11.44 $10.23 $9.94
End of period $7.07 $11.67 $11.44 $10.23
Accumulation units outstanding
at the end of period - - - -
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division(1224)
Accumulation unit value:
Beginning of period $16.76 $18.95 N/A N/A
End of period $9.77 $16.76 N/A N/A
Accumulation units outstanding
at the end of period - 136 N/A N/A
JNL/MCM Small Cap Index Division(748)
Accumulation unit value:
Beginning of period $13.92 $14.63 $12.81 $12.12
End of period $8.81 $13.92 $14.63 $12.81
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division(1450)
Accumulation unit value:
Beginning of period $17.12 $17.23 N/A N/A
End of period $8.75 $17.12 N/A N/A
Accumulation units outstanding
at the end of period 871 944 N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period $13.84 $12.85 $11.79 $10.36
End of period $7.70 $13.84 $12.85 $11.79
Accumulation units outstanding
at the end of period 926 968 1,005 -
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period $9.16 N/A N/A N/A
End of period $6.59 N/A N/A N/A
Accumulation units outstanding
at the end of period 631 N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division(748)
Accumulation unit value:
Beginning of period $14.49 $13.65 $12.15 $11.29
End of period $8.57 $14.49 $13.65 $12.15
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.37 $13.60 $12.26 $11.52
End of period $9.03 $14.37 $13.60 $12.26
Accumulation units outstanding
at the end of period 2,680 2,801 2,908 -
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $13.65 $12.93 $11.85 $11.29
End of period $9.62 $13.65 $12.93 $11.85
Accumulation units outstanding
at the end of period 2,792 2,919 3,030 -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.86%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division(781)
Accumulation unit value:
Beginning of period $11.51 $10.97 $10.19 $10.14
End of period $8.02 $11.51 $10.97 $10.19
Accumulation units outstanding
at the end of period 631 631 631 631
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division(781)
Accumulation unit value:
Beginning of period $11.29 $12.38 $10.82 $11.05
End of period $7.34 $11.29 $12.38 $10.82
Accumulation units outstanding
at the end of period 579 579 579 579
JNL/Goldman Sachs Core Plus Bond
Division(781)
Accumulation unit value:
Beginning of period $17.07 $16.42 $16.14 $15.99
End of period $15.73 $17.07 $16.42 $16.14
Accumulation units outstanding
at the end of period 400 400 400 400
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division(748)
Accumulation unit value:
Beginning of period $15.23 $14.00 $10.91 $9.28
End of period $8.22 $15.23 $14.00 $10.91
Accumulation units outstanding
at the end of period - - - -
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division(781)
Accumulation unit value:
Beginning of period $10.97 $10.61 $10.54 $10.72
End of period $11.06 $10.97 $10.61 $10.54
Accumulation units outstanding
at the end of period 2,679 3,313 3,246 3,047
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector
Division(781)
Accumulation unit value:
Beginning of period $9.43 $10.53 $9.55 $9.70
End of period $6.30 $9.43 $10.53 $9.55
Accumulation units outstanding
at the end of period 660 660 660 660
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(781)
Accumulation unit value:
Beginning of period $10.71 $13.34 $11.57 $11.66
End of period $5.14 $10.71 $13.34 $11.57
Accumulation units outstanding
at the end of period 549 549 549 549
JNL/MCM Healthcare Sector Division(781)
Accumulation unit value:
Beginning of period $11.26 $10.77 $10.43 $10.32
End of period $8.40 $11.26 $10.77 $10.43
Accumulation units outstanding
at the end of period 621 621 621 621
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division(748)
Accumulation unit value:
Beginning of period $18.77 $17.50 $14.34 $12.70
End of period $10.41 $18.77 $17.50 $14.34
Accumulation units outstanding
at the end of period - - - -
JNL/MCM JNL 5 Division(781)
Accumulation unit value:
Beginning of period $13.31 $13.50 $11.69 $11.44
End of period $7.43 $13.31 $13.50 $11.69
Accumulation units outstanding
at the end of period 10,816 10,765 10,890 11,427
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division(781)
Accumulation unit value:
Beginning of period $33.02 $25.12 $21.40 $21.99
End of period $19.94 $33.02 $25.12 $21.40
Accumulation units outstanding
at the end of period 291 291 291 291
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division(781)
Accumulation unit value:
Beginning of period $13.29 $12.64 $12.57 $12.44
End of period $12.97 $13.29 $12.64 $12.57
Accumulation units outstanding
at the end of period 515 515 515 515
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division(781)
Accumulation unit value:
Beginning of period $11.22 $10.86 $10.36 $10.34
End of period $9.40 $11.22 $10.86 $10.36
Accumulation units outstanding
at the end of period 1,239 1,239 1,239 1,239
JNL/S&P Managed Growth Division(748)
Accumulation unit value:
Beginning of period $14.32 $13.55 $12.22 $11.48
End of period $8.99 $14.32 $13.55 $12.22
Accumulation units outstanding
at the end of period - - - -
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $12.00 $11.46 $10.68 $10.38
End of period $9.18 $12.00 $11.46 $10.68
Accumulation units outstanding
at the end of period 3,765 4,095 4,375 7,743
JNL/S&P Managed Moderate Growth
Division(781)
Accumulation unit value:
Beginning of period $13.60 $12.88 $11.82 $11.46
End of period $9.58 $13.60 $12.88 $11.82
Accumulation units outstanding
at the end of period 3,247 3,247 3,247 3,247
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division(781)
Accumulation unit value:
Beginning of period $20.60 $19.66 $16.73 $16.88
End of period $13.34 $20.60 $19.66 $16.73
Accumulation units outstanding
at the end of period 379 379 379 379
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division(781)
Accumulation unit value:
Beginning of period $27.31 $25.52 $23.10 $23.42
End of period $15.17 $27.31 $25.52 $23.10
Accumulation units outstanding
at the end of period 273 273 273 273
JNL/T.Rowe Price Mid-Cap Growth
Division(781)
Accumulation unit value:
Beginning of period $38.12 $33.47 $32.25 $32.24
End of period $21.99 $38.12 $33.47 $32.25
Accumulation units outstanding
at the end of period 199 199 199 199
JNL/T.Rowe Price Value Division(748)
Accumulation unit value:
Beginning of period $14.56 $14.86 $12.74 $12.12
End of period $8.42 $14.56 $14.86 $12.74
Accumulation units outstanding
at the end of period - - - -
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 2.97%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division(781)
Accumulation unit value:
Beginning of period $8.81 $8.75 $7.71 $7.72
End of period $5.32 $8.81 $8.75 $7.71
Accumulation units outstanding
at the end of period - 2,558 2,558 2,558
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Healthcare Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division(781)
Accumulation unit value:
Beginning of period $11.57 $11.36 $10.17 $10.12
End of period $7.00 $11.57 $11.36 $10.17
Accumulation units outstanding
at the end of period - 1,953 1,953 1,953
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Oppenheimer Global Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Value Division(781)
Accumulation unit value:
Beginning of period $14.44 $14.75 $12.66 $12.43
End of period $8.34 $14.44 $14.75 $12.66
Accumulation units outstanding
at the end of period - 795 795 795
ACCUMULATION UNIT VALUES
CONTRACT WITH ENDORSEMENTS - 3.06%
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/AIM Global Real Estate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM International Growth Division(748)
Accumulation unit value:
Beginning of period $15.61 $14.66 $12.33 $11.21
End of period $8.94 $15.61 $14.66 $12.33
Accumulation units outstanding
at the end of period - - - -
JNL/AIM Large Cap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/AIM Small Cap Growth Division(748)
Accumulation unit value:
Beginning of period $14.27 $13.22 $11.90 $10.96
End of period $8.34 $14.27 $13.22 $11.90
Accumulation units outstanding
at the end of period - - - -
JNL/Capital Guardian Global Balanced
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian Global Diversified
Research Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian International
Small Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Capital Guardian U.S. Growth
Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Global Natural
Resources Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Credit Suisse Long/Short Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Eagle SmallCap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Founding
Strategy Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Global
Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Income Division
Accumulation unit value:
Beginning of period $10.62 $11.01 N/A N/A
End of period $7.24 $10.62 N/A N/A
Accumulation units outstanding
at the end of period 567 568 N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/Franklin Templeton Mutual
Shares Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Franklin Templeton Small Cap
Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Core Plus Bond
Division(748)
Accumulation unit value:
Beginning of period $16.65 $16.04 $15.80 $15.85
End of period $15.31 $16.65 $16.04 $15.80
Accumulation units outstanding
at the end of period 380 - - -
JNL/Goldman Sachs Emerging Markets
Debt Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Goldman Sachs Mid Cap Value
Division
Accumulation unit value:
Beginning of period $12.27 N/A N/A N/A
End of period $7.74 N/A N/A N/A
Accumulation units outstanding
at the end of period 241 N/A N/A N/A
JNL/Goldman Sachs Short Duration
Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/JPMorgan International Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan MidCap Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/JPMorgan U.S. Government &
Quality Bond Division(748)
Accumulation unit value:
Beginning of period $13.62 $13.20 $13.18 $13.34
End of period $14.07 $13.62 $13.20 $13.18
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Emerging Markets Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Lazard Mid Cap Equity Division(748)
Accumulation unit value:
Beginning of period $17.05 $18.05 $16.25 $15.04
End of period $10.09 $17.05 $18.05 $16.25
Accumulation units outstanding
at the end of period - - - -
JNL/Lazard Small Cap Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/M&G Global Basics Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/M&G Global Leaders Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Mellon Capital Management
(MCM) 10 x 10 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Bond Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Communications Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Consumer Brands Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Dow Dividend Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Enhanced S&P 500 Stock
Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM European 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Financial Sector Division(748)
Accumulation unit value:
Beginning of period $10.53 $13.15 $11.42 $10.88
End of period $5.04 $10.53 $13.15 $11.42
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Healthcare Sector Division(748)
Accumulation unit value:
Beginning of period $11.07 $10.61 $10.30 $9.76
End of period $8.24 $11.07 $10.61 $10.30
Accumulation units outstanding
at the end of period - - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Index 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM International Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM JNL Optimized 5 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Nasdaq 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM NYSE International 25 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Oil & Gas Sector Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Pacific Rim 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 24 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 400 MidCap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P 500 Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM S&P SMid 60 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/MCM Select Small-Cap Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Small Cap Index Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM Technology Sector Division(748)
Accumulation unit value:
Beginning of period $6.13 $5.52 $5.21 $5.05
End of period $3.37 $6.13 $5.52 $5.21
Accumulation units outstanding
at the end of period - - - -
JNL/MCM Value Line 30 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/MCM VIP Division(781)
Accumulation unit value:
Beginning of period $13.73 $12.78 $11.75 $10.85
End of period $7.62 $13.73 $12.78 $11.75
Accumulation units outstanding
at the end of period - - - 977
JNL/Oppenheimer Global Growth
Division(748)
Accumulation unit value:
Beginning of period $13.76 $13.35 $11.77 $10.26
End of period $7.89 $13.76 $13.35 $11.77
Accumulation units outstanding
at the end of period 228 - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PAM Asia ex-Japan Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PAM China-India Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Real Return Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PIMCO Total Return Bond Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Core Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America High Yield Bond
Division(748)
Accumulation unit value:
Beginning of period $11.84 $12.35 $11.52 $11.59
End of period $7.95 $11.84 $12.35 $11.52
Accumulation units outstanding
at the end of period 246 - - -
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/PPM America Mid Cap Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Small Cap Value
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/PPM America Value Equity Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Red Rocks Listed Private Equity
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P 4 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Competitive Advantage Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Disciplined Growth Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Disciplined Moderate Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Dividend Income & Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Intrinsic Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Aggressive Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Managed Conservative Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Managed Growth Division(781)
Accumulation unit value:
Beginning of period $14.04 $13.32 $12.03 $11.54
End of period $8.80 $14.04 $13.32 $12.03
Accumulation units outstanding
at the end of period 3,112 - - 3,597
JNL/S&P Managed Moderate Division(781)
Accumulation unit value:
Beginning of period $11.92 $11.41 $10.65 $10.26
End of period $9.10 $11.92 $11.41 $10.65
Accumulation units outstanding
at the end of period - - - 1,034
JNL/S&P Managed Moderate Growth
Division(748)
Accumulation unit value:
Beginning of period $13.34 $12.66 $11.63 $11.11
End of period $9.38 $13.34 $12.66 $11.63
Accumulation units outstanding
at the end of period 478 - - -
JNL/S&P Retirement 2015 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement 2020 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/S&P Retirement 2025 Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Retirement Income Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/S&P Total Yield Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Balanced Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/Select Money Market Division(748)
Accumulation unit value:
Beginning of period $10.69 $10.53 $10.39 $10.42
End of period $10.60 $10.69 $10.53 $10.39
Accumulation units outstanding
at the end of period - - - -
JNL/Select Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
INVESTMENT DIVISIONS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2008 2007 2006 2005
---- ---- ---- ----
JNL/T.Rowe Price Established Growth
Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
JNL/T.Rowe Price Mid-Cap Growth
Division(748)
Accumulation unit value:
Beginning of period $37.17 $32.70 $31.57 $27.67
End of period $21.40 $37.17 $32.70 $31.57
Accumulation units outstanding
at the end of period 91 - - -
JNL/T.Rowe Price Value Division
Accumulation unit value:
Beginning of period N/A N/A N/A N/A
End of period N/A N/A N/A N/A
Accumulation units outstanding
at the end of period N/A N/A N/A N/A
1 - September 16, 1996 66 - March 4, 2002 131 - June 7, 2002
2 - April 1, 1998 67 - March 5, 2002 132 - June 10, 2002
3 - April 8, 1998 68 - March 6, 2002 133 - June 11, 2002
4 - April 9, 1998 69 - March 7, 2002 134 - June 12, 2002
5 - April 13, 1998 70 - March 8, 2002 135 - June 14, 2002
6 - April 15, 1998 71 - March 11, 2002 136 - June 17, 2002
7 - January 21, 1999 72 - March 12, 2002 137 - June 20, 2002
8 - January 29, 1999 73 - March 13, 2002 138 - June 21, 2002
9 - February 9, 1999 74 - March 14, 2002 139 - June 24, 2002
10 - March 22, 1999 75 - March 15, 2002 140 - June 25, 2002
11 - April 1, 1999 76 - March 18, 2002 141 - June 26, 2002
12 - April 8, 1999 77 - March 19, 2002 142 - June 27, 2002
13 - April 9, 1999 78 - March 20, 2002 143 - June 28, 2002
14 - April 13, 1999 79 - March 21, 2002 144 - July 1, 2002
15 - April 15, 1999 80 - March 22, 2002 145 - July 2, 2002
16 - April 22, 1999 81 - March 25, 2002 146 - July 3, 2002
17 - July 2, 1999 82 - March 26, 2002 147 - July 5, 2002
18 - August 16, 1999 83 - March 27, 2002 148 - July 8, 2002
19 - May 1, 2000 84 - March 28, 2002 149 - July 9, 2002
20 - November 3, 2000 85 - April 1, 2002 150 - July 11, 2002
21 - November 17, 2000 86 - April 2, 2002 151 - July 12, 2002
22 - November 27, 2000 87 - April 3, 2002 152 - July 15, 2002
23 - December 14, 2000 88 - April 4, 2002 153 - July 16, 2002
24 - December 19, 2000 89 - April 8, 2002 154 - July 18, 2002
25 - February 12, 2001 90 - April 9, 2002 155 - July 22, 2002
26 - March 28, 2001 91 - April 10, 2002 156 - July 24, 2002
27 - May 1, 2001 92 - April 11, 2002 157 - July 25, 2002
28 - June 7, 2001 93 - April 12, 2002 158 - July 26, 2002
29 - August 15, 2001 94 - April 15, 2002 159 - July 29, 2002
30 - October 29, 2001 95 - April 16, 2002 160 - July 30, 2002
31 - December 14, 2001 96 - April 17, 2002 161 - July 31, 2002
32 - January 3, 2002 97 - April 18, 2002 162 - August 1, 2002
33 - January 7, 2002 98 - April 19, 2002 163 - August 5, 2002
34 - January 10, 2002 99 - April 22, 2002 164 - August 6, 2002
35 - January 11, 2002 100 - April 23, 2002 165 - August 7, 2002
36 - January 14, 2002 101 - April 24, 2002 166 - August 8, 2002
37 - January 15, 2002 102 - April 25, 2002 167 - August 12, 2002
38 - January 18, 2002 103 - April 26, 2002 168 - August 13, 2002
39 - January 22, 2002 104 - April 29, 2002 169 - August 14, 2002
40 - January 23, 2002 105 - April 30, 2002 170 - August 15, 2002
41 - January 25, 2002 106 - May 1, 2002 171 - August 16, 2002
42 - January 28, 2002 107 - May 2, 2002 172 - August 19, 2002
43 - January 29, 2002 108 - May 3, 2002 173 - August 20, 2002
44 - January 30, 2002 109 - May 6, 2002 174 - August 23, 2002
45 - January 31, 2002 110 - May 7, 2002 175 - August 26, 2002
46 - February 1, 2002 111 - May 8, 2002 176 - August 28, 2002
47 - February 4, 2002 112 - May 9, 2002 177 - August 29, 2002
48 - February 5, 2002 113 - May 10, 2002 178 - August 30, 2002
49 - February 6, 2002 114 - May 13, 2002 179 - September 3, 2002
50 - February 7, 2002 115 - May 14, 2002 180 - September 4, 2002
51 - February 8, 2002 116 - May 15, 2002 181 - September 5, 2002
52 - February 11, 2002 117 - May 16, 2002 182 - September 6, 2002
53 - February 12, 2002 118 - May 17, 2002 183 - September 10, 2002
54 - February 13, 2002 119 - May 20, 2002 184 - September 11, 2002
55 - February 14, 2002 120 - May 21, 2002 185 - September 12, 2002
56 - February 15, 2002 121 - May 23, 2002 186 - September 13, 2002
57 - February 19, 2002 122 - May 24, 2002 187 - September 16, 2002
58 - February 20, 2002 123 - May 28, 2002 188 - September 17, 2002
59 - February 21, 2002 124 - May 29, 2002 189 - September 18, 2002
60 - February 22, 2002 125 - May 30, 2002 190 - September 19, 2002
61 - February 25, 2002 126 - May 31, 2002 191 - September 20, 2002
62 - February 26, 2002 127 - June 3, 2002 192 - September 23, 2002
63 - February 27, 2002 128 - June 4, 2002 193 - September 24, 2002
64 - February 28, 2002 129 - June 5, 2002 194 - September 25, 2002
65 - March 1, 2002 130 - June 6, 2002 195 - September 26, 2002
196 - September 27, 2002 261 - January 31, 2003 326 - May 12, 2003
197 - September 30, 2002 262 - February 3, 2003 327 - May 13, 2003
198 - October 1, 2002 263 - February 4, 2003 328 - May 14, 2003
199 - October 2, 2002 264 - February 5, 2003 329 - May 15, 2003
200 - October 3, 2002 265 - February 6, 2003 330 - May 19, 2003
201 - October 4, 2002 266 - February 7, 2003 331 - May 20, 2003
202 - October 7, 2002 267 - February 12, 2003 332 - May 21, 2003
203 - October 8, 2002 268 - February 13, 2003 333 - May 22, 2003
204 - October 9, 2002 269 - February 14, 2003 334 - May 23, 2003
205 - October 10, 2002 270 - February 18, 2003 335 - May 27, 2003
206 - October 11, 2002 271 - February 19, 2003 336 - May 28, 2003
207 - October 14, 2002 272 - February 20, 2003 337 - May 29, 2003
208 - October 15, 2002 273 - February 21, 2003 338 - May 30, 2003
209 - October 17, 2002 274 - February 24, 2003 339 - June 2, 2003
210 - October 18, 2002 275 - February 25, 2003 340 - June 3, 2003
211 - October 21, 2002 276 - February 26, 2003 341 - June 4, 2003
212 - October 22, 2002 277 - February 27, 2003 342 - June 5, 2003
213 - October 24, 2002 278 - February 28, 2003 343 - June 6, 2003
214 - October 25, 2002 279 - March 3, 2003 344 - June 9, 2003
215 - October 28, 2002 280 - March 4, 2003 345 - June 10, 2003
216 - October 29, 2002 281 - March 5, 2003 346 - June 11, 2003
217 - October 31, 2002 282 - March 6, 2003 347 - June 12, 2003
218 - November 1, 2002 283 - March 7, 2003 348 - June 13, 2003
219 - November 4, 2002 284 - March 10, 2003 349 - June 16, 2003
220 - November 5, 2002 285 - March 11, 2003 350 - June 17, 2003
221 - November 6, 2002 286 - March 12, 2003 351 - June 18, 2003
222 - November 7, 2002 287 - March 13, 2003 352 - June 19, 2003
223 - November 8, 2002 288 - March 14, 2003 353 - June 20, 2003
224 - November 12, 2002 289 - March 17, 2003 354 - June 23, 2003
225 - November 13, 2002 290 - March 18, 2003 355 - June 24, 2003
226 - November 14, 2002 291 - March 19, 2003 356 - June 25, 2003
227 - November 15, 2002 292 - March 20, 2003 357 - June 26, 2003
228 - November 18, 2002 293 - March 21, 2003 358 - June 27, 2003
229 - November 19, 2002 294 - March 24, 2003 359 - June 30, 2003
230 - November 20, 2002 295 - March 26, 2003 360 - July 1, 2003
231 - November 22, 2002 296 - March 27, 2003 361 - July 2, 2003
232 - November 25, 2002 297 - March 28, 2003 362 - July 3, 2003
233 - November 26, 2002 298 - March 31, 2003 363 - July 7, 2003
234 - November 27, 2002 299 - April 1, 2003 364 - July 8, 2003
235 - November 29, 2002 300 - April 2, 2003 365 - July 9, 2003
236 - December 2, 2002 301 - April 3, 2003 366 - July 10, 2003
237 - December 3, 2002 302 - April 4, 2003 367 - July 11, 2003
238 - December 5, 2002 303 - April 7, 2003 368 - July 14, 2003
239 - December 6, 2002 304 - April 8, 2003 369 - July 15, 2003
240 - December 9, 2002 305 - April 9, 2003 370 - July 17, 2003
241 - December 16, 2002 306 - April 10, 2003 371 - July 18, 2003
242 - December 17, 2002 307 - April 11, 2003 372 - July 21, 2003
243 - December 18, 2002 308 - April 14, 2003 373 - July 22, 2003
244 - December 19, 2002 309 - April 15, 2003 374 - July 23, 2003
245 - December 23, 2002 310 - April 16, 2003 375 - July 24, 2003
246 - December 27, 2002 311 - April 17, 2003 376 - July 25, 2003
247 - December 30, 2002 312 - April 21, 2003 377 - July 28, 2003
248 - December 31, 2002 313 - April 22, 2003 378 - July 29, 2003
249 - January 2, 2003 314 - April 23, 2003 379 - July 30, 2003
250 - January 3, 2003 315 - April 24, 2003 380 - July 31, 2003
251 - January 6, 2003 316 - April 25, 2003 381 - August 1, 2003
252 - January 9, 2003 317 - April 28, 2003 382 - August 4, 2003
253 - January 16, 2003 318 - April 29, 2003 383 - August 5, 2003
254 - January 17, 2003 319 - April 30, 2003 384 - August 6, 2003
255 - January 21, 2003 320 - May 1, 2003 385 - August 7, 2003
256 - January 22, 2003 321 - May 2, 2003 386 - August 8, 2003
257 - January 24, 2003 322 - May 5, 2003 387 - August 11, 2003
258 - January 27, 2003 323 - May 6, 2003 388 - August 12, 2003
259 - January 28, 2003 324 - May 7, 2003 389 - August 13, 2003
260 - January 30, 2003 325 - May 8, 2003 390 - August 14, 2003
391 - August 15, 2003 456 - November 17, 2003 521 - February 23, 2004
392 - August 18, 2003 457 - November 18, 2003 522 - February 24, 2004
393 - August 19, 2003 458 - November 19, 2003 523 - February 25, 2004
394 - August 20, 2003 459 - November 20, 2003 524 - February 26, 2004
395 - August 21, 2003 460 - November 21, 2003 525 - February 27, 2004
396 - August 22, 2003 461 - November 24, 2003 526 - March 1, 2004
397 - August 25, 2003 462 - November 25, 2003 527 - March 2, 2004
398 - August 26, 2003 463 - November 26, 2003 528 - March 3, 2004
399 - August 27, 2003 464 - November 28, 2003 529 - March 4, 2004
400 - August 28, 2003 465 - December 1, 2003 530 - March 5, 2004
401 - August 29, 2003 466 - December 2, 2003 531 - March 8, 2004
402 - September 2, 2003 467 - December 3, 2003 532 - March 9, 2004
403 - September 3, 2003 468 - December 4, 2003 533 - March 10, 2004
404 - September 5, 2003 469 - December 5, 2003 534 - March 11, 2004
405 - September 8, 2003 470 - December 8, 2003 535 - March 12, 2004
406 - September 9, 2003 471 - December 9, 2003 536 - March 15, 2004
407 - September 10, 2003 472 - December 10, 2003 537 - March 16, 2004
408 - September 11, 2003 473 - December 11, 2003 538 - March 17, 2004
409 - September 12, 2003 474 - December 12, 2003 539 - March 18, 2004
410 - September 15, 2003 475 - December 15, 2003 540 - March 19, 2004
411 - September 16, 2003 476 - December 16, 2003 541 - March 22, 2004
412 - September 17, 2003 477 - December 17, 2003 542 - March 23, 2004
413 - September 18, 2003 478 - December 18, 2003 543 - March 24, 2004
414 - September 19, 2003 479 - December 19, 2003 544 - March 25, 2004
415 - September 22, 2003 480 - December 22, 2003 545 - March 26, 2004
416 - September 23, 2003 481 - December 23, 2003 546 - March 29, 2004
417 - September 24, 2003 482 - December 24, 2003 547 - March 30, 2004
418 - September 25, 2003 483 - December 26, 2003 548 - March 31, 2004
419 - September 26, 2003 484 - December 29, 2003 549 - April 1, 2004
420 - September 29, 2003 485 - December 30, 2003 550 - April 2, 2004
421 - September 30, 2003 486 - December 31, 2003 551 - April 5, 2004
422 - October 1, 2003 487 - January 2, 2004 552 - April 6, 2004
423 - October 2, 2003 488 - January 5, 2004 553 - April 7, 2004
424 - October 3, 2003 489 - January 6, 2004 554 - April 8, 2004
425 - October 4, 2003 490 - January 7, 2004 555 - April 12, 2004
426 - October 6, 2003 491 - January 8, 2004 556 - April 13, 2004
427 - October 7, 2003 492 - January 9, 2004 557 - April 14, 2004
428 - October 8, 2003 493 - January 12, 2004 558 - April 15, 2004
429 - October 9, 2003 494 - January 13, 2004 559 - April 16, 2004
430 - October 10, 2003 495 - January 14, 2004 560 - April 19, 2004
431 - October 13, 2003 496 - January 15, 2004 561 - April 20, 2004
432 - October 14, 2003 497 - January 16, 2004 562 - April 21, 2004
433 - October 15, 2003 498 - January 20, 2004 563 - April 22, 2004
434 - October 16, 2003 499 - January 21, 2004 564 - April 23, 2004
435 - October 17, 2003 500 - January 22, 2004 565 - April 26, 2004
436 - October 20, 2003 501 - January 23, 2004 566 - April 27, 2004
437 - October 21, 2003 502 - January 26, 2004 567 - April 28, 2004
438 - October 22, 2003 503 - January 27, 2004 568 - April 29, 2004
439 - October 23, 2003 504 - January 28, 2004 569 - April 30, 2004
440 - October 24, 2003 505 - January 29, 2004 570 - May 3, 2004
441 - October 27, 2003 506 - January 30, 2004 571 - May 4, 2004
442 - October 28, 2003 507 - February 2, 2004 572 - May 5, 2004
443 - October 29, 2003 508 - February 3, 2004 573 - May 6, 2004
444 - October 30, 2003 509 - February 4, 2004 574 - May 7, 2004
445 - October 31, 2003 510 - February 5, 2004 575 - May 10, 2004
446 - November 3, 2003 511 - February 6, 2004 576 - May 11, 2004
447 - November 4, 2003 512 - February 9, 2004 577 - May 12, 2004
448 - November 5, 2003 513 - February 10, 2004 578 - May 13, 2004
449 - November 6, 2003 514 - February 11, 2004 579 - May 14, 2004
450 - November 7, 2003 515 - February 12, 2004 580 - May 17, 2004
451 - November 10, 2003 516 - February 13, 2004 581 - May 18, 2004
452 - November 11, 2003 517 - February 17, 2004 582 - May 19, 2004
453 - November 12, 2003 518 - February 18, 2004 583 - May 20, 2004
454 - November 13, 2003 519 - February 19, 2004 584 - May 21, 2004
455 - November 14, 2003 520 - February 20, 2004 585 - May 24, 2004
586 - May 25, 2004 651 - August 30, 2004 716 - December 1, 2004
587 - May 26, 2004 652 - August 31, 2004 717 - December 2, 2004
588 - May 27, 2004 653 - September 1, 2004 718 - December 3, 2004
589 - May 28, 2004 654 - September 2, 2004 719 - December 6, 2004
590 - June 1, 2004 655 - September 3, 2004 720 - December 7, 2004
591 - June 2, 2004 656 - September 7, 2004 721 - December 8, 2004
592 - June 3, 2004 657 - September 8, 2004 722 - December 9, 2004
593 - June 4, 2004 658 - September 9, 2004 723 - December 10, 2004
594 - June 7, 2004 659 - September 10, 2004 724 - December 13, 2004
595 - June 8, 2004 660 - September 13, 2004 725 - December 14, 2004
596 - June 9, 2004 661 - September 14, 2004 726 - December 15, 2004
597 - June 10, 2004 662 - September 15, 2004 727 - December 16, 2004
598 - June 14, 2004 663 - September 16, 2004 728 - December 17, 2004
599 - June 15, 2004 664 - September 17, 2004 729 - December 20, 2004
600 - June 16, 2004 665 - September 20, 2004 730 - December 21, 2004
601 - June 17, 2004 666 - September 21, 2004 731 - December 22, 2004
602 - June 18, 2004 667 - September 22, 2004 732 - December 23, 2004
603 - June 21, 2004 668 - September 23, 2004 733 - December 27, 2004
604 - June 22, 2004 669 - September 24, 2004 734 - December 28, 2004
605 - June 23, 2004 670 - September 27, 2004 735 - December 29, 2004
606 - June 24, 2004 671 - September 28, 2004 736 - December 30, 2004
607 - June 25, 2004 672 - September 29, 2004 737 - December 31, 2004
608 - June 28, 2004 673 - September 30, 2004 738 - January 3, 2005
609 - June 29, 2004 674 - October 1, 2004 739 - January 4, 2005
610 - July 1, 2004 675 - October 4, 2004 740 - January 5, 2005
611 - July 2, 2004 676 - October 5, 2004 741 - January 6, 2005
612 - July 6, 2004 677 - October 6, 2004 742 - January 7, 2005
613 - July 7, 2004 678 - October 7, 2004 743 - January 10, 2005
614 - July 8, 2004 679 - October 8, 2004 744 - January 11, 2005
615 - July 9, 2004 680 - October 11, 2004 745 - January 12, 2005
616 - July 12, 2004 681 - October 12, 2004 746 - January 13, 2005
617 - July 13, 2004 682 - October 13, 2004 747 - January 14, 2005
618 - July 14, 2004 683 - October 14, 2004 748 - January 18, 2005
619 - July 15, 2004 684 - October 15, 2004 749 - January 19, 2005
620 - July 16, 2004 685 - October 18, 2004 750 - January 20, 2005
621 - July 19, 2004 686 - October 19, 2004 751 - January 21, 2005
622 - July 20, 2004 687 - October 20, 2004 752 - January 24, 2005
623 - July 21, 2004 688 - October 21, 2004 753 - January 25, 2005
624 - July 22, 2004 689 - October 22, 2004 754 - January 26, 2005
625 - July 23, 2004 690 - October 25, 2004 755 - January 27, 2005
626 - July 26, 2004 691 - October 26, 2004 756 - January 28, 2005
627 - July 27, 2004 692 - October 27, 2004 757 - January 31, 2005
628 - July 28, 2004 693 - October 28, 2004 758 - February 1, 2005
629 - July 29, 2004 694 - October 29, 2004 759 - February 2, 2005
630 - July 30, 2004 695 - November 1, 2004 760 - February 3, 2005
631 - August 2, 2004 696 - November 2, 2004 761 - February 4, 2005
632 - August 3, 2004 697 - November 3, 2004 762 - February 7, 2005
633 - August 4, 2004 698 - November 4, 2004 763 - February 8, 2005
634 - August 5, 2004 699 - November 5, 2004 764 - February 9, 2005
635 - August 6, 2004 700 - November 8, 2004 765 - February 10, 2005
636 - August 9, 2004 701 - November 9, 2004 766 - February 11, 2005
637 - August 10, 2004 702 - November 10, 2004 767 - February 14, 2005
638 - August 11, 2004 703 - November 11, 2004 768 - February 15, 2005
639 - August 12, 2004 704 - November 12, 2004 769 - February 16, 2005
640 - August 13, 2004 705 - November 15, 2004 770 - February 17, 2005
641 - August 16, 2004 706 - November 16, 2004 771 - February 18, 2005
642 - August 17, 2004 707 - November 17, 2004 772 - February 22, 2005
643 - August 18, 2004 708 - November 18, 2004 773 - February 23, 2005
644 - August 19, 2004 709 - November 19, 2004 774 - February 24, 2005
645 - August 20, 2004 710 - November 22, 2004 775 - February 25, 2005
646 - August 23, 2004 711 - November 23, 2004 776 - February 28, 2005
647 - August 24, 2004 712 - November 24, 2004 777 - March 1, 2005
648 - August 25, 2004 713 - November 26, 2004 778 - March 2, 2005
649 - August 26, 2004 714 - November 29, 2004 779 - March 3, 2005
650 - August 27, 2004 715 - November 30, 2004 780 - March 4, 2005
781 - March 7, 2005 846 - June 9, 2005 911 - September 13, 2005
782 - March 8, 2005 847 - June 10, 2005 912 - September 14, 2005
783 - March 9, 2005 848 - June 13, 2005 913 - September 15, 2005
784 - March 10, 2005 849 - June 14, 2005 914 - September 16, 2005
785 - March 11, 2005 850 - June 15, 2005 915 - September 19, 2005
786 - March 14, 2005 851 - June 16, 2005 916 - September 21, 2005
787 - March 15, 2005 852 - June 17, 2005 917 - September 22, 2005
788 - March 16, 2005 853 - June 20, 2005 918 - September 23, 2005
789 - March 17, 2005 854 - June 21, 2005 919 - September 26, 2005
790 - March 18, 2005 855 - June 22, 2005 920 - September 27, 2005
791 - March 21, 2005 856 - June 23, 2005 921 - September 29, 2005
792 - March 22, 2005 857 - June 24, 2005 922 - September 30, 2005
793 - March 23, 2005 858 - June 27, 2005 923 - October 3, 2005
794 - March 24, 2005 859 - June 28, 2005 924 - October 4, 2005
795 - March 28, 2005 860 - June 29, 2005 925 - October 5, 2005
796 - March 29, 2005 861 - June 30, 2005 926 - October 6, 2005
797 - March 30, 2005 862 - July 1, 2005 927 - October 7, 2005
798 - March 31, 2005 863 - July 5, 2005 928 - October 10, 2005
799 - April 1, 2005 864 - July 6, 2005 929 - October 11, 2005
800 - April 4, 2005 865 - July 7, 2005 930 - October 12, 2005
801 - April 5, 2005 866 - July 8, 2005 931 - October 13, 2005
802 - April 6, 2005 867 - July 11, 2005 932 - October 14, 2005
803 - April 7, 2005 868 - July 12, 2005 933 - October 17, 2005
804 - April 8, 2005 869 - July 13, 2005 934 - October 18, 2005
805 - April 11, 2005 870 - July 14, 2005 935 - October 19, 2005
806 - April 12, 2005 871 - July 15, 2005 936 - October 20, 2005
807 - April 13, 2005 872 - July 18, 2005 937 - October 21, 2005
808 - April 14, 2005 873 - July 19, 2005 938 - October 24, 2005
809 - April 15, 2005 874 - July 20, 2005 939 - October 25, 2005
810 - April 18, 2005 875 - July 21, 2005 940 - October 26, 2005
811 - April 19, 2005 876 - July 22, 2005 941 - October 27, 2005
812 - April 20, 2005 877 - July 25, 2005 942 - October 28, 2005
813 - April 21, 2005 878 - July 26, 2005 943 - October 31, 2005
814 - April 22, 2005 879 - July 27, 2005 944 - November 1, 2005
815 - April 25, 2005 880 - July 28, 2005 945 - November 2, 2005
816 - April 26, 2005 881 - July 29, 2005 946 - November 3, 2005
817 - April 27, 2005 882 - August 1, 2005 947 - November 4, 2005
818 - April 28, 2005 883 - August 2, 2005 948 - November 7, 2005
819 - April 29, 2005 884 - August 3, 2005 949 - November 8, 2005
820 - May 2, 2005 885 - August 4, 2005 950 - November 9, 2005
821 - May 3, 2005 886 - August 5, 2005 951 - November 10, 2005
822 - May 4, 2005 887 - August 8, 2005 952 - November 11, 2005
823 - May 5, 2005 888 - August 9, 2005 953 - November 14, 2005
824 - May 6, 2005 889 - August 10, 2005 954 - November 15, 2005
825 - May 9, 2005 890 - August 11, 2005 955 - November 16, 2005
826 - May 10, 2005 891 - August 12, 2005 956 - November 17, 2005
827 - May 11, 2005 892 - August 15, 2005 957 - November 18, 2005
828 - May 12, 2005 893 - August 16, 2005 958 - November 21, 2005
829 - May 13, 2005 894 - August 17, 2005 959 - November 22, 2005
830 - May 16, 2005 895 - August 18, 2005 960 - November 23, 2005
831 - May 17, 2005 896 - August 19, 2005 961 - November 25, 2005
832 - May 18, 2005 897 - August 22, 2005 962 - November 28, 2005
833 - May 19, 2005 898 - August 24, 2005 963 - November 29, 2005
834 - May 20, 2005 899 - August 25, 2005 964 - November 30, 2005
835 - May 23, 2005 900 - August 26, 2005 965 - December 1, 2005
836 - May 24, 2005 901 - August 29, 2005 966 - December 2, 2005
837 - May 25, 2005 902 - August 30, 2005 967 - December 5, 2005
838 - May 26, 2005 903 - August 31, 2005 968 - December 6, 2005
839 - May 27, 2005 904 - September 1, 2005 969 - December 7, 2005
840 - May 31, 2005 905 - September 2, 2005 970 - December 9, 2005
841 - June 1, 2005 906 - September 6, 2005 971 - December 12, 2005
842 - June 2, 2005 907 - September 7, 2005 972 - December 13, 2005
843 - June 3, 2005 908 - September 8, 2005 973 - December 14, 2005
844 - June 6, 2005 909 - September 9, 2005 974 - December 16, 2005
845 - June 8, 2005 910 - September 12, 2005 975 - December 19, 2005
976 - December 20, 2005 1041 - March 30, 2006 1106 - July 6, 2006
977 - December 21, 2005 1042 - March 31, 2006 1107 - July 7, 2006
978 - December 22, 2005 1043 - April 3, 2006 1108 - July 10, 2006
979 - December 23, 2005 1044 - April 4, 2006 1109 - July 11, 2006
980 - December 27, 2005 1045 - April 5, 2006 1110 - July 12, 2006
981 - December 28, 2005 1046 - April 6, 2006 1111 - July 13, 2006
982 - December 29, 2005 1047 - April 7, 2006 1112 - July 14, 2006
983 - December 30, 2005 1048 - April 10, 2006 1113 - July 17, 2006
984 - January 3, 2006 1049 - April 11, 2006 1114 - July 18, 2006
985 - January 5, 2006 1050 - April 13, 2006 1115 - July 19, 2006
986 - January 6, 2006 1051 - April 17, 2006 1116 - July 20, 2006
987 - January 9, 2006 1052 - April 18, 2006 1117 - July 21, 2006
988 - January 10, 2006 1053 - April 19, 2006 1118 - July 24, 2006
989 - January 11, 2006 1054 - April 20, 2006 1119 - July 25, 2006
990 - January 12, 2006 1055 - April 21, 2006 1120 - July 26, 2006
991 - January 13, 2006 1056 - April 24, 2006 1121 - July 27, 2006
992 - January 17, 2006 1057 - April 25, 2006 1122 - July 28, 2006
993 - January 18, 2006 1058 - April 27, 2006 1123 - July 31, 2006
994 - January 19, 2006 1059 - April 28, 2006 1124 - August 1, 2006
995 - January 20, 2006 1060 - May 1, 2006 1125 - August 2, 2006
996 - January 23, 2006 1061 - May 2, 2006 1126 - August 3, 2006
997 - January 24, 2006 1062 - May 3, 2006 1127 - August 4, 2006
998 - January 25, 2006 1063 - May 4, 2006 1128 - August 7, 2006
999 - January 26, 2006 1064 - May 5, 2006 1129 - August 8, 2006
1000 - January 27, 2006 1065 - May 8, 2006 1130 - August 9, 2006
1001 - January 30, 2006 1066 - May 9, 2006 1131 - August 10, 2006
1002 - January 31, 2006 1067 - May 10, 2006 1132 - August 11, 2006
1003 - February 1, 2006 1068 - May 11, 2006 1133 - August 14, 2006
1004 - February 2, 2006 1069 - May 12, 2006 1134 - August 15, 2006
1005 - February 3, 2006 1070 - May 15, 2006 1135 - August 16, 2006
1006 - February 6, 2006 1071 - May 16, 2006 1136 - August 17, 2006
1007 - February 7, 2006 1072 - May 17, 2006 1137 - August 18, 2006
1008 - February 8, 2006 1073 - May 18, 2006 1138 - August 21, 2006
1009 - February 9, 2006 1074 - May 19, 2006 1139 - August 22, 2006
1010 - February 10, 2006 1075 - May 22, 2006 1140 - August 23, 2006
1011 - February 13, 2006 1076 - May 23, 2006 1141 - August 24, 2006
1012 - February 14, 2006 1077 - May 24, 2006 1142 - August 25, 2006
1013 - February 15, 2006 1078 - May 25, 2006 1143 - August 28, 2006
1014 - February 16, 2006 1079 - May 26, 2006 1144 - August 29, 2006
1015 - February 17, 2006 1080 - May 30, 2006 1145 - August 30, 2006
1016 - February 21, 2006 1081 - May 31, 2006 1146 - August 31, 2006
1017 - February 22, 2006 1082 - June 1, 2006 1147 - September 1, 2006
1018 - February 23, 2006 1083 - June 2, 2006 1148 - September 5, 2006
1019 - February 24, 2006 1084 - June 5, 2006 1149 - September 6, 2006
1020 - February 27, 2006 1085 - June 6, 2006 1150 - September 7, 2006
1021 - February 28, 2006 1086 - June 7, 2006 1151 - September 11, 2006
1022 - March 1, 2006 1087 - June 8, 2006 1152 - September 12, 2006
1023 - March 2, 2006 1088 - June 9, 2006 1153 - September 13, 2006
1024 - March 3, 2006 1089 - June 12, 2006 1154 - September 14, 2006
1025 - March 6, 2006 1090 - June 13, 2006 1155 - September 15, 2006
1026 - March 7, 2006 1091 - June 14, 2006 1156 - September 18, 2006
1027 - March 8, 2006 1092 - June 15, 2006 1157 - September 19, 2006
1028 - March 9, 2006 1093 - June 16, 2006 1158 - September 20, 2006
1029 - March 10, 2006 1094 - June 19, 2006 1159 - September 21, 2006
1030 - March 13, 2006 1095 - June 20, 2006 1160 - September 22, 2006
1031 - March 16, 2006 1096 - June 21, 2006 1161 - September 25, 2006
1032 - March 17, 2006 1097 - June 22, 2006 1162 - September 26, 2006
1033 - March 20, 2006 1098 - June 23, 2006 1163 - September 27, 2006
1034 - March 21, 2006 1099 - June 26, 2006 1164 - September 28, 2006
1035 - March 22, 2006 1100 - June 27, 2006 1165 - September 29, 2006
1036 - March 23, 2006 1101 - June 28, 2006 1166 - October 2, 2006
1037 - March 24, 2006 1102 - June 29, 2006 1167 - October 3, 2006
1038 - March 27, 2006 1103 - June 30, 2006 1168 - October 4, 2006
1039 - March 28, 2006 1104 - July 3, 2006 1169 - October 5, 2006
1040 - March 29, 2006 1105 - July 5, 2006 1170 - October 6, 2006
1171 - October 9, 2006 1236 - January 22, 2007 1301 - April 25, 2007
1172 - October 10, 2006 1237 - January 23, 2007 1302 - April 26, 2007
1173 - October 11, 2006 1238 - January 24, 2007 1303 - April 27, 2007
1174 - October 12, 2006 1239 - January 25, 2007 1304 - April 30, 2007
1175 - October 13, 2006 1240 - January 26, 2007 1305 - May 1, 2007
1176 - October 16, 2006 1241 - January 29, 2007 1306 - May 2, 2007
1177 - October 17, 2006 1242 - January 30, 2007 1307 - May 3, 2007
1178 - October 18, 2006 1243 - January 31, 2007 1308 - May 4, 2007
1179 - October 19, 2006 1244 - February 1, 2007 1309 - May 7, 2007
1180 - October 20, 2006 1245 - February 2, 2007 1310 - May 8, 2007
1181 - October 23, 2006 1246 - February 5, 2007 1311 - May 9, 2007
1182 - October 24, 2006 1247 - February 6, 2007 1312 - May 10, 2007
1183 - October 25, 2006 1248 - February 7, 2007 1313 - May 11, 2007
1184 - October 26, 2006 1249 - February 8, 2007 1314 - May 14, 2007
1185 - October 27, 2006 1250 - February 9, 2007 1315 - May 15, 2007
1186 - October 31, 2006 1251 - February 12, 2007 1316 - May 16, 2007
1187 - November 1, 2006 1252 - February 13, 2007 1317 - May 17, 2007
1188 - November 2, 2006 1253 - February 14, 2007 1318 - May 18, 2007
1189 - November 3, 2006 1254 - February 15, 2007 1319 - May 21, 2007
1190 - November 6, 2006 1255 - February 16, 2007 1320 - May 22, 2007
1191 - November 7, 2006 1256 - February 20, 2007 1321 - May 23, 2007
1192 - November 8, 2006 1257 - February 21, 2007 1322 - May 24, 2007
1193 - November 10, 2006 1258 - February 22, 2007 1323 - May 25, 2007
1194 - November 13, 2006 1259 - February 23, 2007 1324 - May 29, 2007
1195 - November 14, 2006 1260 - February 26, 2007 1325 - May 30, 2007
1196 - November 15, 2006 1261 - February 27, 2007 1326 - May 31, 2007
1197 - November 16, 2006 1262 - February 28, 2007 1327 - June 1, 2007
1198 - November 17, 2006 1263 - March 1, 2007 1328 - June 4, 2007
1199 - November 20, 2006 1264 - March 2, 2007 1329 - June 5, 2007
1200 - November 21, 2006 1265 - March 5, 2007 1330 - June 6, 2007
1201 - November 22, 2006 1266 - March 6, 2007 1331 - June 7, 2007
1202 - November 24, 2006 1267 - March 7, 2007 1332 - June 8, 2007
1203 - November 27, 2006 1268 - March 8, 2007 1333 - June 11, 2007
1204 - November 28, 2006 1269 - March 9, 2007 1334 - June 12, 2007
1205 - November 29, 2006 1270 - March 12, 2007 1335 - June 13, 2007
1206 - November 30, 2006 1271 - March 13, 2007 1336 - June 14, 2007
1207 - December 1, 2006 1272 - March 14, 2007 1337 - June 15, 2007
1208 - December 4, 2006 1273 - March 15, 2007 1338 - June 18, 2007
1209 - December 5, 2006 1274 - March 16, 2007 1339 - June 19, 2007
1210 - December 6, 2006 1275 - March 19, 2007 1340 - June 20, 2007
1211 - December 7, 2006 1276 - March 20, 2007 1341 - June 21, 2007
1212 - December 11, 2006 1277 - March 21, 2007 1342 - June 22, 2007
1213 - December 12, 2006 1278 - March 22, 2007 1343 - June 25, 2007
1214 - December 13, 2006 1279 - March 23, 2007 1344 - June 26, 2007
1215 - December 14, 2006 1280 - March 26, 2007 1345 - June 27, 2007
1216 - December 18, 2006 1281 - March 27, 2007 1346 - June 28, 2007
1217 - December 20, 2006 1282 - March 28, 2007 1347 - June 29, 2007
1218 - December 21, 2006 1283 - March 29, 2007 1348 - July 2, 2007
1219 - December 22, 2006 1284 - March 30, 2007 1349 - July 3, 2007
1220 - December 26, 2006 1285 - April 2, 2007 1350 - July 5, 2007
1221 - December 27, 2006 1286 - April 3, 2007 1351 - July 6, 2007
1222 - December 28, 2006 1287 - April 4, 2007 1352 - July 9, 2007
1223 - December 29, 2006 1288 - April 5, 2007 1353 - July 10, 2007
1224 - January 3, 2007 1289 - April 9, 2007 1354 - July 11, 2007
1225 - January 4, 2007 1290 - April 10, 2007 1355 - July 12, 2007
1226 - January 5, 2007 1291 - April 11, 2007 1356 - July 13, 2007
1227 - January 8, 2007 1292 - April 12, 2007 1357 - July 16, 2007
1228 - January 9, 2007 1293 - April 13, 2007 1358 - July 17, 2007
1229 - January 10, 2007 1294 - April 16, 2007 1359 - July 18, 2007
1230 - January 11, 2007 1295 - April 17, 2007 1360 - July 19, 2007
1231 - January 12, 2007 1296 - April 18, 2007 1361 - July 20, 2007
1232 - January 16, 2007 1297 - April 19, 2007 1362 - July 23, 2007
1233 - January 17, 2007 1298 - April 20, 2007 1363 - July 24, 2007
1234 - January 18, 2007 1299 - April 23, 2007 1364 - July 25, 2007
1235 - January 19, 2007 1300 - April 24, 2007 1365 - July 26, 2007
1366 - July 27, 2007 1431 -October 31, 2007 1735 - February 07, 2008
1367 - July 30, 2007 1432 -November 1, 2007 1736 - February 08, 2008
1368 - July 31, 2007 1433 -November 2, 2007 1737 - February 11, 2008
1369 - August 1, 2007 1434 -November 5, 2007 1738 - February 12, 2008
1370 - August 2, 2007 1435 -November 6, 2007 1739 - February 13, 2008
1371 - August 3, 2007 1436 -November 8, 2007 1740 - February 14, 2008
1372 - August 6, 2007 1437 -November 9, 2007 1741 - February 15, 2008
1373 - August 7, 2007 1438 -November 12, 2007 1742 - February 19, 2008
1374 - August 8, 2007 1439 -November 13, 2007 1743 - February 20, 2008
1375 - August 9, 2007 1440 -November 14, 2007 1744 - February 21, 2008
1376 - August 10, 2007 1441 -November 15, 2007 1745 - February 22, 2008
1377 - August 13, 2007 1442 -November 16, 2007 1746 - February 25, 2008
1378 - August 14, 2007 1443 -November 19, 2007 1747 - February 26, 2008
1379 - August 15, 2007 1444 -November 20, 2007 1748 - February 27, 2008
1380 - August 16, 2007 1445 -November 21, 2007 1749 - February 28, 2008
1381 - August 17, 2007 1446 -November 23, 2007 1750 - February 29, 2008
1382 - August 20, 2007 1447 -November 26, 2007 1751 - March 03, 2008
1383 - August 21, 2007 1448 -November 27, 2007 1752 - March 04, 2008
1384 - August 23, 2007 1449 -November 28, 2007 1753 - March 05, 2008
1385 - August 24, 2007 1450 -November 30, 2007 1754 - March 06, 2008
1386 - August 27, 2007 1451 -December 3, 2007 1755 - March 07, 2008
1387 - August 28, 2007 1452 -December 4, 2007 1756 - March 10, 2008
1388 - August 29, 2007 1453 -December 5, 2007 1757 - March 11, 2008
1389 - August 30, 2007 1454 -December 6, 2007 1758 - March 12, 2008
1390 - August 31, 2007 1455 -December 7, 2007 1759 - March 13, 2008
1391 - September 4, 2007 1456 -December 10, 2007 1760 - March 14, 2008
1392 - September 5, 2007 1457 -December 11, 2007 1761 - March 17, 2008
1393 - September 6, 2007 1458 -December 12, 2007 1762 - March 18, 2008
1394 - September 7, 2007 1459 -December 13, 2007 1763 - March 19, 2008
1395 - September 10, 2007 1460 -December 14, 2007 1764 - March 20, 2008
1396 - September 11, 2007 1461 -December 17, 2007 1765 - March 24, 2008
1397 - September 12, 2007 1462 -December 18, 2007 1766 - March 25, 2008
1398 - September 13, 2007 1463 -December 19, 2007 1767 - March 26, 2008
1399 - September 14, 2007 1464 -December 20, 2007 1768 - March 27, 2008
1400 - September 17, 2007 1465 -December 21, 2007 1769 - March 28, 2008
1401 - September 18, 2007 1466 -December 24, 2007 1770 - March 31, 2008
1402 - September 19, 2007 1467 -December 26, 2007 1771 - April 01, 2008
1403 - September 20, 2007 1468 -December 27, 2007 1772 - April 02, 2008
1404 - September 21, 2007 1469 -December 28, 2007 1773 - April 03, 2008
1405 - September 24, 2007 1470 -December 31, 2007 1774 - April 04, 2008
1406 - September 25, 2007 1710 -January 02, 2008 1775 - April 07, 2008
1407 - September 26, 2007 1711 -January 03, 2008 1776 - April 08, 2008
1408 - September 28, 2007 1712 -January 04, 2008 1777 - April 09, 2008
1409 - October 1, 2007 1713 -January 07, 2008 1778 - April 10, 2008
1410 - October 2, 2007 1714 -January 08, 2008 1779 - April 11, 2008
1411 - October 3, 2007 1715 -January 09, 2008 1780 - April 14, 2008
1412 - October 4, 2007 1716 -January 10, 2008 1781 - April 15, 2008
1413 - October 5, 2007 1717 -January 11, 2008 1782 - April 16, 2008
1414 - October 8, 2007 1718 -January 14, 2008 1783 - April 17, 2008
1415 - October 9, 2007 1719 -January 15, 2008 1784 - April 18, 2008
1416 - October 10, 2007 1720 -January 16, 2008 1785 - April 21, 2008
1417 - October 11, 2007 1721 -January 17, 2008 1786 - April 22, 2008
1418 - October 12, 2007 1722 -January 18, 2008 1787 - April 23, 2008
1419 - October 15, 2007 1723 -January 22, 2008 1788 - April 24, 2008
1420 - October 16, 2007 1724 -January 23, 2008 1789 - April 25, 2008
1421 - October 17, 2007 1725 -January 24, 2008 1790 - April 28, 2008
1422 - October 18, 2007 1726 -January 25, 2008 1791 - April 29, 2008
1423 - October 19, 2007 1727 -January 28, 2008 1792 - April 30, 2008
1424 - October 22, 2007 1728 -January 29, 2008 1793 - May 01, 2008
1425 - October 23, 2007 1729 -January 30, 2008 1794 - May 02, 2008
1426 - October 24, 2007 1730 -January 31, 2008 1795 - May 05, 2008
1427 - October 25, 2007 1731 -February 01, 2008 1796 - May 06, 2008
1428 - October 26, 2007 1732 -February 04, 2008 1797 - May 07, 2008
1429 - October 29, 2007 1733 -February 05, 2008 1798 - May 08, 2008
1430 - October 30, 2007 1734 -February 06, 2008 1799 - May 09, 2008
1800 - May 12, 2008 1865 - August 15, 2008 1930 - November 20, 2008
1801 - May 13, 2008 1866 - August 18, 2008 1931 - November 21, 2008
1802 - May 14, 2008 1867 - August 19, 2008 1932 - November 24, 2008
1803 - May 15, 2008 1868 - August 20, 2008 1933 - November 25, 2008
1804 - May 16, 2008 1869 - August 21, 2008 1934 - November 26, 2008
1805 - May 19, 2008 1870 - August 22, 2008 1935 - December 01, 2008
1806 - May 20, 2008 1871 - August 25, 2008 1936 - December 02, 2008
1807 - May 21, 2008 1872 - August 26, 2008 1937 - December 04, 2008
1808 - May 22, 2008 1873 - August 28, 2008 1938 - December 05, 2008
1809 - May 23, 2008 1874 - August 29, 2008 1939 - December 08, 2008
1810 - May 27, 2008 1875 - September 03, 2008 1940 - December 09, 2008
1811 - May 28, 2008 1876 - September 04, 2008 1941 - December 10, 2008
1812 - May 29, 2008 1877 - September 05, 2008 1942 - December 11, 2008
1813 - May 30, 2008 1878 - September 08, 2008 1943 - December 12, 2008
1814 - June 02, 2008 1879 - September 10, 2008 1944 - December 15, 2008
1815 - June 03, 2008 1880 - September 11, 2008 1945 - December 16, 2008
1816 - June 04, 2008 1881 - September 12, 2008 1946 - December 17, 2008
1817 - June 05, 2008 1882 - September 15, 2008 1947 - December 19, 2008
1818 - June 06, 2008 1883 - September 16, 2008 1948 - December 22, 2008
1819 - June 09, 2008 1884 - September 17, 2008 1949 - December 23, 2008
1820 - June 10, 2008 1885 - September 18, 2008 1950 - December 24, 2008
1821 - June 11, 2008 1886 - September 19, 2008 1951 - December 26, 2008
1822 - June 12, 2008 1887 - September 22, 2008 1952 - December 29, 2008
1823 - June 13, 2008 1888 - September 23, 2008 1953 - December 31, 2008
1824 - June 17, 2008 1889 - September 24, 2008
1825 - June 18, 2008 1890 - September 25, 2008
1826 - June 19, 2008 1891 - September 26, 2008
1827 - June 20, 2008 1892 - September 29, 2008
1828 - June 23, 2008 1893 - September 30, 2008
1829 - June 24, 2008 1894 - October 01, 2008
1830 - June 25, 2008 1895 - October 02, 2008
1831 - June 26, 2008 1896 - October 03, 2008
1832 - June 27, 2008 1897 - October 06, 2008
1833 - June 30, 2008 1898 - October 07, 2008
1834 - July 01, 2008 1899 - October 08, 2008
1835 - July 02, 2008 1900 - October 09, 2008
1836 - July 03, 2008 1901 - October 10, 2008
1837 - July 07, 2008 1902 - October 13, 2008
1838 - July 08, 2008 1903 - October 14, 2008
1839 - July 09, 2008 1904 - October 15, 2008
1840 - July 10, 2008 1905 - October 16, 2008
1841 - July 11, 2008 1906 - October 17, 2008
1842 - July 14, 2008 1907 - October 20, 2008
1843 - July 15, 2008 1908 - October 21, 2008
1844 - July 16, 2008 1909 - October 22, 2008
1845 - July 17, 2008 1910 - October 23, 2008
1846 - July 18, 2008 1911 - October 24, 2008
1847 - July 21, 2008 1912 - October 27, 2008
1848 - July 22, 2008 1913 - October 28, 2008
1849 - July 23, 2008 1914 - October 29, 2008
1850 - July 24, 2008 1915 - October 30, 2008
1851 - July 25, 2008 1916 - October 31, 2008
1852 - July 28, 2008 1917 - November 03, 2008
1853 - July 29, 2008 1918 - November 04, 2008
1854 - July 30, 2008 1919 - November 05, 2008
1855 - July 31, 2008 1920 - November 06, 2008
1856 - August 01, 2008 1921 - November 07, 2008
1857 - August 04, 2008 1922 - November 10, 2008
1858 - August 05, 2008 1923 - November 11, 2008
1859 - August 06, 2008 1924 - November 12, 2008
1860 - August 07, 2008 1925 - November 13, 2008
1861 - August 11, 2008 1926 - November 14, 2008
1862 - August 12, 2008 1927 - November 17, 2008
1863 - August 13, 2008 1928 - November 18, 2008
1864 - August 14, 2008 1929 - November 19, 2008
JNLNY Separate Account I
[LOGO]
Financial Statements
December 31, 2008
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/Capital
JNL/AIM Global JNL/AIM JNL/AIM JNL/AIM Guardian Global
Real Estate International Large Cap Small Cap Balanced
Portfolio Growth Portfolio Growth Portfolio Growth Portfolio Portfolio
-------------- ---------------- ---------------- ---------------- ---------------
Assets
Investments, at value (a) $ 4,718,482 $ 9,437,295 $ 5,552,546 $ 2,303,250 $ 9,625,185
Receivables:
Investment securities sold 1,556 3,304 4,683 41,057 2,273
Sub-account units sold 1,410 5,351 -- 2,618 --
-------------- ---------------- ---------------- ---------------- ---------------
Total assets 4,721,448 9,445,950 5,557,229 2,346,925 9,627,458
-------------- ---------------- ---------------- ---------------- ---------------
Liabilities
Payables:
Investment securities purchased 1,410 5,351 -- 2,618 --
Sub-account units redeemed 1,333 2,859 4,414 40,944 1,830
Insurance fees due to Jackson
of New York 223 445 269 113 443
-------------- ---------------- ---------------- ---------------- ---------------
Total liabilities 2,966 8,655 4,683 43,675 2,273
-------------- ---------------- ---------------- ---------------- ---------------
Net assets (Note 6) $ 4,718,482 $ 9,437,295 $ 5,552,546 $ 2,303,250 $ 9,625,185
---------------------------------- ============== ================ ================ ================ ===============
(a) Investment shares 814,936 1,371,700 640,432 307,100 1,309,549
Investments at cost $ 9,033,907 $ 16,352,274 $ 7,879,153 $ 3,763,646 $ 13,445,122
JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse JNL/
Guardian Global Guardian Guardian U.S. Global Natural Credit Suisse
Diversified International Small Growth Equity Resources Long/Short
Research Portfolio Cap Portfolio Portfolio Portfolio Portfolio
------------------ ------------------- ------------- ----------------- -------------
Assets
Investments, at value (a) $ 4,640,956 $ 709,095 $ 6,681,691 $ 17,073,695 $ 1,600,997
Receivables:
Investment securities sold 143,331 84 5,609 6,699 2,048
Sub-account units sold -- -- 237 6,870 --
------------------ ------------------- ------------- ----------------- -------------
Total assets 4,784,287 709,179 6,687,537 17,087,264 1,603,045
------------------ ------------------- ------------- ----------------- -------------
Liabilities
Payables:
Investment securities purchased -- -- 237 6,870 --
Sub-account units redeemed 143,104 52 5,296 5,831 1,975
Insurance fees due to Jackson
of New York 227 32 313 868 73
------------------ ------------------- ------------- ----------------- -------------
Total liabilities 143,331 84 5,846 13,569 2,048
------------------ ------------------- ------------- ----------------- -------------
Net assets (Note 6) $ 4,640,956 $ 709,095 $ 6,681,691 $ 17,073,695 $ 1,600,997
---------------------------------- ================== =================== ============= ================= =============
(a) Investment shares 302,540 156,188 477,264 2,701,534 262,029
Investments at cost $ 7,194,051 $ 1,123,850 $ 10,050,056 $ 30,191,439 $ 2,337,423
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/Franklin
JNL/Eagle JNL/Eagle JNL/Franklin Templeton JNL/Franklin
Core Equity SmallCap Equity Templeton Founding Global Growth Templeton
Portfolio Portfolio Strategy Portfolio Portfolio Income Portfolio
----------- --------------- ------------------ ------------- ----------------
Assets
Investments, at value (a) $ 2,152,334 $ 4,285,758 $ 26,679,140 $ 3,094,223 $ 23,603,655
Receivables:
Investment securities sold 394 3,095 63,072 1,037 10,131
Sub-account units sold 446 6,209 19 -- --
----------- --------------- ------------------ ------------- ----------------
Total assets 2,153,174 4,295,062 26,742,231 3,095,260 23,613,786
----------- --------------- ------------------ ------------- ----------------
Liabilities
Payables:
Investment securities purchased 446 6,209 19 -- --
Sub-account units redeemed 294 2,897 61,831 898 9,035
Insurance fees due to Jackson
of New York 100 198 1,241 139 1,096
----------- --------------- ------------------ ------------- ----------------
Total liabilities 840 9,304 63,091 1,037 10,131
----------- --------------- ------------------ ------------- ----------------
Net assets (Note 6) $ 2,152,334 $ 4,285,758 $ 26,679,140 $ 3,094,223 $ 23,603,655
---------------------------------- =========== =============== ================== ============= ================
(a) Investment shares 433,938 359,543 4,221,383 521,791 3,193,999
Investments at cost $ 4,130,306 $ 6,925,451 $ 40,432,921 $ 4,874,128 $ 32,284,685
JNL/Franklin JNL/ JNL/Goldman JNL/
JNL/Franklin Templeton Goldman Sachs Sachs Emerging Goldman Sac
Templeton Mutual Small Cap Core Plus Markets Debt Mid Cap
Shares Portfolio Value Portfolio Bond Portfolio Portfolio Value Portfolio
---------------- --------------- -------------- -------------- ---------------
Assets
Investments, at value (a) $ 5,576,454 $ 2,371,180 $ 14,517,997 $ 90,216 $ 2,680,065
Receivables:
Investment securities sold 1,265 2,348 28,025 29 284
Sub-account units sold 5,000 6,011 -- -- 2,729
---------------- --------------- -------------- -------------- ---------------
Total assets 5,582,719 2,379,539 14,546,022 90,245 2,683,078
---------------- --------------- -------------- -------------- ---------------
Liabilities
Payables:
Investment securities purchased 5,000 6,011 -- -- 2,729
Sub-account units redeemed 1,018 2,238 27,327 25 154
Insurance fees due to Jackson
of New York 247 110 698 4 130
---------------- --------------- -------------- -------------- ---------------
Total liabilities 6,265 8,359 28,025 29 3,013
---------------- --------------- -------------- -------------- ---------------
Net assets (Note 6) $ 5,576,454 $ 2,371,180 $ 14,517,997 $ 90,216 $ 2,680,065
---------------------------------- ================ =============== ============== ============== ===============
(a) Investment shares 899,428 360,910 1,355,555 9,320 411,684
Investments at cost $ 8,621,711 $ 3,702,381 $ 15,678,925 $ 87,675 $ 4,644,484
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio Value Portfolio Portfolio Portfolio Portfolio
-------------- --------------- ------------- --------------- ----------------
Assets
Investments, at value (a) $ 3,960,274 $ 14,625,643 $ 3,832,004 $ 14,558,508 $ 7,601,713
Receivables:
Investment securities sold 1,058 1,444 328 34,737 27,871
Sub-account units sold -- 7,475 669 -- 24,296
-------------- --------------- ------------- --------------- ----------------
Total assets 3,961,332 14,634,562 3,833,001 14,593,245 7,653,880
-------------- --------------- ------------- --------------- ----------------
Liabilities
Payables:
Investment securities purchased -- 7,475 669 -- 24,296
Sub-account units redeemed 864 749 160 34,046 27,516
Insurance fees due to Jackson
of New York 194 695 168 691 355
-------------- --------------- ------------- --------------- ----------------
Total liabilities 1,058 8,919 997 34,737 52,167
-------------- --------------- ------------- --------------- ----------------
Net assets (Note 6) $ 3,960,274 $ 14,625,643 $ 3,832,004 $ 14,558,508 $ 7,601,713
---------------------------------- ============== =============== ============= =============== ================
(a) Investment shares 423,106 2,556,931 343,678 1,188,450 1,292,808
Investments at cost $ 4,370,750 $ 27,761,443 $ 6,691,038 $ 14,071,642 $ 14,474,148
JNL/Lazard JNL/Lazard JNL/M&G JNL/M&G JNL/MCM
Mid Cap Small Cap Global Basics Global Leaders 10 x 10
Equity Portfolio Equity Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ------------- -------------- ------------
Assets
Investments, at value (a) $ 7,070,361 $ 4,441,315 $ 22,416 $ 37,714 $ 11,357,047
Receivables:
Investment securities sold 2,208 634 1 48,353 826
Sub-account units sold 445 503 -- -- -
---------------- ---------------- ------------- -------------- ------------
Total assets 7,073,014 4,442,452 22,417 86,067 11,357,873
---------------- ---------------- ------------- -------------- ------------
Liabilities
Payables:
Investment securities purchased 445 503 -- -- --
Sub-account units redeemed 1,858 414 -- 48,349 323
Insurance fees due to Jackson
of New York 350 220 1 4 503
---------------- ---------------- ------------- -------------- ------------
Total liabilities 2,653 1,137 1 48,353 826
---------------- ---------------- ------------- -------------- ------------
Net assets (Note 6) $ 7,070,361 $ 4,441,315 $ 22,416 $ 37,714 $ 11,357,047
---------------------------------- ================ ================ ============= ============== ============
(a) Investment shares 1,036,710 725,705 2,662 4,517 1,834,741
Investments at cost $ 13,069,428 $ 8,188,768 $ 20,363 $ 34,540 $ 16,687,293
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM
JNL/MCM Bond Index Communications Consumer Brands Dow Dividend
25 Portfolio Portfolio Sector Portfolio Sector Portfolio Portfolio
-------------- ------------- ---------------- ---------------- ------------
Assets
Investments, at value (a) $ 11,780,750 $ 19,682,835 $ 1,046,614 $ 1,088,255 $ 9,597,568
Receivables:
Investment securities sold 10,785 33,020 308 304 1,215
Sub-account units sold 2,652 12,097 -- -- 3,779
-------------- ------------- ---------------- ---------------- ------------
Total assets 11,794,187 19,727,952 1,046,922 1,088,559 9,602,562
-------------- ------------- ---------------- ---------------- ------------
Liabilities
Payables:
Investment securities purchased 2,652 12,097 -- -- 3,779
Sub-account units redeemed 10,144 32,061 256 253 754
Insurance fees due to Jackson
of New York 641 959 52 51 461
-------------- ------------- ---------------- ---------------- ------------
Total liabilities 13,437 45,117 308 304 4,994
-------------- ------------- ---------------- ---------------- ------------
Net assets (Note 6) $ 11,780,750 $ 19,682,835 $ 1,046,614 $ 1,088,255 $ 9,597,568
---------------------------------- ============== ============= ================ ================ ============
(a) Investment shares 1,666,301 1,779,642 437,914 177,529 1,780,625
Investments at cost $ 19,730,944 $ 19,604,117 $ 1,918,310 $ 1,673,206 $ 17,844,609
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock European 30 Financial Healthcare Index 5
Index Portfolio Portfolio Sector Portfolio Sector Portfolio Portfolio
--------------- ----------- ---------------- ---------------- -------------
Assets
Investments, at value (a) $ 3,601,010 $ 23,134 $ 3,203,971 $ 8,686,259 $ 4,148,206
Receivables:
Investment securities sold 1,540 13 401 1,150 219
Sub-account units sold 673 -- 13,068 -- --
--------------- ----------- ---------------- ---------------- -------------
Total assets 3,603,223 23,147 3,217,440 8,687,409 4,148,425
--------------- ----------- ---------------- ---------------- -------------
Liabilities
Payables:
Investment securities purchased 673 -- 13,068 -- --
Sub-account units redeemed 1,369 12 244 717 32
Insurance fees due to Jackson
of New York 171 1 157 433 187
--------------- ----------- ---------------- ---------------- -------------
Total liabilities 2,213 13 13,469 1,150 219
--------------- ----------- ---------------- ---------------- -------------
Net assets (Note 6) $ 3,601,010 $ 23,134 $ 3,203,971 $ 8,686,259 $ 4,148,206
---------------------------------- =============== =========== ================ ================ =============
(a) Investment shares 809,216 2,693 584,666 911,465 607,351
Investments at cost $ 5,931,834 $ 22,493 $ 5,650,444 $ 11,111,374 $ 5,381,952
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 25 NYSE International
Index Portfolio Portfolio 5 Portfolio Portfolio 25 Portfolio
--------------- ------------- ------------- ----------- ------------------
Assets
Investments, at value (a) $ 22,887,050 $ 219,942,291 $ 16,994,534 $ 2,841,431 $ 3,076,673
Receivables:
Investment securities sold 15,116 75,450 22,243 924 277
Sub-account units sold 6,510 114,632 3,279 27 225
--------------- ------------- ------------- ----------- ------------------
Total assets 22,908,676 220,132,373 17,020,056 2,842,382 3,077,175
--------------- ------------- ------------- ----------- ------------------
Liabilities
Payables:
Investment securities purchased 6,510 114,632 3,279 27 225
Sub-account units redeemed 14,008 65,092 21,469 785 132
Insurance fees due to Jackson
of New York 1,108 10,358 774 139 145
--------------- ------------- ------------- ----------- ------------------
Total liabilities 21,626 190,082 25,522 951 502
--------------- ------------- ------------- ----------- ------------------
Net assets (Note 6) $ 22,887,050 $ 219,942,291 $ 16,994,534 $ 2,841,431 $ 3,076,673
---------------------------------- =============== ============= ============= =========== ==================
(a) Investment shares 2,432,205 34,856,148 2,870,698 387,644 546,478
Investments at cost $ 36,694,469 $ 412,714,683 $ 28,720,493 $ 4,514,777 $ 5,028,253
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Oil & Gas Pacific Rim 30 S&P 24 S&P 400 MidCap S&P 500
Sector Portfolio Portfolio Portfolio Index Portfolio Index Portfolio
---------------- -------------- ----------- --------------- ---------------
Assets
Investments, at value (a) $ 13,205,060 $ 25,703 $ 6,138,634 $ 19,157,243 $ 25,662,031
Receivables:
Investment securities sold 5,006 1 93,465 15,469 16,545
Sub-account units sold 2,728 -- 19 17,621 21,163
---------------- -------------- ----------- --------------- ---------------
Total assets 13,212,794 25,704 6,232,118 19,190,333 25,699,739
---------------- -------------- ----------- --------------- ---------------
Liabilities
Payables:
Investment securities purchased 2,728 -- 19 17,621 21,163
Sub-account units redeemed 4,369 -- 93,093 14,508 15,283
Insurance fees due to Jackson
of New York 637 1 372 961 1,262
---------------- -------------- ----------- --------------- ---------------
Total liabilities 7,734 1 93,484 33,090 37,708
---------------- -------------- ----------- --------------- ---------------
Net assets (Note 6) $ 13,205,060 $ 25,703 $ 6,138,634 $ 19,157,243 $ 25,662,031
---------------------------------- ================ ============== =========== =============== ===============
(a) Investment shares 645,724 2,677 834,053 2,344,828 3,403,452
Investments at cost $ 20,210,227 $ 23,376 $ 8,331,969 $ 30,945,616 $ 36,690,434
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P SMid Select Small-Cap Small Cap Technology Value Line 30
60 Portfolio Portfolio Index Portfolio Sector Portfolio Portfolio
------------ ---------------- --------------- ---------------- -------------
Assets
Investments, at value (a) $ 4,162,577 $ 4,986,017 $ 18,450,420 $ 2,878,155 $ 33,476,159
Receivables:
Investment securities sold 854 2,859 12,377 217 84,792
Sub-account units sold 19 1,384 4,529 94 14,769
------------ ---------------- --------------- ---------------- -------------
Total assets 4,163,450 4,990,260 18,467,326 2,878,466 33,575,720
------------ ---------------- --------------- ---------------- -------------
Liabilities
Payables:
Investment securities purchased 19 1,384 4,529 94 14,769
Sub-account units redeemed 646 2,610 11,468 74 83,187
Insurance fees due to Jackson
of New York 208 249 909 143 1,605
------------ ---------------- --------------- ---------------- -------------
Total liabilities 873 4,243 16,906 311 99,561
------------ ---------------- --------------- ---------------- -------------
Net assets (Note 6) $ 4,162,577 $ 4,986,017 $ 18,450,420 $ 2,878,155 $ 33,476,159
---------------------------------- ============ ================ =============== ================ =============
(a) Investment shares 711,552 536,131 2,312,083 730,496 3,553,732
Investments at cost $ 5,497,738 $ 10,140,749 $ 29,225,015 $ 4,618,689 $ 59,229,832
JNL/
Oppenheimer JNL/PAM JNL/PAM JNL/PIMCO
JNL/MCM Global Growth Asia ex-Japan China-India Real Return
VIP Portfolio Portfolio Portfolio Portfolio Portfolio
------------- ------------- ------------- ----------- ------------
Assets
Investments, at value (a) $ 10,219,323 $ 9,571,361 $ 497,397 $ 1,081,015 $ 15,786,402
Receivables:
Investment securities sold 2,687 1,820 216 65 113,432
Sub-account units sold 17 127 4,679 4,948 1,525
------------- ------------- ------------- ----------- ------------
Total assets 10,222,027 9,573,308 502,292 1,086,028 15,901,359
------------- ------------- ------------- ----------- ------------
Liabilities
Payables:
Investment securities purchased 17 127 4,679 4,948 1,525
Sub-account units redeemed 2,208 1,363 192 13 112,676
Insurance fees due to Jackson
of New York 479 457 24 52 756
------------- ------------- ------------- ----------- ------------
Total liabilities 2,704 1,947 4,895 5,013 114,957
------------- ------------- ------------- ----------- ------------
Net assets (Note 6) $ 10,219,323 $ 9,571,361 $ 497,397 $ 1,081,015 $ 15,786,402
---------------------------------- ============= ============= ============= =========== ============
(a) Investment shares 2,019,629 1,367,337 103,624 255,559 1,563,010
Investments at cost $ 20,492,553 $ 16,140,794 $ 802,408 $ 1,659,406 $ 17,793,983
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/ JNL/ JNL/ JNL/
JNL/PIMCO PPM America PPM America PPM America PPM America
Total Return Core Equity High Yield Mid Cap Value Small Cap Value
Bond Portfolio Portfolio Bond Portfolio Portfolio Portfolio
-------------- ----------- -------------- ------------- ---------------
Assets
Investments, at value (a) $ 39,876,579 $ 1,108,514 $ 11,559,578 $ 187,942 $ 166,325
Receivables:
Investment securities sold 132,582 112 6,326 9 91
Sub-account units sold 5,000 -- 5,530 -- --
-------------- ----------- -------------- ------------- ---------------
Total assets 40,014,161 1,108,626 11,571,434 187,951 166,416
-------------- ----------- -------------- ------------- ---------------
Liabilities
Payables:
Investment securities purchased 5,000 -- 5,530 -- --
Sub-account units redeemed 130,656 64 5,797 -- 84
Insurance fees due to Jackson
of New York 1,926 48 529 9 7
-------------- ----------- -------------- ------------- ---------------
Total liabilities 137,582 112 11,856 9 91
-------------- ----------- -------------- ------------- ---------------
Net assets (Note 6) $ 39,876,579 $ 1,108,514 $ 11,559,578 $ 187,942 $ 166,325
---------------------------------- ============== =========== ============== ============= ===============
(a) Investment shares 3,602,220 88,966 2,591,834 33,442 26,527
Investments at cost $ 42,980,948 $ 1,846,412 $ 18,113,667 $ 277,087 $ 252,598
JNL/ JNL/ JNL/S&P
PPM America Red Rocks Listed Competitive JNL/S&P
Value Equity Private Equity JNL/S&P 4 Advantage Disciplined
Portfolio Portfolio Portfolio Portfolio Growth Portfolio
------------ ---------------- ------------ ----------- ----------------
Assets
Investments, at value (a) $ 2,063,378 $ 237,787 $ 9,166,558 $ 2,163,649 $ 1,077,643
Receivables:
Investment securities sold 119 18 2,658 337 58
Sub-account units sold 1,525 -- -- -- --
------------ ---------------- ------------ ----------- ----------------
Total assets 2,065,022 237,805 9,169,216 2,163,986 1,077,701
------------ ---------------- ------------ ----------- ----------------
Liabilities
Payables:
Investment securities purchased 1,525 -- -- -- --
Sub-account units redeemed 31 7 2,251 226 11
Insurance fees due to Jackson
of New York 88 11 407 111 47
------------ ---------------- ------------ ----------- ----------------
Total liabilities 1,644 18 2,658 337 58
------------ ---------------- ------------ ----------- ----------------
Net assets (Note 6) $ 2,063,378 $ 237,787 $ 9,166,558 $ 2,163,649 $ 1,077,643
---------------------------------- ============ ================ ============ =========== ================
(a) Investment shares 272,573 40,235 1,350,008 313,572 170,783
Investments at cost $ 3,779,744 $ 252,246 $ 11,520,397 $ 3,057,562 $ 1,512,637
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/S&P JNL/S&P JNL/S&P
JNL/S&P Disciplined Dividend Income Growth JNL/S&P
Disciplined Moderate & Growth Retirement Intrinsic Value
Moderate Portfolio Growth Portfolio Portfolio Strategy Portfolio Portfolio
------------------ ---------------- --------------- ------------------ ---------------
Assets
Investments, at value (a) $ 2,186,856 $ 2,967,089 $ 1,233,717 $ 66,810 $ 213,967
Receivables:
Investment securities sold 226 311 54 2 10
Sub-account units sold 7,491 19,122 -- -- --
------------------ ---------------- --------------- ------------------ ---------------
Total assets 2,194,573 2,986,522 1,233,771 66,812 213,977
------------------ ---------------- --------------- ------------------ ---------------
Liabilities
Payables:
Investment securities purchased 7,491 19,122 -- -- --
Sub-account units redeemed 124 177 -- -- --
Insurance fees due to Jackson
of New York 102 134 54 2 10
------------------ ---------------- --------------- ------------------ ---------------
Total liabilities 7,717 19,433 54 2 10
------------------ ---------------- --------------- ------------------ ---------------
Net assets (Note 6) $ 2,186,856 $ 2,967,089 $ 1,233,717 $ 66,810 $ 213,967
------------------------------------- ================== ================ =============== ================== ===============
(a) Investment shares 283,272 435,696 175,244 10,326 34,455
Investments at cost $ 2,695,431 $ 4,069,569 $ 1,419,136 $ 107,211 $ 247,199
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio Growth Portfolio Portfolio Growth Portfolio
---------------- ------------ ---------------- ------------ ----------------
Assets
Investments, at value (a) $ 35,527,346 $ 29,567,249 $ 63,432,693 $ 43,693,737 $ 75,923,881
Receivables:
Investment securities sold 5,648 5,333 41,019 4,706 22,176
Sub-account units sold -- 11,834 36,329 -- 5,735
---------------- ------------ ---------------- ------------ ----------------
Total assets 35,532,994 29,584,416 63,510,041 43,698,443 75,951,792
---------------- ------------ ---------------- ------------ ----------------
Liabilities
Payables:
Investment securities purchased -- 11,834 36,329 -- 5,735
Sub-account units redeemed 3,770 3,951 37,992 2,574 18,492
Insurance fees due to Jackson
of New York 1,878 1,382 3,027 2,132 3,684
---------------- ------------ ---------------- ------------ ----------------
Total liabilities 5,648 17,167 77,348 4,706 27,911
---------------- ------------ ---------------- ------------ ----------------
Net assets (Note 6) $ 35,527,346 $ 29,567,249 $ 63,432,693 $ 43,693,737 $ 75,923,881
------------------------------------ ================ ============ ================ ============ ================
(a) Investment shares 4,234,487 3,162,273 7,989,004 4,871,097 8,637,529
Investments at cost $ 51,225,907 $ 34,831,650 $ 94,054,592 $ 55,074,195 $ 102,362,753
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate JNL/S&P JNL/S&P JNL/S&P
Retirement Retirement Retirement 2015 Retirement 2020 Retirement 2025
Strategy Portfolio Strategy Portfolio Portfolio Portfolio Portfolio
------------------ ------------------ --------------- --------------- ---------------
Assets
Investments, at value (a) $ -- $ -- $ 1,943,404 $ 950,508 $ 705,332
Receivables:
Investment securities sold -- -- 113 56 45
Sub-account units sold -- -- -- -- --
------------------ ------------------ --------------- --------------- ---------------
Total assets -- -- 1,943,517 950,564 705,377
------------------ ------------------ --------------- --------------- ---------------
Liabilities
Payables:
Investment securities purchased -- -- -- -- --
Sub-account units redeemed -- -- 24 10 13
Insurance fees due to Jackson
of New York -- -- 89 46 32
------------------ ------------------ --------------- --------------- ---------------
Total liabilities -- -- 113 56 45
------------------ ------------------ --------------- --------------- ---------------
Net assets (Note 6) $ -- $ -- $ 1,943,404 $ 950,508 $ 705,332
------------------------------------ ================== ================== =============== =============== ===============
(a) Investment shares -- -- 242,925 124,739 95,315
Investments at cost $ -- $ -- $ 2,560,900 $ 1,307,511 $ 945,321
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ----------- ------------ ------------ ------------
Assets
Investments, at value (a) $ 3,029,873 $ 4,842,085 $ 15,323,896 $ 34,271,404 $ 8,649,391
Receivables:
Investment securities sold 1,135 282 3,271 14,028 1,513
Sub-account units sold -- -- 47,314 653,201 12,349
-------------- ----------- ------------ ------------ ------------
Total assets 3,031,008 4,842,367 15,374,481 34,938,633 8,663,253
-------------- ----------- ------------ ------------ ------------
Liabilities
Payables:
Investment securities purchased -- -- 47,314 653,201 12,349
Sub-account units redeemed 1,000 41 2,557 12,384 1,087
Insurance fees due to Jackson
of New York 135 241 714 1,644 426
-------------- ----------- ------------ ------------ ------------
Total liabilities 1,135 282 50,585 667,229 13,862
-------------- ----------- ------------ ------------ ------------
Net assets (Note 6) $ 3,029,873 $ 4,842,085 $ 15,323,896 $ 34,271,404 $ 8,649,391
------------------------------------ ============== =========== ============ ============ ============
(a) Investment shares 336,279 760,139 1,195,312 34,271,404 686,460
Investments at cost $ 3,600,629 $ 7,114,706 $ 19,259,563 $ 34,271,404 $ 11,766,261
See notes to the financial statements.
JNLNY Separate Account I
Statements of Assets and Liabilities
December 31, 2008
[Enlarge/Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- ------------
Assets
Investments, at value (a) $ 20,911,061 $ 20,334,910 $ 17,288,628
Receivables:
Investment securities sold 20,054 30,472 14,392
Sub-account units sold 8,625 1,920 5,173
----------------- ---------------- ------------
Total assets 20,939,740 20,367,302 17,308,193
----------------- ---------------- ------------
Liabilities
Payables:
Investment securities purchased 8,625 1,920 5,173
Sub-account units redeemed 19,128 29,556 13,611
Insurance fees due to Jackson
of New York 926 916 781
----------------- ---------------- ------------
Total liabilities 28,679 32,392 19,565
----------------- ---------------- ------------
Net assets (Note 6) $ 20,911,061 $ 20,334,910 $ 17,288,628
------------------------------------ ================= ================ ============
(a) Investment shares 1,646,540 1,254,467 2,476,881
Investments at cost $ 32,291,585 $ 33,898,054 $ 30,296,962
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/Capital
JNL/AIM Global JNL/AIM JNL/AIM JNL/AIM Guardian Global
Real Estate International Large Cap Small Cap Balanced
Portfolio Growth Portfolio Growth Portfolio Growth Portfolio Portfolio
-------------- ---------------- ---------------- ---------------- ---------------
Investment income
Dividends $ 132,956 $ 58,172 $ 10,461 $ -- $ 129,845
-------------- ---------------- ---------------- ---------------- ---------------
Expenses
Insurance charges (Note 3) 109,898 225,215 126,570 57,730 204,658
-------------- ---------------- ---------------- ---------------- ---------------
Total expenses 109,898 225,215 126,570 57,730 204,658
-------------- ---------------- ---------------- ---------------- ---------------
Net investment gain (loss) 23,058 (167,043) (116,109) (57,730) (74,813)
-------------- ---------------- ---------------- ---------------- ---------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 1,040,960 2,406,884 347,037 349,839 1,187,878
Investments (953,001) (682,933) (81,489) (261,477) (444,786)
Net change in unrealized appreciation
(depreciation) on investments (2,840,660) (8,328,538) (3,479,756) (1,646,005) (4,607,593)
-------------- ---------------- ---------------- ---------------- ---------------
Net realized and unrealized gain (loss) (2,752,701) (6,604,587) (3,214,208) (1,557,643) (3,864,501)
-------------- ---------------- ---------------- ---------------- ---------------
Net increase (decrease) in net assets from
operations $ (2,729,643) $ (6,771,630) $ (3,330,317) $ (1,615,373) $ (3,939,314)
-------------------------------------------- ============== ================ ================ ================ ===============
JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse JNL/
Guardian Global Guardian Guardian U.S. Global Natural Credit Suisse
Diversified International Small Growth Equity Resources Long/Short
Research Portfolio Cap Portfolio Portfolio Portfolio Portfolio
------------------ ------------------- ------------- ----------------- -------------
Investment income
Dividends $ -- $ 1,289 $ 236 $ 18,549 $ --
------------------ ------------------- ------------- ----------------- -------------
Expenses
Insurance charges (Note 3) 104,751 9,912 146,363 449,940 24,794
------------------ ------------------- ------------- ----------------- -------------
Total expenses 104,751 9,912 146,363 449,940 24,794
------------------ ------------------- ------------- ----------------- -------------
Net investment gain (loss) (104,751) (8,623) (146,127) (431,391) (24,794)
------------------ ------------------- ------------- ----------------- -------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment
companies -- -- -- 1,061,063 142,527
Investments (620,259) (40,270) (475,500) (1,463,620) (138,543)
Net change in unrealized appreciation
(depreciation) on investments (2,761,013) (413,505) (3,632,907) (15,160,468) (740,003)
------------------ ------------------- ------------- ----------------- -------------
Net realized and unrealized gain
(loss) (3,381,272) (453,775) (4,108,407) (15,563,025) (736,019)
------------------ ------------------- ------------- ----------------- -------------
Net increase (decrease) in net assets
from operations $ (3,486,023) $ (462,398) $ (4,254,534) $ (15,994,416) $ (760,813)
------------------------------------- ================== =================== ============= ================= =============
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/Franklin
JNL/Eagle JNL/Eagle JNL/Franklin Templeton JNL/Franklin
Core Equity SmallCap Equity Templeton Founding Global Growth Templeton
Portfolio Portfolio Strategy Portfolio Portfolio Income Portfolio
------------ --------------- ------------------ ------------- ----------------
Investment income
Dividends $ 82,129 $ -- $ 467,025 $ 625 $ 25,395
------------ --------------- ------------------ ------------- ----------------
Expenses
Insurance charges (Note 3) 57,689 95,895 569,863 69,046 511,014
------------ --------------- ------------------ ------------- ----------------
Total expenses 57,689 95,895 569,863 69,046 511,014
------------ --------------- ------------------ ------------- ----------------
Net investment gain (loss) 24,440 (95,895) (102,838) (68,421) (485,619)
------------ --------------- ------------------ ------------- ----------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 842,513 282,831 17,723 294 --
Investments (461,714) (512,701) (2,397,936) (444,538) (2,025,352)
Net change in unrealized appreciation
(depreciation) on investments (1,942,728) (2,355,817) (12,990,072) (1,571,608) (7,597,828)
------------ --------------- ------------------ ------------- ----------------
Net realized and unrealized gain (loss) (1,561,929) (2,585,687) (15,370,285) (2,015,852) (9,623,180)
------------ --------------- ------------------ ------------- ----------------
Net increase (decrease) in net assets from
operations $ (1,537,489) $ (2,681,582) $ (15,473,123) $ (2,084,273) $ (10,108,799)
------------------------------------------- ============ =============== ================== ============= ================
JNL/Franklin JNL/ JNL/Goldman JNL/
JNL/Franklin Templeton Goldman Sachs Sachs Emerging Goldman Sachs
Templeton Mutual Small Cap Core Plus Markets Debt Mid Cap
Shares Portfolio Value Portfolio Bond Portfolio Portfolio(a) Value Portfolio
---------------- --------------- -------------- -------------- ---------------
Investment income
Dividends $ -- $ 28,540 $ 614,463 $ -- $ 34,926
---------------- --------------- -------------- -------------- ---------------
Expenses
Insurance charges (Note 3) 112,790 43,444 280,450 89 63,934
---------------- --------------- -------------- -------------- ---------------
Total expenses 112,790 43,444 280,450 89 63,934
---------------- --------------- -------------- -------------- ---------------
Net investment gain (loss) (112,790) (14,904) 334,013 (89) (29,008)
---------------- --------------- -------------- -------------- ---------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 19,017 250,245 241,298 -- 466,088
Investments (391,103) (254,866) (94,974) 3 (353,988)
Net change in unrealized appreciation
(depreciation) on investments (2,822,049) (985,669) (1,665,278) 2,541 (1,650,084)
---------------- --------------- -------------- -------------- ---------------
Net realized and unrealized gain (loss) (3,194,135) (990,290) (1,518,954) 2,544 (1,537,984)
---------------- --------------- -------------- -------------- ---------------
Net increase (decrease) in net assets from
operations $ (3,306,925) $ (1,005,194) $ (1,184,941) $ 2,455 $ (1,566,992)
-------------------------------------------- ================ =============== ============== ============== ===============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio Value Portfolio Portfolio Portfolio Portfolio
-------------- --------------- ------------- --------------- ----------------
Investment income
Dividends $ 182,014 $ 454,949 $ -- $ 289,254 $ 80,400
-------------- --------------- ------------- --------------- ----------------
Expenses
Insurance charges (Note 3) 74,943 373,977 95,263 208,312 204,176
-------------- --------------- ------------- --------------- ----------------
Total expenses 74,943 373,977 95,263 208,312 204,176
-------------- --------------- ------------- --------------- ----------------
Net investment gain (loss) 107,071 80,972 (95,263) 80,942 (123,776)
-------------- --------------- ------------- --------------- ----------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 17,619 3,511,399 -- -- 1,289,154
Investments (48,141) (2,023,006) (808,164) 158,236 (884,251)
Net change in unrealized appreciation
(depreciation) on investments (419,831) (13,935,117) (2,509,991) 348,890 (7,857,730)
-------------- --------------- ------------- --------------- ----------------
Net realized and unrealized gain (loss) (450,353) (12,446,724) (3,318,155) 507,126 (7,452,827)
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net assets from
operations $ (343,282) $ (12,365,752) $ (3,413,418) $ 588,068 $ (7,576,603)
-------------------------------------------- ============== =============== ============= =============== ================
JNL/Lazard JNL/Lazard JNL/M&G JNL/M&G JNL/MCM
Mid Cap Small Cap Global Basics Global Leaders 10 x 10
Equity Portfolio Equity Portfolio Portfolio(a) Portfolio(a) Portfolio
---------------- ---------------- ------------- -------------- ------------
Investment income
Dividends $ 130,039 $ -- $ -- $ 59 $ 125,564
---------------- ---------------- ------------- -------------- ------------
Expenses
Insurance charges (Note 3) 181,630 116,210 45 90 194,191
---------------- ---------------- ------------- -------------- ------------
Total expenses 181,630 116,210 45 90 194,191
---------------- ---------------- ------------- -------------- ------------
Net investment gain (loss) (51,591) (116,210) (45) (31) (68,627)
---------------- ---------------- ------------- -------------- ------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 50,142 148,920 -- -- 102,291
Investments (1,278,369) (1,053,533) 2 4,074 (294,383)
Net change in unrealized appreciation
(depreciation) on investments (3,391,972) (2,034,045) 2,053 3,174 (5,118,368)
---------------- ---------------- ------------- -------------- ------------
Net realized and unrealized gain (loss) (4,620,199) (2,938,658) 2,055 7,248 (5,310,460)
---------------- ---------------- ------------- -------------- ------------
Net increase (decrease) in net assets from
operations $ (4,671,790) $ (3,054,868) $ 2,010 $ 7,217 $ (5,379,087)
-------------------------------------------- ================ ================ ============= ============== ============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM
JNL/MCM Bond Index Communications Consumer Brands Dow Dividend
25 Portfolio Portfolio Sector Portfolio Sector Portfolio Portfolio
------------ ---------- ---------------- ---------------- -------------
Investment income
Dividends $ 564,950 $ 884,610 $ 74,697 $ 4,035 $ 66,050
------------ ---------- ---------------- ---------------- -------------
Expenses
Insurance charges (Note 3) 236,253 383,539 39,331 18,940 297,367
------------ ---------- ---------------- ---------------- -------------
Total expenses 236,253 383,539 39,331 18,940 297,367
------------ ---------- ---------------- ---------------- -------------
Net investment gain (loss) 328,697 501,071 35,366 (14,905) (231,317)
------------ ---------- ---------------- ---------------- -------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 1,473,725 -- 249,248 197,252 55,528
Investments (1,124,971) 140,333 (846,884) (97,027) (3,010,820)
Net change in unrealized appreciation
(depreciation) on investments (7,605,192) (311,872) (673,195) (497,986) (7,125,356)
------------ ---------- ---------------- ---------------- -------------
Net realized and unrealized gain (loss) (7,256,438) (171,539) (1,270,831) (397,761) (10,080,648)
------------ ---------- ---------------- ---------------- -------------
Net increase (decrease) in net assets
from operations $ (6,927,741) $ 329,532 $ (1,235,465) $ (412,666) $ (10,311,965)
---------------------------------------------- ============ ========== ================ ================ =============
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock European 30 Financial Healthcare Index 5
Index Portfolio Portfolio(a) Sector Portfolio Sector Portfolio Portfolio
--------------- ------------ ---------------- ---------------- ------------
Investment income
Dividends $ 70,560 $ 69 $ 54,770 $ 75,250 $ 38,035
--------------- ------------ ---------------- ---------------- ------------
Expenses
Insurance charges (Note 3) 77,785 42 59,841 135,038 47,273
--------------- ------------ ---------------- ---------------- ------------
Total expenses 77,785 42 59,841 135,038 47,273
--------------- ------------ ---------------- ---------------- ------------
Net investment gain (loss) (7,225) 27 (5,071) (59,788) (9,238)
--------------- ------------ ---------------- ---------------- ------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 546,194 -- 235,785 486,990 50,521
Investments (800,915) (3) (615,576) (493,174) (51,345)
Net change in unrealized appreciation
(depreciation) on investments (2,155,719) 641 (1,996,786) (2,672,896) (1,199,049)
--------------- ------------ ---------------- ---------------- ------------
Net realized and unrealized gain (loss) (2,410,440) 638 (2,376,577) (2,679,080) (1,199,873)
--------------- ------------ ---------------- ---------------- ------------
Net increase (decrease) in net assets
from operations $ (2,417,665) $ 665 $ (2,381,648) $ (2,738,868) $ (1,209,111)
---------------------------------------------- =============== ============ ================ ================ ============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 25 NYSE International
Index Portfolio Portfolio 5 Portfolio Portfolio 25 Portfolio
--------------- ------------- ------------- ------------ ------------------
Investment income
Dividends $ 680,684 $ 7,113,415 $ 3,002 $ 945 $ 552
--------------- ------------- ------------- ------------ ------------------
Expenses
Insurance charges (Note 3) 681,009 5,624,434 409,125 62,972 67,369
--------------- ------------- ------------- ------------ ------------------
Total expenses 681,009 5,624,434 409,125 62,972 67,369
--------------- ------------- ------------- ------------ ------------------
Net investment gain (loss) (325) 1,488,981 (406,123) (62,027) (66,817)
--------------- ------------- ------------- ------------ ------------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 707,594 41,391,661 1,372,957 178,711 229,996
Investments (2,960,665) (18,415,123) (2,236,477) (302,030) (445,065)
Net change in unrealized appreciation
(depreciation) on investments (18,514,558) (197,449,724) (12,307,119) (1,829,306) (2,041,086)
--------------- ------------- ------------- ------------ ------------------
Net realized and unrealized gain (loss) (20,767,629) (174,473,186) (13,170,639) (1,952,625) (2,256,155)
--------------- ------------- ------------- ------------ ------------------
Net increase (decrease) in net assets
from operations $ (20,767,954) $(172,984,205) $ (13,576,762) $ (2,014,652) $ (2,322,972)
----------------------------------------------- =============== ============= ============= ============ ==================
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Oil & Gas Pacific Rim 30 S&P 24 S&P 400 MidCap S&P 500
Sector Portfolio Portfolio(a) Portfolio Index Portfolio Index Portfolio
---------------- -------------- ------------ --------------- ---------------
Investment income
Dividends $ 114,532 $ -- $ -- $ 279,573 $ 551,234
---------------- -------------- ------------ --------------- ---------------
Expenses
Insurance charges (Note 3) 350,303 79 46,020 465,823 635,659
---------------- -------------- ------------ --------------- ---------------
Total expenses 350,303 79 46,020 465,823 635,659
---------------- -------------- ------------ --------------- ---------------
Net investment gain (loss) (235,771) (79) (46,020) (186,250) (84,425)
---------------- -------------- ------------ --------------- ---------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 1,314,093 -- 74,975 1,876,925 --
Investments (408,407) 2 (174,619) (1,103,210) (600,671)
Net change in unrealized appreciation
(depreciation) on investments (9,822,647) 2,327 (2,183,430) (13,081,429) (15,525,459)
---------------- -------------- ------------ --------------- ---------------
Net realized and unrealized gain (loss) (8,916,961) 2,329 (2,283,074) (12,307,714) (16,126,130)
---------------- -------------- ------------ --------------- ---------------
Net increase (decrease) in net assets
from operations $ (9,152,732) $ 2,250 $ (2,329,094) $ (12,493,964) $ (16,210,555)
----------------------------------------------- ================ ============== ============ =============== ===============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P SMid Select Small-Cap Small Cap Technology Value Line 30
60 Portfolio Portfolio Index Portfolio Sector Portfolio Portfolio
------------ ---------------- --------------- ---------------- -------------
Investment income
Dividends $ 626 $ 22,231 $ 313,623 $ 682 $ 162,346
------------ ---------------- --------------- ---------------- -------------
Expenses
Insurance charges (Note 3) 39,600 143,240 411,710 71,031 888,494
------------ ---------------- --------------- ---------------- -------------
Total expenses 39,600 143,240 411,710 71,031 888,494
------------ ---------------- --------------- ---------------- -------------
Net investment gain (loss) (38,974) (121,009) (98,087) (70,349) (726,148)
------------ ---------------- --------------- ---------------- -------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 115,218 846,013 1,353,034 259,386 1,287,532
Investments (279,364) (1,139,820) (1,798,972) (280,220) (6,475,196)
Net change in unrealized appreciation
(depreciation) on investments (1,231,137) (3,166,923) (10,509,466) (2,083,506) (25,524,606)
------------ ---------------- --------------- ---------------- -------------
Net realized and unrealized gain (loss) (1,395,283) (3,460,730) (10,955,404) (2,104,340) (30,712,270)
------------ ---------------- --------------- ---------------- -------------
Net increase (decrease) in net assets
from operations $ (1,434,257) $ (3,581,739) $ (11,053,491) $ (2,174,689) $ (31,438,418)
----------------------------------------------- ============ ================ =============== ================ =============
JNL/
Oppenheimer JNL/PAM JNL/PAM JNL/PIMCO
JNL/MCM Global Growth Asia ex-Japan China-India Real Return
VIP Portfolio Portfolio Portfolio(a) Portfolio(a) Portfolio
------------- ------------- ------------- ------------ ------------
Investment income
Dividends $ 218,799 $ 184,813 $ 9,234 $ -- $ 272,082
------------- ------------- ------------- ------------ ------------
Expenses
Insurance charges (Note 3) 250,665 237,738 7,421 13,257 275,724
------------- ------------- ------------- ------------ ------------
Total expenses 250,665 237,738 7,421 13,257 275,724
------------- ------------- ------------- ------------ ------------
Net investment gain (loss) (31,866) (52,925) 1,813 (13,257) (3,642)
------------- ------------- ------------- ------------ ------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 3,612,104 1,713,851 -- -- 676,209
Investments (686,470) (944,249) (104,701) (144,333) (595,548)
Net change in unrealized appreciation
(depreciation) on investments (10,817,829) (7,808,170) (305,012) (578,391) (2,169,399)
------------- ------------- ------------- ------------ ------------
Net realized and unrealized gain (loss) (7,892,195) (7,038,568) (409,713) (722,724) (2,088,738)
------------- ------------- ------------- ------------ ------------
Net increase (decrease) in net assets
from operations $ (7,924,061) $ (7,091,493) $ (407,900) $ (735,981) $ (2,092,380)
----------------------------------------------- ============= ============= ============= ============ ============
(a) Commencement of operations March 31, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/ JNL/ JNL/ JNL/
JNL/PIMCO PPM America PPM America PPM America PPM America
Total Return Core Equity High Yield Mid Cap Value Small Cap Value
Bond Portfolio Portfolio Bond Portfolio Portfolio(a) Portfolio(a)
-------------- ----------- -------------- ------------- ---------------
Investment income
Dividends $ 1,760,292 $ 2,981 $ 1,288,817 $ 2,325 $ 1,141
-------------- ----------- -------------- ------------- ---------------
Expenses
Insurance charges (Note 3) 713,173 27,144 253,118 2,930 2,806
-------------- ----------- -------------- ------------- ---------------
Total expenses 713,173 27,144 253,118 2,930 2,806
-------------- ----------- -------------- ------------- ---------------
Net investment gain (loss) 1,047,119 (24,163) 1,035,699 (605) (1,665)
-------------- ----------- -------------- ------------- ---------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 1,568,078 -- -- -- --
Investments 50,760 (177,554) (1,430,062) (112,299) (82,498)
Net change in unrealized appreciation
(depreciation) on investments (3,422,988) (696,273) (4,537,747) (89,145) (86,274)
-------------- ----------- -------------- ------------- ---------------
Net realized and unrealized gain (loss) (1,804,150) (873,827) (5,967,809) (201,444) (168,772)
-------------- ----------- -------------- ------------- ---------------
Net increase (decrease) in net assets
from operations $ (757,031) $ (897,990) $ (4,932,110) $ (202,049) $ (170,437)
----------------------------------------------- ============== =========== ============== ============= ===============
JNL/ JNL/ JNL/S&P
PPM America Red Rocks Listed Competitive JNL/S&P
Value Equity Private Equity JNL/S&P 4 Advantage Disciplined
Portfolio Portfolio(b) Portfolio Portfolio Growth Portfolio
------------ ---------------- ------------ ----------- ----------------
Investment income
Dividends $ 80,867 $ 1,096 $ 383 $ 32,090 $ 15,461
------------ ---------------- ------------ ----------- ----------------
Expenses
Insurance charges (Note 3) 53,008 381 86,400 48,789 14,888
------------ ---------------- ------------ ----------- ----------------
Total expenses 53,008 381 86,400 48,789 14,888
------------ ---------------- ------------ ----------- ----------------
Net investment gain (loss) 27,859 715 (86,017) (16,699) 573
------------ ---------------- ------------ ----------- ----------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 412,684 -- -- -- 9,457
Investments (187,718) (107) (183,365) (62,684) (22,704)
Net change in unrealized appreciation
(depreciation) on investments (2,265,646) (14,459) (2,353,070) (844,231) (454,553)
------------ ---------------- ------------ ----------- ----------------
Net realized and unrealized gain (loss) (2,040,680) (14,566) (2,536,435) (906,915) (467,800)
------------ ---------------- ------------ ----------- ----------------
Net increase (decrease) in net assets
from operations $ (2,012,821) $ (13,851) $ (2,622,452) $ (923,614) $ (467,227)
----------------------------------------------- ============ ================ ============ =========== ================
(a) Commencement of operations March 31, 2008.
(b) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/S&P JNL/S&P JNL/S&P
JNL/S&P Disciplined Dividend Income Growth JNL/S&P
Disciplined Moderate & Growth Retirement Intrinsic Value
Moderate Portfolio Growth Portfolio Portfolio Strategy Portfolio Portfolio
------------------ ---------------- --------------- ------------------ ---------------
Investment income
Dividends $ 23,793 $ 36,982 $ 31,031 $ 6,850 $ 2,627
------------------ ---------------- --------------- ------------------ ---------------
Expenses
Insurance charges (Note 3) 30,276 42,723 10,338 2,387 1,634
------------------ ---------------- --------------- ------------------ ---------------
Total expenses 30,276 42,723 10,338 2,387 1,634
------------------ ---------------- --------------- ------------------ ---------------
Net investment gain (loss) (6,483) (5,741) 20,693 4,463 993
------------------ ---------------- --------------- ------------------ ---------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment
companies 11,109 23,222 620 52 1,699
Investments (92,019) (123,501) (12,069) (52,024) 3,020
Net change in unrealized appreciation
(depreciation) on investments (515,378) (1,110,338) (184,731) (28,577) (33,233)
------------------ ---------------- --------------- ------------------ ---------------
Net realized and unrealized gain
(loss) (596,288) (1,210,617) (196,180) (80,549) (28,514)
------------------ ---------------- --------------- ------------------ ---------------
Net increase (decrease) in net assets
from operations $ (602,771) $ (1,216,358) $ (175,487) $ (76,086) $ (27,521)
------------------------------------- ================== ================ =============== ================== ===============
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio Growth Portfolio Portfolio Growth Portfolio
---------------- ------------ ---------------- ------------- ----------------
Investment income
Dividends $ 187,001 $ 1,174,374 $ 475,132 $ 1,845,616 $ 2,128,781
---------------- ------------ ---------------- ------------- ----------------
Expenses
Insurance charges (Note 3) 990,767 473,640 1,585,584 860,207 1,713,024
---------------- ------------ ---------------- ------------- ----------------
Total expenses 990,767 473,640 1,585,584 860,207 1,713,024
---------------- ------------ ---------------- ------------- ----------------
Net investment gain (loss) (803,766) 700,734 (1,110,452) 985,409 415,757
---------------- ------------ ---------------- ------------- ----------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment
companies 2,410,567 443,440 6,602,153 1,082,727 4,018,436
Investments 2,060,967 (429,766) (3,142,866) (841,710) (2,584,272)
Net change in unrealized appreciation
(depreciation) on investments (27,868,050) (5,461,486) (40,847,002) (13,299,497) (33,453,549)
---------------- ------------ ---------------- ------------- ----------------
Net realized and unrealized gain
(loss) (23,396,516) (5,447,812) (37,387,715) (13,058,480) (32,019,385)
---------------- ------------ ---------------- ------------- ----------------
Net increase (decrease) in net assets
from operations $ (24,200,282) $ (4,747,078) $ (38,498,167) $ (12,073,071) $ (31,603,628)
------------------------------------- ================ ============ ================ ============= ================
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate JNL/S&P JNL/S&P JNL/S&P
Retirement Retirement Retirement 2015 Retirement 2020 Retirement 2025
Strategy Portfolio Strategy Portfolio Portfolio Portfolio Portfolio
------------------ ------------------ --------------- --------------- ---------------
Investment income
Dividends $ -- $ -- $ 20,920 $ 14,280 $ 9,294
------------------ ------------------ --------------- --------------- ---------------
Expenses
Insurance charges (Note 3) -- -- 31,446 19,602 10,828
------------------ ------------------ --------------- --------------- ---------------
Total expenses -- -- 31,446 19,602 10,828
------------------ ------------------ --------------- --------------- ---------------
Net investment gain (loss) -- -- (10,526) (5,322) (1,534)
------------------ ------------------ --------------- --------------- ---------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment
companies -- -- 45,685 44,085 31,305
Investments -- -- (32,827) (97,840) (8,928)
Net change in unrealized appreciation
(depreciation) on investments -- -- (688,727) (417,775) (261,891)
------------------ ------------------ --------------- --------------- ---------------
Net realized and unrealized gain (loss) -- -- (675,869) (471,530) (239,514)
------------------ ------------------ --------------- --------------- ---------------
Net increase (decrease) in net assets
from operations $ -- $ -- $ (686,395) $ (476,852) $ (241,048)
--------------------------------------- ================== ================== =============== =============== ===============
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ------------ ------------ ------------ ------------
Investment income
Dividends $ 46,206 $ 75,039 $ 436,704 $ 642,772 $ 3,534
-------------- ------------ ------------ ------------ ------------
Expenses
Insurance charges (Note 3) 60,345 32,874 290,662 540,080 189,858
-------------- ------------ ------------ ------------ ------------
Total expenses 60,345 32,874 290,662 540,080 189,858
-------------- ------------ ------------ ------------ ------------
Net investment gain (loss) (14,139) 42,165 146,042 102,692 (186,324)
-------------- ------------ ------------ ------------ ------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment
companies 47,360 1,198 728,443 -- 154,478
Investments (60,803) (257,752) (483,962) -- (927,207)
Net change in unrealized appreciation
(depreciation) on investments (739,409) (2,272,621) (4,470,538) -- (3,153,348)
-------------- ------------ ------------ ------------ ------------
Net realized and unrealized gain (loss) (752,852) (2,529,175) (4,226,057) -- (3,926,077)
-------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations $ (766,991) $ (2,487,010) $ (4,080,015) $ 102,692 $ (4,112,401)
--------------------------------------- ============== ============ ============ ============ ============
See notes to the financial statements.
JNLNY Separate Account I
Statements of Operations
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- -------------
Investment income
Dividends $ 25,545 $ -- $ 475,043
----------------- ---------------- -------------
Expenses
Insurance charges (Note 3) 488,647 476,692 414,003
----------------- ---------------- -------------
Total expenses 488,647 476,692 414,003
----------------- ---------------- -------------
Net investment gain (loss) (463,102) (476,692) 61,040
----------------- ---------------- -------------
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies 224,507 2,029,207 2,844,661
Investments (966,140) (2,062,458) (1,291,857)
Net change in unrealized appreciation
(depreciation) on investments (15,010,456) (14,397,375) (13,854,548)
----------------- ---------------- -------------
Net realized and unrealized gain (loss) (15,752,089) (14,430,626) (12,301,744)
----------------- ---------------- -------------
Net increase (decrease) in net assets
from operations $ (16,215,191) $ (14,907,318) $ (12,240,704)
------------------------------------------ ================= ================ =============
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/Capital
JNL/AIM Global JNL/AIM JNL/AIM JNL/AIM Guardian Global
Real Estate International Large Cap Small Cap Balanced
Portfolio Growth Portfolio Growth Portfolio Growth Portfolio Portfolio
-------------- ---------------- ---------------- ---------------- ---------------
Operations
Net investment income (loss) $ 23,058 $ (167,043) $ (116,109) $ (57,730) $ (74,813)
Net realized gain (loss) on investments 87,959 1,723,951 265,548 88,362 743,092
Net change in unrealized appreciation
(depreciation) on investments (2,840,660) (8,328,538) (3,479,756) (1,646,005) (4,607,593)
-------------- ---------------- ---------------- ---------------- ---------------
Net increase (decrease) in net assets
from operations (2,729,643) (6,771,630) (3,330,317) (1,615,373) (3,939,314)
-------------- ---------------- ---------------- ---------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 1,277,933 1,663,766 1,820,176 490,642 2,831,116
Surrenders and terminations (413,474) (943,943) (530,531) (448,047) (1,469,192)
Transfers between portfolios (257,966) 1,117,160 199,842 (42,029) (331,943)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (8,309) (15,360) (10,136) (12,365) (19,071)
-------------- ---------------- ---------------- ---------------- ---------------
Net increase (decrease) in net assets from
contract transactions 598,184 1,821,623 1,479,351 (11,799) 1,010,910
-------------- ---------------- ---------------- ---------------- ---------------
Net increase (decrease) in net assets (2,131,459) (4,950,007) (1,850,966) (1,627,172) (2,928,404)
Net assets beginning of period 6,849,941 14,387,302 7,403,512 3,930,422 12,553,589
-------------- ---------------- ---------------- ---------------- ---------------
Net assets end of period $ 4,718,482 $ 9,437,295 $ 5,552,546 $ 2,303,250 $ 9,625,185
------------------------------------------ ============== ================ ================ ================ ===============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 529,758 815,776 535,381 257,777 990,069
Units Issued 296,207 402,804 291,856 88,118 445,909
Units Redeemed (249,087) (312,355) (176,925) (92,104) (359,313)
-------------- ---------------- ---------------- ---------------- ---------------
Units Outstanding at December 31, 2008 576,878 906,225 650,312 253,791 1,076,665
============== ================ ================ ================ ===============
JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse JNL/
Guardian Global Guardian Guardian U.S. Global Natural Credit Suisse
Diversified International Small Growth Equity Resources Long/Short
Research Portfolio Cap Portfolio Portfolio Portfolio Portfolio
------------------ ------------------- ------------- ----------------- --------------
Operations
Net investment income (loss) $ (104,751) $ (8,623) $ (146,127) $ (431,391) $ (24,794)
Net realized gain (loss) on
investments (620,259) (40,270) (475,500) (402,557) 3,984
Net change in unrealized appreciation
(depreciation) on investments (2,761,013) (413,505) (3,632,907) (15,160,468) (740,003)
------------------ ------------------- ------------- ----------------- --------------
Net increase (decrease) in net assets
from operations (3,486,023) (462,398) (4,254,534) (15,994,416) (760,813)
------------------ ------------------- ------------- ----------------- --------------
Contract transactions (1)
Purchase payments (Note 4) 2,343,194 958,884 1,996,714 5,545,521 440,552
Surrenders and terminations (744,655) (12,841) (1,317,560) (1,303,273) (119,447)
Transfers between portfolios 746,164 70,604 870,137 6,688,317 1,524,707
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (5,065) (17) (12,410) (19,764) (1,671)
------------------ ------------------- ------------- ----------------- --------------
Net increase (decrease) in net assets
from contract transactions 2,339,638 1,016,630 1,536,881 10,910,801 1,844,141
------------------ ------------------- ------------- ----------------- --------------
Net increase (decrease) in net assets (1,146,385) 554,232 (2,717,653) (5,083,615) 1,083,328
Net assets beginning of period 5,787,341 154,863 9,399,344 22,157,310 517,669
------------------ ------------------- ------------- ----------------- --------------
Net assets end of period $ 4,640,956 $ 709,095 $ 6,681,691 $ 17,073,695 $ 1,600,997
----------------------------------------- ================== =================== ============= ================= ==============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 299,045 15,713 536,619 1,622,486 48,508
Units Issued 203,109 177,093 207,349 2,953,969 272,220
Units Redeemed (154,803) (34,148) (186,889) (1,964,865) (76,048)
------------------ ------------------- ------------- ----------------- --------------
Units Outstanding at December 31, 2008 347,351 158,658 557,079 2,611,590 244,680
================== =================== ============= ================= ==============
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/Franklin
JNL/Eagle JNL/Eagle JNL/Franklin Templeton JNL/Franklin
Core Equity SmallCap Equity Templeton Founding Global Growth Templeton
Portfolio Portfolio Strategy Portfolio Portfolio Income Portfolio
------------ --------------- ------------------ ------------- ----------------
Operations
Net investment income (loss) $ 24,440 $ (95,895) $ (102,838) $ (68,421) $ (485,619)
Net realized gain (loss) on investments 380,799 (229,870) (2,380,213) (444,244) (2,025,352)
Net change in unrealized appreciation
(depreciation) on investments (1,942,728) (2,355,817) (12,990,072) (1,571,608) (7,597,828)
------------ --------------- ------------------ ------------- ----------------
Net increase (decrease) in net assets
from operations (1,537,489) (2,681,582) (15,473,123) (2,084,273) (10,108,799)
------------ --------------- ------------------ ------------- ----------------
Contract transactions (1)
Purchase payments (Note 4) 170,800 1,336,333 10,404,707 2,166,874 6,483,228
Surrenders and terminations (501,103) (497,626) (1,704,418) (366,449) (2,011,959)
Transfers between portfolios (66,326) (606,054) (3,017,429) (1,354,459) 1,199,617
Net annuitization transactions (4,128) (8,286) -- -- --
Policyholder charges (Note 3) (3,648) (4,473) (37,784) (7,258) (34,148)
------------ --------------- ------------------ ------------- ----------------
Net increase (decrease) in net assets from
contract transactions (404,405) 219,894 5,645,076 438,708 5,636,738
------------ --------------- ------------------ ------------- ----------------
Net increase (decrease) in net assets (1,941,894) (2,461,688) (9,828,047) (1,645,565) (4,472,061)
Net assets beginning of period 4,094,228 6,747,446 36,507,187 4,739,788 28,075,716
------------ --------------- ------------------ ------------- ----------------
Net assets end of period $ 2,152,334 $ 4,285,758 $ 26,679,140 $ 3,094,223 $ 23,603,655
------------------------------------------ ============ =============== ================== ============= ================
(1) Contract unit transactions
Units Outstanding at December 31, 2007 285,817 296,114 3,677,629 479,305 2,585,654
Units Issued 32,499 109,207 2,008,111 328,649 3,088,839
Units Redeemed (83,525) (106,510) (1,405,597) (273,224) (2,530,645)
------------ --------------- ------------------ ------------- ----------------
Units Outstanding at December 31, 2008 234,791 298,811 4,280,143 534,730 3,143,848
============ =============== ================== ============= ================
JNL/Franklin JNL/ JNL/Goldman JNL/
JNL/Franklin Templeton Goldman Sachs Sachs Emerging Goldman Sachs
Templeton Mutual Small Cap Core Plus Markets Debt Mid Cap
Shares Portfolio Value Portfolio Bond Portfolio Portfolio(a) Value Portfolio
---------------- --------------- -------------- -------------- ---------------
Operations
Net investment income (loss) $ (112,790) $ (14,904) $ 334,013 $ (89) $ (29,008)
Net realized gain (loss) on investments (372,086) (4,621) 146,324 3 112,100
Net change in unrealized appreciation
(depreciation) on investments (2,822,049) (985,669) (1,665,278) 2,541 (1,650,084)
---------------- --------------- -------------- -------------- ---------------
Net increase (decrease) in net assets
from operations (3,306,925) (1,005,194) (1,184,941) 2,455 (1,566,992)
---------------- --------------- -------------- -------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 2,497,571 969,338 2,652,197 66,782 738,860
Surrenders and terminations (506,597) (160,732) (916,016) (44) (284,257)
Transfers between portfolios (312,144) (234,192) (1,421,425) 21,023 (411,455)
Net annuitization transactions 50,000 -- -- -- --
Policyholder charges (Note 3) (6,874) (3,629) (11,220) -- (5,154)
---------------- --------------- -------------- -------------- ---------------
Net increase (decrease) in net assets from
contract transactions 1,721,956 570,785 303,536 87,761 37,994
---------------- --------------- -------------- -------------- ---------------
Net increase (decrease) in net assets (1,584,969) (434,409) (881,405) 90,216 (1,528,998)
Net assets beginning of period 7,161,423 2,805,589 15,399,402 -- 4,209,063
---------------- --------------- -------------- -------------- ---------------
Net assets end of period $ 5,576,454 $ 2,371,180 $ 14,517,997 $ 90,216 $ 2,680,065
------------------------------------------ ================ =============== ============== ============== ===============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 726,143 241,912 826,844 -- 326,690
Units Issued 420,447 169,680 231,573 9,361 143,263
Units Redeemed (221,482) (101,610) (233,687) (5) (139,217)
---------------- --------------- -------------- -------------- ---------------
Units Outstanding at December 31, 2008 925,108 309,982 824,730 9,356 330,736
================ =============== ============== ============== ===============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio Value Portfolio Portfolio Portfolio Portfolio
-------------- --------------- ------------- --------------- ----------------
Operations
Net investment income (loss) $ 107,071 $ 80,972 $ (95,263) $ 80,942 $ (123,776)
Net realized gain (loss) on investments (30,522) 1,488,393 (808,164) 158,236 404,903
Net change in unrealized appreciation
(depreciation) on investments (419,831) (13,935,117) (2,509,991) 348,890 (7,857,730)
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net assets
from operations (343,282) (12,365,752) (3,413,418) 588,068 (7,576,603)
-------------- --------------- ------------- --------------- ----------------
Contract transactions (1)
Purchase payments (Note 4) 802,983 2,752,524 636,307 1,682,880 3,332,738
Surrenders and terminations (382,132) (1,273,865) (983,199) (1,462,498) (655,839)
Transfers between portfolios 273,510 (3,421,637) (303,941) 3,788,866 2,456,282
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (1,845) (23,258) (10,422) (19,741) (17,301)
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net assets from
contract transactions 692,516 (1,966,236) (661,255) 3,989,507 5,115,880
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net assets 349,234 (14,331,988) (4,074,673) 4,577,575 (2,460,723)
Net assets beginning of period 3,611,040 28,957,631 7,906,677 9,980,933 10,062,436
-------------- --------------- ------------- --------------- ----------------
Net assets end of period $ 3,960,274 $ 14,625,643 $ 3,832,004 $ 14,558,508 $ 7,601,713
------------------------------------------ ============== =============== ============= =============== ================
(1) Contract unit transactions
Units Outstanding at December 31, 2007 344,371 1,675,181 486,325 659,095 715,381
Units Issued 224,924 523,592 105,518 617,880 784,798
Units Redeemed (160,445) (638,687) (194,484) (381,027) (400,663)
-------------- --------------- ------------- --------------- ----------------
Units Outstanding at December 31, 2008 408,850 1,560,086 397,359 895,948 1,099,516
============== =============== ============= =============== ================
JNL/Lazard JNL/Lazard JNL/M&G JNL/M&G JNL/MCM
Mid Cap Small Cap Global Basics Global Leaders 10 x 10
Equity Portfolio Equity Portfolio Portfolio(a) Portfolio(a) Portfolio
---------------- ---------------- ------------- -------------- ------------
Operations
Net investment income (loss) $ (51,591) $ (116,210) $ (45) $ (31) $ (68,627)
Net realized gain (loss) on investments (1,228,227) (904,613) 2 4,074 (192,092)
Net change in unrealized appreciation
(depreciation) on investments (3,391,972) (2,034,045) 2,053 3,174 (5,118,368)
---------------- ---------------- ------------- -------------- ------------
Net increase (decrease) in net assets
from operations (4,671,790) (3,054,868) 2,010 7,217 (5,379,087)
---------------- ---------------- ------------- -------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 898,353 444,064 20,425 25,591 7,240,949
Surrenders and terminations (912,560) (627,489) (18) (46) (518,382)
Transfers between portfolios (496,398) (263,131) (1) 4,952 3,267,313
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (15,464) (13,983) -- -- (5,071)
---------------- ---------------- ------------- -------------- ------------
Net increase (decrease) in net assets from
contract transactions (526,069) (460,539) 20,406 30,497 9,984,809
---------------- ---------------- ------------- -------------- ------------
Net increase (decrease) in net assets (5,197,859) (3,515,407) 22,416 37,714 4,605,722
Net assets beginning of period 12,268,220 7,956,722 -- -- 6,751,325
---------------- ---------------- ------------- -------------- ------------
Net assets end of period $ 7,070,361 $ 4,441,315 $ 22,416 $ 37,714 $ 11,357,047
------------------------------------------ ================ ================ ============= ============== ============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 647,715 521,559 -- -- 688,588
Units Issued 146,085 141,301 2,675 10,343 1,300,461
Units Redeemed (174,512) (181,574) (2) (5,812) (143,832)
---------------- ---------------- ------------- -------------- ------------
Units Outstanding at December 31, 2008 619,288 481,286 2,673 4,531 1,845,217
================ ================ ============= ============== ============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM
JNL/MCM Bond Index Communications Consumer Brands Dow Dividend
25 Portfolio Portfolio Sector Portfolio Sector Portfolio Portfolio
------------ ------------ ---------------- ---------------- ------------
Operations
Net investment income (loss) $ 328,697 $ 501,071 $ 35,366 $ (14,905) $ (231,317)
Net realized gain (loss) on investments 348,754 140,333 (597,636) 100,225 (2,955,292)
Net change in unrealized appreciation
(depreciation) on investments (7,605,192) (311,872) (673,195) (497,986) (7,125,356)
------------ ------------ ---------------- ---------------- ------------
Net increase (decrease) in net assets
from operations (6,927,741) 329,532 (1,235,465) (412,666) (10,311,965)
------------ ------------ ---------------- ---------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 875,303 2,437,230 202,021 269,771 2,252,811
Surrenders and terminations (1,073,081) (1,684,546) (161,130) (37,849) (793,322)
Transfers between portfolios 4,846,101 (2,528,765) (1,877,980) 227,065 (1,219,918)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (17,575) (17,143) (1,846) (437) (11,762)
------------ ------------ ---------------- ---------------- ------------
Net increase (decrease) in net assets from
contract transactions 4,630,748 (1,793,224) (1,838,935) 458,550 227,809
------------ ------------ ---------------- ---------------- ------------
Net increase (decrease) in net assets (2,296,993) (1,463,692) (3,074,400) 45,884 (10,084,156)
Net assets beginning of period 14,077,743 21,146,527 4,121,014 1,042,371 19,681,724
------------ ------------ ---------------- ---------------- ------------
Net assets end of period $ 11,780,750 $ 19,682,835 $ 1,046,614 $ 1,088,255 $ 9,597,568
------------------------------------------ ============ ============ ================ ================ ============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 1,205,832 1,814,150 656,403 100,483 1,889,576
Units Issued 898,640 353,963 334,752 106,835 2,136,640
Units Redeemed (497,929) (516,122) (706,315) (52,102) (2,175,702)
------------ ------------ ---------------- ---------------- ------------
Units Outstanding at December 31, 2008 1,606,543 1,651,991 284,840 155,216 1,850,514
============ ============ ================ ================ ============
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock European 30 Financial Healthcare Index 5
Index Portfolio Portfolio(a) Sector Portfolio Sector Portfolio Portfolio
--------------- ------------ ---------------- ---------------- -----------
Operations
Net investment income (loss) $ (7,225) $ 27 $ (5,071) $ (59,788) $ (9,238)
Net realized gain (loss) on investments (254,721) (3) (379,791) (6,184) (824)
Net change in unrealized appreciation
(depreciation) on investments (2,155,719) 641 (1,996,786) (2,672,896) (1,199,049)
--------------- ------------ ---------------- ---------------- -----------
Net increase (decrease) in net assets
from operations (2,417,665) 665 (2,381,648) (2,738,868) (1,209,111)
--------------- ------------ ---------------- ---------------- -----------
Contract transactions (1)
Purchase payments (Note 4) 545,201 19,972 1,737,426 1,444,171 3,337,531
Surrenders and terminations (382,975) (16) (184,105) (612,355) (53,108)
Transfers between portfolios 1,257,360 2,513 1,085,907 4,498,735 91,562
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (3,778) -- (3,819) (12,218) (496)
--------------- ------------ ---------------- ---------------- -----------
Net increase (decrease) in net assets from
contract transactions 1,415,808 22,469 2,635,409 5,318,333 3,375,489
--------------- ------------ ---------------- ---------------- -----------
Net increase (decrease) in net assets (1,001,857) 23,134 253,761 2,579,465 2,166,378
Net assets beginning of period 4,602,867 -- 2,950,210 6,106,794 1,981,828
--------------- ------------ ---------------- ---------------- -----------
Net assets end of period $ 3,601,010 $ 23,134 $ 3,203,971 $ 8,686,259 $ 4,148,206
------------------------------------------ =============== ============ ================ ================ ===========
(1) Contract unit transactions
Units Outstanding at December 31, 2007 465,249 -- 254,628 500,013 200,503
Units Issued 620,185 2,696 490,949 824,245 441,502
Units Redeemed (491,937) (2) (179,855) (387,065) (33,948)
--------------- ------------ ---------------- ---------------- -----------
Units Outstanding at December 31, 2008 593,497 2,694 565,722 937,193 608,057
=============== ============ ================ ================ ===========
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 25 NYSE International
Index Portfolio Portfolio 5 Portfolio Portfolio 25 Portfolio
--------------- ------------ ------------- ------------- ------------------
Operations
Net investment income (loss) $ (325) $ 1,488,981 $ (406,123) $ (62,027) $ (66,817)
Net realized gain (loss)
on investments (2,253,071) 22,976,538 (863,520) (123,319) (215,069)
Net change in unrealized
appreciation (depreciation)
on investments (18,514,558) (197,449,724) (12,307,119) (1,829,306) (2,041,086)
--------------- ------------ ------------- ------------- ------------------
Net increase (decrease) in net
assets from operations (20,767,954) (172,984,205) (13,576,762) (2,014,652) (2,322,972)
--------------- ------------ ------------- ------------- ------------------
Contract transactions (1)
Purchase payments (Note 4) 3,827,207 41,447,656 10,808,858 609,912 1,525,524
Surrenders and terminations (2,936,043) (17,542,353) (1,386,503) (207,413) (201,818)
Transfers between portfolios (444,131) (41,825,936) (2,760,959) (474,668) 42,928
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (31,553) (353,689) (24,882) (4,185) (2,767)
--------------- ------------ ------------- ------------- ------------------
Net increase (decrease) in net
assets from contract
transactions 415,480 (18,274,322) 6,636,514 (76,354) 1,363,867
--------------- ------------ ------------- ------------- ------------------
Net increase (decrease) in net
assets (20,352,474) (191,258,527) (6,940,248) (2,091,006) (959,105)
Net assets beginning of period 43,239,524 411,200,818 23,934,782 4,932,437 4,035,778
--------------- ------------ ------------- ------------- ------------------
Net assets end of period $ 22,887,050 $219,942,291 $ 16,994,534 $ 2,841,431 $ 3,076,673
---------------------------------- =============== ============ ============= ============= ==================
1 Contract unit transactions
Units Outstanding at
December 31, 2007 2,147,185 29,804,544 2,003,921 390,101 349,652
Units Issued 1,259,415 5,742,417 2,544,603 211,156 435,640
Units Redeemed (1,377,001) (7,339,505) (1,870,824) (210,461) (283,920)
--------------- ------------ ------------- ------------- ------------------
Units Outstanding at
December 31, 2008 2,029,599 28,207,456 2,677,700 390,796 501,372
=============== ============ ============= ============= ==================
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Oil & Gas Pacific Rim 30 S&P 24 S&P 400 MidCap S&P 500
Sector Portfolio Portfolio(a) Portfolio Index Portfolio Index Portfolio
---------------- -------------- ------------- ---------------- ---------------
Operations
Net investment income (loss) $ (235,771) $ (79) $ (46,020) $ (186,250) $ (84,425)
Net realized gain (loss)
on investments 905,686 2 (99,644) 773,715 (600,671)
Net change in unrealized
appreciation (depreciation)
on investments (9,822,647) 2,327 (2,183,430) (13,081,429) (15,525,459)
---------------- -------------- ------------- ---------------- ---------------
Net increase (decrease) in net
assets from operations (9,152,732) 2,250 (2,329,094) (12,493,964) (16,210,555)
---------------- -------------- ------------- ---------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 4,015,717 20,968 463,694 1,731,767 3,119,905
Surrenders and terminations ( 1,331,096) (31) (136,620) (2,568,317) (3,011,965)
Transfers between portfolios (1,067,660) 2,516 7,537,388 1,149,289 (2,213,619)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (36,099) -- (1,290) (29,301) (37,436)
---------------- -------------- ------------- ---------------- ---------------
Net increase (decrease) in net
assets from contract
transactions 1,580,862 23,453 7,863,172 283,438 (2,143,115)
---------------- -------------- ------------- ---------------- ---------------
Net increase (decrease) in net
assets (7,571,870) 25,703 5,534,078 (12,210,526) (18,353,670)
Net assets beginning of period 20,776,930 -- 604,556 31,367,769 44,015,701
---------------- -------------- ------------- ---------------- ---------------
Net assets end of period $ 13,205,060 $ 25,703 $ 6,138,634 $ 19,157,243 $ 25,662,031
---------------------------------- ================ ============== ============= ================ ===============
1 Contract unit transactions
Units Outstanding at
December 31, 2007 580,156 -- 56,337 1,960,684 3,513,891
Units Issued 332,282 2,692 911,676 535,176 732,171
Units Redeemed (312,948) (3) (93,199) (531,673) (891,999)
---------------- -------------- ------------- ---------------- ---------------
Units Outstanding at
December 31, 2008 599,490 2,689 874,814 1,964,187 3,354,063
================ ============== ============= ================ ===============
(a) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P SMid Select Small-Cap Small Cap Technology Value Line 30
60 Portfolio Portfolio Index Portfolio Sector Portfolio Portfolio
------------ ---------------- --------------- ---------------- -------------
Operations
Net investment income (loss) $ (38,974) $ (121,009) $ (98,087) $ (70,349) $ (726,148)
Net realized gain (loss)
on investments (164,146) (293,807) (445,938) (20,834) (5,187,664)
Net change in unrealized
appreciation (depreciation)
on investments (1,231,137) (3,166,923) (10,509,466) (2,083,506) (25,524,606)
------------ ---------------- --------------- ---------------- -------------
Net increase (decrease) in net
assets from operations (1,434,257) (3,581,739) (11,053,491) (2,174,689) (31,438,418)
------------ ---------------- --------------- ---------------- -------------
Contract transactions (1)
Purchase payments (Note 4) 380,939 665,813 1,629,737 905,601 7,302,660
Surrenders and terminations (134,330) (787,665) (2,162,693) (171,757) (2,821,665)
Transfers between portfolios 4,205,571 (1,033,844) 3,253,641 311,024 (5,845,611)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (1,544) (11,504) (23,286) (2,854) (62,266)
------------ ---------------- --------------- ---------------- -------------
Net increase (decrease) in net
assets from contract
transactions 4,450,636 (1,167,200) 2,697,399 1,042,014 (1,426,882)
------------ ---------------- --------------- ---------------- -------------
Net increase (decrease) in net
assets 3,016,379 (4,748,939) (8,356,092) (1,132,675) (32,865,300)
Net assets beginning of period 1,146,198 9,734,956 26,806,512 4,010,830 66,341,459
------------ ---------------- --------------- ---------------- -------------
Net assets end of period $ 4,162,577 $ 4,986,017 $ 18,450,420 $ 2,878,155 $ 33,476,159
---------------------------------- ============ ================ =============== ================ =============
1 Contract unit transactions
Units Outstanding at
December 31, 2007 129,926 547,863 1,795,187 587,409 3,766,869
Units Issued 765,946 103,280 743,215 513,062 2,176,726
Units Redeemed (207,078) (178,079) (597,417) (342,016) (2,273,938)
------------ ---------------- --------------- ---------------- -------------
Units Outstanding at
December 31, 2008 688,794 473,064 1,940,985 758,455 3,669,657
============ ================ =============== ================ =============
JNL/
Oppenheimer JNL/PAM JNL/PAM JNL/PIMCO
JNL/MCM Global Growth Asia ex-Japan China-India Real Return
VIP Portfolio Portfolio Portfolio(a) Portfolio(a) Portfolio
------------- ------------- ------------- ------------- -----------
Operations
Net investment income (loss) $ (31,866) $ (52,925) $ 1,813 $ (13,257) $ (3,642)
Net realized gain (loss)
on investments 2,925,634 769,602 (104,701) (144,333) 80,661
Net change in unrealized
appreciation (depreciation)
on investments (10,817,829) (7,808,170) (305,012) (578,391) (2,169,399)
------------- ------------- ------------- ------------- -----------
Net increase (decrease) in net
assets from operations (7,924,061) (7,091,493) (407,900) (735,981) (2,092,380)
------------- ------------- ------------- ------------- -----------
Contract transactions (1)
Purchase payments (Note 4) 1,449,159 2,117,863 322,974 895,407 4,913,604
Surrenders and terminations (790,156) (1,128,110) (13,134) (31,987) (1,067,328)
Transfers between portfolios (544,468) (1,463,796) 595,488 954,186 10,897,114
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (13,579) (16,285) (31) (610) (16,401)
------------- ------------- ------------- ------------- -----------
Net increase (decrease) in net
assets from contract
transactions 100,956 (490,328) 905,297 1,816,996 14,726,989
------------- ------------- ------------- ------------- -----------
Net increase (decrease) in net
assets (7,823,105) (7,581,821) 497,397 1,081,015 12,634,609
Net assets beginning of period 18,042,428 17,153,182 -- -- 3,151,793
------------- ------------- ------------- ------------- -----------
Net assets end of period $ 10,219,323 $ 9,571,361 $ 497,397 $ 1,081,015 $15,786,402
---------------------------------- ============= ============= ============= ============ ===========
(1) Contract unit transactions
Units Outstanding at
December 31, 2007 1,261,752 1,147,633 -- -- 288,688
Units Issued 243,277 386,183 173,116 357,782 2,713,797
Units Redeemed (237,103) (436,248) (69,434) (99,045) (1,472,549)
------------- ------------- ------------- ------------- -----------
Units Outstanding at
December 31, 2008 1,267,926 1,097,568 103,682 258,737 1,529,936
============= ============= ============= ============= ===========
(a) Commencement of operations March 31, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/ JNL/ JNL/ JNL/
JNL/PIMCO PPM America PPM America PPM America PPM America
Total Return Core Equity High Yield Mid Cap Value Small Cap Value
Bond Portfolio Portfolio Bond Portfolio Portfolio(a) Portfolio(a)
-------------- ------------ -------------- ------------- ---------------
Operations
Net investment income (loss) $ 1,047,119 $ (24,163) $ 1,035,699 $ (605) $ (1,665)
Net realized gain (loss) on investments 1,618,838 (177,554) (1,430,062) (112,299) (82,498)
Net change in unrealized appreciation
(depreciation) on investments (3,422,988) (696,273) (4,537,747) (89,145) (86,274)
-------------- ------------ -------------- ------------- ---------------
Net increase (decrease) in net assets
from operations (757,031) (897,990) (4,932,110) (202,049) (170,437)
-------------- ------------ -------------- ------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 7,025,623 47,123 1,346,238 110,759 127,061
Surrenders and terminations (3,108,564) (325,974) (2,164,625) (25,087) (4,876)
Transfers between portfolios 2,668,074 (177,847) (46,575) 304,801 214,707
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (43,192) (1,719) (22,546) (482) (130)
-------------- ------------ -------------- ------------- ---------------
Net increase (decrease) in net assets from
contract transactions 6,541,941 (458,417) (887,508) 389,991 336,762
-------------- ------------ -------------- ------------- ---------------
Net increase (decrease) in net assets 5,784,910 (1,356,407) (5,819,618) 187,942 166,325
Net assets beginning of period 34,091,669 2,464,921 17,379,196 -- --
-------------- ------------ -------------- ------------- ---------------
Net assets end of period $ 39,876,579 $ 1,108,514 $ 11,559,578 $ 187,942 $ 166,325
-------------------------------------------- ============== ============ ============== ============= ===============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 2,360,679 201,111 1,327,566 -- --
Units Issued 1,441,269 17,254 481,953 60,812 54,296
Units Redeemed (1,020,215) (67,294) (503,884) (27,412) (27,639)
-------------- ------------ -------------- ------------- ---------------
Units Outstanding at December 31, 2008 2,781,733 151,071 1,305,635 33,400 26,657
============== ============ ============== ============= ===============
JNL/ JNL/ JNL/S&P
PPM America Red Rocks Listed Competitive JNL/S&P
Value Equity Private Equity JNL/S&P 4 Advantage Disciplined
Portfolio Portfolio(b) Portfolio Portfolio Growth Portfolio
------------ ---------------- ----------- ----------- ----------------
Operations
Net investment income (loss) $ 27,859 $ 715 $ (86,017) $ (16,699) $ 573
Net realized gain (loss) on investments 224,966 (107) (183,365) (62,684) (13,247)
Net change in unrealized appreciation
(depreciation) on investments (2,265,646) (14,459) (2,353,070) (844,231) (454,553)
------------ ---------------- ----------- ----------- ----------------
Net increase (decrease) in net assets
from operations (2,012,821) (13,851) (2,622,452) (923,614) (467,227)
------------ ---------------- ----------- ----------- ----------------
Contract transactions (1)
Purchase payments (Note 4) 53,845 231,120 7,244,017 362,594 707,816
Surrenders and terminations (569,711) (428) (112,233) (129,847) (20,536)
Transfers between portfolios 120,659 20,946 4,575,768 235,417 81,599
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (3,980) -- (1,077) (1,228) (665)
------------ ---------------- ----------- ----------- ----------------
Net increase (decrease) in net assets from
contract transactions (399,187) 251,638 11,706,475 466,936 768,214
------------ ---------------- ----------- ----------- ----------------
Net increase (decrease) in net assets (2,412,008) 237,787 9,084,023 (456,678) 300,987
Net assets beginning of period 4,475,386 -- 82,535 2,620,327 776,656
------------ ---------------- ----------- ----------- ----------------
Net assets end of period $ 2,063,378 $ 237,787 $ 9,166,558 $ 2,163,649 $ 1,077,643
--------------------------------------------- ============ ================ =========== =========== ================
(1) Contract unit transactions
Units Outstanding at December 31, 2007 358,155 -- 8,321 264,384 74,049
Units Issued 31,988 40,238 1,521,222 73,662 113,786
Units Redeemed (85,151) (74) (155,745) (22,965) (16,130)
------------ ---------------- ----------- ----------- ----------------
Units Outstanding at December 31, 2008 304,992 40,164 1,373,798 315,081 171,705
============ ================ =========== =========== ================
(a) Commencement of operations March 31, 2008.
(b) Commencement of operations October 6, 2008.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/S&P JNL/S&P JNL/S&P
JNL/S&P Disciplined Dividend Income Growth JNL/S&P
Disciplined Moderate & Growth Retirement Intrinsic Value
Moderate Portfolio Growth Portfolio Portfolio Strategy Portfolio Portfolio
------------------ ---------------- --------------- ------------------ ---------------
Operations
Net investment income (loss) $ (6,483) $ (5,741) $ 20,693 $ 4,463 $ 993
Net realized gain (loss) on
investments (80,910) (100,279) (11,449) (51,972) 4,719
Net change in unrealized
appreciation (depreciation)
on investments (515,378) (1,110,338) (184,731) (28,577) (33,233)
------------------ ---------------- --------------- ------------------ ---------------
Net increase (decrease) in net assets
from operations (602,771) (1,216,358) (175,487) (76,086) (27,521)
------------------ ---------------- --------------- ------------------ ---------------
Contract transactions (1)
Purchase payments (Note 4) 1,586,167 2,155,497 1,131,172 25,151 203,637
Surrenders and terminations (88,163) (64,159) (8,893) (217,164) (1,203)
Transfers between portfolios 311,603 307,787 163,370 (172) 39,056
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (73) (395) (25) (13,313) (2)
------------------ ---------------- --------------- ------------------ ---------------
Net increase (decrease) in net
assets from contract transactions 1,809,534 2,398,730 1,285,624 (205,498) 241,488
------------------ ---------------- --------------- ------------------ ---------------
Net increase (decrease) in net assets 1,206,763 1,182,372 1,110,137 (281,584) 213,967
Net assets beginning of period 980,093 1,784,717 123,580 348,394 --
------------------ ---------------- --------------- ------------------ ---------------
Net assets end of period $ 2,186,856 $ 2,967,089 $ 1,233,717 $ 66,810 $ 213,967
-------------------------------------- ================== ================ =============== ================== ===============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 93,356 170,063 12,655 32,626 --
Units Issued 268,731 339,483 168,342 2,414 51,445
Units Redeemed (74,084) (69,174) (7,639) (25,826) (17,219)
------------------ ---------------- --------------- ------------------ ---------------
Units Outstanding at December 31, 2008 288,003 440,372 173,358 9,214 34,226
================== ================ =============== ================== ===============
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio Growth Portfolio Portfolio Growth Portfolio
---------------- ------------ ---------------- ------------ ----------------
Operations
Net investment income (loss) $ (803,766) $ 700,734 $ (1,110,452) $ 985,409 $ 415,757
Net realized gain (loss) on
investments 4,471,534 13,674 3,459,287 241,017 1,434,164
Net change in unrealized
appreciation (depreciation)
on investments (27,868,050) (5,461,486) (40,847,002) (13,299,497) (33,453,549)
---------------- ------------ ---------------- ------------ ----------------
Net increase (decrease) in net assets
from operations (24,200,282) (4,747,078) (38,498,167) (12,073,071) (31,603,628)
---------------- ------------ ---------------- ------------ ----------------
Contract transactions (1)
Purchase payments (Note 4) 8,196,610 6,673,459 11,019,899 13,134,862 14,521,080
Surrenders and terminations (5,270,830) (1,941,704) (8,135,053) (2,652,851) (7,439,735)
Transfers between portfolios (10,447,993) 8,123,845 (8,915,273) 2,748,159 (13,314,047)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (77,344) (22,694) (125,066) (40,347) (87,541)
---------------- ------------ ---------------- ------------ ----------------
Net increase (decrease) in net
assets from contract transactions (7,599,557) 12,832,906 (6,155,493) 13,189,823 (6,320,243)
---------------- ------------ ---------------- ------------ ----------------
Net increase (decrease) in net assets (31,799,839) 8,085,828 (44,653,660) 1,116,752 (37,923,871)
Net assets beginning of period 67,327,185 21,481,421 108,086,353 42,576,985 113,847,752
---------------- ------------ ---------------- ------------ ----------------
Net assets end of period $ 35,527,346 $ 29,567,249 $ 63,432,693 $ 43,693,737 $ 75,923,881
-------------------------------------- ================ ============ ================ ============ ================
(1) Contract unit transactions
Units Outstanding at December 31, 2007 4,383,355 1,848,231 6,945,747 3,435,708 7,641,636
Units Issued 1,689,103 1,880,450 2,497,035 2,434,381 1,841,289
Units Redeemed (2,243,375) (732,361) (3,097,987) (1,322,456) (2,372,219)
---------------- ------------ ---------------- ------------ ----------------
Units Outstanding at December 31, 2008 3,829,083 2,996,320 6,344,795 4,547,633 7,110,706
================ ============ ================ ============ ================
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate JNL/S&P JNL/S&P JNL/S&P
Retirement Retirement Retirement 2015 Retirement 2020 Retirement 2025
Strategy Portfolio Strategy Portfolio Portfolio Portfolio Portfolio
------------------ ------------------ --------------- --------------- ----------------
Operations
Net investment income (loss) $ -- $ -- $ (10,526) $ (5,322) $ (1,534)
Net realized gain (loss) on investments -- -- 12,858 (53,755) 22,377
Net change in unrealized appreciation
(depreciation) on investments -- -- (688,727) (417,775) (261,891)
------------------ ------------------ --------------- --------------- ---------------
Net increase (decrease) in net assets
from operations -- -- (686,395) (476,852) (241,048)
------------------ ------------------ --------------- --------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) -- -- 678,368 290,162 300,059
Surrenders and terminations -- -- (55,984) (23,842) (14,881)
Transfers between portfolios -- -- 480,313 (18,161) (67,997)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) -- -- (277) (121) (761)
------------------ ------------------ --------------- --------------- ---------------
Net increase (decrease) in net assets from
contract transactions -- -- 1,102,420 248,038 216,420
------------------ ------------------ --------------- --------------- ---------------
Net increase (decrease) in net assets -- -- 416,025 (228,814) (24,628)
Net assets beginning of period -- -- 1,527,379 1,179,322 729,960
------------------ ------------------ --------------- --------------- ---------------
Net assets end of period $ -- $ -- $ 1,943,404 $ 950,508 $ 705,332
------------------------------------------ ================== ================== =============== =============== ===============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 -- -- 131,482 100,201 61,266
Units Issued -- -- 156,848 57,029 46,975
Units Redeemed -- -- (45,067) (34,012) (14,790)
------------------ ------------------ --------------- --------------- ---------------
Units Outstanding at December 31, 2008 -- -- 243,263 123,218 93,451
================== ================== =============== =============== ===============
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio Portfolio Portfolio Portfolio Portfolio
-------------- ----------- ------------ ------------ ------------
Operations
Net investment income (loss) $ (14,139) $ 42,165 $ 146,042 $ 102,692 $ (186,324)
Net realized gain (loss) on investments (13,443) (256,554) 244,481 -- (772,729)
Net change in unrealized appreciation
(depreciation) on investments (739,409) (2,272,621) (4,470,538) -- (3,153,348)
-------------- ----------- ------------ ------------ ------------
Net increase (decrease) in net assets
from operations (766,991) (2,487,010) (4,080,015) 102,692 (4,112,401)
-------------- ----------- ------------ ------------ ------------
Contract transactions (1)
Purchase payments (Note 4) 600,520 133,724 3,299,255 15,901,469 1,107,293
Surrenders and terminations (183,666) (127,173) (1,573,205) (11,051,659) (624,752)
Transfers between portfolios (287,571) 7,323,902 187,220 5,770,123 (1,211,112)
Net annuitization transactions -- -- (6,645) -- --
Policyholder charges (Note 3) (1,575) (1,358) (17,452) (162,546) (10,622)
-------------- ----------- ------------ ------------ ------------
Net increase (decrease) in net assets from
contract transactions 127,708 7,329,095 1,889,173 10,457,387 (739,193)
-------------- ----------- ------------ ------------ ------------
Net increase (decrease) in net assets (639,283) 4,842,085 (2,190,842) 10,560,079 (4,851,594)
Net assets beginning of period 3,669,156 -- 17,514,738 23,711,325 13,500,985
-------------- ----------- ------------ ------------ ------------
Net assets end of period $ 3,029,873 $ 4,842,085 $ 15,323,896 $ 34,271,404 $ 8,649,391
------------------------------------------ ============== =========== ============ ============ ============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 330,007 -- 724,309 1,915,623 620,956
Units Issued 137,714 933,945 258,276 4,178,518 282,711
Units Redeemed (129,398) (172,023) (208,682) (3,354,252) (296,757)
-------------- ----------- ------------ ------------ ------------
Units Outstanding at December 31, 2008 338,323 761,922 773,903 2,739,889 606,910
============== =========== ============ ============ ============
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2008
[Enlarge/Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- ------------
Operations
Net investment income (loss) $ (463,102) $ (476,692) $ 61,040
Net realized gain (loss) on investments (741,633) (33,251) 1,552,804
Net change in unrealized appreciation
(depreciation) on investments (15,010,456) (14,397,375) (13,854,548)
----------------- ---------------- ------------
Net increase (decrease) in net assets
from operations (16,215,191) (14,907,318) (12,240,704)
----------------- ---------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 2,568,162 4,006,236 1,672,956
Surrenders and terminations (2,802,321) (2,451,407) (1,919,420)
Transfers between portfolios (42,870) (6,154,114) (1,280,814)
Net annuitization transactions -- -- --
Policyholder charges (Note 3) (25,590) (34,969) (18,630)
----------------- ---------------- ------------
Net increase (decrease) in net assets from
contract transactions (302,619) (4,634,254) (1,545,908)
----------------- ---------------- ------------
Net increase (decrease) in net assets (16,517,810) (19,541,572) (13,786,612)
Net assets beginning of period 37,428,871 39,876,482 31,075,240
----------------- ---------------- ------------
Net assets end of period $ 20,911,061 $ 20,334,910 $ 17,288,628
----------------------------------------- ================= ================ ============
(1) Contract unit transactions
Units Outstanding at December 31, 2007 1,502,610 1,025,330 1,964,634
Units Issued 201,080 236,647 304,326
Units Redeemed (308,393) (394,413) (413,115)
----------------- ---------------- ------------
Units Outstanding at December 31, 2008 1,395,297 867,564 1,855,845
================= ================ ============
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/AIM JNL/AIM JNL/AIM JNL/AIM
International Large Cap Real Estate Small Cap JNL/Alger
Growth Portfolio Growth Portfolio Portfolio Growth Portfolio Growth Portfolio(b)
---------------- ---------------- ----------- ---------------- -------------------
Operations
Net investment income (loss) $ (1,040) $ (93,540) $ 74,963 $ (61,357) $ (20,241)
Net realized gain (loss) on investments 556,631 546,955 335,727 600,013 983,245
Net change in unrealized appreciation
(depreciation) on investments 126,731 367,499 (2,477,369) (187,063) (465,570)
---------------- ---------------- ----------- ---------------- -------------------
Net increase (decrease) in net assets
from operations 682,322 820,914 (2,066,679) 351,593 497,434
---------------- ---------------- ----------- ---------------- -------------------
Contract transactions (1)
Purchase payments (Note 4) 3,817,674 1,017,600 3,695,933 852,070 137,601
Surrenders and terminations (970,294) (449,330) (607,051) (443,484) (369,860)
Transfers between portfolios 2,708,382 (19,506) (1,800,278) (809,563) (6,520,553)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (7,507) (7,931) (12,119) (7,198) (1,954)
---------------- ---------------- ----------- ---------------- -------------------
Net increase (decrease) in net assets from
contract transactions 5,548,255 540,833 1,276,485 (408,175) (6,754,766)
---------------- ---------------- ----------- ---------------- -------------------
Net increase (decrease) in net assets 6,230,577 1,361,747 (790,194) (56,582) (6,257,332)
Net assets beginning of period 8,156,725 6,041,765 7,640,135 3,987,004 6,257,332
---------------- ---------------- ----------- ---------------- -------------------
Net assets end of period $ 14,387,302 $ 7,403,512 $ 6,849,941 $ 3,930,422 $ --
------------------------------------------ ================ ================ =========== ================ ===================
(1) Contract unit transactions
Units Outstanding at December 31, 2006 519,421 496,536 493,717 286,654 482,366
Units Issued 503,437 160,041 799,285 131,238 13,709
Units Redeemed (207,082) (121,196) (763,244) (160,115) (496,075)
---------------- ---------------- ----------- ---------------- -------------------
Units Outstanding at December 31, 2007 815,776 535,381 529,758 257,777 --
================ ================ =========== ================ ===================
JNL/Capital JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse
Guardian Global Guardian Global Guardian Guardian U.S. Global Natural
Balanced Diversified International Small Growth Equity Resources
Portfolio Research Portfolio Cap Portfolio(c) Portfolio Portfolio(a)
--------------- ------------------ ------------------- ------------- ------------------
Operations
Net investment income (loss) $ 90,889 $ (37,883) $ (170) $ (142,433) $ (187,788)
Net realized gain (loss) on
investments 1,205,914 (38,808) (100) 39,791 294,214
Net change in unrealized
appreciation (depreciation)
on investments (710,069) 737,185 (1,250) 670,450 2,042,724
--------------- ------------------ ------------------- ------------- -----------------
Net increase (decrease) in net assets
from operations 586,734 660,494 (1,520) 567,808 2,149,150
--------------- ------------------ ------------------- ------------- -----------------
Contract transactions (1)
Purchase payments (Note 4) 2,178,481 863,343 31,208 1,448,592 3,492,318
Surrenders and terminations (1,188,590) (817,736) -- (929,168) (339,046)
Transfers between portfolios 722,260 1,409,363 125,175 794,859 16,857,013
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (13,512) (3,770) -- (8,854) (2,125)
--------------- ------------------ ------------------- ------------- -----------------
Net increase (decrease) in net assets
from contract transactions 1,698,639 1,451,200 156,383 1,305,429 20,008,160
--------------- ------------------ ------------------- ------------- -----------------
Net increase (decrease) in net assets 2,285,373 2,111,694 154,863 1,873,237 22,157,310
Net assets beginning of period 10,268,216 3,675,647 -- 7,526,107 --
--------------- ------------------ ------------------- ------------- -----------------
Net assets end of period $ 12,553,589 $ 5,787,341 $ 154,863 $ 9,399,344 $ 22,157,310
-------------------------------------- =============== ================== =================== ============= =================
(1) Contract unit transactions
Units Outstanding at December 31, 2006 858,919 273,227 -- 528,082 --
Units Issued 417,730 112,051 17,097 161,245 1,993,268
Units Redeemed (286,580) (86,233) (1,384) (152,708) (370,782)
--------------- ------------------ ------------------- ------------- -----------------
Units Outstanding at December 31, 2007 990,069 299,045 15,713 536,619 1,622,486
=============== ================== =================== ============= =================
(a) Commencement of operations January 16, 2007.
(b) The period is from January 1, 2007 through acquisition April 27, 2007.
(c) Commencement of operations December 3, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/ JNL/Franklin
Credit Suisse JNL/Eagle JNL/Eagle JNL/Franklin Templeton
Long/Short Core Equity SmallCap Equity Templeton Founding Global Growth
Portfolio(a) Portfolio Portfolio Strategy Portfolio Portfolio(a)
------------- ----------- --------------- ------------------ -------------
Operations
Net investment income (loss) $ (6,332) $ 8,090 $ 31,474 $ (267,595) $ (11,683)
Net realized gain (loss) on
investments (751) 772,487 1,583,641 (105,376) (12,355)
Net change in unrealized
appreciation (depreciation)
on investments 3,577 (822,157) (1,018,641) (763,710) (208,297)
------------- ----------- --------------- ------------------ -------------
Net increase (decrease) in net
assets from operations (3,506) (41,580) 596,474 (1,136,681) (232,335)
------------- ----------- --------------- ------------------ -------------
Contract transactions (1)
Purchase payments (Note 4) 225,852 201,731 1,834,403 27,725,063 1,590,011
Surrenders and terminations (4,384) (464,716) (670,899) (504,503) (102,182)
Transfers between portfolios 299,710 (176,484) (305,389) 10,427,772 3,486,082
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (3) (4,637) (8,501) (4,464) (1,788)
------------- ----------- --------------- ------------------ -------------
Net increase (decrease) in net
assets from contract
transactions 521,175 (444,106) 849,614 37,643,868 4,972,123
------------- ----------- --------------- ------------------ -------------
Net increase (decrease) in net
assets 517,669 (485,686) 1,446,088 36,507,187 4,739,788
Net assets beginning of period -- 4,579,914 5,301,358 -- --
------------- ----------- --------------- ------------------ -------------
Net assets end of period $ 517,669 $ 4,094,228 $ 6,747,446 $ 36,507,187 $ 4,739,788
---------------------------------- ============= =========== =============== ================== =============
(1) Contract unit transactions
Units Outstanding at
December 31, 2006 -- 314,335 272,762 -- --
Units Issued 128,746 35,049 200,582 4,214,478 530,075
Units Redeemed (80,238) (63,567) (177,230) (536,849) (50,770)
------------- ----------- --------------- ------------------ -------------
Units Outstanding at
December 31, 2007 48,508 285,817 296,114 3,677,629 479,305
============= =========== =============== ================== =============
JNL/Franklin JNL/ JNL/
JNL/Franklin JNL/Franklin Templeton Goldman Sachs Goldman Sachs
Templeton Templeton Mutual Small Cap Core Plus Mid Cap
Income Portfolio Shares Portfolio Value Portfolio Bond Portfolio Value Portfolio
---------------- ---------------- --------------- -------------- ---------------
Operations
Net investment income (loss) $ 516,772 $ (66,264) $ 27,210 $ 248,430 $ 10,029
Net realized gain (loss) on
investments 142,553 (24,492) 125,401 128,151 330,908
Net change in unrealized
appreciation (depreciation)
on investments (1,212,982) (223,209) (496,777) 310,137 (466,163)
---------------- ---------------- --------------- -------------- ---------------
Net increase (decrease) in net
assets from operations (553,657) (313,965) (344,166) 686,718 (125,226)
---------------- ---------------- --------------- -------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 11,087,254 5,831,097 1,199,833 3,663,106 1,880,846
Surrenders and terminations (1,856,852) (136,580) (176,701) (905,773) (205,245)
Transfers between portfolios 14,183,732 1,782,722 219,400 1,200,804 866,944
Net annuitization transactions -- -- -- (3,423) --
Policyholder charges (Note 3) (35,771) (1,851) (2,094) (8,770) (3,798)
---------------- ---------------- --------------- -------------- ---------------
Net increase (decrease) in net
assets from contract
transactions 23,378,363 7,475,388 1,240,438 3,945,944 2,538,747
---------------- ---------------- --------------- -------------- ---------------
Net increase (decrease) in net
assets 22,824,706 7,161,423 896,272 4,632,662 2,413,521
Net assets beginning of period 5,251,010 -- 1,909,317 10,766,740 1,795,542
---------------- ---------------- --------------- -------------- ---------------
Net assets end of period $ 28,075,716 $ 7,161,423 $ 2,805,589 $ 15,399,402 $ 4,209,063
---------------------------------- ================ ================ =============== ============== ===============
(1) Contract unit transactions
Units Outstanding at
December 31, 2006 484,184 -- 152,350 612,829 140,902
Units Issued 2,816,606 824,199 255,369 437,621 803,638
Units Redeemed (715,136) (98,056) (165,807) (223,606) (617,850)
---------------- ---------------- --------------- -------------- ---------------
Units Outstanding at
December 31, 2007 2,585,654 726,143 241,912 826,844 326,690
================ ================ =============== ============== ===============
(a) Commencement of operations January 16, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio Value Portfolio Portfolio Portfolio Portfolio
-------------- --------------- ------------- --------------- ----------------
Operations
Net investment income (loss) $ 48,850 $ 1,039,630 $ (97,964) $ 170,316 $ (70,190)
Net realized gain (loss) on
investments 42,501 2,974,738 (98,572) 124,547 307,509
Net change in unrealized
appreciation (depreciation)
on investments (14,900) (2,084,497) 482,465 128,705 753,815
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net
assets from operations 76,451 1,929,871 285,929 423,568 991,134
-------------- --------------- ------------- --------------- ----------------
Contract transactions (1)
Purchase payments (Note 4) 1,322,030 7,870,665 523,884 2,233,654 3,722,819
Surrenders and terminations (113,804) (1,581,760) (1,135,239) (1,251,590) (153,757)
Transfers between portfolios 884,128 3,763,777 2,626,848 1,204 4,003,790
Net annuitization transactions -- -- (4,173) (3,243) --
Policyholder charges (Note 3) (582) (20,288) (7,995) (13,681) (2,445)
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net
assets from contract
transactions 2,091,772 10,032,394 2,003,325 966,344 7,570,407
-------------- --------------- ------------- --------------- ----------------
Net increase (decrease) in net
assets 2,168,223 11,962,265 2,289,254 1,389,912 8,561,541
Net assets beginning of period 1,442,817 16,995,366 5,617,423 8,591,021 1,500,895
-------------- --------------- ------------- --------------- ----------------
Net assets end of period $ 3,611,040 $ 28,957,631 $ 7,906,677 $ 9,980,933 $ 10,062,436
---------------------------------- ============== =============== ============= =============== ================
(1) Contract unit transactions
Units Outstanding at
December 31, 2006 141,645 1,056,028 429,093 614,973 138,119
Units Issued 525,829 1,570,687 189,146 510,522 768,133
Units Redeemed (323,103) (951,534) (131,914) (466,400) (190,871)
-------------- --------------- ------------- --------------- ----------------
Units Outstanding at
December 31, 2007 344,371 1,675,181 486,325 659,095 715,381
============== =============== ============= =============== ================
JNL/Lazard JNL/Lazard JNL/MCM JNL/MCM
Mid Cap Small Cap 10 x 10 JNL/MCM Bond Index
Value Portfolio Value Portfolio Portfolio(a) 25 Portfolio Portfolio
--------------- --------------- ------------ ------------- ------------
Operations
Net investment income (loss) $ 461,347 $ 188,482 $ (28,349) $ (101,017) $ 502,318
Net realized gain (loss) on
investments 1,400,204 361,191 261 1,625,009 63,122
Net change in unrealized
appreciation (depreciation)
on investments (2,578,376) (1,252,627) (211,878) (1,681,100) 293,603
--------------- --------------- ------------ ------------- ------------
Net increase (decrease) in net
assets from operations (716,825) (702,954) (239,966) (157,108) 859,043
--------------- --------------- ------------ ------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 2,840,044 1,953,207 4,347,720 2,121,938 4,782,990
Surrenders and terminations (780,426) (650,519) (90,176) (1,364,269) (748,197)
Transfers between portfolios 373,913 (49,210) 2,734,956 (11,621,275) 1,166,415
Net annuitization transactions (17,803) (12,810) -- (7,033) --
Policyholder charges (Note 3) (8,871) (6,526) (1,209) (20,995) (5,852)
--------------- --------------- ------------ ------------- ------------
Net increase (decrease) in net
assets from contract
transactions 2,406,857 1,234,142 6,991,291 (10,891,634) 5,195,356
--------------- --------------- ------------ ------------- ------------
Net increase (decrease) in net
assets 1,690,032 531,188 6,751,325 (11,048,742) 6,054,399
Net assets beginning of period 10,578,188 7,425,534 -- 25,126,485 15,092,128
--------------- --------------- ------------ ------------- ------------
Net assets end of period $ 12,268,220 $ 7,956,722 $ 6,751,325 $ 14,077,743 $ 21,146,527
---------------------------------- =============== =============== ============ ============= ============
(1) Contract unit transactions
Units Outstanding at
December 31, 2006 540,995 448,004 -- 2,053,343 1,354,741
Units Issued 271,938 183,174 751,018 306,165 640,130
Units Redeemed (165,218) (109,619) (62,430) (1,153,676) (180,721)
--------------- --------------- ------------ ------------- ------------
Units Outstanding at
December 31, 2007 647,715 521,559 688,588 1,205,832 1,814,150
=============== =============== ============ ============= ============
(a) Commencement of operations April 30, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Communications Consumer Brands Dow 10 Dow Dividend Dow Dividend
Sector Portfolio Sector Portfolio Portfolio (NY)(b) Portfolio(c) Portfolio (NY)(d)
---------------- ---------------- ----------------- ------------ -----------------
Operations
Net investment income (loss) $ 103,861 $ (8,924) $ (154,646) $ (29,663) $ (340,900)
Net realized gain (loss) on investments 375,495 51,821 6,541,242 (6,057) 726,571
Net change in unrealized appreciation
(depreciation) on investments (477,636) (144,822) (5,092,543) (1,121,685) (1,646,133)
---------------- ---------------- ----------------- ------------ -----------------
Net increase (decrease) in net assets
from operations 1,720 (101,925) 1,294,053 (1,157,405) (1,260,462)
---------------- ---------------- ----------------- ------------ -----------------
Contract transactions (1)
Purchase payments (Note 4) 1,460,018 314,051 1,918,834 485,831 8,849,979
Surrenders and terminations (147,223) (35,039) (426,317) (47,351) (616,144)
Transfers between portfolios 458,873 128,311 (28,661,652) 20,400,745 (22,761,197)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (2,031) (461) (3,761) (96) (7,983)
---------------- ---------------- ----------------- ------------ -----------------
Net increase (decrease) in net assets from
contract transactions 1,769,637 406,862 (27,172,896) 20,839,129 (14,535,345)
---------------- ---------------- ----------------- ------------ -----------------
Net increase (decrease) in net assets 1,771,357 304,937 (25,878,843) 19,681,724 (15,795,807)
Net assets beginning of period 2,349,657 737,434 25,878,843 -- 15,795,807
---------------- ---------------- ----------------- ------------ -----------------
Net assets end of period $ 4,121,014 $ 1,042,371 $ -- $ 19,681,724 $ --
------------------------------------------ ================ ================ ================= ============ =================
(1) Contract unit transactions
Units Outstanding at December 31, 2006 360,046 63,941 1,577,315 -- 1,337,996
Units Issued 743,433 54,299 267,513 1,912,070 1,524,840
Units Redeemed (447,076) (17,757) (1,844,828) (22,494) (2,862,836)
---------------- ---------------- ----------------- ------------ -----------------
Units Outstanding at December 31, 2007 656,403 100,483 -- 1,889,576 --
================ ================ ================= ============ =================
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock Financial Global 15 Healthcare Index 5
Index Portfolio Sector Portfolio Portfolio (NY)(b) Sector Portfolio Portfolio(a)
--------------- ---------------- ----------------- ---------------- ------------
Operations
Net investment income (loss) $ (54,440) $ (3,509) $ (263,259) $ (62,318) $ (17,487)
Net realized gain (loss) on investments 346,868 148,272 13,523,470 332,373 (91,142)
Net change in unrealized appreciation
(depreciation) on investments (355,395) (689,931) (10,582,665) (9,518) (34,697)
--------------- ---------------- ----------------- ---------------- ------------
Net increase (decrease) in net assets
from operations (62,967) (545,168) 2,677,546 260,537 (143,326)
--------------- ---------------- ----------------- ---------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 645,982 1,015,309 3,617,722 1,142,081 2,005,775
Surrenders and terminations (278,950) (116,584) (786,430) (394,865) (27,603)
Transfers between portfolios 447,745 623,262 (43,857,510) 112,666 147,505
Net annuitization transactions (3,855) -- -- (3,383) --
Policyholder charges (Note 3) (3,551) (1,082) (7,362) (8,893) (523)
--------------- ---------------- ----------------- ---------------- ------------
Net increase (decrease) in net assets from
contract transactions 807,371 1,520,905 (41,033,580) 847,606 2,125,154
--------------- ---------------- ----------------- ---------------- ------------
Net increase (decrease) in net assets 744,404 975,737 (38,356,034) 1,108,143 1,981,828
Net assets beginning of period 3,858,463 1,974,473 38,356,034 4,998,651 --
--------------- ---------------- ----------------- ---------------- ------------
Net assets end of period $ 4,602,867 $ 2,950,210 $ -- $ 6,106,794 $ 1,981,828
------------------------------------------ =============== ================ ================= ================ ============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 393,264 138,828 1,676,994 433,427 --
Units Issued 865,781 289,409 467,942 211,359 415,612
Units Redeemed (793,796) (173,609) (2,144,936) (144,773) (215,109)
--------------- ---------------- ----------------- ---------------- ------------
Units Outstanding at December 31, 2007 465,249 254,628 -- 500,013 200,503
=============== ================ ================= ================ ============
(a) Commencement of operations April 30, 2007.
(b) The period is from January 1, 2007 through acquisition April 27, 2007.
(c) Commencement of operations December 3, 2007.
(d) The period is from January 1, 2007 through acquisition November 30, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 15 Nasdaq 25
Index Portfolio Portfolio 5 Portfolio Portfolio (NY)(d) Portfolio(c)
--------------- ------------- ------------- ----------------- ------------
Operations
Net investment income (loss) $ 469,252 $ 1,735,969 $ 177,243 $ (62,289) $ (7,475)
Net realized gain (loss) on investments 1,881,995 8,464,714 853,155 761,232 9,735
Net change in unrealized appreciation
(depreciation) on investments 220,721 (19,241,953) 207,975 (227,679) 155,959
--------------- ------------- ------------- ----------------- ------------
Net increase (decrease) in net assets
from operations 2,571,968 (9,041,270) 1,238,373 471,264 158,219
--------------- ------------- ------------- ----------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 8,161,345 152,512,258 8,809,805 1,036,220 104,840
Surrenders and terminations (2,141,362) (14,722,855) (724,888) (211,223) (28,474)
Transfers between portfolios 3,968,578 79,276,619 9,943,227 (4,074,669) 4,698,081
Net annuitization transactions -- (62,284) -- -- --
Policyholder charges (Note 3) (21,163) (216,026) (15,694) (5,135) (229)
--------------- ------------- ------------- ----------------- ------------
Net increase (decrease) in net assets from
contract transactions 9,967,398 216,787,712 18,012,450 (3,254,807) 4,774,218
--------------- ------------- ------------- ---------------- ------------
Net increase (decrease) in net assets 12,539,366 207,746,442 19,250,823 (2,783,543) 4,932,437
Net assets beginning of period 30,700,158 203,454,376 4,683,959 2,783,543 --
--------------- ------------- ------------- ----------------- ------------
Net assets end of period $ 43,239,524 $ 411,200,818 $ 23,934,782 $ -- $ 4,932,437
------------------------------------------ =============== ============= ============= ================= ============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 1,650,179 14,699,179 437,425 257,486 --
Units Issued 860,263 20,246,565 2,521,840 218,502 424,160
Units Redeemed (363,257) (5,141,200) (955,344) (475,988) (34,059)
--------------- ------------- ------------- ----------------- ------------
Units Outstanding at December 31, 2007 2,147,185 29,804,544 2,003,921 -- 390,101
=============== ============= ============= ================= ============
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
NYSE International Oil & Gas S&P 10 S&P 24 S&P 24
25 Portfolio(a) Sector Portfolio Portfolio (NY)(b) Portfolio(c) Portfolio (NY)(d)
------------------ ---------------- ----------------- ------------ -----------------
Operations
Net investment income (loss) $ 101,482 $ (146,949)$ (159,104)$ (996)$ (18,853)
Net realized gain (loss) on investments 7,347 2,748,480 6,490,923 (18) 164,980
Net change in unrealized appreciation
(depreciation) on investments 89,506 1,877,108 (5,590,565) (9,905) (45,920)
------------------ ---------------- ----------------- ------------ -----------------
Net increase (decrease) in net assets
from operations 198,335 4,478,639 741,254 (10,919) 100,207
------------------ ---------------- ----------------- ------------ -----------------
Contract transactions (1)
Purchase payments (Note 4) 2,231,955 4,863,427 1,265,354 5,640 321,299
Surrenders and terminations (62,279) (1,180,625) (460,441) (2,429) (5,348)
Transfers between portfolios 1,668,281 (2,881,081) (29,259,986) 612,266 (1,820,421)
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (514) (12,014) (5,001) (2) (25)
------------------ ---------------- ----------------- ------------ -----------------
Net increase (decrease) in net assets from
contract transactions 3,837,443 789,707 (28,460,074) 615,475 (1,504,495)
------------------ ---------------- ----------------- ------------ -----------------
Net increase (decrease) in net assets 4,035,778 5,268,346 (27,718,820) 604,556 (1,404,288)
Net assets beginning of period -- 15,508,584 27,718,820 -- 1,404,288
------------------ ---------------- ----------------- ------------ -----------------
Net assets end of period $ 4,035,778 $ 20,776,930 $ -- $ 604,556 $ --
------------------------------------------ ================== ================ ================= ============ =================
(1) Contract unit transactions
Units Outstanding at December 31, 2006 - 588,373 1,543,889 -- 137,456
Units Issued 373,497 475,397 182,146 56,561 37,274
Units Redeemed (23,845) (483,614) (1,726,035) (224) (174,730)
------------------ ---------------- ----------------- ------------ -----------------
Units Outstanding at December 31, 2007 349,652 580,156 -- 56,337 --
================== ================ ================= ============ =================
(a) Commencement of operations April 30, 2007.
(b) The period is from January 1, 2007 through acquisition April 27, 2007.
(c) Commencement of operations December 3, 2007.
(d) The period is from January 1, 2007 through acquisition November 30, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 400 MidCap S&P 500 S&P SMid Select Small-Cap Small Cap
Index Portfolio Index Portfolio 60 Portfolio(a) Portfolio Index Portfolio
--------------- --------------- --------------- ---------------- ---------------
Operations
Net investment income (loss) $ (175,735) $ (173,165) $ 15,509 $ 612,259 $ (105,902)
Net realized gain (loss) on investments 2,950,721 1,382,100 104,778 93,054 1,842,559
Net change in unrealized appreciation
(depreciation) on investments (1,420,733) (156,473) (104,023) (2,227,411) (2,882,911)
--------------- --------------- --------------- ---------------- ---------------
Net increase (decrease) in net assets
from operations 1,354,253 1,052,462 16,264 (1,522,098) (1,146,254)
--------------- --------------- --------------- ---------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 5,502,832 7,147,268 758,070 1,510,062 4,801,639
Surrenders and terminations (1,810,738) (3,015,728) (17,133) (1,144,915) (1,455,111)
Transfers between portfolios (14,031) 822,630 389,109 (10,777,121) 215,843
Net annuitization transactions -- 7,354 -- (3,489) --
Policyholder charges (Note 3) (18,675) (36,340) (112) (15,589) (10,809)
--------------- --------------- --------------- ---------------- ---------------
Net increase (decrease) in net assets from
contract transactions 3,659,388 4,925,184 1,129,934 (10,431,052) 3,551,562
--------------- --------------- --------------- ---------------- ---------------
Net increase (decrease) in net assets 5,013,641 5,977,646 1,146,198 (11,953,150) 2,405,308
Net assets beginning of period 26,354,128 38,038,055 -- 21,688,106 24,401,204
--------------- --------------- --------------- ---------------- ---------------
Net assets end of period $ 31,367,769 $ 44,015,701 $ 1,146,198 $ 9,734,956 $ 26,806,512
------------------------------------------ =============== =============== =============== ================ ===============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 1,734,638 3,117,960 -- 1,068,431 1,561,318
Units Issued 504,168 847,934 724,733 139,810 465,264
Units Redeemed (278,122) (452,003) (594,807) (660,378) (231,395)
--------------- --------------- --------------- ---------------- ---------------
Units Outstanding at December 31, 2007 1,960,684 3,513,891 129,926 547,863 1,795,187
=============== =============== =============== ================ ===============
JNL/
JNL/MCM JNL/MCM JNL/MCM Oppenheimer
Technology Value Line 25 Value Line 30 JNL/MCM Global Growth
Sector Portfolio Portfolio (NY)(c) Portfolio(b) VIP Portfolio Portfolio
---------------- ----------------- ------------- ------------- -------------
Operations
Net investment income (loss) $ (55,271) $ (861,089) $ (101,519) $ 732,994 $ (102,048)
Net realized gain (loss) on investments 230,602 13,691,371 (19,311) 971,281 1,796,258
Net change in unrealized appreciation
(depreciation) on investments 97,515 (5,464,960) (229,066) (1,112,805) (1,140,609)
---------------- ----------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from operations 272,846 7,365,322 (349,896) 591,470 553,601
---------------- ----------------- ------------- ------------- -------------
Contract transactions (1)
Purchase payments (Note 4) 1,049,765 11,158,742 815,510 4,265,443 4,451,359
Surrenders and terminations (164,162) (2,367,264) (295,476) (754,320) (836,471)
Transfers between portfolios 20,853 (71,929,016) 66,177,340 (233,522) (165,250)
Net annuitization transactions -- - -- - (4,615)
Policyholder charges (Note 3) (2,530) (48,647) (6,019) (16,642) (9,690)
---------------- ----------------- ------------- ------------- -------------
Net increase (decrease) in net assets from
contract transactions 903,926 (63,186,185) 66,691,355 3,260,959 3,435,333
---------------- ----------------- ------------- ------------- -------------
Net increase (decrease) in net assets 1,176,772 (55,820,863) 66,341,459 3,852,429 3,988,934
Net assets beginning of period 2,834,058 55,820,863 -- 14,189,999 13,164,248
---------------- ----------------- ------------- ------------- -------------
Net assets end of period $ 4,010,830 $ -- $ 66,341,459 $ 18,042,428 $ 17,153,182
------------------------------------------ ================ ================= ============= ============= =============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 457,152 3,724,081 -- 1,079,057 922,049
Units Issued 372,235 2,404,978 3,841,995 1,677,404 459,649
Units Redeemed (241,978) (6,129,059) (75,126) (1,494,709) (234,065)
---------------- ----------------- ------------- ------------- -------------
Units Outstanding at December 31, 2007 587,409 -- 3,766,869 1,261,752 1,147,633
================ ================= ============= ============= =============
(a) Commencement of operations April 30, 2007.
(b) Commencement of operations December 3, 2007.
(c) The period is from January 1, 2007 through acquisition November 30, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/ JNL/
JNL/ JNL/PIMCO JNL/PIMCO PPM America PPM America
Oppenheimer Real Return Total Return Core Equity High Yield
Growth Portfolio(b) Portfolio(a) Bond Portfolio Portfolio Bond Portfolio
------------------- ------------ -------------- ----------- --------------
Operations
Net investment income (loss) $ 175,653 $ (25,852) $ 961,335 $ (32,154) $ 1,172,064
Net realized gain (loss) on investments 246,700 17,572 (13,132) 49,030 (285,714)
Net change in unrealized appreciation
(depreciation) on investments (244,517) 161,817 974,843 (255,400) (1,757,967)
------------------- ------------ -------------- ----------- --------------
Net increase (decrease) in net assets
from operations 177,836 153,537 1,923,046 (238,524) (871,617)
------------------- ------------ -------------- ----------- --------------
Contract transactions (1)
Purchase payments (Note 4) 163,313 1,672,221 6,726,120 239,856 5,595,296
Surrenders and terminations (51,603) (14,915) (2,067,122) (454,322) (1,636,601)
Transfers between portfolios (2,456,219) 1,341,020 (1,479,627) 125,146 (3,761,854)
Net annuitization transactions -- -- (116,943) -- (6,674)
Policyholder charges (Note 3) (525) (70) (21,800) (1,627) (18,138)
------------------- ------------ -------------- ----------- --------------
Net increase (decrease) in net assets from
contract transactions (2,345,034) 2,998,256 3,040,628 (90,947) 172,029
------------------- ------------ -------------- ----------- --------------
Net increase (decrease) in net assets (2,167,198) 3,151,793 4,963,674 (329,471) (699,588)
Net assets beginning of period 2,167,198 - 29,127,995 2,794,392 18,078,784
------------------- ------------ -------------- ----------- --------------
Net assets end of period $ -- $ 3,151,793 $ 34,091,669 $ 2,464,921 $ 17,379,196
------------------------------------------ =================== ============ ============== =========== ==============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 242,204 -- 2,158,401 230,204 1,378,966
Units Issued 30,534 393,918 994,688 28,960 1,325,360
Units Redeemed (272,738) (105,230) (792,410) (58,053) (1,376,760)
------------------- ------------ -------------- ----------- --------------
Units Outstanding at December 31, 2007 -- 288,688 2,360,679 201,111 1,327,566
=================== ============ ============== =========== ==============
JNL/ JNL/S&P
PPM America JNL/Putnam Competitive JNL/S&P
Value Equity Midcap JNL/S&P 4 Advantage Disciplined
Portfolio Growth Portfolio(d) Portfolio(c) Portfolio(c) Growth Portfolio(a)
------------ ------------------- ------------ ------------ -------------------
Operations
Net investment income (loss) $ (56,070) $ (35,561) $ (80) $ (1,116) $ (8,166)
Net realized gain (loss) on investments 422,069 378,659 (158) (107) 968
Net change in unrealized appreciation
(depreciation) on investments (644,365) (384,940) (769) (49,682) 19,559
------------ ------------------- ------------ ------------ -------------------
Net increase (decrease) in net assets
from operations (278,366) (41,842) (1,007) (50,905) 12,361
------------ ------------------- ------------ ------------ -------------------
Contract transactions (1)
Purchase payments (Note 4) 211,641 218,714 79,430 35,000 631,842
Surrenders and terminations (1,200,577) (241,059) (25) (13,976) (8,463)
Transfers between portfolios (379,149) (2,313,743) 4,137 2,650,208 140,946
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) (5,629) (3,153) -- -- (30)
------------ ------------------- ------------ ------------ -------------------
Net increase (decrease) in net assets from
contract transactions (1,373,714) (2,339,241) 83,542 2,671,232 764,295
------------ ------------------- ------------ ------------ -------------------
Net increase (decrease) in net assets (1,652,080) (2,381,083) 82,535 2,620,327 776,656
Net assets beginning of period 6,127,466 2,381,083 -- -- --
------------ ------------------- ------------ ------------ -------------------
Net assets end of period $ 4,475,386 $ -- $ 82,535 $ 2,620,327 $ 776,656
------------------------------------------ ============ =================== ============ ============ ===================
(1) Contract unit transactions
Units Outstanding at December 31, 2006 465,532 270,543 -- -- --
Units Issued 19,384 36,908 12,758 265,776 75,387
Units Redeemed (126,761) (307,451) (4,437) (1,392) (1,338)
------------ ------------------- ------------ ------------ -------------------
Units Outstanding at December 31, 2007 358,155 -- 8,321 264,384 74,049
============ =================== ============ ============ ===================
(a) Commencement of operations January 16, 2007.
(b) The period is from January 1, 2007 through acquisition April 27, 2007.
(c) Commencement of operations December 3, 2007.
(d) The period is from January 1, 2007 through acquisition November 30, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/ JNL/S&P JNL/S&P JNL/S&P
S&P Disciplined Disciplined Dividend Income Growth JNL/S&P
Moderate Moderate & Growth Retirement Intrinsic Value
Portfolio(a) Growth Portfolio(a) Portfolio(b) Strategy Portfolio(a) Portfolio(b)
--------------- ------------------- --------------- --------------------- ---------------
Operations
Net investment income (loss) $ (4,413) $ (10,838) $ 13 $ 7,137 $ --
Net realized gain (loss) on
investments 1,094 2,933 -- (7) --
Net change in unrealized
appreciation (depreciation) on
investments 6,804 7,859 (689) (11,824) --
--------------- ------------------- --------------- --------------------- ---------------
Net increase (decrease) in net
assets from operations 3,485 (46) (676) (4,694) --
--------------- ------------------- --------------- --------------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) 949,223 1,675,313 115,415 353,144 --
Surrenders and terminations (6,320) (31,520) -- (55) --
Transfers between portfolios 33,705 142,164 8,841 (1) --
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) -- (1,194) -- -- --
--------------- ------------------- --------------- --------------------- ---------------
Net increase (decrease) in net
assets from contract transactions 976,608 1,784,763 124,256 353,088 --
--------------- ------------------- --------------- --------------------- ---------------
Net increase (decrease) in net assets 980,093 1,784,717 123,580 348,394 --
Net assets beginning of period -- -- -- -- --
--------------- ------------------- --------------- --------------------- ---------------
Net assets end of period $ 980,093 $ 1,784,717 $ 123,580 $ 348,394 $ --
------------------------------------- =============== =================== =============== ===================== ===============
(1) Contract unit transactions
Units Outstanding at December 31,
2006 -- -- -- -- --
Units Issued 98,130 181,129 12,655 32,631 --
Units Redeemed (4,774) (11,066) -- (5) --
--------------- ------------------- --------------- --------------------- ---------------
Units Outstanding at December 31,
2007 93,356 170,063 12,655 32,626 --
=============== =================== =============== ===================== ===============
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio Growth Portfolio Portfolio Growth Portfolio
---------------- ------------ ---------------- ----------- ----------------
Operations
Net investment income (loss) $ (40,204) $ 255,673 $ (61,904) $ 421,570 $ 403,251
Net realized gain (loss) on investments 3,211,995 628,939 8,060,214 1,475,141 8,066,027
Net change in unrealized appreciation
(depreciation) on investments 1,412,314 (274,706) (1,560,997) (55,073) (1,908,989)
---------------- ------------ ---------------- ----------- ----------------
Net increase (decrease) in net assets
from operations 4,584,105 609,906 6,437,313 1,841,638 6,560,289
---------------- ------------ ---------------- ----------- ----------------
Contract transactions (1)
Purchase payments (Note 4) 8,747,061 6,642,150 17,644,703 12,600,038 22,326,622
Surrenders and terminations (7,516,330) (1,228,142) (5,575,746) (1,628,326) (6,311,737)
Transfers between portfolios (4,421,284) 5,643,771 (4,235,352) 2,003,824 (1,229,767)
Net annuitization transactions -- -- -- -- (125,340)
Policyholder charges (Note 3) (93,187) (11,479) (79,552) (19,027) (66,973)
---------------- ------------ ---------------- ----------- ----------------
Net increase (decrease) in net assets from
contract transactions (3,283,740) 11,046,300 7,754,053 12,956,509 14,592,805
---------------- ------------ ---------------- ----------- ----------------
Net increase (decrease) in net assets 1,300,365 11,656,206 14,191,366 14,798,147 21,153,094
Net assets beginning of period 66,026,820 9,825,215 93,894,987 27,778,838 92,694,658
---------------- ------------ ---------------- ----------- ----------------
Net assets end of period $ 67,327,185 $ 21,481,421 $ 108,086,353 $42,576,985 $ 113,847,752
-------------------------------------------- ================ ============ ================ ============ ================
(1) Contract unit transactions
Units Outstanding at December 31, 2006 4,648,674 883,912 6,481,110 2,374,606 6,674,551
Units Issued 728,010 1,302,854 1,480,131 1,500,255 2,041,168
Units Redeemed (993,329) (338,535) (1,015,494) (439,153) (1,074,083)
---------------- ------------ ---------------- ----------- ----------------
Units Outstanding at December 31, 2007 4,383,355 1,848,231 6,945,747 3,435,708 7,641,636
================ ============ ================ =========== ================
(a) Commencement of operations January 16, 2007.
(b) Commencement of operations December 3, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate JNL/S&P JNL/S&P JNL/S&P
Retirement Retirement Strategy Retirement 2015 Retirement 2020 Retirement 2025
Strategy Portfolio(a) Portfolio(a) Portfolio Portfolio Portfolio
--------------------- ------------------- --------------- --------------- ---------------
Operations
Net investment income (loss) $ -- $ -- $ (9,869) $ (9,796) $ (5,098)
Net realized gain (loss)
on investments -- -- 8,397 6,333 10,366
Net change in unrealized
appreciation (depreciation)
on investments -- -- 55,874 42,967 16,578
--------------------- ------------------- --------------- --------------- ---------------
Net increase (decrease) in net
assets from operations -- -- 54,402 39,504 21,846
--------------------- ------------------- --------------- --------------- ---------------
Contract transactions (1)
Purchase payments (Note 4) -- -- 857,761 848,780 537,330
Surrenders and terminations -- -- (22,418) (13,001) (32,671)
Transfers between portfolios -- -- 303,585 52,009 121,616
Net annuitization transactions -- -- -- -- --
Policyholder charges (Note 3) -- -- (52) (31) (25)
--------------------- ------------------- --------------- --------------- ---------------
Net increase (decrease) in net
assets from contract transactions -- -- 1,138,876 887,757 626,250
--------------------- ------------------- --------------- --------------- ---------------
Net increase (decrease) in net
assets -- -- 1,193,278 927,261 648,096
Net assets beginning of period -- -- 334,101 252,061 81,864
--------------------- ------------------- --------------- --------------- ---------------
Net assets end of period $ -- $ -- $ 1,527,379 $ 1,179,322 $ 729,960
------------------------------------ ===================== =================== =============== =============== ===============
(1) Contract unit transactions
Units Outstanding at December 31,
2006 -- -- 30,889 23,034 7,429
Units Issued -- -- 102,709 78,347 63,644
Units Redeemed -- -- (2,116) (1,180) (9,807)
--------------------- ------------------- --------------- --------------- ---------------
Units Outstanding at December 31,
2007 -- -- 131,482 100,201 61,266
===================== =================== =============== =============== ===============
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio Portfolio(b) Portfolio Portfolio Portfolio
-------------- ------------ ------------ ------------ ------------
Operations
Net investment income (loss) $ (16,171) $ -- $ 130,660 $ 526,322 $ 241,124
Net realized gain (loss) on investments 24,018 -- 1,206,925 1 1,016,274
Net change in unrealized appreciation
(depreciation) on investments 109,642 -- (627,440) (1) (801,661)
-------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations 117,489 -- 710,145 526,322 455,737
-------------- ------------ ------------ ------------ ------------
Contract transactions (1)
Purchase payments (Note 4) 1,258,326 -- 3,517,289 16,986,341 3,111,348
Surrenders and terminations (173,895) -- (1,661,149) (7,714,939) (586,362)
Transfers between portfolios 908,733 -- 1,792,876 (1,504,206) 2,894,547
Net annuitization transactions -- -- 17,635 -- --
Policyholder charges (Note 3) (1,468) -- (14,105) (95,076) (5,427)
-------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
contract transactions 1,991,696 -- 3,652,546 7,672,120 5,414,106
-------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets 2,109,185 -- 4,362,691 8,198,442 5,869,843
Net assets beginning of period 1,559,971 -- 13,152,047 15,512,883 7,631,142
-------------- ------------ ------------ ------------ ------------
Net assets end of period $ 3,669,156 $ -- $ 17,514,738 $ 23,711,325 $ 13,500,985
---------------------------------------------- ============== ============ ============ ============ ============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 147,407 -- 613,977 1,308,667 371,624
Units Issued 206,916 -- 413,860 4,068,390 415,055
Units Redeemed (24,316) -- (303,528) (3,461,434) (165,723)
-------------- ------------ ------------ ------------ ------------
Units Outstanding at December 31, 2007 330,007 -- 724,309 1,915,623 620,956
============== ============ ============ ============ ============
(a) Commencement of operations January 16, 2007.
(b) Commencement of operations December 3, 2007.
See notes to the financial statements.
JNLNY Separate Account I
Statements of Changes in Net Assets
For the Year Ended December 31, 2007
[Enlarge/Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- ------------
Operations
Net investment income (loss) $ (196,344) $ 23,383 $ 166,546
Net realized gain (loss) on investments 3,143,205 4,806,105 2,452,871
Net change in unrealized appreciation
(depreciation) on investments (636,523) (684,359) (3,073,565)
----------------- ---------------- ------------
Net increase (decrease) in net assets
from operations 2,310,338 4,145,129 (454,148)
----------------- ---------------- ------------
Contract transactions (1)
Purchase payments (Note 4) 4,769,671 4,221,983 4,715,691
Surrenders and terminations (2,476,325) (2,371,234) (1,763,396)
Transfers between portfolios 8,202,732 6,055,100 (61,815)
Net annuitization transactions (3,608) -- (4,067)
Policyholder charges (Note 3) (19,065) (21,510) (17,190)
----------------- ---------------- ------------
Net increase (decrease) in net assets from
contract transactions 10,473,405 7,884,339 2,869,223
----------------- ---------------- ------------
Net increase (decrease) in net assets 12,783,743 12,029,468 2,415,075
Net assets beginning of period 24,645,128 27,847,014 28,660,165
----------------- ---------------- ------------
Net assets end of period $ 37,428,871 $ 39,876,482 $ 31,075,240
---------------------------------------------- ================= ================ ============
(1) Contract unit transactions
Units Outstanding at December 31, 2006 1,059,778 893,001 1,803,994
Units Issued 720,680 399,622 533,940
Units Redeemed (277,848) (267,293) (373,300)
----------------- ---------------- ------------
Units Outstanding at December 31, 2007 1,502,610 1,025,330 1,964,634
================= ================ ============
See notes to the financial statements.
JNLNY Separate Account I
Notes to the Financial Statements
Note 1 - Organization
---------------------
Jackson National Life Insurance Company of New York ("Jackson") established
JNLNY Separate Account I (the "Separate Account") on September 12, 1997. The
Separate Account commenced operations on November 27, 1998, and is registered
under the Investment Company Act of 1940 as a unit investment trust.
The Separate Account assets legally belong to Jackson and the obligations under
the contracts are the obligation of Jackson. However, the contract assets in the
Separate Account are not chargeable with liabilities arising out of any other
business Jackson may conduct.
The Separate Account receives and invests, based on the directions of the
contract holder, net premiums for individual flexible premium variable annuity
contracts issued by Jackson. The contracts can be purchased on a non-tax
qualified basis or in connection with certain plans qualifying for favorable
federal income tax treatment. The Separate Account contains ninety-three (93)
Portfolios as of December 31, 2008, each of which invests in the following
mutual funds ("Funds"):
--------------------------------------------------------------------------------
JNL Series Trust
--------------------------------------------------------------------------------
JNL/AIM Global Real Estate Fund
JNL/AIM International Growth Fund
JNL/AIM Large Cap Growth Fund
JNL/AIM Small Cap Growth Fund
JNL/Capital Guardian Global Balanced Fund
JNL/Capital Guardian Global Diversified Research Fund
JNL/Capital Guardian International Small Cap Fund
JNL/Capital Guardian U.S. Growth Equity Fund
JNL/Credit Suisse Global Natural Resources Fund
JNL/Credit Suisse Long/Short Fund
JNL/Eagle Core Equity Fund
JNL/Eagle SmallCap Equity Fund
JNL/Franklin Templeton Founding Strategy Fund
JNL/Franklin Templeton Global Growth Fund
JNL/Franklin Templeton Income Fund
JNL/Franklin Templeton Mutual Shares Fund
JNL/Franklin Templeton Small Cap Value Fund
JNL/Goldman Sachs Core Plus Bond Fund
JNL/Goldman Sachs Emerging Markets Debt Fund
JNL/Goldman Sachs Mid Cap Value Fund
JNL/Goldman Sachs Short Duration Bond Fund
JNL/JPMorgan International Value Fund
JNL/JPMorgan MidCap Growth Fund
JNL/JPMorgan U.S. Government & Quality Bond Fund
JNL/Lazard Emerging Markets Fund
JNL/Lazard Mid Cap Equity Fund
JNL/Lazard Small Cap Equity Fund
JNL/M&G Global Basics Fund
JNL/M&G Global Leaders Fund
JNL/MCM 10 x 10 Fund*
JNL/MCM Bond Index Fund *
JNL/MCM Enhanced S&P 500 Stock Index Fund*
JNL/MCM European 30 Fund*
JNL/MCM Index 5 Fund*
JNL/MCM International Index Fund*
JNL/MCM Pacific Rim 30 Fund*
JNL/MCM S&P 400 MidCap Index Fund*
JNL/MCM S&P 500 Index Fund*
JNL/MCM Small Cap Index Fund*
JNL/Oppenheimer Global Growth Fund
JNL/PAM Asia ex-Japan Fund
JNL/PAM China-India Fund
JNL/PIMCO Real Return Fund
JNL/PIMCO Total Return Bond Fund
JNL/PPM America Core Equity Fund
JNL/PPM America High Yield Bond Fund
JNL/PPM America Mid Cap Value Fund
JNL/PPM America Small Cap Value Fund
JNL/PPM America Value Equity Fund
JNL/Red Rocks Listed Private Equity Fund
JNL/S&P 4 Fund
JNL/S&P Competitive Advantage Fund
JNL/S&P Disciplined Growth Fund
JNL/S&P Disciplined Moderate Fund
JNL/S&P Disciplined Moderate Growth Fund
JNL/S&P Dividend Income & Growth Fund
JNL/S&P Growth Retirement Strategy Fund
JNL/S&P Intrinsic Value Fund
JNL/S&P Managed Aggressive Growth Fund
JNL/S&P Managed Conservative Fund
JNL/S&P Managed Growth Fund
JNL/S&P Managed Moderate Fund
JNL/S&P Managed Moderate Growth Fund
JNL/S&P Moderate Growth Retirement Strategy Fund
JNL/S&P Moderate Retirement Strategy Fund
JNL/S&P Retirement 2015 Fund
JNL/S&P Retirement 2020 Fund
JNL/S&P Retirement 2025 Fund
JNL/S&P Retirement Income Fund
JNL/S&P Total Yield Fund
JNL/Select Balanced 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
JNLNY Separate Account I
Notes to the Financial Statements (continued)
Note 1 - Organization (continued)
---------------------------------
--------------------------------------------------------------------------------
JNL Variable Fund LLC
--------------------------------------------------------------------------------
JNL/MCM 25 Fund*
JNL/MCM Communications Sector Fund*
JNL/MCM Consumer Brands Sector Fund*
JNL/MCM Dow SM Dividend Fund*
JNL/MCM Financial Sector Fund*
JNL/MCM Healthcare Sector Fund*
JNL/MCM JNL 5 Fund*
JNL/MCM JNL Optimized 5 Fund*
JNL/MCM Nasdaq(R) 25 Fund*
JNL/MCM NYSE(R) International 25 Fund*
JNL/MCM Oil & Gas Sector Fund*
JNL/MCM S&P(R) 24 Fund*
JNL/MCM S&P(R) SMid 60 Fund*
JNL/MCM Select Small-Cap Fund*
JNL/MCM Technology Sector Fund*
JNL/MCM Value Line(R) 30 Fund*
JNL/MCM VIP Fund*
Jackson National Asset Management, LLC, a wholly-owned subsidiary of Jackson,
serves as investment adviser for all the Funds and receives a fee for its
services from each of the Funds.
During the year ended December 31, 2008, the following Funds changed names:
[Enlarge/Download Table]
---------------------------------------------------------------------------------------
PRIOR PORTFOLIO NAME CURRENT PORTFOLIO NAME EFFECTIVE DATE
---------------------------------------------------------------------------------------
JNL/Lazard Mid Cap Value Fund JNL/Lazard Mid Cap Equity Fund March 31, 2008
---------------------------------------------------------------------------------------
JNL/Lazard Small Cap Value Fund JNL/Lazard Small Cap Equity Fund March 31, 2008
---------------------------------------------------------------------------------------
JNL/AIM Real Estate Fund JNL/AIM Global Real Estate Fund October 6, 2008
---------------------------------------------------------------------------------------
* MCM denotes the sub adviser Mellon Capital Management throughout these
financial statements.
Note 2 - Significant Accounting Policies
----------------------------------------
The following is a summary of significant accounting policies followed by the
Separate Account in the preparation of its financial statements.
Use of Estimates
----------------
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Investments
-----------
The Separate Account's investments in the corresponding series of mutual
funds ("Funds") are stated at the closing net asset values of the
respective Funds. The average cost method is used in determining the cost
of the shares sold on withdrawals by the Separate Account. Investments in
the Funds are recorded on trade date. Realized gain distributions and
dividend distributions received from the Funds are reinvested in
additional shares of the Funds and are recorded as income or gain to the
Separate Account on the ex-dividend date.
JNLNY Separate Account I
Notes to the Financial Statements (continued)
Note 2 - Significant Accounting Policies (continued)
----------------------------------------------------
Federal Income Taxes
--------------------
The operations of the Separate Account are included in the federal income
tax return of Jackson, which is taxed as a "life insurance company" under
the provisions of the Internal Revenue Code. Under current law, no federal
income taxes are payable with respect to the Separate Account. Therefore,
no federal income tax has been provided.
Statement on Financial Accounting Standards ("SFAS") No. 157, "Fair Value
Measurements"
--------------------------------------------------------------------------------
This standard establishes a single authoritative definition of fair value,
sets out a framework for measuring fair value and requires additional
disclosures about fair value measurements. The changes to current GAAP
from the application of this statement relate to the definition of fair
value, the methods used to measure fair value, and expanded disclosures
about fair value measurements.
Various inputs are used in determining the value of a Funds' investments
under SFAS No. 157 guidance. The inputs are summarized into three broad
categories. Level 1 includes valuations based on quoted prices of
identical securities in active markets. Level 2 includes valuations for
which all significant inputs are observable, either directly or
indirectly. Direct observable inputs include closing prices of similar
securities in active markets or closing prices for identical or similar
securities in non-active markets. Indirect observable inputs include
factors such as interest rates, yield curves, prepayment speeds, and
credit risks. Level 3 includes valuations based on inputs that are
unobservable and significant to the fair value measurement including a
Funds' own assumptions in determining the fair value of the investment.
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
As of December 31, 2008, all of the Separate Account's investments are in
funds for which quoted prices are available in an active market.
Therefore, all investments have been categorized as Level 1. The
characterization of the underlying securities held by the funds in
accordance with SFAS No. 157 differs from the characterization of an
investment in the fund.
Note 3 - Policy Charges
-----------------------
Charges are deducted from the Separate Account and remitted to Jackson, to
compensate Jackson for providing the insurance benefits set forth in the
contracts, administering the contracts, distributing the contracts, and assuming
certain risks in connection with the contracts.
Policyholder Charges
--------------------
Contract Maintenance Charge
---------------------------
An annual contract maintenance charge of $30 - $35 is assessed against
each contract to reimburse Jackson for expenses incurred in establishing
and maintaining records relating to the contract. The contract maintenance
charge is assessed on each anniversary of the contract date that occurs
prior to the annuity date. This charge is only imposed if the contract
value is less than $50,000 on the date when the charge is assessed. The
charge is deducted by redeeming units. For the years ended December 31,
2008 and 2007, contract maintenance charges were assessed in the amount of
$259,376 and $176,750, respectively.
Transfer Fee Charge
-------------------
A transfer fee of $25 will apply to transfers made by contract holders
between the portfolios in excess of 15 transfers in a contract year.
Jackson may waive the transfer fee in connection with pre-authorized
automatic transfer programs. This fee will be deducted from the amount
transferred prior to the allocation to a different portfolio. For the
years ended December 31, 2008 and 2007, transfer fee charges were assessed
in the amount of $575 and $1,625, respectively.
JNLNY Separate Account I
Notes to the Financial Statements (continued)
Note 3 - Policy Charges (continued)
-----------------------------------
Surrender or Contingent Deferred Sales Charge
---------------------------------------------
During the first seven contract years, certain contracts include a
provision for a charge upon the surrender or partial surrender of the
contract. The amount assessed under the contract terms, if any, depends
upon the cost associated with distributing the particular contracts. The
amount, if any, is determined based on a number of factors, including the
amount withdrawn, the contract year of surrender, or the number and amount
of withdrawals in a calendar year. The surrender charges are assessed by
Jackson and withheld from the proceeds of the withdrawals. For the years
ended December 31, 2008 and 2007, surrender charges were assessed in the
amount of $1,519,846 and $1,019,652, respectively.
Optional Benefit Charges
------------------------
Guaranteed Minimum Income Benefit Charge. If this benefit has been
selected, Jackson will assess an annual charge of 0.30% - 0.90%, depending
on the product, of the Guaranteed Minimum Income Benefit (GMIB) base. The
charge will be deducted each calendar quarter from the contract value by
redeeming units.
Guaranteed Minimum Withdrawal Benefit Charge. If this benefit has been
selected, Jackson will assess an annual charge of 0.51% - 1.86%, depending
on the product. Jackson reserves the right to prospectively increase the
charge on new issues or upon any election of any "step-up" subject to a
maximum charge of 0.81%. The charge will be deducted each calendar quarter
from the contract value by redeeming units.
Asset-based Charges
-------------------
Insurance Charges
-----------------
Jackson deducts a daily charge for administrative expenses from the net
assets of the Separate Account equivalent to an annual rate of 0.15%. In
designated products, this expense is waived for initial contributions
greater than $1 million, refer to the product prospectus for eligibility.
The administration charge is designed to reimburse Jackson for expenses
incurred in administrating the Separate Account and its contracts and is
assessed through the unit value calculation.
Jackson deducts a daily base contract charge from the net assets of the
Separate Account equivalent to an annual rate of 0.15% to 1.50% for the
assumption of mortality and expense risks. The mortality risk assumed by
Jackson is that the insured may receive benefits greater than those
anticipated by Jackson. The expense risk assumed by Jackson is that the
costs of administering the contracts of the Separate Account will exceed
the amount received from the Administration Charge and the Contract
Maintenance Charge.
Optional Benefit Charges
------------------------
Contract Enhancement Charge. If one of the contract enhancement benefits
has been selected, then for a period of three to seven contract years,
Jackson will make an additional deduction based upon the average daily net
asset value of the contract owner's allocations to the portfolios. The
amounts of these charges depend upon the contract enhancements selected
and range from 0.395% to 0.65%.
Withdrawal Charge Period. If the optional three or five-year withdrawal
charge period feature is selected, Jackson will deduct 0.45% or 0.30%,
respectively, on an annual basis of the average daily net asset value of
the contract owner's allocations to the portfolios.
20% Additional Free Withdrawal Charge. If a contract owner selects the
optional feature that permits you to withdraw up to 20% of premiums that
are still subject to a withdrawal charge minus earnings during a Contract
year without withdrawal charge, Jackson will deduct 0.30% on an annual
basis of the average daily net assets value of the contract owner's
allocations to the portfolios.
JNLNY Separate Account I
Notes to the Financial Statements (continued)
Note 3 - Policy Charges (continued)
-----------------------------------
Optional Death Benefit Charges. If any of the optional death benefits are
selected that are available under the Contract, Jackson will make an
additional deduction of 0.15% - 0.60% on an annual basis of the average
daily net asset value of the contract owner's allocations to the
portfolios, based on the optional death benefit selected.
Premium Taxes
-------------
Some states and other governmental entities charge premium taxes or other
similar taxes. Jackson is responsible for the payment of these taxes and
may make a deduction from the value of the contract for them. Premium
taxes will not exceed 2.0%. Currently, New York does not impose premium
taxes.
Note 4 - Related Party Transactions
-----------------------------------
For contract enhancement benefits related to the optional benefits
offered, Jackson contributed $1,967,258 and $3,802,593 to the Separate
Account in the form of additional premium to contract owner's accounts for
the years ended December 31, 2008 and 2007, respectively. These amounts
are included in purchase payments received from contract owners.
JNLNY Separate Account I
Notes to the Financial Statements (continued)
Note 5 - Purchases and Sales of Investments
-------------------------------------------
For the year ended December 31, 2008, purchases and proceeds from sales of
investments are as follows:
--------------------------------------------------------------------------------
JNL Series Trust
--------------------------------------------------------------------------------
[Download Table]
Proceeds
Purchases from Sales
------------- -------------
JNL/AIM Global Real Estate Fund $ 5,135,500 $ 3,473,298
JNL/AIM International Growth Fund 9,779,720 5,718,256
JNL/AIM Large Cap Growth Fund 4,641,158 2,930,880
JNL/AIM Small Cap Growth Fund 1,601,829 1,321,519
JNL/Capital Guardian Global Balanced Fund 7,325,103 5,201,128
JNL/Capital Guardian Global Diversified Research Fund 5,393,044 3,158,156
JNL/Capital Guardian International Small Cap Fund 1,283,391 275,383
JNL/Capital Guardian U.S. Growth Equity Fund 4,803,509 3,412,755
JNL/Credit Suisse Global Natural Resources Fund 38,977,987 27,437,514
JNL/Credit Suisse Long/Short Fund 2,692,687 730,813
JNL/Eagle Core Equity Fund 2,148,351 1,685,804
JNL/Eagle SmallCap Equity Fund 2,980,360 2,573,530
JNL/Franklin Templeton Founding Strategy Fund 19,572,991 14,013,030
JNL/Franklin Templeton Global Growth Fund 2,907,432 2,536,851
JNL/Franklin Templeton Income Fund 34,132,828 28,981,709
JNL/Franklin Templeton Mutual Shares Fund 3,775,863 2,147,681
JNL/Franklin Templeton Small Cap Value Fund 2,054,046 1,247,921
JNL/Goldman Sachs Core Plus Bond Fund 6,561,515 5,682,667
JNL/Goldman Sachs Emerging Markets Debt Fund 87,805 133
JNL/Goldman Sachs Mid Cap Value Fund 2,286,823 1,811,749
JNL/Goldman Sachs Short Duration Bond Fund 2,660,009 1,842,803
JNL/JPMorgan International Value Fund 12,642,426 11,016,291
JNL/JPMorgan MidCap Growth Fund 2,637,514 3,394,033
JNL/JPMorgan U.S. Government & Quality Bond Fund 11,789,492 7,719,043
JNL/Lazard Emerging Markets Fund 11,909,193 5,627,936
JNL/Lazard Mid Cap Equity Fund 2,795,623 3,323,141
JNL/Lazard Small Cap Equity Fund 2,353,167 2,780,996
JNL/M&G Global Basics Fund 20,425 63
JNL/M&G Global Leaders Fund 78,951 48,485
JNL/MCM 10 x 10 Fund 11,880,648 1,862,175
JNL/MCM Bond Index Fund 5,454,206 6,746,359
JNL/MCM Enhanced S&P 500 Stock Index Fund 6,318,581 4,363,804
JNL/MCM European 30 Fund 22,557 62
JNL/MCM Index 5 Fund 3,752,982 336,211
JNL/MCM International Index Fund 26,862,109 25,739,359
Proceeds
Purchases from Sales
------------- -------------
JNL/MCM Pacific Rim 30 Fund $ 23,484 $ 110
JNL/MCM S&P 400 MidCap Index Fund 10,580,708 8,606,594
JNL/MCM S&P 500 Index Fund 9,772,488 12,000,027
JNL/MCM Small Cap Index Fund 12,644,821 8,692,475
JNL/Oppenheimer Global Growth Fund 7,854,222 6,683,623
JNL/PAM Asia ex-Japan Fund 1,425,277 518,167
JNL/PAM China-India Fund 2,508,406 704,667
JNL/PIMCO Real Return Fund 33,515,716 18,116,160
JNL/PIMCO Total Return Bond Fund 29,544,029 20,386,893
JNL/PPM America Core Equity Fund 284,135 766,715
JNL/PPM America High Yield Bond Fund 7,539,099 7,390,907
JNL/PPM America Mid Cap Value Fund 556,685 167,299
JNL/PPM America Small Cap Value Fund 540,553 205,457
JNL/PPM America Value Equity Fund 1,474,959 1,433,603
JNL/Red Rocks Listed Private Equity Fund 253,161 808
JNL/S&P 4 Fund 13,143,220 1,522,762
JNL/S&P Competitive Advantage Fund 1,198,229 747,992
JNL/S&P Disciplined Growth Fund 933,711 155,467
JNL/S&P Disciplined Moderate Fund 2,496,868 682,707
JNL/S&P Disciplined Moderate Growth Fund 3,087,119 670,907
JNL/S&P Dividend Income & Growth Fund 1,395,908 88,972
JNL/S&P Growth Retirement Strategy Fund 31,880 232,864
JNL/S&P Intrinsic Value Fund 417,001 172,821
JNL/S&P Managed Aggressive Growth Fund 30,295,914 36,288,670
JNL/S&P Managed Conservative Fund 24,215,057 10,237,978
JNL/S&P Managed Growth Fund 49,620,808 50,284,599
JNL/S&P Managed Moderate Fund 33,440,058 18,182,099
JNL/S&P Managed Moderate Growth Fund 35,448,434 37,334,485
JNL/S&P Moderate Growth Retirement Strategy Fund -- --
JNL/S&P Moderate Retirement Strategy Fund -- --
JNL/S&P Retirement 2015 Fund 1,634,038 496,460
JNL/S&P Retirement 2020 Fund 583,258 296,456
JNL/S&P Retirement 2025 Fund 421,783 175,592
JNL/S&P Retirement Income Fund 1,551,532 1,390,603
JNL/S&P Total Yield Fund 8,811,772 1,439,313
JNLNY Separate Account I
Notes to the Financial Statements (continued)
Note 5 - Purchases and Sales of Investments (continued)
-------------------------------------------------------
--------------------------------------------------------------------------------
JNL Series Trust
--------------------------------------------------------------------------------
[Download Table]
Proceeds
Purchases from Sales
------------- -------------
JNL/Select Balanced Fund $ 8,825,795 $ 6,062,137
JNL/Select Money Market Fund 67,228,988 56,666,059
JNL/Select Value Fund 5,401,931 6,172,970
Proceeds
Purchases from Sales
------------- -------------
JNL/T.Rowe Price Established Growth Fund $ 7,183,197 $ 7,724,412
JNL/T.Rowe Price Mid-Cap Growth Fund 12,077,734 15,159,474
JNL/T.Rowe Price Value Fund 8,748,952 7,389,159
--------------------------------------------------------------------------------
JNL Variable Fund LLC
--------------------------------------------------------------------------------
[Download Table]
Proceeds
Purchases from Sales
------------- -------------
JNL/MCM 25 Fund $ 11,924,035 $ 5,490,865
JNL/MCM Communications Sector Fun 2,169,311 3,723,631
JNL/MCM Consumer Brands Sector Fund 1,135,718 494,822
JNL/MCM Dow SM Dividend Fund 21,363,825 21,311,805
JNL/MCM Financial Sector Fund 4,724,644 1,858,522
JNL/MCM Healthcare Sector Fund 10,423,683 4,678,149
JNL/MCM JNL 5 Fund 125,497,120 100,890,800
JNL/MCM JNL Optimized 5 Fund 28,816,972 21,213,624
JNL/MCM Nasdaq(R) 25 Fund 2,334,806 2,294,476
Proceeds
Purchases from Sales
------------- -------------
JNL/MCM NYSE(R) International 25 Fund $ 4,337,989 $ 2,810,944
JNL/MCM Oil & Gas Sector Fund 14,420,929 11,761,746
JNL/MCM S&P(R) 24 Fund 8,742,914 850,787
JNL/MCM S&P(R) SMid 60 Fund 6,114,013 1,587,131
JNL/MCM Select Small-Cap Fund 2,827,948 3,270,145
JNL/MCM Technology Sector Fund 3,378,015 2,146,963
JNL/MCM Value Line(R) 30 Fund 38,729,838 39,595,334
JNL/MCM VIP Fund 6,784,069 3,102,875
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights
-----------------------------
The following is a summary for each period in the five year period ended
December 31, 2008 of unit values, total returns and expense ratios for variable
annuity contracts with the highest and lowest expense ratios in addition to
certain other portfolio data. Unit values for portfolios that do not have any
assets at period end are calculated based on the net asset value of the
underlying fund less expenses charged directly to the separate account.
[Enlarge/Download Table]
JNL/Capital
JNL/AIM Global JNL/AIM JNL/AIM JNL/AIM Guardian Global
Real Estate International Large Cap Small Cap Balanced
Portfolio(a) Growth Portfolio Growth Portfolio Growth Portfolio Portfolio
-------------- ---------------- ---------------- ---------------- ---------------
Highest expense ratio
Period ended
December 31, 2008
Unit Value $ 7.794000 $ 8.941970 $ 7.324091 $ 8.026065 $ 7.264910
Total Return * -37.64% -42.72% -40.11% -41.86% -31.10%
Ratio of Expenses ** 3.06% 3.06% 4.00% 3.60% 4.00%
Period ended
December 31, 2007
Unit Value $ 12.498967 $ 15.610040 $ 12.228711 $ 13.804828 $ 10.543817
Total Return * -19.38%*** 6.87%*** 11.19% 7.41% 3.70%
Ratio of Expenses ** 3.06% 3.06% 4.00% 3.60% 4.00%
Period ended
December 31, 2006
Unit Value $ 15.193606 $ 14.852999 $ 10.998069 $ 12.851988 $ 10.167521
Total Return * 32.43% 19.03% 3.64% 10.45% 6.46%
Ratio of Expenses ** 2.95% 2.95% 4.00% 3.60% 4.00%
Period ended
December 31, 2005
Unit Value $ 11.473288 $ 12.478356 $ 10.611801 $ 11.635991 $ 9.550912
Total Return * 9.43*** 12.58%*** 3.04% 4.60% 5.78%
Ratio of Expenses ** 2.95% 2.95% 4.00% 3.60% 4.00%
Period ended
December 31, 2004
Unit Value n/a $ 11.699840 $ 10.298874 $ 11.124630 $ 9.028769
Total Return * n/a 0.70%*** 8.22%*** 7.51%*** 9.97%***
Ratio of Expenses ** n/a 2.87% 4.00% 3.60% 4.00%
JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse JNL/
Guardian Global Guardian Guardian U.S. Global Natural Credit Suisse
Diversified International Small Growth Equity Resources Long/Short
Research Portfolio Cap Portfolio(c) Portfolio Portfolio(b) Portfolio(b)
------------------ ------------------- ------------- ----------------- -------------
Highest expense ratio
Period ended
December 31, 2008
Unit Value $ 14.291823 $ 4.421985 $ 14.196883 $ 6.386254 $ 6.443505
Total Return * -41.86%*** -55.11% -42.60% -52.69% -39.20%
Ratio of Expenses ** 2.92% 2.645% 2.95% 3.06% 2.46%
Period ended
December 31, 2007
Unit Value $ 26.239730 $ 9.849998 $ 24.731198 $ 13.499173 $ 10.597762
Total Return * 2.45%*** -2.45%*** 6.52% 14.39%*** -1.94%***
Ratio of Expenses ** 2.72% 2.645% 2.95% 3.06% 2.46%
Period ended
December 31, 2006
Unit Value $ 23.065061 n/a $ 23.216435 n/a n/a
Total Return * 10.57% n/a 1.57% n/a n/a
Ratio of Expenses ** 2.45% n/a 2.95% n/a n/a
Period ended
December 31, 2005
Unit Value $ 20.859781 n/a $ 22.857142 n/a n/a
Total Return * -0.55% n/a 7.25%*** n/a n/a
Ratio of Expenses ** 2.45% n/a 2.95% n/a n/a
Period ended
December 31, 2004
Unit Value $ 20.974400 n/a $ 22.554973 n/a n/a
Total Return * 7.07%*** n/a -0.27%*** n/a n/a
Ratio of Expenses ** 2.45% n/a 2.92% n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations May 2, 2005.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/Capital
JNL/AIM Global JNL/AIM JNL/AIM JNL/AIM Guardian Global
Real Estate International Large Cap Small Cap Balanced
Portfolio(a) Growth Portfolio Growth Portfolio Growth Portfolio Portfolio
-------------- ---------------- ---------------- ---------------- ---------------
Lowest expense ratio
Period ended
December 31, 2008
Unit Value $ 8.329075 $ 11.524130 $ 9.018126 $ 9.499926 $ 9.221201
Total Return * -36.50% -35.61%*** -38.35% -40.48% -29.18%
Ratio of Expenses ** 1.25% 1.20% 1.10% 1.25% 1.25%
Period ended
December 31, 2007
Unit Value $ 13.117101 $ 19.623745 $ 14.626770 $ 15.960342 $ 13.020007
Total Return * -16.07%*** 8.41% 14.48% 9.98% 6.61%
Ratio of Expenses ** 1.25% 1.25% 1.10% 1.25% 1.25%
Period ended
December 31, 2006
Unit Value $ 15.628634 $ 18.102209 $ 12.776730 $ 14.511723 $ 12.212895
Total Return * 34.78% 21.07% 6.68% 13.07% 9.42%
Ratio of Expenses ** 1.35% 1.25% 1.10% 1.25% 1.25%
Period ended
December 31, 2005
Unit Value $ 11.595734 $ 14.952201 $ 11.976548 $ 12.834332 $ 11.161868
Total Return * 9.03%*** 9.32% 6.06% 7.08% 8.72%
Ratio of Expenses ** 1.35% 1.25% 1.10% 1.25% 1.25%
Period ended
December 31, 2004
Unit Value n/a $ 13.677913 $ 11.292011 $ 11.986082 $ 10.266186
Total Return * n/a 14.89% 4.49% 5.53% 8.06%
Ratio of Expenses ** n/a 1.25% 1.10% 1.25% 1.25%
JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse JNL/
Guardian Global Guardian Guardian U.S. Global Natural Credit Suisse
Diversified International Small Growth Equity Resources Long/Short
Research Portfolio Cap Portfolio(c) Portfolio Portfolio(b) Portfolio(b)
------------------ ------------------- ------------- ----------------- -------------
Lowest expense ratio
Period ended
December 31, 2008
Unit Value $ 17.948440 $ 4.484082 $ 18.024075 $ 6.622915 $ 6.604318
Total Return * -43.20% -54.52% -37.16%*** -50.26%*** -32.20%***
Ratio of Expenses ** 1.25% 1.35% 1.20% 1.20% 1.20%
Period ended
December 31, 2007
Unit Value $ 31.597476 $ 9.859775 $ 30.659761 $ 13.730889 $ 10.710847
Total Return * -3.47%*** -2.17%*** 8.36% 1.58%*** 4.97%***
Ratio of Expenses ** 1.25% 1.35% 1.25% 1.25% 1.35%
Period ended
December 31, 2006
Unit Value $ 26.214779 n/a $ 28.294191 n/a n/a
Total Return * 11.79% n/a 3.31% n/a n/a
Ratio of Expenses ** 1.35% n/a 1.25% n/a n/a
Period ended
December 31, 2005
Unit Value $ 23.449660 n/a $ 27.387918 n/a n/a
Total Return * 0.55% n/a 3.37% n/a n/a
Ratio of Expenses ** 1.35% n/a 1.25% n/a n/a
Period ended
December 31, 2004
Unit Value $ 23.321437 n/a $ 26.494836 n/a n/a
Total Return * 15.90% n/a 8.24% n/a n/a
Ratio of Expenses ** 1.35% n/a 1.25% n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations May 2, 2005.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/Capital
JNL/AIM Global JNL/AIM JNL/AIM JNL/AIM Guardian Global
Real Estate International Large Cap Small Cap Balanced
Portfolio(a) Growth Portfolio Growth Portfolio Growth Portfolio Portfolio
-------------- ---------------- ---------------- ---------------- ---------------
Portfolio data
Period ended
December 31, 2008
Net Assets (in thousands) $ 4,718 $ 9,437 $ 5,553 $ 2,303 $ 9,625
Units Outstanding
(in thousands) 577 906 650 254 1,077
Investment Income Ratio * 2.10% 0.45% 0.15% 0.00% 1.10%
Period ended
December 31, 2007
Net Assets (in thousands) $ 6,850 $ 14,387 $ 7,404 $ 3,930 $ 12,554
Units Outstanding
(in thousands) 530 816 535 258 990
Investment Income Ratio * 2.50% 1.71% 0.42% 0.28% 2.59%
Period ended
December 31, 2006
Net Assets (in thousands) $ 7,640 $ 8,157 $ 6,042 $ 3,987 $ 10,268
Units Outstanding
(in thousands) 494 519 497 287 859
Investment Income Ratio * 0.08% 0.17% 0.00% 0.00% 0.13%
Period ended
December 31, 2005
Net Assets (in thousands) $ 1,179 $ 3,690 $ 4,672 $ 3,488 $ 8,699
Units Outstanding
(in thousands) 102 308 409 283 790
Investment Income Ratio * 0.00% 1.82% 0.04% 0.00% 0.01%
Period ended
December 31, 2004
Net Assets (in thousands) n/a $ 3,078 $ 3,366 $ 3,727 $ 6,684
Units Outstanding
(in thousands) n/a 295 312 324 648
Investment Income Ratio * n/a 1.34% 0.00% 0.00% 1.36%
JNL/Capital JNL/Capital JNL/Capital JNL/Credit Suisse JNL/
Guardian Global Guardian Guardian U.S. Global Natural Credit Suisse
Diversified International Small Growth Equity Resources Long/Short
Research Portfolio Cap Portfolio(c) Portfolio Portfolio(b) Portfolio(b)
------------------ ------------------- ------------- ----------------- -------------
Portfolio data
Period ended
December 31, 2008
Net Assets (in thousands) $ 4,641 $ 709 $ 6,682 $ 17,074 $ 1,601
Units Outstanding
(in thousands) 347 159 557 2,612 245
Investment Income Ratio * 0.00% 0.22% 0.00% 0.08% 0.00%
Period ended
December 31, 2007
Net Assets (in thousands) $ 5,787 $ 155 $ 9,399 $ 22,157 $ 518
Units Outstanding
(in thousands) 299 16 537 1,622 49
Investment Income Ratio * 0.71% 0.00% 0.00% 0.00% 0.00%
Period ended
December 31, 2006
Net Assets (in thousands) $ 3,676 n/a $ 7,526 n/a n/a
Units Outstanding
(in thousands) 273 n/a 528 n/a n/a
Investment Income Ratio * 0.09% n/a 0.00% n/a n/a
Period ended
December 31, 2005
Net Assets (in thousands) $ 3,601 n/a $ 7,392 n/a n/a
Units Outstanding
(in thousands) 326 n/a 623 n/a n/a
Investment Income Ratio * 0.54% n/a 0.00% n/a n/a
Period ended
December 31, 2004
Net Assets (in thousands) $ 3,654 n/a $ 7,131 n/a n/a
Units Outstanding
(in thousands) 357 n/a 698 n/a n/a
Investment Income Ratio * 0.00% n/a 0.00% n/a n/a
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations May 2, 2005.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/Franklin
JNL/Eagle JNL/Eagle JNL/Franklin Templeton JNL/Franklin
Core Equity SmallCap Equity Templeton Founding Global Growth Templeton
Portfolio Portfolio Strategy Portfolio(c) Portfolio(c) Income Portfolio(b)
----------- --------------- --------------------- ------------- -------------------
Highest expense ratio
Period ended
December 31, 2008
Unit Value $ 9.000976 $ 13.075035 $ 6.086256 $ 5.643363 $ 7.240302
Total Return * -41.10% -40.06% -37.97% -42.33% -31.85%
Ratio of Expenses ** 3.445% 2.92% 2.92% 2.92% 3.06%
Period ended
December 31, 2007
Unit Value $ 15.282170 $ 21.815073 $ 9.812218 $ 9.785701 $ 10.624672
Total Return * -2.84% 8.85% -3.47%*** -8.10%*** -3.52%***
Ratio of Expenses ** 3.445% 2.92% 2.92% 2.92% 3.06%
Period ended
December 31, 2006
Unit Value $ 15.728676 $ 20.041342 n/a n/a $ 10.767823
Total Return * 8.55% 16.65% n/a n/a 5.49%***
Ratio of Expenses ** 3.445% 2.92% n/a n/a 2.92%
Period ended
December 31, 2005
Unit Value $ 14.489276 $ 17.181084 n/a n/a n/a
Total Return * -0.12% -0.42% n/a n/a n/a
Ratio of Expenses ** 3.445% 2.92% n/a n/a n/a
Period ended
December 31, 2004
Unit Value $ 14.506247 $ 17.253799 n/a n/a n/a
Total Return * 5.17%*** 14.73%*** n/a n/a n/a
Ratio of Expenses ** 3.445% 2.92% n/a n/a n/a
JNL/Franklin JNL/ JNL/Goldman JNL/
JNL/Franklin Templeton Goldman Sachs Sachs Emerging Goldman Sachs
Templeton Mutual Small Cap Core Plus Markets Debt Mid Cap
Shares Portfolio(c) Value Portfolio(a) Bond Portfolio Portfolio(d) Value Portfolio(a)
------------------- ------------------ -------------- -------------- ------------------
Highest expense ratio
Period ended
December 31, 2008
Unit Value $ 5.918448 $ 7.322015 $ 14.817905 $ 9.627208 $ 7.740295
Total Return * -39.47% -35.05% -8.25% 1.68%*** -38.02%
Ratio of Expenses ** 2.56% 2.92% 3.30% 2.32% 3.06%
Period ended
December 31, 2007
Unit Value $ 9.777653 $ 11.273287 $ 16.150638 n/a $ 12.488638
Total Return * -5.59%*** -8.86% 3.51% n/a -6.17%***
Ratio of Expenses ** 2.56% 2.92% 3.30% n/a 3.06%
Period ended
December 31, 2006
Unit Value n/a $ 12.368543 $ 15.602425 n/a $ 12.557941
Total Return * n/a 8.71%*** 1.30% n/a 8.72%***
Ratio of Expenses ** n/a 2.92% 3.30% n/a 2.92%
Period ended
December 31, 2005
Unit Value n/a $ 10.822833 $ 15.402942 n/a $ 11.186412
Total Return * n/a -2.06%*** -0.70% n/a 0.75%***
Ratio of Expenses ** n/a 2.86% 3.30% n/a 2.72%
Period ended
December 31, 2004
Unit Value n/a n/a $ 15.511811 n/a n/a
Total Return * n/a n/a 5.6%*** n/a n/a
Ratio of Expenses ** n/a n/a 3.30% n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations May 2, 2005.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations January 16, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/Franklin
JNL/Eagle JNL/Eagle JNL/Franklin Templeton JNL/Franklin
Core Equity SmallCap Equity Templeton Founding Global Growth Templeton
Portfolio Portfolio Strategy Portfolio(c) Portfolio(c) Income Portfolio(b)
----------- --------------- --------------------- ------------- -------------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 12.009007 $ 16.353961 $ 6.288338 $ 5.830781 $ 7.598687
Total Return * -39.70% -38.96% -36.93% -41.36% -30.61%
Ratio of Expenses ** 1.10% 1.10% 1.25% 1.25% 1.25%
Period ended December 31, 2007
Unit Value $ 19.916715 $ 26.791566 $ 9.970116 $ 9.943224 $ 10.950553
Total Return * -0.52% 10.86% -4.99%*** -7.78%*** 0.58%***
Ratio of Expenses ** 1.10% 1.10% 1.25% 1.25% 1.25%
Period ended December 31, 2006
Unit Value $ 20.020920 $ 24.167102 n/a n/a $ 10.887761
Total Return * 11.12% 18.78% n/a n/a 8.88%***
Ratio of Expenses ** 1.10% 1.10% n/a n/a 1.40%
Period ended December 31, 2005
Unit Value $ 18.016966 $ 20.346844 n/a n/a n/a
Total Return * 2.25% 1.40% n/a n/a n/a
Ratio of Expenses ** 1.10% 1.10% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 17.621100 $ 20.065533 n/a n/a n/a
Total Return * 6.65% 13.28% n/a n/a n/a
Ratio of Expenses ** 1.10% 1.10% n/a n/a n/a
[Enlarge/Download Table]
JNL/Franklin JNL/ JNL/Goldman JNL/
JNL/Franklin Templeton Goldman Sachs Sachs Emerging Goldman Sachs
Templeton Mutual Small Cap Core Plus Markets Debt Mid Cap
Shares Portfolio(c) Value Portfolio(a) Bond Portfolio Portfolio(d) Value Portfolio(a)
------------------- ------------------ -------------- -------------- ------------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 6.077994 $ 7.755973 $ 20.002660 $ 9.649295 $ 8.241286
Total Return * -34.06%*** -34.03% -6.21% 7.15%*** -36.95%
Ratio of Expenses ** 1.20% 1.35% 1.10% 1.35% 1.35%
Period ended December 31, 2007
Unit Value $ 9.900980 $ 11.756122 $ 21.327295 n/a $ 13.070993
Total Return * -2.04%*** -7.40% 5.83% n/a 1.41%
Ratio of Expenses ** 1.25% 1.35% 1.10% n/a 1.35%
Period ended December 31, 2006
Unit Value n/a $ 12.695707 $ 20.152585 n/a $ 12.889320
Total Return * n/a 16.13% 3.54% n/a 14.18%
Ratio of Expenses ** n/a 1.35% 1.10% n/a 1.35%
Period ended December 31, 2005
Unit Value n/a $ 10.931928 $ 19.463165 n/a $ 11.288517
Total Return * n/a -0.22%*** 1.50% n/a -0.04%***
Ratio of Expenses ** n/a 1.35% 1.10% n/a 1.35%
Period ended December 31, 2004
Unit Value n/a n/a $ 19.175338 n/a n/a
Total Return * n/a n/a 7.39% n/a n/a
Ratio of Expenses ** n/a n/a 1.10% n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations May 2, 2005.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations January 16, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/Franklin
JNL/Eagle JNL/Eagle JNL/Franklin Templeton JNL/Franklin
Core Equity SmallCap Equity Templeton Founding Global Growth Templeton
Portfolio Portfolio Strategy Portfolio(c) Portfolio(c) Income Portfolio(b)
----------- --------------- --------------------- ------------- -------------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 2,152 $ 4,286 $ 26,679 $ 3,094 $ 23,604
Units Outstanding (in thousands) 235 299 4,280 535 3,144
Investment Income Ratio * 2.51% 0.00% 1.39% 0.02% 0.09%
Period ended December 31, 2007
Net Assets (in thousands) $ 4,094 $ 6,747 $ 36,507 $ 4,740 $ 28,076
Units Outstanding (in thousands) 286 296 3,678 479 2,586
Investment Income Ratio * 1.98% 2.17% 0.00% 1.22% 4.15%
Period ended December 31, 2006
Net Assets (in thousands) $ 4,580 $ 5,301 n/a n/a $ 5,251
Units Outstanding (in thousands) 314 273 n/a n/a 484
Investment Income Ratio * 0.00% 0.00% n/a n/a 0.47%
Period ended December 31, 2005
Net Assets (in thousands) $ 4,512 $ 4,322 n/a n/a n/a
Units Outstanding (in thousands) 348 275 n/a n/a n/a
Investment Income Ratio * 0.90% 0.00% n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 4,371 $ 5,125 n/a n/a n/a
Units Outstanding (in thousands) 354 347 n/a n/a n/a
Investment Income Ratio * 0.83% 0.00% n/a n/a n/a
JNL/Franklin JNL/ JNL/Goldman JNL/
JNL/Franklin Templeton Goldman Sachs Sachs Emerging Goldman Sachs
Templeton Mutual Small Cap Core Plus Markets Debt Mid Cap
Shares Portfolio(c) Value Portfolio(a) Bond Portfolio Portfolio(d) Value Portfolio(a)
------------------- ------------------ -------------- -------------- ------------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 5,576 $ 2,371 $ 14,518 $ 90 $ 2,680
Units Outstanding (in thousands) 925 310 825 9 331
Investment Income Ratio * 0.00% 1.14% 3.90% 0.00% 0.99%
Period ended December 31, 2007
Net Assets (in thousands) $ 7,161 $ 2,806 $ 15,399 n/a $ 4,209
Units Outstanding (in thousands) 726 242 827 n/a 327
Investment Income Ratio * 0.00% 2.67% 3.69% n/a 2.05%
Period ended December 31, 2006
Net Assets (in thousands) n/a $ 1,909 $ 10,767 n/a $ 1,796
Units Outstanding (in thousands) n/a 152 613 n/a 141
Investment Income Ratio * n/a 0.07% 0.00% n/a 0.09%
Period ended December 31, 2005
Net Assets (in thousands) n/a $ 522 $ 8,475 n/a $ 443
Units Outstanding (in thousands) n/a 48 518 n/a 40
Investment Income Ratio * n/a 0.00% 5.91% n/a 0.00%
Period ended December 31, 2004
Net Assets (in thousands) n/a n/a $ 6,028 n/a n/a
Units Outstanding (in thousands) n/a n/a 386 n/a n/a
Investment Income Ratio * n/a n/a 5.47% n/a n/a
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations May 2, 2005.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations January 16, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio(a) Value Portfolio Portfolio Portfolio Portfolio(a)
---------------- --------------- ------------- --------------- ----------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 9.489982 $ 7.524892 $ 11.519886 $ 12.381527 $ 6.668671
Total Return * -6.12%*** -46.49% -46.04% 2.36% -51.55%
Ratio of Expenses ** 2.56% 3.67% 2.92% 4.00% 3.06%
Period ended December 31, 2007
Unit Value $ 10.370787 $ 14.063652 $ 21.350052 $ 12.096597 $ 13.765183
Total Return * 2.25% 7.91% 4.84% 2.19% 31.56%***
Ratio of Expenses ** 2.47% 3.67% 2.92% 4.00% 3.06%
Period ended December 31, 2006
Unit Value $ 10.142734 $ 13.032392 $ 20.365068 $ 11.837508 $ 10.811520
Total Return * 1.78%*** 27.24% 8.84% -0.79% 14.76%***
Ratio of Expenses ** 2.47% 3.67% 2.92% 4.00% 2.47%
Period ended December 31, 2005
Unit Value n/a $ 10.242631 $ 18.711181 $ 11.931278 n/a
Total Return * n/a 14.30% 3.12% -1.65% n/a
Ratio of Expenses ** n/a 3.67% 2.92% 4.00% n/a
Period ended December 31, 2004
Unit Value n/a $ 8.960817 $ 18.145865 $ 12.131268 n/a
Total Return * n/a 16.96%*** 13.23%*** 3.03%*** n/a
Ratio of Expenses ** n/a 3.67% 2.92% 4.00% n/a
JNL/Lazard JNL/Lazard JNL/M&G JNL/M&G JNL/MCM
Mid Cap Small Cap Global Basics Global Leaders 10 x 10
Equity Portfolio Equity Portfolio Portfolio(c) Portfolio(c) Portfolio(b)
---------------- ---------------- ------------- -------------- ------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 9.497574 $ 7.304178 $ 8.387379 $ 8.317768 $ 6.068298
Total Return * -41.13% -40.98% 3.40%*** 12.15%*** -37.80%
Ratio of Expenses ** 3.62% 4.00% 1.65% 2.00% 2.47%
Period ended December 31, 2007
Unit Value $ 16.133863 $ 12.376615 n/a n/a $ 9.756870
Total Return * -6.09% -10.48% n/a n/a 2.69%***
Ratio of Expenses ** 3.62% 4.00% n/a n/a 2.47%
Period ended December 31, 2006
Unit Value $ 17.179980 $ 13.825552 n/a n/a n/a
Total Return * 10.50% 12.23% n/a n/a n/a
Ratio of Expenses ** 3.62% 4.00% n/a n/a n/a
Period ended December 31, 2005
Unit Value $ 15.547664 $ 12.318952 n/a n/a n/a
Total Return * 4.95% 0.56% n/a n/a n/a
Ratio of Expenses ** 3.62% 4.00% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 14.814425 $ 12.250761 n/a n/a n/a
Total Return * 11.71%*** 15.46%*** n/a n/a n/a
Ratio of Expenses ** 3.62% 4.00% n/a n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations May 1, 2006.
(b) Commencement of operations April 30, 2007.
(c) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio(a) Value Portfolio Portfolio Portfolio Portfolio(a)
----------------- --------------- ------------- --------------- ----------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 9.827941 $ 9.942002 $ 14.466516 $ 18.135712 $ 6.998757
Total Return * -8.05%*** -45.10% -45.13% 5.26% -50.67%
Ratio of Expenses ** 1.25% 1.10% 1.25% 1.20% 1.25%
Period ended December 31, 2007
Unit Value $ 10.566167 $ 18.109633 $ 26.367299 $ 17.229132 $ 14.187324
Total Return * 3.41% 10.74% 6.61% 1.64%*** -0.35%***
Ratio of Expenses ** 1.35% 1.10% 1.25% 1.20% 1.25%
Period ended December 31, 2006
Unit Value $ 10.218127 $ 16.353590 $ 24.731845 $ 16.297123 $ 10.892120
Total Return * 2.14%*** 30.54% 10.67% 1.97% 9.15%***
Ratio of Expenses ** 1.35% 1.10% 1.25% 1.25% 1.35%
Period ended December 31, 2005
Unit Value n/a $ 12.527634 $ 22.347947 $ 15.981831 n/a
Total Return * n/a 17.27% 4.85% 1.09% n/a
Ratio of Expenses ** n/a 1.10% 1.25% 1.25% n/a
Period ended December 31, 2004
Unit Value n/a $ 10.682523 $ 21.314796 $ 15.810068 n/a
Total Return * n/a 17.19% 16.53% 2.56% n/a
Ratio of Expenses ** n/a 1.10% 1.25% 1.25% n/a
JNL/Lazard JNL/Lazard JNL/M&G JNL/M&G JNL/MCM
Mid Cap Small Cap Global Basics Global Leaders 10 x 10
Equity Portfolio Equity Portfolio Portfolio(c) Portfolio(c) Portfolio(b)
---------------- ---------------- -------------- -------------- ------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 12.480293 $ 10.001438 $ 8.393798 $ 8.330475 $ 6.193316
Total Return * -39.63% -39.25% 11.48%*** 12.21%*** -37.04%
Ratio of Expenses ** 1.10% 1.10% 1.35% 1.35% 1.25%
Period ended December 31, 2007
Unit Value $ 20.673108 $ 16.462556 n/a n/a $ 9.837116
Total Return * -3.68% -7.83% n/a n/a -5.29%***
Ratio of Expenses ** 1.10% 1.10% n/a n/a 1.25%
Period ended December 31, 2006
Unit Value $ 21.462784 $ 17.861338 n/a n/a n/a
Total Return * 13.31% 15.52% n/a n/a n/a
Ratio of Expenses ** 1.10% 1.10% n/a n/a n/a
Period ended December 31, 2005
Unit Value $ 18.941460 $ 15.461306 n/a n/a n/a
Total Return * 7.62% 3.51% n/a n/a n/a
Ratio of Expenses ** 1.10% 1.10% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 17.600238 $ 14.937420 n/a n/a n/a
Total Return * 13.67% 11.68% n/a n/a n/a
Ratio of Expenses ** 1.10% 1.10% n/a n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations May 1, 2006.
(b) Commencement of operations April 30, 2007.
(c) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/ JNL/JPMorgan
Goldman Sachs JNL/JPMorgan JNL/JPMorgan U.S. Government JNL/Lazard
Short Duration International MidCap Growth & Quality Bond Emerging Markets
Bond Portfolio(a) Value Portfolio Portfolio Portfolio Portfolio(a)
----------------- --------------- ------------- --------------- ----------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 3,960 $ 14,626 $ 3,832 $ 14,559 $ 7,602
Units Outstanding (in thousands) 409 1,560 397 896 1,100
Investment Income Ratio * 4.34% 2.14% 0.00% 2.39% 0.68%
Period ended December 31, 2007
Net Assets (in thousands) $ 3,611 $ 28,958 $ 7,907 $ 9,981 $ 10,062
Units Outstanding (in thousands) 344 1,675 486 659 715
Investment Income Ratio * 3.54% 5.58% 0.00% 3.48% 0.22%
Period ended December 31, 2006
Net Assets (in thousands) $ 1,443 $ 16,995 $ 5,617 $ 8,591 $ 1,501
Units Outstanding (in thousands) 142 1,056 429 615 138
Investment Income Ratio * 0.00% 0.14% 0.00% 0.00% 0.00%
Period ended December 31, 2005
Net Assets (in thousands) n/a $ 5,673 $ 5,604 $ 8,562 n/a
Units Outstanding (in thousands) n/a 447 506 640 n/a
Investment Income Ratio * n/a 0.51% 0.28% 3.86% n/a
Period ended December 31, 2004
Net Assets (in thousands) n/a $ 2,677 $ 5,971 $ 7,842 n/a
Units Outstanding (in thousands) n/a 233 572 601 n/a
Investment Income Ratio * n/a 1.49% 0.00% 4.55% n/a
JNL/Lazard JNL/Lazard JNL/M&G JNL/M&G JNL/MCM
Mid Cap Small Cap Global Basics Global Leaders 10 x 10
Equity Portfolio Equity Portfolio Portfolio(c) Portfolio(c) Portfolio(b)
---------------- ---------------- ------------- -------------- ------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 7,070 $ 4,441 $ 22 $ 38 $ 11,357
Units Outstanding (in thousands) 619 481 3 5 1,845
Investment Income Ratio * 1.32% 0.00% 0.00% 0.18% 1.06%
Period ended December 31, 2007
Net Assets (in thousands) $ 12,268 $ 7,957 n/a n/a $ 6,751
Units Outstanding (in thousands) 648 522 n/a n/a 689
Investment Income Ratio * 5.55% 4.22% n/a n/a 0.00%
Period ended December 31, 2006
Net Assets (in thousands) $ 10,578 $ 7,426 n/a n/a n/a
Units Outstanding (in thousands) 541 448 n/a n/a n/a
Investment Income Ratio * 0.20% 0.67% n/a n/a n/a
Period ended December 31, 2005
Net Assets (in thousands) $ 8,755 $ 5,876 n/a n/a n/a
Units Outstanding (in thousands) 508 408 n/a n/a n/a
Investment Income Ratio * 11.08% 5.61% n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 5,868 $ 4,898 n/a n/a n/a
Units Outstanding (in thousands) 368 348 n/a n/a n/a
Investment Income Ratio * 0.20% 0.05% n/a n/a n/a
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations May 1, 2006.
(b) Commencement of operations April 30, 2007.
(c) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM
JNL/MCM Bond Index Communications Consumer Brands Dow Dividend
25 Portfolio(b) Portfolio Sector Portfolio Sector Portfolio Portfolio(a)
--------------- ---------- ---------------- ---------------- ------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 6.738050 $10.345302 $ 3.189306 $ 5.873650 $ 5.012113
Total Return * -37.09% -0.19% -41.46% -33.72% -50.82%
Ratio of Expenses ** 2.92% 3.82% 3.06% 3.595% 2.92%
Period ended December 31, 2007
Unit Value $ 10.711080 $10.365024 $ 5.447865 $ 8.861998 $ 10.191738
Total Return * -5.64% 2.42% 1.44%*** -11.14% -5.83%***
Ratio of Expenses ** 2.92% 3.82% 3.06% 3.595% 2.92%
Period ended December 31, 2006
Unit Value $ 11.351254 $10.120441 $ 5.591933 $ 9.972542 n/a
Total Return * 3.63%*** -0.23% 32.69% 9.44% n/a
Ratio of Expenses ** 2.92% 3.82% 2.56% 3.595% n/a
Period ended December 31, 2005
Unit Value n/a $10.143772 $ 4.214321 $ 9.112139 n/a
Total Return * n/a -1.96% 0.41%*** -5.84% n/a
Ratio of Expenses ** n/a 3.82% 2.56% 3.595% n/a
Period ended December 31, 2004
Unit Value n/a $10.346481 $ 4.328555 $ 9.677786 n/a
Total Return * n/a 3.18%*** 8.65%*** 4.79%*** n/a
Ratio of Expenses ** n/a 3.82% 2.37% 3.595% n/a
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock European 30 Financial Healthcare Index 5
Index Portfolio Portfolio(d) Sector Portfolio Sector Portfolio Portfolio(c)
--------------- ------------ ---------------- ---------------- ------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 5.043857 $ 8.576221 $ 5.025586 $ 7.818485 $ 6.704217
Total Return * -39.96% 16.18%*** -52.15% -25.93% -31.73%
Ratio of Expenses ** 3.52% 2.46% 3.10% 3.62% 2.695%
Period ended December 31, 2007
Unit Value $ 8.400674 n/a $ 10.503013 $ 10.556132 $ 9.820725
Total Return * 0.16% n/a -19.90% 3.72% -3.21%***
Ratio of Expenses ** 3.52% n/a 3.10% 3.62% 2.695%
Period ended December 31, 2006
Unit Value $ 8.387626 n/a $ 13.112098 $ 10.177309 n/a
Total Return * 12.81% n/a 15.07% 2.50% n/a
Ratio of Expenses ** 3.52% n/a 3.10% 3.62% n/a
Period ended December 31, 2005
Unit Value $ 7.435297 n/a $ 11.394730 $ 9.929040 n/a
Total Return * 0.65% n/a 2.88% 3.80% n/a
Ratio of Expenses ** 3.52% n/a 3.10% 3.62% n/a
Period ended December 31, 2004
Unit Value $ 7.387514 n/a $ 11.075714 $ 9.565977 n/a
Total Return * 10.45%*** n/a 9.86%*** -0.25%*** n/a
Ratio of Expenses ** 3.52% n/a 3.10% 3.62% n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations January 17, 2006.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations April 30, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM
JNL/MCM Bond Index Communications Consumer Brands Dow Dividend
25 Portfolio(b) Portfolio Sector Portfolio Sector Portfolio Portfolio(a)
--------------- ----------- ---------------- ---------------- -------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 7.897156 $ 12.500500 $ 3.788673 $ 7.336631 $ 5.265477
Total Return * -36.03% 2.56% -40.39% -32.14% -49.99%
Ratio of Expenses ** 1.25% 1.10% 1.25% 1.25% 1.25%
Period ended December 31, 2007
Unit Value $ 12.345715 $ 12.188243 $ 6.355640 $ 10.812044 $ 10.529819
Total Return * -4.04% 5.26% 3.00% -9.03% -5.70%***
Ratio of Expenses ** 1.25% 1.10% 1.25% 1.25% 1.25%
Period ended December 31, 2006
Unit Value $ 12.865708 $ 11.579585 $ 6.170303 $ 11.885292 n/a
Total Return * 4.97%*** 2.51% 34.43% 12.04% n/a
Ratio of Expenses ** 1.25% 1.10% 1.25% 1.25% n/a
Period ended December 31, 2005
Unit Value n/a $ 11.295672 $ 4.589999 $ 10.608405 n/a
Total Return * n/a 0.74% -0.29% -3.65% n/a
Ratio of Expenses ** n/a 1.10% 1.25% 1.25% n/a
Period ended December 31, 2004
Unit Value n/a $ 11.213047 $ 4.603328 $ 11.009928 n/a
Total Return * n/a 4.30% 16.21% 8.74% n/a
Ratio of Expenses ** n/a 1.10% 1.25% 1.25% n/a
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock European 30 Financial Healthcare Index 5
Index Portfolio Portfolio(d) Sector Portfolio Sector Portfolio Portfolio(c)
--------------- ------------- ---------------- ---------------- ------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 6.367393 $ 8.598569 $ 6.017266 $ 9.794926 $ 6.856637
Total Return * -38.49% 9.77%*** -45.11%*** -24.16% -30.81%
Ratio of Expenses ** 1.10% 1.35% 1.20% 1.25% 1.35%
Period ended December 31, 2007
Unit Value 10.351495 n/a $ 12.296201 $ 12.914850 $ 9.909799
Total Return * 2.62% n/a -18.39% 6.23% -3.24
Ratio of Expenses ** 1.10% n/a 1.25% 1.25% 1.35%
Period ended December 31, 2006
Unit Value 10.086947 n/a $ 15.067748 $ 12.157988 n/a
Total Return * 15.56% n/a 17.22% 4.95% n/a
Ratio of Expenses ** 1.10% n/a 1.25% 1.25% n/a
Period ended December 31, 2005
Unit Value $ 8.728429 n/a $ 12.854726 $ 11.584406 n/a
Total Return * 3.11% n/a 4.80% 6.28% n/a
Ratio of Expenses ** 1.10% n/a 1.25% 1.25% n/a
Period ended December 31, 2004
Unit Value $ 8.465552 n/a $ 12.266068 $ 10.900188 n/a
Total Return * 7.73% n/a 12.14% 2.21% n/a
Ratio of Expenses ** 1.10% n/a 1.25% 1.25% n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations January 17, 2006.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations April 30, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM
JNL/MCM Bond Index Communications Consumer Brands Dow Dividend
25 Portfolio(b) Portfolio Sector Portfolio Sector Portfolio Portfolio(a)
--------------- ---------- ---------------- ---------------- -------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 11,781 $ 19,683 $ 1,047 $ 1,088 $ 9,598
Units Outstanding (in thousands) 1,607 1,652 285 155 1,851
Investment Income Ratio * 4.52% 4.16% 3.49% 0.37% 0.39%
Period ended December 31, 2007
Net Assets (in thousands) $ 14,078 $ 21,147 $ 4,121 $ 1,042 $ 19,682
Units Outstanding (in thousands) 1,206 1,814 656 100 1,890
Investment Income Ratio * 1.33% 4.60% 4.48% 0.69% 0.00%
Period ended December 31, 2006
Net Assets (in thousands) $ 25,126 $ 15,092 $ 2,350 $ 737 n/a
Units Outstanding (in thousands) 2,053 1,355 360 64 n/a
Investment Income Ratio * 0.00% 0.14% 0.14% 0.01% n/a
Period ended December 31, 2005
Net Assets (in thousands) n/a $ 9,542 $ 477 $ 625 n/a
Units Outstanding (in thousands) n/a 875 97 61 n/a
Investment Income Ratio * n/a 3.45% 10.94% 3.24% n/a
Period ended December 31, 2004
Net Assets (in thousands) n/a $ 4,234 $ 296 $ 211 n/a
Units Outstanding (in thousands) n/a 388 54 20 n/a
Investment Income Ratio * n/a 0.59% 0.01% 0.00% n/a
JNL/MCM
Enhanced JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P 500 Stock European 30 Financial Healthcare Index 5
Index Portfolio Portfolio(d) Sector Portfolio Sector Portfolio Portfolio(c)
--------------- ------------ ---------------- ---------------- ------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 3,601 $ 23 $ 3,204 $ 8,686 $ 4,148
Units Outstanding (in thousands) 593 3 566 937 608
Investment Income Ratio * 1.61% 0.59% 1.69% 1.03% 1.32%
Period ended December 31, 2007
Net Assets (in thousands) $ 4,603 n/a $ 2,950 $ 6,107 $ 1,982
Units Outstanding (in thousands) 465 n/a 255 500 201
Investment Income Ratio * 1.04% n/a 1.78% 0.81% 0.00%
Period ended December 31, 2006
Net Assets (in thousands) $ 3,858 n/a $ 1,974 $ 4,999 n/a
Units Outstanding (in thousands) 393 n/a 139 433 n/a
Investment Income Ratio * 0.41% n/a 0.06% 0.05% n/a
Period ended December 31, 2005
Net Assets (in thousands) $ 3,416 n/a $ 945 $ 4,424 n/a
Units Outstanding (in thousands) 392 n/a 78 401 n/a
Investment Income Ratio * 7.70% n/a 2.38% 0.97% n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 2,323 n/a $ 384 $ 1,287 n/a
Units Outstanding (in thousands) 262 n/a 33 123 n/a
Investment Income Ratio * 0.34% n/a 0.10% 0.00% n/a
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations January 17, 2006.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations April 30, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 25 NYSE International
Index Portfolio Portfolio(a) 5 Portfolio(b) Portfolio(a) 25 Portfolio(c)
--------------- ------------ -------------- ------------ ------------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 9.741185 $ 7.274603 $ 6.132935 $ 6.964356 $ 6.045943
Total Return * -45.06% -44.44% -47.65% -43.14% -47.32%
Ratio of Expenses ** 3.82% 3.36% 2.95% 2.82% 2.61%
Period ended December 31, 2007
Unit Value $ 17.731558 $ 13.092153 $ 11.714469 $ 12.247767 $ 11.477487
Total Return * 6.23% -5.04%*** 10.26% 3.06%*** 9.88%***
Ratio of Expenses ** 3.82% 3.36% 2.95% 2.82% 2.61%
Period ended December 31, 2006
Unit Value $ 16.691558 $ 13.425250 $ 10.624143 n/a n/a
Total Return * 20.88% 15.19% 6.26%*** n/a n/a
Ratio of Expenses ** 3.82% 3.11% 2.95% n/a n/a
Period ended December 31, 2005
Unit Value $ 13.807835 $ 11.654963 n/a n/a n/a
Total Return * 9.07% -0.84%*** n/a n/a n/a
Ratio of Expenses ** 3.82% 3.11% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 12.659046 $ 10.869331 n/a n/a n/a
Total Return * 14.91%*** 1.79%*** n/a n/a n/a
Ratio of Expenses ** 3.82% 2.95% n/a n/a n/a
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Oil & Gas Pacific Rim 30 S&P 24 S&P 400 MidCap S&P 500
Sector Portfolio Portfolio(d) Portfolio(b) Index Portfolio Index Portfolio
---------------- -------------- ------------ --------------- ---------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 18.461967 $ 9.557205 $ 6.935855 $ 8.465989 $ 6.598750
Total Return * -40.10% 15.95%*** -26.69%*** -39.92% -39.98%
Ratio of Expenses ** 3.67% 1.90% 2.695% 3.82% 3.82%
Period ended December 31, 2007
Unit Value $ 30.822514 n/a $ 10.659279 $ 14.092008 $ 10.994104
Total Return * 30.38% n/a -1.79%*** 3.40% 0.95%
Ratio of Expenses ** 3.67% n/a 2.32% 3.82% 3.82%
Period ended December 31, 2006
Unit Value $ 23.639818 n/a n/a $ 13.628381 $ 10.890975
Total Return * 16.45% n/a n/a 5.59% 5.21%
Ratio of Expenses ** 3.67% n/a n/a 3.82% 3.82%
Period ended December 31, 2005
Unit Value $ 20.300374 n/a n/a $ 12.907166 $ 9.831750
Total Return * 31.87% n/a n/a 7.80% 0.47%
Ratio of Expenses ** 3.67% n/a n/a 3.82% 3.82%
Period ended December 31, 2004
Unit Value $ 15.394036 n/a n/a $ 11.973757 $ 9.785439
Total Return * -1.74%*** n/a n/a 10.97%*** 6.07%***
Ratio of Expenses ** 3.67% n/a n/a 3.82% 3.82%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations October 4, 2004.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations April 30, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 25 NYSE International
Index Portfolio Portfolio(a) 5 Portfolio(b) Portfolio(a) 25 Portfolio(c)
--------------- ------------ -------------- ------------ -----------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 11.689743 $ 7.972541 $ 6.426124 $ 7.459688 $ 6.174597
Total Return * -43.60% -43.22% -39.81%*** -33.11%*** -46.66%
Ratio of Expenses ** 1.20% 1.20% 1.20% 1.20% 1.35%
Period ended December 31, 2007
Unit Value $ 20.728167 $ 14.041607 $ 12.051653 $ 12.887159 $ 11.574967
Total Return * 9.07% 0.22%*** 12.16%*** 3.20%*** 13.64%***
Ratio of Expenses ** 1.20% 1.20% 1.25% 1.25% 1.35%
Period ended December 31, 2006
Unit Value $ 19.005048 $ 14.010976 $ 10.744631 n/a n/a
Total Return * 24.08% 17.48% 7.45%*** n/a n/a
Ratio of Expenses ** 1.20% 1.25% 1.40% n/a n/a
Period ended December 31, 2005
Unit Value $ 15.316154 $ 11.926526 n/a n/a n/a
Total Return * 0.38%*** 9.28% n/a n/a n/a
Ratio of Expenses ** 1.20% 1.25% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 13.659915 $ 10.913899 n/a n/a n/a
Total Return * 13.06% 1.42% n/a n/a n/a
Ratio of Expenses ** 1.25% 1.25% n/a n/a n/a
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Oil & Gas Pacific Rim 30 S&P 24 S&P 400 MidCap S&P 500
Sector Portfolio Portfolio(d) Portfolio(b) Index Portfolio Index Portfolio
---------------- -------------- ------------ --------------- ---------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 23.347075 $ 9.563759 $ 7.189709 $ 10.159610 $ 7.974214
Total Return * -38.60% 7.51%*** -33.63% -38.33% -38.32%
Ratio of Expenses ** 1.20% 1.60% 1.35% 1.20% 1.10%
Period ended December 31, 2007
Unit Value $ 38.027337 n/a $ 10.833210 $ 16.473778 $ 12.929231
Total Return * 3.52%*** n/a -1.71%*** 6.16% 3.75%
Ratio of Expenses ** 1.20% n/a 1.35% 1.20% 1.10%
Period ended December 31, 2006
Unit Value $ 28.341626 n/a n/a $ 15.517528 $ 12.462343
Total Return * 19.29% n/a n/a 8.38% 13.82%
Ratio of Expenses ** 1.25% n/a n/a 1.20% 1.10%
Period ended December 31, 2005
Unit Value $ 23.757688 n/a n/a $ 14.317370 $ 10.949242
Total Return * 35.09% n/a n/a -0.14%*** 3.24%
Ratio of Expenses ** 1.25% n/a n/a 1.20% 1.10%
Period ended December 31, 2004
Unit Value $ 17.586279 n/a n/a $ 12.920648 $ 10.605996
Total Return * 31.65% n/a n/a 14.35% 7.10%
Ratio of Expenses ** 1.25% n/a n/a 1.25% 1.10%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations October 4, 2004.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations April 30, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
International JNL 5 JNL Optimized Nasdaq 25 NYSE International
Index Portfolio Portfolio(a) 5 Portfolio(b) Portfolio(a) 25 Portfolio(c)
--------------- ------------ -------------- ------------ -----------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 22,887 $ 219,942 $ 16,995 $ 2,841 $ 3,077
Units Outstanding (in thousands) 2,030 28,207 2,678 391 501
Investment Income Ratio * 1.79% 2.19% 0.01% 0.03% 0.01%
Period ended December 31, 2007
Net Assets (in thousands) $ 43,240 $ 411,201 $ 23,935 $ 4,932 $ 4,036
Units Outstanding (in thousands) 2,147 29,805 2,004 390 350
Investment Income Ratio * 3.07% 2.25% 3.11% 0.00% 6.00%
Period ended December 31, 2006
Net Assets (in thousands) $ 30,700 $ 203,454 $ 4,684 n/a n/a
Units Outstanding (in thousands) 1,650 14,699 437 n/a n/a
Investment Income Ratio * 0.21% 0.03% 0.05% n/a n/a
Period ended December 31, 2005
Net Assets (in thousands) $ 16,989 $ 61,448 n/a n/a n/a
Units Outstanding (in thousands) 1,127 5,193 n/a n/a n/a
Investment Income Ratio * 3.24% 0.05% n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 7,219 $ 5,265 n/a n/a n/a
Units Outstanding (in thousands) 530 484 n/a n/a n/a
Investment Income Ratio * 0.19% 0.54% n/a n/a n/a
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
Oil & Gas Pacific Rim 30 S&P 24 S&P 400 MidCap S&P 500
Sector Portfolio Portfolio(d) Portfolio(b) Index Portfolio Index Portfolio
---------------- -------------- ------------ --------------- ---------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 13,205 $ 26 $ 6,139 $ 19,157 $ 25,662
Units Outstanding (in thousands) 599 3 875 1,964 3,354
Investment Income Ratio * 0.58% 0.00% 0.00% 1.09% 1.57%
Period ended December 31, 2007
Net Assets (in thousands) $ 20,777 n/a $ 605 $ 31,368 $ 44,016
Units Outstanding (in thousands) 580 n/a 56 1,961 3,514
Investment Income Ratio * 1.01% n/a 0.00% 1.25% 1.44%
Period ended December 31, 2006
Net Assets (in thousands) $ 15,509 n/a n/a $ 26,354 $ 38,038
Units Outstanding (in thousands) 588 n/a n/a 1,735 3,118
Investment Income Ratio * 0.08% n/a n/a 0.10% 0.11%
Period ended December 31, 2005
Net Assets (in thousands) $ 5,400 n/a n/a $ 19,397 $ 26,374
Units Outstanding (in thousands) 244 n/a n/a 1,376 2,436
Investment Income Ratio * 2.94% n/a n/a 1.44% 1.46%
Period ended December 31, 2004
Net Assets (in thousands) $ 726 n/a n/a $ 12,780 $ 16,269
Units Outstanding (in thousands) 45 n/a n/a 996 1,525
Investment Income Ratio * 0.00% n/a n/a 0.01% 1.93%
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations October 4, 2004.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations April 30, 2007.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P SMid Select Small-Cap Small Cap Technology Value Line 30
60 Portfolio(d) Portfolio(b) Index Portfolio Sector Portfolio Portfolio(a)
--------------- ---------------- --------------- ---------------- -------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 5.945811 $ 9.279117 $ 8.215282 $ 3.354513 $ 8.549882
Total Return * -32.15% -42.04% -37.37% -45.15% -49.18%
Ratio of Expenses ** 2.80% 3.36% 3.82% 3.10% 3.36%
Period ended December 31, 2007
Unit Value $ 8.762630 $ 16.008906 $ 13.116710 $ 6.115358 $ 16.824245
Total Return * -5.95%*** -13.42% -5.80% 11.04% -0.66%***
Ratio of Expenses ** 2.80% 3.36% 3.82% 3.10% 3.36%
Period ended December 31, 2006
Unit Value n/a $ 18.491286 $ 13.923760 $ 5.507145 n/a
Total Return * n/a -2.48%*** 13.09% 6.03% n/a
Ratio of Expenses ** n/a 3.36% 3.82% 3.10% n/a
Period ended December 31, 2005
Unit Value n/a n/a $ 12.311569 $ 5.194080 n/a
Total Return * n/a n/a 0.33% -0.69% n/a
Ratio of Expenses ** n/a n/a 3.82% 3.10% n/a
Period ended December 31, 2004
Unit Value n/a n/a $ 12.271545 $ 5.230077 n/a
Total Return * n/a n/a 14.50%*** -0.66%*** n/a
Ratio of Expenses ** n/a n/a 3.82% 3.10% n/a
JNL/
Oppenheimer JNL/PAM JNL/PAM JNL/PIMCO
JNL/MCM Global Growth Asia ex-Japan China-India Real Return
VIP Portfolio(a) Portfolio Portfolio(e) Portfolio(e) Portfolio(c)
---------------- ------------- ------------- ------------ ------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 7.618122 $ 7.750635 $ 4.752767 $ 4.118907 $ 10.083121
Total Return * -44.51% -42.78% -23.20%*** -47.23%*** -8.65%***
Ratio of Expenses ** 3.06% 3.30% 2.67% 2.47% 2.92%
Period ended December 31, 2007
Unit Value $ 13.729202 $ 13.546090 n/a n/a $ 10.789785
Total Return * 7.40% 2.86% n/a n/a 8.65%***
Ratio of Expenses ** 3.06% 3.30% n/a n/a 2.87%
Period ended December 31, 2006
Unit Value $ 12.783308 $ 13.170060 n/a n/a n/a
Total Return * 8.79% 13.17% n/a n/a n/a
Ratio of Expenses ** 3.06% 3.30% n/a n/a n/a
Period ended December 31, 2005
Unit Value $ 11.750182 $ 11.637000 n/a n/a n/a
Total Return * 8.27%*** 10.06% n/a n/a n/a
Ratio of Expenses ** 3.06% 3.30% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 11.043498 $ 10.573497 n/a n/a n/a
Total Return * 4.97%*** 14.29%*** n/a n/a n/a
Ratio of Expenses ** 2.76% 3.30% n/a n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations October 1, 2004.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations January 16, 2007.
(d) Commencement of operations April 30, 2007.
(e) Commencement of operations March 31, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P SMid Select Small-Cap Small Cap Technology Value Line 30
60 Portfolio(d) Portfolio(b) Index Portfolio Sector Portfolio Portfolio(a)
--------------- --------------- --------------- --------------- -------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 6.091650 $ 11.339771 $ 9.858535 $ 4.000061 $ 9.370137
Total Return * -31.15% -40.80% -35.71% -44.12% -48.07%
Ratio of Expenses ** 1.35% 1.25% 1.20% 1.25% 1.20%
Period ended December 31, 2007
Unit Value $ 8.848332 $ 19.155566 $ 15.333345 $ 7.158545 $ 18.044364
Total Return * -13.07%*** -11.57% -3.28% 13.13% 0.42%***
Ratio of Expenses ** 1.35% 1.25% 1.20% 1.25% 1.20%
Period ended December 31, 2006
Unit Value n/a $ 21.661381 $ 15.853683 $ 6.327776 n/a
Total Return * n/a -1.07%*** 16.09% 8.00% n/a
Ratio of Expenses ** n/a 1.25% 1.20% 1.25% n/a
Period ended December 31, 2005
Unit Value n/a n/a $ 13.656516 $ 5.858937 n/a
Total Return * n/a n/a -0.39% 1.16% n/a
Ratio of Expenses ** n/a n/a 1.20% 1.25% n/a
Period ended December 31, 2004
Unit Value n/a n/a $ 13.241958 $ 5.791601 n/a
Total Return * n/a n/a 15.97% -0.07% n/a
Ratio of Expenses ** n/a n/a 1.25% 1.25% n/a
JNL/
Oppenheimer JNL/PAM JNL/PAM JNL/PIMCO
JNL/MCM Global Growth Asia ex-Japan China-India Real Return
VIP Portfolio(a) Portfolio Portfolio(e) Portfolio(e) Portfolio(c)
--------------- ------------- ------------- ------------ ------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 8.226249 $ 9.175389 $ 4.820984 $ 4.168903 $ 10.418261
Total Return * -43.50% -41.51% -48.71%*** -46.57%*** -4.93%
Ratio of Expenses ** 1.25% 1.10% 1.35% 1.35% 1.25%
Period ended December 31, 2007
Unit Value $ 14.559087 $ 15.687217 n/a n/a $ 10.958251
Total Return * 9.37% 5.16% n/a n/a 9.39%***
Ratio of Expenses ** 1.25% 1.10% n/a n/a 1.25%
Period ended December 31, 2006
Unit Value $ 13.311428 $ 14.918042 n/a n/a n/a
Total Return * 10.78% 15.68% n/a n/a n/a
Ratio of Expenses ** 1.25% 1.10% n/a n/a n/a
Period ended December 31, 2005
Unit Value $ 12.016520 $ 12.895425 n/a n/a n/a
Total Return * 8.42% 12.50% n/a n/a n/a
Ratio of Expenses ** 1.25% 1.10% n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 11.083687 $ 11.462639 n/a n/a n/a
Total Return * 0.15%*** 15.38% n/a n/a n/a
Ratio of Expenses ** 1.25% 1.10% n/a n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations October 1, 2004.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations January 16, 2007.
(d) Commencement of operations April 30, 2007.
(e) Commencement of operations March 31, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/MCM JNL/MCM JNL/MCM JNL/MCM JNL/MCM
S&P SMid Select Small-Cap Small Cap Technology Value Line 30
60 Portfolio(d) Portfolio(b) Index Portfolio Sector Portfolio Portfolio(a)
--------------- ---------------- --------------- ---------------- -------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 4,163 $ 4,986 $ 18,450 $ 2,878 $ 33,476
Units Outstanding (in thousands) 689 473 1,941 758 3,670
Investment Income Ratio * 0.03% 0.29% 1.38% 0.02% 0.32%
Period ended December 31, 2007
Net Assets (in thousands) $ 1,146 $ 9,735 $ 26,807 $ 4,011 $ 66,341
Units Outstanding (in thousands) 130 548 1,795 587 3,767
Investment Income Ratio * 2.30% 6.35% 1.44% 0.08% 0.00%
Period ended December 31, 2006
Net Assets (in thousands) n/a $ 21,688 $ 24,401 $ 2,834 n/a
Units Outstanding (in thousands) n/a 1,068 1,561 457 n/a
Investment Income Ratio * n/a 0.00% 0.12% 0.01% n/a
Period ended December 31, 2005
Net Assets (in thousands) n/a n/a $ 16,352 $ 1,493 n/a
Units Outstanding (in thousands) n/a n/a 1,208 259 n/a
Investment Income Ratio * n/a n/a 2.03% 2.12% n/a
Period ended December 31, 2004
Net Assets (in thousands) n/a n/a $ 10,539 $ 479 n/a
Units Outstanding (in thousands) n/a n/a 790 85 n/a
Investment Income Ratio * n/a n/a 0.01% 0.00% n/a
JNL/
Oppenheimer JNL/PAM JNL/PAM JNL/PIMCO
JNL/MCM Global Growth Asia ex-Japan China-India Real Return
VIP Portfolio(a) Portfolio Portfolio(e) Portfolio(e) Portfolio(c)
---------------- ------------- ------------- ------------ ------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 10,219 $ 9,571 $ 497 $ 1,081 $ 15,786
Units Outstanding (in thousands) 1,268 1,098 104 259 1,530
Investment Income Ratio * 1.51% 1.38% 1.70% 0.00% 1.75%
Period ended December 31, 2007
Net Assets (in thousands) $ 18,042 $ 17,153 n/a n/a $ 3,152
Units Outstanding (in thousands) 1,262 1,148 n/a n/a 289
Investment Income Ratio * 5.52% 1.17% n/a n/a 0.00%
Period ended December 31, 2006
Net Assets (in thousands) $ 14,190 $ 13,164 n/a n/a n/a
Units Outstanding (in thousands) 1,079 922 n/a n/a n/a
Investment Income Ratio * 0.02% 0.05% n/a n/a n/a
Period ended December 31, 2005
Net Assets (in thousands) $ 6,589 $ 8,280 n/a n/a n/a
Units Outstanding (in thousands) 553 667 n/a n/a n/a
Investment Income Ratio * 0.61% 0.27% n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 311 $ 5,284 n/a n/a n/a
Units Outstanding (in thousands) 28 474 n/a n/a n/a
Investment Income Ratio * 0.25% 0.18% n/a n/a n/a
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations October 1, 2004.
(b) Commencement of operations May 1, 2006.
(c) Commencement of operations January 16, 2007.
(d) Commencement of operations April 30, 2007.
(e) Commencement of operations March 31, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/ JNL/ JNL/ JNL/
JNL/PIMCO PPM America PPM America PPM America PPM America
Total Return Core Equity High Yield Mid Cap Value Small Cap Value
Bond Portfolio Portfolio Bond Portfolio Portfolio(c) Portfolio(c)
-------------- ------------ -------------- ------------- ---------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 11.462899 $ 10.960487 $ 7.948482 $ 5.591445 $ 6.194830
Total Return * -3.54% -42.07% -32.84% -47.33%*** -41.04%***
Ratio of Expenses ** 4.00% 2.67% 3.06% 2.56% 2.56%
Period ended December 31, 2007
Unit Value $ 11.883302 $ 18.920243 $ 11.835493 n/a n/a
Total Return * 3.98% -9.70% -6.10%*** n/a n/a
Ratio of Expenses ** 4.00% 2.67% 3.06% n/a n/a
Period ended December 31, 2006
Unit Value $ 11.428512 $ 20.953301 $ 12.411995 n/a n/a
Total Return * -0.57% 10.76% 7.26% n/a n/a
Ratio of Expenses ** 4.00% 2.67% 2.995% n/a n/a
Period ended December 31, 2005
Unit Value $ 11.494418 $ 18.918417 $ 11.571785 n/a n/a
Total Return * -1.69% -1.16%*** 2.51%*** n/a n/a
Ratio of Expenses ** 4.00% 2.67% 2.995% n/a n/a
Period ended December 31, 2004
Unit Value $ 11.692133 $ 18.516185 $ 11.889185 n/a n/a
Total Return * 3.02%** * 10.47% 2.55%*** n/a n/a
Ratio of Expenses ** 4.00% 2.30% 2.80% n/a n/a
JNL/ JNL/ JNL/S&P
PPM America Red Rocks Listed Competitive JNL/S&P
Value Equity Private Equity JNL/S&P 4 Advantage Disciplined
Portfolio Portfolio(d) Portfolio(b) Portfolio(b) Growth Portfolio(a)
------------ ---------------- ------------ ------------ -------------------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 8.181282 $ 5.911761 $ 6.587250 $ 6.824072 $ 6.170041
Total Return * -49.09% -20.15%*** -28.12%*** -29.32%*** -40.69%
Ratio of Expenses ** 3.62% 2.32% 2.82% 2.46% 2.46%
Period ended December 31, 2007
Unit Value $ 16.069507 n/a $ 9.914624 $ 9.908252 $ 10.402353
Total Return * -9.00% n/a 0.00%*** -1.94%*** 4.88%***
Ratio of Expenses ** 3.62% n/a 2.02% 2.32% 2.46%
Period ended December 31, 2006
Unit Value $ 17.658545 n/a n/a n/a n/a
Total Return * 7.46% n/a n/a n/a n/a
Ratio of Expenses ** 3.62% n/a n/a n/a n/a
Period ended December 31, 2005
Unit Value $ 16.432959 n/a n/a n/a n/a
Total Return * 1.19% n/a n/a n/a n/a
Ratio of Expenses ** 3.62% n/a n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 16.007678 n/a n/a n/a n/a
Total Return * 5.96%*** n/a n/a n/a n/a
Ratio of Expenses ** 3.62% n/a n/a n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations January 16, 2007.
(b) Commencement of operations December 3, 2007.
(c) Commencement of operations March 31, 2008.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/ JNL/ JNL/ JNL/
JNL/PIMCO PPM America PPM America PPM America PPM America
Total Return Core Equity High Yield Mid Cap Value Small Cap Value
Bond Portfolio Portfolio Bond Portfolio Portfolio(c) Portfolio(c)
-------------- ----------- -------------- ------------- ---------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 15.696593 $ 13.303609 $ 9.834823 $ 5.642615 $ 6.251399
Total Return * -0.70% -41.24% -31.51% -47.13%*** -40.54%***
Ratio of Expenses ** 1.10% 1.25% 1.10% 1.35% 1.35%
Period ended December 31, 2007
Unit Value $ 15.807122 $ 22.641250 $ 14.359995 n/a n/a
Total Return * 7.06% -8.40% -2.19% n/a n/a
Ratio of Expenses ** 1.10% 1.25% 1.10% n/a n/a
Period ended December 31, 2006
Unit Value $ 14.765246 $ 24.718815 $ 14.681915 n/a n/a
Total Return * 2.34% 12.34% 9.31% n/a n/a
Ratio of Expenses ** 1.10% 1.25% 1.10% n/a n/a
Period ended December 31, 2005
Unit Value $ 14.427059 $ 22.004337 $ 13.431707 n/a n/a
Total Return * 1.19% 7.40% 0.58% n/a n/a
Ratio of Expenses ** 1.10% 1.25% 1.10% n/a n/a
Period ended December 31, 2004
Unit Value $ 14.256836 $ 20.488089 $ 13.354808 n/a n/a
Total Return * 4.70% 11.64% 2.98% n/a n/a
Ratio of Expenses ** 1.10% 1.25% 1.10% n/a n/a
JNL/ JNL/ JNL/S&P
PPM America Red Rocks Listed Competitive JNL/S&P
Value Equity Private Equity JNL/S&P 4 Advantage Disciplined
Portfolio Portfolio(d) Portfolio(b) Portfolio(b) Growth Portfolio(a)
------------ ---------------- ------------ ------------ -------------------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 11.312423 $ 5.925490 $ 6.699490 $ 6.913687 $ 6.305552
Total Return * -47.87% -24.16%*** -30.46%*** -30.28% -40.02%
Ratio of Expenses ** 1.25% 1.35% 1.25% 1.25% 1.35%
Period ended December 31, 2007
Unit Value $ 21.699183 n/a $ 9.919737 $ 9.916389 $ 10.513413
Total Return * -6.80% n/a 0.77%*** -1.88%*** 3.16%***
Ratio of Expenses ** 1.25% n/a 1.35% 1.25% 1.35%
Period ended December 31, 2006
Unit Value $ 23.283251 n/a n/a n/a n/a
Total Return * 11.63% n/a n/a n/a n/a
Ratio of Expenses ** 1.25% n/a n/a n/a n/a
Period ended December 31, 2005
Unit Value $ 20.858256 n/a n/a n/a n/a
Total Return * 3.61% n/a n/a n/a n/a
Ratio of Expenses ** 1.25% n/a n/a n/a n/a
Period ended December 31, 2004
Unit Value $ 20.132020 n/a n/a n/a n/a
Total Return * 8.54% n/a n/a n/a n/a
Ratio of Expenses ** 1.25% n/a n/a n/a n/a
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations January 16, 2007.
(b) Commencement of operations December 3, 2007.
(c) Commencement of operations March 31, 2008.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/ JNL/ JNL/ JNL/
JNL/PIMCO PPM America PPM America PPM America PPM America
Total Return Core Equity High Yield Mid Cap Value Small Cap Value
Bond Portfolio Portfolio Bond Portfolio Portfolio(c) Portfolio(c)
-------------- ----------- -------------- ------------- ---------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 39,877 $ 1,109 $ 11,560 $ 188 $ 166
Units Outstanding (in thousands) 2,782 151 1,306 33 27
Investment Income Ratio * 4.39% 0.17% 8.74% 0.98% 0.49%
Period ended December 31, 2007
Net Assets (in thousands) $ 34,092 $ 2,465 $ 17,379 n/a n/a
Units Outstanding (in thousands) 2,361 201 1,328 n/a n/a
Investment Income Ratio * 4.95% 0.37% 8.09% n/a n/a
Period ended December 31, 2006
Net Assets (in thousands) $ 29,128 $ 2,794 $ 18,079 n/a n/a
Units Outstanding (in thousands) 2,158 230 1,379 n/a n/a
Investment Income Ratio * 0.30% 0.08% 0.63% n/a n/a
Period ended December 31, 2005
Net Assets (in thousands) $ 23,626 $ 3,137 $ 12,201 n/a n/a
Units Outstanding (in thousands) 1,800 315 1,040 n/a n/a
Investment Income Ratio * 4.58% 0.82% 7.16% n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 15,501 $ 3,154 $ 13,234 n/a n/a
Units Outstanding (in thousands) 1,210 352 1,124 n/a n/a
Investment Income Ratio * 2.05% 0.58% 2.29% n/a n/a
JNL/ JNL/ JNL/S&P
PPM America Red Rocks Listed Competitive JNL/S&P
Value Equity Private Equity JNL/S&P 4 Advantage Disciplined
Portfolio Portfolio(d) Portfolio(b) Portfolio(b) Growth Portfolio(a)
------------ ---------------- ------------ -------------- -------------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 2,063 $ 238 $ 9,167 $ 2,164 $ 1,078
Units Outstanding (in thousands) 305 40 1,374 315 172
Investment Income Ratio * 2.45% 0.99% 0.01% 1.26% 1.63%
Period ended December 31, 2007
Net Assets (in thousands) $ 4,475 n/a $ 83 $ 2,620 $ 777
Units Outstanding (in thousands) 358 n/a 8 264 74
Investment Income Ratio * 0.60% n/a 0.00% 0.06% 0.00%
Period ended December 31, 2006
Net Assets (in thousands) $ 6,127 n/a n/a n/a n/a
Units Outstanding (in thousands) 466 n/a n/a n/a n/a
Investment Income Ratio * 0.00% n/a n/a n/a n/a
Period ended December 31, 2005
Net Assets (in thousands) $ 6,591 n/a n/a n/a n/a
Units Outstanding (in thousands) 578 n/a n/a n/a n/a
Investment Income Ratio * 1.00% n/a n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) $ 7,086 n/a n/a n/a n/a
Units Outstanding (in thousands) 660 n/a n/a n/a n/a
Investment Income Ratio * 1.41% n/a n/a n/a n/a
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations January 16, 2007.
(b) Commencement of operations December 3, 2007.
(c) Commencement of operations March 31, 2008.
(d) Commencement of operations October 6, 2008.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
[Enlarge/Download Table]
JNL/S&P
JNL/S&P JNL/S&P JNL/S&P Growth
Disciplined Disciplined Dividend Income Retirement JNL/S&P
Moderate Moderate & Growth Strategy Intrinsic Value
Portfolio(b) Growth Portfolio(b) Portfolio(c) Portfolio(c) Portfolio(c)
------------ ------------------- --------------- ------------ ---------------
Highest expense ratio
Period ended December
31, 2008
Unit Value $ 7.469150 $ 6.633553 $ 7.051872 $ 7.237268 $ 6.183952
Total Return * -28.46% -36.35% -26.05%*** -32.15% -27.31%***
Ratio of Expenses ** 2.57% 2.46% 2.46% 1.05% 2.645%
Period ended December
31, 2007
Unit Value $ 10.440480 $ 10.421913 $ 9.761266 $ 10.666225 $ 9.914769
Total Return * 3.32%*** 4.87%*** 0.21%*** -3.06%*** -0.85%***
Ratio of Expenses ** 2.57% 2.46% 1.96% 1.05% 1.82%
Period ended December
31, 2006
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of Expenses ** n/a n/a n/a n/a n/a
Period ended December
31, 2005
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of Expenses ** n/a n/a n/a n/a n/a
Period ended December
31, 2004
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of Expenses ** n/a n/a n/a n/a n/a
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio(a) Growth Portfolio Portfolio(a) Growth Portfolio
----------------- ------------ ---------------- ------------ ----------------
Highest expense ratio
Period ended December
31, 2008
Unit Value $ 7.992469 $ 9.378612 $ 8.244253 $ 9.103785 $ 8.831129
Total Return * -41.23% -16.23% -37.69% -23.61% -30.08%
Ratio of
Expenses ** 3.47% 2.92% 3.67% 3.06% 3.62%
Period ended December
31, 2007
Unit Value $ 13.600178 $ 11.196051 $ 13.230251 $ 11.918026 $ 12.630402
Total Return * 5.43% 3.22% 4.76% 4.47% 4.77%
Ratio of
Expenses ** 3.47% 2.92% 3.67% 3.06% 3.62%
Period ended December
31, 2006
Unit Value $ 12.900074 $ 10.846849 $ 12.628705 $ 11.408016 $ 12.055314
Total Return * 11.64% 4.75% 10.04% 7.07% 8.20%
Ratio of
Expenses ** 3.47% 2.92% 3.67% 3.06% 3.62%
Period ended December
31, 2005
Unit Value $ 11.555580 $ 10.354700 $ 11.476118 $ 10.654469 $ 11.142109
Total Return * 4.79% 0.75% 3.57% 3.87%*** 2.64%
Ratio of
Expenses ** 3.47% 2.92% 3.67% 3.06% 3.62%
Period ended December
31, 2004
Unit Value $ 11.027755 $ 10.277468 $ 11.080077 $ 10.466154 $ 10.855567
Total Return * 8.15%*** 1.21%*** 8.85%*** 1.87%*** 6.59%***
Ratio of
Expenses ** 3.47% 2.92% 3.67% 2.92% 3.62%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations October 4, 2004.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/S&P
JNL/S&P JNL/S&P JNL/S&P Growth
Disciplined Disciplined Dividend Income Retirement JNL/S&P
Moderate Moderate & Growth Strategy Intrinsic Value
Portfolio(b) Growth Portfolio(b) Portfolio(c) Portfolio(c) Portfolio(c)
------------ ------------------- --------------- ------------ ---------------
Lowest expense ratio
Period ended December
31, 2008
Unit Value $ 7.638164 $ 6.779177 $ 7.136553 $ 7.279869 $ 6.272336
Total Return * -27.58% -35.64% -26.92% -31.94% -35.26%***
Ratio of Expenses ** 1.35% 1.35% 1.35% 0.75% 1.35%
Period ended December
31, 2007
Unit Value $ 10.547354 $ 10.533148 $ 9.765851 $ 10.696869 $ 9.917962
Total Return * 3.22%*** 3.55%*** -0.51%*** 1.65%*** -0.82%***
Ratio of Expenses ** 1.35% 1.35% 1.35% 0.75% 1.40%
Period ended December
31, 2006
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of Expenses ** n/a n/a n/a n/a n/a
Period ended December
31, 2005
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of Expenses ** n/a n/a n/a n/a n/a
Period ended December
31, 2004
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of Expenses ** n/a n/a n/a n/a n/a
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio(a) Growth Portfolio Portfolio(a) Growth Portfolio
---------------- ------------ ---------------- ------------ ----------------
Lowest expense ratio
Period ended December
31, 2008
Unit Value $ 10.145138 $ 10.066931 $ 10.690473 $ 9.830150 $ 11.389116
Total Return * -39.91% -14.82% -36.16% -22.22% -28.40%
Ratio of
Expenses ** 1.25% 1.25% 1.25% 1.25% 1.25%
Period ended December
31, 2007
Unit Value $ 16.884180 $ 11.818709 $ 16.745691 $ 12.638090 $ 15.907343
Total Return * 7.81% 3.07%*** 7.34% 6.39% 7.30%
Ratio of
Expenses ** 1.25% 1.25% 1.25% 1.25% 1.25%
Period ended December
31, 2006
Unit Value $ 15.661481 $ 11.234342 $ 15.600037 $ 11.879071 $ 14.825502
Total Return * 14.13% 6.41% 12.73% 9.02% 10.78%
Ratio of
Expenses ** 1.25% 1.35% 1.25% 1.25% 1.25%
Period ended December
31, 2005
Unit Value $ 13.721991 $ 10.558004 $ 13.838200 $ 10.895956 $ 13.382377
Total Return * 7.13% 2.34% 6.10% 2.13%*** 5.09%
Ratio of
Expenses ** 1.25% 1.35% 1.25% 1.25% 1.25%
Period ended December
31, 2004
Unit Value $ 12.808455 $ 10.316431 $ 13.042053 $ 10.505783 $ 12.733662
Total Return * 11.22% 2.75% 10.03% 1.80%*** 8.21%
Ratio of
Expenses ** 1.25% 1.35% 1.25% 1.35% 1.25%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations October 4, 2004.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/S&P JNL/S&P JNL/S&P
JNL/S&P Disciplined Dividend Income Growth JNL/S&P
Disciplined Moderate & Growth Retirement Intrinsic Value
Moderate Portfolio(b) Growth Portfolio(b) Portfolio(c) Strategy Portfolio(c) Portfolio(c)
--------------------- ------------------- ---------------- ------------------ ---------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 2,187 $ 2,967 $ 1,234 $ 67 $ 214
Units Outstanding (in
thousands) 288 440 173 9 34
Investment Income Ratio * 1.42% 1.45% 4.76% 2.65% 2.56%
Period ended December 31, 2007
Net Assets (in thousands) $ 980 $ 1,785 $ 124 $ 348 $ --
Units Outstanding (in
thousands) 93 170 13 33 --
Investment Income Ratio * 0.00% 0.00% 0.08% 3.24% 0.00%
Period ended December 31, 2006
Net Assets (in thousands) n/a n/a n/a n/a n/a
Units Outstanding (in
thousands) n/a n/a n/a n/a n/a
Investment Income Ratio * n/a n/a n/a n/a n/a
Period ended December 31, 2005
Net Assets (in thousands) n/a n/a n/a n/a n/a
Units Outstanding (in
thousands) n/a n/a n/a n/a n/a
Investment Income Ratio * n/a n/a n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) n/a n/a n/a n/a n/a
Units Outstanding (in
thousands) n/a n/a n/a n/a n/a
Investment Income Ratio * n/a n/a n/a n/a n/a
JNL/ JNL/ JNL/ JNL/
S&P Managed S&P Managed JNL/ S&P Managed S&P Managed
Aggressive Conservative S&P Managed Moderate Moderate
Growth Portfolio Portfolio(a) Growth Portfolio Portfolio(a) Growth Portfolio
---------------- ------------ ---------------- ------------ ----------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 35,527 $ 29,567 $ 63,433 $ 43,694 $ 75,924
Units Outstanding (in
thousands) 3,829 2,996 6,345 4,548 7,111
Investment Income Ratio * 0.37% 4.28% 0.53% 3.86% 2.22%
Period ended December 31, 2007
Net Assets (in thousands) $ 67,327 $ 21,481 $ 108,086 $ 42,577 $ 113,848
Units Outstanding (in
thousands) 4,383 1,848 6,946 3,436 7,642
Investment Income Ratio * 1.89% 3.54% 1.72% 3.07% 2.20%
Period ended December 31, 2006
Net Assets (in thousands) $ 66,027 $ 9,825 $ 93,895 $ 27,779 $ 92,695
Units Outstanding (in
thousands) 4,649 884 6,481 2,375 6,675
Investment Income Ratio * 0.09% 0.17% 0.11% 0.20% 0.14%
Period ended December 31, 2005
Net Assets (in thousands) $ 63,956 $ 6,205 $ 73,034 $ 16,238 $ 64,507
Units Outstanding (in
thousands) 5,166 592 5,715 1,506 5,167
Investment Income Ratio * 0.78% 0.46% 1.27% 0.30% 2.07%
Period ended December 31, 2004
Net Assets (in thousands) $ 62,568 $ 1,200 $ 60,447 $ 1,936 $ 37,844
Units Outstanding (in
thousands) 5,414 116 5,037 185 3,187
Investment Income Ratio * 0.29% 0.00% 0.68% 0.00% 1.18%
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations October 4, 2004.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate JNL/S&P JNL/S&P JNL/S&P
Retirement Retirement Retirement 2015 Retirement 2020 Retirement 2025
Strategy Portfolio(b) Strategy Portfolio(b) Portfolio(a) Portfolio(a) Portfolio(a)
--------------------- --------------------- --------------- --------------- ---------------
Highest expense ratio
Period ended December
31, 2008
Unit Value n/a n/a $ 7.700790 $ 7.643519 $ 7.462088
Total Return * n/a n/a -32.13% -34.67% -36.99%
Ratio of
Expenses ** n/a n/a 2.92% 2.07% 2.07%
Period ended December
31, 2007
Unit Value n/a n/a $ 11.346282 $ 11.700428 $ 11.843069
Total Return * n/a n/a 6.04% 7.21% 7.84%
Ratio of
Expenses ** n/a n/a 2.92% 2.07% 2.07%
Period ended December
31, 2006
Unit Value n/a n/a $ 10.699744 $ 10.913562 $ 10.982351
Total Return * n/a n/a 6.74%*** 4.08%*** 1.57%***
Ratio of
Expenses ** n/a n/a 2.92% 2.07% 2.07%
Period ended December
31, 2005
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of
Expenses ** n/a n/a n/a n/a n/a
Period ended December
31, 2004
Unit Value n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of
Expenses ** n/a n/a n/a n/a n/a
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio(a) Portfolio(c) Portfolio Portfolio Portfolio
-------------- ------------ ----------- ------------ ------------
Highest expense ratio
Period ended December
31, 2008
Unit Value $ 8.711504 $ 6.311926 $ 17.137028 $ 10.598972 $ 12.723152
Total Return * -20.22% -34.62%*** -23.30% -0.89% -35.72%
Ratio of
Expenses ** 2.57% 2.46% 3.30% 3.06% 3.62%
Period ended December
31, 2007
Unit Value $ 10.919812 $ 10.060337 $ 22.342118 $ 10.693817 $ 19.791966
Total Return * 3.41%*** 0.60%*** 3.99% 1.57% 3.99%
Ratio of
Expenses ** 2.57% 1.82% 3.30% 3.06% 3.62%
Period ended December
31, 2006
Unit Value $ 10.506277 n/a $ 21.485865 $ 10.528457 $ 19.031960
Total Return * 3.79%*** n/a 9.98% 1.37% 16.63%
Ratio of
Expenses ** 2.32% n/a 3.30% 3.06% 3.62%
Period ended December
31, 2005
Unit Value n/a n/a $ 19.537009 $ 10.385847 $ 16.317798
Total Return * n/a n/a 1.89% 0.11%*** 4.32%
Ratio of
Expenses ** n/a n/a 3.30% 3.06% 3.62%
Period ended December
31, 2004
Unit Value n/a n/a $ 19.174464 $ 10.845774 $ 15.642396
Total Return * n/a n/a 6.33%*** -0.50%*** 8.66%***
Ratio of
Expenses ** n/a n/a 3.30% 2.65% 3.62%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations January 17, 2006.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate JNL/S&P JNL/S&P JNL/S&P
Retirement Retirement Retirement 2015 Retirement 2020 Retirement 2025
Strategy Portfolio(b) Strategy Portfolio(b) Portfolio(a) Portfolio(a) Portfolio(a)
--------------------- -------------------- ---------------- --------------- -----------------
Lowest ex pense ratio
Period en ded December
31, 20 08
Unit V alue n/a n/a $ 8.066133 $ 7.808056 $ 7.622519
Total Return * n/a n/a -31.06% -32.49%*** -36.54%
Ratio of
Exp enses ** n/a n/a 1.35% 1.35% 1.35%
Period en ded December
31, 20 07
Unit V alue n/a n/a $ 11.699430 $ 11.854760 $ 12.010938
Total Return * n/a n/a 7.73% 7.93% 8.62%
Ratio of
Exp enses ** n/a n/a 1.35% 1.40% 1.35%
Period en ded December
31, 20 06
Unit V alue n/a n/a $ 10.860120 $ 10.983277 $ 11.057641
Total Return * n/a n/a 10.50%*** 9.83%*** 6.02%***
Ratio of
Exp enses ** n/a n/a 1.35% 1.40% 1.35%
Period en ded December
31, 20 05
Unit V alue n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of
Exp enses ** n/a n/a n/a n/a n/a
Period en ded December
31, 20 04
Unit V alue n/a n/a n/a n/a n/a
Total Return * n/a n/a n/a n/a n/a
Ratio of
Exp enses ** n/a n/a n/a n/a n/a
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio(a) Portfolio(c) Portfolio Portfolio Portfolio
-------------- ------------ ----------- ------------ ------------
Lowest expense ratio
Period ended December
31, 2008
Unit Value $ 9.031105 $ 6.394459 $ 22.665125 $ 13.658998 $ 14.894958
Total Return * -19.24% -32.77%*** -21.71% 0.97% -34.07%
Ratio of
Expenses ** 1.35% 1.25% 1.25% 1.20% 1.10%
Period ended December
31, 2007
Unit Value $ 11.183142 $ 10.063580 $ 28.949650 $ 13.527246 $ 22.593750
Total Return * 5.47% 0.64%*** 6.15% 0.24%*** 6.66%
Ratio of
Expenses ** 1.35% 1.40% 1.25% 1.20% 1.10%
Period ended December
31, 2006
Unit Value $ 10.603426 n/a $ 27.272162 $ 12.999350 $ 21.182543
Total Return * 5.70%*** n/a 12.25% 3.24% 19.60%
Ratio of
Expenses ** 1.35% n/a 1.25% 1.25% 1.10%
Period ended December
31, 2005
Unit Value n/a n/a $ 24.296615 $ 12.591389 $ 17.710890
Total Return * n/a n/a 4.00% 1.44% 6.97%
Ratio of
Expenses ** n/a n/a 1.25% 1.25% 1.10%
Period ended December
31, 2004
Unit Value n/a n/a $ 23.363167 $ 12.413013 $ 16.556485
Total Return * n/a n/a 9.50% -0.47% 10.10%
Ratio of
Expenses ** n/a n/a 1.25% 1.25% 1.10%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
(a) Commencement of operations January 17, 2006.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/S&P JNL/S&P
Moderate Growth Moderate
Retirement Retirement JNL/S&P JNL/S&P JNL/S&P
Strategy Strategy Retirement 2015 Retirement 2020 Retirement 2025
Portfolio(b) Portfolio(b) Portfolio(a) Portfolio(a) Portfolio(a)
--------------- ------------ --------------- --------------- ---------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ -- $ -- $ 1,943 $ 951 $ 705
Units Outstanding (in thousands) -- -- 243 123 93
Investment Income Ratio * n/a n/a 1.12% 1.27% 1.47%
Period ended December 31, 2007
Net Assets (in thousands) n/a n/a $ 1,527 $ 1,179 $ 730
Units Outstanding (in thousands) n/a n/a 131 100 61
Investment Income Ratio * n/a n/a 0.60% 0.40% 0.51%
Period ended December 31, 2006
Net Assets (in thousands) n/a n/a $ 334 $ 252 $ 82
Units Outstanding (in thousands) n/a n/a 31 23 7
Investment Income Ratio * n/a n/a 0.00% 0.00% 0.00%
Period ended December 31, 2005
Net Assets (in thousands) n/a n/a n/a n/a n/a
Units Outstanding (in thousands) n/a n/a n/a n/a n/a
Investment Income Ratio * n/a n/a n/a n/a n/a
Period ended December 31, 2004
Net Assets (in thousands) n/a n/a n/a n/a n/a
Units Outstanding (in thousands) n/a n/a n/a n/a n/a
Investment Income Ratio * n/a n/a n/a n/a n/a
JNL/
S&P Retirement JNL/S&P JNL/Select JNL/Select JNL/
Income Total Yield Balanced Money Market Select Value
Portfolio(a) Portfolio(c) Portfolio Portfolio Portfolio
-------------- ------------ ---------- ------------ ------------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 3,030 $ 4,842 $ 15,324 $ 34,271 $ 8,649
Units Outstanding (in thousands) 338 762 774 2,740 607
Investment Income Ratio * 1.27% 4.10% 2.61% 2.12% 0.03%
Period ended December 31, 2007
Net Assets (in thousands) $ 3,669 $ - $ 17,515 $ 23,711 $ 13,501
Units Outstanding (in thousands) 330 - 724 1,916 621
Investment Income Ratio * 0.97% 0.00% 2.63% 4.63% 4.05%
Period ended December 31, 2006
Net Assets (in thousands) $ 1,560 n/a $ 13,152 $ 15,513 $ 7,631
Units Outstanding (in thousands) 147 n/a 614 1,309 372
Investment Income Ratio * 0.00% n/a 0.15% 0.41% 0.15%
Period ended December 31, 2005
Net Assets (in thousands) n/a n/a $ 11,920 $ 23,951 $ 4,249
Units Outstanding (in thousands) n/a n/a 659 2,129 246
Investment Income Ratio * n/a n/a 3.97% 2.68% 3.07%
Period ended December 31, 2004
Net Assets (in thousands) n/a n/a $ 10,923 $ 5,218 $ 3,446
Units Outstanding (in thousands) n/a n/a 655 469 212
Investment Income Ratio * n/a n/a 0.12% 0.90% 0.51%
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
(a) Commencement of operations January 17, 2006.
(b) Commencement of operations January 16, 2007.
(c) Commencement of operations December 3, 2007.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- -----------
Highest expense ratio
Period ended December 31, 2008
Unit Value $ 12.984192 $ 18.822510 $ 7.903368
Total Return * -45.09% -42.97% -42.57%
Ratio of Expenses ** 4.00% 4.00% 3.595%
Period ended December 31, 2007
Unit Value $ 23.645204 $ 33.007381 $ 13.761959
Total Return * 5.77% 12.60% -2.73%
Ratio of Expenses ** 4.00% 4.00% 3.595%
Period ended December 31, 2006
Unit Value $ 22.354247 $ 29.314299 $ 14.148551
Total Return * 9.25% 2.62% 15.79%
Ratio of Expenses ** 4.00% 4.00% 3.595%
Period ended December 31, 2005
Unit Value $ 20.461539 $ 28.566244 $ 12.218913
Total Return * 1.94% 9.63% 2.41%
Ratio of Expenses ** 4.00% 4.00% 3.595%
Period ended December 31, 2004
Unit Value $ 20.072064 $ 26.056234 $ 11.931595
Total Return * 9.98%*** 15.51%*** 9.03%***
Ratio of Expenses ** 4.00% 4.00% 3.595%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- -----------
Lowest expense ratio
Period ended December 31, 2008
Unit Value $ 19.283022 $ 27.953583 $ 9.811921
Total Return * -43.47% -41.30% -41.12%
Ratio of Expenses ** 1.10% 1.10% 1.10%
Period ended December 31, 2007
Unit Value $ 34.112058 $ 47.618487 $ 16.664255
Total Return * 8.90% 15.93% -0.26%
Ratio of Expenses ** 1.10% 1.10% 1.10%
Period ended December 31, 2006
Unit Value $ 31.322792 $ 41.075162 $ 16.707908
Total Return * 12.46% 5.63% 18.71%
Ratio of Expenses ** 1.10% 1.10% 1.10%
Period ended December 31, 2005
Unit Value $ 27.853371 $ 38.885926 $ 14.074598
Total Return * 4.93% 12.85% 4.99%
Ratio of Expenses ** 1.10% 1.10% 1.10%
Period ended December 31, 2004
Unit Value $ 26.544267 $ 34.457964 $ 13.405862
Total Return * 7.61% 11.96% 11.24%
Ratio of Expenses ** 1.10% 1.10% 1.10%
* Total return for period indicated, including changes in the value of the
underlying fund, and reflects deductions for all items included in the
expense ratio. The total return does not include any expenses assessed
through the redemption of units, inclusion of these expenses in the
calculation would result in a reduction in the total return presented.
Total return for portfolios with no investment activity at period end is
calculated based on the total return of the underlying mutual fund less
expenses that are charged directly to the separate account.
** Annualized contract expenses of the separate account, consisting primarily
of mortality and expense charges, for each period indicated. The ratios
include only those expenses that result in a direct reduction to unit
values. Charges made directly to contract owner accounts through the
redemption of units and expenses of the underlying funds are excluded.
*** Total return is calculated from the effective date through the end of the
reporting period. The effective date is the date when the optional benefit
in the variable account was elected by a contract owner.
JNLNY Separate Account I
Notes to Financial Statements (continued)
Note 6 - Financial Highlights (continued)
-----------------------------------------
[Enlarge/Download Table]
JNL/T.Rowe JNL/T.Rowe JNL/T.Rowe
Price Established Price Mid-Cap Price Value
Growth Portfolio Growth Portfolio Portfolio
----------------- ---------------- -----------
Portfolio data
Period ended December 31, 2008
Net Assets (in thousands) $ 20,911 $ 20,335 $ 17,289
Units Outstanding (in thousands) 1,395 868 1,856
Investment Income Ratio * 0.09% 0.00% 1.90%
Period ended December 31, 2007
Net Assets (in thousands) $ 37,429 $ 39,876 $ 31,075
Units Outstanding (in thousands) 1,503 1,025 1,965
Investment Income Ratio * 1.05% 1.76% 2.18%
Period ended December 31, 2006
Net Assets (in thousands) $ 24,645 $ 27,847 $ 28,660
Units Outstanding (in thousands) 1,060 893 1,804
Investment Income Ratio * 0.06% 0.11% 0.22%
Period ended December 31, 2005
Net Assets (in thousands) $ 18,904 $ 23,757 $ 21,334
Units Outstanding (in thousands) 1,006 875 1,593
Investment Income Ratio * 0.25% 0.33% 2.37%
Period ended December 31, 2004
Net Assets (in thousands) $ 11,067 $ 16,035 $ 13,899
Units Outstanding (in thousands) 700 770 1,094
Investment Income Ratio * 0.51% 0.00% 0.93%
* These amounts represent the dividends, excluding distributions of capital
gains, received by the portfolio from the underlying mutual fund divided
by the average net assets.
Independent Auditors' Report
The Board of Directors of Jackson National Life Insurance Company and Contract
Owners of JNLNY Separate Account I:
We have audited the accompanying statements of assets and liabilities of each of
the sub-accounts within JNLNY Separate Account I (Separate Account) as set forth
herein as of December 31, 2008, and the related statements of operations for the
year or period then ended, the statements of changes in net assets for each of
the years or periods in the two-year period then ended, and the financial
highlights for each of the years or periods in the five-year period then ended.
These financial statements and financial highlights are the responsibility of
the Separate Account's management. Our responsibility is to express an opinion
on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
investments owned at December 31, 2008, by correspondence with the transfer
agent of the underlying mutual funds. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
sub-account within JNLNY Separate Account I as set forth herein as of December
31, 2008, and the results of their operations for the year or period then ended,
the changes in their net assets for each of the years or periods in the two-year
period then ended, and the financial highlights for each of the years or periods
in the five-year period then ended, in conformity with U.S. generally accepted
accounting principles.
KPMG LLP
February 27, 2009
Jackson National Life Insurance [GRAPHIC OMITTED]
Company of New York
Financial Statements
December 31, 2008
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
INDEX TO FINANCIAL STATEMENTS
DECEMBER 31, 2008
--------------------------------------------------------------------------------
Report of Independent Registered Public Accounting Firm 1
Balance Sheets 2
Income Statements 3
Statements of Stockholder's Equity and Comprehensive Income 4
Statements of Cash Flows 5
Notes to Financial Statements 6
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholder of Jackson National Life Insurance
Company of New York:
We have audited the accompanying balance sheets of Jackson National Life
Insurance Company of New York as of December 31, 2008 and 2007, and the related
income statements and statements of stockholder's equity and comprehensive
income, and cash flows for each of the years in the three-year period ended
December 31, 2008. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining on a
test basis evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Jackson National Life Insurance
Company of New York as of December 31, 2008 and 2007, and the results of its
operations and its cash flows for each of the years in the three-year period
ended December 31, 2008 in conformity with U.S. generally accepted accounting
principles.
KPMG LLP
Chicago, Illinois
March 13, 2009
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF JACKSON NATIONAL LIFE INSURANCE COMPANY)
FINANCIAL STATEMENTS
[Enlarge/Download Table]
BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
-----------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
ASSETS 2008 2007
----------------- -----------------
----------------- -----------------
Investments:
Cash and short-term investments $ 159,609 $ 94,316
Investments available for sale, at fair value:
Fixed maturities (amortized cost: 2008, $1,246,621; 2007, $1,265,626)
1,106,688 1,256,802
Equities (cost: 2008, $4,084; 2007, $261)
3,596 404
Policy loans
143 118
----------------- -----------------
----------------- -----------------
Total investments
1,270,036 1,351,640
Accrued investment income
14,763 15,790
Deferred acquisition costs
251,829 154,559
Deferred sales inducements
19,834 17,140
Reinsurance recoverable
84,675 1,014
Income taxes receivable from Parent
101,974 -
Receivable from Parent
- 394
Other assets
655 17,637
Separate account assets
1,161,399 1,678,606
----------------- -----------------
----------------- -----------------
Total assets $ 2,905,165 $ 3,236,780
================= =================
================= =================
LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES
Policy reserves and liabilities:
Reserves for future policy benefits and claims payable $ 98,675 $ 21,581
Deposits on investment contracts
1,294,024 1,280,234
Securities lending payable
6,181 9,789
Deferred income taxes
21,419 12,645
Income taxes payable to Parent
- 1,112
Payable to Parent
47,390 -
Other liabilities
15,237 12,156
Separate account liabilities
1,161,399 1,678,606
----------------- -----------------
----------------- -----------------
Total liabilities
2,644,325 3,016,123
----------------- -----------------
----------------- -----------------
STOCKHOLDER'S EQUITY
Common stock, $1,000 par value; 2,000 shares
authorized, issued and outstanding
2,000 2,000
Additional paid-in capital
181,000 141,000
Accumulated other comprehensive income (loss), net
of tax of $(20,381) in 2008 and $(1,547) in 2007
(38,037) (2,872)
Retained earnings
115,877 80,529
----------------- -----------------
----------------- -----------------
Total stockholder's equity
260,840 220,657
----------------- -----------------
----------------- -----------------
Total liabilities and stockholder's equity $ 2,905,165 $ 3,236,780
================= =================
================= =================
-----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
[Enlarge/Download Table]
INCOME STATEMENTS
(IN THOUSANDS)
-----------------------------------------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
2008 2007 2006
---------------- --------------- ---------------
---------------- --------------- ---------------
Revenues
Premiums, net of reinsurance $ (47,806) $ (650) $ (580)
Net investment income
78,535 83,389 87,093
Net realized gains (losses) on investments
(39,391) (2,532) 81
Fee income
36,689 34,841 23,556
Other income
(853) 87 170
---------------- --------------- ---------------
---------------- --------------- ---------------
Total revenues
27,174 115,135 110,320
---------------- --------------- ---------------
---------------- --------------- ---------------
BENEFITS AND EXPENSES
Policyholder benefits
4,600 4,587 5,081
Interest credited on deposit liabilities
44,898 45,780 47,865
Change in reserves, net of reinsurance recoverables
856 4,613 (147)
Commissions
31,291 37,546 31,722
General and administrative expenses
6,804 8,775 6,324
Taxes, licenses and fees
953 548 762
Deferral of acquisition costs
(29,646) (34,456) (31,102)
Deferral of sales inducements
(3,029) (4,294) (3,994)
Amortization of deferred acquisition costs:
Attributable to operations
16,544 17,610 18,384
Attributable to net realized gains (losses) on investments
(13,482) (834) 27
Amortization of deferred sales inducements:
Attributable to operations
2,067 4,683 4,139
Attributable to net realized gains (losses) on investments
5,530 (154) 5
---------------- --------------- ---------------
---------------- --------------- ---------------
Total benefits and expenses
67,386 84,404 79,066
---------------- --------------- ---------------
---------------- --------------- ---------------
Pretax income (loss)
(40,212) 30,731 31,254
Income tax expense (benefit)
(75,560) 7,642 10,309
---------------- --------------- ---------------
---------------- --------------- ---------------
NET INCOME (LOSS) $ 35,348 $ 23,089 $ 20,945
================ =============== ===============
================ =============== ===============
-----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
[Enlarge/Download Table]
STATEMENTS OF STOCKHOLDER'S EQUITY AND COMPREHENSIVE INCOME
(IN THOUSANDS)
-----------------------------------------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
2008 2007 2006
--------------- --------------- ---------------
--------------- --------------- ---------------
COMMON STOCK
Beginning and end of year $ 2,000 $ 2,000 $ 2,000
--------------- --------------- ---------------
--------------- --------------- ---------------
ADDITIONAL PAID-IN CAPITAL
Beginning of year 141,000 141,000 141,000
Capital contributions 40,000 - -
--------------- --------------- ---------------
--------------- --------------- ---------------
End of year 181,000 141,000 141,000
--------------- --------------- ---------------
--------------- --------------- ---------------
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Beginning of year (2,872) 3,153 6,733
Net unrealized investment losses, net of
reclassification adjustment and net of tax (35,165) (6,025) (3,580)
--------------- --------------- ---------------
--------------- --------------- ---------------
End of year (38,037) (2,872) 3,153
--------------- --------------- ---------------
--------------- --------------- ---------------
RETAINED EARNINGS
Beginning of year 80,529 57,440 36,495
Net income (loss) 35,348 23,089 20,945
--------------- --------------- ---------------
--------------- --------------- ---------------
End of year 115,877 80,529 57,440
--------------- --------------- ---------------
--------------- --------------- ---------------
TOTAL STOCKHOLDER'S EQUITY $ 260,840 $ 220,657 $ 203,593
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[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
2008 2007 2006
--------------- --------------- ---------------
--------------- --------------- ---------------
Net income (loss) $ 35,348 $ 23,089 $ 20,945
Net unrealized holding losses arising during
the period, net of tax of $(26,045) in 2008;
$(3,221) in 2007 and $(1,671) in 2006 (48,901) (5,979) (3,105)
Reclassification adjustment for losses (gains) included
in net income, net of tax of $7,398 in 2008;
$(24) in 2007 and $(256) in 2006 13,736 (46) (475)
--------------- --------------- ---------------
--------------- --------------- ---------------
COMPREHENSIVE INCOME (LOSS) $ 183 $ 17,064 $ 17,365
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See accompanying notes to financial statements.
[Enlarge/Download Table]
STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
-------------------------------------------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
2008 2007 2006
---------------- --------------- ---------------
---------------- --------------- ---------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 35,348 $ 23,089 $ 20,945
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Net realized (gains) losses on investments 39,391 2,532 (81)
Unrealized (gains) losses on trading portfolio - 60 (60)
Interest credited on deposit liabilities 44,898 45,780 47,865
Amortization of discount and premium on investments 785 2,023 2,515
Deferred income tax provision 27,419 3,808 5,018
Change in:
Accrued investment income 1,027 2,931 1,017
Deferred sales inducements and acquisition costs (22,016) (17,022) (12,561)
Trading portfolio activity, net - 1,000 (1,000)
Income taxes (receivable) payable to Parent (103,086) 2,221 1,283
Claims payable (7,132) 305 4,741
Receivable from (payable to) Parent 47,784 (253) (141)
Other assets and liabilities, net 19,134 (15,478) 5,625
---------------- --------------- ---------------
---------------- --------------- ---------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 83,552 50,996 75,166
---------------- --------------- ---------------
---------------- --------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Fixed maturities and equities available for sale:
Sales 226,750 173,585 143,627
Principal repayments, maturities, calls
and redemptions 57,082 125,404 111,799
Purchases (308,825) (135,718) (238,834)
Other investing activities (3,633) 6,316 (9,828)
---------------- --------------- ---------------
---------------- --------------- ---------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (28,626) 169,587 6,764
---------------- --------------- ---------------
---------------- --------------- ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits 458,829 558,201 451,770
Withdrawals (357,034) (285,415) (234,139)
Net transfers to separate accounts (131,428) (409,647) (312,509)
Capital contribution 40,000 - -
---------------- --------------- ---------------
---------------- --------------- ---------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 10,367 (136,861) (94,878)
---------------- --------------- ---------------
---------------- --------------- ---------------
NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
INVESTMENTS 65,293 83,722 (12,948)
CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF YEAR 94,316 10,594 23,542
---------------- --------------- ---------------
---------------- --------------- ---------------
CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 159,609 $ 94,316 $ 10,594
================ =============== ===============
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See accompanying notes to financial statements.
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF JACKSON NATIONAL LIFE INSURANCE COMPANY)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2008
--------------------------------------------------------------------------------
1. NATURE OF OPERATIONS
Jackson National Life Insurance Company of New York, (the "Company" or
"Jackson/NY") is wholly owned by Jackson National Life Insurance Company
("Jackson" or the "Parent"), a wholly owned subsidiary of Brooke Life
Insurance Company ("Brooke Life") which is ultimately a wholly owned
subsidiary of Prudential plc ("Prudential"), London, England. Jackson/NY is
licensed to sell group and individual annuity products (including immediate
annuities, deferred fixed annuities and variable annuities), guaranteed
investment contracts and individual life insurance products, including
variable universal life, in the states of New York, Delaware and Michigan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with
U.S. generally accepted accounting principles ("GAAP").
The preparation of the financial statements in conformity with GAAP
requires the use of estimates and assumptions about future events that
affect the amounts reported in the financial statements and the
accompanying notes. Significant estimates or assumptions, as further
discussed in the notes, include: 1) valuation of investments, including
fair values of securities deemed to be in an illiquid market and the
determination of when an unrealized loss is other-than-temporary; 2)
assumptions impacting future gross profits, including lapse and mortality
rates, expenses, investment returns and policy crediting rates, used in the
calculation of amortization of deferred acquisition costs and deferred
sales inducements; 3) assumptions used in calculating policy reserves and
liabilities, including lapse and mortality rates, expenses and investment
returns; 4) assumptions as to future earnings levels being sufficient to
realize deferred tax benefits; 5) estimates related to liabilities for
lawsuits and the liability for state guaranty fund assessments; and 6)
assumptions and estimates associated with the Company's tax positions which
impact the amount of recognized tax benefits recorded by the Company. These
estimates and assumptions are based on management's best estimates and
judgments. Management evaluates its estimates and assumptions on an ongoing
basis using historical experience and other factors deemed appropriate. As
facts and circumstances dictate, these estimates and assumptions may be
adjusted. Since future events and their effects cannot be determined with
precision, actual results could differ significantly from these estimates.
Changes in those estimates resulting from continuing changes in the
economic environment will be reflected in the financial statements for
those periods.
CHANGES IN ACCOUNTING PRINCIPLES
On January 1, 2008, the Company adopted Statement of Financial Accounting
Standards ("FAS") No. 159, "Fair Value Option for Financial Assets and
Financial Liabilities" ("FAS 159"), which was issued by the Financial
Accounting Standards Board ("FASB") in 2007. FAS 159 allows an entity to
make an irrevocable election, on specific election dates, to measure
eligible items at fair value, with changes in fair value recognized in the
income statement. Jackson/NY did not elect to measure any eligible items at
fair value and, as a result, adoption did not have an initial impact on the
Company's financial statements.
On January 1, 2008, the Company adopted FAS No. 157, "Fair Value
Measurements" ("FAS 157"), which was issued by the FASB in September 2006.
The Company also adopted the FAS 157 related FASB Staff Positions ("FSPs")
described below. For financial statement elements measured at fair value,
FAS 157 establishes a framework for measuring fair value under GAAP and
enhances disclosures about fair value measurements. FAS 157 defines fair
value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants
at the measurement date. Prior to FAS 157, the fair value of a liability
was often based on a settlement price concept, which assumed the liability
was extinguished. Under FAS 157, fair value is based on the amount that
would be paid to transfer a liability to a third party with the same credit
standing, thereby requiring that an issuer's credit standing be considered
when measuring a liability at fair value. FAS 157 also establishes a fair
value hierarchy that prioritizes the inputs to valuation techniques used to
measure fair value into three broad levels ("Level 1, 2, and 3").
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Company applied the provisions of FAS 157 prospectively to financial
assets and liabilities measured at fair value under existing GAAP. The
impact of adopting FAS 157 changed the valuation of the Company's embedded
derivatives, most significantly the valuation of embedded derivatives
associated with certain guarantees on variable annuity contracts. The
change in the valuation of embedded derivatives associated with the
variable annuity guarantees resulted from a change to implied volatility
with no reference to historical volatility levels. At January 1, 2008, the
impact of adopting FAS 157 was a charge of $4.2 million, which was
recognized as a change in estimate in the accompanying financial statements
where the changes were presented in the respective income statement
captions to which the item related. The Company's adoption of FAS 157 did
not materially impact the fair values of other financial instruments.
However, management expects that as a result of adoption, results for 2008
and future years are likely to be more volatile than amounts recorded in
prior years due to the potential variability in the relevant inputs. See
note 3 for additional information regarding FAS 157.
In February 2008, the FASB issued FSP FAS No. 157-1, "Application of FASB
Statement No. 157 to FASB Statement No. 13 and Other Accounting
Pronouncements That Address Fair Value Measurements for Purposes of Lease
Classification or Measurement under Statement 13" ("FSP FAS 157-1"). FSP
FAS 157-1 provides a scope exception from FAS 157 for the evaluation
criteria on lease classification and capital lease measurement under FAS
No. 13, "Accounting for Leases" and other related accounting
pronouncements. Due to the scope exception, the Company did not apply the
provisions of FAS 157 in determining the classification of and accounting
for leases. Accordingly, the adoption of FSP FAS 157-1 did not have an
impact on the Company's financial statements.
In February 2008, the FASB issued FSP FAS No. 157-2, "Effective Date of
FASB Statement No. 157" ("FSP FAS 157-2") which delays the effective date
of FAS 157 to fiscal years beginning after November 15, 2008 for certain
nonfinancial assets and liabilities. Examples of applicable nonfinancial
assets and liabilities to which FSP FAS 157-2 applies include, but are not
limited to, nonfinancial assets and liabilities initially measured at fair
value in a business combination that are not subsequently remeasured at
fair value and nonfinancial long-lived assets measured at fair value for
impairment assessment. As a result of the issuance of FSP FAS 157-2, the
Company did not apply the provisions of FAS 157 to the nonfinancial assets
and liabilities within the scope of FSP FAS 157-2 and does not expect such
application to have a significant impact on the Company's consolidated
financial statements.
In October 2008, the FASB issued FSP No. FAS 157-3, "Determining the Fair
Value of a Financial Asset When the Market for That Asset Is Not Active"
("FSP FAS 157-3"). This FSP clarifies the application of FAS 157 in a
market that is not active and provides an example to illustrate key
considerations in the determination of the fair value of a financial asset
when the market for that asset is not active. The key considerations
illustrated in FSP FAS 157-3 include the use of an entity's own assumptions
about future cash flows and appropriate risk-adjusted discount rates,
appropriate risk adjustments for nonperformance and liquidity risks, and
the reliance that an entity should place on quotes that do not reflect the
result of market transactions. FSP FAS 157-3 was preceded by a press
release that was jointly issued by the Office of the Chief Accountant of
the SEC and the FASB staff on September 30, 2008, which provided immediate
clarification on fair value accounting based on the measurement guidance of
FAS 157. FSP FAS 157-3 was effective upon issuance and did not have a
significant impact on the Company's financial statements.
In December 2008, the FASB issued FSP 140-4 and FIN 46(R)-8, "Disclosures
by Public Entities (Enterprises) about Transfers of Financial Assets and
Interests in Variable Interest Entities" ("FSP 140-4/FIN 46(R)-8"). This
staff position amends both FASB Statement No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities" and FASB Interpretation No. 46 (revised) "Consolidation of
Variable Interest Entities" ("FIN 46R") to require additional disclosures
beginning in financial statements for reporting periods ending after
December 15, 2008. Accordingly, any additional disclosures required by this
statement are included in the accompanying notes to financial statements.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In March 2008, the FASB issued FAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities, an amendment of FASB Statement No. 133"
("FAS 161"). FAS 161 amends and expands disclosures about an entity's
derivative and hedging activities with the intent of providing the users of
financial statements with an enhanced understanding of how and why an
entity uses derivative instruments, how derivative instruments and related
hedged items are accounted for under FAS 133 and its related
interpretations and how derivative instruments and related hedged items
affect an entity's financial position, financial performance and cash
flows. FAS 161 is effective for financial statements issued for fiscal
years and interim periods beginning after November 15, 2008, with early
application encouraged. The Company will incorporate the additional
disclosures required by FAS 161 in the 2009 financial statements.
In December 2007, the FASB issued FAS No. 160, "Noncontrolling Interests in
Consolidated Financial Statements - an amendment of ARB No. 51" ("FAS
160"). FAS 160 establishes accounting and reporting standards for
noncontrolling interests in a subsidiary. FAS 160 is effective for fiscal
years beginning on or after December 15, 2008. FAS 160 will not have a
significant effect on the Company's financial statements.
Effective January 1, 2007, the Company adopted FASB Interpretation No. 48,
"Accounting for Uncertainty in Income Taxes - An Interpretation of FASB
Statement No. 109" ("FIN 48"). FIN 48 clarifies the accounting for
uncertainty in income taxes recognized in a company's financial statements.
FIN 48 requires companies to determine whether it is "more likely than not"
that a tax position will be sustained upon examination by the appropriate
taxing authorities before any part of the benefit can be recorded in the
financial statements. It also provides guidance on the recognition,
measurement and classification of income tax uncertainties, along with any
related interest and penalties. Previously recorded income tax benefits
that no longer meet this standard are required to be charged to earnings in
the period that such determination is made. There was no change in the
liability for unrecognized tax benefits resulting from the implementation
of FIN 48 and, therefore, the Company did not recognize a cumulative effect
adjustment to the balance of retained earnings as of January 1, 2007. The
adoption did not have an initial impact on the Company's financial
statements. See note 8 for information on unrecognized tax benefits arising
subsequent to adoption.
Effective January 1, 2007, the Company adopted FAS No. 155, "Accounting for
Certain Hybrid Financial Instruments" ("FAS 155"). This statement allows
companies to include changes in fair value of certain hybrid financial
instruments in earnings on an instrument-by-instrument basis. Further
guidance issued in October 2006 provided an exemption from the provisions
of FAS 133 for certain financial instruments that would have otherwise been
required to recognize embedded derivatives arising as a result of
prepayment risk in certain structured securities. As a result, adoption of
FAS 155 did not have an initial impact on the Company's financial
statements.
In April 2006, the FASB issued FSP on Interpretation 46(R)-6, "Determining
the Variability to be Considered in Applying FASB Interpretation No. 46(R)"
("FIN 46(R)-6"). The FSP affects the identification of which entities are
Variable Interest Entities ("VIE") through a "by design" approach in
identifying and measuring the variable interests of the variable interest
entity and its primary beneficiary. The requirements became effective
beginning in the third quarter of 2006 and are to be applied to all new
variable interest entities. The new requirements did not need to be applied
to entities that were previously analyzed under FIN 46R unless a
reconsideration event occurs. The adoption of this guidance did not have an
initial impact on the Company's financial statements.
In September 2005, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued Statement of
Position 05-1, "Accounting by Insurance Enterprises for Deferred
Acquisition Costs in Connection with Modifications or Exchanges of
Insurance Contracts" ("SOP 05-1"). SOP 05-1 addresses the accounting for
deferred acquisition costs on internal replacements other than those
described in FAS No. 97, "Accounting and Reporting by Insurance Enterprises
for Certain Long-Duration Contracts and for Realized Gains and Losses from
the Sale of Investments." An internal replacement is defined by SOP 05-1 as
a modification in product benefits, features, rights or coverages that
occurs by (a) exchanging the contract for a new contract, (b) amending,
endorsing or attaching a rider to the contract, or (c) electing a feature
or coverage within a contract.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Contract modifications resulting in a substantially changed contract should
be accounted for as an extinguishment of the replaced contract, and any
unamortized deferred acquisition costs, unearned revenue and deferred sales
inducements must be written-off. SOP 05-1 was required to be applied
prospectively and was effective for internal replacements occurring in
fiscal years beginning after December 15, 2006. The adoption of SOP 05-1
did not have an initial impact on the Company's financial statements.
COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) includes all changes in stockholder's equity
(except those arising from transactions with owners/stockholders) and, in
the Company's case, includes net income and net unrealized gains or losses
on securities.
INVESTMENTS
Cash and short-term investments, which primarily include high quality,
non-asset-backed commercial paper and money market instruments, are carried
at amortized cost. These investments have original maturities of three
months or less and are considered cash equivalents for reporting cash
flows.
Fixed maturities consist primarily of bonds, asset-backed securities and
structured securities. Acquisition discounts and premiums on fixed
maturities are amortized into investment income through call or maturity
dates using the interest method. Asset-backed and structured securities are
amortized over the estimated redemption period. With regard to structured
securities that are considered to be other than high quality or otherwise
deemed to be high-risk, meaning the Company might not recover substantially
all of its recorded investment due to unanticipated prepayment events,
changes in investment yields due to changes in estimated future cash flows
are accounted for on a prospective basis. The carrying value of such
securities was $6.5 million and zero at December 31, 2008 and 2007,
respectively.
All fixed maturities are classified as available for sale and are carried
at fair value. For declines in fair value considered to be
other-than-temporary, the amortized cost basis of fixed maturities is
reduced to fair value through an impairment charge included in net realized
gains (losses) on investments. In determining whether an
other-than-temporary impairment has occurred, the Company considers a
number of factors, which are further detailed in note 4.
Equities, which include common stocks and non-redeemable preferred stocks,
are carried at fair value. Book value of equity securities are reduced to
fair value for declines in fair value considered to be
other-than-temporary. Any impairment charges are included in net realized
gains (losses) on investments.
Trading securities, which consisted of seed money that supported newly
established variable funds, were carried at fair value with changes in
value included in net investment income. There were no trading securities
held at December 31, 2008 or 2007. During 2006, $60 thousand of investment
income was recognized related to trading securities held at December 31,
2006.
Policy loans are carried at the unpaid principal balances.
Realized gains and losses on the sale of investments are recognized in
income at the date of sale and are determined using the specific cost
identification method.
The changes in unrealized gains and losses on investments classified as
available for sale, net of tax and the effect of the deferred acquisition
costs and deferred sales inducements adjustments, are excluded from net
income (loss) and included as a component of other comprehensive income
(loss) and stockholder's equity.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
EMBEDDED DERIVATIVES
Certain liabilities issued by the Company, primarily guarantees offered in
connection with variable annuities issued by the Company, contain embedded
derivatives as defined by FAS 133. The Company does not account for such
derivatives as either fair value or cash flow hedges as might be permitted
if specific hedging documentation requirements of FAS 133 were followed.
Financial derivatives, including derivatives embedded in certain host
liabilities that have been separated for accounting and financial reporting
purposes, are carried at fair value. The results from embedded derivative
movements are reported in change in reserves.
DEFERRED ACQUISITION COSTS
Certain costs of acquiring new business, principally commissions and
certain costs associated with policy issue and underwriting, which vary
with and are primarily related to the production of new business, have been
capitalized as deferred acquisition costs. Deferred acquisition costs are
increased by interest thereon and amortized in proportion to anticipated
premium revenues for traditional life policies and in proportion to
estimated gross profits for annuities and interest-sensitive life products.
Unamortized deferred acquisition costs are written off when a contract is
internally replaced and substantially changed, as defined in SOP 05-1. As
fixed maturities and equities available for sale are carried at fair value,
an adjustment is made to deferred acquisition costs equal to the change in
amortization that would have occurred if such securities had been sold at
their stated fair value and the proceeds reinvested at current yields. This
adjustment is included with the change in fair value of fixed maturities
and equities available for sale, net of applicable tax, that is credited or
charged directly to stockholder's equity and is a component of other
comprehensive income (loss). Deferred acquisition costs have been increased
by $74.2 million and $3.6 million at December 31, 2008 and 2007,
respectively, to reflect this adjustment.
DEFERRED SALES INDUCEMENTS
Bonus interest on single premium deferred annuities and contract
enhancements on variable annuities have been capitalized as deferred sales
inducements. Deferred sales inducements are increased by interest thereon
and amortized in proportion to estimated gross profits. Unamortized
deferred sales inducements are written off when a contract is internally
replaced and substantially changed, as defined in SOP 05-1. As fixed
maturities and equities available for sale are carried at fair value, an
adjustment is made to deferred sales inducements equal to the change in
amortization that would have occurred if such securities had been sold at
their stated fair value and the proceeds reinvested at current yields. This
adjustment is included with the change in fair value of fixed maturities
and equities available for sale, net of applicable tax, that is credited or
charged directly to stockholder's equity and is a component of other
comprehensive income (loss). Deferred sales inducements have been increased
by $8.0 million and $0.7 million at December 31, 2008 and 2007,
respectively, to reflect this adjustment.
FEDERAL INCOME TAXES
The Company files a consolidated federal income tax return with Jackson and
Brooke Life. The Company has entered into a written tax sharing agreement
which is generally based on separate return calculations. Intercompany
balances are settled on a quarterly basis. With few exceptions, the Company
is generally no longer subject to U.S. federal, state and local income tax
examinations by tax authorities for years prior to 2005.
Deferred federal income taxes arise from the recognition of temporary
differences between the basis of assets and liabilities determined for
financial reporting purposes and the basis determined for income tax
purposes. Such temporary differences are principally related to the effects
of recording certain invested assets at fair value, the deferral of policy
acquisition costs and the provisions for future policy benefits and
expenses. Deferred tax assets and liabilities are measured using the
enacted tax rates expected to be in effect when such benefits are realized.
Under GAAP, Jackson/NY periodically tests the value of deferred tax assets
for realizability. Deferred tax assets are reduced by a valuation allowance
if, based on the weight of available positive and negative evidence, it is
more likely than not that some portion, or all, of the deferred tax assets
will not be realized. In determining the need for a valuation allowance,
the Company considers the carryback capacity of losses, reversal of
existing temporary differences, estimated future taxable income and tax
planning strategies.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The determination of the valuation allowance for Jackson/NY's deferred tax
assets requires management to make certain judgments and assumptions
regarding future operations that are based on historical experience and
expectations of future performance. FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement recognition
and measurement of an income tax position taken or expected to be taken in
an income tax return and provides guidance on disclosure. Additionally,
this interpretation requires, in order to recognize a benefit in the
financial statements, that there must be a greater than 50 percent chance
of success with the relevant taxing authority with regard to that tax
position. Management's judgments are potentially subject to change given
the inherent uncertainty in predicting future performance, which is
impacted by such factors as policyholder behavior, competitor pricing and
specific industry and market conditions.
POLICY RESERVES AND LIABILITIES
RESERVES FOR FUTURE POLICY BENEFITS:
For traditional life insurance contracts, reserves for future policy
benefits are determined using the net level premium method and assumptions
as of the issue date as to mortality, interest, policy lapsation and
expenses plus provisions for adverse deviations. Mortality assumptions
range from 25% to 160% of the 1975-1980 Basic Select and Ultimate tables
depending on policy duration. Interest rate assumptions range from 4% to
7%. Lapse and expense assumptions are based on the Parent's experience.
DEPOSITS ON INVESTMENT CONTRACTS:
For the Company's interest-sensitive life contracts, liabilities
approximate the policyholder's account value. For deferred annuities and
the fixed option on variable annuity contracts, the liability is the
policyholder's account value.
SEPARATE ACCOUNT ASSETS AND LIABILITIES
The assets and liabilities resulting from individual variable life and
annuity contracts, which aggregated $1,161.4 million and $1,678.6 million
at December 31, 2008 and 2007, respectively, are segregated in separate
accounts. The Company receives fees for assuming mortality and expense
risks and other administrative fees related to the issuance and maintenance
of the contracts. Such fees are recorded as earned and are included in fee
income.
REVENUE AND EXPENSE RECOGNITION
Premiums for traditional life insurance are reported as revenues when due.
Benefits, claims and expenses are associated with earned revenues in order
to recognize profit over the lives of the contracts. This association is
accomplished through provisions for future policy benefits and the deferral
and amortization of acquisition costs.
Deposits on interest-sensitive life products and investment contracts,
principally universal and variable universal life contracts and deferred
annuities, are treated as policyholder deposits and excluded from revenue.
Revenues consist primarily of investment income and charges assessed
against the policyholder's account value for mortality charges, surrenders
and administrative expenses. Fee income also includes revenues related to
asset management fees. Surrender benefits are treated as repayments of the
policyholder account. Annuity benefit payments are treated as reductions to
the policyholder account. Death benefits in excess of the policyholder
account are recognized as an expense when incurred. Expenses consist
primarily of the interest credited to the policyholder deposits.
Underwriting and other acquisition expenses are associated with gross
profit in order to recognize profit over the life of the business. This is
accomplished through deferral and amortization of acquisition costs and
sales inducements. Expenses not related to policy acquisition are
recognized as incurred.
Investment income is not accrued on securities in default and otherwise
where the collection is uncertain. Subsequent receipts of interest on such
securities are generally used to reduce the cost basis of the securities.
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF JACKSON NATIONAL LIFE INSURANCE COMPANY)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2008
--------------------------------------------------------------------------------
3. FAIR VALUE MEASUREMENTS
The following chart summarizes the fair value and carrying value of
Jackson/NY's financial instruments (in thousands). The basis for
determining the fair value of each instrument is also described below.
[Enlarge/Download Table]
DECEMBER 31, 2008 DECEMBER 31, 2007
---------------------------------------- ----------------------------------------
---------------------------------------- ----------------------------------------
CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE
---------------------------------------- ----------------------------------------
---------------------------------------- ----------------------------------------
ASSETS
Cash and short-term investments $ 159,609 $ 159,609 $ 94,316 $ 94,316
Fixed maturities 1,106,688 1,106,688 1,256,802 1,256,802
Equities 3,596 3,596 404 404
Policy loans 143 106 118 87
GMIB reinsurance recoverable (1) 14,868 14,868 - -
Separate account assets 1,161,399 1,161,399 1,678,606 1,678,606
LIABILITIES
Annuity reserves (2) $ 1,343,832 $ 1,177,412 $ 1,260,645 $ 993,115
Separate account liabilities 1,161,399 1,161,399 1,678,606 1,678,606
(1) - Reinsurance recoverable in 2008 represents the asset balance on the embedded derivative associated with the reinsurance of
Jackson NY's GMIB product. In 2007, this embedded derivative was a liability and was included in annuity reserves in this table.
(2) - Annuity reserves represent only the components of deposits on investment contracts that constitute financial instruments.
Non-financial instruments are not included in either the carrying value or fair value columns.
Fair value measurements are based upon observable and unobservable inputs.
Observable inputs reflect market data obtained from independent sources,
while unobservable inputs reflect the Company's view of market assumptions
in the absence of observable market information. Jackson/NY utilizes
valuation techniques that maximize the use of observable inputs and
minimize the use of unobservable inputs. FAS 157 requires all assets and
liabilities measured at fair value on a recurring basis to be classified
into one of the following categories:
Level 1 Observable inputs that reflect quoted prices for identical assets
or liabilities in active markets that the Company has the ability to
access at the measurement date. Level 1 securities include U.S.
Treasury securities and exchange traded equity and derivative
securities.
Level 2 Observable inputs, other than quoted prices included in Level 1,
for the asset or liability or prices for similar assets and
liabilities. Most debt securities and preferred stocks that are model
priced using observable inputs are classified within Level 2.
Level 3 Valuations that are derived from techniques in which one or more of
the significant inputs are unobservable (including assumptions about
risk). Level 3 securities include less liquid securities such as
highly structured or lower quality asset-backed securities. Embedded
derivative instruments that are valued using unobservable inputs are
also included in Level 3. Because Level 3 fair values, by their
nature, contain unobservable market inputs, considerable judgment may
be used to determine the Level 3 fair values. Level 3 fair values
represent the Company's best estimate of an amount that could be
realized in a current market exchange absent actual market exchanges.
In many situations, inputs used to measure the fair value of an asset or
liability may fall into different levels of the fair value hierarchy. In
these situations, the Company will determine the level in which the fair
value falls based upon the lowest level input that is significant to the
determination of the fair value. As a result, both observable and
unobservable inputs may be used in the determination of fair values that
the Company has classified within Level 3.
The Company determines the fair values of certain financial assets and
liabilities based on quoted market prices, where available. The Company
also determines fair value based on estimated future cash flows discounted
at the appropriate current market rate. As appropriate, fair values reflect
adjustments for counterparty credit quality, the Company's credit standing,
liquidity and risk margins on unobservable inputs.
3. FAIR VALUE MEASUREMENTS (CONTINUED)
Where quoted market prices are not available, fair value estimates are made
at a point in time, based on relevant market data, as well as the best
information about the individual financial instrument. Illiquid market
conditions have resulted in inactive markets for certain of the Company's
financial instruments. As a result, there is generally no or limited
observable market data for these assets and liabilities. Fair value
estimates for financial instruments deemed to be in an illiquid market are
based on judgments regarding current economic conditions, liquidity
discounts, currency, credit and interest rate risks, loss experience and
other factors. These fair values are estimates and involve considerable
uncertainty and variability as a result of the inputs selected and may
differ significantly from the values that would have been used had a ready
market existed, and the differences could be material. As a result, such
calculated fair value estimates may not be realizable in an immediate sale
or settlement of the instrument. In addition, changes in the underlying
assumptions used in the fair value measurement technique could
significantly effect these fair value estimates.
The following is a discussion of the methodologies used to determine fair
values of the financial instruments listed in the above table.
FIXED MATURITY AND EQUITY SECURITIES
The fair values for fixed maturity and equity securities are determined by
management using information available from independent pricing services,
broker-dealer quotes, or internally derived estimates. Priority is given to
publicly available prices from independent sources, when available.
Securities for which the independent pricing service does not provide a
quotation are either submitted to independent broker-dealers for prices or
priced internally. Typical inputs used by these three pricing methods
include, but are not limited to, reported trades, benchmark yields, credit
spreads, liquidity premiums, and/or estimated cash flows based on default
and prepayment assumptions.
As a result of typical trading volumes and the lack of quoted market prices
for most fixed maturities, independent pricing services will normally
derive the security prices through recently reported trades for identical
or similar securities, making adjustments through the reporting date based
upon available market observable information as outlined above. If there
are no recently reported trades, the independent pricing services and
brokers may use matrix or pricing model processes to develop a security
price where future cash flow expectations are developed based upon
collateral performance and discounted at relevant market rates.
Included in the pricing of asset-backed securities are estimates of the
rate of future prepayments of principal over the remaining life of the
securities. Such estimates are derived based on the characteristics of the
underlying structure and prepayment assumptions believed to be relevant for
the underlying collateral. Actual prepayment experience may vary from these
estimates.
Prices from independent pricing services are sometimes unavailable for
securities that are rarely traded or are traded only in privately
negotiated transactions. As a result, certain securities are priced using
broker-dealer quotes, which utilize inputs that may be difficult to
corroborate with observable market based data. Additionally, the majority
of these quotes are non-binding.
Internally derived estimates may be used to develop a fair value for
securities for which the Company is unable to obtain either a reliable
price from an independent pricing service or a suitable broker-dealer
quote. These estimates may incorporate Level 2 and Level 3 inputs and are
generally derived using discounted expected future cash flows, discounted
at market interest rates available from market sources based on the credit
quality and duration of the instrument to determine fair value. For
securities that may not be reliably priced using these internally developed
pricing models, a fair value may be estimated using indicative market
prices. These prices are indicative of an exit price, but the assumptions
used to establish the fair value may not be observable or corroborated by
market observable information, and, therefore, represent Level 3 inputs.
3. FAIR VALUE MEASUREMENTS (CONTINUED)
The Company performs a monthly analysis on the prices and credit spreads
received from third parties to ensure that the prices represent a
reasonable estimate of the fair value. This process involves quantitative
and qualitative analysis and is overseen by investment and accounting
professionals. Examples of procedures performed include, but are not
limited to, initial and on-going review of third party pricing service
methodologies, review of pricing statistics and trends, back testing recent
trades and monitoring of trading volumes. In addition, the Company
considers whether prices received from independent brokers represent a
reasonable estimate of fair value through the use of internal and external
cash flow models developed based on spreads and, when available, market
indices. As a result of this analysis, if the Company determines there is a
more appropriate fair value based upon the available market data, the price
received from the third party is adjusted accordingly. During 2008, the
Company determined that reliable market prices were no longer available on
certain securities. As a result, these securities are valued using internal
estimates at December 31, 2008. These securities are reflected as transfers
into Level 3 during 2008. At December 31, 2008, the related securities had
an amortized cost and fair value after adjustment of $249.2 million and
$220.5 million, respectively and were primarily asset-backed securities.
An internally developed model is used to price certain asset-backed
securities for which the Company is unable to obtain a reasonable price
from either a third party pricing service or an independent broker
quotation. The pricing model used by the Company begins with current spread
levels of similarly-rated securities to determine the market discount rate
for the security. Additional risk premiums for illiquidity and
non-performance are incorporated, if warranted, and included in the
discount rate. Cash flows, as estimated by the Company using
issuer-specific default statistics and prepayment assumptions are
discounted to determine an estimated fair value.
The Company reviewed the independent pricing services' valuation
methodologies and related inputs, and evaluated the various types of
securities in its investment portfolio to determine an appropriate FAS 157
fair value hierarchy level based upon trading activity and the
observability of market inputs. Based on the results of this evaluation,
each price was classified into Level 1, 2, or 3. Most prices provided by
independent pricing services are classified into Level 2 because the most
significant inputs used in pricing the securities are market observable.
Due to a general lack of transparency in the process that the brokers use
to develop prices, most valuations that are based on brokers' prices are
classified as Level 3. Some valuations may be classified as Level 2 if the
price can be corroborated. Matrix-priced securities, primarily consisting
of certain private placement debt, are also classified as Level 2 as values
are determined using observable market inputs.
POLICY LOANS
Fair values are determined using projected future cash flows discounted at
current market interest rates. Projected future cash flows include
assumptions regarding mortality and lapse expectations.
FAIR VALUES OF SEPARATE ACCOUNT ASSETS
Separate account assets are invested in mutual funds, which are categorized
as Level 1 assets.
ANNUITY RESERVES
Fair values for immediate annuities without mortality features, are derived
by discounting the future estimated cash flows using current market
interest rates for similar maturities. Fair values for deferred annuities
are determined using projected future cash flows discounted at the rate
that would be required to transfer the liability to a willing third party.
3. FAIR VALUE MEASUREMENTS (CONTINUED)
FAIR VALUES OF CERTAIN GUARANTEED BENEFITS
Variable annuity contracts issued by the Company offer various guaranteed
minimum death, withdrawal, income and accumulation benefits. Certain
benefits, primarily non-life contingent guaranteed minimum withdrawal
benefits ("GMWB") and the reinsured portion of the Company's guaranteed
minimum income benefits ("GMIB"), are accounted for under FAS 133.
Guaranteed benefits that do not meet the requirements of FAS 133 are
accounted for as insurance benefits under the American Institute of
Certified Public Accountants Statement of Position 03-1 ("SOP 03-1").
Non-life contingent GMWBs are recorded at fair value with changes in fair
value recorded in change in reserves. The fair value of the reserve is
based on the expectations of future fees and future benefits associated
with the benefit. At inception of the contract, the Company attributes to
the derivative a portion of total fees collected from the contract holder,
which are then held static in future valuations. Those fees, generally
referred to as the attributed fees, are set such that the present value of
the attributed fees is equal to the present value of future claims expected
to be paid for the benefit at the inception of the contract. In subsequent
valuations, both the present value of future benefits expected to be paid
and the present value of attributed fees expected to be collected are
revalued based on current market conditions and policyholder behavior
assumptions. The difference between each of the two components represents
the fair value of the embedded derivative.
Jackson/NY's GMIBs are reinsured through an unrelated party and, due to the
net settlement provisions of the reinsurance agreement, this contract meets
the definition of a freestanding derivative. Accordingly, the GMIB
reinsurance agreement is recorded at fair value on the Company's balance
sheets, with changes in fair value recorded in change in reserves.
Fair values for GMWB embedded derivatives as well as reinsured GMIB
derivatives, are calculated based upon internally developed models because
active, observable markets do not exist for those items. Prior to January
1, 2008, the Company used the guidance prescribed in FAS 133 and other
related accounting literature on fair value which represented the amount
for which a financial instrument could be exchanged in a current
transaction between knowledgeable, unrelated willing parties. However,
under that accounting literature, when an estimate of fair value was made
for liabilities where no market observable transactions existed for that
liability or similar liabilities, market risk margins were only included in
the valuation if the margin was identifiable, measurable and significant.
If a reliable estimate of market risk margins was not obtainable, the
present value of expected future cash flows under a risk neutral framework,
discounted at a risk-adjusted rate of interest, was deemed to be the best
available estimate of fair value in the circumstances.
Prior to January 1, 2008, fair value was calculated based on actuarial and
capital market assumptions related to projected cash flows, including
benefits and related contract charges, over the lives of the contracts,
incorporating expectations concerning policyholder behavior such as lapses,
fund selection, resets and withdrawal utilization. Because of the dynamic
and complex nature of these cash flows, best estimate assumptions and a
stochastic process involving the generation of thousands of scenarios that
assumed risk neutral returns consistent with swap rates and incorporating
implied volatility data and evaluations of historical volatilities for
various indices were used. Estimating these cash flows involved numerous
estimates and subjective judgments including those regarding expected
market rates of return, market volatility, correlations of market index
returns to funds, fund performance, discount rates, utilization of the
benefit by policyholders under varying conditions and policyholder
lapsation.
3. FAIR VALUE MEASUREMENTS (CONTINUED)
At each valuation date prior to January 1, 2008, the Company assumed
expected returns based on risk-adjusted spot rates as represented by the
LIBOR forward curve as of that date and market volatility as determined
with reference to implied volatility and evaluations of historical
volatilities for various indices. The risk-adjusted spot rates as
represented by the LIBOR spot curve as of the valuation date were used to
determine the present value of expected future cash flows produced in the
stochastic process. GMWB obligations are relatively new in the marketplace,
thus actual policyholder behavior experience is limited. As a result,
estimates of future policyholder behavior are subjective and based on both
internal and external data. As markets change, mature and evolve and actual
policyholder behavior emerges, management continually evaluates the
appropriateness of its assumptions for this component of the fair value
model.
Effective January 1, 2008, the FAS 157 basis fair value is calculated using
the methods previously described. However, as a result of adoption,
Jackson/NY now bases its volatility assumptions solely on implied market
volatility with no reference to historical volatility levels and explicitly
incorporates Jackson/NY's own credit risk in place of the risk-adjusted
rates referenced above. Volatility assumptions are now based on a weighting
of available market data on implied volatility for durations up to 10
years, at which point the projected volatility is held constant.
Additionally, non-performance risk is incorporated into the calculation
through the use of interest rates based on a AA corporate credit curve,
which approximates Jackson/NY's own credit risk. Other risk margins
required by FAS 157, particularly for market illiquidity and policyholder
behavior are also incorporated into the model through the use of explicitly
conservative assumptions. On a periodic basis, the Company validates the
resulting fair values based on comparisons to other models and market
movements.
The use of the models and assumptions described above requires a
significant amount of judgment. Management believes the aggregation of each
of these components results in an amount that the Company would be required
to transfer for a liability, or receive for an asset, to or from a willing
buyer or seller, if one existed, for those market participants to assume
the risks associated with the guaranteed benefits and the related
reinsurance. However, the ultimate settlement amount of the liability,
which is currently unknown, will likely be significantly different than the
FAS 157 fair value as the Company believes settlement will be based on our
best estimate assumptions rather than those best estimate assumptions plus
margins for risk.
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS
The following table presents the Company's assets and liabilities that are
carried at fair value by FAS 157 hierarchy levels, as of December 31, 2008
(in thousands):
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TOTAL LEVEL 1 LEVEL 2 LEVEL 3
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
ASSETS
Fixed maturities $ 1,106,688 $ 557 $ 885,118 $ 221,013
Equities 3,596 3,542 54 -
GMIB reinsurance recoverable 14,868 - - 14,868
Separate account assets (1) 1,161,399 1,161,399 - -
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Total $ 2,286,551 $ 1,165,498 $ 885,172 $ 235,881
===================================================================================
===================================================================================
LIABILITIES
GMWB reserves (2) $ 7,259 $ - $ - $ 7,259
===================================================================================
===================================================================================
(1) Pursuant to the conditions set forth in SOP 03-1, the value of the separate account liabilities is set equal to the value
of the separate account assets.
(2) GMWB reserves are presented net of reinsurance ceded to Jackson of $65.3 million to illustrate the net effect on
Jackson/NY's results.
3. FAIR VALUE MEASUREMENTS (CONTINUED)
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS USING
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) The table below provides a
rollforward from January 1, 2008 to December 31, 2008 for the financial
instruments for which significant unobservable inputs (Level 3) are used in
the fair value measurement on a recurring basis. Gains and losses in the
table below include changes in fair value due partly to observable and
unobservable factors. In addition, the Company utilizes derivative
instruments to manage the risk associated with certain assets and
liabilities. However, the derivative instruments hedging the relevant risks
may or may not be classified within the same fair value hierarchy level as
the associated assets and liabilities. Therefore, the impact of the
derivative instruments reported in Level 3 below may vary significantly
from the total income effect.
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TOTAL REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN
-------------------------------------------------------
-------------------------------------------------------
(IN THOUSANDS) FAIR VALUE AS NET INCOME OTHER PURCHASES, TRANSFERS IN FAIR VALUE AS OF
OF JANUARY 1, COMPREHENSIVE ISSUANCES AND AND/OR OUT OF DECEMBER 31, 2008
2008 INCOME SETTLEMENTS LEVEL 3
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--------------------------------------------------------------------------------------------------
ASSETS
Fixed maturities $ 72,520 (14,018) (15,244) (1,410) 179,165 $ 221,013
GMIB reinsurance recoverable 1,326 13,542 - - - 14,868
LIABILITIES
GMWB reserves $ 15,219 $ (7,960) $ - $ - $ - $ 7,259
The portion of gains and losses included in net income or other
comprehensive income attributable to the change in unrealized gains
(losses) related to financial statement instruments still held at December
31, 2008 are as follows (in thousands):
DECEMBER 31, 2008
-------------------------
ASSETS
Fixed maturities $ (15,170)
GMIB reinsurance recoverable 13,543
LIABILITIES
GMWB reserves $ 7,960
4. INVESTMENTS
Investments are comprised primarily of fixed-income securities, primarily
publicly traded industrial, utility and government bonds and asset-backed
securites. Asset-backed securities include mortgage-backed and other
structured securities. The Company generates the majority of its deposits
from interest-sensitive individual annuity contracts and life insurance
products on which it has committed to pay a declared rate of interest. The
Company's strategy of investing in fixed-income securities aims to ensure
matching of the asset yield with the interest-sensitive liabilities and to
earn a stable return on its investments.
4. INVESTMENTS (CONTINUED)
FIXED MATURITIES
The following table sets forth fixed maturity investments at December 31,
2008, classified by rating categories as assigned by nationally recognized
statistical rating organizations ("NRSRO"), the National Association of
Insurance Commissioners ("NAIC"), or if not rated by such organizations,
the Company's affiliated investment advisor. At December 31, 2008, the
carrying value of investments rated by the Company's affiliated investment
advisor totaled $5.2 million. For purposes of the table, if not otherwise
rated higher by a NRSRO, NAIC Class 1 investments are included in the A
rating, Class 2 in BBB, Class 3 in BB and Classes 4 through 6 in B and
below.
PERCENT OF TOTAL
FIXED MATURITIES
INVESTMENT RATING December 31, 2008
-------------------------
AAA 24.5%
AA 8.5%
A 27.2%
BBB 36.3%
-------------------------
Investment grade 96.5%
-------------------------
BB 2.7%
B and below 0.8%
-------------------------
Below investment grade 3.5%
-------------------------
Total fixed maturities 100.0%
=========================
The amortized cost and carrying value of fixed maturities in default that
were anticipated to be income producing when purchased were zero and $169
thousand, respectively, at December 31, 2008. The amortized cost and
carrying value of fixed maturities that have been non-income producing for
the 12 months preceding December 31, 2008 were zero and $169 thousand,
respectively, and for the 12 months preceding December 31, 2007 were zero
and $17 thousand, respectively.
The cost or amortized cost, gross unrealized gains and losses and fair
value of available for sale fixed maturities and equities are as follows
(in thousands):
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COST OR GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
DECEMBER 31, 2008 COST GAINS LOSSES VALUE
--------------- --------------- ---------------- ---------------
Fixed Maturities
U.S. Treasury securities $ 505 $ 51 $ - $ 556
Public utilities 107,596 645 6,340 101,901
Corporate securities 723,884 6,351 86,308 643,927
Asset-backed securities 414,636 3,321 57,653 360,304
--------------- --------------- ----------------
--------------- --------------- ---------------- ---------------
Total fixed maturities $ 1,246,621 $ 10,368 $ 150,301 $ 1,106,688
=============== =============== ================ ===============
Equities $ 4,084 $ 83 $ 571 $ 3,596
=============== =============== ================ ===============
4. INVESTMENTS (CONTINUED)
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COST OR GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
DECEMBER 31, 2007 COST GAINS LOSSES VALUE
--------------- --------------- ---------------- ---------------
Fixed Maturities
U.S. Treasury securities $ 507 $ 23 $ - $ 530
Public utilities 88,965 3,233 285 91,913
Corporate securities 798,128 16,305 15,217 799,216
Asset-backed securities 378,026 2,752 15,635 365,143
--------------- --------------- ----------------
--------------- --------------- ---------------- ---------------
Total fixed maturities $ 1,265,626 $ 22,313 $ 31,137 $ 1,256,802
=============== =============== ================ ===============
Equities $ 261 $ 147 $ 4 $ 404
=============== =============== ================ ===============
The amortized cost and fair value of fixed maturities at December 31, 2008,
by contractual maturity, are shown below (in thousands). Expected
maturities may differ from contractual maturities where securities can be
called or prepaid with or without early redemption penalties.
AMORTIZED FAIR
COST VALUE
--------------- ----------------
Due in 1 year or less $ 49,888 $ 47,423
Due after 1 year through 5 years
415,830 387,634
Due after 5 years through 10 years
314,942 268,696
Due after 10 years through 20 years
42,724 34,738
Due after 20 years
8,601 7,893
Asset-backed securities
414,636 360,304
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Total $ 1,246,621 $ 1,106,688
=============== ================
U.S. Treasury securities with a carrying value of $557 thousand and $530
thousand at December 31, 2008 and 2007, respectively, were on deposit with
the State of New York as required by state insurance law.
Asset-backed securities include investments in mortgage-backed securities
which are collateralized by residential mortgage loans are neither
explicitly nor implicitly guaranteed by U.S. government agencies
("non-agency mortgage-backed securities").
The Company's non-agency mortgage-backed securities include investments in
securities backed by prime, Alt-A, and subprime loans as follows (in
thousands):
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COST OR GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
DECEMBER 31, 2008 COST GAINS LOSSES VALUE
-------------- --------------- ---------------- ---------------
Prime $ 141,649 $ 2,014 $ 12,103 $ 131,560
Alt-A 45,202 386 5,019 40,569
Subprime 23,625 - 3,083 20,542
-------------- --------------- ----------------
-------------- --------------- ---------------- ---------------
Total non-agency RMBS $ 210,476 $ 2,400 $ 20,205 $ 192,671
============== =============== ================ ===============
4. INVESTMENTS (CONTINUED)
The Company defines its exposure to non-agency residential mortgage loans
as follows. Prime loan-backed securities are collateralized by mortgage
loans made to the highest rated borrowers. Alt-A loan-backed securities are
collateralized by mortgage loans made to borrowers who lack credit
documentation or necessary requirements to obtain prime borrower rates.
Subprime loan-backed securities are collateralized by mortgage loans made
to borrowers that have a FICO score of 680 or lower. 90.6% of the Company's
investments in Alt-A related mortgage-backed securities are rated
investment grade by at least one NRSRO. 100.0% of the Company's investments
in subprime related mortgage-backed securities are rated triple-A by at
least one NRSRO. In 2008, the Company recorded other-than-temporary
impairment charges of $3.1 million and $11.3 million, on securities backed
by prime and Alt-A, respectively. No other-than-temporary impairment
charges were recorded on securities backed by prime, Alt-A or subprime
loans during either 2007 or 2006.
Asset-backed securities also include investments in securities which are
collateralized by commercial mortgage loans ("CMBS"). The amortized cost
and fair value of the Company's investment in CMBS is $130.0 million and
$99.6 million, respectively, at December 31, 2008. 100.0% of these
investments are rated investment grade by at least one NRSRO. No
other-than-temporary impairment charges were recorded on CMBS during 2008,
2007 or 2006.
The fair value and the amount of gross unrealized losses in accumulated
other comprehensive income (loss) in stockholder's equity are as follows
(in thousands):
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LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
--------------------------- -------------------------- ---------------------------
--------------------------- -------------------------- ---------------------------
GROSS GROSS GROSS
UNREALIZED FAIR UNREALIZED FAIR UNREALIZED FAIR
DECEMBER 31, 2008 LOSSES VALUE LOSSES VALUE LOSSES VALUE
------------- ------------- ------------ ------------- ------------- -------------
------------- ------------- ------------ ------------- ------------- -------------
Fixed Maturities
U.S. Treasury securities $ - $ - $ - $ - $ - $ -
Public utilities 4,749 64,619 1,591 7,554 6,340 72,173
Corporate securities 47,422 380,982 38,886 116,131 86,308 497,113
Asset-backed securities 17,761 115,649 39,892 181,618 57,653 297,267
------------- ------------- ------------ ------------- ------------- -------------
------------- ------------- ------------ ------------- ------------- -------------
Subtotal - fixed maturities 69,932 561,250 80,369 305,303 150,301 866,553
Equities 571 1,749 - - 571 1,749
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Total temporarily impaired
securities $70,503 $ 562,999 $80,369 $ 305,303 $ 150,872 $ 868,302
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LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
--------------------------- -------------------------- ---------------------------
--------------------------- -------------------------- ---------------------------
GROSS GROSS GROSS
UNREALIZED FAIR UNREALIZED FAIR UNREALIZED FAIR
DECEMBER 31, 2007 LOSSES VALUE LOSSES VALUE LOSSES VALUE
------------- ------------- ------------ ------------- ------------- -------------
------------- ------------- ------------ ------------- ------------- -------------
Fixed Maturities
U.S. Treasury securities $ - $ - $ - $ - $ - $ -
Public utilities 20 5,652 265 9,835 285 15,487
Corporate securities 5,812 131,584 9,405 201,372 15,217 332,956
Asset-backed securities 8,234 133,759 7,401 73,700 15,635 207,459
------------- ------------- ------------ ------------- ------------- -------------
------------- ------------- ------------ ------------- ------------- -------------
Subtotal - fixed maturities
14,066 270,995 17,071 284,907 31,137 555,902
Equities 4 7 - - 4 7
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Total temporarily impaired
securities $ 14,070 $ 271,002 $ 17,071 $ 284,907 $ 31,141 $ 555,909
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4. INVESTMENTS (CONTINUED)
The Company periodically reviews its fixed maturities and equities on a
case-by-case basis to determine if any decline in fair value to below cost
or amortized cost is other-than-temporary. Factors considered in
determining whether a decline is other-than-temporary include the length of
time a security has been in an unrealized loss position, reasons for the
decline in value, expectations for the amount and timing of a recovery in
fair value and the Company's intent and ability to hold a security to
recovery in fair value. If it is determined that a decline in fair value of
an investment is temporary, the decline is recorded as an unrealized loss
in accumulated other comprehensive income (loss) in stockholder's equity.
If the decline is considered to be other-than-temporary, a realized loss is
recognized in the income statement.
Generally, securities with fair values that are less than 80% of amortized
cost and other securities the Company determines are underperforming or
potential problem securities are subject to regular review. To facilitate
the review, securities with significant declines in value, or where other
objective criteria evidencing credit deterioration have been met, are
included on a watch list. Among the criteria for securities to be included
on a watch list are: credit deterioration which has led to a significant
decline in value of the security; a significant covenant related to the
security has been breached; or an issuer has filed or indicated a
possibility of filing for bankruptcy, has missed or announced it intends to
miss a scheduled interest or principal payment, or has experienced a
specific material adverse change that may impair its creditworthiness.
In performing these reviews, the Company considers the relevant facts and
circumstances relating to each investment and must exercise considerable
judgment in determining whether a security is other-than-temporarily
impaired. Assessment factors include judgments about an obligor's current
and projected financial position, an issuer's current and projected ability
to service and repay its debt obligations, the existence of, and realizable
value of, any collateral backing obligations, the macro-economic and
micro-economic outlooks for specific industries and issuers. Assessing the
duration of asset-backed securities can also involve assumptions regarding
underlying collateral such as prepayment rates, default and recovery rates,
and third-party servicing capabilities.
Among the specific factors considered are whether the decline in fair value
results from a change in the credit quality of the security itself, or from
a downward movement in the market as a whole, the likelihood of recovering
the carrying value based on the near term prospects of the issuer and the
Company's ability and intent to hold the security until such a recovery may
occur. Unrealized losses that are considered to be primarily the result of
market conditions are usually determined to be temporary, e.g. minor
increases in interest rates, unusual market illiquidity or volatility or
industry-related events, and where the Company also believes there exists a
reasonable expectation for recovery in the near term and, furthermore, has
the intent and ability to hold the investment until maturity or the market
recovery. To the extent factors contributing to impairment losses
recognized affect other investments, such investments are also reviewed for
other-than-temporary impairment and losses are recorded when appropriate.
In addition to the review procedures described above, investments in
structured securities where market prices are depressed are subject to a
rigorous review of their future estimated cash flows, including expected
and stress case scenarios, to identify potential shortfalls in contractual
payments. Even in the case of severely depressed market values on
structured securities, the Company places significant importance on the
results of its cash flow testing and its ability and intent to hold these
securities until their fair values recover when reaching
other-than-temporary impairment conclusions with regard to these
securities. Impairment charges are generally recorded on structured
securities when the Company forecasts a contractual payment shortfall.
The Company applies the provisions of EITF Issue No. 99-20, "Recognition of
Interest Income and Impairment on Purchased and Retained Beneficial
Interests in Securitized Financial Assets" ("EITF 99-20") when evaluating
whether impairments on other than high quality asset-backed securities are
other-than-temporary. In general, the Company considers an asset-backed
security as other than high quality if it is not rated investment grade by
at least one NRSRO. The Company regularly updates estimates of cash flows
on impaired other than high quality asset-backed securities and, in
accordance with EITF 99-20, if there has been an adverse change, an
impairment charge is recorded in the income statement.
4. INVESTMENTS (CONTINUED)
In 2008, the impairment model described in EITF 99-20 was modified by FASB
Staff Position EITF 99-20-1 to make its impairment model more consistent
with FASB Statement No. 115, Accounting for Certain Investments in Debt and
Equity Securities. This modification eliminated EITF 99-20's exclusive
reliance on "market participant" estimates of future cash flows used in
determining whether there has been a probable adverse change when assessing
whether an other-than-temporary impairment has occurred. The Company has
applied this new guidance effective in the fourth quarter of 2008.
There are inherent uncertainties in assessing the fair values assigned to
the Company's investments and in determining whether a decline in fair
value is other-than-temporary. The Company's review of fair value involves
several criteria including economic conditions, credit loss experience,
other issuer-specific developments and future cash flows. These assessments
are based on the best available information at the time. Factors such as
market liquidity, the widening of bid/ask spreads and a change in the cash
flow assumptions can contribute to future price volatility. If actual
experience differs negatively from the assumptions and other considerations
used in the financial statements, unrealized losses currently in
accumulated other comprehensive income (loss) may be recognized in the
income statement in future periods.
The Company currently intends to hold available for sale securities with
unrealized losses not considered other-than-temporary until they mature or
recover in value. However, if the specific facts and circumstances
surrounding an individual security, or the outlook for its industry sector,
change, the Company may sell the security prior to its maturity or recovery
and realize a loss.
Based on ratings by NRSRO's, of the total carrying value for fixed
maturities in an unrealized loss position at December 31, 2008, 81.7% were
investment grade, 3.5% were below investment grade and 14.8% were not
rated. Unrealized losses from fixed maturities that were below investment
grade or not rated represented approximately 18.7% of the aggregate gross
unrealized losses on available for sale fixed maturities.
Corporate securities in an unrealized loss position were diversified across
industries. As of December 31, 2008, the industries representing the larger
unrealized losses included real estate (15.8% of fixed maturities gross
unrealized losses) and financial institutions and services (14.3%). The
largest unrealized loss related to a single corporate obligor was $2.7
million at December 31, 2008.
The amount of gross unrealized losses for fixed maturities in a loss
position by maturity date of the fixed maturities as of December 31, 2008
were as follows (in thousands):
-----------------------------------------------------------------------------
Less than one year $2,532
-----------------------------------------------------------------------------
One to five years 30,535
-----------------------------------------------------------------------------
Five to ten years 50,622
-----------------------------------------------------------------------------
More than ten years 8,959
-----------------------------------------------------------------------------
Asset-backed securities 57,653
-----------------------------------------------------------------------------
Total gross unrealized losses $ 150,301
--------------------------------------------------------------===============
SECURITIES LENDING
The Company has entered into a securities lending agreement with an agent
bank whereby blocks of securities are loaned to third parties, primarily
major brokerage firms. As of December 31, 2008 and 2007, the estimated fair
value of loaned securities was $6.1 million and $9.6 million, respectively.
The agreement requires a minimum of 102 percent of the fair value of the
loaned securities to be held as collateral, calculated on a daily basis. To
further minimize the credit risks related to this program, the financial
condition of counterparties is monitored on a regular basis. Cash
collateral received, in the amount of $6.2 million and $9.8 million at
December 31, 2008 and 2007, respectively, was invested by the agent bank
and included in cash and short-term investments. A securities lending
payable is included in liabilities for cash collateral received. Securities
lending transactions are used to generate income. Income and expenses
associated with these transactions are reported as net investment income.
5. INVESTMENT INCOME AND REALIZED GAINS AND LOSSES
All investment income for 2008, 2007 and 2006 is related to earnings on
short-term investments, fixed maturity securities, equities and trading
securities. Investment expenses totaled $1.0 million, $0.6 million and $0.7
million in 2008, 2007 and 2006, respectively.
Net realized gains (losses) on investments were as follows (in thousands):
YEARS ENDED DECEMBER 31,
2008 2007 2006
---------------- ---------------- ---------------
---------------- ---------------- ---------------
Sales of fixed maturities:
Gross gains $ 3,796 $ 3,177 $ 2,949
Gross losses (9,919) (3,826) (2,873)
Sales of equities:
Gross gains - - 5
Gross losses (1,008) - -
Impairment losses (32,260) (1,883) -
---------------- ---------------- ---------------
---------------- ---------------- ---------------
Total $(39,391) $(2,532) 81
================ ================ ===============
================ ================ ===============
6. CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS AND VARIABLE ANNUITY
GUARANTEES
The Company issues variable contracts through its separate accounts for
which investment income and investment gains and losses accrue directly to,
and investment risk is borne by, the contract holder (traditional variable
annuities). The Company also issues variable annuity and life contracts
through separate accounts where the Company contractually guarantees to the
contract holder (variable contracts with guarantees) either a) return of no
less than total deposits made to the contract adjusted for any partial
withdrawals, b) total deposits made to the contract adjusted for any
partial withdrawals plus a minimum return, or c) the highest contract value
on a specified anniversary date adjusted for any withdrawals following the
contract anniversary. These guarantees include benefits that are payable in
the event of death (GMDB), annuitization (GMIB) or at specified dates
during the accumulation period (GMWB).
The assets supporting the variable portion of both traditional variable
annuities and variable contracts with guarantees are carried at fair value
and reported as summary total separate account assets with an equivalent
summary total reported for separate account liabilities. Amounts assessed
against the contract holders for mortality, administrative, and other
services are included in revenue. Changes in liabilities for minimum
guarantees are included in increase in reserves, net of reinsurance in the
income statement. Separate account net investment income, net investment
gains and losses, and the related liability changes are offset within the
same line item in the income statements.
6. CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS AND VARIABLE ANNUITY
GUARANTEES (CONTINUED)
At December 31, 2008 and 2007, the Company had variable contracts with
guarantees, where net amount at risk ("NAR") OMITTED][GRAPHIC OMITTED] is
the amount of guaranteed benefit in excess of current account value, as
follows (dollars in millions):
[Enlarge/Download Table]
DECEMBER 31, 2008
Weighted Period until
Minimum Account Net Amount Average Expected
Return Value at Risk Attained Age Annuitization
------------ ----------- ------------ ------------- -------------
Return of net deposits plus a minimum return
GMDB 0% $ 651.4 $258.4 63.7 years
GMWB - Premium only 0% $ 229.2 $ 72.2
GMWB - For life 0-5% $ 39.7 $ 12.4
Highest specified anniversary account value
minus withdrawals post-anniversary
GMDB $509.5 $298.9 63.8 years
GMWB - Highest anniversary only $136.9 $ 89.6
GMWB - For life $ 61.4 $ 33.2
Combination net deposits plus minimum return, highest
specified anniversary account value minus
withdrawals post-anniversary
GMIB 0-6% $ 98.8 $ 62.1 6.2 years
GMWB - For life 0-5% $228.7 $117.7
[Enlarge/Download Table]
DECEMBER 31, 2007
Weighted Period until
Minimum Account Net Amount Average Expected
Return Value at Risk Attained Age Annuitization
------------ ----------- ------------ ------------- -------------
Return of net deposits plus a minimum return
GMDB 0-5% $ 879.8 $ 5.0 62.6 years
GMWB - Premium only 0-5% $ 375.4 $ 0.7
GMWB - For life 0-5% $ 65.6 $ -
Highest specified anniversary account value
minus withdrawals post-anniversary
GMDB $797.8 $ 62.9 63.2 years
GMWB - Highest anniversary only $217.5 $ 4.7
GMWB - For life $ 87.3 $ 1.5
Combination net deposits plus minimum return, highest
specified anniversary account value minus
withdrawals post-anniversary
GMIB 0-6% $139.3 $ 4.7 6.7 years
GMWB - For life 0-5% $194.8 $ 4.9
6. CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS AND VARIABLE ANNUITY
GUARANTEES (CONTINUED)
Account balances of contracts with guarantees were invested in variable
separate accounts as follows (in millions):
[Download Table]
DECEMBER 31,
----------------------------
----------------------------
FUND TYPE: 2008 2007
------------- -------------
------------- -------------
Equity $ 971.2 $ 1,486.9
Bond
100.3 98.1
Balanced
55.1 69.2
Money market
34.3 23.7
------------- -------------
------------- -------------
Total $ 1,160.9 $ 1,677.9
============= =============
============= =============
GMDB liabilities, before reinsurance, reflected in the general account are
as follows (in millions):
2008 2007 2006
--------- --------- ---------
Balance at January 1 $ 1.5 $ 0.8 $ 0.4
Incurred guaranteed benefits 12.3 1.3 1.8
Paid guaranteed benefits (3.0) (0.6) (1.4)
--------- --------- ---------
Balance at December 31 $ 10.8 $ 1.5 $ 0.8
========= ========= =========
Balance at December 31, net of reinsurance $ 10.8 $ 1.5 $ 0.8
========= ========= =========
The GMDB liability is determined at each period end by estimating the
expected value of death benefits in excess of the projected account balance
and recognizing the excess ratably over the accumulation period based on
total expected assessments. The Company regularly evaluates estimates used
and adjusts the additional liability balance, with a related charge or
credit to benefit expense, if actual experience or other evidence suggests
that earlier assumptions should be revised. In 2007, the Company lowered
lapse rate assumptions for policies with deep in-the-money GMDB benefits.
The following assumptions and methodology were used to determine the GMDB
liability at both December 31, 2008 and 2007 (except where noted):
1) Use of a series of deterministic investment performance scenarios.
2) Mean investment performance assumption of 8.4% after investment
management fees, but before investment advisory fees and mortality and
expense charges.
3) Mortality equal to 80.0% of the Annuity 2000 table.
4) Lapse rates varying by contract type, duration and degree the benefit
is in-the-money and ranging from 0.75% to 49.0%, with an average of
7.0% during the surrender charge period and 11.0% thereafter at
December 31, 2008 and from 0.75% to 50.0%, with an average of 6.0%
during the surrender charge period and 11.0% thereafter at December
31, 2007.
5) Discount rate of 8.4%.
Most GMWB reserves are considered to be derivatives under FAS 133 and are
recognized at fair value, with the change in fair value included in change
in reserves. The fair value of these liabilities is determined using
stochastic modeling and inputs as further described in note 3. The GMWB
reserve totaled $72.6 million at December 31, 2008 and was included in
reserves for future policy benefits. In 2007, the GMWB reserve was a
negative reserve included in other assets of $0.1 million at December 31,
2007.
Jackson/NY has also issued certain GMWB products that guarantee payments
over a lifetime. Reserves for these lifetime benefits are calculated as
required by SOP 03-1. At December 31, 2008 and 2007, these SOP 03-1
reserves totaled $2.4 million and $0.5 million, respectively.
6. CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS AND VARIABLE ANNUITY
GUARANTEES (CONTINUED)
The direct GMIB liability is determined at each period end by estimating
the expected value of the annuitization benefits in excess of the projected
account balance at the date of annuitization and recognizing the excess
ratably over the accumulation period based on total expected assessments.
The Company regularly evaluates estimates used and adjusts the additional
liability balance, with a related charge or credit to benefit expense, if
actual experience or other evidence suggests that earlier assumptions
should be revised. The assumptions used for calculating the direct GMIB
liability at December 31, 2008 and 2007, are consistent with those used for
calculating the GMDB liability. GMIB SOP 03-1 reserves totaled $0.3 million
at December 31, 2008 and were minimal at December 31, 2007.
7. REINSURANCE
The Company cedes reinsurance to unaffiliated insurance companies in order
to limit losses from large exposures; however, if the reinsurer is unable
to meet its obligations, the originating issuer of the coverage retains the
liability. The maximum amount of life insurance risk retained by the
Company on any one life is generally $500 thousand. Amounts not retained
are ceded to other companies on either a yearly renewable-term or a
coinsurance basis.
With the approval of the Insurance Commissioner of New York, Jackson/NY
cedes 90% of the guaranteed minimum withdrawal benefit associated with
variable annuities to its Parent. This agreement, which was entered into
during 2008, resulted in an initial gain to Jackson/NY of $939 thousand,
which was deferred and included in other liabilities in the accompanying
balance sheet. Premiums ceded for guaranteed minimum withdrawal benefits
included $47.1 million to Jackson in 2008.
The effect of reinsurance on premiums was as follows (in thousands):
YEARS ENDED DECEMBER 31,
2008 2007 2006
--------------------------------------------------------------------------------
Direct premiums $ 695 $ 714 $ 723
Less reinsurance ceded:
Life (573) (583) (636)
Guaranteed annuity benefits (47,928) (781) (667)
Net premiums $(47,806) $ (650) $ (580)
----------------------------================--================--================
----------------------------================--================--================
Components of the reinsurance recoverable asset were as follows (in
thousands):
DECEMBER 31,
2008 2007
-----------------------------------------------------------------------------
Ceded reserves $ 84,278 $ 874
Ceded claims liability 90 135
Ceded other 307 5
Total $ 84,675 $ 1,014
-----------------------------------------================--===================
-----------------------------------------================--===================
Reserves reinsured to Jackson totaled $67.5 million at December 31, 2008.
8. FEDERAL INCOME TAXES
The components of the provision for federal income taxes were as follows
(in thousands):
YEARS ENDED DECEMBER 31,
2008 2007 2006
------------- ---------------- ----------------
------------- ---------------- ----------------
Current tax expense (benefit) $ (102,979) $ 3,834 $ 5,291
Deferred tax expense 27,419 3,808 5,018
---------------- ---------------- -------------
Income tax expense (benefit) $ (75,560) $ 7,642 $10,309
================ ================ =============
================ ================ =============
The Company recognizes interest and penalties, if any, accrued related to
unrecognized tax benefits as a component of tax expense.
The federal income tax provisions differ from the amounts determined by
multiplying pretax income by the statutory federal income tax rate of 35%
for 2008, 2007 and 2006. During 2008, a difference arose related to the
ceding commission on reinsurance ceded to Jackson, which was categorized as
a capital contribution for statutory reporting purposes. As this difference
will not reverse through the income statement, it has been included as a
permanent difference in the table below. These differences from the tax at
the statutory rate are summarized as follows (in thousands):
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
2008 2007 2006
---------------- ---------------- ----------------
---------------- ---------------- ----------------
Income taxes at statutory rate $ (14,074) $ 10,756 $ 10,939
Dividends received deduction (2,021) (2,828) (630)
Ceding commission (68,075) - -
Deferred tax valuation allowance 8,400 - -
Other 210 (286) -
---------------- ---------------- ----------------
---------------- ---------------- ----------------
Provision for federal income taxes $(75,560) $ 7,642 $ 10,309
================ ================ ================
================ ================ ================
Effective tax rate 187.9% 24.9% 33.0%
================ ================ ================
================ ================ ================
Federal income taxes of $0.1 million, $1.6 million and $4.0 million were
paid to Jackson in 2008, 2007 and 2006, respectively. 7.
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF JACKSON NATIONAL LIFE INSURANCE COMPANY)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2008
--------------------------------------------------------------------------------
8. FEDERAL INCOME TAXES (CONTINUED)
The tax effects of significant temporary differences that give rise to
deferred tax assets and liabilities were as follows (in thousands):
[Enlarge/Download Table]
DECEMBER 31,
2008 2007
--------------- ----------------
--------------- ----------------
GROSS DEFERRED TAX ASSET
Difference between financial reporting and the tax basis of:
Policy reserves and other insurance items $ 14,531 $ 36,027
Other-than-temporary impairments and other investment related items 11,576 109
Net unrealized losses on available for sale securities 49,148 3,038
Other, net 778 844
--------------- ----------------
--------------- ----------------
Total gross deferred tax asset 76,033 40,018
--------------- ----------------
--------------- ----------------
Valuation allowance (8,587) -
--------------- ----------------
--------------- ----------------
Gross deferred tax asset, net of valuation allowance 67,446 40,018
--------------- ----------------
--------------- ----------------
GROSS DEFERRED TAX LIABILITY
Difference between financial reporting and the tax basis of:
Deferred acquisition costs and sales inducements (88,865) (52,663)
--------------- ----------------
--------------- ----------------
Total gross deferred tax liability (88,865) (52,663)
--------------- ----------------
--------------- ----------------
NET DEFERRED TAX LIABILITY $ (21,419) $ (12,645)
=============== ================
=============== ================
During 2008, Jackson/NY recorded a valuation allowance (included in
deferred tax expense) of $8.4 million against the deferred tax assets
associated with realized losses where management no longer believes that it
is more likely than not that the full tax benefit of the losses will be
realized. Jackson/NY also recorded a valuation allowance against the
deferred tax assets associated with certain equity securities in an
unrealized loss position for which recovery in value cannot be anticipated.
This valuation allowance, which was recorded in other comprehensive income,
totaled $187 thousand. Management will monitor these assets and, if the
circumstances which required the establishment of this allowance reverse in
the future, the valuation allowance may be reduced or eliminated.
Realization of Jackson's deferred tax assets is dependent on generating
sufficient taxable income. Although realization is not assured, management
believes that it is more likely than not that the results of future
operations and investment activity will generate sufficient taxable income
to realize the remaining gross deferred tax asset.
At December 31, 2008, the Company had no federal tax capital loss
carryforwards available for future use.
In August 2007, the Internal Revenue Service ("IRS") issued Revenue Ruling
2007-54 that would have changed accepted industry and IRS interpretations
of the statutes governing the computation of the Dividends Received
Deduction ("DRD") on separate account assets held in connection with
variable annuity and life contracts, but that ruling was suspended by
Revenue Ruling 2007-61. Revenue Ruling 2007-61 also announced the Treasury
Department's and the IRS' intention to issue regulations with respect to
certain computational aspects of the DRD on separate account assets held in
connection with variable contracts. Any regulations that the IRS ultimately
proposes for issuance in this area will be subject to public notice and
comment, at which time insurance companies and other interested parties
will have the opportunity to raise legal and practical questions about the
content, scope and application of such regulations. Although regulations
that represent a substantial change in an interpretation of the law are
generally given a prospective effective date, there is no assurance that
the change will not be retrospectively applied. As a result, depending on
the ultimate timing and substance of any such regulations, which are
unknown at this time, such future regulations could result in the
elimination of some or all of the separate account DRD tax benefit that the
Company receives. The Company recognized an income tax benefit related to
the separate account DRD of $1.8 million, $2.8 million and $0.6 million
during 2008, 2007 and 2006, respectively.
8. FEDERAL INCOME TAXES (CONTINUED)
During 2008, Jackson/NY established a reserve for an unrecognized tax
benefit as required by the provisions of FIN 48. The following table
summarizes the changes in the Company's unrecognized tax benefits,
including interest, for the year ended December 31, 2008 (in thousands).
There were no unrecognized tax benefits at December 31, 2007.
Unrecognized tax benefit at December 31, 2007 $ -
Additions for tax positions identified in 2008 1,637
Reduction of tax positions of closed prior years (368)
------------
Unrecognized tax benefit at December 31, 2008 $ 1,269
============
The Company has considered both permanent and temporary positions in
determining the unrecognized tax benefit rollforward. The total amount of
unrecognized benefits, if recognized, that would affect the effective tax
rate at December 31, 2008 is approximately $1.3 million.
Interest totaling $0.2 million related to these unrecognized tax benefits
has been included in income tax expense in the consolidated income
statement. The Company has not recorded any amounts for penalties related
to unrecognized tax benefits during 2008, 2007 or 2006.
Using the information available as of December 31, 2008, the Company
believes that, in the next 12 months, there are no positions for which it
is reasonably possible that the total amounts of unrecognized tax benefits
will significantly increase or decrease. In general, the Company is no
longer subject to United States federal, state or local income tax
examinations by taxing authorities for tax years that began before 2005.
9. CONTINGENCIES
Management believes that the Company is not involved in litigation that
would have a material adverse affect on the Company's financial condition
or results of operations.
10. STOCKHOLDER'S EQUITY
The declaration of dividends which can be paid by the Company is regulated
by New York insurance law. The Company must file a notice of its intention
to declare a dividend and the amount thereof with the superintendent at
least thirty days in advance of any proposed dividend declaration. No
dividends were paid to Jackson in 2008, 2007 or 2006. Jackson made a
capital contribution of $40.0 million to Jackson/NY in 2008.
Statutory capital and surplus of the Company, as reported in its Annual
Statement, was $94.7 million and $132.1 million at December 31, 2008 and
2007, respectively. Statutory net income (loss) of the Company, as reported
in its Annual Statement, was $(309.4) million, $(4.1) million and $3.4
million in 2008, 2007 and 2006, respectively.
11. OTHER RELATED PARTY TRANSACTIONS
The Company's investment portfolio is managed by PPM America, Inc. ("PPM"),
a registered investment advisor and ultimately a wholly owned subsidiary of
Prudential. The Company paid $487 thousand, $489 thousand and $517 thousand
to PPM for investment advisory services during 2008, 2007 and 2006,
respectively.
The Company has an administrative services agreement with Jackson, under
which Jackson provides certain administrative services. Administrative fees
were $4.2 million, $6.5 million and $4.2 million in 2008, 2007 and 2006,
respectively.
12. BENEFIT PLANS
The Company participates in a defined contribution retirement plan covering
substantially all employees, sponsored by its Parent. To be eligible to
participate in the Company's contribution, an employee must have attained
the age of 21, have completed at least 1,000 hours of service in a 12-month
period and passed their 12-month employment anniversary. In addition, the
employees must be employed on the applicable January 1 or July 1 entry
date. The Company's annual contributions, as declared by the board of
directors, are based on a percentage of eligible compensation paid to
participating employees during the year. In addition, the Company matches
up to 6 percent of a participant's elective contribution to the plan during
the year. The Company's expense related to this plan was $157 thousand,
$150 thousand and $100 thousand in 2008, 2007 and 2006, respectively.
The Company participates in a non-qualified voluntary deferred compensation
plan for certain employees, sponsored by its Parent. Additionally, the
Company sponsors a non-qualified voluntary deferred compensation plan for
certain agents, with the assets retained by Jackson under an administrative
services agreement. At December 31, 2008 and 2007, Jackson's liability for
the Company's portion of such plans totaled $1.9 million and $2.3 million,
respectively. Jackson invests general account assets in selected mutual
funds in amounts similar to participant elections as a hedge against
significant movement in the payout liability. There was no expense related
to these plans in 2008, 2007 or 2006.
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:
JNLNY Separate Account I
Report of Independent Registered Public Accounting
Firm
Statements of Assets and Liabilities as of
December 31, 2008
Statement of Operations for the period ended
December 31, 2008
Statement of Changes in Net Assets for the periods
ended December 31, 2008 and 2007
Notes to Financial Statements
Jackson National Life Insurance Company of New York
Report of Independent Registered Public Accounting
Firm
Balance Sheets for the years ended December 31,
2008 and 2007
Income Statements for the years ended December 31,
2008, 2007 and 2006
Statements of Stockholder's Equity and
Comprehensive Income for the years ended
December 31, 2008, 2007 and 2006
Statements of Cash Flows for the years ended
December 31, 2008, 2007 and 2006
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 on October 3,1997 (File Nos. 333-37175 and 811-08401).
2. Not Applicable
3.
a. General Distributor Agreement dated June 30, 1998, incorporated by
reference to Registrant's Post-Effective Amendment No. 12 filed on July 22,
2004 (File Nos. 333-70384 and 811-08401).
b. Amended and Restated General Distributor Agreement dated October 25, 2005,
incorporated by reference to the Registrant's Post-Effective Amendment No.
21 filed on December 29, 2005 (File Nos. 333-70472 and 811-08664).
c. Amended and Restated General Distributor Agreement dated June 1, 2006,
incorporated by reference to the Registrant's Registration Statement filed
on August 10, 2006 (File Nos. 333-136472 and 811-08664).
4.
a. Specimen of the Perspective L Series Fixed and Variable Annuity Contract,
incorporated by reference to Registrant's Pre-Effective Amendment No. 1
filed on December 30, 2004 (File Nos. 333-119659 and 811-08401).
b. Specimen of Section 403(b) Tax Sheltered Annuity Endorsement, incorporated
by reference to Registrant's Registration Statement filed on August 19,
2004 (File Nos. 333-118370 and 811-08401).
c. Specimen of Retirement Plan Endorsement, incorporated by reference to
Registrant's Registration Statement filed on August 19, 2004 (File Nos.
333-118370 and 811-08401).
d. Specimen of Individual Retirement Annuity Endorsement, incorporated by
reference to Registrant's Registration Statement filed on August 19, 2004
(File Nos. 333-118370 and 811-08401).
e. Specimen of Roth Individual Retirement Annuity Endorsement, incorporated by
reference to Registrant's Registration Statement filed on August 19, 2004
(File Nos. 333-118370 and 811-08401).
f. Specimen of Guaranteed Minimum Withdrawal Benefit Endorsement, incorporated
by reference to Registrant's Post-Effective Amendment No. 12 filed on July
22, 2004 (File Nos. 333-70384 and 811-08401).
g. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No. 12
filed on July 22, 2004 (File Nos. 333-70384 and 811-08401).
h. Specimen of 4% for Life Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No. 12
filed on July 22, 2004 (File Nos. 333-70384 and 811-08401).
i. Specimen of Guaranteed Minimum Income Benefit Endorsement, incorporated by
reference to Registrant's Registration Statement filed on October 4, 2004
(File Nos. 333-119522 and 811-08401).
j. Specimen of Highest Anniversary Value Death Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No. 12
filed on July 22, 2004 (File Nos. 333-70384 and 811-08401).
k. Specimen of 3% Contract Enhancement Endorsement, incorporated by reference
to the Registrant's Post-Effective Amendment No. 9 filed on September 22,
2003 (File Nos. 333-70384 and 811-08401).
l. Specimen of 4% Contract Enhancement Endorsement, incorporated by reference
to Registrant's Post-Effective Amendment No. 12 filed on July 22, 2004
(File Nos. 333-70384 and 811-08401).
m. Specimen of 2% Contract Enhancement Endorsement, incorporated by reference
to Registrant's Post-Effective Amendment No. 12 filed on July 22, 2004
(File Nos. 333-70384 and 811-08401).
n. Form of Reduced Administration Charge Endorsement, incorporated by
reference to Registrant's Pre-Effective Amendment No. 1 filed on May 8,
2002 (File Nos. 333-81266 and 811-08401).
o. Specimen of Charitable Remainder Trust Endorsement, incorporated by
reference to Registrant's Pre-Effective Amendment No. 1 filed on December
30, 2004 (File Nos. 333-119659 and 811-08401).
p. Specimen of Enhanced Dollar Cost Averaging Endorsement, incorporated by
reference to Registrant's Pre-Effective Amendment No. 1 filed on December
30, 2004 (File Nos. 333-119659 and 811-08401).
q. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Registration Statement filed on
January 6, 2005 (File Nos. 333-121884 and 811-08401).
r. Specimen of Guaranteed Minimum Withdrawal Benefit Endorsement, incorporated
by reference to Registrant's Registration Statement filed on January 6,
2005 (File Nos. 333-121884 and 811-08401).
s. Specimen of 2% Contract Enhancement Endorsement, incorporated by reference
to Registrant's Post-Effective Amendment No. 17 filed on April 27, 2005
(File Nos. 333-70384 and 811-08401).
t. Specimen of 3% Contract Enhancement Endorsement, incorporated by reference
to Registrant's Post-Effective Amendment No. 17 filed on April 27, 2005
(File Nos. 333-70384 and 811-08401).
u. Specimen of 5% Guaranteed Minimum Withdrawal Benefit With Annual Step-up
Endorsement, incorporated by reference to Registrant's Post-Effective
Amendment No. 18 filed on June 21, 2005 (File Nos. 333-70384 and
811-08401).
v. Specimen of 5% Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No. 18
filed on June 21, 2005 (File Nos. 333-70384 and 811-08401).
w. Specimen of Guaranteed Minimum Withdrawal Benefit Endorsement, incorporated
by reference to Registrant's Post-Effective Amendment No. 20 filed on
October 20, 2005 (File Nos. 333-70384 and 811-08401).
x. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No. 20
filed on October 20, 2005 (File Nos. 333-70384 and 811-08401).
y. Specimen of 4% for Life Guaranteed Minimum Withdrawal Benefit Endorsement,
incorporated by reference to Registrant's Post-Effective Amendment No. 20
filed on October 20, 2005 (File Nos. 333-70384 and 811-08401).
z. Specimen of Guaranteed Minimum Income Benefit Endorsement, incorporated by
reference to Registrant's Post-Effective Amendment No. 20 filed on October
20, 2005 (File Nos. 333-70384 and 811-08401).
aa. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit With Annual
Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 23 filed on April 27, 2006 (File Nos.
333-70384 and 811-08401).
bb. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Annual Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 23 filed on April 27, 2006 (File Nos.
333-70384 and 811-08401).
cc. Specimen of 5% for Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Five Year Step-Up Endorsement, incorporated by reference to
Registrant's Post-Effective Amendment No. 23 filed on April 27, 2006 (File
Nos. 333-70384 and 811-08401).
dd. Specimen of Joint 5% for Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 23 filed on April 27, 2006 (File Nos.
333-70384 and 811-08401).
ee. Specimen of Joint 5% for Life Guaranteed Minimum Withdrawal Benefit With
Bonus and Five Year Step-Up Endorsement, incorporated by reference to
Registrant's Post-Effective Amendment No. 23 filed on April 27, 2006 (File
Nos. 333-70384 and 811-08401).
ff. Specimen of Highest Anniversary Value Death Benefit Endorsement,
incorporated by reference to Registrant's Registration Statement filed on
September 20, 2006 (File Nos. 333-137485 and 811-04801).
gg. Specimen of Joint 5% for Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up Endorsement, incorporated by reference to Registrant's
Registration Statement filed on September 20, 2006 (File Nos. 333-137485
and 811-04801).
hh. Specimen of Joint 5% for Life Guaranteed Minimum Withdrawal Benefit With
Bonus and Five-Year Step-Up Step-Up Endorsement, incorporated by reference
to Registrant's Post- Effective Amendment No. 24 filed on December 21, 2006
(File Nos. 333-70384 and 811-04801).
ii. Specimen of the 6% Guaranteed Minimum Withdrawal Benefit With Annual
Step-up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 25 filed on April 26, 2007 (File Nos.
333-70384 and 811-08401).
jj. Specimen of the For Life Guaranteed Minimum Withdrawal Benefit With Annual
Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 25 filed on April 26, 2007 (File Nos.
333-70384 and 811-08401).
kk. Specimen of the Joint For Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 25 filed on April 26, 2007 (File Nos.
333-70384 and 811-08401).
ll. Specimen of the 5% For Life Guaranteed Minimum Withdrawal Benefit With
Bonus and Annual Step-up Endorsement, incorporated by reference to
Registrant's Post-Effective Amendment No. 25 filed on April 26, 2007 (File
Nos. 333-70384 and 811-08401).
mm. Specimen of 5% Guaranteed Minimum Withdrawal Benefit With Annual Step-Up
Endorsement, incorporated by reference to Registrant's Post-Effective
Amendment No. 28 filed on November 29, 2007 (File Nos. 333-70384 and
811-04801).
nn. Specimen of 6% Guaranteed Minimum Withdrawal Benefit With Annual Step-up
Endorsement, incorporated by reference to Registrant's Post-Effective
Amendment No. 28 filed on November 29, 2007 (File Nos. 333-70384 and
811-04801).
oo. Specimen of 5% For Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Annual Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 28 filed on November 29, 2007 (File Nos.
333-70384 and 811-04801).
pp. Specimen of For Life Guaranteed Minimum Withdrawal Benefit With Annual
Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 28 filed on November 29, 2007 (File Nos.
333-70384 and 811-04801).
qq. Specimen of Joint For Life Guaranteed Minimum Withdrawal Benefit With
Annual Step-Up Endorsement, incorporated by reference to Registrant's
Post-Effective Amendment No. 28 filed on November 29, 2007 (File Nos.
333-70384 and 811-04801).
rr. Specimen of Guaranteed Minimum Withdrawal Benefit with 5-Year Step-Up
Endorsement, incorporated by reference to the Registrant's Post-effective
Amendment No. 46, filed on December 27, 2007 (File Nos.333-70472 and
811-08664).
ss. Specimen of the For Life GMWB With Bonus and Annual Step-Up Endorsement,
incorporated by reference to the Registrant's Post-effective Amendment No.
46, filed on December 27, 2007 (File Nos. 333-70472 and 811-08664).
tt. Specimen of the Joint For Life GMWB With Bonus and Annual Step-Up
Endorsement, incorporated by reference to the Registrant's Post-effective
Amendment No. 46, filed on December 27, 2007 (File Nos. 333-70472 and
811-08664).
uu. Specimen of the For Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Annual Step-Up Endorsement, incorporated by reference to the
Registrant's Post-effective Amendment No. 11, filed on October 6, 2008
(File Nos. 333-119659 and 811-08401).
vv. Specimen of the Joint For Life Guaranteed Minimum Withdrawal Benefit With
Bonus and Annual Step-Up Endorsement, incorporated by reference to the
Registrant's Post-effective Amendment No. 11, filed on October 6, 2008
(File Nos. 333-119659 and 811-08401).
ww. Specimen of the For Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Annual Step-Up Endorsement, incorporated by reference to the
Registrant's Post-effective Amendment No. 11, filed on October 6, 2008
(File Nos. 333-119659 and 811-08401).
xx. Speciman of the Guaranteed Minimum Income Benefit Endorsement, incorporated
by reference to the Registrant's Post-effective Amendment No. 11, filed on
October 6, 2008 (File Nos. 333-119659 and 811-08401).
yy. Specimen of the For Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Annual Step-Up (Freedom) Endorsement (7587ANY-A 01/09), incorporated by
reference to the Registrant's Post-effective Amendment No. 12, filed on
December 31, 2008 (File Nos. 333-119659 and 811-08401).
zz. Specimen of the Joint For Life Guaranteed Minimum Withdrawal Benefit With
Bonus and Annual Step-Up (Joint Freedom) Endorsement (7588ANY-A 01/09),
incorporated by reference to the Registrant's Post-effective Amendment No.
12, filed on December 31, 2008 (File Nos. 333-119659 and 811-08401).
aaa. Specimen of the For Life Guaranteed Minimum Withdrawal Benefit With Bonus
and Annual Step-Up (DB) Endorsement (7589ANY-A 01/09), incorporated by
reference to the Registrant's Post-effective Amendment No. 12, filed on
December 31, 2008 (File Nos. 333-119659 and 811-08401).
bbb. Specimen of the Highest Anniversary Value Death Benefit Option (HAV)
Endorsement (7595NY 04/09), attached hereto.
ccc. Specimen of the For Life Guaranteed minimum Withdrawal Benefit With Bonus
and Annual Step-Up (LifeGuard Freedom DB) Endorsement (7602ANY-A 04/09),
attached hereto.
5.
a. Form of the Perspective L Series Fixed and Variable Annuity Application,
incorporated by reference to Registrant's Pre-Effective Amendment No. 1
filed on December 30, 2004 (File Nos. 333-119659 and 811-08401).
b. Form of the Perspective L Series Fixed and Variable Annuity Application,
incorporated by reference to Registrant's Post-Effective Amendment No. 4
filed on September 2, 2005 (File Nos. 333-119659 and 811-08401).
c. Form of the Perspective L Series Fixed and Variable Annuity Application,
incorporated by reference to Registrant's Post-Effective Amendment No. 5
filed on December 21, 2006 (File Nos. 333-119659 and 811-08401).
d. Form of the Perspective L Series Fixed and Variable Annuity Application,
incorporated by reference to Registrant's Post-Effective Amendment No. 9
filed on November 29, 2007 (File Nos. 333-119659 and 811-08401).
e. Form of the Perspective L Series Fixed and Variable Annuity Application,
incorporated by reference to Registrant's Post-Effective Amendment No. 10
filed on March 26, 2008 (File Nos. 333-119659 and 811-08401).
f. Form of the Perspective L Series Fixed and Variable Annuity Application,
incorporated by reference to the Registrant's Post-effective Amendment No.
11, filed on October 6, 2008 (File Nos. 333-119659 and 811-08401).
g. Form of the Perspective L Series Fixed and Variable Annuity Application,
attached hereto.
6.
a. Declaration and Charter of Depositor, incorporated by reference to
Registrant's Registration Statement filed 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 on October 3, 1997 (File Nos. 333-37175 and
811-08401).
7.
a. Variable Annuity GMIB Reinsurance Agreement, incorporated by reference to
Registrant's Post-Effective Amendment No. 20 filed on October 20, 2005
(File Nos. 333-70384 and 811-08401).
b. Amendment No. 9 to the Variable Annuity GMIB Reinsurance Agreement
Effective March 1, 2005 between Jackson National Life Insurance Company of
New York ("Ceding Company") and Ace Tempest Life Reinsurance LTD.
("Reinsurer"), with effective date June 15, 2008, incorporated by reference
to Registrant's Post-Effective Amendment No. 11 filed on October 6, 2008
(Files Nos. 333-119659 and 08401).
c. Amendment No. 10 to the Variable Annuity GMIB Reinsurance Agreement
Effective March 1, 2005 between Jackson National Life Insurance Company of
New York ("Ceding Company") and Ace Tempest Life Reinsurance LTD.
("Reinsurer"), with effective date October 6, 2008, incorporated by
reference to Registrant's Post-Effective Amendment No. 11 filed on October
6, 2008 (Files Nos. 333-119659 and 08401).
d. Amendment No. 11 to the Variable Annuity GMIB Reinsurance Agreement
Effective March 1, 2005 between Jackson National Life Insurance Company of
New York ("Ceding Company") and Ace Tempest Life Reinsurance LTD.
("Reinsurer"), with effective date April 6, 2009, attached hereto.
8. Not Applicable
9. Opinion and Consent of Counsel, attached hereto.
10. Consent of Independent Registered Public Accounting Firm, attached hereto.
11. Not Applicable
12. Not Applicable
Item 25. Directors and Officers of the Depositor
Name and Principal Business Address Positions and Offices with Depositor
Donald B. Henderson, Jr. Director
4A Rivermere Apartments
Bronxville, NY 10708
David L. Porteous Director
20434 Crestview Drive
Reed City, MI 49777
Donald T. DeCarlo Director
200 Manor Road
Douglaston, New York 11363
Gary H. Torgow Director
220 West Congress
Detroit, MI 48226-3213
John C. Colpean Director
1640 Haslett Road, Suite 160
Haslett, MI 48840
Richard D. Ash Vice President, Actuary & Appointed
1 Corporate Way Actuary
Lansing, MI 48951
John B. Banez Vice President
1 Corporate Way
Lansing, MI 48951
James P. Binder Senior Vice President & Treasurer
1 Corporate Way
Lansing, MI 48951
John H. Brown Vice President & Director
1 Corporate Way
Lansing, MI 48951
Joseph Mark Clark Vice President
1 Corporate Way
Lansing, MI 48951
Marianne Clone Vice President & Director
1 Corporate Way
Lansing, MI 48951
James B. Croom Vice President & Deputy General
1 Corporate Way Counsel
Lansing, MI 48951
George D. Daggett Illustration Officer
7601 Technology Way
Denver, CO 80237
Lisa C. Drake Senior Vice President - Chief Actuary
1 Corporate Way
Lansing, MI 48951
Phillip Brian Eaves Vice President
1 Corporate Way
Lansing, MI 48951
Robert A. Fritts Senior Vice President & Controller
1 Corporate Way
Lansing, MI 48951
James D. Garrison Vice President
1 Corporate Way
Lansing, MI 48951
Julia A. Goatley Vice President, Assistant Secretary &
1 Corporate Way Director
Lansing, MI 48951
Clifford S. Hale, M.D. Vice President
1 Corporate Way
Lansing, MI 48951
Laura L. Hanson Vice President
1 Corporate Way
Lansing, MI 48951
Andrew B. Hopping Executive Vice President, Chief
1 Corporate Way Financial Officer, Chairman of the
Lansing, MI 48951 Board, & Director
Stephen A. Hrapkiewicz, Jr. Senior Vice President
1 Corporate Way
Lansing, MI 48951
Clifford J. Jack Executive Vice President & Chief
7601 Technology Way Distribution Officer
Denver, CO 80237
Everett W. Kunzelman Vice President
1 Corporate Way
Lansing, MI 48951
Clark P. Manning, Jr. President & Chief Executive Officer
1 Corporate Way
Lansing, MI 48951
Herbert G. May III Chief Administrative Officer &
275 Grove St Building 2 Director
4th floor
Auburndale, MA 02466
Thomas J. Meyer Senior Vice President, General
1 Corporate Way Counsel, Secretary & Director
Lansing, MI 48951
Keith R. Moore Vice President
1 Corporate Way
Lansing, MI 48951
P. Chad Myers Senior Vice President
1 Corporate Way
Lansing, MI 48951
J. George Napoles Executive Vice President & Chief
1 Corporate Way Information Officer
Lansing, MI 48951
Mark D. Nerud Vice President
225 W. Wacker Drive
Suite 1200
Chicago, IL 60606
Timothy J. Padot Vice President
1 Corporate Way
Lansing, MI 48951
Russell E. Peck Vice President & Director
1 Corporate Way
Lansing, MI 48951
Laura L. Prieskorn Vice President
1 Corporate Way
Lansing, MI 48951
Greg B. Salsbury Vice President & Director
7601 Technology Way
Denver, CO 80237
William R. Schulz Vice President
1 Corporate Way
Lansing, MI 48951
Kathleen M. Smith Vice President
1 Corporate Way
Lansing, MI 48951
James R. Sopha Executive Vice President
1 Corporate Way
Lansing, MI 48951
Heather R. Strang Vice President
1 Corporate Way
Lansing, MI 48951
Robert M. Tucker, Jr. Vice President
1 Corporate Way
Lansing, MI 48951
Eamon J. Twomey Vice President
1 Corporate Way
Lansing, MI 48951
Michael A. Wells Chief Operating Officer
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
[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
Alcona Funding LLC Delaware 100% Jackson National Investment Related
Life Insurance Company Company
Berrien Funding LLC Delaware 100% Jackson National Investment Related
Life Insurance Company Company
Brooke GP Delaware 99% Brooke (Holdco 1) Holding Company
Inc. Activities
1% Brooke (Holdco 2)
Inc.
Brooke LLC Delaware 77% Prudential (US Holding Company
Holdco 2) Limited Activities
23% Brooke (Jersey)
Limited
Brooke (Holdco 1) Inc. Delaware 100% Prudential (US Holding Company
Holdco 3) BV Activities
Brooke (Holdco 2) Inc. Delaware 100% Brooke (Holdco 1) Holding Company
Inc. Activities
Brooke Holdings LLC Delaware 100% Nicole Finance Holding Company
Inc. Activities
Brooke Holdings (UK) United Kingdom 100% Brooke GP Holding Company
Limited Activities
Brooke Investment, Inc. Delaware 100% Brooke Holdings Investment Related
LLC Company
Brooke Life Insurance Michigan 100% Brooke Holdings Life Insurance
Company LLC
Brooke (Jersey) Limited United Kingdom 100% Prudential (US Holding Company
Holdco 2) Limited Activities
Calhoun Funding LLC Delaware 100% Jackson National Investment Related
Life Insurance Company Company
Curian Capital, LLC Michigan 100% Jackson National Registered Investment
Life Insurance Company Advisor
Curian Clearing LLC Michigan 100% Jackson National Broker/Dealer
(formerly, BH Clearing Life Insurance Company
LLC)
GCI Holding Corporation Delaware 75.8% Jackson National Holding Company/
Life Insurance Company Jackson Investment
Hermitage Management, LLC Michigan 100% Jackson National Advertising Agency
Life Insurance Company
Holborn Delaware LLC Delaware 100% Prudential Four Holding Company
Limited Activities
Horizon Capital Delaware 35.8% Jackson National Jackson Investment
Partners I, L.P. Life Insurance Company
IFC Holdings, Inc. Delaware 100% National Planning Broker/Dealer and
d/b/a INVEST Financial Holdings Inc. Investment Adviser
Corporation
Investment Centers of North Dakota 100% IFC Holdings, Inc. Broker/Dealer and
America, Inc. Investment Adviser
JNL Investors Series Trust Massachusetts 100% Jackson National Investment Company
Life Insurance Company
Jackson Investment Michigan 100% Brooke Holdings Investment Adviser
Management LLC LLC
Jackson National Asset Michigan 100% Jackson National Investment Adviser and
Management, LLC Life 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 Advertising/Marketing
Distributors LLC Life Insurance Company Corporation and
Broker/Dealer
Jackson National Life New York 100% Jackson National Life Insurance
Insurance Company Life Insurance Company
of New York
JNLI LLC Delaware 100% Jackson National Tuscany Notes
Life Insurance Company
JNL Series Trust Massachusetts Common Law Trust with Investment Company
contractual association
with Jackson National
Life Insurance Company
of New York
JNL Southeast Agency LLC Michigan 100% Jackson National Insurance Agency
Life Insurance Company
JNL Variable Fund LLC Delaware 100% Jackson National Investment Company
Separate Account - I
JNLNY Variable Fund I LLC Delaware 100% JNLNY Separate Investment Company
Account I
Mercantile Capital Delaware 37.7% Jackson National Jackson Investment
Partners I, L.P. Life Insurance Company
Mercantile Equity I Delaware 99% Jackson National Jackson Investment
LP (B) Life Insurance Company
Mercantile Equity III Delaware 99% Jackson National Jackson Investment
LP (B) Life Insurance Company
National Planning Delaware 100% National Planning Broker/Dealer and
Corporation Holdings, Inc. Investment Adviser
National Planning Delaware 100% Brooke Holdings Holding Company
Holdings, Inc. LLC Activities
Nicole Finance Inc. Delaware 100% Brooke GP Holding Company
Activities
PGDS (US One) LLC Delaware 100% Jackson National Holding Company
Life Insurance Company Activities
PGDS (US Two) LLC Delaware 100% PGDS (US One) LLC Holding Company
Activities
Piedmont CDO Trust Delaware 100% Piedmont Funding LLC Investment Company
(Piedmont Notes)
Piedmont Funding LLC Delaware 100% Jackson National Investment Related
Life Insurance Company Company
PPM America Private Delaware 50% Jackson National Jackson Investment
Equity Fund LP Life Insurance Company
PPM America Private Delaware 50% Jackson National Jackson Investment
Equity Fund II, LP Life Insurance Company
PPM America Private Delaware 50% Jackson National Jackson Investment
Equity Fund III, LP Life Insurance Company
PPM Holdings, Inc. Delaware 100% Brooke Holdings Holding Company
LLC Activities
Prudential plc United Kingdom Publicly Traded Financial Institution
Prudential Corporation United Kingdom 100% Prudential Holdings Holding Company
Holdings, Limited Limited Activities
Prudential Holdings Scotland 100% Prudential plc Holding Company
Limited Activities
Prudential Four Limited United Kingdom 98% Prudential Holding Company
Corporation Holdings, Activities
Limited
2% Prudential plc
Prudential Netherlands 100% Prudential (US Holding Company
(US Holdco 1) BV Holdco 1) Limited Activities
Prudential Netherlands 100% Prudential (US Holding Company
(US Holdco 2) BV Holdco 1) BV Activities
Prudential Netherlands 100% Prudential (US Holding Company
(US Holdco 3) BV Holdco 2) BV Activities
Prudential United Kingdom 76.72% Brooke LLC Holding Company
(US Holdco 1) Limited Activities
23.28% Prudential Four
Limited
Prudential Gibraltar 100% Holborn Delaware Holding Company
(US Holdco 2) Limited LLC Activities
SII Investments, Inc. Wisconsin 100% National Planning Broker/Dealer and
Holdings, Inc. Investment Adviser
Squire Reassurance Michigan 100% Jackson National Special Purpose
Company LLC Life Insurance Financial Captive
Company Insurance Company
Squire Capital I LLC Michigan 100% Jackson National Investment Related
Life Insurance Company
Company
Squire Capital II LLC Michigan 100% Jackson National Investment Related
Life Insurance Company
Company
The Holliston Mills Delaware 100% GCI Holding Jackson Investment
Corporation
Wynnefield Equity I, LP Pennsylvania 99% Jackson National Jackson Investment
Life Insurance Company
Item 27. Number of Contract Owners as of January 31, 2009
Qualified - 2,094
Non-qualified - 1,415
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 LLC acts as general distributor for
the JNLNY Separate Account I. Jackson National Life Distributors LLC
also acts as general distributor for the Jackson National Separate
Account - I, the Jackson National Separate Account III, the Jackson
National Separate Account IV, the Jackson National Separate Account V,
the JNLNY Separate Account II and the JNLNY Separate Account IV.
(b) Directors and Officers of Jackson National Life Distributors LLC:
Name and Business Address Positions and Offices with Underwriter
Michael A. Wells Manager
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
Andrew B. Hopping Chief Financial Officer
1 Corporate Way
Lansing, MI 48951
Clifford J. Jack Manager, President and Chief Executive Officer
7601 Technology Way
Denver, CO 80237
Stephen M. Ash Vice President
7601 Technology Way
Denver, CO 80237
Pamela Aurbach Vice President
7601 Technology Way
Denver, CO 80237
Jeffrey Bain Vice President
7601 Technology Way
Denver, CO 80237
Brad Baker Assistant Vice President
7601 Technology Way
Denver, CO 80237
Lawrence Barredo Assistant Vice President
7601 Technology Way
Denver, CO 80237
Mercedes Biretto Vice President
7601 Technology Way
Denver, CO 80237
Janice Blanchard Vice President
7601 Technology Way
Denver, CO 80237
James Bossert Senior Vice President
7601 Technology Way
Denver, CO 80237
Amy Bozic Regional Vice President
7601 Technology Way
Denver, CO 80237
J. Edward Branstetter, Jr. Assistant Vice President
7601 Technology Way
Denver, CO 80237
(Christian) Alex Bremer Assistant Vice President
7601 Technology Way
Denver, CO 80237
Kristina Brendlinger Assistant Vice President
7601 Technology Way
Denver, CO 80237
William Britt Vice President
7601 Technology Way
Denver, CO 80237
Tori Bullen Senior Vice President
210 Interstate North Parkway
Suite 401
Atlanta, GA 30339-2120
Greg Cicotte Executive Vice President,
7601 Technology Way National Sales Manager
Denver, CO 80237
Maura Collins Vice President
7601 Technology Way
Denver, CO 80237
Christopher Cord Assistant Vice President
7601 Technology Way
Denver, CO 80237
George Daggett Assistant Vice President
7601 Technology Way
Denver, CO 80237
Carl Donahue Assistant Vice President
7601 Technology Way
Denver, CO 80237
Paul Fitzgerald Senior Vice President
7601 Technology Way
Denver, CO 80237
Julia A. Goatley Assistant Secretary
1 Corporate Way
Lansing, MI 48951
Luis Gomez Vice President
7601 Technology Way
Denver, CO 80237
Kevin Grant Senior Vice President
7601 Technology Way
Denver, CO 80237
Rupert T. Hall, Jr. Regional Vice President
7601 Technology Way
Denver, CO 80237
Jason T. Heinhorst Assistant Vice President
7601 Technology Way
Denver, CO 80237
Bonnie Howe Vice President and Deputy General Counsel
7601 Technology Way
Denver, CO 80237
Thomas Hurley Senior Vice President
7601 Technology Way
Denver, CO 80237
Mark Jones Vice President
7601 Technology Way
Denver, CO 80237
Steve Johnson Regional Vice President
7601 Technology Way
Denver, CO 80237
Georgette Kraag Regional Vice President
7601 Technology Way
Denver, CO 80237
Steve Kluever Senior Vice President
7601 Technology Way
Denver, CO 80237
John Koehler Vice President
7601 Technology Way
Denver, CO 80237
Brian Lane Vice President
7601 Technology Way
Denver, CO 80237
James Livingston Executive Vice President
7601 Technology Way
Denver, CO 80237
Barbara Logsdon Assistant Vice President
7601 Technology Way
Denver, CO 80237
Doug Mantelli Vice President
7601 Technology Way
Denver, CO 80237
James McCorkle Vice President
7601 Technology Way
Denver, CO 80237
Tamu McCreary Assistant Vice President
7601 Technology Way
Denver, CO 80237
Brooke Meyer Vice President
1 Corporate Way
Lansing, MI 48951
Thomas J. Meyer Manger and Secretary
1 Corporate Way
Lansing, MI 48951
Megan Meyers Regional Vice President
7601 Technology Way
Denver, CO 80237
Jack Mishler Senior Vice President
7601 Technology Way
Denver, CO 80237
Diane Montana Assistant Vice President
7601 Technology Way
Denver, CO 80237
Kenneth Naes Vice President
7601 Technology Way
Denver, CO 80237
Tony Natale Assistant Vice President
38705 Seven Mile Road,
Suite 251
Livonia, MI 48152-1058
Steve Papa Regional Vice President
7601 Technology Way
Denver, CO 80237
Eric Palumbo Vice President
7601 Technology Way
Denver, CO 80237
Allison Pearson Assistant Vice President
7601 Technology Way
Denver, CO 80237
Jeremy Rafferty Assistant Vice President
7601 Technology Way
Denver, CO 80237
Justin Rafferty Vice President
7601 Technology Way
Denver, CO 80237
Alison Reed Vice President
7601 Technology Way
Denver, CO 80237
Traci Reiter Assistant Vice President
7601 Technology Way
Denver, CO 80237
Gregory B. Salsbury Executive Vice President
7601 Technology Way
Denver, CO 80237
Sharon Santella Assistant Vice President
7601 Technology Way
Denver, CO 80237
Marilynn Scherer Vice President
7601 Technology Way
Denver, CO 80237
Kathleen Schofield Vice President
7601 Technology Way
Denver, CO 80237
Jennifer (Seamount) Miller Vice President
7601 Technology Way
Denver, CO 80237
David Sprague Senior Vice President
7601 Technology Way
Denver, CO 80237
Daniel Starishevsky Senior Vice President
7601 Technology Way
Denver, CO 80237
David Stebenne Regional Vice President
7601 Technology Way
Denver, CO 80237
Brian Sward Assistant Vice President
7601 Technology Way
Denver, CO 80237
Jeremy Swartz Assistant Vice President
7601 Technology Way
Denver, CO 80237
Robin Tallman Assistant Vice President
7601 Technology Way
Denver, CO 80237
Doug Townsend Vice President and Controller and FinOp
7601 Technology Way
Denver, CO 80237
C. Ray Trueblood Vice President
7601 Technology Way
Denver, CO 80237
Stephanie Valentine Assistant Vice President
7601 Technology Way
Denver, CO 80237
Asa Wood Vice President
7601 Technology Way
Denver, CO 80237
Daniel Wright Vice President and Chief Compliance Officer
7601 Technology Way
Denver, CO 80237
Phil Wright Vice President
7601 Technology Way
Denver, CO 80237
Matthew Yellott Assistant Vice President
7601 Technology Way
Denver, CO 80237
[Enlarge/Download Table]
(c)
Name of Principal Net Underwriting Compensation on Brokerage Compensation
Underwriter Discounts and Redemption or Commissions
Commissions Annuitization
Jackson National Life Not Applicable Not Applicable Not Applicable Not Applicable
Distributors LLC
Item 30. Location of Accounts and Records
Jackson National Life Insurance Company
1 Corporate Way
Lansing, Michigan 48951
Jackson National Life Insurance Company
Institutional Marketing Group Service Center
1 Corporate Way
Lansing, Michigan 48951
Jackson National Life Insurance Company
7601 Technology Way
Denver, Colorado 80237
Jackson National Life Insurance Company
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 meets the requirements of Securities Act
Rule 485(b) for effectiveness of this post-effective amendment and has caused
this post-effective amendment to be signed on its behalf, in the City of
Lansing, and State of Michigan, on this 2nd day of April, 2009.
JNLNY Separate Account I
(Registrant)
Jackson National Life Insurance Company of New York
By: THOMAS J. MEYER
Thomas J. Meyer
Senior Vice President, General Counsel,
Secretary and Director
Jackson National Life Insurance Company of New York
(Depositor)
By: THOMAS J. MEYER
Thomas J. Meyer
Senior Vice President, General Counsel,
Secretary and Director
As required by the Securities Act of 1933, this post-effective amendment to the
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
*THOMAS J. MEYER April 2, 2009
Clark P. Manning, Jr. Date
President and Chief Executive Officer
*THOMAS J. MEYER April 2, 2009
Andrew B. Hopping, Date
Executive Vice President, Chief Financial Officer
and Director
*THOMAS J. MEYER April 2, 2009
Herbert G. May III Date
Chief Administrative Officer and Director
THOMAS J. MEYER April 2, 2009
Thomas J. Meyer Date
Senior Vice President, General Counsel, Secretary
and Director
*THOMAS J. MEYER April 2, 2009
John H. Brown Date
Vice President and Director
*THOMAS J. MEYER April 2, 2009
Marianne Clone Date
Vice President and Director
*THOMAS J. MEYER April 2, 2009
Julia A. Goatley Date
Vice President; Senior Counsel; Assistant
Secretary; Chief Compliance Officer, Separate
Accounts; Chief Risk Officer and Director
*THOMAS J. MEYER April 2, 2009
Russell E. Peck Date
Vice President and Director
*THOMAS J. MEYER April 2, 2009
Gregory B. Salsbury Date
Vice President and Director
*THOMAS J. MEYER April 2, 2009
Donald B. Henderson, Jr. Date
Director
*THOMAS J. MEYER April 2, 2009
David C. Porteous Date
Director
*THOMAS J. MEYER April 2, 2009
Donald T. DeCarlo Date
Director
*THOMAS J. MEYER April 2, 2009
Gary A. Torgow Date
Director
*THOMAS J. MEYER April 2, 2009
John C. Colpean Date
Director
* Thomas J. Meyer, Senior Vice President,
Secretary, General Counsel and Attorney-in-Fact
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each of the undersigned as directors
and/or officers of JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK (the
Depositor), a New York corporation, hereby appoint Clark P. Manning, Jr., Andrew
B. Hopping, Thomas J. Meyer, Patrick W. Garcy, Susan S. Rhee and Anthony L.
Dowling (each with power to act without the others) his/her attorney-in-fact and
agent, with full power of substitution and resubstitution, for and in his/her
name, place and stead, in any and all capacities, to sign applications and
registration statements, and any and all amendments, with power to affix the
corporate seal and to attest it, and to file the applications, registration
statements, and amendments, with all exhibits and requirements, in accordance
with the Securities Act of 1933, the Securities and Exchange Act of 1934, and/or
the Investment Company Act of 1940. This Power of Attorney concerns JNLNY
Separate Account I (333-37175, 333-48822, 333-70384, 333-81266, 333-118370,
333-119659 and 333-137485), JNLNY Separate Account II (333-86933), and JNLNY
Separate Account IV (333-109762 and 333-118132), as well as any future separate
accounts the Depositor establishes through which securities, particularly
variable annuity contracts and variable universal life insurance policies, are
to be offered for sale. The undersigned grant to each attorney-in-fact and agent
full authority to take all necessary actions to effectuate the above as fully,
to all intents and purposes, as he/she could do in person, thereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may
lawfully do or cause to be done by virtue hereof. This instrument may be
executed in one or more counterparts.
IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney as of
the 2nd day of January, 2009.
CLARK P. MANNING
Clark P. Manning, Jr.
President and Chief Executive Officer
ANDREW B. HOPPING
Andrew B. Hopping
Executive Vice President, Chief Financial Officer
and Director
HERBERT G. MAY
Herbert G. May III
Chief Administrative Officer and Director
THOMAS J. MEYER
Thomas J. Meyer
Senior Vice President, General Counsel and Director
JOHN H. BROWN
John H. Brown
Vice President and Director
MARIANNE CLONE
Marianne Clone
Vice President and Director
JULIA A. GOATLEY
Julia A. Goatley
Vice President, Senior Counsel, Assistant Secretary
and Director
RUSSELL E. PECK
Russell E. Peck
Vice President and Director
GREGORY B. SALSBURY
Gregory B. Salsbury
Vice President and Director
DONALD B. HENDERSON
Donald B. Henderson, Jr.
Director
DAVID L. PORTEOUS
David L. Porteous
Director
DONALD T. DECARLO
Donald T. DeCarlo
Director
GARY H. TORGOW
Gary H. Torgow
Director
JOHN C. COLPEAN
John C. Colpean
Director
EXHIBIT LIST
EXHIBIT NO. DESCRIPTION
4.
bbb. Specimen of the Highest Anniversary Value Death Benefit Option (HAV)
Endorsement (7595NY 04/09), attached hereto, as Ex-4bbb.
ccc. Specimen of the For Life Guaranteed minimum Withdrawal Benefit With Bonus
and Annual Step-Up (LifeGuard Freedom DB) Endorsement (7602ANY-A 04/09),
attached hereto, as Ex-4ccc.
5.
g. Form of the Perspective L Series Fixed and Variable Annuity Application,
attached hereto as EX-5.g.
7.
d. Amendment No. 11 to the Variable Annuity GMIB Reinsurance Agreement
Effective March 1, 2005 between Jackson National Life Insurance Company of
New York ("Ceding Company") and Ace Tempest Life Reinsurance LTD.
("Reinsurer"), with effective date April 6, 2009, attached hereto as Ex-7d.
9. Opinion and Consent of Counsel, attached hereto as EX-9.
10. Consent of Independent Registered Public Accounting Firm, attached hereto
as EX-10.
Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
|---|
| This ‘485BPOS’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| | 12/1/33 | | 137 | | 148 |
| | 12/1/23 | | 137 | | 148 |
| | 12/1/21 | | 137 | | 148 |
| | 12/1/18 | | 137 | | 148 |
| | 12/1/11 | | 137 | | 148 |
| | 6/6/10 | | 170 |
| | 12/31/09 | | 234 | | | | | 24F-2NT, NSAR-U |
| | 12/6/09 | | 59 | | 161 |
| | 10/6/09 | | 170 |
| | 6/30/09 | | 58 | | 152 | | | 485APOS |
| Effective on: | | 4/6/09 | | 1 | | 738 | | | 485BPOS |
| | 4/5/09 | | 20 |
| Filed on: | | 4/2/09 | | 1 | | 736 | | | 485BPOS |
| | 3/13/09 | | 705 |
| | 2/27/09 | | 702 | | | | | 24F-2NT |
| | 1/31/09 | | 735 |
| | 1/12/09 | | 15 | | 144 |
| | 12/31/08 | | 18 | | 735 | | | 24F-2NT, 485BPOS, NSAR-U |
| | 12/29/08 | | 623 |
| | 12/26/08 | | 623 |
| | 12/24/08 | | 623 |
| | 12/23/08 | | 623 |
| | 12/22/08 | | 623 | | | | | CORRESP |
| | 12/19/08 | | 623 |
| | 12/17/08 | | 623 |
| | 12/16/08 | | 623 |
| | 12/15/08 | | 623 | | 712 |
| | 12/12/08 | | 623 | | | | | CORRESP |
| | 12/11/08 | | 623 |
| | 12/10/08 | | 623 |
| | 12/9/08 | | 623 |
| | 12/8/08 | | 623 |
| | 12/5/08 | | 623 |
| | 12/4/08 | | 623 |
| | 12/2/08 | | 623 |
| | 12/1/08 | | 137 | | 623 |
| | 11/26/08 | | 623 |
| | 11/25/08 | | 623 |
| | 11/24/08 | | 623 |
| | 11/21/08 | | 623 |
| | 11/20/08 | | 623 |
| | 11/19/08 | | 623 |
| | 11/18/08 | | 623 |
| | 11/17/08 | | 623 |
| | 11/15/08 | | 711 | | 712 |
| | 11/14/08 | | 623 |
| | 11/13/08 | | 623 |
| | 11/12/08 | | 623 |
| | 11/11/08 | | 623 |
| | 11/10/08 | | 623 |
| | 11/7/08 | | 623 |
| | 11/6/08 | | 623 |
| | 11/5/08 | | 623 |
| | 11/4/08 | | 623 |
| | 11/3/08 | | 623 |
| | 10/31/08 | | 623 |
| | 10/30/08 | | 623 |
| | 10/29/08 | | 623 |
| | 10/28/08 | | 623 |
| | 10/27/08 | | 623 |
| | 10/24/08 | | 623 | | | | | 485APOS |
| | 10/23/08 | | 623 |
| | 10/22/08 | | 623 |
| | 10/21/08 | | 623 |
| | 10/20/08 | | 623 |
| | 10/17/08 | | 623 |
| | 10/16/08 | | 623 |
| | 10/15/08 | | 623 |
| | 10/14/08 | | 623 | | | | | 497J |
| | 10/13/08 | | 623 |
| | 10/10/08 | | 623 | | | | | 497J |
| | 10/9/08 | | 623 |
| | 10/8/08 | | 623 |
| | 10/7/08 | | 623 |
| | 10/6/08 | | 10 | | 735 | | | 485BPOS |
| | 10/3/08 | | 623 | | | | | 485BPOS |
| | 10/2/08 | | 623 |
| | 10/1/08 | | 623 |
| | 9/30/08 | | 623 | | 711 |
| | 9/29/08 | | 623 |
| | 9/26/08 | | 623 |
| | 9/25/08 | | 623 | | | | | CORRESP |
| | 9/24/08 | | 623 |
| | 7/14/08 | | 21 | | 177 | | | 497 |
| | 6/30/08 | | 58 | | 152 |
| | 6/15/08 | | 735 |
| | 5/9/08 | | 622 |
| | 5/8/08 | | 622 |
| | 5/7/08 | | 622 |
| | 5/6/08 | | 622 |
| | 5/5/08 | | 622 |
| | 5/2/08 | | 622 |
| | 5/1/08 | | 622 |
| | 4/30/08 | | 622 |
| | 4/29/08 | | 622 |
| | 4/28/08 | | 622 |
| | 4/25/08 | | 622 |
| | 4/24/08 | | 622 |
| | 4/23/08 | | 622 |
| | 4/22/08 | | 622 |
| | 4/21/08 | | 622 |
| | 4/18/08 | | 622 |
| | 4/17/08 | | 622 |
| | 4/16/08 | | 622 |
| | 4/15/08 | | 622 |
| | 4/14/08 | | 622 |
| | 4/11/08 | | 622 |
| | 4/10/08 | | 622 |
| | 4/9/08 | | 622 |
| | 4/8/08 | | 622 |
| | 4/7/08 | | 622 |
| | 4/4/08 | | 622 |
| | 4/3/08 | | 622 | | | | | 497J |
| | 4/2/08 | | 622 |
| | 4/1/08 | | 622 |
| | 3/31/08 | | 10 | | 692 | | | 485BPOS |
| | 3/30/08 | | 58 | | 152 |
| | 3/28/08 | | 622 |
| | 3/27/08 | | 622 | | | | | 24F-2NT |
| | 3/26/08 | | 622 | | 735 | | | 485BPOS |
| | 3/25/08 | | 622 |
| | 3/24/08 | | 622 |
| | 3/20/08 | | 622 |
| | 3/19/08 | | 622 |
| | 3/18/08 | | 622 |
| | 3/17/08 | | 622 |
| | 3/14/08 | | 622 |
| | 3/13/08 | | 622 |
| | 3/12/08 | | 622 |
| | 3/11/08 | | 622 |
| | 3/10/08 | | 622 |
| | 3/7/08 | | 622 |
| | 3/6/08 | | 622 |
| | 3/5/08 | | 622 |
| | 3/4/08 | | 622 |
| | 3/3/08 | | 622 |
| | 2/29/08 | | 622 |
| | 2/28/08 | | 622 |
| | 2/27/08 | | 622 |
| | 2/26/08 | | 622 |
| | 2/25/08 | | 622 | | | | | NSAR-U |
| | 2/22/08 | | 622 |
| | 2/21/08 | | 622 |
| | 2/20/08 | | 622 |
| | 2/19/08 | | 622 |
| | 2/15/08 | | 622 |
| | 2/14/08 | | 622 |
| | 2/13/08 | | 622 |
| | 2/12/08 | | 622 |
| | 2/11/08 | | 622 |
| | 2/8/08 | | 622 |
| | 2/7/08 | | 622 |
| | 1/1/08 | | 710 | | 721 |
| | 12/31/07 | | 653 | | 735 | | | 24F-2NT, NSAR-U |
| | 12/27/07 | | 735 |
| | 12/3/07 | | 66 | | 698 | | | 485BPOS |
| | 11/30/07 | | 658 | | 661 | | | 485BPOS |
| | 11/29/07 | | 735 | | | | | 485BPOS |
| | 7/26/07 | | 621 |
| | 7/25/07 | | 621 |
| | 7/24/07 | | 621 |
| | 7/23/07 | | 621 |
| | 7/20/07 | | 621 |
| | 7/19/07 | | 621 |
| | 7/18/07 | | 621 |
| | 7/17/07 | | 621 |
| | 7/16/07 | | 621 |
| | 7/13/07 | | 621 |
| | 7/12/07 | | 621 |
| | 7/11/07 | | 621 |
| | 7/10/07 | | 621 |
| | 7/9/07 | | 621 |
| | 7/6/07 | | 621 |
| | 7/5/07 | | 621 |
| | 7/3/07 | | 621 |
| | 7/2/07 | | 621 |
| | 6/29/07 | | 621 |
| | 6/28/07 | | 621 |
| | 6/27/07 | | 621 |
| | 6/26/07 | | 621 |
| | 6/25/07 | | 621 |
| | 6/22/07 | | 621 |
| | 6/21/07 | | 621 |
| | 6/20/07 | | 621 |
| | 6/19/07 | | 621 |
| | 6/18/07 | | 621 | | | | | AW, AW WD |
| | 6/15/07 | | 621 |
| | 6/14/07 | | 621 |
| | 6/13/07 | | 621 |
| | 6/12/07 | | 621 |
| | 6/11/07 | | 621 | | | | | 497J |
| | 6/8/07 | | 621 |
| | 6/7/07 | | 621 |
| | 6/6/07 | | 621 |
| | 6/5/07 | | 621 |
| | 6/4/07 | | 59 | | 621 | | | 485BPOS, AW |
| | 6/1/07 | | 621 | | | | | 485BPOS |
| | 5/31/07 | | 621 |
| | 5/30/07 | | 621 |
| | 5/29/07 | | 621 |
| | 5/25/07 | | 621 |
| | 5/24/07 | | 621 |
| | 5/23/07 | | 621 |
| | 5/22/07 | | 621 |
| | 5/21/07 | | 621 |
| | 5/18/07 | | 621 |
| | 5/17/07 | | 621 |
| | 5/16/07 | | 621 |
| | 5/15/07 | | 621 |
| | 5/14/07 | | 621 |
| | 5/11/07 | | 621 |
| | 5/10/07 | | 621 |
| | 5/9/07 | | 621 |
| | 5/8/07 | | 621 |
| | 5/7/07 | | 621 |
| | 5/4/07 | | 621 | | | | | 497, 497J |
| | 5/3/07 | | 621 |
| | 5/2/07 | | 621 |
| | 5/1/07 | | 621 |
| | 4/30/07 | | 10 | | 689 | | | 485BPOS |
| | 4/27/07 | | 621 | | 661 | | | 485BPOS |
| | 4/26/07 | | 621 | | 735 | | | 485BPOS |
| | 4/25/07 | | 621 |
| | 1/16/07 | | 99 | | 698 |
| | 1/1/07 | | 655 | | 712 |
| | 12/31/06 | | 656 | | 735 | | | 24F-2NT, 24F-2NT/A, NSAR-U |
| | 12/21/06 | | 735 | | | | | 485BPOS |
| | 12/15/06 | | 713 | | | | | N-4/A |
| | 10/6/06 | | 620 |
| | 10/5/06 | | 620 |
| | 10/4/06 | | 620 |
| | 10/3/06 | | 620 |
| | 10/2/06 | | 620 |
| | 9/29/06 | | 620 |
| | 9/28/06 | | 620 |
| | 9/27/06 | | 620 |
| | 9/26/06 | | 620 |
| | 9/25/06 | | 620 |
| | 9/22/06 | | 620 |
| | 9/21/06 | | 620 |
| | 9/20/06 | | 620 | | 735 | | | N-4 |
| | 9/19/06 | | 620 |
| | 9/18/06 | | 620 |
| | 9/15/06 | | 620 |
| | 9/14/06 | | 620 |
| | 9/13/06 | | 620 |
| | 9/12/06 | | 620 |
| | 9/11/06 | | 620 |
| | 9/7/06 | | 620 |
| | 9/6/06 | | 620 |
| | 9/5/06 | | 620 |
| | 9/1/06 | | 620 |
| | 8/31/06 | | 620 |
| | 8/30/06 | | 620 |
| | 8/29/06 | | 620 |
| | 8/28/06 | | 620 |
| | 8/25/06 | | 620 |
| | 8/24/06 | | 620 |
| | 8/23/06 | | 620 |
| | 8/22/06 | | 620 |
| | 8/21/06 | | 620 |
| | 8/18/06 | | 620 |
| | 8/17/06 | | 620 |
| | 8/16/06 | | 620 |
| | 8/15/06 | | 620 |
| | 8/14/06 | | 620 |
| | 8/11/06 | | 620 |
| | 8/10/06 | | 620 | | 735 |
| | 8/9/06 | | 620 |
| | 8/8/06 | | 620 |
| | 8/7/06 | | 620 |
| | 8/4/06 | | 620 |
| | 8/3/06 | | 620 |
| | 8/2/06 | | 620 |
| | 8/1/06 | | 620 | | | | | 497 |
| | 7/31/06 | | 620 |
| | 7/28/06 | | 620 |
| | 7/27/06 | | 620 |
| | 7/26/06 | | 620 |
| | 7/25/06 | | 620 |
| | 7/24/06 | | 620 |
| | 7/21/06 | | 620 |
| | 7/20/06 | | 620 |
| | 7/19/06 | | 620 |
| | 7/18/06 | | 620 |
| | 7/17/06 | | 620 |
| | 7/14/06 | | 620 |
| | 7/13/06 | | 620 |
| | 7/12/06 | | 620 |
| | 7/11/06 | | 620 |
| | 7/10/06 | | 620 |
| | 7/7/06 | | 620 |
| | 7/6/06 | | 620 |
| | 6/1/06 | | 735 |
| | 5/1/06 | | 10 | | 689 | | | 485BPOS, 497 |
| | 4/30/06 | | 15 | | 156 |
| | 4/27/06 | | 735 | | | | | 485BPOS |
| | 1/17/06 | | 11 | | 698 |
| | 1/16/06 | | 11 | | 37 |
| | 1/1/06 | | 20 |
| | 12/31/05 | | 672 | | 701 | | | 24F-2NT, NSAR-U |
| | 12/29/05 | | 735 | | | | | 485BPOS |
| | 12/19/05 | | 619 |
| | 12/16/05 | | 619 | | | | | 485BXT |
| | 12/14/05 | | 619 |
| | 12/13/05 | | 619 |
| | 12/12/05 | | 619 |
| | 12/9/05 | | 619 |
| | 12/7/05 | | 619 |
| | 12/6/05 | | 619 |
| | 12/5/05 | | 619 |
| | 12/2/05 | | 619 |
| | 12/1/05 | | 619 |
| | 11/30/05 | | 619 |
| | 11/29/05 | | 619 |
| | 11/28/05 | | 619 |
| | 11/25/05 | | 619 |
| | 11/23/05 | | 619 |
| | 11/22/05 | | 619 |
| | 11/21/05 | | 619 |
| | 11/18/05 | | 619 |
| | 11/17/05 | | 619 |
| | 11/16/05 | | 619 |
| | 11/15/05 | | 619 |
| | 11/14/05 | | 619 |
| | 11/11/05 | | 619 |
| | 11/10/05 | | 619 |
| | 11/9/05 | | 619 |
| | 11/8/05 | | 619 |
| | 11/7/05 | | 619 |
| | 11/4/05 | | 619 |
| | 11/3/05 | | 619 |
| | 11/2/05 | | 619 |
| | 11/1/05 | | 619 | | | | | 497 |
| | 10/31/05 | | 619 |
| | 10/28/05 | | 619 |
| | 10/27/05 | | 619 |
| | 10/26/05 | | 619 |
| | 10/25/05 | | 619 | | 735 |
| | 10/24/05 | | 619 |
| | 10/21/05 | | 619 | | | | | 485APOS |
| | 10/20/05 | | 619 | | 735 | | | 485APOS |
| | 10/19/05 | | 619 |
| | 10/18/05 | | 619 |
| | 10/17/05 | | 619 |
| | 10/14/05 | | 619 |
| | 10/13/05 | | 619 |
| | 10/12/05 | | 619 |
| | 10/11/05 | | 619 |
| | 10/10/05 | | 619 |
| | 10/7/05 | | 619 |
| | 10/6/05 | | 619 |
| | 10/5/05 | | 619 |
| | 10/4/05 | | 619 |
| | 10/3/05 | | 619 |
| | 9/30/05 | | 619 |
| | 9/29/05 | | 619 |
| | 9/27/05 | | 619 |
| | 9/26/05 | | 619 |
| | 9/23/05 | | 619 |
| | 9/22/05 | | 619 |
| | 9/21/05 | | 619 |
| | 9/19/05 | | 619 |
| | 9/16/05 | | 619 |
| | 9/15/05 | | 619 |
| | 9/14/05 | | 619 |
| | 9/13/05 | | 619 |
| | 9/6/05 | | 59 | | | | | 485BPOS |
| | 9/2/05 | | 735 | | | | | 485BPOS |
| | 6/21/05 | | 735 | | | | | 485APOS |
| | 5/2/05 | | 672 | | 677 | | | 485BPOS |
| | 4/27/05 | | 735 | | | | | 485BPOS |
| | 3/7/05 | | 11 | | 37 | | | 497 |
| | 3/4/05 | | 618 |
| | 3/3/05 | | 618 |
| | 3/2/05 | | 618 |
| | 3/1/05 | | 618 | | 738 |
| | 2/28/05 | | 618 | | | | | NSAR-U |
| | 2/25/05 | | 618 |
| | 2/24/05 | | 618 |
| | 2/23/05 | | 618 | | | | | 485APOS, 497 |
| | 2/22/05 | | 618 | | | | | 497 |
| | 2/18/05 | | 618 |
| | 2/17/05 | | 618 |
| | 2/16/05 | | 618 |
| | 2/15/05 | | 618 |
| | 2/14/05 | | 618 | | | | | 485APOS, 497J |
| | 2/11/05 | | 618 |
| | 2/10/05 | | 618 |
| | 2/9/05 | | 618 |
| | 2/8/05 | | 618 |
| | 2/7/05 | | 618 |
| | 2/4/05 | | 618 |
| | 2/3/05 | | 618 |
| | 2/2/05 | | 618 |
| | 2/1/05 | | 618 |
| | 1/31/05 | | 618 |
| | 1/28/05 | | 618 |
| | 1/27/05 | | 618 |
| | 1/26/05 | | 618 |
| | 1/25/05 | | 618 |
| | 1/24/05 | | 618 |
| | 1/21/05 | | 618 |
| | 1/20/05 | | 618 |
| | 1/19/05 | | 618 |
| | 1/18/05 | | 618 |
| | 1/14/05 | | 618 |
| | 1/13/05 | | 618 |
| | 1/12/05 | | 618 |
| | 1/11/05 | | 618 |
| | 1/10/05 | | 618 |
| | 1/7/05 | | 618 |
| | 1/6/05 | | 618 | | 735 | | | N-4 |
| | 1/5/05 | | 618 |
| | 1/4/05 | | 618 |
| | 1/3/05 | | 618 |
| | 12/31/04 | | 618 | | 701 | | | 24F-2NT, NSAR-U |
| | 12/30/04 | | 618 | | 735 | | | N-4/A |
| | 12/29/04 | | 618 |
| | 12/28/04 | | 618 |
| | 12/27/04 | | 618 |
| | 12/23/04 | | 618 | | | | | N-4/A |
| | 12/22/04 | | 618 | | | | | 497J |
| | 12/21/04 | | 618 |
| | 12/20/04 | | 618 |
| | 12/17/04 | | 618 |
| | 12/16/04 | | 618 | | | | | 485BPOS |
| | 12/15/04 | | 618 |
| | 12/14/04 | | 618 |
| | 12/13/04 | | 618 |
| | 12/10/04 | | 618 |
| | 12/9/04 | | 618 |
| | 12/8/04 | | 618 |
| | 12/7/04 | | 618 |
| | 12/6/04 | | 618 |
| | 12/3/04 | | 618 |
| | 12/2/04 | | 618 |
| | 12/1/04 | | 618 |
| | 10/4/04 | | 684 | | 735 | | | 485BPOS, 497, N-4 |
| | 10/1/04 | | 687 | | 689 |
| | 8/19/04 | | 735 | | | | | N-4 |
| | 7/22/04 | | 735 | | | | | 485APOS |
| | 5/24/04 | | 617 |
| | 5/21/04 | | 617 |
| | 5/20/04 | | 617 |
| | 5/19/04 | | 617 |
| | 5/18/04 | | 617 |
| | 5/17/04 | | 617 |
| | 5/14/04 | | 617 |
| | 5/13/04 | | 617 |
| | 5/12/04 | | 617 |
| | 5/11/04 | | 617 |
| | 5/10/04 | | 617 |
| | 5/7/04 | | 617 | | | | | 497 |
| | 5/6/04 | | 617 | | | | | 497 |
| | 5/5/04 | | 617 |
| | 5/4/04 | | 617 | | | | | 497 |
| | 5/3/04 | | 617 |
| | 4/30/04 | | 617 | | | | | 485BPOS |
| | 4/29/04 | | 617 | | | | | 485BPOS |
| | 4/28/04 | | 617 |
| | 4/27/04 | | 617 |
| | 4/26/04 | | 617 |
| | 4/23/04 | | 617 | | | | | 497 |
| | 4/22/04 | | 617 |
| | 4/21/04 | | 617 |
| | 4/20/04 | | 617 |
| | 4/19/04 | | 617 |
| | 4/16/04 | | 617 |
| | 4/15/04 | | 617 |
| | 4/14/04 | | 617 |
| | 4/13/04 | | 617 |
| | 4/12/04 | | 617 |
| | 4/8/04 | | 617 |
| | 4/7/04 | | 617 |
| | 4/6/04 | | 617 |
| | 4/5/04 | | 617 |
| | 4/2/04 | | 617 |
| | 4/1/04 | | 617 |
| | 3/31/04 | | 617 |
| | 3/30/04 | | 617 | | | | | 24F-2NT |
| | 3/29/04 | | 617 |
| | 3/26/04 | | 617 |
| | 3/25/04 | | 617 |
| | 3/24/04 | | 617 |
| | 3/23/04 | | 617 |
| | 3/22/04 | | 617 |
| | 3/19/04 | | 617 |
| | 3/18/04 | | 617 |
| | 3/17/04 | | 617 |
| | 3/16/04 | | 617 |
| | 3/15/04 | | 617 |
| | 3/12/04 | | 617 |
| | 3/11/04 | | 617 |
| | 3/10/04 | | 617 |
| | 3/9/04 | | 617 |
| | 3/8/04 | | 617 |
| | 3/5/04 | | 617 |
| | 3/4/04 | | 617 |
| | 3/3/04 | | 617 |
| | 3/2/04 | | 617 |
| | 3/1/04 | | 617 |
| | 2/27/04 | | 617 | | | | | NSAR-U |
| | 2/26/04 | | 617 |
| | 2/25/04 | | 617 |
| | 2/24/04 | | 617 |
| | 2/23/04 | | 617 | | | | | 497, AW |
| | 9/22/03 | | 735 | | | | | 485BPOS |
| | 8/14/03 | | 616 |
| | 8/13/03 | | 616 |
| | 8/12/03 | | 616 |
| | 8/11/03 | | 616 |
| | 8/8/03 | | 616 |
| | 8/7/03 | | 616 |
| | 8/6/03 | | 616 |
| | 8/5/03 | | 616 |
| | 8/4/03 | | 616 |
| | 8/1/03 | | 616 |
| | 7/31/03 | | 616 |
| | 7/30/03 | | 616 |
| | 7/29/03 | | 616 |
| | 7/28/03 | | 616 |
| | 7/25/03 | | 616 |
| | 7/24/03 | | 616 |
| | 7/23/03 | | 616 |
| | 7/22/03 | | 616 |
| | 7/21/03 | | 616 |
| | 7/18/03 | | 616 |
| | 7/17/03 | | 616 |
| | 7/15/03 | | 616 |
| | 7/14/03 | | 616 | | | | | 497 |
| | 7/11/03 | | 616 |
| | 7/10/03 | | 616 |
| | 7/9/03 | | 616 |
| | 7/8/03 | | 616 |
| | 7/7/03 | | 616 |
| | 7/3/03 | | 616 |
| | 7/2/03 | | 616 |
| | 7/1/03 | | 616 |
| | 6/30/03 | | 616 |
| | 6/27/03 | | 616 |
| | 6/26/03 | | 616 |
| | 6/25/03 | | 616 |
| | 6/24/03 | | 616 |
| | 6/23/03 | | 616 |
| | 6/20/03 | | 616 | | | | | 485APOS, 485BPOS, AW |
| | 6/19/03 | | 616 | | | | | 485BPOS |
| | 6/18/03 | | 616 |
| | 6/17/03 | | 616 |
| | 6/16/03 | | 616 |
| | 6/13/03 | | 616 |
| | 6/12/03 | | 616 |
| | 6/11/03 | | 616 |
| | 6/10/03 | | 616 |
| | 6/9/03 | | 616 |
| | 6/6/03 | | 616 |
| | 6/5/03 | | 616 |
| | 6/4/03 | | 616 |
| | 6/3/03 | | 616 |
| | 6/2/03 | | 616 |
| | 5/30/03 | | 616 |
| | 5/29/03 | | 616 |
| | 5/28/03 | | 616 |
| | 5/27/03 | | 616 |
| | 5/23/03 | | 616 |
| | 5/22/03 | | 616 |
| | 5/21/03 | | 616 |
| | 5/20/03 | | 616 |
| | 5/19/03 | | 616 |
| | 5/15/03 | | 616 |
| | 5/14/03 | | 616 |
| | 5/13/03 | | 616 |
| | 5/12/03 | | 616 |
| | 9/26/02 | | 615 |
| | 9/25/02 | | 615 |
| | 9/24/02 | | 615 |
| | 9/23/02 | | 615 |
| | 9/20/02 | | 615 |
| | 9/19/02 | | 615 |
| | 9/18/02 | | 615 |
| | 9/17/02 | | 615 |
| | 9/16/02 | | 615 |
| | 9/13/02 | | 615 |
| | 9/12/02 | | 615 |
| | 9/11/02 | | 615 |
| | 9/10/02 | | 615 |
| | 9/6/02 | | 615 |
| | 9/5/02 | | 615 |
| | 9/4/02 | | 615 |
| | 9/3/02 | | 615 |
| | 8/30/02 | | 615 |
| | 8/29/02 | | 615 |
| | 8/28/02 | | 615 |
| | 8/26/02 | | 615 |
| | 8/23/02 | | 615 |
| | 8/20/02 | | 615 |
| | 8/19/02 | | 615 |
| | 8/16/02 | | 615 |
| | 8/15/02 | | 615 |
| | 8/14/02 | | 615 |
| | 8/13/02 | | 615 |
| | 8/12/02 | | 615 |
| | 8/8/02 | | 615 |
| | 8/7/02 | | 615 |
| | 8/6/02 | | 615 |
| | 8/5/02 | | 615 |
| | 8/1/02 | | 615 |
| | 7/31/02 | | 615 |
| | 7/30/02 | | 615 |
| | 7/29/02 | | 615 |
| | 7/26/02 | | 615 |
| | 7/25/02 | | 615 |
| | 7/24/02 | | 615 |
| | 7/22/02 | | 615 |
| | 7/18/02 | | 615 |
| | 7/16/02 | | 615 |
| | 7/15/02 | | 615 |
| | 7/12/02 | | 615 |
| | 7/11/02 | | 615 |
| | 7/9/02 | | 615 |
| | 7/8/02 | | 615 |
| | 7/5/02 | | 615 |
| | 7/3/02 | | 615 |
| | 7/2/02 | | 615 |
| | 7/1/02 | | 615 |
| | 6/28/02 | | 615 |
| | 6/27/02 | | 615 |
| | 6/26/02 | | 615 |
| | 6/25/02 | | 615 |
| | 6/24/02 | | 615 |
| | 6/21/02 | | 615 |
| | 6/20/02 | | 615 |
| | 6/17/02 | | 615 |
| | 6/14/02 | | 615 |
| | 6/12/02 | | 615 |
| | 6/11/02 | | 615 |
| | 6/10/02 | | 615 |
| | 6/7/02 | | 615 |
| | 5/8/02 | | 735 | | | | | N-4/A |
| | 11/27/98 | | 665 |
| | 6/30/98 | | 735 |
| | 10/3/97 | | 735 | | | | | N-4 EL, N-8A |
| | 9/12/97 | | 21 | | 665 |
| List all Filings |
4 Subsequent Filings that Reference this Filing
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Filing Submission 0001045032-09-000040 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
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