<PAGE> 1
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.
<PAGE> 2
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
<PAGE> 3
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.
<PAGE> 4
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
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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
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KEY FACTS
<TABLE>
<S> <C>
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.
</TABLE>
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<TABLE>
<S><C>
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.
</TABLE>
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FEE TABLE
OWNER TRANSACTION EXPENSES
<TABLE>
<S><C>
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%
</TABLE>
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)
<TABLE>
<CAPTION>
Other Expenses Total Series
Management (After Annual
JNL SERIES TRUST Fee Reimbursement) Expenses
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<S> <C> <C> <C>
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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</TABLE>
*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
<PAGE> 9
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.
<TABLE>
<CAPTION>
Time Periods
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1 3
year years
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<S> <C> <C> <C>
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
- ------------------------------------------------------------------------------------------
</TABLE>
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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.
<PAGE> 11
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
<PAGE> 12
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.
<PAGE> 13
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
<PAGE> 14
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
<PAGE> 15
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
<PAGE> 16
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
<PAGE> 17
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
<PAGE> 18
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
<PAGE> 19
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.
<PAGE> 20
APPENDIX A
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<S> <C>
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
</TABLE>
<PAGE> 21
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
<PAGE> 22
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
<PAGE> 23
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:
<TABLE>
<CAPTION>
One Year Period Commencement of
Ended Operations to
<S> <C> <C>
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* % %
</TABLE>
*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:
<TABLE>
<CAPTION>
One Year Period Commencement of
Ended Operations to
<S> <C> <C>
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* % %
</TABLE>
*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
<PAGE> 24
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
<PAGE> 25
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
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<PAGE> 26
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.
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<PAGE> 27
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
<PAGE> 28
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
<PAGE> 29
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
<PAGE> 30
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
<PAGE> 31
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
<PAGE> 32
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
<PAGE> 33
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
<PAGE> 34
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
<PAGE> 35
(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
<PAGE> 36
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
<PAGE> 37
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
<PAGE> 38
/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
<PAGE> 39
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
<PAGE> 40
/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
<PAGE> 41
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
<PAGE> 1
EX-99.B1
CERTIFICATE OF SECRETARY
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
I, Thomas J. Meyer, do hereby certify that I am the duly elected and
qualified Secretary of Jackson National Life Insurance Company of New York, a
New York corporation ("Corporation") and am the keeper of its records and
corporate seal and that the following is a true and complete copy of a
resolution unanimously adopted by the Board of Directors of said Corporation on
the 12th day of September, 1997:
WHEREAS, Section 4240 of the New York Insurance Laws permits a
domestic life insurance company to establish one or more
separate accounts;
WHEREAS, it is desired that the Company create such a separate
account to house certain of its variable annuity products;
NOW, THEREFORE, BE IT RESOLVED, that a separate account
referred to herein as "Separate Account I" is hereby
established;
FURTHER RESOLVED that income, gains and losses, whether or not
realized, from assets allocated to the Separate Account shall
be credited to or charged against such account without regard
to other income, gains or losses of the Company;
FURTHER RESOLVED that the assets of Separate Account I shall
be derived solely from (a) sale of variable annuity products,
(b) funds corresponding to dividend accumulation with respect
to investment of such assets, and (c) advances made by the
Company in
<PAGE> 2
connection with operation of Separate Account I;
FURTHER RESOLVED that the underlying investments in the
Separate Account will meet the investment limitations
prescribed by Section 4240 and other applicable sections of
the New York Insurance Law;
FURTHER RESOLVED that this Company shall maintain in Separate
Account I assets with a fair market value at least equal to
the statutory valuation reserves for the variable annuity
policies;
FURTHER RESOLVED that any two of the President, Vice
Presidents and/or the Treasurer of the Company (the
"Officers") be, and each of them hereby is authorized in his
or her discretion, as it may deem appropriate from time to
time, in accordance with applicable laws and regulations (a)
to divide Separate Account I into divisions and sub-divisions
with each division or sub-division investing in shares of
designated classes of designated investment companies or other
appropriate securities, (b) to modify or eliminate any such
divisions or sub-divisions, (c) to designate further any
division or sub-division thereof and (d) to change the
designation of Separate Account I to another designation;
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized to invest cash from the
Company's general account in Separate Account I or in any
division thereof as may be deemed necessary or appropriate to
facilitate the commencement of the operations of Separate
Account I or to meet any minimum capital requirements
<PAGE> 3
under the Investment Company Act of 1940, as amended, and to
transfer cash or securities from time to time between the
Company's general account and Separate Account I as deemed
necessary or appropriate so long as such transfers are not
prohibited by law and are consistent with the terms of the
variable annuity policies issued by the Company providing for
allocations to Separate Account I;
FURTHER RESOLVED that authority is hereby delegated to the
President of the Company to adopt procedures providing for,
among other things, criteria by which the Company shall
provide for a pass-through of voting rights to the owners of
variable annuity policies issued by the Company, providing for
allocation to Separate Account I with respect to the shares of
any investment companies which are held in Separate Account I;
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized and directed to prepare and
execute any necessary agreements to enable Separate Account I
to invest or reinvest the assets of Separate Account I in
securities issued by investment companies registered under the
Investment Company Act of 1940, as amended; or other
appropriate securities as the Officers of the Company may
designate pursuant to the provisions of the variable annuity
policies issued by the Company providing for allocations to
Separate Account I;
FURTHER RESOLVED that the fiscal year of Separate Account I
shall end on the 31st day of December each year;
<PAGE> 4
FURTHER RESOLVED that the Company may register under the
Securities Act of 1933 variable annuity policies, or units of
interest thereunder, under which amounts will be allocated by
the Company to Separate Account I to support reserves for such
policies and, in connection therewith, the Officers of the
Company be, and each of them hereby is, authorized to prepare,
execute and file with the Securities and Exchange Commission,
in the name and on behalf of the Company, registration
statements under the Securities Act of 1933, including
prospectuses, supplements, exhibits and other documents
relating thereto, and amendments to the foregoing, in such
form as the Officer executing the same may deem necessary or
appropriate;
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized to take all actions necessary to
register Separate Account I as a unit investment trust under
the Investment Company Act of 1940, as amended, and to take
such related actions as they deem necessary and appropriate to
carry out the foregoing;
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized to prepare, execute and file
with the Securities and Exchange Commission, applications and
amendments thereto for such exemptions from or orders under
the Investment Company Act of 1940, as amended, and the
Securities Act of 1933, and to request from the Securities and
Exchange Commission no action and interpretative letters as
they may from time to time deem necessary or desirable.
<PAGE> 5
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized to prepare, execute and file all
periodic reports required under the Investment Company Act of
1940, as amended, and the Securities Exchange Act of 1934;
FURTHER RESOLVED that the President of the Company, or such
person as is designated by him, is hereby appointed as agent
for service under any such registration statement and is duly
authorized to receive communications and notices from the
Securities and Exchange Commission with respect thereto, and
to exercise powers given to such agent by the Securities Act
of 1933 and the Rules thereunder and any other necessary Acts;
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized to execute and deliver all such
documents and papers and to do or cause to be done all such
acts and things as they may deem necessary or desirable to
carry out the foregoing resolutions and the intent and purpose
thereof; and
FURTHER RESOLVED that the Officers of the Company be, and each
of them hereby is, authorized to effect in the name and on
behalf of the Company, all such registrations, filings and
qualifications under the Securities Act of 1933 and the
Investment Company Act of 1940, as amended, or blue sky or
other applicable securities laws and regulations and under
insurance securities laws and insurance laws and regulations
of such states and other jurisdictions as they may deem
necessary or appropriate, with respect to the Company,
Separate Account I, and with
<PAGE> 6
respect to any variable annuity policies under which amounts
will be allocated by the Company to Separate Account I to
support reserves for such policies; such authorization shall
include registration, filing and qualification of the Company
and of said policies, as well as registration, filing and
qualification of officers, employees and agents of the
Company as brokers, dealers, agents, salesmen or otherwise;
and such authorization shall also include, in connection
therewith, authority to prepare, execute, acknowledge and
file all such applications, applications for exemptions,
certificates, affidavits, covenants, consents to service
of process and other instruments, and to take all such action
as the Officer executing the same or taking such action may
deem necessary or desirable.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal
of said Corporation this 19th day of September, 1997.
(Corporate Seal)
/s/ Thomas J. Meyer
-------------------
Thomas J. Meyer
Secretary
<PAGE> 1
EX-99.B3
GENERAL DISTRIBUTOR AGREEMENT
IT IS HEREBY AGREED by and between JACKSON NATIONAL LIFE INSURANCE COMPANY OF
NEW YORK ("COMPANY") and JACKSON NATIONAL FINANCIAL SERVICES, INC. ("JNFSI") as
follows:
I
COMPANY proposes to issue and sell certain annuity contracts ("Annuity
Contracts") to the public through JNFSI. JNFSI agrees to provide sales
services subject to the terms and conditions hereof. Annuity Contracts to be
sold hereunder are the Jackson National Life Insurance Company of New York
Fixed and Variable Annuity Contracts and such other contracts as may hereafter
be agreed upon by the parties. Such Annuity Contracts will be issued by
COMPANY and the JNLNY Separate Account I (the "Separate Account"). JNFSI is
registered as a broker-dealer under the Securities Exchange Act of 1934, as
amended, and is a member of the National Association of Securities Dealers,
Inc.
II
COMPANY grants to JNFSI the right, during the term of this Agreement, subject
to registration requirements of the relevant Federal securities laws, to be the
distributor of Annuity Contracts referred to above. JNFSI will distribute
Annuity Contracts at a price to be set by COMPANY and will make such
distributions to purchasers permitted to buy such Annuity Contracts as
specified in the prospectus.
III
JNFSI is hereby authorized, subject to disapproval by COMPANY, to enter into
separate agreements with broker-dealers registered under the Securities
Exchange Act of 1934, as amended, and members of the National Association of
Securities Dealers, Inc., to participate in the distribution of Annuity
Contracts as JNFSI shall deem appropriate. COMPANY reserves the right to
review and accept or reject all applications for Annuity Contracts. All
premium payments for such Annuity Contracts shall be sent to the office
designated for such by COMPANY.
IV
COMPANY shall furnish JNFSI with copies of such information, financial
statements and other documents requested by JNFSI for use in connection with
the distribution of Annuity Contracts, as may be deemed by reasonable by
COMPANY. COMPANY shall provide to JNFSI such number of copies of the currently
effective prospectus as JNFSI and COMPANY shall agree upon from time to time.
1
<PAGE> 2
V
JNFSI is not authorized to give any information, or to make any representations
concerning the Separate Account or COMPANY, other than as contained in the
current registration statement or prospectus filed with the Securities and
Exchange Commission or such sales literature as may be authorized by COMPANY.
VI
Both parties to this Agreement agree to keep necessary records as indicated by
applicable state and federal law and to render the necessary assistance to one
another for the accurate and timely preparation of such records.
VII
Commissions payable with respect to Annuity Contracts shall be paid by COMPANY,
and nothing herein shall obligate JNFSI to pay any commissions or other
remuneration to the registered representatives selling the Annuity Contracts or
to reimburse such registered representatives for expenses incurred by them, nor
shall JNFSI have any interest whatsoever in any commissions or other
remuneration payable to registered representative by COMPANY.
VIII
Each party (the "Indemnifying Party") hereby agrees to release, indemnify, and
hold harmless the other party, its officers, directors, employees, agents,
servants, predecessors or successors from any claims or liability arising out
of the breach of this Agreement by the Indemnifying Party or arising out of
acts or omissions of the Indemnifying Party or its agents, appointees,
independent contractors or employees not authorized by this Agreement,
including the violation of the federal and state securities laws and ERISA or
arising from acts of misrepresentation or false declaration concerning the
products sold hereunder.
IX
This Agreement shall remain in effect unless terminated as hereinafter
provided. This Agreement shall automatically terminate in the event of its
assignment by JNFSI. This Agreement may at any time be terminated by either
party hereto upon not less than 60 days' written notice to the other party.
2
<PAGE> 3
X
All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been given on the date of
service if served personally on the party to whom notice is to be given, or on
the date of mailing if sent by first class mail, registered or certified,
postage prepaid and properly addressed as follows:
TO COMPANY:
Jackson National Life Insurance Company of New York
2900 Westchester Avenue
Purchase, New York 10577
Attention: Thomas J. Meyer
TO JNFSI:
Jackson National Financial Services, Inc.
5901 Executive Drive
Lansing, Michigan 48911
Attention: Andrew B. Hopping
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed
on their behalf by their respective officers thereunto duly authorized.
This Agreement is effective as of the 19th day of September, 1997.
JACKSON NATIONAL LIFE INSURANCE
COMPANY OF NEW YORK
By: /s/ Thomas J. Meyer
-------------------
Thomas J. Meyer
Its: Vice President, Secretary and General Counsel
JACKSON NATIONAL FINANCIAL SERVICES, INC.
By: /s/ Andrew B. Hopping
---------------------
Andrew B. Hopping
Its: President and Chief Executive Officer
3
<PAGE> 1
EXHIBIT 99.B4
[JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK LETTERHEAD]
A STOCK COMPANY
Will pay the benefits provided in this policy [LOGO]
subject to its terms and conditions.
- --------------------------------------------------------------------------------
JACKSON NATIONAL LIFE INSURANCE COMPANY OF NEW YORK ("THE COMPANY") AGREES TO
PROVIDE BENEFITS TO THE OWNER SUBJECT TO THE PROVISIONS SET FORTH IN THIS
CONTRACT AND IN CONSIDERATION OF THE APPLICATION AND PREMIUMS WE RECEIVE.
THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE ACCUMULATION
AND ANNUITY PERIODS IS NOT GUARANTEED AND MAY INCREASE OR DECREASE BASED UPON
THE INVESTMENT EXPERIENCE OF THE FUND UNDERLYING THE SEPARATE ACCOUNT. IF THE
ACTUAL INVESTMENT RATES EXPERIENCED BY THE SEPARATE ACCOUNT ASSETS ARE LESS
THAN 4.4%, VARIABLE ANNUITY PAYMENTS WILL DECREASE OVER TIME.
THE GUARANTEED PERIOD CONTRACT VALUE IS SUBJECT TO AN INTEREST RATE ADJUSTMENT
WHICH MAY INCREASE OR DECREASE AMOUNTS PAYABLE OR WITHDRAWN, BUT THE GUARANTEED
PERIOD WITHDRAWAL VALUE WILL NEVER DECREASE TO LESS THAN THE GUARANTEED MINIMUM
VALUE.
YOU MAY WITHDRAW THE CONTRACT VALUE HELD UNDER ANY GUARANTEED PERIOD WITHOUT
INTEREST RATE ADJUSTMENT PROVIDED WE RECEIVE WRITTEN NOTICE WITHIN 30 DAYS
FOLLOWING THE END OF THE CORRESPONDING GUARANTEED PERIOD.
NOTICE OF TWENTY-DAY RIGHT TO EXAMINE POLICY
You may return this contract to the selling agent or Jackson National Life
Insurance Company of New York within 20 days after You receive it. Upon
receipt of this contract, the Company will refund the full premium allocated
to the Guaranteed Periods. The Company will also refund the amounts
allocated to the Separate Account less the amount credited to the Separate
Account plus the Separate Account Contract Value. Upon such refund, this
contract shall be void.
THIS IS A LEGAL CONTRACT BETWEEN YOU AND THE COMPANY.
READ YOUR CONTRACT CAREFULLY.
EXECUTED FOR THE COMPANY ON THE ISSUE DATE.
- --------------------------------------------------------------------------------
FLEXIBLE PREMIUM INDIVIDUAL DEFERRED THIS CONTRACT IS SIGNED BY THE COMPANY
FIXED AND VARIABLE ANNUITY CONTRACT.
MONTHLY INCOME AT MATURITY. [SIG]
DEATH BENEFIT PRIOR TO MATURITY. PRESIDENT
NONPARTICIPATING.
[SIG]
SECRETARY
<PAGE> 2
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
CONTRACT DATA PAGE 3
DEFINITIONS 5
GENERAL PROVISIONS 8
ACCUMULATION PROVISIONS FOR PORTFOLIOS 11
ACCUMULATION PROVISIONS FOR GUARANTEED PERIOD 11
TRANSFER PROVISIONS 13
WITHDRAWAL PROVISIONS 15
DEATH BENEFIT PROVISIONS 17
INCOME PROVISIONS 19
TABLE OF INCOME OPTIONS 22
2
<PAGE> 3
- --------------------------------------------------------------------------------
CONTRACT DATA PAGE
- --------------------------------------------------------------------------------
Contract Number: [000VA202]
Owner(s) [John Doe]
Annuitant(s): [John Doe]
Issue Date: [12/01/92]
Issue State: New York
Income Date:
Initial Premium: [$20,000.00]
Minimum Guaranteed Rate: 3.0%
Annual Contract
Maintenance Charge: $30.00
Separate Account: Jackson National Separate Account of
New York - I
Expense Risk Charge: On an annual basis, this charge equals
0.23% of the daily net asset value of the
Portfolios.
Administration Charge: On an annual basis, this charge equals
0.15% of the daily net asset value of the
Portfolios.
Mortality Risk Charge: On an annual basis, this charge equals
1.02% of the daily net asset value of the
Portfolios.
Withdrawal Charge: CONTRIBUTION YEAR OF WITHDRAWAL
PREMIUM PAYMENT CHARGE PERCENTAGE
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
3
<PAGE> 4
- --------------------------------------------------------------------------------
CONTRACT DATA PAGE (CONT'D)
- --------------------------------------------------------------------------------
Jackson National Life Insurance Company of New York
2900 Westchester Avenue
Purchase, New York 10577
[1/888/367-5651]
The amounts allocated to the Separate Account during the accumulation and
Annuity periods are not guaranteed and may increase or decrease based upon the
investment experience of the Fund underlying the Separate Account.
All payments and values in the Guaranteed Periods may be subject to an Interest
Rate Adjustment, the calculation of which may result in an increase or decrease
in amounts payable. In no event will the Guaranteed Period Withdrawal Value be
less than the Guaranteed Minimum Value.
4
<PAGE> 5
- --------------------------------------------------------------------------------
DEFINITIONS
- --------------------------------------------------------------------------------
ACCUMULATION UNIT. A unit of measurement used to compute Your Separate Account
Contract Value prior to the Income Date.
ANNUITANT. The natural person on whose life the Annuity benefit for this
contract is based. The Owner may change the Annuitant at any time prior to the
Income Date, unless the Owner is a non-individual. A second, or joint
Annuitant, may be named under the contract.
ANNUITY. In general, a contract purchased from an insurance company that offers
tax-deferred growth of the Owner's investment until earnings are withdrawn.
There are two types of Annuities: fixed and variable.
A FIXED ANNUITY has a minimum rate of interest guaranteed by the insurance
company prior to the Income Date. After the Income Date, payments are
guaranteed and remain fixed in amount and length of payment period.
A VARIABLE ANNUITY'S rate of return is not guaranteed. It is based on the
performance of the underlying investments the Owner has selected. If a
variable payout is elected, the amount of each payment may change depending
upon the performance of the underlying investments.
ANNUITY UNIT. A unit of measurement used to compute the amount of the payment
received under the Income Option you have elected.
CODE. The Internal Revenue Code of 1986, as amended.
CONTRACT VALUE. The sum of the Separate Account Contract Value and the
Guaranteed Period Contract Value.
CONTRACT YEAR. A 12-month period beginning on the Issue Date and ending one day
prior to the Issue Date in the following calendar year.
CONTRIBUTION YEAR. A 12-month period beginning on the date a Premium payment
is received and ending one day prior to the Premium payment anniversary in the
following year. The Contribution Year in which a Premium is made is
"Contribution Year 1." Subsequent years are consecutively numbered beginning
with Contribution Year 2.
FUND. The JNL Series Trust.
GUARANTEED MINIMUM VALUE. The net amount of Premiums allocated to the
Guaranteed Periods, less transfers, withdrawals and associated Withdrawal
Charges from the Guaranteed Periods, and less any contract maintenance charges
that have been assessed against the Guaranteed Periods, accumulated at 3.0%,
less any Withdrawal Charge, contract maintenance charge, or Premium tax due.
5
<PAGE> 6
- --------------------------------------------------------------------------------
DEFINITIONS (CONT'D)
- --------------------------------------------------------------------------------
GUARANTEED PERIOD CONTRACT VALUE. The sum of all amounts held under this
contract in the Guaranteed Periods.
GUARANTEED PERIOD. A period of time during which the Company guarantees a
specified interest rate which is equal to or greater than the Minimum
Guaranteed Rate shown on the contract data page.
GUARANTEED PERIOD WITHDRAWAL VALUE. This amount is equal to the Guaranteed
Period Contract Value less any applicable Withdrawal Charge, contract
maintenance charge and Interest Rate Adjustment.
INCOME DATE. The date on which income payments are to begin. This date is
established when You start Your contract and can be changed in the future.
INITIAL GUARANTEED RATE. The rate of interest declared by the Company for a
specified Guaranteed Period. In no event will the Initial Guaranteed Rate be
less than the Minimum Guaranteed Rate shown on the contract data page.
INTEREST RATE ADJUSTMENT. An adjustment applied, with certain exceptions, to
amounts withdrawn, transferred or annuitized from a Guaranteed Period prior to
the end of such Guaranteed Period.
ISSUE DATE. The date your contract is issued, as shown on the contract data
page.
LATEST INCOME DATE. The date on which the Owner attains age 90 under a
Non-Qualified Plan Contract, or age 70 1/2 under a Qualified Plan Contract.
NON-QUALIFIED PLAN. A retirement plan which does not receive favorable tax
treatment under sections 401, 403, or 408 of the Internal Revenue Code, as
amended.
OWNER ("YOU," "YOUR"). The person or entity named in the application who is
entitled to exercise all rights and privileges under this contract. Usually,
but not always, the Owner is also the Annuitant. The Owner is responsible for
taxes, regardless of who receives Annuity benefits. Joint Owners share
ownership in all respects.
PORTFOLIO. A subdivision of the Separate Account invested wholly in shares of
one of the series of the Fund.
PREMIUM(S). Considerations paid into this contract by or on behalf of the
Owner.
QUALIFIED PLAN. A retirement plan that qualifies for favorable tax treatment
under sections 401, 403 or 408 of the Internal Revenue Code, as amended.
SEPARATE ACCOUNT CONTRACT VALUE. The sum of the value of all Portfolio
Accumulation Units held under this contract.
6
<PAGE> 7
- --------------------------------------------------------------------------------
DEFINITIONS (CONT'D)
- --------------------------------------------------------------------------------
SUBSEQUENT GUARANTEED RATE. The rate of interest declared by the Company for
the applicable subsequent Guaranteed Period, but in no event less than the
Minimum Guaranteed Rate shown on the contract data page.
VALUATION DAY. Each day the New York Stock Exchange is open for business. The
value of the Separate Account is determined at the close of the New York Stock
Exchange (currently 4:00 p.m. Eastern Time) on each Valuation Day.
VALUATION PERIOD. The period beginning at the close of business on a particular
Valuation Day and ending at the close of business on the next succeeding
Valuation Day.
WE, OUR, US, THE COMPANY. Jackson National Life Insurance Company of New York.
WITHDRAWAL CHARGE. A charge assessed against certain withdrawals.
WITHDRAWAL VALUE. The amount You are entitled to receive if You surrender this
contract. This amount is equal to the total Contract Value minus any applicable
Withdrawal Charge, contract maintenance charge and Interest Rate Adjustment.
7
<PAGE> 8
- --------------------------------------------------------------------------------
GENERAL PROVISIONS
- --------------------------------------------------------------------------------
ASSIGNMENT. The Owner may assign this contract before the Income Date, but the
Company will not be bound by an assignment unless it is in writing and has been
recorded by the Company. We are not responsible for any payments made before an
assignment is recorded. We assume no responsibility for the validity or tax
consequences of any assignment. If the contract is issued pursuant to a
Qualified Plan, it may not be assigned, pledged or otherwise transferred,
except as may be allowed under the Plan. If the Owner makes an assignment, the
Owner may have to pay income tax.
BENEFICIARY. The beneficiary is as named in the application unless later
changed by the Owner. If two or more persons are named, those surviving the
Owner will share equally unless otherwise stated. If there are no surviving
beneficiaries at the death of the Owner, the death benefit will be paid to the
estate of the Owner.
The Owner may change the beneficiary by written notice in a form satisfactory
to the Company. The change will take effect on the date We receive the notice
and it is recorded by the Company.
CONFORMITY WITH STATE LAWS. This contract will be interpreted under the laws of
the State of New York when it is issued. Any provision which, on the Issue
Date, is in conflict with New York law, is amended to conform to the minimum
requirements of such law.
CONTRACT MAINTENANCE CHARGE. An annual contract maintenance charge of no more
than $30 is charged against each contract. This charge reimburses the Company
for expenses incurred in establishing and maintaining records relating to a
contract. The contract maintenance charge will be assessed on each anniversary
of the Issue Date that occurs on or prior to the Income Date. In the event
that a total withdrawal is made, the contract maintenance charge will be
assessed as of the date of withdrawal without proration. The total contract
maintenance charge is allocated between the Portfolio(s) and the Guaranteed
Period(s) in proportion to the respective Contract Values similarly allocated.
ENTIRE CONTRACT. This contract was issued in consideration of Your application
and payment of the initial Premium. All of its pages, the application, a copy
of which is attached at issue, and all endorsements, amendments and attached
riders make up the entire contract.
MINIMUM BENEFITS. For any paid up Annuity option, cash value or death benefit,
the amount available under this contract will not be less than the minimum
requirements of the state where this contract was delivered.
MISSTATEMENT OF AGE OR SEX. If the age or sex of the Annuitant has been
misstated, the benefits will be those which the premiums paid would have
purchased at the correct age and sex. Any underpayments or overpayments will be
adjusted immediately by the Company, using an interest rate of 6% either as a
credit to or charge against the next succeeding payment by the Company.
8
<PAGE> 9
- --------------------------------------------------------------------------------
GENERAL PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
MODIFICATION OF CONTRACT. Any change or waiver of the provisions of this
Contract must be in writing and signed by the President, a Vice President, the
Secretary or Assistant Secretary of the Company. No agent has authority to
change or waive any provisions of this contract. The Company reserves the right
to change or modify the contract without prior consent or notice if federal or
state law requires Us to do so. Any such modifications will be subject to the
New York State Insurance Department's prior approval.
NONPARTICIPATING. This contract does not share in Our surplus or earnings.
PREMIUMS. Premiums are flexible. This means that the Owner may change the
amounts, frequency or timing of Premiums. The initial Premium must be at least
$5,000 for Non-Qualified Contracts and $2,000 for Qualified Contracts.
Subsequent Premiums must be at least $500 ($50 if made in connection with an
automatic payment plan). The Company reserves the right to refuse total
Premiums under this contract in excess of $1,000,000 without prior approval
from the Company. The Company may waive minimum Premium amounts.
Premiums may be allocated among one or more of the Guaranteed Periods and one
or more of the Portfolios. Such election may be made in any percent from 0% to
100% in whole percentages. The minimum that may be allocated to a Guaranteed
Period or a Portfolio under this contract is $100.
Just like initial Premiums, Owners making subsequent Premium payments should
specify how they want their Premiums allocated. Otherwise, the Company will
automatically process the Premium based on the most recent allocation on record
with the Company.
PREMIUM TAXES. The Company may deduct from the Contract Value any Premium taxes
or other taxes payable to a state or other government entity. Should we advance
any amount due, we are not waiving any right to collect such amounts at a later
date. We will deduct any withholding taxes required by applicable law.
PROOF OF AGE, SEX OR SURVIVAL. The Company may require satisfactory proof of
correct age or sex at any time. If any payment under this contract depends on
the Annuitant, Owner, or beneficiary being alive, the Company may require
satisfactory proof of survival.
SEPARATE ACCOUNT. The Separate Account is a separate investment account of the
Company. It is shown on the contract data page. The assets of the Separate
Account are the property of the Company. However, they are not credited with
earnings or chargeable with liabilities arising out of any other business the
Company may conduct. Each Portfolio is not chargeable with liabilities arising
out of any other Portfolio.
STATEMENT OF ACCOUNT. We will provide a statement of Contract Values at least
quarterly.
SUSPENSION OR DEFERRAL OF PAYMENTS. We may suspend or postpone any payments
from the contract if any of the following occur:
a) The New York Stock Exchange is closed;
b) Trading on the New York Stock Exchange is restricted;
c) An emergency exists such that it is not reasonably practical to dispose
of securities in the Separate Account or to determine the value of its
assets; or
d) The Securities and Exchange Commission, by order, so permits for the
protection of security holders.
9
<PAGE> 10
- --------------------------------------------------------------------------------
GENERAL PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
SUBSTITUTION OF FUND. If the shares of any series of the Fund should no longer
be available for investment by the Separate Account or if, in the judgment of
our Board of Directors, further investment in the shares of a Fund is no longer
appropriate in view of the purpose of the contract, We may substitute shares of
another mutual fund or a series within a mutual fund for Fund shares already
purchased or to be purchased in the future by Premiums held under this
contract. No substitution of securities may take place without prior approval
of the New York Insurance Department, and the Securities and Exchange
Commission, under any such requirements as it may impose.
WRITTEN NOTICE. Any notice we send to the Owner will be sent to the Owner's
last known address unless the Owner requests otherwise. Any written request or
notice must be sent to the Company. The Owner must promptly provide the Company
with notice of an address change.
10
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- --------------------------------------------------------------------------------
ACCUMULATION PROVISIONS FOR PORTFOLIOS
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE. The Separate Account Contract Value will go up or
down depending on the performance of the Portfolios. In order to monitor the
Separate Account Contract Value before the Income Date, the Company uses a unit
of measure called an Accumulation Unit. The value of an Accumulation Unit may
go up or down from day to day. During the income payout phase, the unit of
measure is called an Annuity Unit (please see Income Provisions for further
information).
Every Valuation Day the Company determines the value of an Accumulation Unit
for each of the Portfolios. This is done by:
(1) determining the total amount of money invested in the particular
Portfolio;
(2) subtracting from the amount any insurance charges and any other charges
such as taxes; and
(3) dividing this amount by the number of outstanding Accumulation Units.
When you make a Premium payment, the Company credits Your contract with
Accumulation Units. The number of Accumulation Units credited is determined by
dividing the amount of the Premium allocated to any Portfolio by the value of
the Accumulation Unit for that Portfolio.
- --------------------------------------------------------------------------------
ACCUMULATION PROVISIONS FOR GUARANTEED PERIOD
- --------------------------------------------------------------------------------
CREDITING OF INTEREST. Interest is credited and compounded daily to each
Guaranteed Period to yield an effective annual interest rate equal to the
interest rate we guaranteed at the beginning of each Guaranteed Period. We
will credit interest to the initial Premium payment from the Issue Date. We
will credit interest to subsequent Premiums from the date We receive them. The
rate of interest for each Guaranteed Period will be as declared in advance by
our Board of Directors but will never be less than 3%.
GUARANTEED PERIOD. You may allocate Premium or make transfers to one or more
Guaranteed Periods at any time prior to the Latest Income Date.
If you do not specify a Guaranteed Period at the time of renewal, we will elect
the same Guaranteed Period that has just expired. Within at least 15 days, but
not more than 45 days, prior to the end of any Guaranteed Period, We will
notify You of your ability to:
a) withdrawal amounts allocated to the Guaranteed Period within 30 days
following the end of such Guaranteed Period without an Interest Rate
Adjustment;
b) elect a Guaranteed Period of a different duration within 30 days
following the end of such Guaranteed Period;
c) elect a transfer to Portfolio(s) within 30 days following the end of such
Guaranteed Period; or
d) elect a Guaranteed Period with the same duration within 30 days following
the end of such Guaranteed Period.
If the Guaranteed Period elected extends beyond the Latest Income Date, We will
automatically elect the longest period that will not extend beyond such date.
If a renewal occurs within one year of the Latest Income Date, We will credit
interest up to the Latest Income Date at the then current declared guaranteed
interest rate for the one-year Guaranteed Period.
11
<PAGE> 12
- --------------------------------------------------------------------------------
ACCUMULATION PROVISIONS FOR GUARANTEED PERIOD (CONT'D)
- --------------------------------------------------------------------------------
INTEREST RATE ADJUSTMENT. Except during the 30-day period following the end of
a Guaranteed Period, any amount withdrawn or transferred from a Guaranteed
Period will be subject to an Interest Rate Adjustment. The Interest Rate
Adjustment will be calculated by multiplying the amount withdrawn, transferred
or annuitized by the formula described below:
(m/12)
[1+I]
----------- -1
(m/12)
[1+J]
wherein:
I = The interest rate credited to the current Guaranteed Period.
J = The interest rate that would be credited, at the time of withdrawal, to a
new Guaranteed Period with a duration equal to the number of years
remaining in the current Guaranteed Period, increased by 0.25%. Partial
years will be rounded up to the next full year. When no Guaranteed Period
of the required duration is available, the rate will be established by
linear interpolation.
m = Number of complete months remaining to the end of the current Guaranteed
Period.
There will be no Interest Rate Adjustment when J is greater than I but by less
than 0.25%.
In addition, the Interest Rate Adjustment will not apply to:
a) the payment of death benefit proceeds;
b) amounts withdrawn for contract fees or charges;
c) transfers relating to dollar cost averaging from the one-year Guaranteed
Period;
d) withdrawals taken in the 30-day period following the end of a Guaranteed
Period;
e) withdrawals taken under the Free Withdrawal provision;
f) cumulative withdrawals or transfers of up to 10% of the Guaranteed Period
value in the Contract Year;
g) income options that result in payments of 5 years or greater; or
h) amounts transferred or withdrawn from any one-year guaranteed option.
In no event will a total withdrawal from the Guaranteed Periods be less than
the Guaranteed Minimum Value.
If the Company no longer issues guaranteed rate contracts, then item J of the
interest rate adjustment will be determined by using the asked yield to
maturity of the U.S. Treasury Notes with the same remaining term, interpolating
where necessary, as published in The Wall Street Journal on the next succeeding
business day following the effective date of the Interest Rate Adjustment.
12
<PAGE> 13
- --------------------------------------------------------------------------------
TRANSFER PROVISIONS
- --------------------------------------------------------------------------------
TRANSFERS. Transfers between Portfolios and the Guaranteed Periods may be made
as described below. Transfers are not subject to Withdrawal Charges. However,
transfers from the Guaranteed Periods will be subject to any applicable
Interest Rate Adjustment. A transfer fee of no more than $25.00 will apply to
transfers in excess of 15 in a Contract Year. The dollar cost averaging and
rebalancing options are not considered transfers for purposes of calculating
the transfer fee.
The minimum transfer amount is $100. The remaining Contract Value of a
Portfolio or Guaranteed Period after a transfer must be at least $100. If a
transfer would cause a remaining value to be less than $100, all of the value
must be transferred, or no transfer can take place.
FROM PORTFOLIO TO PORTFOLIO. Both prior to and after the Income Date, the Owner
may transfer all or a portion of investment in one Portfolio to another
Portfolio. A transfer will result in the purchase of Accumulation Units in a
Portfolio and redemption of Accumulation Units in the other Portfolio.
Transfers will be effected at the end of the Valuation Period in which We
receive your request for transfer.
FROM PORTFOLIO TO THE GUARANTEED PERIOD. Prior to the Income Date, the Owner
may transfer all or a portion of the value in Portfolio(s) to a Guaranteed
Period. This will result in the redemption of Accumulation Units and will be
effected at the end of the Valuation Period in which We receive the Owner's
request for transfer.
FROM GUARANTEED PERIOD TO GUARANTEED PERIOD. Prior to the Income Date,
transfers may be made between Guaranteed Periods. Such transfers, other than
from a maturing Guaranteed Period within the 30-day period following its
expiration, will be subject to any applicable Interest Rate Adjustments.
GUARANTEED PERIOD TO PORTFOLIO(S). Prior to the Income Date, the Owner may
transfer values in Guaranteed Period(s) to the Portfolio(s). Transfers, other
than from a maturing Guaranteed Period within the 30-day period following its
expiration, will be subject to any applicable Interest Rate Adjustments.
DOLLAR COST AVERAGING ("DCA"). Under DCA, the Owner may authorize the
automatic transfer of a fixed dollar amount ($100 minimum) at regular intervals
from a source account to one or more of the Portfolios (other than the source
account) at the Accumulation Unit values determined on the dates of transfers.
The source account may be any of the Portfolios or the one-year Guaranteed
Period. The Owner may elect to have transfers made from one of these source
accounts. The intervals between transfers may be monthly, quarterly,
semi-annually or annually at the Owner's option. To qualify for DCA, there must
be a minimum total Contract Value of $15,000.
Another option under DCA is the periodic transfer of a selected percentage of
the value of the source account to one of the Portfolios (other than the source
account).
13
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- --------------------------------------------------------------------------------
TRANSFER PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
A written election of this service, on a form provided by the Company, must be
completed by the Owner in order to begin transfers. Once elected, transfers
from the source account will be processed periodically until either the value
of the source account is completely depleted or the Owner instructs the Company
in writing to cancel the transfers.
REBALANCING. The Owner may elect, on a form provided by the Company, to have
his/her Separate Account Value reallocated among Portfolios in designated
percentages on a periodic basis (monthly, quarterly, semi-annual or annual
basis, or at such other time interval as approved by the Company). The Company
reserves the right to assess a processing fee for this service.
14
<PAGE> 15
- --------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS
- --------------------------------------------------------------------------------
On or prior to the Income Date, the Owner may withdraw all or part of the
Contract Value under this contract by informing the Company. For full
withdrawal, this contract must be returned to the Company.
Except in connection with a systematic withdrawal program, the minimum partial
withdrawal amount is $500, or if less, your entire interest in the Portfolio or
Guaranteed Period from which a withdrawal is requested. The Owner's interest in
the Portfolio or Guaranteed Period must be at least $100 after the withdrawal
is completed.
The Owner may elect in writing on a form provided by the Company to take
systematic withdrawals by withdrawing a specified dollar amount (of at least
$50) on a monthly, quarterly, semiannual, or annual basis. A Withdrawal Charge
may apply to systematic withdrawals in accordance with the considerations under
"Withdrawal Charge." The Company reserves the right to discontinue offering
systematic withdrawals upon 30 days' written notice to Contract Owners;
however, any such discontinuation would not effect systematic withdrawal
programs already commenced.
Absent written notification to the contrary, withdrawals and any applicable
charges will be deducted from the Contract Value in proportion to their
allocation among the Portfolios and Guaranteed Periods. Withdrawals will be
based on values at the end of the Valuation Period in which a request for
withdrawal and the contract (in the case of a full withdrawal) is received by
the Company. Withdrawals may be subject to a Withdrawal Charge and Interest
Rate Adjustment.
DEFERMENT OF PAYMENTS. The Company may defer payments for up to six (6)
months. Subject to New York requirements, interest will be credited during such
deferral period.
WITHDRAWAL CHARGE. Except as otherwise stated in this contract, the Withdrawal
Charge for any amount withdrawn is based on the Contribution Year of Premium
payment and is a percentage of Premium payments.
The Withdrawal Charges associated with each new Premium are:
Contribution Year Withdrawal
of Premium Payment Charge Percentage
------------------ -----------------
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
15
<PAGE> 16
- --------------------------------------------------------------------------------
WITHDRAWAL PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
The Withdrawal Charge will be deducted from the remaining Contract Value such
that the actual reduction in Contract Value as a result of the withdrawal may
be greater than the withdrawal amount requested and paid. For purposes of
determining the Withdrawal Charge, withdrawals will be allocated first to
earnings, if any (which may be withdrawn free of Withdrawal Charge), and then
to Premium on a first-in, first-out basis such that all withdrawals are
allocated to Premium to which the lowest (if any) Withdrawal Charge applies.
Premiums that are no longer subject to the Withdrawal Charge (and not
previously withdrawn), plus earnings, may be withdrawn free of Withdrawal
Charges at any time.
FREE WITHDRAWAL. In addition, there may be a free withdrawal amount for the
first withdrawal of Premiums during a Contract Year from a Portfolio(s) or
Guaranteed Period(s). The free withdrawal amount is equal to 10% of Premium
that remains subject to the Withdrawal Charge and that has not previously been
withdrawn, less earnings. For purposes of this provision, earnings shall mean
any amount in the contract other than unliquidated Premium.
16
<PAGE> 17
- --------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS
- --------------------------------------------------------------------------------
DEATH OF OWNER BEFORE THE INCOME DATE: Upon the Owner's death, or the death of
any joint Owner, before the Income Date, the death benefit will be paid to the
beneficiary(ies) designated by You. Upon the death of a joint Owner, the
surviving joint Owner, if any, will be the designated beneficiary. Any other
beneficiary designation on record at the Company at the time of death will be
treated as a contingent beneficiary. Proceeds will be distributed on the death
of the first Owner, unless the joint Owner is the spouse.
DEATH BENEFIT AMOUNT BEFORE THE INCOME DATE: The standard death benefit is
equal to the greater of:
1. the Contract Value at the end of the Valuation Period during which due
proof of death and an election of the type of payment to the beneficiary
is received by the Company; or
2. the total Premium paid prior to the death of the Owner, minus the sum of:
a. the total withdrawals and any Withdrawal Charges assessed; and
b. Premium taxes incurred.
In addition, the Company will provide an enhanced death benefit. The enhanced
death benefit is equal to the greater of the standard death benefit and the
following amount, which is deemed to be $0 if the Owner dies prior to the
seventh (7th) Contract Year:
The Contract Value at the seventh Contract Year, plus any Premiums paid
since that time and prior to death, minus the sum of:
a. total withdrawals and any Withdrawal Charges assessed since such seventh
Contract Year; and
b. Premium taxes incurred since the seventh Contract Year,
The enhanced death benefit shall never exceed 250% of all Premiums paid to the
contract, reduced by the amount of any withdrawals.
DEATH BENEFIT OPTIONS BEFORE INCOME DATE In the event of the Owner's death or
any joint Owner's death before the Income Date, a beneficiary must request that
the death benefit be paid under one of the death benefit options below. In
addition, if the beneficiary is the spouse of the Owner, he or she may elect to
continue the contract, at the then Contract Value, in his or her own name and
exercise all the Owner's rights under the Contract. The following are the
death benefit options:
- - Option 1 - lump-sum payment of the death benefit; or
- - Option 2 - payment of the entire death benefit within 5 years of the date
of the death of the Owner or any joint Owner; or
- - Option 3 - payment of the death benefit under an Income Option over the
lifetime of the beneficiary or over a period not extending beyond the life
expectancy of the beneficiary, with distribution beginning within one year
of the date of the Owner's death or any joint Owner's death.
17
<PAGE> 18
- --------------------------------------------------------------------------------
DEATH BENEFIT PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
Any portion of the death benefit not applied under Option 3 within one year of
the date of an Owner's death must be distributed within five years of the date
of death.
If a lump-sum payment is requested, the amount will be paid within seven (7)
days of receipt of proof of death by the Company and the election unless the
suspension or deferral of payments provision is in effect.
Payment to the beneficiary, other than in a single sum, may only be elected
during the sixty-day period beginning with the date of receipt of proof of
death by the Company.
DEATH OF OWNER AFTER THE INCOME DATE: If the Owner, or any joint Owner, dies
after the Income Date, and the Owner is not an Annuitant, any remaining
payments under the Annuity option elected will continue at least as rapidly as
under the method of distribution in effect at the Owner's death. Upon the
Owner's death after the Annuity Date, the beneficiary becomes the Owner. Upon
the death of a joint Owner, 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 BEFORE INCOME DATE: Upon the death of an Annuitant, who is
not an Owner, before the Income Date, the Owner may designate a new Annuitant.
If no designation is made within 30 days of the death of the Annuitant, the
Owner will become the Annuitant.
If the Owner is a non-individual, the death of the primary Annuitant will be
treated as the death of the Owner and a new Annuitant may not be designated. A
change in the primary Annuitant will be treated as the death of the Owner.
DEATH OF ANNUITANT AFTER INCOME DATE: Upon the death of the Annuitant after
the Income Date, the death benefit, if any, will be as specified in the Income
Option elected. Death benefits will be paid at least as rapidly as under the
method of distribution in effect at the Annuitant's death.
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- --------------------------------------------------------------------------------
INCOME PROVISIONS
- --------------------------------------------------------------------------------
Any income benefits at the time of their commencement will not be less than
those that would be provided to a single premium immediate annuity applicant of
the same class.
INCOME DATE. The date on which Annuity payments are to begin which will be at
least one year after the Issue Date. The Owner may change the Income Date at
any time, at least seven days prior to the Income Date then indicated on the
Company's records, by written notice to the Company.
INCOME OPTIONS. The Owner, or any beneficiary who is so entitled, may elect to
receive a single sum at the end of the accumulation period. However, a single
sum distribution may be deemed to be a withdrawal, and at least a portion of it
may be subject to income tax. Alternatively, an Income Option may be elected.
The Owner may, upon written notice to the Company, elect an income option at
any time prior to the Income Date.
A change of income options is permitted if made at least seven days before the
Income Date. If no other income option is elected, monthly annuity payments
will be made in accordance with option 3 below, a life Annuity with 120 or 240
monthly payments guaranteed. Annuity payments may be made in monthly,
quarterly, semiannual or annual installments as selected by the Owner. However,
if the amount available to apply under an income option is less than, $2,000,
the Company may pay the Contract Value in a single sum. In addition, if the
first payment provided would be less than $20, the Company may require the
frequency of payments be at quarterly, semi-annual or annual intervals so as to
result in an initial payment of at least $20.
Upon written notice filed with the Company, all or part of the Contract Value
will be applied to provide one of the following income options. The portion of
the Contract Value which is in the Guaranteed Period immediately prior to the
Income Date, applied to an income option, will be subject to applicable
Interest Rate Adjustment.
- - OPTION 1 - LIFE INCOME An Annuity payable monthly during the lifetime of
the Annuitant. Under this option, no further payments are payable after
the death of the Annuitant, and there is no provision for a death benefit
payable to the beneficiary. Therefore, it is possible under option 1 for
the payee to receive only one monthly Annuity payment under this Contract.
- - OPTION 2 - JOINT AND SURVIVOR An Annuity payable monthly while both the
Annuitant and a designated second person are living. Upon the death of
either person, the monthly income payable will continue during the
lifetime of the survivor. If a reduced payment to the survivor is
desired, variable Annuity payments will be determined using either
one-half or two-thirds of the number of each type of Annuity Unit
credited. Fixed payments will be equal to either one-half or two-thirds
of the fixed payment payable during the joint life of the Annuitant and
the designated second person.
Annuity payments terminate automatically and immediately upon the death of
the surviving person without regard to the number or total amount of
payments received.
There is no minimum number of guaranteed payments, and it is possible to
have only one Annuity payment if both the Annuitant and the designated
second person die before the due date of the second payment.
19
<PAGE> 20
- --------------------------------------------------------------------------------
INCOME PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
- - OPTION 3 - LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED An
Annuity payable monthly during the lifetime of the Annuitant with the
guarantee that if, at the death of the Annuitant, payments have been made
for fewer than the guaranteed 120 or 240 monthly periods, as elected by
the Owner, the balance of the guaranteed number of payments will be made
to the payee.
- - OPTION 4 - INCOME FOR A SPECIFIED PERIOD Under this option, a payee can
elect an Annuity payable monthly for any period of years from 5 to 30.
This election must be made for full 12-month periods. In the event the
payee dies before the specified number of payments has been made, the
beneficiary may elect to continue receiving the scheduled payments or may
alternatively elect to receive the discounted present value of any
remaining guaranteed payments in a lump sum. The discounted present value
is determined by taking the remaining guaranteed benefit as of the date
the calculation is being performed. The Company uses the rate assumed in
the calculation (3%).
- - ADDITIONAL OPTIONS. Other income options may be made available by the
Company.
FIXED ANNUITY PAYMENTS. Each fixed Annuity payment is the same amount on every
payment date. The payment is equal to:
1) Contract Value allocated to the fixed Annuity option as of the Income
Date; less
2) Any deduction for Premium tax; multiplied by
3) The appropriate Annuity factor in this Contract.
The Annuity factor is different for each income option. Reserves for fixed
Annuity payments are held in the Company's general account.
AMOUNT OF VARIABLE ANNUITY PAYMENTS.
FIRST VARIABLE PAYMENT. The dollar amount of the first monthly Annuity payment
will be determined by applying the portion of the Contract Value allocated to
Variable Annuity payments, less any applicable Premium taxes, to the Annuity
table applicable to the income option chosen. Those tables are based on a set
amount per $1,000 of proceeds applied.
The dollars applied are divided by 1,000, and the result multiplied by the
appropriate Annuity factor appearing in the table to compute the amount of the
first monthly Annuity payment. That amount is divided by the value of an
Annuity Unit as of the Income Date to establish the number of Annuity Units
representing each variable Annuity payment. The number of Annuity Units
determined for the first variable Annuity payment remains constant for the
second and subsequent monthly variable Annuity payments, assuming that no
reallocation of Contract Values is made. The total variable Annuity payment is
equal to the sum of the Annuity payments as determined above for each Portfolio
to which the Contract Value is allocated on the Annuity date.
NUMBER OF VARIABLE ANNUITY UNITS. The number of Annuity Units for each
applicable Portfolio is the amount of the first Annuity payment attributable to
that Portfolio divided by the value of the applicable Annuity Unit for that
Portfolio as of the Income Date. The number will not change as a result of
investment experience.
20
<PAGE> 21
- --------------------------------------------------------------------------------
INCOME PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
ANNUITY UNIT VALUE. The initial value of an Annuity Unit of each Portfolio is
set as of the date of annuitizations. The value may increase or decrease from
one Valuation Period to the next. For any Valuation Period, the value of an
Annuity Unit of a particular Portfolio is the value of that Annuity Unit during
the last Valuation Period, multiplied by the net investment factor for that
Portfolio for the current Valuation Period.
The NET INVESTMENT FACTOR is an index applied to measure the net investment
performance of a Portfolio from one Valuation Day to the next.
The net investment factor for any Portfolio for any Valuation Period is
determined by dividing (a) by (b) and then subtracting (c) from the result
where:
(a) is the result of:
(1) the net asset value of a Fund share held in the Portfolio
determined as of the Valuation Day at the end of the Valuation
Period, plus
(2) the per share amount of any dividend or other distribution
declared by the Fund if the "ex-dividend" date occurs during the
Valuation Period, plus or minus
(3) a per-share credit or charge with respect to any taxes paid
or reserved for by the Company during the Valuation Period which are
determined by the Company to be attributable to the operation of the
Portfolio (no federal income taxes are applicable under present
law);
(b) is the net asset value of the Fund share held in the Portfolio
determined as of the Valuation Day at the end of the preceding
Valuation Period; and
(c) is the contract insurance charges, which include the mortality and
expense risks, and administration charges, as shown on the contract
data page (page 3 of the contract).
The result is then multiplied by a second factor which offsets the effect of
the assumed investment rate of 3% per annum.
SUBSEQUENT VARIABLE ANNUITY PAYMENTS. After the first variable Annuity payment,
payments will vary in amount according to the investment performance of the
applicable Portfolios. The amount may change from month to month. The amount of
each subsequent payment is the sum of:
The number of Annuity Units for each Portfolio as determined for the first
Annuity payment, multiplied by the value of an Annuity Unit for that
Portfolio at the end of the Valuation Period immediately preceding in which
payment is due.
We guarantee that the amount of each variable Annuity payment will not be
effected by variations in expenses or mortality experience.
BASIS OF COMPUTATION. The actuarial basis for the Table of Income Options is
the 1983a Annuity Mortality Table, with interest at 3.00%.
21
<PAGE> 22
- --------------------------------------------------------------------------------
TABLE OF INCOME OPTIONS
- --------------------------------------------------------------------------------
The following table is for a contract whose net proceeds are $1,000, and will
apply pro rata to the amount payable under this Contract.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
UNDER OPTION 4 MONTHLY INSTALLMENT UNDER OPTIONS 1 OR 3
- --------------------------------------------------------------------------------------------------------------------------
No. of Monthly Age No. of Mos. Age No. of Mos. Age No. of Mos. Age No. of Mos.
Monthly Install- of Certain of Certain of Certain of Certain
Install- ments Payee Payee Payee Payee
----- ----- ----- -----
ments Male Life 120 240 Male Life 120 240 Female Life 120 240 Female Life 120 240
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 17.95 40 3.67 3.66 3.61 70 7.28 6.64 5.28 40 3.44 3.43 3.42 70 6.29 5.99 5.14
72 15.17 41 3.72 3.71 3.68 71 7.56 6.82 5.33 41 3.48 3.47 3.45 71 6.52 6.17 5.20
84 13.19 42 3.77 3.76 3.70 72 7.86 7.00 5.36 42 3.52 3.51 3.48 72 6.78 6.35 5.24
96 11.71 43 3.82 3.81 3.74 73 8.19 7.17 5.39 43 3.56 3.55 3.52 73 7.02 6.54 5.30
108 10.56 44 3.89 3.86 3.79 74 8.52 7.35 5.41 44 3.60 3.59 3.56 74 7.31 6.73 5.34
120 9.64 45 3.95 3.92 3.83 75 8.90 7.53 5.43 45 3.64 3.63 3.60 75 7.82 6.92 5.37
132 8.89 46 4.00 3.98 3.89 76 9.30 7.71 5.45 46 3.70 3.69 3.64 76 7.96 7.12 5.40
144 8.26 47 4.07 4.04 3.94 77 9.71 7.89 5.47 47 3.75 3.74 3.69 77 8.32 7.33 5.43
156 7.73 48 4.14 4.10 3.99 78 10.17 8.05 5.48 48 3.80 3.79 3.74 78 8.72 7.53 5.45
168 7.28 49 4.21 4.17 4.04 79 10.66 8.21 5.49 49 3.86 3.84 3.79 79 9.16 7.73 5.46
180 6.88 50 4.28 4.24 4.10 80 11.19 8.37 5.50 50 3.92 3.91 3.83 80 9.62 7.93 5.48
192 6.55 51 4.37 4.31 4.16 81 11.75 8.51 5.50 51 3.98 3.96 3.89 81 10.13 8.11 5.49
204 6.25 52 4.45 4.39 4.22 82 12.34 8.65 5.51 52 4.05 4.02 3.95 82 10.68 8.30 5.50
216 5.97 53 4.53 4.47 4.27 83 12.97 8.77 5.51 53 4.11 4.09 4.00 83 11.28 8.47 5.50
228 5.74 54 4.63 4.55 4.33 84 13.65 8.90 5.52 54 4.20 4.17 4.06 84 11.93 8.83 5.51
240 5.52 55 4.72 4.65 4.40 85 14.36 9.00 5.52 55 4.27 4.24 4.13 85 12.64 8.77 5.51
252 5.34 56 4.83 4.74 4.47 86 15.11 9.10 5.52 56 4.36 4.31 4.19 86 13.39 8.91 5.52
264 5.16 57 4.94 4.84 4.53 87 15.91 9.19 5.52 57 4.44 4.40 4.25 87 14.20 9.02 5.52
276 5.00 58 5.05 4.94 4.60 88 16.74 9.26 5.52 58 4.53 4.49 4.31 88 15.07 9.13 5.52
288 4.86 59 5.18 5.05 4.68 89 17.84 9.34 5.52 59 4.64 4.57 4.39 89 15.99 9.21 5.52
300 4.72 60 5.31 5.17 4.73 90 18.59 9.39 5.52 60 4.74 4.68 4.45 90 16.96 9.30 5.52
312 4.60 61 5.45 5.28 4.79 91 19.61 9.44 5.52 61 4.86 4.78 4.52
324 4.49 62 5.61 5.42 4.86 92 20.71 9.49 5.52 62 4.97 4.89 4.60
336 4.38 63 5.77 5.56 4.92 93 21.89 9.52 5.52 63 5.10 5.00 4.67
348 4.28 64 5.94 5.69 4.98 94 23.16 9.56 5.52 64 5.23 5.12 4.74
360 4.19 65 6.13 5.84 5.04 95 24.55 9.58 5.52 65 5.38 5.25 4.81
66 6.33 5.98 5.10 96 26.07 9.60 5.52 66 5.54 5.38 4.88
67 6.55 6.14 5.15 97 27.73 9.62 5.52 67 5.70 5.52 4.95
68 6.78 6.31 5.20 98 29.58 9.62 5.52 68 5.88 5.67 5.01
69 7.02 6.48 5.24 99 31.63 9.63 5.52 69 6.08 5.83 5.08
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: The table calculations under Option 2 are available from the Company
upon request.
22
<PAGE> 1
EXHIBIT 99.B5
JACKSON NATIONAL LIFE APPLICATION FOR
[JACKSON NATIONAL LIFE LOGO] FIXED AND VARIABLE ANNUITY
INSURANCE COMPANY OF NEW YORK
2900 Westchester Avenue, Purchase, NY 10577
- -----------------------------------------------------------------------
[GRAPHIC] THE OWNER
- -----------------------------------------------------------------------
Name Are you a U.S. citizen?
/ / Yes / / No
- -----------------------------------------------------------------------
Date of Birth Relationship
- -----------------------------------------------------------------------
Social Security Number/Federal I.D. [ ][ ][ ] - [ ][ ] - [ ][ ][ ][ ]
- -----------------------------------------------------------------------
Address (Number and Street)
- -----------------------------------------------------------------------
City State Zip
- -----------------------------------------------------------------------
Phone [ ][ ][ ] / [ ][ ][ ] - [ ][ ][ ][ ]
- -----------------------------------------------------------------------
[GRAPHIC] JOINT OWNER
- -----------------------------------------------------------------------
Name Are you a U.S. citizen?
/ / Yes / / No
- -----------------------------------------------------------------------
Date of Birth Relationship
- -----------------------------------------------------------------------
Social Security Number/Federal I.D. [ ][ ][ ] - [ ][ ] - [ ][ ][ ][ ]
- -----------------------------------------------------------------------
ANNUITANT (If other than Proposed Owner)
- -----------------------------------------------------------------------
Name (Print as desired in policy) Are you a U.S. citizen?
/ / Yes / / No
- -----------------------------------------------------------------------
Social Security Number/Federal I.D. [ ][ ][ ] - [ ][ ] - [ ][ ][ ][ ]
- -----------------------------------------------------------------------
Date of Birth Age Sex
- -----------------------------------------------------------------------
Address (Number and Street)
- -----------------------------------------------------------------------
City State Zip
- -----------------------------------------------------------------------
Phone [ ][ ][ ] / [ ][ ][ ] - [ ][ ][ ][ ]
- -----------------------------------------------------------------------
Policy Number (Home Office Use Only)
- -----------------------------------------------------------------------
JOINT ANNUITANT (optional)
- -----------------------------------------------------------------------
Name Are you a U.S. citizen?
/ / Yes / / No
- -----------------------------------------------------------------------
Social Security Number/Federal I.D. [ ][ ][ ] - [ ][ ] - [ ][ ][ ][ ]
- -----------------------------------------------------------------------
Date of Birth Relationship
- -----------------------------------------------------------------------
[GRAPHIC] THE BENEFICIARY
- -----------------------------------------------------------------------
(PRIMARY) NAME
- -----------------------------------------------------------------------
Date of Birth Relationship
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
CONTINGENT NAME
- -----------------------------------------------------------------------
Date of Birth Relationship
- -----------------------------------------------------------------------
USE DARK INK ONLY
- -----------------------------------------------------------------------
PREMIUM PAYMENT
- -----------------------------------------------------------------------
CAPITAL PROTECTION PROGRAM? / / Yes / / No
Which guaranteed option do you intend for the Capital Protection
Program? / / 1 year / / 3 year / / 5 year / / 7 year
Now that you have determined which guaranteed option you intend to
use, indicate below how you would like the balance of your initial
investment allocated:
- -----------------------------------------------------------------------
PREMIUM ALLOCATION (Whole percentages -
[GRAPHIC] must total 100%)
- -----------------------------------------------------------------------
JNL(R) Aggressive Growth Series %
------
JNL Capital Growth Series %
------
JNL Global Equities Series %
------
JNL/Alger Growth 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 %
------
Guaranteed Options
1 year % 5 year %
---- ----
3 year % 7 year %
---- ----
- -----------------------------------------------------------------------
Subsequent payments will be invested as indicated in Premium
Allocation above unless the Company is otherwise instructed.
- -----------------------------------------------------------------------
[GRAPHIC] PREMIUM PAYMENT
- -----------------------------------------------------------------------
Initial premium with application $
---------------------
IRC 1035 Exchange? / / Yes / / No
- -----------------------------------------------------------------------
Will this annuity replace any existing life insurance or annuity?
/ / Yes / / No Details:
Company
----------------------------------------------------------------
Policy No.
-------------------------------------------------------------
Have you completed a State Replacement form (where required)?
/ / Enclosed / / Not required
- -----------------------------------------------------------------------
[GRAPHIC] ANNUITY TYPE
- -----------------------------------------------------------------------
PLAN TYPE TYPE OF TRANSFER
/ / Non-tax Qualified / / IRC 1035 Exchange
/ / IRA - Individual Contribution year / / Direct Transfer
----
/ / IRA - Spousal Contribution year / / Direct Rollover
----
/ / IRA - Custodial Contribution year / / Non-direct Rollover
----
/ / IRA - SEP Contribution year / / Trustee to Trustee
---- Transfer
/ / 403(b)
/ / 401(k) Qualified Savings Plan
/ / HR-10 (KEOGH) Plans
/ / Other
--------------------------------------------------------------
- -----------------------------------------------------------------------
<PAGE> 2
DOLLAR-COST AVERAGING (MINIMUM $15,000)
I authorize the Company to transfer the following amount as indicated below
(min. $100). Transfers are available from all variable accounts and the
one-year guaranteed account. (Check transfer frequency.)
[ ] Monthly [ ] Quarterly [ ] Semiannually [ ] Annually
Please make the first transfer on ___ / ___ 19__ (m/d/y)
SOURCE FUND DESTINATION FUND AMOUNT
(One source fund only)
$
- -------------------------- ---------------------- -------------------
$
- -------------------------- ---------------------- -------------------
$
- -------------------------- ---------------------- -------------------
$
- -------------------------- ---------------------- -------------------
$
- -------------------------- ---------------------- -------------------
REBALANCING
Rebalancing to begin on ___/___/___ (date).
Rebalancing should occur:
[ ] Monthly [ ] Quarterly
[ ] Semiannually [ ] Annually
PRE-AUTHORIZED CHECK
(attach voided check)
I authorize JNL/NY to withdraw $_____________ starting __________ (month),
19_________ from my checking account for future premiums to the Contract with
the following frequency:
[ ] Monthly [ ] 5th or [ ] 20th [ ] Quarterly (20th of January, April,
July and October)
IMPORTANT: MAKE ALL CHECKS PAYABLE ONLY TO JACKSON NATIONAL LIFE INSURANCE
COMPANY OF NEW YORK
1. I hereby represent to the best of my knowledge and belief that each of the
statements and answers contained above are full, complete and true.
2. The Social Security or taxpayer identification number shown above is
certified to be correct.
3. I UNDERSTAND THAT ANNUITY PREMIUMS, BENEFITS, AND SURRENDER VALUES, IF ANY,
WHEN BASED ON THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT OF JNL/NY, ARE
VARIABLE AND MAY BE INCREASED OR DECREASED, AND THE DOLLAR AMOUNTS ARE NOT
GUARANTEED.
4. I have been given a current Prospectus for this variable annuity and for
each Series listed above.
5. The Contract I (we) have applied for is suitable for my (our) insurance
investment objective, financial situation and needs.
6. I UNDERSTAND THAT AMOUNTS PAYABLE FROM THE GUARANTEED ACCOUNT OPTION UNDER
THIS CONTRACT ARE SUBJECT TO AN INTEREST RATE ADJUSTMENT IF WITHDRAWN OR
TRANSFERRED PRIOR TO THE END OF THE APPLICABLE GUARANTEED PERIOD.
Dated and signed
at
------------------------------
City State
on 19
--------------------- ------
- -------------------------------------------------------------------------------
Signature of Annuitant
- -------------------------------------------------------------------------------
Signature of Owner if other than Annuitant Title
- -------------------------------------------------------------------------------
Joint Owner or Joint Annuitant
REGISTERED REPRESENTATIVE STATEMENT
Agent statement: To the best of my knowledge and belief, this application
[ ] will [ ] will not replace any life insurance or annuities. I have
complied with requirements for disclosure and/or replacement as necessary.
I certify that I am authorized and qualified to discuss the Contract.
- -------------------------------------------------------------------------------
Agent/Representative's Full Name JNL/NY Agent Number Phone No.
(Please Print)
- -------------------------------------------------------------------------------
Address City State
- -------------------------------------------------------------------------------
Signature of Agent/Representative Date
- -------------------------------------------------------------------------------
Broken/Dealer Name and No. Agent Number
APPLICATION, FUNDS AND TRANSFER PAPERWORK SHOULD BE SENT TO:
Jackson National Life Insurance Company of New York
2900 Westchester Ave.
Purchase, NY 10577
[JACKSON NATIONAL LIFE INSURANCE LOGO]
Insuring your financial future.(R)
Home Office: Purchase, New York
1/888/367-5651
FOR APPLICATION QUESTIONS OR ASSISTANCE, PLEASE CALL 888/367-5651 (7:00 A.M. TO
6:00 P.M. MT).
<PAGE> 1
EX-99.B6-a
DECLARATION AND CHARTER OF
FIRST JACKSON NATIONAL LIFE INSURANCE COMPANY
UNDER SECTION 1201 OF THE INSURANCE LAW
OF THE STATE OF NEW YORK
We, the undersigned, being natural persons each of whom is at least
eighteen years of age and citizens of the United States and at least three of
whom are residents of the State of New York, hereby declare our intention to
form a corporation for the purposes of transacting the kinds of insurance
specified in Paragraphs 1, 2, and 3 of Section 1113(a) of the Insurance Law of
the State of New York.
ARTICLE I
NAME AND PRINCIPAL OFFICE
SECTION 1. Name. The name of the corporation shall be First Jackson
National Life Insurance Company (the "Company").
SECTION 2. Principal Office. The principal office of the Company shall
be located in the County of Westchester, State of New York.
-1-
<PAGE> 2
ARTICLE II
PURPOSE AND POWERS
SECTION 1. Purpose. The purpose for which the Company is organized is to
transact the kinds of life and health insurance business specified in
Paragraphs 1, 2 and 3 of Subsection (a) of Section 1113 of the Insurance Law of
the State of New York, as follows:
(1) "Life insurance": every insurance upon the lives of human
beings, and every insurance appertaining thereto, including the granting
of endowment benefits, additional benefits in the event of death by
accident, additional benefits to safeguard the contract from lapse,
accelerated payments of part or all of the death benefit or a special
surrender value upon diagnosis (A) of terminal illness defined as a life
expectancy of twelve months or less, or (B) of a medical condition
requiring extraordinary medical care or treatment regardless of life
expectancy, or provide a special surrender value, upon total and
permanent disability of the insured, and optional modes of settlement of
proceeds; additional benefits to safeguard the contract against lapse in
the event of unemployment of the insured.
-2-
<PAGE> 3
Amounts paid the insurer for life insurance and proceeds applied
under optional modes of settlement or under dividend options may be
allocated by the insurer to one or more separate accounts pursuant to
section four thousand two hundred forty of the Insurance Law of the State
of New York;
(2) "Annuities": all agreements to make periodical payments for a
period certain or where the making or continuance of all or some of a
series of such payments, or the amount of any such payment, depends upon
the continuance of human life, except payments made under the authority
of paragraph (1) above. Amounts paid the insurer to provide annuities
and proceeds applied under optional modes of settlement or under dividend
options may be allocated by the insurer to one or more separate accounts
pursuant to section four thousand two hundred forty of the Insurance Law
of the State of New York;
(3) "Accident and health insurance": (i) insurance against death
or personal injury by accident or by any specified kind or kinds of
accident and insurance against sickness, ailment or bodily injury,
including insurance
-3-
<PAGE> 4
providing disability benefits pursuant to article nine of the workers'
compensation law of the State of New York, except as specified in item
(ii) hereof; and (ii) non-cancellable disability insurance, meaning
insurance against disability resulting from sickness, ailment or bodily
injury (but excluding insurance solely against accidental injury) under
any contract which does not give the insurer the option to cancel or
otherwise terminate the contract at or after one year from its effective
date or renewal date;
and any amendments to such paragraphs or provisions in substitution therefor
which may be hereafter adopted; and such other kind or kinds of business to the
extent necessarily or properly incidental to the kind or kinds of insurance
business which the Company is authorized to do.
SECTION 2. Mode and Manner of Exercising Powers. The mode and manner in
which the corporate powers of the Company shall be exercised are through a
Board of Directors and through such officers, employees and agents as such
Board shall employ.
ARTICLE III
-4-
<PAGE> 5
DIRECTORS
SECTION 1. Number of Directors. The number of Directors of the Company
shall be not less than nine (except for vacancies temporarily unfilled) nor
more than twenty-one; provided however, that at least one-third (but not less
than four) of such Directors shall be persons who are not officers or employees
of the Company or of any entity controlling, controlled by, or under common
control with the Company and who are not beneficial owners of a controlling
interest in the voting stock of the Company or any such entity and, provided
further, that if the admitted assets of the Company should exceed $500 million
during any calendar year, then the number of Directors shall be increased to
not less than thirteen within one year following the end of such calendar year.
The number of Directors shall be determined from time to time by a vote of a
majority of the entire Board of Directors. No decrease in the number of
Directors shall shorten the term of any incumbent Director.
SECTION 2. Election of Directors. The election of Directors of the
Company shall be at the Annual Meeting of the shareholders of the Company.
-5-
<PAGE> 6
SECTION 3. Annual Meeting. The Annual Meeting of the shareholders of the
Company shall be held on the first Tuesday in April of each year (or if a legal
holiday, on the next business day) at such place, within or without the State
of New York, and at such time as the Board of Directors shall by resolution
prescribe in accordance with the Company's By-Laws, for the purpose of electing
directors and for the transaction of such other business as may properly be
brought before the meeting. At such Annual Meeting all Directors shall be
elected for the ensuing year, and the Directors shall take office immediately
upon election and shall hold office until the next Annual Meeting and until
their successors are elected. At each Annual Meeting, each shareholder of
record on the books of the Company shall be entitled to one vote in person or
by proxy for each share of stock so held by the shareholder. Directors shall
be chosen and elected by a plurality of the whole number of the shares voted at
the meeting.
SECTION 4. Vacancy of the Board of Directors. Whenever any vacancy shall
occur in the Board of Directors by death, resignation, removal, or otherwise,
the remaining members of the Board, at a meeting called for that purpose, or at
any regular
-6-
<PAGE> 7
meeting shall elect a Director or Directors to fill the vacancy or vacancies
thus occasioned, and each Director so elected shall hold office for the
unexpired term of the Director whose place the individual has taken.
SECTION 5. Citizenship of the Directors. The majority of the Directors
of the Company shall at all times be citizens and residents of the United
States, not less than three of the Directors shall be residents of the State of
New York, and each Director shall be at least eighteen years of age.
SECTION 6. Initial Board of Directors. The names and post office
residence addresses of the initial Board of Directors who shall serve until the
first Annual Meeting of the Company are:
Name Address
---- -------
Robert P. Saltzman 6105 W. Long View Rd.
East Lansing, MI 48823
John A. Knutson 1422 W. Cutler Rd.
DeWitt, MI 48820
Paul B. Pheffer 6076 Marsh Rd.
Bldg. D-7
Haslett, MI 48840
William A. Gray 955 Audubon
E. Lansing, MI 48823
-7-
<PAGE> 8
Thomas J. Meyer 2318 Cheltingham Dr.
Lansing, MI 48917
Donald B. Henderson, Jr. 4A Rivermere Apartments
Bronxville, NY 10708
Robert L. Rosenthal 360 E. 72nd St.
New York NY 10021
Henry J. Jacoby 305 Riverside Dr.
Apt. 7-B
New York NY 10025
David L. Porteous 20434 Crestview Dr.
Reed City, MI 49777
SECTION 7. Removal of Directors. Any or all of the Directors may be
removed at any time, either for or without cause, by vote of the shareholders.
SECTION 8. Personal Liability. No Director shall be personally liable to
the Company or any of its shareholders for damages for any breach of duty as a
Director; provided however, that the foregoing provision shall not eliminate or
limit the liability of a Director if a judgment or other final adjudication
adverse to him or her establishes that his or her acts or omissions were in bad
faith or involved intentional misconduct or that he or she personally gained in
fact a financial profit or
-8-
<PAGE> 9
other advantage to which he or she was not legally entitled, or were acts or
omissions which (a) he or she knew or reasonably should have known violated the
Insurance Law of the State of New York or (b) violated a specific standard of
care imposed on Directors directly, and not by reference, by a provision of the
Insurance Law of the State of New York (or any regulations promulgated
thereunder) or (c) constituted a knowing violation of any other law.
ARTICLE IV
TERM AND CAPITAL
SECTION 1. Term of the Company. The duration of the corporate existence
of the Company shall be perpetual.
SECTION 2. Capital. The capital of the Company shall be Two Million and
00/100 Dollars ($2,000,000.00), which shall consist of Two Thousand shares
(2,000) of common stock with a par value of One Thousand and 00/100 Dollars
($1,000) each.
ARTICLE V
OFFICERS
-9-
<PAGE> 10
The officers of the Company shall be elected by the Board of Directors at an
annual meeting held at any time prior to the first Annual Meeting of the Board
and thereafter at its Annual Meeting, which shall be held immediately after the
Annual Meeting of the shareholders. The Board shall elect a Chairman of the
Board, a President, a Secretary, and a Treasurer, and it may, at its option at
any time appoint or elect such other officers as shall be provided in the
By-Laws. In case a quorum is not present, the Annual Meeting of the Board
shall be adjourned to another day by the Directors present. Officers elected
by the Board shall respectively hold office until the next Annual Meeting of
the Board, and until their successors are chosen and have qualified. All
officers shall serve at the pleasure of the Board, unless otherwise provided in
the By-Laws. Vacancies in the elective offices occurring in the interval
between Annual Meetings of the Board may be filled at any time by the Board,
and a person so selected shall hold office until his successor is chosen and
has qualified. One person may hold two or more offices, except the offices of
President and Secretary, if it shall be so provided in the By-Laws or by action
of the Board.
ARTICLE VI
-10-
<PAGE> 11
AMENDMENTS
This Charter or provisions thereof may be amended at any time in
accordance with the provisions of Section 1206 of the New York Insurance Law as
the same may be amended from time to time.
Dated this 1st day of June, 1995.
/s/ Robert P. Saltzman /s/ Donald B. Henderson, Jr.
- ---------------------- --------------------------------
Robert P. Saltzman Donald B. Henderson, Jr.
/s/ John A. Knutson /s/ Robert L. Rosenthal
- ---------------------- --------------------------------
John A. Knutson Robert L. Rosenthal
/s/ Paul B. Pheffer /s/ Henry J. Jacoby
- ---------------------- --------------------------------
Paul B. Pheffer Henry J. Jacoby
/s/ William A. Gray /s/ David L. Porteous
- ---------------------- --------------------------------
William A. Gray David L. Porteous
/s/ Thomas J. Meyer
- ----------------------
Thomas J. Meyer
-11-
<PAGE> 12
ACKNOWLEDGEMENT
STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )
Before me, a Notary Public, in and for the State of New York, personally
appeared Donald B. Henderson, Jr. personally known to me to be one of the
persons whose signatures appear above, and he signed the Declaration and
Charter of First Jackson National Life Insurance Company in my presence and
acknowledged the execution thereof to be his voluntary act and deed.
Dated the 14th day of June, 1995.
/s/ Carol O'Shaughnessy
-----------------------
Notary Public
My Commission Expires:
April 7, 1996
- ---------------------
<PAGE> 13
ACKNOWLEDGEMENT
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
Before me, a Notary Public, in and for the State of Michigan, personally
appeared Robert P. Saltzman personally known to me to be one of the persons
whose signatures appear above, and he signed the Declaration and Charter of
First Jackson National Life Insurance Company in my presence and acknowledged
the execution thereof to be his voluntary act and deed.
Dated the 1st day of June, 1995.
/s/ Kristen S. Loman
----------------------
Notary Public
My Commission Expires:
April 9, 1996
- ---------------------
<PAGE> 14
ACKNOWLEDGEMENT
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
Before me, a Notary Public, in and for the State of Michigan, personally
appeared John A. Knutson personally known to me to be one of the persons whose
signatures appear above, and he signed the Declaration and Charter of First
Jackson National Life Insurance Company in my presence and acknowledged the
execution thereof to be his voluntary act and deed.
Dated the 1st day of June, 1995.
/s/ Kristen S. Loman
----------------------
Notary Public
My Commission Expires:
April 9, 1996
- ---------------------
<PAGE> 15
ACKNOWLEDGEMENT
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
Before me, a Notary Public, in and for the State of Michigan, personally
appeared Paul B. Pheffer personally known to me to be one of the persons whose
signatures appear above, and he signed the Declaration and Charter of First
Jackson National Life Insurance Company in my presence and acknowledged the
execution thereof to be his voluntary act and deed.
Dated the 1st day of June, 1995.
/s/ Kristen S. Loman
----------------------
Notary Public
My Commission Expires:
April 9, 1996
- ---------------------
<PAGE> 16
ACKNOWLEDGEMENT
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
Before me, a Notary Public, in and for the State of Michigan, personally
appeared William A. Gray personally known to me to be one of the persons whose
signatures appear above, and he signed the Declaration and Charter of First
Jackson National Life Insurance Company in my presence and acknowledged the
execution thereof to be his voluntary act and deed.
Dated the 1st day of June, 1995.
/s/ Kristen S. Loman
----------------------
Notary Public
My Commission Expires:
April 9, 1996
- ---------------------
<PAGE> 17
ACKNOWLEDGEMENT
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
Before me, a Notary Public, in and for the State of Michigan, personally
appeared Thomas J. Meyer personally known to me to be one of the persons whose
signatures appear above, and he signed the Declaration and Charter of First
Jackson National Life Insurance Company in my presence and acknowledged the
execution thereof to be his voluntary act and deed.
Dated the 1st day of June, 1995.
/s/ Kristen S. Loman
----------------------
Notary Public
My Commission Expires:
April 9, 1996
- ---------------------
<PAGE> 18
ACKNOWLEDGEMENT
STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )
Before me, a Notary Public, in and for the State of New York, personally
appeared Robert L. Rosenthal personally known to me to be one of the persons
whose signatures appear above, and he signed the Declaration and Charter of
First Jackson National Life Insurance Company in my presence and acknowledged
the execution thereof to be his voluntary act and deed.
Dated the 12th day of June, 1995.
/s/ J. Edward Hurley, Jr.
-------------------------
Notary Public
My Commission Expires:
/s/ September 8, 1995
- ---------------------
<PAGE> 19
ACKNOWLEDGEMENT
STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )
Before me, a Notary Public, in and for the State of New York, personally
appeared Henry J. Jacoby personally known to me to be one of the persons whose
signatures appear above, and he signed the Declaration and Charter of First
Jackson National Life Insurance Company in my presence and acknowledged the
execution thereof to be his voluntary act and deed.
Dated the 19th day of June, 1995.
/s/ Carol O'Shaughnessy
-----------------------
Notary Public
My Commission Expires:
April 7, 1996
- ---------------------
<PAGE> 20
ACKNOWLEDGEMENT
STATE OF MICHIGAN )
) ss.
COUNTY OF OSCEOLA )
Before me, a Notary Public, in and for the State of Michigan, personally
appeared David L. Porteous personally known to me to be one of the persons
whose signatures appear above, and he signed the Declaration and Charter of
First Jackson National Life Insurance Company in my presence and acknowledged
the execution thereof to be his voluntary act and deed.
Dated the 3rd day of June, 1995.
/s/ Kristen S. Loman
-----------------------
Notary Public
My Commission Expires:
April 9, 1996
- ---------------------
<PAGE> 1
EX-99.B6-b
BY-LAWS
OF
FIRST JACKSON NATIONAL LIFE INSURANCE COMPANY
ARTICLE I
SHAREHOLDERS MEETING
SECTION 1. Annual Meeting. The annual meeting of the shareholders for
the election of the directors and for the transaction of such other business as
may come before such meeting shall be held on the first Tuesday in April of each
year, beginning in 1996, or if such day is a holiday, on the next succeeding
business day.
Section 2. Special Meetings. Special meetings of the shareholders may
be called by the Secretary upon written request of the Chairman of the Board,
the President, three directors, or shareholders owning of record at least
twenty-five percent (25%) of the shares of the Company entitled to vote at the
meeting. At a special meeting, no business will be transacted and no corporate
action shall be taken other than that stated in the notice of the meeting.
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Section 3. Place of Meeting. All meetings of the shareholders shall be
held at the office of the Company in Westchester County, or at such other place
or places within or without the State of New York as shall from time to time be
designated by the Board of Directors.
Section 4. Notice of Meeting. Notice of all meetings, annual or
special, shall be given by mailing to each shareholder entitled to vote thereat,
at least ten days and not more than fifty days before such meeting, a written or
printed notice of the time, place and purpose or purposes thereof.
Section 5. Quorum. The holders of a majority of the outstanding stock
entitled to vote at any meeting represented in person or by proxy, shall
constitute a quorum for all purposes. In the absence of a quorum, the
shareholders entitled to vote thereat, represented in person or by proxy, may
adjourn the meeting to a day certain.
Section 6. Voting. At all meetings of shareholders each share of stock
held by a shareholder entitled to vote on any matter, represented in person or
by proxy, shall be entitled to
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one vote. Proxies shall be dated, in writing and shall be signed by the
shareholder or the shareholder's attorney-in-fact; provided, however, that if
the shareholder is a corporation its proxy shall either have its corporate seal
affixed or shall be accompanied by evidence satisfactory to the Company that the
proxy has been signed on behalf of such shareholder by a duly authorized
officer. Two inspectors of election shall be appointed by the President at any
shareholders meeting at which inspectors are required.
Section 7. Written Consent. Any action required or permitted to be
taken at any meeting of shareholders may be taken without a meeting by the
written consent thereto of the shareholders, setting forth such action and
signed by the holders of all the outstanding shares entitled to vote thereon.
ARTICLE II
BOARD OF DIRECTORS
SECTION 1. Number of Directors. The number of Directors of this Company
shall be not less than nine (except for vacancies temporarily unfilled) nor more
than twenty-one; provided, however, that at least one-third (but not less than
four) of such Directors
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must not be officers or employees of the Company or any entity controlling,
controlled by, or under common control with the Company and who are not
beneficial owners of a controlling interest in the voting stock of the Company
or any such entity ("Outside Directors") and, provided further, that if the
admitted assets of the Company should exceed $500 million during any calendar
year, then the number of Directors shall be increased to not less than thirteen
within one year following the end of such calendar year. The number of Directors
shall be determined from time to time by a vote of a majority of the entire
Board of Directors. No decrease in the number of Directors shall shorten the
term of any incumbent Director.
At all times a majority of the directors shall be citizens and
residents of the United States and not less than three thereof shall be
residents of the State of New York. Directors shall be at least 18 years of age
but need not be shareholders.
SECTION 2. Election and Removal. The Board of Directors shall be
elected at the annual meeting of shareholders to serve until the next annual
meeting and until their successors shall be elected and qualified. Any or all of
the directors may be
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removed, with or without cause, by vote of the shareholders entitled to vote
thereon.
SECTION 3. Vacancies. Whenever any vacancy shall occur in the Board of
Directors by death, resignation, removal, or otherwise, the remaining members of
the Board, at a meeting called for that purpose, or at any regular meeting shall
elect a Director or Directors to fill the vacancy or vacancies thus occasioned,
and each Director so elected shall hold office for the unexpired term of the
Director whose place the individual has taken.
SECTION 4. Regular Meetings. Regular meetings of the Board of Directors
shall be held immediately following the annual meeting of the shareholders and
as frequently as the dispatch of business shall require and in any event at
least four times in each calendar year.
SECTION 5. Special Meetings. Special meetings of the Board of Directors may
be called by order of the Chairman of the Board, the President, the Secretary,
or upon the written request of any two members of the Board.
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SECTION 6. Place of Meeting. Meetings of the Board of Directors shall be
held at the office of the Company in Westchester County or at such other place
within or without the State of New York as may be designated in the notice
thereof.
SECTION 7. Notice of Meetings. Unless notified in writing, notice of all
regular or special meetings, other than the regular meeting held immediately
following the annual meeting of shareholders, shall be given by mailing to each
director at least seven days before such meeting, a written or printed notice of
the time and place thereof. Such notice may also be given by telegram or
personal delivery at least three business days before such meeting.
SECTION 8. Business Transacted at Meetings. No business will be transacted
and no corporate action shall be taken at any special meeting of the Board of
Directors, other than that stated in any notice of such meeting.
SECTION 9. Quorum. A quorum shall consist of a majority of the directors
then in office. At least one Outside Director must
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be included in any quorum for the transaction of business at any meeting of
the Board.
SECTION 10. Action by the Board. The vote of a majority of the directors
present at the time of the vote, if a quorum is present at such time, shall be
the act of the Board.
SECTION 11. Compensation. Each director shall be entitled to receive from
the Company for each meeting of the Board which he or she shall attend such fee,
if any, as shall be fixed by the Board of Directors, together with
reimbursement, to the extent authorized by resolution of the Board, for the
reasonable expenses incurred by him or her in connection with the performance or
his or her duties; provided such directors are not salaried officers or
employees of the Company; provided further that nothing herein contained shall
be construed to preclude any director from serving the Company in any other
capacity and receiving compensation or commissions therefor.
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ARTICLE III
EXECUTIVE COMMITTEE
SECTION 1. Membership. The Board of Directors by a majority vote of the
whole Board may elect from its own number an Executive Committee, to serve at
the pleasure of the Board, consisting of not less than one-third of the members
of the Board of Directors. Not less than one-third of the members of such
Committee shall be Outside Directors. The Executive Committee shall elect from
among its members a Chairman.
SECTION 2. Powers of the Executive Committee. The Executive Committee
during the intervals between meetings of the Board of Directors shall have and
may exercise, except as otherwise provided by statute, all the powers of the
Board with respect to the conduct and management of the business and property of
the Company and shall have the power to authorize the seal of the Company to be
affixed to all papers which may require it.
SECTION 3. Meetings. Meetings of the Executive Committee may be called
by order of the Chairman of the Committee or of any two members of the
Committee. The Committee shall prepare regular minutes of the transactions at
its meetings and for that purpose
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may appoint a secretary to record the proceedings thereat. The Committee shall
cause such minutes to be maintained in books kept for that purpose. All actions
of the Committee shall be reported to the Board of Directors at its next meeting
succeeding the date of such action.
SECTION 4. Place of Meeting. Meetings of the Executive Committee shall
be held at the office of the Company in Westchester County or at such other
place, within or without the State of New York, as may be designated in the
notice thereof.
SECTION 5. Notice of Meetings. Unless otherwise waived in writing,
notice of all meetings shall be given by mailing to each member at least three
days before such meeting, a written or printed notice of the time and place
thereof. Such notice may also be given by telegram or personal delivery at least
one day before such meeting.
SECTION 6. Quorum. A quorum shall consist of a majority of the total
number of members of the Committee then in office but not less than three
members. At least one member of the Committee who is an Outside Director must be
included in any
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quorum for the transaction of business at any meeting of the Committee.
SECTION 7. Voting. Action shall be taken by a majority vote of those
members present except that if the Committee consists of fewer than five
members, action shall be taken only by the unanimous vote of those members
present.
ARTICLE IV
FINANCE COMMITTEE
SECTION 1. Membership. The Board of Directors by a majority vote of the
whole Board may elect from its own number a Finance Committee to serve at the
pleasure of the Board consisting of not less than one-third of the members the
Board of Directors. Not less than one-third of the members of such Committee
shall be persons who are Outside Directors. The Finance Committee shall elect
from among its members a Chairman.
SECTION 2. Power of the Finance Committee. The Finance Committee shall
possess and may exercise all the powers of the Board of Directors with respect
to the investments of the funds of the Company.
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SECTION 3. Meetings. Meetings of the Finance Committee may be called by
order of the Chairman of the Committee or by any two members of the Committee.
The Committee shall prepare regular minutes of the transactions at its meetings
and for that purpose may appoint a secretary to record the proceedings thereat.
The Committee shall cause such minutes to be maintained in books kept for that
purpose. All actions of the Committee shall be reported to the Board of
Directors at its next meeting succeeding the date of such action.
SECTION 4. Place of Meetings. Meetings of the Finance Committee shall
be held at the office of the Company in Westchester County or at such other
place within or without the State of New York as may be designated in the notice
thereof.
SECTION 5. Notice of Meetings. Unless otherwise waived in writing,
notice of all meetings shall be given by mailing to each member at least three
days before such meeting, a written or printed notice of the time and place
thereof. Such notice may also be given by telegram or personal delivery at least
one day before such meeting.
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SECTION 6. Quorum. A quorum shall consist of a majority of the total
number of members of the Committee then in office but not less than three
members. At least one member of the Committee who is an Outside Director must be
included in any quorum for the transaction of business at any meeting of the
Committee.
SECTION 7. Voting. Action shall be taken by a majority vote of those
members present except that if the Committee consists of fewer than five
members, action shall be taken only by the unanimous vote of those members
present.
ARTICLE V
AUDIT AND COMPENSATION COMMITTEE
SECTION 1. Membership. The Board of Directors by a majority vote of the
whole Board shall elect from its own number an Audit and Compensation Committee
to serve at the pleasure of the Board consisting of not less than one-third of
the members of the Board of Directors. The members of the Committee shall be
comprised solely of Outside Directors. The Audit and Compensation Committee
shall elect from among its members a Chairman.
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SECTION 2. Power of the Audit and Compensation Committee. The Audit and
Compensation Committee shall possess and may exercise all the powers of the
Board of Directors with respect to recommending the selection of independent
certified public accountants, reviewing the Company's financial condition, the
scope and results of the independent audit and any internal audit, nominating
candidates for director for election by shareholders, evaluating the performance
of officers deemed by such Committee to be principal officers of the Company,
recommending to the Board of Directors the selection and compensation of such
principal officers and recommending to the Board of Directors any plan to issue
options to its officers and employees for the purchase of shares of stock,
pursuant to section one thousand two hundred seven of the New York Insurance
Law.
SECTION 3. Meetings. Meetings of the Audit and Compensation Committee
may be called by order of the Chairman of the Committee or by any two members of
the Committee. The Committee shall prepare regular minutes of the transactions
at its meetings and for that purpose may appoint a secretary to record the
proceedings thereat. The Committee shall cause such minutes to be maintained in
books kept for that purpose. All actions of the Committee
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shall be reported to the Board of Directors at its next meeting succeeding the
date of such action.
SECTION 4. Place of Meetings. Meetings of the Audit and Compensation
Committee shall be held at the office of the Company in Westchester County or at
such other place within or without the State of New York as may be designated in
the notice thereof.
SECTION 5. Notice of Meetings. Unless otherwise waived in writing, notice
of all meetings shall be given by mailing to each member at least three days
before such meeting, a written or printed notice of the time and place thereof.
Such notice may also be given by telegram or personal delivery at least one day
before such meeting.
SECTION 6. Quorum. A quorum shall consist of a majority of the total number
of members of the Committee then in office but not less than three members.
SECTION 7. Voting. Action shall be taken by a majority vote of those
members present except that if the Committee
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consists of fewer than five members, action shall be taken only by the unanimous
vote of those members present.
ARTICLE VI
COMMITTEES - GENERAL
SECTION 1. Other Board Committees. The Board of Directors may from time
to time by resolution passed by a majority of the whole Board, designate one or
more committees in addition to the Executive, Finance and Audit and Compensation
Committees, each committee to consist of not less than one-third of the
directors of the Company, for such purposes as the Board may from time to time
determine. Any such committee to the extent provided by resolution of the Board
shall have all the authority of the Board to the extent permitted by law and
shall have such functions and duties as the Board shall prescribe. Not less than
one-third of the members of such Committee shall be Outside Directors.
A majority of all the members of any such committee may determine its
action and fix the time and place of its meetings, unless the Board of Directors
shall otherwise provide except that if the committee consists of less than five
members, action shall be taken only by the unanimous vote of those members
present. The
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Board of Directors shall have power to change the members of any committee at
any time, to fill vacancies and to discharge any such committee, either with or
without cause, at any time.
SECTION 2. Alternates and Substitutes. The Board of Directors may by
resolution passed by a majority of the whole Board designate one or more
directors as alternate members of any Committee who may replace any absent
member of members at any meeting of such committee.
SECTION 3. Compensation. Each member of the Executive Committee,
Finance Committee, Audit and Compensation Committee and any other Committee
designated by the Board, shall be entitled to receive from the Company for each
meeting of any such Committee which he or she shall attend such fee, if any, as
shall be fixed by the Board of Directors, together with reimbursement, to the
extent authorized by resolution of the Board, for the reasonable expenses
incurred by him or her in connection with the performance of his or her duties;
provided such members are not salaried officers or employees of the Company.
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ARTICLE VII
OFFICERS
SECTION 1. Duties in General. All officers of the Company, in addition
to the duties prescribed by these By-Laws, shall perform such duties in the
conduct and management of the business and property of the Company as may be
determined by the Board of Directors. In the case of more than one person
holding an office of the same title, any of them may perform the duties of the
office except insofar as the Board of Directors or the President may otherwise
direct. Any two or more offices may be held by the same person except the
offices of President and Secretary.
SECTION 2. Number and Designation. The officers of the Company shall be
a Chairman of the Board, a President, a Secretary and a Treasurer. Other
officers, including one or more Vice-Presidents, may be designated as the Board
of Directors may from time to time deem advisable.
SECTION 3. Election and Term of Office. All officers shall be elected
annually by the Board of Directors at the meeting of the Board held immediately
following the annual meeting of shareholders and shall hold office at the
pleasure of the Board
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until their successors shall have been duly elected and qualified. The Board of
Directors shall also have the power at any time and from time to time to elect
or appoint or delegate its power to appoint, any additional officers not then
elected, and any such officer so elected or appointed shall serve at the
pleasure of the Board until the next annual meeting of shareholders and until
their respective successors shall be elected or appointed or qualified. A
vacancy in any office resulting from death, resignation, removal,
disqualification or from any other cause, shall be filled for the balance of the
unexpired term by the Board of Directors at a meeting called for that purpose,
or at any regular meeting, or, if such office has been filled prior to such
vacancy by appointment other than by the Board, by the committee or person
making such appointment.
SECTION 4. Chairman of the Board. The Chairman of the Board shall
preside at all meetings of the Board of Directors and of the shareholders and
shall perform such other duties as the Board of Directors shall confer on him or
her from time to time.
SECTION 5. President. The President shall be the Chief Executive
Officer and have general charge of the administrative
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affairs of the Company. In the absence of the Chairman of the Board or if such
office be vacant, the President shall have and possess all the powers of
Chairman of the Board and shall assume and perform all his duties with such
other duties as shall be prescribed by the Board of Directs. Except when
inconsistent with the Company's Charter and By-Laws, he shall have power to
employ, fix the duties and discharge such employees as he may deem necessary and
proper. The President shall make such reports to the Board of Directors as may
be required by it.
SECTION 6. Vice-Presidents. The Vice-Presidents shall have such powers
and perform such duties as may be assigned to them from time to time by the
Board of Directors or the President. The Board of Directors or the President may
from time to time determine the order of priority as between two or more
Vice-Presidents.
SECTION 7. Secretary. The Secretary shall have custody of the minutes
of the meetings of the shareholders, of the Board of Directors and all
committees of the Board of Directors; shall issue notices of meeting; shall have
custody of the Company's seal and corporate books and records; shall have charge
of the
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issuance, transfer and cancellation of stock certificates; shall have authority
to cancel stock certificates; shall have authority to attest and affix the
corporate seal to any instruments executed on behalf of the Company; and shall
perform such other duties as are incident to his or her office and as are
required by the Board of Directors or the President.
SECTION 8. Treasurer. The Treasurer shall perform the duties incident to
his or her office and such other duties as are required of him or her by the
Board of Directors or the President.
SECTION 9. Other Officers. Other officers who may from time-to time be
elected by the Board of Directors shall have such powers and perform such duties
as may be assigned to them by the Board of Directors or the President.
SECTION 10. Compensation. The compensation of the officers shall be fixed
by the Board of Directors.
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ARTICLE VIII
CAPITAL STOCK
SECTION 1. Certificates. Every shareholder shall be entitled to a
certificate, dated and numbered in sequence of issue, signed by the Chairman of
the Board, the President or Vice-President and by the Secretary or Assistant
Secretary or the Treasurer or Assistant Treasurer and under the seal of the
Company, certifying the number of shares and class of stock to which he or she
is entitled.
SECTION 2. Transfer. Transfers of stock may be made on the books of the
Company only by the holder thereof in person or by his or her attorney duly
authorized thereto in writing and upon surrender and cancellation of the
certificate there for duly endorsed or accompanied by a duly executed stock
power.
SECTION 3. Lost or Destroyed Certificates. The Board of Directors may
order a new certificate to be issued in place of a certificate lost or destroyed
upon proof of such loss or destruction and upon tender to the Company by the
shareholder of a bond in such amount and in such form and with or without surety
as may be ordered, indemnifying the Company against any liability,
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claim, loss, cost or damage by reason of such loss or destruction and the
issuance of a new certificate.
SECTION 4. Determining Shareholders of Record. In lieu of closing the
books of the corporation, the Board of Directors may fix a time in the future as
a record date for the determination of the shareholders entitled "To Notice of
and to Vote at any Meeting of Shareholders." The record date so fixed shall be
not less than ten (10) days nor more than fifty (50) days prior to the meeting.
When a record date is so fixed, only shareholders of record on that date are
entitled to notice of and to vote at the meeting notwithstanding any transfer of
any shares on the books of the corporation after the record date. If the Board
of Directors does not fix such a record date, only persons in whose names shares
entitled to vote stand on the stock records of the corporation on the day three
(3) days prior to any meeting of the shareholders are entitled to vote at the
meeting.
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ARTICLE IX
DIVIDENDS
Dividends may be declared from the legally available surplus of the
Company at such times and in such amounts as the Board of Directors may
determine.
ARTICLE X
CORPORATE FUNDS AND SECURITIES
SECTION 1. Deposits of Funds. Bills, notes, checks, negotiable
instruments or any other evidence of indebtedness payable to and received by the
Company may be endorsed for deposit to the credit of the Company by such
officers or agents of the Company as the Board of Directors, Executive
Committee, or Finance Committee may determine and, when authorized by the Board
of Directors, Executive Committee, or Finance Committee, may be endorsed for
deposit to the credit of agents of the Company in such manner as the Board of
Directors, Executive Committee, or Finance Committee may direct.
SECTION 2. Withdrawals of Funds. All disbursements of the funds of the
Company shall be made by check, draft or other order signed by such officers or
agents of the Company as the Board of
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Directors, Executive Committee, or Finance Committee may from time to time
authorize to sign the same.
SECTION 3. Sale and Transfer of Securities. All sales and transfers of
securities shall be made by any member of the Executive Committee or Finance
Committee or by any officer of the Company under authority granted by a
resolution of the Board of Directors, the Executive Committee or the Finance
Committee.
ARTICLE XI
MISCELLANEOUS PROVISIONS
SECTION 1. Voting Stock of Other Corporations. The Chairman of the
Board, the President, any Vice-President or any other officer designated by the
Board of Directors of the Company, the Executive Committee or Finance Committee
may execute in the name of the Company and affix the corporate seal to any proxy
or power of attorney authorizing the proxy or proxies or attorney or attorneys
named therein to vote the stock of any corporation held by this Company on any
matter on which such stock may be voted. If any stock owned by this Company is
held in any name other than the name of this Company, instructions as to the
manner in which such stock is to be voted on behalf of this Company may be given
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to the holder of record by the Chairman of the Board, the President, any
Vice-President, or any other officer designed by the Board of Directors,
Executive Committee or Finance Committee.
SECTION 2. Notices. Any notice under these by-laws may be given by mail
by depositing the same in a post office or postal letter box or postal mail
chute (hereinafter called "postal depository") in a sealed post-paid wrapper
addressed to the person entitled thereto at his or her address as the same
appears upon the books or records of the Company or at such other address as may
be designated by such person in a written instrument filed with the Secretary of
the Company prior to the sending of such notice, except that notices which may
be given by telegram or personal delivery may be telegraphed or delivered, as
the case may be, to such person at such address; and such notice shall be deemed
to be given at the time such notice is mailed, telegraphed, or delivered
personally.
SECTION 3. Waiver of Notice. Any shareholder, director or member of the
Executive Committee, Finance Committee, Audit and Compensation Committee or any
other Committee, may at any time waive any notice required to be given under
these by-laws if such
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waiver is given in writing and is signed either before, at or after the meeting
to which it relates. Presence at a meeting shall also constitute a waiver of
notice thereof unless the director objects to the failure to give such notice.
SECTION 4. Seal. The corporate seal shall have inscribed thereon the
name of the Company, the year of its organization and the words "Corporate Seal
New York." The seal may be used by causing it or a facsimile thereof to be
impressed or affixed or otherwise reproduced.
SECTION 5. Action Without a Meeting. In lieu of any special scheduled
meeting of the Board of Directors or any committee thereof, any action required
or permitted to be taken by the Board of Directors or any committee thereof, may
be taken without a meeting if all members of the Board, or of such committee,
consent in writing to the adoption of a resolution authorizing the action. The
resolution and the written consents thereto by the members of the Board or
committee shall be filed with the minutes of the proceedings of the Board or
committee. This section applies only when time is of the essence. This action
may not occur in lieu of a regular meeting.
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SECTION 6. Participating in Meeting by Telephone. Any one or more
members of the Board of Directors or any committee thereof may participate in a
meeting of the Board or of such committee by means of a conference telephone or
similar communications equipment allowing all persons participating in the
meeting to hear each other at the same time. Participation by such means shall
constitute presence in person at such meeting.
ARTICLE XII
AMENDMENTS
These by-laws may be amended in whole or in part by the vote of a
majority of all of the shareholders or the vote of a majority of all of the
members of the Board of Directors.
Any amendment adopted by the Board of Directors may be
rescinded upon majority vote of all of the shareholders of the Company.
ARTICLE XIII
INDEMNIFICATION
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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, his
or her testator or testatrix or intestate then 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, shall be indemnified by 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. The provisions of this article shall not adversely
affect any right to indemnification which any person may have apart from the
provisions of this article.
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