Registration Statement for a Separate Account (Unit Investment Trust) — Form N-4
Filing Table of Contents
Document/Exhibit Description Pages Size
1: N-4 EL Registration Statement for a Separate Account 41 204K
(Unit Investment Trust)
2: EX-99.B1 Miscellaneous Exhibit 6 17K
3: EX-99.B3 Miscellaneous Exhibit 3 14K
4: EX-99.B4 Miscellaneous Exhibit 22 84K
5: EX-99.B5 Miscellaneous Exhibit 6± 22K
6: EX-99.B6.(A) Miscellaneous Exhibit 20 38K
7: EX-99.B6.(B) Miscellaneous Exhibit 28 43K
N-4 EL — Registration Statement for a Separate Account (Unit Investment Trust)
Document Table of Contents
As filed with the Securities and Exchange Commission on October 3, 1997.
1933 Act File No: _____
1940 Act File No :_____
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. _____ [X]
Post-Effective Amendment No. _____ [ ]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. _____ [X]
JNLNY Separate Account I
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(Exact Name of Registrant)
Jackson National Life Insurance Company of New York
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(Name of Depositor)
2900 Westchester Avenue, Purchase, New York 10577
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(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code:
(888) 367-5651
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With a copy to:
Thomas J. Meyer Judith A. Hasenauer
Vice Pres. & General Counsel Principal
Jackson National Life Insurance Blazzard, Grodd &
Company of New York Hasenauer, P.C.
5901 Executive Dr. P.O. Box 5108
Lansing, MI 48911 Westport, CT 06881
(Name and Address of Agent for Service)
Approximate date of proposed public offering: (Upon the effective date of this
Registration Statement)
The Registrant is registering an indefinite number of securities by this
Registration Statement in accordance with Rule 24f-2 under the Investment
Company Act of 1940.
The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
JNLNY SEPARATE ACCOUNT I
REFERENCE TO ITEMS REQUIRED BY FORM N-4
N-4 Item Caption in Prospectus or
Statement of Additional
Information relating to
each Item
Part A. Information Required in a Prospectus Prospectus
1. Cover Page Cover Page
2. Definitions Not Applicable
3. Synopsis Key Facts; Fee Tables
4. Condensed Financial Information Advertising
5. General Description of Registrant, The Company; The
Depositor and Portfolio Companies Separate Account;
Investment Portfolios
6. Deductions Contract Charges;
Other Information
7. General Description of Variable The Annuity Contract;
Annuity Contracts Purchases; Transfers;
Access To Your Money;
Income Payments (The
Income Phase); Death
Benefit; Other
Information
8. Annuity Period Income Payments (The
Income Phase)
9. Death Benefit Death Benefit
10. Purchases and Contract Value Purchases
11. Redemptions Access To Your Money
12. Taxes Taxes
13. Legal Proceedings Other Information
14. Table of Contents of the Statement of Appendix A
Additional Information
Information Required in a Statement of Statement of
Part B. Additional Information Additional Information
15. Cover Page Cover Page
16. Table of Contents Table of Contents
17. General Information and History General Information
and History
18. Services Services
19. Purchase of Securities Being Offered Purchase of Securities
Being Offered
20. Underwriters Underwriters
21. Calculation of Performance Data Calculation of
Performance
22. Annuity Payments Income Payments; Net
Investment Factor
23. Financial Statements Not Applicable
Part C.
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C of this Amendment to Registration Statement.
Please read this prospectus before investing, and keep it on file for future
reference. It contains important information about the Perspective Fixed and
Variable Annuity.
To learn more about the Perspective Fixed and Variable Annuity contract, you
can obtain a free copy of the Statement of Additional Information (SAI) dated
January 1, 1998, by calling Jackson National NY at (888) 367-5651 or by writing
Jackson National NY at: Annuity Service Center, 8055 East Tufts Avenue, Second
Floor, Denver, Colorado 80237. The SAI has been filed with the Securities and
Exchange Commission (SEC) and is legally a part of this prospectus. The Table
of Contents of the SAI is in Appendix A of this prospectus. The SEC maintains
a website (http://www.sec.gov) that contains the SAI, material incorporated by
reference and other information regarding registrants that file electronically
with the SEC.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC NOR HAS THE
SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
THE PERSPECTIVE FIXED AND VARIABLE ANNUITY
ISSUED BY JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK AND JNLNY
SEPARATE ACCOUNT I
The fixed and variable annuity contract is an individual, flexible premium
deferred annuity with 4 guaranteed accounts which offer an interest rate that
is guaranteed by Jackson National Life Insurance Company of New York (Jackson
National NY) and 16 investment portfolios. You can put your money in any of the
guaranteed accounts and/or the investment portfolios.
The investment portfolios purchase shares of the following series of the JNL
Series Trust:
JNL Aggressive Growth Series
JNL Capital Growth Series
JNL Global Equities Series
JNL/Alger Growth Series
JNL/Eagle Core Equity Series
JNL/Eagle SmallCap Equity Series
JNL/Putnam Growth Series
JNL/Putnam Value Equity Series
PPM America/JNL Balanced Series
PPM America/JNL High Yield Bond Series
PPM America/JNL Money Market Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL U.S. Government
& Quality Bond Series
T. Rowe Price/JNL Established Growth Series
T. Rowe Price/JNL International Equity
Investment Series
T. Rowe Price/JNL Mid-Cap Growth Series
JANUARY 1, 1998
TABLE OF CONTENTS
Key Facts
Fee Table
The Annuity Contract
The Company
The Guaranteed Accounts
The Separate Account
Investment Portfolios
Contract Charges
Purchases
Transfers
Access to Your Money
Income Payments (The Income Phase)
Death Benefit
Taxes
Other Information
Appendix A
KEY FACTS
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Annuity Service Center: 1 (888) 367-5651
Mail Address: P.O. Box 378002, Denver, Colorado 80237-8002
Delivery Address: 8055 East Tufts Avenue, Second Floor, Denver, Colorado 80237
The Annuity Contract The fixed and variable annuity contract offered by Jackson National NY provides a means for investing
on a tax-deferred basis in the guaranteed accounts of Jackson National NY and the investment
portfolios. The contract is intended for retirement savings or other long-term investment purposes and
provides for a death benefit and income options.
The contract has two phases: the accumulation phase
and the income phase. During the accumulation phase,
earnings accumulate on a tax-deferred basis and are
taxed as income when you make a withdrawal. The
income phase occurs when you begin receiving regular
payments from your contract. The amount of money you
accumulate in your contract during the accumulation
phase will determine the amount of income payments
during the income phase.
Investment Options You can put money into any or all of the guaranteed accounts
and/or the investment portfolios.
The guaranteed accounts offer an interest rate that
is guaranteed by Jackson National NY. While your
money is in a guaranteed account, the interest your
money earns and your principal are guaranteed by
Jackson National NY.
The investment portfolios purchase shares of series
of mutual funds. These series are described in the
attached JNL Series Trust prospectus. The value of the
investment portfolios will vary in accordance with the
investment performance of the series. You bear the
investment risk under the contract for all amounts
allocated to the investment portfolios.
Expenses The contract has insurance features and investment features, and there
are costs related to each.
Jackson National NY makes a deduction for its insurance charges which is
equal to 1.40% of the daily value of the contracts invested
in the investment portfolios. During the
accumulation phase, Jackson National NY deducts a $30
annual contract maintenance charge from your
contract.
There are also investment charges which range from
.75% to 1.25% of the average daily value of the
series, depending on the series.
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If you take your money out of the contract, Jackson
National NY may assess a withdrawal charge. The
withdrawal charge starts at 7% in the first year
and declines 1% a year to 0% after 7 years.
Jackson National NY may assess a state premium tax
charge which ranges from 0-4%, depending upon the
state, when you begin receiving regular income
payments from your contract, when you make a
withdrawal or, in states where required, at the time
premium payments are made.
Purchases Under most circumstances, you can buy a contract for
$5,000 or more ($2,000 or more for a qualified plan
contract). You can add $500 ($50 under the automatic
payment plan) or more at any time during the accumulation
phase.
Access to Your Money You can take money out of your contract during the
accumulation phase. At any time during the accumulation
phase, you may withdraw premiums which are not subject to
a withdrawal charge (premiums in your annuity for seven
years or longer and not previously withdrawn). Once
every year, you may withdraw the greater of earnings or
10% of premiums paid (not yet withdrawn). Withdrawals in
excess of that will be charged a withdrawal charge. You
may also have to pay income tax and a tax penalty on any
money you take out.
Income Payments If you want to receive regular income from your annuity,
you can choose one of four options: (1) monthly payments
for the annuitant's life; (2) monthly payments for the
annuitant's life and the life of another person (usually
the annuitant's spouse); (3) monthly payments for the
annuitant's life, but with payments continuing to you or
your designated beneficiary for 10 or 20 years if the
annuitant dies before the end of the selected period; and
(4) payments for a period of 5 to 30 years.
During the income phase, you have the same investment
choices you had during the accumulation phase. You
can choose to have payments come from the guaranteed
accounts, the investment portfolios or both. If you
choose to have any part of your payments come from
the investment portfolios, the dollar amount of your
payments may go up or down. If you choose a variable
income option, you may make transfers between
investment portfolios but you may not make transfers
in to or out of the guaranteed accounts.
Death Benefit If you die before moving to the income phase, the person
you have chosen as your beneficiary will receive a
death benefit. The death benefit equals: (a) current contract value
OR (b) the total premiums (less withdrawals, withdrawal charges
and premium taxes) OR (c) the contract value at the end of the 7th contract
year PLUS all premiums made since the 7th year (less withdrawals, withdrawal
charges and premium taxes) -- whichever is GREATEST. The death benefit under
(c) will never exceed 250% of premiums paid, less partial withdrawals.
Free Look You can cancel the contract within twenty days after receiving it. On the day
we receive the contract, Jackson National NY will return the full premium allocated
to the guaranteed accounts. Jackson National NY will also refund the premium allocated
to the investment portfolios less the amount credited to the investment portfolios plus
the contract value in the investment portfolios.
FEE TABLE
OWNER TRANSACTION EXPENSES
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Withdrawal Charge (as a percentage of premium payments):
Contribution Year of Premium Payment 1 2 3 4 5 6 7 Thereafter
Charge 7% 6% 5% 4% 3% 2% 1% 0%
Transfer Fee:
No charge for first 15 transfers in a contract year; thereafter, the fee
is $25 per transfer.
Contract Maintenance Charge:
$30 per contract per year
SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of average account value)
Insurance Charges 1.40%
SERIES EXPENSES
(as a percentage of the average daily net assets of the series underlying an
investment portfolio)
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Other Expenses Total Series
Management (After Annual
JNL SERIES TRUST Fee Reimbursement) Expenses
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JNL Aggressive Growth Series .95 % .15 % 1.10 %
JNL Capital Growth Series .95 % .15 % 1.10 %
JNL Global Equities Series 1.00 % .15 % 1.15 %
JNL/Alger Growth Series .975 % .15 % 1.125%
JNL/Eagle Core Equity Series .90 % .15 %* 1.05 %
JNL/Eagle SmallCap Equity Series .95 % .15 %* 1.10 %
JNL/Putnam Growth Series ** .90 % .15 % 1.05 %
JNL/Putnam Value Equity Series ** .90 % .15 % 1.05 %
PPM America/JNL Balanced Series ** .75 % .15 % .90 %
PPM America/JNL High Yield Bond Series .75 % .15 % .90 %
PPM America/JNL Money Market Series .60 % .15 % .75 %
Salomon Brothers/JNL Global Bond Series .85 % .15 % 1.00 %
Salomon Brothers/JNL U.S. Government & Quality Bond Series .70 % .15 % .85 %
T. Rowe Price/JNL Established Growth Series .85 % .15 % 1.00 %
T. Rowe Price/JNL International Equity Investment Series 1.10 % .15 % 1.25 %
T. Rowe Price/JNL Mid-Cap Growth Series .95 % .15 % 1.10 %
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*The JNL/Eagle Core Equity Series and the JNL/Eagle SmallCap Equity Series
commenced operations on September 16, 1996. Estimated expenses for the first
fiscal year of operation are shown. Actual expenses may be greater or lesser
than those shown.
**Prior to May 1, 1997, the management fee for the JNL/Putnam Growth
Series was .90%, the management fee for the JNL/Putnam Value Equity Series was
.75%, and the management fee for the PPM America/JNL Balanced Series was .90%.
Currently, each of the Series is reimbursed for annual expenses (excluding
management fees) in excess of .15% of average daily net assets. Prior to
reimbursement, total Series annual expenses as a percentage of net assets for
the period ended December 31, 1996, were: JNL Aggressive Growth Series --
1.40%; JNL Capital Growth Series -- 1.27%; JNL Global Equities Series -- 1.63%;
JNL/Alger Growth Series -- 1.19%; JNL/Putnam Growth Series -- 1.27%; JNL/Putnam
Value Equity Series -- 1.53%; PPM America/JNL Balanced Series -- 1.22%; PPM
America/JNL High Yield Bond Series -- 1.21%; PPM America/JNL Money Market Series
-- .85%; Salomon
Brothers/JNL Global Bond Series -- 1.44%; Salomon Brothers/JNL U.S. Government
& Quality Bond Series -- 1.37%; T. Rowe Price/JNL Established Growth Series --
1.11%; T. Rowe Price/JNL International Equity Investment Series -- 1.29%; and
T. Rowe Price/JNL Mid-Cap Growth Series -- 1.14%; and are expected to be:
JNL/Eagle Core Equity Series -- 4.57% and JNL/Eagle SmallCap Equity Series --
4.77%. Voluntary reimbursements to these Series may be modified or
discontinued at any time.
EXAMPLES
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets: (a) upon surrender at the end of each time period;
(b) if the contract is not surrendered or is
annuitized after the first year.
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Time Periods
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1 3
year years
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JNL Aggressive Growth Portfolio (a) $ 96 $129
(b) 26 79
JNL Capital Growth Portfolio (a) 96 129
(b) 26 79
JNL Global Equities Portfolio (a) 96 131
(b) 26 81
JNL/Alger Growth Portfolio (a) 96 130
(b) 26 80
JNL/Eagle Core Equity Portfolio (a) 95 128
(b) 25 78
JNL/Eagle SmallCap Equity Portfolio (a) 96 129
(b) 26 79
JNL/Putnam Growth Portfolio (a) 95 128
(b) 25 78
JNL/Putnam Value Equity Portfolio (a) 95 128
(b) 25 78
PPM America/JNL Balanced Portfolio (a) 94 123
(b) 24 73
PPM America/JNL High Yield Bond Portfolio (a) 94 123
(b) 24 73
PPM America/JNL Money Market Portfolio (a) 92 118
(b) 22 68
Salomon Brothers/JNL Global Bond Portfolio (a) 95 126
(b) 25 76
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio (a) 93 122
(b) 23 72
T. Rowe Price/JNL Established Growth Portfolio (a) 95 126
(b) 25 76
T. Rowe Price/JNL International Equity Investment Portfolio (a) 97 134
(b) 27 84
T. Rowe Price/JNL Mid-Cap Growth Portfolio (a) 96 129
(b) 26 79
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EXPLANATION OF FEE TABLE AND EXAMPLES
The purpose of the Fee Table and Examples is to assist you in understanding the
various costs and expenses that you will bear directly or indirectly. The Fee
Table reflects the expenses of the separate account and the mutual funds
underlying the investment portfolios. Premium taxes may also apply.
The Examples reflect the contract maintenance charge which is determined by
dividing the total amount of such charges expected to be collected during the
year by the total estimated average net assets of the investment portfolios.
A withdrawal charge is imposed on income payments which occur within one year
of the date the contract is issued.
THE EXAMPLE DOES NOT REPRESENT PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE
GREATER OR LESS THAN THOSE SHOWN.
THE ANNUITY CONTRACT
The fixed and variable annuity contract offered by Jackson National NY is a
contract between you, the owner, and Jackson National Life Insurance Company of
New York, an insurance company. The contract provides a means for investing on
a tax-deferred basis in guaranteed accounts and investment portfolios.
The contract is intended for retirement savings or other long-term investment
purposes and provides for a death benefit and guaranteed income options.
The contract, like all deferred annuity contracts, has two phases: the
accumulation phase and the income phase. During the accumulation phase,
earnings accumulate on a tax-deferred basis and are taxed as income when you
make a withdrawal.
The contract offers guaranteed accounts. The guaranteed accounts offer an
interest rate that is guaranteed by Jackson National NY for the duration of the
guaranteed account period. While your money is in a guaranteed account, the
interest your money earns and your principal are guaranteed by Jackson National
NY. The value of a guaranteed account may be reduced if you make a withdrawal
prior to the end of the guaranteed account period, but will never be less than
the premium payments accumulated at 3% per year. If you choose to have your
annuity payments come from the guaranteed accounts, your payments will remain
level throughout the entire income phase.
The contract also offers investment portfolios. The investment portfolios
are designed to offer a higher return than the guaranteed accounts. HOWEVER,
THIS IS NOT GUARANTEED. IT IS POSSIBLE FOR YOU TO LOSE YOUR MONEY. If you put
money in the investment portfolios, the amount of money you are able to
accumulate in your contract during the accumulation phase depends, in part,
upon the performance of the investment portfolios you select. The amount of
the income payments you receive during the income phase also will depend on the
performance of the investment portfolios you choose for the income phase.
As the owner, you can exercise all the rights under the contract. You and your
spouse can be joint owners. You can assign the contract at any time during
your lifetime but Jackson National NY will not be bound until we receive
written notice of the assignment.
THE COMPANY
Jackson National NY is a stock life insurance company organized under the laws
of the state of New York in July 1995. Its legal domicile and principal
business address is 2900 Westchester Avenue, Purchase, New York 10577. Jackson
National NY, a wholly-owned subsidiary of Jackson National Life Insurance
Company, is admitted to conduct life insurance and annuity business in the
states of New York and Michigan.
THE GUARANTEED ACCOUNTS
If you select a guaranteed account, your money will be placed with Jackson
National NY's other assets. The guaranteed accounts are not registered with
the SEC and the SEC does not review the information we provide to you about the
guaranteed accounts. Your contract contains a more complete description of the
guaranteed accounts.
THE SEPARATE ACCOUNT
The JNLNY Separate Account I was established by Jackson National NY on
September 12, 1997, pursuant to the provisions of New York law, as a segregated
asset account of the company. The separate account meets the definition of a
"separate account" under the federal securities laws and is registered with the
SEC as a unit investment trust under the Investment Company Act of 1940, as
amended.
The assets of the separate account legally
belong to Jackson National NY. However, the contract assets in the separate
account are not chargeable with liabilities arising out of any other business
Jackson National NY may conduct. All of the income, gains and losses resulting
from these assets are credited to or charged against the contracts and not
against any other contracts Jackson National NY may issue.
The separate account is divided into investment portfolios. Jackson
National NY does not guarantee the investment performance of the separate
account or the investment portfolios.
INVESTMENT PORTFOLIOS
You can put money in any or all of the investment portfolios. The investment
portfolios purchase shares of the following series of the JNL Series Trust:
JNL Aggressive Growth Series
JNL Capital Growth Series
JNL Global Equities Series
JNL/Alger Growth Series
JNL/Eagle Core Equity Series
JNL/Eagle SmallCap Equity Series
JNL/Putnam Growth Series*
JNL/Putnam Value Equity Series*
PPM America/JNL Balanced Series
PPM America/JNL High Yield Bond Series
PPM America/JNL Money Market Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL U.S. Government & Quality Bond Series
T. Rowe Price/JNL Established Growth Series
T. Rowe Price/JNL International Equity Investment Series
T. Rowe Price/JNL Mid-Cap Growth Series
*Prior to May 1, 1997, the JNL/Putnam Growth Portfolio was the JNL/Phoenix
Investment Counsel Growth Portfolio, the JNL/Putnam Value Equity Portfolio was
the PPM America/JNL Value Equity Portfolio, and the PPM America/JNL Balanced
Portfolio was the JNL/Phoenix Investment Counsel Balanced Portfolio.
The series are described in the attached JNL Series Trust prospectus.
Jackson National Financial Services, Inc. serves as investment adviser for all
of the series. Janus Capital Corporation serves as sub-adviser for the JNL
Aggressive Growth, JNL Capital Growth and JNL Global Equities Series; Fred
Alger Management, Inc. serves as sub-adviser for the JNL/Alger Growth Series;
Eagle Asset Management, Inc. serves as sub-adviser for the JNL/Eagle Core
Equity and JNL/Eagle SmallCap Equity Series; Putnam Investment Management, Inc.
serves as sub-adviser for the JNL/Putnam Growth and JNL/Putnam Value Equity
Series (prior to May 1, 1997, the sub-adviser for the JNL/Putnam Growth Series
was Phoenix Investment Counsel, Inc. and the sub-adviser for the JNL/Putnam
Value Equity Series was PPM America, Inc.); PPM America, Inc. serves as
sub-adviser for the PPM America/JNL Balanced, PPM America/JNL High Yield Bond
and PPM America/JNL Money Market Series (prior to May 1, 1997, the sub-adviser
for the PPM America/JNL Balanced Series was Phoenix Investment Counsel, Inc.);
Salomon Brothers Asset Management Inc serves as sub-adviser for the Salomon
Brothers/JNL Global Bond and Salomon Brothers/JNL U.S. Government & Quality
Bond Series; T. Rowe Price Associates, Inc. serves as sub-adviser for the T.
Rowe Price/JNL Established Growth and T. Rowe Price/JNL Mid-Cap Growth Series;
and Rowe Price-Fleming International, Inc. serves as sub-adviser for the T.
Rowe Price/JNL International Equity Investment Series.
Depending on market conditions, you can make or lose money in any of the
investment portfolios. You should read the prospectus for the series carefully
before investing. Additional investment portfolios may be available in the
future.
Voting Rights
To the extent required by law, Jackson National NY will obtain from you and
other owners of the contracts instructions as to how to vote when the series
solicits proxies in conjunction with a vote of shareholders. When Jackson
National NY receives instructions, we will vote all the shares Jackson National
NY owns in proportion to those instructions.
Substitution
Jackson National NY may be required to substitute an investment portfolio with
another portfolio. We will not do this without the prior approval of the SEC.
Jackson National NY will give you notice of our intent to do this.
CONTRACT CHARGES
There are charges and other expenses associated with the contracts that reduce
the return on your investment in the contract. These charges and expenses are:
Insurance Charges
Each day Jackson National NY makes a deduction for its insurance charges. We do
this as part of our calculation of the value of the accumulation units and
annuity units. On an annual basis, this charge equals 1.40% of the daily value
of the contracts invested in an investment portfolio, after expenses have been
deducted. This charge is for the mortality risks, expense risks and
administrative expenses assumed by Jackson National NY.
Contract Maintenance Charge
During the accumulation phase, Jackson National NY deducts a $30 annual
contract maintenance charge on each anniversary of the date on which your
contract was issued. If you make a complete withdrawal from your contract, the
contract maintenance charge will also be deducted. This charge is for
administrative expenses.
Jackson National NY will not deduct this charge, if when the deduction is to be
made, the value of your contract is $50,000 or more. Jackson National NY may
discontinue this practice at any time.
Transfer Fee
A transfer fee of $25 will apply to transfers in excess of 15 in a contract
year. Jackson National NY may waive the transfer fee in connection with
pre-authorized automatic transfer programs, or may charge a lesser fee where
required by state law.
Withdrawal Charge
During the accumulation phase, you can make withdrawals from your contract. At
any time during the accumulation phase, you may withdraw premiums which are not
subject to a withdrawal charge (premiums in your annuity for seven years or
longer and not previously withdrawn). Once every year, you may withdraw the
greater of earnings or 10% of premiums paid (not yet withdrawn). Withdrawals
in excess of that will be charged a withdrawal charge starting at 7% in the
first year and declining 1% a year to 0% after 7 years. The withdrawal charge
compensates us for costs associated with selling the contracts.
For purposes of the withdrawal charge, Jackson National NY treats withdrawals
as coming from the oldest premium payment first. If you make a full
withdrawal, the withdrawal charge is based on premiums remaining in the
contract. If you withdraw only part of the value of your contract, we deduct
the withdrawal charge from the remaining value in your contract.
NOTE: For tax purposes, withdrawals are considered to have come from the last
money into the contract. Thus, for tax purposes, earnings are considered to
come out first.
Jackson National NY does not assess the withdrawal charge on any payments paid
out as (1) income payments after the first year, (2) death benefits or (3)
withdrawals necessary to satisfy the minimum distribution requirements of the
Internal Revenue Code.
Jackson National NY may reduce or eliminate the amount of the withdrawal charge
when the contract is sold under circumstances which reduce its sales expense.
Some examples are: the purchase of a contract by a large group of individuals
or an existing relationship between Jackson National NY and a prospective
purchaser. Jackson National NY will not deduct a withdrawal charge under a
contract issued to an officer, director, agent or employee of Jackson National
NY or any of its affiliates.
Other Expenses
There are deductions from and expenses paid out of the assets of the series.
These expenses are described in the attached JNL Series Trust prospectus.
Premium Taxes
Some states and other governmental entities charge premium taxes or other
similar taxes. Jackson National NY is responsible for the payment of these
taxes and may make a deduction from the value of the contract for them.
Premium taxes generally range from 0% to 4% depending on the state.
Income Taxes
Jackson National NY will make a deduction from the contract for any income
taxes which it incurs because of the contract. Currently, we are not making
any such deduction.
PURCHASES
You can buy a contract for $5,000 or more under most circumstances ($2,000 or
more for a qualified plan contract). The maximum we accept without our prior
approval is $1 million.
You can add $500 ($50 under the automatic payment plan) at any time during the
accumulation phase.
The minimum that you may allocate to a guaranteed account or investment
portfolio is $100. There is a $500 minimum balance requirement for each
guaranteed account and investment portfolio.
When you purchase a contract, Jackson National NY will allocate your premium to
one or more of the guaranteed accounts and/or the investment portfolios you
have selected. Your allocations must be in whole percentages ranging from 0%
to 100%. Jackson National NY will allocate additional premiums in the
same way unless you tell us otherwise.
Jackson National NY will issue your contract and allocate your first premium
within 2 business days after we receive your complete application and first
premium. If your application is not complete, we will contact you to get the
necessary information. If for some reason Jackson National NY is unable to
complete this process within 5 business days, we will either return your money
or get your permission to keep it until we receive all of the necessary
information.
The Jackson National NY business day closes when the New York Stock Exchange
closes, usually 4:00 p.m. Eastern time.
Accumulation Units
The contract value allocated to the investment portfolios will go up or down
depending on the performance of the portfolios. In order to keep track of the
value of your contract, Jackson National NY uses a unit of measure called an
accumulation unit. (An accumulation unit is similar to a share of a mutual
fund.) During the income phase it is called an annuity unit.
Every business day Jackson National NY determines the value of an accumulation
unit for each of the investment portfolios. This is done by:
1. determining the total amount of money invested in the
particular investment portfolio;
2. subtracting any insurance charges and any other charges, such
as taxes deducted;
3. dividing this amount by the number of outstanding accumulation units.
The value of an accumulation unit may go up or down from day to day.
When you make a premium payment, Jackson National NY credits your contract with
accumulation units. The number of accumulation units credited is determined at
the close of Jackson National's business day by dividing the amount of the
premium allocated to any investment portfolio by the value of the accumulation
unit for that investment portfolio.
TRANSFERS
You can transfer money between guaranteed accounts and investment portfolios
during the accumulation phase. During the income phase, you can transfer money
between investment portfolios.
You can make 15 transfers every year during the accumulation phase without
charge. The minimum amount that you can transfer is $100 (unless the transfer
is made under a pre-authorized automatic transfer program). If the remaining
value in a guaranteed account or investment portfolio would be less than $100
after a transfer, you must transfer the entire value or you may not make the
transfer.
ACCESS TO YOUR MONEY
You can have access to the money in your contract: (1) by making either a
partial or complete withdrawal or (2) by electing to receive income payments.
Your beneficiary can have access to the money in your contract when a death
benefit is paid.
When you make a complete withdrawal you will receive the value of the contract
on the day you made the withdrawal less any premium tax, less any contract
maintenance charge, and less any withdrawal charge. Except in connection with
the systematic withdrawal program, you must withdraw at least $500 or, if less,
the entire amount in the investment portfolio or guaranteed account from which
you are making the withdrawal. After your withdrawal, you must have at least
$100 left in the investment portfolio or guaranteed account.
INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY
WITHDRAWAL YOU MAKE.
There are limitations on withdrawals from a qualified plan referred to as a
403(b) annuity. See "Taxes."
Systematic Withdrawal Program
You can arrange to have money automatically sent to you periodically while your
contract is still in the accumulation phase. You will have to pay taxes on
money you receive and withdrawals you make before you reach 59 1/2 may be
subject to a 10% tax penalty.
We reserve the right to charge a fee for participation or to discontinue
offering this program in the future.
Suspension of Withdrawals
Jackson National NY may be required to suspend or delay withdrawals from a
contract when:
1. the New York Stock Exchange is closed (other than customary
weekend and holiday closings);
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists so that it is not reasonably practicable to
dispose of shares of the investment portfolios or determine
investment portfolio values;
4. the SEC, by order, may permit for the protection of owners.
Jackson National NY has reserved the right to defer payment for a withdrawal or
transfer from the guaranteed accounts for the period permitted by law, but not
more than six months.
INCOME PAYMENTS (THE INCOME PHASE)
The income phase occurs when you begin receiving regular payments from your
contract. The income date is the month and year in which those payments begin.
The income date must be at least one year after your contract is issued. You
can choose the income date and an income option. The income options are
described below.
If you do not choose an income option, we will assume that you selected Option
3 which provides a life annuity with 120 months of guaranteed payments.
You can change the income date or income option at any time before the income
date. You must give us 7 days notice. Income payments must begin by your 90th
birthday under a non-qualified contract (or an earlier
date under a qualified contract if required by law).
At the income date, you can choose whether payments will come from the
guaranteed accounts, the investment portfolios or both. Unless you tell us
otherwise, your income payments will be based on the investment allocations
that were in place on the income date.
If you choose to have any portion of your annuity payments come from the
investment portfolio(s), the dollar amount of your payment will depend upon
three things: 1) the value of your contract in the investment portfolio(s) on
the income date, 2) the 3% assumed investment rate used in the annuity table
for the contract, and 3) the performance of the investment portfolios you
selected. If the actual performance exceeds the 3% assumed rate, your income
payments will increase. Similarly, if the actual rate is less than 3%, your
income payments will decrease.
You can choose to have income payments made monthly, quarterly, semi-annually,
or annually. However, if you have less than $2,000 to apply toward an income
option and state law permits, Jackson National NY may provide your payment in a
single lump sum. Likewise, if your first income payment would be less than $20
and state law permits, Jackson National NY may set the frequency of payments so
that the first payment would be at least $20.
Income Options
The annuitant is the person whose life we look to when we make income payments.
(Each description assumes that you are the owner and annuitant.)
OPTION 1 - Life Income. This income option provides monthly payments for your
life.
OPTION 2 - Joint and Survivor Annuity. This income option provides monthly
payments for your life and for the life of another person (usually your spouse)
selected by you.
OPTION 3 - Life Annuity With 120 or 240 Monthly Payments Guaranteed. This
income option provides monthly payments for your life, but with payments
continuing to your beneficiary for the remainder of 10 or 20 years (as you
select) if you die 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.
ADDITIONAL OPTIONS - Other income options may be made available by Jackson
National NY.
If you choose an income option for which payments are based on life expectancy,
you cannot make a withdrawal during the income phase.
DEATH BENEFIT
Death of Owner Before the Income Date
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. Joint owners must
be spouses. The surviving joint owner will be treated as the beneficiary. Any
other beneficiary designated will be treated as a contingent beneficiary.
The death benefit equals: (a) current contract value OR (b) the total premiums
(less withdrawals, withdrawal charges and premium taxes) OR (c) the contract
value at the end of the 7th contract year PLUS all premiums made since the 7th
year (less withdrawals, withdrawal charges and premium taxes) -- whichever is
GREATEST. The death benefit under (c) will never exceed 250% of premiums
paid, less partial withdrawals.
The entire death benefit must be paid within 5 years of the date of death
unless the beneficiary elects to have the death benefit payable under an income
option. The death benefit payable under an income option must be paid over the
beneficiary's lifetime or for a period not extending beyond the
beneficiary's life expectancy. Payments must begin within one year of the date
of death. Unless the beneficiary chooses to receive the death benefit in a
single sum, the beneficiary must elect an income option within the 60 day
period beginning with the date Jackson National NY receives proof of death. If
the beneficiary chooses to receive the death benefit in a single sum and all
the necessary requirements are met, Jackson National NY will pay the death
benefit within 7 days. If the beneficiary is your spouse, he/she can continue
the contract in his/her own name at the then current contract value.
Death of Owner After the Income Date
If you or a joint owner die after moving to the income phase, any remaining
payments under the income option elected will continue at least as rapidly as
under the method of distribution in effect at the date of death. If you die,
the beneficiary becomes the owner. If the joint owner dies, the surviving
joint owner, if any, will be the designated beneficiary. Any other beneficiary
designation on record at the time of death will be treated as a contingent
beneficiary.
Death of Annuitant
If the annuitant is not an owner or joint owner and the annuitant dies before
the income date, you can name a new annuitant. If you do not name a new
annuitant within 30 days of the death of the annuitant, you will become the
annuitant. However, if the owner is a non-natural person (for example, a
corporation), then the death of the annuitant will be treated as the death of
the owner, and a new annuitant may not be named.
If the annuitant dies after the income date, the death benefit, if any, will be
as provided for in the income option selected. Death benefits will be paid at
least as rapidly as under the method of distribution in effect at the
annuitant's death.
TAXES
THE FOLLOWING IS GENERAL INFORMATION AND IS NOT INTENDED AS TAX ADVICE TO ANY
INDIVIDUAL. YOU SHOULD CONSULT YOUR OWN TAX ADVISER.
The Internal Revenue Code (Code) provides that you will not be taxed on the
earnings on the money held in your contract until you take money out (this is
referred to as tax deferral). There are different rules as to how you will be
taxed depending on how you take the money out and the type of contract you have
(non-qualified or qualified).
Non-Qualified Contracts - General Taxation
You will not be taxed on increases in the value of your contract until a
distribution (either as a withdrawal or as an income payment) occurs. When you
make a withdrawal you are taxed on the amount of the withdrawal that is
earnings. For income payments, a portion of each income payment is treated as
a partial return of your premium and will not be taxed. The remaining portion
of the income payment will be treated as ordinary income. How the income
payment is divided between taxable and non-taxable portions depends on the
period over which income payments are expected to be made. Income payments
received after you have received all of your premium are treated as income.
If a non-qualified contract is owned by a non-natural person (e.g., corporation
or certain other entities other than tax-qualified trusts), the contract will
generally not be treated as an annuity for tax purposes.
Qualified and Non-Qualified Contracts
If you purchase the contract as an individual and not under any pension plan,
specially sponsored program or an individual retirement annuity, your contract
is referred to as a non-qualified contract.
If you purchase the contract under a pension plan, specially sponsored program,
or an individual retirement annuity, your contract is referred to as a
qualified contract. Examples of qualified plans are: Individual Retirement
Annuities (IRAs), Tax-Sheltered Annuities (sometimes referred to as 403(b)
contracts), H.R. 10 Plans (sometimes referred to as Keogh Plans), and pension
and profit-sharing plans, which include 401(k) plans.
Withdrawals - Non-Qualified Contracts
If you make a withdrawal from your contract, the Code treats the withdrawal as
first coming from earnings and then from your premium payments. Withdrawn
earnings are includible in income.
The Code also provides that any amount received under an annuity contract which
is included in income may be subject to a 10% penalty. Some withdrawals will
be exempt from the penalty. They include any amounts: (1) paid on or after
the taxpayer reaches age 59 1/2; (2) paid after you die; (3) paid if the
taxpayer becomes totally disabled (as that term is defined in the Code); (4)
paid in a series of substantially equal payments made annually (or more
frequently) under a lifetime annuity; (5) paid under an immediate annuity; or
(6) which come from premiums made prior to August 14, 1982.
Withdrawals - Qualified Contracts
There are special rules that govern qualified contracts. We have provided
additional discussion in the Statement of Additional Information.
Withdrawals - Tax-Sheltered Annuities
The Code limits the withdrawal of premiums from certain Tax-Sheltered
Annuities. Withdrawals can only be made when an owner: (1) reaches age 59
1/2; (2) leaves his/her job; (3) dies; (4) becomes disabled (as that term is
defined in the Code); or (5) in the case of hardship. However, in the case of
hardship, the owner can only withdraw the premium and not any earnings.
Assignment
An assignment may be a taxable event. If the contract is issued pursuant to a
qualified plan, there may be limitations on your ability to assign the
contract.
Diversification
The Code provides that the underlying investments for a variable annuity must
satisfy certain diversification requirements in order to be treated as an
annuity contract. Jackson National NY believes that the underlying investments
are being managed so as to comply with these requirements.
Neither the Code nor the Internal Revenue Service Regulations issued to date
provide guidance as to the circumstances under which you, because of the degree
of control you exercise over the underlying investments, and not Jackson
National NY would be considered the owner of the shares of the investment
portfolios. If this occurs, it will result in the loss of the favorable tax
treatment for the contract.
It is unknown to what extent owners are permitted to select investment
portfolios, to make transfers among the investment portfolios or the number and
type of investment portfolios from which owners may select. If any guidance is
provided which is considered a new position, then the guidance would generally
be applied prospectively. However, if such guidance is considered not to be a
new position, it may be applied retroactively. This would mean that you, as
the owner of the contract, could be treated as the owner of the investment
portfolios. Due to the uncertainty in this area, Jackson National NY reserves
the right to modify the contract in an attempt to maintain favorable tax
treatment.
OTHER INFORMATION
Dollar Cost Averaging
You can arrange to automatically have a regular amount of money periodically
transferred into the investment portfolios. This theoretically gives you a
lower average cost per unit over time than you would receive if you made a one
time purchase.
To participate in this program, you must have a total contract value of at
least $15,000 (unless we waive this requirement).
Jackson National NY does not currently charge for participation in this
program. We may do so in the future.
Rebalancing
You can arrange to have Jackson National NY automatically reallocate money
between investment portfolios periodically to keep the blend you select.
Jackson National NY does not currently charge for participation in this
program. We may do so in the future.
Free Look
You can cancel the contract within twenty days after receiving it. On the day
we receive the contract, Jackson National NY will return the full premium
allocated to the guaranteed accounts. Jackson National NY will also refund the
premium allocated to the investment portfolios less the amount credited to the
investment portfolios plus the contract value in the investment portfolios.
Distribution of Contracts
Jackson National Financial Services, Inc., an affiliate of Jackson National NY,
is located at
5901 Executive Drive, Lansing, Michigan 48911 and serves as the distributor of
the contracts.
Commissions will be paid to broker-dealers who sell the contracts. While
commissions may vary, they are not expected to exceed 8% of any premium
payment. Under certain circumstances, Jackson National NY may pay persistency
bonuses, in addition to the standard commissions. Jackson National NY may use
any of its corporate assets to cover the cost of distribution, including any
profit from the contract insurance charges.
Advertising
From time to time, Jackson National NY may advertise several types of
performance for the investment portfolios. Total return is the overall change
in the value of an investment in an investment portfolio over a given period of
time. Standardized total return is calculated in accordance with SEC
guidelines. Non-standardized total return may be for periods other than those
required or may otherwise differ from standardized total return. 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 insurance charges and may reflect
the deduction of the contract maintenance charge and withdrawal charge. The
deduction of the contract maintenance and/or the withdrawal charge would reduce
the percentage increase or make greater any percentage decrease.
If a series has been in existence for a longer period than the investment
portfolio, performance will be based upon the period quoted.
Market Timing and Asset Allocation Services
Market timing and asset allocation services offered by third parties must
comply with Jackson National NY's administrative systems, rules and procedures.
Modification of the Contract
Only the President, Vice President, Secretary or Assistant Secretary of Jackson
National NY may approve a change to or waive a provision of the contract. Any
change or waiver must be in writing. Jackson National NY may change the terms
of the contract in order to comply with changes in applicable law, or otherwise
as deemed necessary by Jackson National NY.
Legal Proceedings
There are no material legal proceedings, other than ordinary routine litigation
incidental to the business, to which Jackson National Life Insurance Company of
New York, Jackson National Financial Services, Inc., and the JNLNY Separate
Account - I are parties.
Financial Statements
The financial statements of Jackson National NY for the year ended December 31,
1996, are contained in the SAI.
Questions
If you have questions about your contract, you may call us at (888) 367-5651,
or write to us at: Jackson National NY Life Annuity Service Center, 8055 E.
Tufts Avenue, Second Floor, Denver, Colorado 80237.
APPENDIX A
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
[Download Table]
General Information and History................................ 2
Services....................................................... 2
Purchase of Securities Being Offered........................... 2
Underwriters................................................... 2
Calculation of Performance..................................... 2
Additional Tax Information..................................... 7
Income Payments; Net Investment Factor......................... 9
Financial Statements........................................... 10
STATEMENT OF ADDITIONAL INFORMATION
JANUARY 1, 1998
INDIVIDUAL DEFERRED FIXED AND VARIABLE ANNUITY CONTRACTS
ISSUED BY THE JNLNY SEPARATE ACCOUNT I
OF JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
This Statement of Additional Information 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 January
1, 1998. The Prospectus may be obtained from Jackson National Life Insurance
Company of New York by writing 2900 Westchester Avenue, Purchase, New York
10577, or calling 1-888-367-5651.
TABLE OF CONTENTS
PAGE
General Information and History...................................... 2
Services............................................................. 2
Purchase of Securities Being Offered................................. 2
Underwriters......................................................... 2
Calculation of Performance........................................... 2
Additional Tax Information........................................... 5
Income Payments; Net Investment Factor .............................. 6
Financial Statements ................................................ 10
1
GENERAL INFORMATION AND HISTORY
JNLNY Separate Account I (Separate Account) is a separate investment
account of Jackson National Life Insurance Company of New York (Jackson
National NY). In September 1997, the company changed its name from First
Jackson National Life Insurance Company to its present name. Jackson National
NY is a wholly-owned subsidiary of Jackson National Life Insurance Company,
and is ultimately a wholly-owned subsidiary of Prudential Corporation plc,
London, England.
SERVICES
Jackson National NY has responsibility for administration of the contracts
and the Separate Account. We maintain records of the name, address, taxpayer
identification number and other pertinent information for each contract owner
and the number and type of contracts issued to each contract owner, and records
with respect to the value of each contract.
Jackson National NY is also the custodian of the assets of the Separate
Account. As custodian, we maintain a record of all purchases and redemptions of
shares of the series underlying the investment portfolios.
__________________________________ audits and reports on Jackson National NY's
financial statements, including the financial statements of the Separate
Account, and performs other professional accounting, auditing and advisory
services when engaged to do so by Jackson National NY.
PURCHASE OF SECURITIES BEING OFFERED
The contracts will be sold by licensed insurance agents in states where the
contracts may be lawfully sold. The agents will be registered representatives of
broker-dealers that are registered under the Securities Exchange Act of 1934 and
members of the National Association of Securities Dealers, Inc. (NASD).
UNDERWRITERS
The contracts are offered continuously and are distributed by Jackson
National Financial Services, Inc. (JNFSI), 5901 Executive Drive, Lansing,
Michigan 48911. JNFSI is a subsidiary of Jackson National Life Insurance
Company.
CALCULATION OF PERFORMANCE
When Jackson National NY advertises performance for an investment portfolio
(except the PPM America/JNL Money Market Portfolio), we will include quotations
of standardized total return to facilitate comparison with standardized total
return advertised by other variable annuity separate accounts. We will calculate
standardized total return according to the standard methods prescribed by rules
of the Securities and Exchange Commission. Standardized total return for a
2
specific period is calculated by taking a hypothetical $1,000 investment in an
investment portfolio at the offering on the first day of the period ("initial
investment"), and computing the ending redeemable value ("redeemable value") of
that investment at the end of the period. The redeemable value is then divided
by the initial investment and expressed as a percentage, carried to at least the
nearest hundredth of a percent. Standardized total return is annualized and
reflects the deduction of the insurance charges and the contract maintenance
charge. The redeemable value also reflects the effect of any applicable
withdrawal charge that may be imposed at the end of the period. No deduction is
made for premium taxes which may be assessed by certain states.
The standardized total returns that each investment portfolio (except the
PPM America/JNL Money Market Portfolio) would have achieved if it had been
invested in the corresponding series for the periods indicated are as follows:
[Download Table]
One Year Period Commencement of
Ended Operations to
JNL Aggressive Growth Portfolio* % %
JNL Capital Growth Portfolio* % %
JNL Global Equities Portfolio* % %
JNL/Alger Growth Portfolio** % %
JNL/Eagle Core Equity Portfolio*** % %****
JNL/Eagle SmallCap Equity Portfolio*** % %****
JNL/Putnam Growth Portfolio* % %
JNL/Putnam Value Equity Portfolio* % %
PPM America/JNL Balanced Portfolio* % %
PPM America/JNL High Yield Bond Portfolio* % %
Salomon Brothers/JNL Global Bond Portfolio* % %
Salomon Brothers/JNL U.S. Government & Quality
Bond Portfolio* % %
T. Rowe Price/JNL Established Growth Portfolio* % %
T. Rowe Price/JNL International Equity
Investment Portfolio* % %
T. Rowe Price/JNL Mid-Cap Growth Portfolio* % %
*Corresponding series commenced operations on May 15, 1995.
**Corresponding series commenced operations on October 16, 1995.
***Corresponding series commenced operations on September 16, 1996.
****Not Annualized.
Jackson National NY may also advertise nonstandardized total return.
Nonstandardized total return may be for periods other than those required to be
presented or may otherwise differ from standardized total return. Because the
contract is designed for long term investment, nonstandardized total return that
does not reflect the deduction of any applicable withdrawal charge may be
advertised. Reflecting the deduction of the withdrawal charge decreases the
level of performance advertised. Nonstandardized total return may also assume a
larger initial investment which more closely approximates the size of a typical
contract.
The nonstandardized total returns that each investment portfolio (except
the PPM America/JNL Money Market Portfolio) would have achieved if it had been
invested in the corresponding series, for the periods indicated, calculated in a
manner similar to standardized total return but assuming a hypothetical initial
investment of $10,000, deducting a maximum $30 contract maintenance
charge, and without deducting the withdrawal charge, are as follows:
[Download Table]
One Year Period Commencement of
Ended Operations to
JNL Aggressive Growth Portfolio* % %
JNL Capital Growth Portfolio* % %
JNL Global Equities Portfolio* % %
JNL/Alger Growth Portfolio** % %
JNL/Eagle Core Equity Portfolio*** % %
JNL/Eagle SmallCap Equity Portfolio*** % %
JNL/Putnam Growth Portfolio* % %
JNL/Putnam Value Equity Portfolio* % %
PPM America/JNL Balanced Portfolio % %
PPM America/JNL High Yield Bond Portfolio* % %
Salomon Brothers/JNL Global Bond Portfolio* % %
Salomon Brothers/JNL U.S. Government & Quality
Bond Portfolio* % %
T. Rowe Price/JNL Established Growth Portfolio* % %
T. Rowe Price/JNL International Equity
Investment Portfolio* % %
T. Rowe Price/JNL Mid-Cap Growth Portfolio* % %
*Corresponding series commenced operations on May 15, 1995.
**Corresponding series commenced operations on October 16, 1995.
***Corresponding series commenced operations on September 16, 1996.
Standardized 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 total return quotations and nonstandardized
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 portfolio has been in existence, if it has not been in
existence for one of the prescribed periods. If the corresponding series has
been in existence for longer than the investment portfolio, the standardized
total return and nonstandardized total return quotations will show the
investment performance the series would have achieved (reduced by the applicable
charges) had it been held in the investment portfolio for the period quoted.
Quotations of standardized total return and nonstandardized 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 a series 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 original cost.
Jackson National NY may advertise the current annualized yield for a
30-day period for the PPM America/JNL Balanced Portfolio, the PPM America/JNL
High Yield Bond Portfolio, the Salomon Brothers/JNL Global Bond Portfolio and
the Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio. The
annualized yield of an investment portfolio refers to the income generated by
the investment portfolio over a specified 30-day period. Because this yield is
annualized, the yield generated by an investment portfolio 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:
3
6
YIELD = 2[(a-b+1) -1]
---
cd
Where:
a = net investment income earned during the period by the Series.
b = expenses for the investment portfolio 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 portfolio will be lower than the yield for the
corresponding series. The yield on amounts held in the investment portfolios
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 portfolio's actual yield will be affected by the types and
quality of portfolio securities held by the series and the series operating
expenses.
The yield for the 30-day period ended ________ for each of the
above-referenced investment portfolios is as follows:
PPM America/JNL Balanced Portfolio %
PPM America/JNL High Yield Bond Portfolio %
Salomon Brothers/JNL Global Bond Portfolio %
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio %
Prior to May 1, 1997, the PPM America/JNL Balanced Portfolio was the
JNL/Phoenix Investment Counsel Balanced Portfolio and the corresponding series
was sub-advised by Phoenix Investment Counsel, Inc.
Any current yield quotations of the PPM America/JNL Money Market
Portfolio, subject to Rule 482 of the Securities Act of 1933, will consist of a
seven calendar day historical yield, carried at least to the nearest hundredth
of a percent. The 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 PPM America/JNL Money Market Portfolio's effective
yield is computed similarly but includes the effect of assumed compounding on an
annualized basis of the current yield quotations of the Portfolio. The PPM
America/JNL Money Market Portfolio's yield and effective yield for the seven
day period ended ________ were % and % respectively.
The PPM America/JNL Money Market Portfolio's yield and effective yield
will fluctuate daily. Actual yields will depend on factors such as the type of
instruments in the series' portfolio, portfolio quality and average maturity,
changes in interest rates, and the series' expenses. Although the investment
portfolio 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 series' 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 PPM America/JNL Money Market
Portfolio nor
4
that Portfolio's investment in the PPM America/JNL Money Market
Series, is guaranteed or insured. Yields of other money market funds may not be
comparable if a different base or another method of calculation is used.
ADDITIONAL TAX INFORMATION
NOTE: INFORMATION CONTAINED HEREIN SHOULD NOT BE SUBSTITUTED FOR THE
ADVICE OF A PERSONAL TAX ADVISER. JACKSON NATIONAL 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
SPECIAL RULES NOT DESCRIBED IN THIS PROSPECTUS MAY BE APPLICABLE IN CERTAIN
SITUATIONS. MOREOVER, NO ATTEMPT HAS BEEN MADE TO CONSIDER ANY APPLICABLE
STATE OR OTHER TAX LAWS.
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 non-annuity distribution or an
annuity payments under the annuity option elected. For a lump sum payment
received as a total surrender (total redemption), the recipient is taxed on the
portion of the payment that exceeds the cost basis of the contract. For a
payment received as a withdrawal (partial redemption), federal tax liability is
determined on a last-in, first-out basis, meaning taxable income is withdrawn
before the cost basis of the contract is withdrawn. For contracts issued in
connection with non-qualified plans, the cost basis is generally the premiums,
while for contracts issued in connection with qualified plans there may be no
cost basis. The taxable portion of the lump sum payment 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. 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 number of years over which the annuity is expected to
be paid. Payments received after the investment in the contract has been
recovered (i.e. when the total of the excludable amounts equal the investment
in the contract) are fully taxable. The taxable portion is taxed at ordinary
income tax rates. For certain types of 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 under the
retirement plan for which the contracts are purchased.
Jackson National NY is taxed as a life insurance company under the Code.
For federal income tax purposes, the Separate Account is not a separate entity
from Jackson National NY and its operations form a part of Jackson National NY.
WITHHOLDING TAX ON DISTRIBUTIONS
The Code generally requires Jackson National 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 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 estimated taxable portion of
any amount received by a covered employee from a plan qualified under Section
401(a) or 403(a) of the Code, or from a tax sheltered annuity qualified under
Section 403(b) of the Code (other than (1) annuity payments for the life (or
life expectancy) of the employee, or joint lives (or joint live expectancies)
of the employee, and his or her designated beneficiary, or for a specified
period of ten years or more; and (2) minimum distributions required to be made
under the Code). Failure to "rollover" the entire amount of an eligible
rollover distribution including an amount equal to the 20% portion of the
distribution that was withheld) could have adverse tax consequences, including
the imposition of a penalty tax on premature withdrawals, described later in
this section.
Withdrawals or distributions from a contract other than eligible rollover
distributions are also subject to withholding on the estimated taxable portion
of the distribution, but the owner may elect in such cases to waive the
withholding requirement. If not waived, withholding is imposed (1) for
periodic payments, at the rate that would be imposed if the payments were
wages, or (2) for other distributions, at the rate of 10%. If no withholding
exemption certificate is in effect for the payee, the rate under (1) above is
computed by treating the payee as a married individual claiming 3 withholding
exemptions.
Generally, the amount of any payment of interest to a non-resident alien
of the United States shall be subject to withholding of a tax equal to thirty
(30%) percent 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
recipient's gross income.
DIVERSIFICATION -- SEPARATE ACCOUNT INVESTMENTS
Section 817(h) of the Code imposes certain diversification standards on
the underlying assets of 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 are not adequately
diversified, in accordance with regulations prescribed by the United States
Treasury Department ("Treasury Department"). Disqualification of the contract
as an annuity contract would result in imposition of federal income tax to the
owner with respect to earnings allocable to the contract prior to the receipt
of payments under the contract. The Code contains a safe harbor provision
which provides that annuity contracts such as the contracts meet the
diversification requirements if, as of the close of each calendar quarter, the
underlying assets meet the diversification standards for a regulated investment
company, and no more than 55% of the total assets consist of cash, cash items,
U.S. government securities and securities of other regulated investment
companies.
The Treasury Department has issued Regulations establishing
diversification requirements for the investment portfolios underlying variable
contracts such as the contract . The 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 the
Regulations, an investment portfolio will be deemed adequately diversified if
(1) no more than 55% of the value of the total assets of the portfolio is
represented by any one investment; (2) no more than 70% of the value of the
total assets of the portfolio is represented by any two investments; (3) no
more than 80% of the value of the total assets of the portfolio is represented
by any three investments; and (4) no more than 90% of the value of the total
assets of the portfolio is represented by any four investments.
Jackson National NY intends that each series of the JNL Series Trust will
be managed by its respective investment adviser in such a manner as to comply
with these diversification requirements.
The Treasury Department has indicated that the diversification regulations
do not provide guidance regarding the circumstances in which contract owner
control of the investments of the Separate Account will cause the contract
owner to be treated as the owner of the assets of the Separate Account, thereby
resulting in the loss of favorable tax treatment of the contract. At this time
it cannot be determined whether additional guidance will be provided and what
standards may be contained in such guidance.
The amount of owner control which may be exercised under the contract is
different in some respects from the situations addressed in published rulings
issued by the Internal Revenue Service in which it was held that the policy
owner was not the owner of the assets of the separate account. It is unknown
whether these differences, such as the owner's ability to transfer among
investment choices or the number and type of investment choices available,
would cause the owner to be considered as the owner of the assets of the
Separate Account resulting in the imposition of federal income tax to the owner
with respect to earnings allocable to the contract prior to receipt of payments
under the contract.
In the event any forthcoming guidance or ruling is considered to set forth
a new position, such guidance or ruling will generally be applied only
prospectively. However, if such ruling or guidance was not considered to set
forth a new position, it may be applied retroactively resulting in the owner
being retroactively determined to be the owner of the assets of the Separate
Account.
Due to the uncertainty in this area, Jackson National NY reserves the
right to modify the contract in an attempt to maintain favorable tax treatment.
MULTIPLE CONTRACTS
The Code provides that multiple annuity contracts which 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. Jackson National NY believes that Congress intended to
affect the purchase of multiple deferred annuity contracts which may have been
purchased to avoid withdrawal income tax treatment. Owners should consult a
tax adviser prior to purchasing more than one annuity contract in any calendar
year.
CONTRACTS OWNED BY OTHER THAN NATURAL PERSONS
Under Section 72(u) of the Code, the investment earnings on premiums for
contracts will be taxed currently to the owner if the owner is a non-natural
person, e.g., a corporation or certain other entities. Such contracts
generally will not be treated as annuities for federal income tax purposes.
However, this treatment is not applied to contracts held by a trust or other
entity as an agent for a natural person nor to contracts held by 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 of a contract may have tax consequences, and may also be
prohibited by ERISA in some circumstances. Owners should, therefore, consult
competent legal advisers should they wish to assign their contracts.
QUALIFIED PLANS
The contracts offered by this Prospectus are designed to be suitable for
use under various types of qualified plans. Taxation of owners in each
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 qualified plan may be subject to the terms and conditions of
the plan, regardless of the terms and conditions of the contracts issued to
fund the plan.
TAX TREATMENT OF WITHDRAWALS
NON-QUALIFIED PLANS
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 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); (4) in a series of substantially equal periodic payments made
at least annually for the life of the taxpayer or for the joint lives 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.
QUALIFIED PLANS
Section 72(t) of the Code imposes a 10% penalty tax on the taxable portion
of any early distribution from qualified retirement plans, including contracts
issued and qualified under Code Sections 401 (H.R. 10 and Corporate Pension and
Profit Sharing plans), 403(b) (tax-sheltered annuities) and 408(b) (IRAs).
The tax penalty will not apply to the following distributions: (1) if
distribution is made on or after the date on which the owner or annuitant (as
applicable) reaches age 59 1/2; (2) distributions following the death or
disability of the owner or annuitant (as applicable) (for the purpose
"disability" is defined in Section 72(m)(7) of the Code); (3) after separation
from service, distributions that are part 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 form 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; and (7) distributions from an
IRA 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.
The exception states in items (4) and (6) above do not apply in the case
of an IRA.
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, separates from
services, dies, becomes disabled (within 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 qualified plans. Tax penalties
may also apply. While the foregoing limitations only apply to certain
contracts issued in connection with Section 403(b) qualified plans, all owners
should seek competent tax advice regarding any withdrawals or distributions.
The taxable portion of a withdrawal or distribution from contracts issued
under certain types of plans may, under some circumstances, be "rolled over"
into another eligible plan so as to continue to defer income tax on the taxable
portion. Effective January 1, 1993, 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 a plan qualified under section 401(a) or 403(a)
of the Code, a tax-sheltered annuity, an IRA, or an individual retirement
account described in section 408(a) of the Code. 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,
individual retirement accounts or certain other plans, subject to limitations
set forth in the Code.
Generally, distributions from a qualified plan generally 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, distribution must commence no later than April 1 of the
calendar year following the year in which the owner or annuitant attains age 70
1/2. Required distributions must be over a period not exceeding the life or
life expectancy of the individual or the joint lives or life expectancies of
the individual and his or her designated beneficiary. If the required minimum
distributions are not made, a 50% penalty tax is imposed as to the amount not
distributed.
TYPES OF QUALIFIED PLANS
The following are general descriptions of the types of qualified plans
with which the contracts may be used. Such descriptions are not exhaustive and
are for general information purposes only. The tax rules regarding 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 qualified plan.
Contracts issued pursuant to qualified plans include special provisions
restricting contract provisions that may otherwise be available and described in
this Prospectus. Generally, contracts issued pursuant to 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 qualified plan contracts.
(A) H.R. 10 PLANS
Section 401 of the Code permits self-employed individuals to
establish qualified plans for themselves and their employees, commonly
referred to as "H.R. 10" or "Keogh" Plans. Contributions made to the
plan for the benefit of the employees will not be included in the gross
income of the employees until distributed from the plan. The tax
consequences to owners may vary depending upon the particular plan
design. However, the Code places limitations and restrictions on all
plans on such items as: amounts 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, withdrawals and surrenders. Purchasers
of contracts for use with an H.R. 10 Plan should obtain competent tax
advice as to the tax treatment and suitability of such an investment.
(B) 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. Any
5
employee should obtain competent tax advice as to the tax treatment
and suitability of such an investment.
(C) 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"). Under applicable limitations, certain
amounts may be contributed to an IRA which will be deductible from the
individual's gross income. These IRAs are subject to limitations on
eligibility, contributions, transferability and distributions. Sales of
contracts for use with IRAs 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 IRAs should obtain competent tax advice
as to the tax treatment and suitability of such an investment.
(D) CORPORATE PENSION AND PROFIT-SHARING PLANS
Sections 401(a) and 401(k) of the Code permit corporate
employers to establish various types of 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,
withdrawals and surrenders. Purchasers of contracts for use with
corporate pension or profit sharing plans should obtain competent tax
advice as to the tax treatment and suitability of such an investment.
(E) NON-QUALIFIED DEFERRED COMPENSATION PLANS -- SECTION 457
Under Section 457 of the Code, governmental and certain other
tax-exempt employers may establish, for the benefit of their employees,
deferred compensation plans which may invest in annuity contracts. The
Code, as in the case of qualified plans, establishes limitations and
restrictions on eligibility, contributions and distributions. Under
these plans, contributions made for the benefit of the employees will
not be included in the employees' gross income until distributed from
the plan.
INCOME PAYMENTS; NET INVESTMENT FACTOR
See "Income Payments (The Income Phase)" in the Prospectus.
6
The net investment factor is an index applied to measure the net
investment performance of an investment portfolio from one valuation date to the
next. Since the net investment factor may be greater or less than or equal to
one, and the factor that offsets the 3% investment rate assumed is slightly less
than one, the value of an annuity unit (which changes with the product of that
factor) and the net investment may increase, decrease or remain the same.
The net investment factor for any investment portfolio for any
valuation period 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 series share held in the investment
portfolio 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 series if the "ex-dividend" date occurs
during the valuation period, plus or minus
(3) a per share credit or charge with respect to any taxes paid
or reserved for by Jackson National NY during the valuation
period which are determined by Jackson National NY to be
attributable to the operation of the investment portfolio
(no federal income taxes are applicable under present law );
(b) is the net asset value of the series share held in the investment
portfolio determined as of the valuation date at the end of the
preceding valuation period; and
(c) is the asset charge factor determined by Jackson National NY for
the valuation period to reflect the charges for assuming the
mortality and expense risks and the administration charge.
7
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Financial statements and schedules included in
Part A:
Not Applicable
(2) Financial statements and schedules included in
Part B:
To be filed by Amendment
Item 24.(b) Exhibits
Exhibit
No. Description
--- -----------
1. Resolution of Depositor's Board of Directors authorizing the
establishment of the Registrant, attached hereto.
2. Not Applicable
3. General Distributor Agreement dated September 19, 1997, attached
hereto.
4. Form of the Perspective Fixed and Variable Annuity Contract,
attached hereto.
5. Form of the Perspective Fixed and Variable Annuity Application,
attached hereto.
6.a. Declaration and Charter of Depositor, attached hereto.
b. Bylaws of Depositor, attached hereto.
7. Not Applicable
8. Not Applicable
9. Not Applicable
1
10. Not Applicable
11. Not Applicable
12. Not Applicable
13. Not Applicable
14. Not Applicable
Item 25. Directors and Officers of the Depositor
Name and Principal Positions and Offices
Business Address with Depositor
---------------- --------------
Donald B. Henderson, Jr. Director
4A Rivermere Apartments
Bronxville, NY 10708
Henry J. Jacoby Director
305 Riverside Drive
New York, NY 10025
David L. Porteous Director
20434 Crestview Drive
Reed City, MI 49777
Robert L. Rosenthal Director
360 E. 72nd Street
New York, NY 10021
Robert P. Saltzman President, Chairman
5901 Executive Drive and Director
Lansing, MI 48911
Jay A. Elliott Senior Vice President
5901 Executive Drive and Director
Lansing, MI 48911
Alan C. Hahn Senior Vice President
5901 Executive Drive and Director
Lansing, MI 48911
Andrew B. Hopping Senior Vice President
2
5901 Executive Drive and Director
Lansing, MI 48911
Clark P. Manning Senior Vice President,
5901 Executive Drive Chief Financial Officer
Lansing, MI 48911 and Treasurer
J. George Napoles Senior Vice President
5901 Executive Drive
Lansing, MI 48911
David B. LeRoux Senior Vice President
5901 Executive Drive
Lansing, MI 48911
Scott L. Stoltz Senior Vice President
5901 Executive Drive
Lansing, MI 48911
Thomas J. Meyer Vice President, Secretary,
5901 Executive Drive General Counsel & Director
Lansing, MI 48911
Lisa C. Drake Vice President & Actuary
5901 Executive Drive
Lansing, MI 48911
Robert A. Fritts Vice President & Assistant
5901 Executive Drive Secretary
Lansing, MI 48911
Brion S. Johnson Vice President
5901 Executive Drive
Lansing, MI 48911
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant.
State of Control/
Company Organization Ownership Principal Business
Brooke Delaware 100% Organized for the
Holdings, Inc. Holborn purpose of acquiring
Delaware holding,
Partnership encumbering,
3
transferring,
or otherwise
disposing of
shares, bonds,
and other evidences
of indebtedness,
securities, and
contracts of
other persons,
associations,
corporations,
domestic or foreign
and to form or acquire
the control of other
corporations.
Brooke Delaware 100% Brooke Holding Company
Finance Holdings, Inc. Activities
Brooke Life Michigan 100% Brooke Life Insurance
Insurance Holdings, Inc.
Company
Bucyrus-Erie Delaware 42% Jackson Steel Company
National Life
Insurance
Company
Carolina North 95% Jackson Manufacturing
Steel Carolina National Life Company
Insurance
Company
Chrissy Delaware 100% Jackson Advertising Agency
Corporation National Life
Insurance
Company
Jackson Michigan 100% Life Insurance
National Life Brooke Life
Insurance Insurance
Company Company
4
Holborn Delaware 95% Prudential Holding Company
Delaware One Limited, Activities
Partnership 2.5%
Prudential
Two Limited,
2.5%
Prudential
Three Limited
Jackson Delaware 100% Jackson Investment Adviser,
National National Life Broker/Dealer
Financial Insurance and Transfer Agent
Services, Inc. Company
Jackson Delaware 100% Jackson Advertising/
National National Life Marketing
Life Insurance Corporation and
Distributors, Company Broker/Dealer
Inc.
Jackson Michigan 100% Brooke Life Insurance
National Life
Life Insurance Insurance
Company Company
JNL Series Massachusetts Common Law Investment Company
Trust Trust with
contractual
association
with Jackson
National Life
Insurance
Company
Prudential United 100% Holding Company
Corporation Kingdom Prudential
Holdings Corporation
Limited PLC
Prudential United Publicly Financial
Corporation Kingdom Traded Institution
PLC
5
Prudential England and 100% Holding
One Limited Wales Prudential Company
Corporation Activities
Holdings
Limited
Prudential England and 100% Holding
Two Limited Wales Prudential Company
One Limited Activities
Prudential England and 100% Holding
Three Limited Wales Prudential Company
One Limited Activities
Item 27. Number of Contract Owners as of September 22, 1997.
0
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
6
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 Financial Services, Inc. acts as general distributor
for the JNLNY Separate Account I. Jackson National Financial Services, Inc. also
acts as general distributor for the Jackson National Separate Account - I and
the Jackson National Separate Account - III and acts as investment adviser for
the JNL Series Trust.
(b) Directors and Officers of Jackson National Financial Services, Inc.:
Name and Positions and Offices
Business Address with Underwriter
---------------- ----------------
Jay A. Elliott Director
5901 Executive Dr.
Lansing, MI 48911
Andrew B. Hopping President, Chief
5901 Executive Dr. Executive Officer
Lansing, MI 48911 and Director
Thomas J. Meyer Secretary, Chief
5901 Executive Dr. Legal Officer and
Lansing, MI 48911 Director
Mark D. Nerud Chief Operating
5901 Executive Dr. Officer and Treasurer
Lansing, MI 48911
7
(c)
New Under- Compensation
writing on
Name of Discounts Redemption
Principal and or Annuiti- Brokerage
Underwriter Commissions zation Commissions Compensation
----------- ----------- ------ ----------- ------------
Jackson
national
Financial Not Not Not Not
Services Applicable Applicable Applicable Applicable
Inc.
Item 30. Location of Accounts and Records
Jackson National Life Insurance Company of New York
2900 Westchester Avenue
Purchase, New York 10577
Jackson National Life Insurance Company
8055 East Tufts Ave., Second Floor
Denver, Colorado 80237
Item 31. Management Services
Not Applicable
Item 32. Undertakings
(a) Registrant 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 16 months old for so long as
payments under the variable annuity contracts may be accepted.
(b) Registrant 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 post card or similar written
communication affixed to or
8
included in the prospectus that the applicant can remove to
send for a Statement of Additional Information.
(c) Registrant hereby undertakes to deliver any Statement of
Additional Information and any financial statements 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).
9
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it has caused this Registration
Statement to be signed on its behalf, in the City of Lansing, and State of
Michigan, on this 3rd day of October, 1997.
JNLNY Separate Account I
---------------------------------------------------
(Registrant)
Jackson National Life Insurance Company of New York
---------------------------------------------------
(Depositor)
By: /s/ Thomas J. Meyer
---------------------------------------------------
Thomas J. Meyer
Vice President and General Counsel
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities indicated.
/s/ Robert P. Saltzman by Thomas J. Meyer* October 3, 1997
-------------------------------------------- -----------------
Robert P. Saltzman, President, Date
Chairman and Director
/s/ Jay A. Elliott by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
Jay A. Elliott, Senior Vice President Date
and Director
/s/ Alan C. Hahn by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
Alan C. Hahn, Senior Vice President Date
and Director
/s/ Andrew B. Hopping by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
Andrew B. Hopping, Senior Vice Date
President and Director
/s/ Thomas J. Meyer October 3, 1997
-------------------------------------------- -----------------
Thomas J. Meyer, Vice President, Secretary, Date
General Counsel and Director
/s/ Donald B. Henderson by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
Donald B. Henderson, Director Date
/s/ Henry J. Jacoby by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
Henry J. Jacoby, Director Date
/s/ David C. Porteous by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
David C. Porteous, Director Date
/s/ Robert L. Rosenthal by Thomas J. Meyer * October 3, 1997
-------------------------------------------- -----------------
Robert L. Rosenthal, Director Date
/s/ Thomas J. Meyer October 3, 1997
-------------------------------------------- -----------------
* Thomas J. Meyer, Attorney In Fact Date
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as directors and/or
officers of JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK, a New York
corporation, which has filed or will file with the Securities and Exchange
Commission under the provisions of the Securities Act of 1933 and Investment
Company Act of 1940, as amended, various Registration Statements and amendments
thereto for the registration under said Acts of the sale of Individual Deferred
Fixed and Variable Annuity Contracts in connection with the JNLNY Separate
Account I and other separate accounts of Jackson National Life Insurance Company
of New York, hereby constitute and appoint Thomas J. Meyer, Andrew B. Hopping
and Robert P. Saltzman, his attorney, with full power of substitution and
resubstitution, for and in his name, place and stead, in any and all capacities
to approve and sign such Registration Statements and any and all amendments
thereto, with power where appropriate to affix the corporate seal of said
corporation thereto and to attest with seal and to file the same, with all
exhibits thereto and other granting unto said attorneys, each of them, full
power and authority to do and perform all and every act and thing requisite to
all intents and purposes as he might or could do in person, hereby ratifying and
confirming that which said attorneys, 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 herewith set their names as of the
dates set forth below.
/s/ Robert P. Saltzman September 26, 1997
------------------------------------------- ---------------------------
Robert P. Saltzman, President, Date
Chairman and Director
/s/ Jay A. Elliott September 26, 1997
------------------------------------------- ---------------------------
Jay A. Elliott, Senior Vice President Date
and Director
/s/ Alan C. Hahn September 26, 1997
------------------------------------------- ---------------------------
Alan C. Hahn, Senior Vice President Date
and Director
/s/ Andrew B. Hopping September 26, 1997
------------------------------------------- ---------------------------
Andrew B. Hopping, Senior Vice Date
President and Director
/s/ Thomas J. Meyer September 26, 1997
------------------------------------------- ---------------------------
Thomas J. Meyer, Vice President, Secretary, Date
General Counsel and Director
/s/ Donald B. Henderson September 26, 1997
------------------------------------------- ---------------------------
Donald B. Henderson, Director Date
/s/ Henry J. Jacoby September 26, 1997
------------------------------------------- ---------------------------
Henry J. Jacoby, Director Date
/s/ David C. Porteous September 26, 1997
------------------------------------------- ---------------------------
David C. Porteous, Director Date
/s/ Robert L. Rosenthal September 26, 1997
------------------------------------------- ---------------------------
Robert L. Rosenthal, Director Date
EXHIBIT LIST
Exhibit
Number Description
------- -----------
1. Resolution of Depositor's Board of Directors authorizing the
establishment of the Registrant, attached hereto as EX-99.B1
3. General Distributor Agreement dated September 19, 1997, attached
hereto as EX-99.B3
4. Form of the Perspective Fixed and Variable Annuity Contract,
attached hereto as EX-99.B4
5. Form of the Perspective Fixed and Variable Annuity Application,
attached hereto as EX-99.B5
6.a. Articles of Incorporation of Depositor, attached hereto as
EX-99.B6-a
6.b. Bylaws of Depositor, attached hereto as EX-99.B6-b
Dates Referenced Herein and Documents Incorporated by Reference
56 Subsequent Filings that Reference this Filing
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