As filed with the Securities and Exchange Commission on January 6, 2000.
1933 Act File No:
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1940 Act File No:
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No.
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Post-Effective Amendment No.
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and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No.
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Jackson National Separate Account VI
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(Exact Name of Registrant)
Jackson National Life Insurance Company
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(Name of Depositor)
5901 Executive Drive, Lansing, Michigan 48911
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(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code:
(517) 394-3400
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With a copy to:
Patrick W. Garcy Joan Boros
Associate General Counsel Partner
Jackson National Life Jorden, Burt, Boros,
Insurance Company Cicchetti, Berenson and
5901 Executive Dr. Johnson LLP
Lansing, MI 48911 1025 Thomas Jefferson St.,
N.W., Suite 400 East
Washington, DC 2007
(Name and Address of Agent for Service)
Approximate date of proposed public offering: (Upon the effective date of this
Registration Statement).
Title of Securities Being Registered
Variable Portion of Individual Deferred Fixed and Variable Annuity Contracts
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>
JACKSON NATIONAL SEPARATE ACCOUNT - VI
REFERENCE TO ITEMS REQUIRED BY FORM N-4
Caption in Prospectus or
Statement of Additional
Information relating to
N-4 Item each Item
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Part A. Information Required in a Prospectus Prospectus
- ------- ------------------------------------ ----------
1. Cover Page Cover Page
2. Definitions Index of Special Terms
3. Synopsis Key Facts; Fee Tables
4. Condensed Financial Information Advertising; Appendix A -
Condensed Financial
Information
5. General Description of Registrant, The Company; The
Depositor and Portfolio Companies Separate Account;
Investment Divisions
6. Deductions Contract Charges
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 Contract Charges;
urchases
11. Redemptions Key Facts; Access To Your
Money
12. Taxes Taxes
13. Legal Proceedings Other Information
14. Table of Contents of the Statement of Table of Contents of the
Additional Information Statement of 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 Financial Statements
Part C.
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Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C of this Registration Statement.
<PAGE>
THE PERSPECTIVE COUNSELOR
FIXED AND VARIABLE ANNUITYSM
ISSUED BY JACKSON NATIONAL LIFE INSURANCE COMPANY AND JACKSON NATIONAL SEPARATE
ACCOUNT - VI
o Individual, flexible premium fixed and variable deferred annuity
o A fixed account which offers an interest rate that is guaranteed by Jackson
National Life Insurance Company (Jackson National)
o Investment divisions which purchase shares of the following series of
mutual funds:
JNL Series Trust
JNL/J.P. Morgan Enhanced S&P 500 Enhanced Stock Index Series
JNL/SSGA Enhanced Intermediate Bond Index Series
JNL/SSGA International Index Series
JNL/SSGA Russell 2000 Index Series
JNL/SSGA S&P 500 Index Series
JNL/SSGA S&P MidCap Index Series
PPM America/JNL Money Market Series
Please read this prospectus before you purchase a Perspective Counselor Fixed
and Variable Annuity. It contains important information about the contract that
you ought to know before investing. You should keep this prospectus on file for
future reference.
To learn more about the Perspective Counselor Fixed and Variable Annuity
contract, you can obtain a free copy of the Statement of Additional Information
(SAI) dated __________, 2000, by calling Jackson National at (800) 766-4683 or
by writing Jackson National at: Annuity Service Center, P.O. Box 378002, Denver,
Colorado 80237-8002. 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 appears at the end 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.
THE SEC HAS NOT APPROVED OR DISAPPROVED THE PERSPECTIVE COUNSELOR FIXED AND
VARIABLE ANNUITY OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. IT IS A
CRIMINAL OFFENSE TO REPRESENT OTHERWISE.
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
, 2000
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<PAGE>
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", "Standard & Poor's 500", and
"500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed
for use by Jackson National Life Insurance Company. Please see the Statement of
Additional Information which sets forth certain additional disclaimers and
limitations of liabilities on behalf of S&P.
"JNL(R)", "Jackson National(R)" and "Jackson National Life(R)" are trademarks of
Jackson National Life Insurance Company.
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
Index of Special Terms
Table of Contents of the Statement of Additional Information
<PAGE>
KEY FACTS
ANNUITY SERVICE CENTER: 1 (800) 766-4683
Mail Address: P.O. Box 378002, Denver, Colorado 80237-8002
Delivery Address: 8055 East Tufts Avenue, Second Floor,
Denver, Colorado 80237
INSTITUTIONAL MARKETING
GROUP SERVICE CENTER: 1 (800) 777-7779
Mail Address: P.O. Box 30386, Lansing, Michigan 48909-9692
Delivery Address: 5901 Executive Drive, Lansing, Michigan
48911 Attn: IMG
HOME OFFICE: 5901 Executive Drive, Lansing, Michigan
48911
THE ANNUITY CONTRACT The fixed and variable annuity contract
offered by Jackson National provides a means
for investing on a tax-deferred basis in a
fixed account of Jackson National and the
investment divisions. The contract is
intended for retirement savings or other
long-term investment purposes and provides
for a death benefit and income options.
INVESTMENT OPTIONS You can put money into the fixed account
and/or any of the investment divisions but
you may not put your money in more than
eighteen of the investment options during
the life of your contract.
EXPENSES The contract has insurance features and
investment features, and there are costs
related to each.
Jackson National makes a deduction for its
insurance charges which is equal to .65% of
the daily value of the contracts invested in
the investment divisions. During the
accumulation phase, Jackson National deducts
a $50 annual contract maintenance charge
from your contract ($30 in WA).
Jackson National 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.
There are also investment charges which
range from .60% to .90%, on an annual basis,
of the average daily value of the series,
depending on the series.
PURCHASES You can buy a contract for $25,000 or more .
You can add $5,000 or more at any time
during the accumulation phase ($2,000 or
more for a qualified plan contract).
ACCESS TO YOUR MONEY You can take money out of your contract
during the accumulation phase. You may have
to pay income tax and a tax penalty on any
money you take out.
INCOME PAYMENTS You may choose to receive regular income
from your annuity. During the income phase,
you have the same investment choices you had
during the accumulation phase.
DEATH BENEFIT If you die before moving to the income
phase, the person you have chosen as your
beneficiary will receive a death benefit.
FREE LOOK If you cancel your contract within twenty
days after receiving it (or whatever period
is required in your state), Jackson National
will return the amount your contract is
worth on the day we receive your request.
This may be more or less than your original
payment. If required by law, Jackson
National will return your premium.
TAXES The Internal Revenue 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 basis upon
which the contract is tax benefited
(non-qualified or qualified).
<PAGE>
FEE TABLE
OWNER TRANSACTION EXPENSES*
Transfer Fee:
$25 for each transfer in excess of 15 in a contract year ($10 in TX)
Contract Maintenance Charge:
$50 per contract per year ($30 in WA)
SEPARATE ACCOUNT ANNUAL EXPENSES (as a percentage of average account value)*
Mortality and Expense Risk Charges .50%
Administration Charge .15%
Total Separate Account Annual Expenses .65%
SERIES ANNUAL EXPENSES
(as a percentage of the series average net assets)
<TABLE>
<CAPTION>
Management
And Total Series
Administrative Other Annual
Fee Expenses Expenses
- ----------------------------------------------------------------- --------------- ------------- --------------
<S> <C> <C> <C>
JNL/J.P. Morgan Enhanced S&P 500 Enhanced
Stock Index Series ....................................... .90% 0% .90%
JNL/SSGA Enhanced Intermediate Bond Index Series ........... .75% 0% .75%
JNL/SSGA International Index Series ........................ .70% 0% .70%
JNL/SSGA Russell 2000 Index Series ......................... .60% 0% .60%
JNL/SSGA S&P 500 Index Series .............................. .60% 0% .60%
JNL/SSGA S&P MidCap Index Series ........................... .60% 0% .60%
PPM America/JNL Money Market Series ........................ .70% 0% .70%
</TABLE>
* SEE "CONTRACT CHARGES"
<PAGE>
EXAMPLES. You would pay the following expenses on a $1,000 investment, assuming
a 5% annual return on assets whether you maintain, surrender or annuitize the
contract:
<TABLE>
<CAPTION>
Time Periods
- -------------------------------------------------------------------------------- ------- --------- -------- ---------
1 3 5 10
year years years years
- -------------------------------------------------------------------------------- ------- --------- -------- ---------
<S> <C> <C> <C> <C>
JNL/J.P. Morgan Enhanced S&P 500 Enhanced
Stock Index Series ........................................ 16 50 86 187
JNL/SSGA Enhanced Intermediate Bond Index Series .......... 14 45 78 170
JNL/SSGA International Index Series ....................... 14 43 75 165
JNL/SSGA Russell 2000 Index Series ......................... 13 40 70 153
JNL/SSGA S&P 500 Index Series ............................. 13 40 70 153
JNL/SSGA S&P MidCap Index Series ............................ 13 40 70 153
PPM America/JNL Money Market Series ......................... 14 43 75 165
</TABLE>
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 series. 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.
THE EXAMPLES DO NOT REPRESENT PAST OR FUTURE EXPENSES. THE ACTUAL EXPENSES THAT
YOU INCUR MAY BE GREATER OR LESS THAN THOSE SHOWN.
FINANCIAL STATEMENTS.
You can find the following financial statements in the SAI:
o the financial statements of Jackson National for the year ended December
31, 1999
<PAGE>
THE ANNUITY CONTRACT
The fixed and variable annuity contract offered by Jackson National is a
contract between you, the owner, and Jackson National, an insurance company. The
contract provides a means for investing on a tax-deferred basis in a fixed
account and investment divisions. 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: (1) the
accumulation phase, and (2) the income phase. During the accumulation phase,
earnings accumulate on a tax-deferred basis and are taxed as income when you
make a withdrawal. Under qualified plans earnings also accumulate on a
tax-deferred basis.
The contract offers a fixed account. Jackson National will credit interest to
the fixed account. Such interest will be credited at the annual interest rate or
rates Jackson National prospectively declares from time to time. Any such rate
or rates so determined will remain in effect for a period of one year so long as
such deposited amount remains in the fixed account. Subsequent interest rates
may be higher or lower than those rates previously set by Jackson National.
Jackson National guarantees that it will credit interest at not less than 3%
annually.
The contract also offers investment divisions. The investment divisions are
designed to potentially offer a higher return than the fixed account. 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 upon the
performance of the investment divisions you select. The amount of the income
payments you receive during the income phase also will depend, in part, on the
performance of the investment divisions you choose for the income phase.
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 will not be bound until it receives written notice
of the assignment.
THE COMPANY
Jackson National is a stock life insurance company organized under the laws of
the state of Michigan in June 1961. Its legal domicile and principal business
address is 5901 Executive Drive, Lansing, Michigan 48911. Jackson National is
admitted to conduct life insurance and annuity business in the District of
Columbia and all states except New York. Jackson National is ultimately a
wholly-owned subsidiary of Prudential plc (London, England).
Jackson National 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.
THE FIXED ACCOUNT
If you select the fixed account, your money will be placed with Jackson
National's general account assets. The fixed account is not registered with the
SEC and the SEC does not review the information we provide to you about the
fixed account. Your contract contains a more complete description of the fixed
account.
THE SEPARATE ACCOUNT
The Jackson National Separate Account - VI was established by Jackson National
on December 14, 1999, pursuant to the provisions of Michigan law, as a
segregated asset account of the company. The separate account meets the
definition of a "separate account" under the federal securities laws and is
registered with the SEC as a unit investment trust under the Investment Company
Act of 1940, as amended.
The assets of the separate account legally belong to Jackson National and the
obligations under the contracts are obligations of Jackson National. However,
the contract assets in the separate account are not chargeable with liabilities
arising out of any other business Jackson National 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 may
issue.
The separate account is divided into investment divisions. Jackson National does
not guarantee the investment performance of the separate account or the
investment divisions.
INVESTMENT DIVISIONS
You can put money in any or all of the investment divisions; however, you may
not allocate your money to more than eighteen investment options during the life
of your contract. The investment divisions purchase shares of the following
series of mutual funds:
JNL Series Trust
JNL/J.P. Morgan Enhanced S&P 500 Stock Index Series
JNL/SSGA Enhanced Intermediate Bond Index Series
JNL/SSGA International Index Series
JNL/SSGA Russell 2000 Index Series
JNL/SSGA S&P 500 Index Series
JNL/SSGA S&P MidCap Index Series
PPM America/JNL Money Market Series
The series are described in the attached prospectuses for the JNL Series Trust.
Jackson National Financial Services, LLC serves as investment adviser for all of
the series. The sub-adviser for each series is listed in the following table:
Sub-Adviser Series
- ----------- ------
J.P. Morgan Investment Management Inc. JNL/J.P. Enhanced S&P 500 Stock
Index Series
PPM America, Inc.
PPM America/JNL Money Market Series
State Street Global Advisors JNL/SSGA Enhanced Intermediate Bond
Index Series
JNL/SSGA International Index Series
JNL/SSGA Russell 2000 Index Series
JNL/SSGA S&P 500 Index Series
JNL/SSGA S&P MidCap Index Series
Depending on market conditions, you can make or lose money in any of the
investment divisions. You should read the prospectuses for the JNL Series Trust
carefully before investing. Additional investment divisions may be available in
the future.
VOTING RIGHTS. To the extent required by law, Jackson National 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 receives instructions, we will vote all the shares Jackson National
owns in proportion to those instructions.
SUBSTITUTION. Jackson National may be required to substitute a mutual fund
series with another mutual fund series or mutual fund. We will not do this
without any required approval of the SEC. Jackson National will give you notice
of such transactions.
CONTRACT CHARGES
There are charges and other expenses associated with the contracts that reduce
the return on your investment in the contract. These charges may be a lesser
amount where required by state law or as described below, but will not be
increased. These charges and expenses are:
INSURANCE CHARGES. Each day Jackson National 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 .65% of the
daily value of the contracts invested in an investment division, after expenses
have been deducted.
This charge is for the mortality risks, expense risks and administrative
expenses assumed by Jackson National. The mortality risks that Jackson National
assumes arise from our obligations under the contracts:
o to make income payments for the life of the annuitant during the income
phase;
o to provide a death benefit prior to the income date.
The expense risk that Jackson National assumes is the risk that our actual cost
of administering the contracts and the investment divisions will exceed the
amount that we receive from the administration charge and the contract
maintenance charge.
CONTRACT MAINTENANCE CHARGE. During the accumulation phase, Jackson National
deducts a $50 ($30 in Washington) 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 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 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 ($10 in TX). Jackson National may waive the transfer fee in
connection with pre-authorized automatic transfer programs, or may charge a
lesser fee where required by state law.
OTHER EXPENSES. Jackson National pays the operating expenses of the Separate
Account.
There are deductions from and expenses paid out of the assets of the series.
These expenses are described in the attached prospectuses for the JNL Series
Trust.
PREMIUM TAXES. Some states and other governmental entities charge premium taxes
or other similar taxes. Jackson National 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 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.
DISTRIBUTION OF CONTRACTS. Jackson National Life Distributors, Inc., located at
401 Wilshire Boulevard, Suite 1200, Santa Monica, California 90401, serves as
the distributor of the contracts. Jackson National Life Distributors, Inc. is a
wholly-owned subsidiary of Jackson National.
Commissions may be paid to broker-dealers who sell the contracts. While
commissions may vary, they are not expected to exceed 4% of any premium payment.
Under certain circumstances, Jackson National may pay bonuses, overrides, and
marketing allowances, in addition to the standard commissions. Jackson National
may use any of its corporate assets to cover the cost of distribution, including
any profit from the contract insurance charges.
PURCHASES
MINIMUM INITIAL PREMIUM:
o $25,000 under most circumstances
o The maximum we accept without our prior approval is $1 million.
MINIMUM ADDITIONAL PREMIUMS:
o $5,000 ($2,000 for a qualified plan contract.)
You can pay additional premiums at any time during the accumulation phase.
The minimum that you may allocate to the fixed account or investment division is
$100. There is a $100 minimum balance requirement for each fixed account and
investment division.
When you purchase a contract, Jackson National will allocate your initial
premium to the fixed account and/or one or more of the investment divisions you
have selected. Your allocations must be in whole percentages ranging from 0% to
100%. Jackson National will allocate additional premiums in the same way unless
you tell us otherwise.
There may be more than eighteen investment options available under the contract;
however, you may not allocate your money to more than eighteen investment
options including the fixed account during the life of your contract.
Jackson National will issue your contract and allocate your first premium within
2 business days after we receive your first premium and all information that we
require for the purchase of a contract. If we do not receive all of the
information that we require, we will contact you to get the necessary
information. If for some reason Jackson National 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 required information.
The Jackson National 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 divisions
will go up or down depending on the performance of the underlying mutual fund
series. In order to keep track of the value of your contract, Jackson National
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 determines the value of an accumulation unit
for each of the investment divisions. This is done by:
1. determining the total amount of money invested in the particular
investment division;
2. subtracting any insurance charges;
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 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 division by the value of the accumulation
unit for that investment division.
TRANSFERS
You can transfer money among the fixed account and investment divisions during
the accumulation phase. During the income phase, you can transfer money between
investment divisions.
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 the fixed account or investment division would be less than $100 after a
transfer, you must transfer the entire value or you may not make the transfer.
TELEPHONE TRANSACTIONS. You may make transfers by telephone, unless you elect
not to have this privilege. When authorizing a transfer, you must complete your
telephone call by the close of Jackson National's business day (usually 4:00
p.m. Eastern time) in order to receive that day's accumulation unit value for an
investment division.
Jackson National has procedures which are designed to provide reasonable
assurance that telephone authorizations are genuine. Our procedures include
requesting identifying information and tape recording telephone communications.
Jackson National and its affiliates disclaim all liability for any claim, loss
or expense resulting from any alleged error or mistake in connection with a
telephone transfer which was not properly authorized by you. However, if Jackson
National fails to employ reasonable procedures to ensure that all telephone
transfers are properly authorized, we may be held liable for such losses.
Jackson National reserves the right to modify or discontinue at any time and
without notice the acceptance of instructions from someone other than you and/or
the telephone transfer privilege.
ACCESS TO YOUR MONEY
You can have access to the money in your contract:
o by making either a partial or complete withdrawal, or
o by electing to receive income payments.
Your beneficiary can have access to the money in your contract when a death
benefit is paid.
When you make a complete withdrawal you will receive:
1. the value of the contract on the day you made the withdrawal;
2. less any premium tax; and
3. less any contract maintenance charge.
Except in connection with the systematic withdrawal program, you must withdraw
at least $500 or, if less, the entire amount in the fixed account or investment
division from which you are making the withdrawal. After your withdrawal, you
must have at least $100 left in the fixed account or investment division.
Your withdrawal request must be in writing. Jackson National will accept
withdrawal requests submitted via facsimile. There are risks associated with not
requiring original signatures in order to disburse contract holder monies.
INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY WITHDRAWAL
YOU MAKE.
There are limitations on withdrawals from qualified plans. 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 OR TRANSFERS. Jackson National may be required to
suspend or delay withdrawals or transfers from an investment division when:
a) the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
b) trading on the New York Stock Exchange is restricted;
c) an emergency exists so that it is not reasonably practicable to dispose of
securities in the Separate Account or determine division value of its
assets; or;
d) the SEC, by order, may permit for the protection of owners.
The applicable rules and regulations of the SEC will govern whether the
conditions described in (b) and/or (c) exist.
Jackson National has reserved the right to defer payment for a withdrawal or
transfer from the fixed account for the period permitted by law, but not more
than six months.
INCOME PAYMENTS (THE INCOME PHASE)
The income phase occurs when you begin receiving regular payments from your
contract. The income date is the month and year in which those payments begin.
The income date must be at least one year after your contract is issued. You can
choose the income date and an income option. The income options are described
below.
If you do not choose an income option, we will assume that you selected Option 3
which provides a life annuity with 120 months of guaranteed payments.
You can change the income date or income option at any time before the income
date. You must give us 7 days notice. Income payments must begin by your 90th
birthday under a non-qualified contract (or an earlier date under a qualified
contract if required by law).
At the income date, you can choose whether payments will come from the fixed
account, the investment divisions 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.
You can choose to have income payments made monthly, quarterly, semi-annually,
or annually. However, if you have less than $5,000 to apply toward an income
option and state law permits, Jackson National may provide your payment in a
single lump sum. Likewise, if your first income payment would be less than $50
and state law permits, Jackson National may set the frequency of payments so
that the first payment would be at least $50.
INCOME PAYMENTS FROM INVESTMENT DIVISIONS. If you choose to have any portion of
your income payments come from the investment division(s), the dollar amount of
your payment will depend upon three things:
1. the value of your contract in the investment division(s) on the income
date;
2. the 4.5% assumed investment rate used in the annuity table for the
contract; and
3. the performance of the investment division you selected.
Jackson National calculates the dollar amount of the first income payment that
you receive from the investment divisions. We then use that amount to determine
the number of annuity units that you hold in each investment division. The
amount of each subsequent income payment is determined by multiplying the number
of annuity units that you hold in an investment division by the annuity unit
value for that investment division.
The number of annuity units that you hold in each investment division does not
change unless you reallocate your contract value among the investment divisions.
The annuity unit value of each investment division will vary based on the
investment performance of the underlying mutual fund series. If the actual
investment performance exactly matches the assumed rate at all times, the amount
of each income payment will remain equal. If the actual investment performance
exceeds the assumed rate, your income payments will increase. Similarly, if the
actual investment performance is less than the assumed rate, your income
payments will decrease.
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.) The following income options may not be available in all states.
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 the annuitant's life, but with
payments continuing to the beneficiary for the remainder of 10 or 20 years (as
you select) if the annuitant dies before the end of the selected period.
Option 4 - Income for a Specified Period. This income option provides
monthly payments for any number of years from 5 to 30.
Additional Options - Other income options may be made available by Jackson
National.
None of the income options, except Option 4, are redeemable once payments have
begun. One may make partial or full withdrawals of Annuity value under Option 4.
Jackson National will utilize the assumed rate of interest in commuting the
value of your withdrawal. Because of the potential tax consequences of a full or
partial surrender, you should consult a competent tax adviser regarding a
surrender.
Participants under qualified plans as well as contract owners, annuitants, and
designated beneficiaries are cautioned that you may not be able to take a
partial withdrawal or surrender the contract under a qualified plan. You should
seek competent advice concerning the terms and conditions of the particular
qualified plan and use of the contract with that plan.
DEATH BENEFIT
The death benefit is calculated as of the date we receive complete claim forms
and proof of death from the beneficiary of record.
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. 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:
1. current contract value; OR
2. the total premiums (less withdrawals, charges and premium taxes) since
contract issue. -- whichever is GREATER.
From the time of death of the owner until the death benefit is determined, any
amount allocated to an investment division will be subject to investment risk.
This investment risk is borne by the beneficiary(ies).
The entire death benefit must be paid within 5 years of the date of death unless
the beneficiary elects to have the death benefit payable under an income option.
The death benefit payable under an income option must be paid over the
beneficiary's lifetime or for a period not extending beyond the beneficiary's
life expectancy. Payments must begin within one year of the date of death.
Unless the beneficiary chooses to receive the death benefit in a single sum, the
beneficiary must elect an income option within the 60 day period beginning with
the date Jackson National 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 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 ON OR AFTER THE INCOME DATE. If you or a joint owner die on or
after the income date, any remaining payments under the income option elected
will continue at least as rapidly as under the method of distribution in effect
at the date of death. If you die, the beneficiary becomes the owner. If the
joint owner dies, the surviving joint owner, if any, will be the designated
beneficiary. Any other beneficiary designation on record at the time of death
will be treated as a contingent beneficiary. A contingent beneficiary is
entitled to receive payment only after the beneficiary dies.
DEATH OF ANNUITANT. If the annuitant is not an owner or joint owner and the
annuitant dies before the income date, you can name a new annuitant. If you do
not name a new annuitant within 30 days of the death of the annuitant, you will
become the annuitant. However, if the owner is a non-natural person (for
example, a corporation), then the death of the annuitant will be treated as the
death of the owner, and a new annuitant may not be named.
If the annuitant dies on or after the income date, any remaining payments will
be as provided for in the income option selected. Any remaining payments 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. A FURTHER DISCUSSION
REGARDING TAXES IS INCLUDED IN THE SAI.
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 the tax-deferral that is provided by the contract or the
qualified plan). 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 investment in the contract 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 a trust holding the contract as an agent
for a natural person), 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), and
pension and profit-sharing plans, which include 401(k) plans and H.R.
10 Plans.
WITHDRAWALS - NON-QUALIFIED CONTRACTS. If you make a withdrawal from your
contract, the Code generally treats the withdrawal as first coming from earnings
and then from your premium payments. Withdrawn earnings are includible in
income. Additional information is provided in the SAI.
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) for
life or a period not exceeding life expectancy; (5) paid under an immediate
annuity; or (6) which come from premiums made prior to August 14, 1982.
WITHDRAWALS - QUALIFIED CONTRACTS. There are special rules that govern qualified
contracts. We have provided an additional discussion in the SAI.
WITHDRAWALS - TAX-SHELTERED ANNUITIES. The Code limits the withdrawal of amounts
attributable to purchase payments made under a salary reduction agreement from
Tax-Sheltered Annuities. Withdrawals can only be made when an owner: (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.
WITHDRAWALS - ROTH IRAS. Beginning in 1998, individuals may purchase a new type
of non-deductible IRA, known as a Roth IRA. Qualified distributions from Roth
IRAs are entirely federal income tax free. A qualified distribution requires
that the individual has held the Roth IRA for at least five years and, in
addition, that the distribution is made either after the individual reaches age
59 1/2, on account of the individual's death or disability, or as qualified
first-time home purchase, subject to $10,000 lifetime maximum, for the
individual, or for a spouse, child, grandchild, or ancestor.
WITHDRAWALS - INVESTMENT ADVISER FEES. The Internal Revenue Service has, through
a series of Private Letter Rulings, held that the payment of investment adviser
fees from an IRA or a Tax-Sheltered Annuity is permissible under certain
circumstances and will not be considered a distribution for income tax purposes.
The Rulings require that in order to receive this favorable tax treatment, the
annuity contract must, under a written agreement, be solely liable (not jointly
with the contract owner) for payment of the adviser's fee and the fee must
actually be paid from the annuity contract to the adviser. Withdrawals from
non-qualified contracts for the payment of investment adviser fees will be
considered taxable distributions from the contract.
DEATH BENEFITS. Any death benefits paid under the contract are taxable to the
beneficiary. The rules governing the taxation of payments from an annuity
contract, as discussed above, generally apply to the payment of death benefits
and depend on whether the death benefits are paid as a lump sum or as annuity
payments. Estate taxes may also apply.
RESTRICTIONS UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM (ORP). Contracts issued
to participants in ORP contain restrictions required under the Texas
Administrative Code. In accordance with those restrictions, a participant in ORP
will not be permitted to make withdrawals prior to such participant's
retirement, death, attainment of age 70 1/2 or termination of employment in a
Texas public institution of higher education. The restrictions on withdrawal do
not apply in the event a participant in ORP transfers the contract value to
another approved contract or vendor during the period of ORP participation.
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 believes that the underlying
investments are being managed so as to comply with these requirements.
OWNER CONTROL. Neither the Code nor the Treasury 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 would be considered the owner of the shares of the investment
divisions. If you are considered to be the owner of the shares, 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
divisions, to make transfers among the investment divisions or the number and
type of investment divisions owners may select from without being considered the
owner of the shares.
As discussed above, if you are deemed to possess too much control over the
assets of the Separate Account, the Contract would not be given tax-deferred
treatment and therefore the earnings allocable to the Contract would be subject
to federal income tax prior to receipt by you.
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
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 divisions from the Fixed
Account or any of the other investment divisions. This theoretically gives you a
lower average cost per unit over time than you would receive if you made a one
time purchase. The more volatile investment divisions may not result in lower
average costs and such divisions may not be an appropriate source of dollar cost
averaging transfers in volatile markets. Certain restrictions may apply.
Jackson National does not currently charge for participation in this program. We
may do so in the future.
REBALANCING. You can arrange to have Jackson National automatically reallocate
money between investment divisions periodically to keep the blend you select.
Jackson National does not currently charge for participation in this program. We
may do so in the future.
FREE LOOK. If you cancel the contract within twenty days after receiving it (or
whatever period is required in your state), Jackson National will return the
amount your contract is worth on the day we receive your request. This may be
more or less than your original payment. If required by law, Jackson National
will return your premium.
ADVERTISING. From time to time, Jackson National may advertise several types of
performance for the investment divisions.
o Total return is the overall change in the value of an investment in an
investment division over a given period of time.
o Standardized average annual total return is calculated in accordance
with SEC guidelines.
o Non-standardized total return may be for periods other than those
required or may otherwise differ from standardized average annual
total return. For example, if a series has been in existence longer
than the investment division, we may show non-standardized performance
for periods that begin on the inception date of the series, rather
than the inception date of the investment division.
o Yield refers to the income generated by an investment over a given period
of time.
Performance will be calculated by determining the percentage change in the value
of an accumulation unit by dividing the increase (decrease) for that unit by the
value of the accumulation unit at the beginning of the period. Performance will
reflect the deduction of the insurance charges and may reflect the deduction of
the contract maintenance charge. The deduction of the contract maintenance would
reduce the percentage increase or make greater any percentage decrease.
MARKET TIMING AND ASSET ALLOCATION SERVICES. Market timing and asset allocation
services must comply with Jackson National's administrative systems, rules and
procedures.
MODIFICATION OF THE CONTRACT. Only the President, Vice President, Secretary or
Assistant Secretary of Jackson National may approve a change to or waive a
provision of the contract. Any change or waiver must be in writing. Jackson
National may change the terms of the contract in order to comply with changes in
applicable law, or otherwise as deemed necessary by Jackson National.
LEGAL PROCEEDINGS. Jackson National has been named in civil litigation
proceedings which appear to be substantially similar to other litigation brought
against many life insurers alleging misconduct in the sale of insurance
products. These matters are sometimes referred to as market conduct litigation.
The litigation against JNL purports to include certain persons in the United
States who purchased life insurance and annuity products from JNL during the
period from 1981 to present. JNL has retained national and local counsel
experienced in the handling of such litigation. In addition, JNL is a defendant
in several individual actions that involve similar issues. At this time, it is
not feasible to make a meaningful estimate of the amount or range of loss that
could result from an unfavorable outcome in such actions.
There are no material legal proceedings, other than ordinary routine litigation
incidental to the business, to which Jackson National Life Distributors, Inc.,
or the Jackson National Separate Account VI are parties.
QUESTIONS. If you have questions about your contract, you may call or write to
us at:
o Jackson National Life Annuity Service Center: (800) 766-4683, P.O. Box
378002, Denver, Colorado 80237-8002
o Institutional Marketing Group Service Center: (800) 777-7779, P.O. Box
30386, Lansing, Michigan 48909-9692.
<PAGE>
INDEX OF SPECIAL TERMS
TERM PAGE
Accumulation Phase.......................................................
Accumulation Unit........................................................
Annuitant................................................................
Annuity Unit.............................................................
Annuity Unit Value.......................................................
Beneficiary..............................................................
Business Day.............................................................
Complete Withdrawal......................................................
Death Benefit............................................................
Expense Risk.............................................................
Fixed Account............................................................
Income Phase.............................................................
Investment Divisions.....................................................
Investment Options.......................................................
Mortality Risk...........................................................
Non-Qualified Contract...................................................
Owner....................................................................
Partial Withdrawal.......................................................
Payments.................................................................
Premium..................................................................
Qualified Contract.......................................................
<PAGE>
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
General Information and History .........................................
Services ................................................................
Purchase of Securities Being Offered ....................................
Underwriters ............................................................
Calculation of Performance ..............................................
Additional Tax Information ..............................................
Income Payments; Net Investment Factor ..................................
Financial Statements ....................................................
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
FLEXIBLE PREMIUM
INDIVIDUAL DEFERRED FIXED AND VARIABLE ANNUITY CONTRACTS
ISSUED BY THE JACKSON NATIONAL SEPARATE ACCOUNT - VI
OF JACKSON NATIONAL LIFE INSURANCE COMPANY
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 ___________________,
2000. The Prospectus may be obtained from Jackson National Life Insurance
Company by writing P. O. Box 378002, Denver, Colorado 82037-8002, or calling
1-800-766-4683. Not all investment divisions described in this SAI may be
available for investment.
TABLE OF CONTENTS
PAGE
General Information and History...............................................2
Services......................................................................2
Purchase of Securities Being Offered..........................................2
Underwriters..................................................................3
Calculation of Performance....................................................3
Additional Tax Information....................................................5
Income Payments; Net Investment Factor ......................................14
Financial Statements ........................................................15
<PAGE>
GENERAL INFORMATION AND HISTORY
Jackson National Separate Account - VI (Separate Account) is a separate
investment account of Jackson National Life Insurance Company (Jackson
National). Jackson National is a wholly-owned subsidiary of Brooke Life
Insurance Company, and is ultimately a wholly-owned subsidiary of Prudential
plc, London, England, a life insurance company in the United Kingdom.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX
OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR ANY ERRORS,
OMISSIONS, OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED,
AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE PORTFOLIO, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN.
S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY
OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL,
PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
SERVICES
Jackson National is the custodian of the assets of the Separate Account. The
custodian has custody of all cash of the Separate Account and attends to the
collection of proceeds of shares of the underlying fund bought and sold by the
Separate Account.
Effective October 15, 1999, KPMG LLP, 303 East Wacker Drive, Chicago, Illinois
60601, assumed responsibility for certain of the other audit and reporting
functions previously provided by PricewaterhouseCoopers LLP to Jackson National.
These changes were put into effect by the Jackson National as of the date
referenced above. Neither Jackson National nor the Separate Account has received
an adverse opinion, nor were there any disagreements with PricewaterhouseCoopers
LLP.
Jorden, Burt, Boros, Cicchetti, Berenson and Johnson LLP, 1025 Thomas Jefferson
Street, NW, Suite 400 East, Washington, D.C. 20007-0805 has provided advice on
certain matters relating to the federal securities and income tax laws in
connection with the contracts described in the Prospectus.
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
Life Distributors, Inc. (JNLD), 401 Wilshire Boulevard, Suite 1200, Santa
Monica, California 90401. JNLD is a subsidiary of Jackson National. No
underwriting commissions are paid by Jackson National to JNLD.
CALCULATION OF PERFORMANCE
When Jackson National advertises performance for an investment division (except
the PPM America/JNL Money Market Division), we will include quotations of
standardized average annual total return to facilitate comparison with
standardized average annual total return advertised by other variable annuity
separate accounts. Standardized average annual total return for an investment
division will be shown for periods beginning on the date the investment division
first invested in the corresponding series. We will calculate standardized
average annual total return according to the standard methods prescribed by
rules of the Securities and Exchange Commission.
Standardized average annual total return for a specific period is calculated by
taking a hypothetical $1,000 investment in an investment division at the
offering on the first day of the period ("initial investment"), and computing
the 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 average annual 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.
Jackson National may also advertise non-standardized total return.
Non-standardized total return may be for periods other than those required to be
presented or may otherwise differ from standardized average annual total return.
The contract is designed for long term investment, therefore Jackson National
believes that non-standardized total return that does not reflect the deduction
of any applicable withdrawal charge may be useful to investors. Reflecting the
deduction of the withdrawal charge decreases the level of performance
advertised. Non-standardized total return may also assume a larger initial
investment which more closely approximates the size of a typical contract.
Standardized average annual total return quotations will be current to the last
day of the calendar quarter preceding the date on which an advertisement is
submitted for publication. Both standardized average annual total return
quotations and non-standardized total return quotations will be based on rolling
calendar quarters and will cover at least periods of one, five, and ten years,
or a period covering the time the investment division has been in existence, if
it has not been in existence for one of the prescribed periods. If the
corresponding series has been in existence for longer than the investment
division, the non-standardized total return quotations will show the investment
performance the investment division would have achieved (reduced by the
applicable charges) had it been invested in the series for the period quoted.
Standardized average annual total return is not available for periods before the
investment division was in existence.
Quotations of standardized average annual total return and non-standardized
total return are based upon historical earnings and will fluctuate. Any
quotation of performance should not be considered a guarantee of future
performance. Factors affecting the performance of an investment division and it
corresponding 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.
The JNL/SSGA Enhanced Intermediate Bond Index Series, the JNL/SSGA International
Index Series, the JNL/SSGA Russell 2000 Index Series, the JNL/SSGA S&P 500 Index
Series, and the JNL/SSGA S&P MidCap Index Series had not commenced operations as
of [the date of this statement of additional information.__________.
Jackson National may advertise the current annualized yield for a 30-day period
for an investment division. The annualized yield of an investment division
refers to the income generated by the investment division over a specified
30-day period. Because this yield is annualized, the yield generated by an
investment division during the 30-day period is assumed to be generated each
30-day period. The yield is computed by dividing the net investment income per
accumulation unit earned during the period by the price per unit on the last day
of the period, according to the following formula:
a-b 6
YIELD = 2[(---+1) -1]
cd
Where:
a = net investment income earned during the
period by the Series attributable to shares
owned by the investment portfolio.
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 division will be lower than the yield for the corresponding
series. The yield on amounts held in the investment division normally will
fluctuate over time. Therefore, the disclosed yield for any given period is not
an indication or representation of future yields or rates of return. An
investment division's actual yield will be affected by the types and quality of
portfolio securities held by the series and the series operating expenses.
Any current yield quotations of the PPM America/JNL Money Market Division,
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. We may advertise yield for the Division based on different time
periods, but we will accompany it with a yield quotation based on a seven day
calendar period. The PPM America/JNL Money Market Division's yield will be
calculated by determining the net change, exclusive of capital changes, in the
value of a hypothetical pre-existing account having a balance of one
accumulation unit at the beginning of the base period, subtracting a
hypothetical charge reflecting deductions from contracts, and dividing the net
change in account value by the value of the account at the beginning of the
period to obtain a base period return and multiplying the base period return by
(365/7). The PPM America/JNL Money Market Division's effective yield is computed
similarly but includes the effect of assumed compounding on an annualized basis
of the current yield quotations of the Division.
The PPM America/JNL Money Market Division's yield and effective yield will
fluctuate daily. Actual yields will depend on factors such as the type of
instruments in the series' portfolio, portfolio quality and average maturity,
changes in interest rates, and the series' expenses. Although the investment
division determines its yield on the basis of a seven calendar day period, it
may use a different time period on occasion. The yield quotes may reflect the
expense limitations described in the 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
Division nor that Division'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 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 THE 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 Internal Revenue Code of 1986, as amended (the "Code"),
governs taxation of annuities in general. An individual owner is not taxed on
increases in the value of a contract until distribution occurs, either in the
form of a withdrawal or as annuity payments under the annuity option elected.
For a withdrawal received as a total surrender (total redemption or a death
benefit), the recipient is taxed on the portion of the payment that exceeds the
cost basis of the contract. For a payment received as a partial withdrawal,
federal tax liability is generally determined on a last-in, first-out basis,
meaning taxable income is withdrawn before the cost basis of the contract is
withdrawn. 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 a withdrawal
is taxed at ordinary income tax rates. Tax penalties may also apply.
For annuity payments, a portion of each payment in excess of an exclusion amount
is includable in taxable income. 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 equals 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.
Jackson National is taxed as a life insurance company under the Code. For
federal income tax purposes, the Separate Account is not a separate entity from
Jackson National and its operations form a part of Jackson National.
Withholding Tax on Distributions
The Code generally requires Jackson National (or, in some cases, a plan
administrator) to withhold tax on the taxable portion of any distribution or
withdrawal from a contract. For "eligible rollover distributions" from contracts
issued under certain types of 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) a series of substantially equal annuity
payments for the life (or life expectancy) of the employee, or joint lives (or
joint life expectancies) of the employee, and his or her designated beneficiary,
or for a specified period of ten years or more; (2) minimum distributions
required to be made under the Code; and (3) hardship withdrawals). Failure to
"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 mutual funds underlying variable contracts. 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, a mutual fund will be deemed adequately diversified if
(1) no more than 55% of the value of the total assets of the mutual fund is
represented by any one investment; (2) no more than 70% of the value of the
total assets of the mutual fund is represented by any two investments; (3) no
more than 80% of the value of the total assets of the mutual fund is represented
by any three investments; and (4) no more than 90% of the value of the total
assets of the mutual fund is represented by any four investments.
Jackson National intends that each 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.
As discussed above, if you are deemed to possess too much control over the
assets of the Separate Account, the contract would not be given tax-deferred
treatment and therefore the earnings allocable to the contract would be subject
to federal income tax prior to receipt by you.
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 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. For purposes of this rule, contracts received in a Section 1035
exchange will be considered issued in the year of the exchange. Owners should
consult a tax adviser prior to purchasing more than one annuity contract in any
calendar year.
Contracts Owned by Other than Natural Persons
Under Section 72(u) of the Code, the investment earnings on premiums for
contracts will be taxed currently to the owner if the owner is a non-natural
person, e.g., a corporation or certain other entities. Such contracts generally
will not be treated as annuities for federal income tax purposes. However, this
treatment is not applied to contracts held by a trust or other entity as an
agent for a natural person nor to contracts held by certain qualified plans.
Purchasers should consult their own tax counsel or other tax adviser before
purchasing a contract to be owned by a non-natural person.
Tax Treatment of Assignments
An assignment or pledge of a contract may have tax consequences, and may also be
prohibited by ERISA in some circumstances. Owners should, therefore, consult
competent legal advisers should they wish to assign or pledge their contracts.
Qualified Plans
The contracts offered by the 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 the form of an annuity payment will be treated
as coming first from the earnings and then, only after the income portion is
exhausted, as coming from the principal. Withdrawn earnings are included in a
taxpayer's gross income. Section 72 further provides that a 10% penalty will
apply to the income portion of any distribution. The penalty is not imposed on
amounts received: (1) after the taxpayer reaches 59 1/2; (2) upon the death of
the owner; (3) if the taxpayer is totally disabled as defined in Section
72(m)(7) of the Code; (4) in a series of substantially equal periodic payments
made at least annually for the life (or life expectancy) of the taxpayer or for
the joint lives (or joint life expectancies) of the taxpayer and his
beneficiary; (5) under an immediate annuity; or (6) which are allocable to
premium payments made prior to August 14, 1982.
With respect to (4) above, if the series of substantially equal periodic
payments is modified before the later of your attaining age 59 1/2 or 5 years
from the date of the first periodic payment, then the tax for the year of the
modification is increased by an amount equal to the tax which would have been
imposed (the 10% penalty tax) but for the exception, plus interest for the tax
years in which the exception was used.
Qualified Plans
In the case of a withdrawal under a qualified contract, a ratable portion of the
amount received is taxable, generally based on the ratio of the individual's
cost basis to the individual's total accrued benefit under the retirement plan.
Special tax rules may be available for certain distributions from a qualified
contract. Section 72(t) of the Code imposes a 10% penalty tax on the taxable
portion of any distribution from qualified retirement plans, including contracts
issued and qualified under Code Sections 401 (Pension and Profit Sharing plans),
403(b) (tax-sheltered annuities) and 408 and 408A (IRAs). To the extent amounts
are not included in gross income because they have been rolled over to an IRA or
to another eligible qualified plan, no tax penalty will be imposed.
The tax penalty will not apply to the following distributions: (1) if
distribution is made on or after the date on which the owner or annuitant (as
applicable) reaches age 59 1/2; (2) distributions following the death or
disability of the owner or annuitant (as applicable) (for this purpose
"disability" is defined in Section 72(m)(7) of the Code); (3) 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 from service after he has attained age 55; (5)
distributions made to the owner or annuitant (as applicable) to the extent such
distributions do not exceed the amount allowable as a deduction under Code
Section 213 to the owner or annuitant (as applicable) for amounts paid during
the taxable year for medical care; (6) distributions made to an alternate payee
pursuant to a qualified domestic relations order; (7) distributions 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); (8) distributions from an Individual
Retirement Annuity made to the owner or annuitant (as applicable) to the extent
such distributions do not exceed the qualified higher education expenses (as
defined in Section 72(t)(7) of the Code) of the owner or annuitant (as
applicable) for the taxable year; and (9) distributions from an Individual
Retirement Annuity made to the owner or annuitant (as applicable) which are
qualified first time home buyer distributions (as defined in Section 72(t)(8) of
the Code). The exception stated in items (4) and (6) above do not apply in the
case of an IRA. The exception stated in (3) above applies to an IRA without the
requirement that there be a separation from service.
With respect to (3) above, if the series of substantially equal periodic
payments is modified before the later of your attaining age 59 1/2 or 5 years
from the date of the first periodic payment, then the tax for the year of the
modification is increased by an amount equal to the tax which would have been
imposed (the 10% penalty tax) but for the exception, plus interest for the tax
years in which the exception was used.
Withdrawals of amounts attributable to contributions made pursuant to a salary
reduction agreement (in accordance with Section 403(b)(11) of the Code) are
limited to the following: when the owner attains age 59 1/2, separates from
services, dies, becomes disabled (within the meaning of Section 72(m)(7) of the
Code), or in the case of hardship. Hardship withdrawals do not include any
earnings on salary reduction contributions. These limitations on withdrawals
apply to: (1) salary reduction contributions made after December 31, 1988; (2)
income attributable to such contributions; and (3) income attributable to
amounts held as of December 31, 1988. The limitations on withdrawals do not
affect rollovers or exchanges between certain 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 another eligible plan or 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 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 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.
Partial Withdrawals after Annuity Payments Begin
The Treasury Regulations under Section 72 of the Code provide that if after the
date of the first receipt of a payment as an annuity, the annuitant receives a
lump sum and is thereafter to receive annuity payments in a reduced amount under
the contract for the same term, life, or lives as originally specified in the
contract, then a portion of the contract shall be considered to have been
surrendered or redeemed in consideration of the payment of such lump sum and the
exclusion ratio originally determined for the contract shall continue to apply
to the amounts received as an annuity without regard to the fact that such
amounts are less than the original amounts which were to be paid periodically.
The Regulations also provide that the portion of the lump sum received that is
allocable to the annuitant's investment in the contract will be excludable from
the gross income of the annuitant.
Jackson National understands, however, that the Internal Revenue Service has
tentatively taken the position that the provisions of the Regulations summarized
above were superseded by the statutory changes which now require that any
distribution under a deferred annuity must be included in taxable income to the
extent that it does not exceed the amount of the deferred income accumulated
under the contract. Jackson National further understands that, under the
position that the IRS has tentatively taken, the amount of any lump sum partial
distribution under an immediate annuity would be taxable in full even if the
amount of that distribution exceeds the amount of the deferred income under the
contract.
It is not certain whether the IRS will adopt the position that it has
tentatively taken or that its position is a correct application of the
provisions of the Section 72 of the Code. Any annuitant who plans to take a
partial withdrawal under the contract after the annuity starting date, should
consult a competent tax adviser to determine the tax consequences of such a
withdrawal.
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
the 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) Tax-Sheltered Annuities
Section 403(b) of the Code permits the purchase of "tax-sheltered
annuities" by public schools and certain charitable, educational and
scientific organizations described in Section 501(c) (3) of the Code.
These qualifying employers may make contributions to the contracts for
the benefit of their employees. Such contributions are not included in
the gross income of the employee until the employee receives
distributions from the contract. The amount of contributions to the
tax-sheltered annuity is limited to certain maximums imposed by the
Code. Furthermore, the Code sets forth additional restrictions
governing such items as transferability, distributions,
non-discrimination and withdrawals. Employee loans are not allowed
under these contracts. Any employee should obtain competent tax advice
as to the tax treatment and suitability of such an investment.
(b) Individual Retirement Annuities
Section 408(b) of the Code permits eligible individuals to contribute
to an individual retirement program known as an "Individual Retirement
Annuity" ("IRA"). Under applicable limitations, certain amounts may be
contributed to an IRA which will be deductible from the individual's
taxable 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.
(c) Pension and Profit-Sharing Plans
Sections 401(a) and 401(k) of the Code permit employers, including
self-employed individuals, 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, transferability of benefits, withdrawals
and surrenders. Purchasers of contracts for use with pension or profit
sharing plans should obtain competent tax advice as to the tax
treatment and suitability of such an investment.
(d) 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.
(e) Roth IRAs
Section 408A of the Code provides that beginning in 1998, individuals
may purchase a new type of non-deductible IRA, known as a Roth IRA.
Purchase payments for a Roth IRA are limited to a maximum of $2,000 per
year and are not deductible from taxable income. Lower maximum
limitations apply to individuals with adjusted gross incomes between
$95,000 and $110,000 in the case of single taxpayers, between $150,000
and $160,000 in the case of married taxpayers filing joint returns, and
between $0 and $10,000 in the case of married taxpayers filing
separately. An overall $2,000 annual limitation continues to apply to
all of a taxpayer's IRA contributions, including Roth IRAs and non-Roth
IRAs.
Qualified distributions from Roth IRAs are free from federal income
tax. A qualified distribution requires that the individual has held the
Roth IRA for at least five years and, in addition, that the
distribution is made either after the individual reaches age 59 1/2, on
the individual's death or disability, or as a qualified first-time home
purchase, subject to a $10,000 lifetime maximum, for the individual, a
spouse, child, grandchild, or ancestor. Any distribution which is not a
qualified distribution is taxable to the extent of earnings in the
distribution. Distributions are treated as made from contributions
first and therefore no distributions are taxable until distributions
exceed the amount of contributions to the Roth IRA. The 10% penalty tax
and the regular IRA exceptions to the 10% penalty tax apply to taxable
distributions from a Roth IRA.
Amounts may be rolled over from one Roth IRA to another Roth IRA.
Furthermore, an individual may make a rollover contribution from a
non-Roth IRA to a Roth IRA, unless the individual has adjusted gross
income over $100,000 or the individual is a married taxpayer filing a
separate return. The individual must pay tax on any portion of the IRA
being rolled over that represents income or a previously deductible IRA
contribution. There are no similar limitations on rollovers from a Roth
IRA to another Roth IRA.
INCOME PAYMENTS; NET INVESTMENT FACTOR
See "Income Payments (The Income Phase)" in the Prospectus.
The net investment factor is an index applied to measure the net investment
performance of an investment division from one valuation date to the next. Since
the net investment factor may be greater or less than or equal to one, and the
factor that offsets the 4.5% 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 division for any valuation period
during the accumulation and annuity phases is determined by dividing (a) by (b)
and then subtracting (c) from the result where:
(a) is the net result of:
(1) the net asset value of a series share held in the
investment division determined as of the valuation
date at the end of the valuation period, plus
(2) the per share amount of any dividend or other
distribution declared by the 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 during
the valuation period which are determined by Jackson
National to be attributable to the operation of the
investment division (no federal income taxes are
applicable under present law);
(b) is the net asset value of the series share held in the
investment division determined as of the valuation date at the
end of the preceding valuation period; and
(c) is the asset charge factor determined by Jackson National for
the valuation period to reflect the charges for assuming the
mortality and expense risks and the administration charge
FINANCIAL STATEMENTS
JNL's financial statements should be considered only as bearing upon our ability
to meet our obligations under the contract. Separate Account VI has not yet
commenced operations, has no assets, and, therefore no financial statements are
included.
TO BE FILED BY AMENDMENT
<PAGE>
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. Distribution Agreement, to be filed by Amendment.
4.a. Form of the Perspective Counselor Fixed and Variable Annuity
Contract, attached hereto.
4.b. Form of the Perspective Counselor Fixed and Variable Annuity
Contract (Unisex Tables), attached hereto.
5. Form of the Perspective Counselor Fixed and Variable
Annuity Application, attached hereto.
6.a. Articles of Incorporation of Depositor, Incorporated by
Reference to Pre-Effective Amendment No. 1 on Form N-4; Files
No. 333-70697 and 811-09119 as filed on or about August 13,
1999.
6.b. Bylaws of Depositor,. Incorporated by Reference to
Pre-Effective Amendment No. 1 on Form N-4; Files No. 333-70697
and 811-09119 as filed on or about August 13, 1999.
7. Not Applicable
8. Not Applicable
9. Opinion and Consent of Counsel, to be filed by Amendment.
10. Consent of Independent Accountants, to be filed by Amendment.
11. Not Applicable
12. Not Applicable
13. Not Applicable
Item 25. Directors and Officers of the Depositor
Name and Principal Positions and Offices
Business Address with Depositor
John B. Banez Vice President -
5901 Executive Drive Systems and Programming
Lansing, Michigan 48911
Barry L. Bulakites Vice President - Resource
5901 Executive Drive Development
Lansing, Michigan 48911
Peter Davis Chairman and Director
142 Holborn Bars
London, England EC1N 2NH
Connie J. (Dalton) Van Doorn Vice President -
5901 Executive Drive Variable Annuity
Lansing, Michigan 48911 Administration
Gerald W. Decius Vice President -
5901 Executive Drive Systems Model Office
Lansing, Michigan 48911
Lisa C. Drake Vice President & Actuary
5901 Executive Drive
Lansing, Michigan 48911
Jay A. Elliott Senior Vice President -
5901 Executive Drive Divisonal Director Northeast
Lansing, Michigan 48911
Joseph D. Emanuel Vice President & Associate
5901 Executive Drive General Counsel
Lansing, Michigan 48911
Robert A. Fritts Vice President &
5901 Executive Drive Controller - Financial
Lansing, Michigan 48911 Operations
William A. Gray Senior Vice President -
5901 Executive Drive Product Development & Special
Lansing, Michigan 48911 Markets
Victor Gallo Vice President -
5901 Executive Drive Group Pension
Lansing, Michigan 48911
James D. Garrison Vice President - Tax
5901 Executive Drive
Lansing, Michigan 48911
Rhonda K. Grant Vice President - Government
5901 Executive Drive Relations
Lansing, Michigan 48911
Alan C. Hahn Senior Vice President -
5901 Executive Drive Marketing
Lansing, Michigan 48911
Andrew B. Hopping Executive Vice President,
5901 Executive Drive Chief Financial Officer and
Lansing, Michigan 48911 Director
Wyvetter A. Holcomb Vice President - Telephone
5901 Executive Drive Service Center
Lansing, Michigan 48911
Stephen A. Hrapkiewicz Vice President - Human
5901 Executive Drive Resources
Lansing, Michigan 48911
Brion S. Johnson Vice President -
5901 Executive Drive Financial Operations
Lansing, Michigan 48911 and Treasurer
Timo P. Kokko Vice President - Support
5901 Executive Drive Services
Lansing, Michigan 48911
Everett W. Kunzelman Vice President - Underwriting
5901 Executive Drive
Lansing, Michigan 48911
Charles R. Copley, Jr. Vice President - Corporate
5901 Executive Drive Communications
Lansing, Michigan 48911
David B. LeRoux
Senior Vice President -
5 Becker Farm Rd. 4th Floor Group Pension
Roseland, New Jersey 07068
Lynn W. Lopes Vice President - Group
5 Becker Farm Rd. 4th Floor Pension
Roseland, New Jersey 07068
Clark P. Manning Chief Operating Officer
5901 Executive Drive
Lansing, Michigan 48911
Thomas J. Meyer Senior Vice President,
5901 Executive Drive General Counsel and
Lansing, Michigan 48911 Secretary
Keith R. Moore Vice President - Technology
5901 Executive Drive
Lansing, Michigan 48911
P. Chad Myers Vice President - Asset
5901 Executive Drive Liability Management
Lansing, Michigan 48911
J. George Napoles Senior Vice President and
5901 Executive Drive Chief Information Officer
Lansing, Michigan 48911
John O. Norton Vice President - Actuary
5901 Executive Drive
Lansing, Michigan 48911
Mark Nerud Vice President - Fund
225 West Wacker Drive Accounting and Administration
Suite 120
Chicago, Illinois 60606
Bradley J. Powell Vice President -
5901 Executive Drive Institutional Marketing Group
Lansing, Michigan 48911
James B. Quinn Vice President - Broker
5901 Executive Drive Management
Lansing, Michigan 48911
Robert P. Saltzman President, Chief Executive
5901 Executive Drive Officer and Director
Lansing, Michigan 48911
Barbara L. Snyder Senior Vice President and
5901 Executive Drive Chief Actuary
Lansing, Michigan 48911
Scott L. Stolz Senior Vice President -
5901 Executive Drive Administration
Lansing, Michigan 48911
Robert M. Tucker Vice President - Technical
5901 Executive Drive Support
Lansing, Michigan 48911
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant.
State of Control/
Company Organization Ownership Principal Business
- ------- ------------ --------- ------------------
Anoka Realty Delaware 100% Jackson Realty
National Life
Insurance
Company
Brooke Delaware 100% Holding Company
Holdings, Inc. Holborn Activities
Delaware
Partnership
Brooke Delaware 100% Brooke Holding Company
Finance Holdings, Inc. Activities
Brooke Life Michigan 100% Brooke Life Insurance
Insurance Holdings, Inc.
Company
Carolina North 93.73% Jackson Manufacturing
Steel Carolina National Life Company
Insurance
Company
Cherrydale Delaware 96.4% Jackson Candy
Farms, Inc. National Life
Insurance
Company
Cherrydale Delaware 72.5% Jackson Holding Company
Holdings, Inc. National Life Activities
Insurance
Company
Chrissy Delaware 100% Jackson Advertising Agency
Corporation National Life
Insurance
Company
Holborn Delaware 80% Prudential Holding Company
Delaware One Limited, Activities
Partnership 10% Prudential
Two Limited,
10% Prudential
Three Limited
IPM Products Delaware 71.4% Jackson Auto Parts
Corp. National Life
Insurance Company
Jackson USA 100% JNL Savings & Loan
Federal Thrift Holdings,
Savings Bank Inc.
Jackson Michigan 100% Jackson Investment Adviser,
National National Life and Transfer Agent
Financial Insurance
Services, LLC Company
Jackson Delaware 100% Jackson Advertising/
National National Life Marketing
Life Insurance Corporation and
Distributors, Company Broker/Dealer
Inc.
Jackson New York 100% Life Insurance
National Jackson
Life Insurance National Life
Company of Insurance
New York Company
JNL Series Massachusetts Common Law Investment Company
Trust Trust with
contractual
association
with Jackson
National Life
Insurance
Company of New
York
JNL Thrift Michigan 100% Jackson Holding Company
Holdings, Inc. National Life
Insurance
Company
JNL Variable Delaware 100% Jackson Investment Company
Fund LLC National
Separate
Account - I
LePages, Delaware 100% Jackson Adhesives
Inc. National Life
Insurance
Company
LePages Delaware 100% Jackson Adhesives
Management National Life
Co., LLC Insurance
Company
National Delaware 100% National Broker/Dealer
Planning Planning and Investment
Corporation Holdings, Inc. Adviser
National Delaware 100% Brooke Holding Company
Planning Holdings, Inc. Activities
Holdings, Inc.
Prudential United 100% Holding Company
Corporation Kingdom Prudential
Holdings Corporation
Limited PLC
Prudential United Publicly Financial
PLC Kingdom Traded Institution
Prudential England and 100% Holding
One Limited Wales Prudential Company
Corporation Activities
Holdings
Limited
Prudential England and 100% Holding
Two Limited Wales Prudential Company
Corporation Activities
Holdings
Limited
Prudential England and 100% Holding
Three Limited Wales Prudential Company
Corporation Activities
Holdings
Limited
SII Wisconsin 100% Broker/Dealer
Investments, National
Inc. Planning
Holdings, Inc.
Item 27. Number of Contract Owners as of December 31, 1999.
0
Item 28. Indemnification
Provision is made in the Company's Amended By-Laws for indemnification
by the Company of any person who was or is a party or is threatened to be made a
party to a civil, criminal, administrative or investigative action by reason of
the fact that such person is or was a director, officer or employee of the
Company, against expenses, including attorneys' fees, judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person in
connection with such action, suit or proceedings, to the extent and under the
circumstances permitted by the General Corporation Law of the State of Michigan.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 ("Act") may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise, the
Company has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against liabilities (other than the payment by the Company of expenses incurred
or paid by a director, officer or controlling person of the Company in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Company will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Item 29. Principal Underwriter
(a) Jackson National Life Distributors, Inc. will act as general
distributor for Jackson National Separate Account VI. Jackson National Life
Distributors, Inc. also acts as general distributor for Jackson National
Separate Account - I, Jackson National Separate Account III, Jackson National
Separate Account V, and the JNLNY Separate Account I and JNLNY Separate Account
II.
(b) Directors and Officers of Jackson National Life Distributors, Inc.:
Name and Positions and Offices
Business Address with Underwriter
Robert P. Saltzman Director
5901 Executive Dr.
Lansing, MI 48911
Andrew B. Hopping Director, Vice President
5901 Executive Dr. Chief Financial Officer and
Lansing, MI 48911 Treasurer
Michael A. Wells Director, President and
401 Wilshire Blvd. Chief Executive Officer
Suite 1200
Santa Monica, CA 90401
Mark D. Nerud Vice President, Chief
225 West Wacker Drive Operating Officer and
Suite 1200 Assistant Treasurer
Chicago, IL 60606
Willard Barrett Senior Vice President -
3500 S. Blvd., Ste. 18B Divisional Director West
Edmond, OK 73013
Jay A. Elliott Senior Vice President -
10710 Midlothian Turnpike Divisional Director Northeast
Suite 301
Richmond, VA 23235
Douglas K. Kinder Senior Vice President -
1018 W. St. Maartens Dr. Divisional Director Midwest
St. Joseph, MO 64506
Scott W. Richardson Senior Vice President -
900 Circle 75 Parkway Divisional Director Southeast
Suite 1750
Atlanta, GA 30339
Gregory B. Salsbury Senior Vice President -
401 Wilshire Blvd. Resource Development
Suite 1200
Santa Monica, CA 90401
Sean P. Blowers Vice President - Marketing
401 Wilshire Boulevard Services
Suite 1200
Santa Monica, California 90401
Barry L. Bulakites Vice President - Sales/Deal
401 Wilshire Blvd. Direct
Suite 1200
Santa Monica, CA 90401
Michael A. Hamilton Vice President - Resource
401 Wilshire Blvd. Development
Suite 1200
Santa Monica, CA 90401
Christine A. Pierce-Tucker Senior Vice President -
401 Wilshire Boulevard Marketing
Suite 1200
Santa Monica, California 90401
Stephen J. Pilger Vice President - Key Accounts
401Wilshire Blvd.
Suite 1200
Santa Monica, CA 90491
(c)
New Under- Compensation
writing on
Name of Discounts Redemption
Principal and or Annuiti- Brokerage
Underwriter Commissions zation Commissions Compensation
- ----------- ----------- ------ ----------- ------------
Jackson
National
Life Not Not Not Not
Distributors, Applicable Applicable Applicable Applicable
Inc.
Item 30. Location of Accounts and Records
Jackson National Life Insurance Company
5901 Executive Drive
Lansing, Michigan 48911
Jackson National Life Insurance Company
8055 East Tufts Ave., Second Floor
Denver, Colorado 80237
Jackson National Life Insurance Company
225 West Wacker Drive, Suite 1200
Chicago, IL 60606
Item 31. Management Services
Not Applicable
Item 32. Undertakings and Representations
(a) 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 moths 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 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 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.
(e) The Registrant hereby represents that any contract offered by
the prospectus and which is issued pursuant Section 403(b) if
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).
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant has duly caused this Registration Statement to be
signed on its behalf by the undersigned, in the City of Lansing, and State of
Michigan, on this 6th day of January, 2000.
Jackson National Separate Account VI
---------------------------------------
(Registrant)
By: Jackson National Life Insurance Company
By: /s/ Andrew B. Hopping
----------------------------------
by Thomas J. Meyer*
Andrew B. Hopping
Executive Vice President -
Chief Financial Officer and Director
Jackson National Life Insurance Company
---------------------------------------
(Depositor)
By: /s/ Andrew B. Hopping
----------------------------------
by Thomas J. Meyer*
Andrew B. Hopping
Executive Vice President -
Chief Financial Officer and Director
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
indicated.
/s/ Peter Davis by Thomas J. Meyer* January 6, 2000
- -------------------------------------------- -----------------
Peter Davis, Chairman and Director
/s/ Robert P. Saltzman by Thomas J. Meyer* January 6, 2000
- -------------------------------------------- ------------------
Robert P. Saltzman, President, Chief
Executive Officer and Director
/s/ Clark P. Manning by Thomas J. Meyer* January 6, 2000
- -------------------------------------------- ------------------
Clark P. Manning, Chief Operating
Officer and Director
/s/ Andrew B. Hopping by Thomas J. Meyer* January 6, 2000
- -------------------------------------------- ------------------
Andrew B. Hopping, Executive Vice President -
Chief Financial Officer and Director
/s/ Thomas J. Meyer January 6, 2000
- -------------------------------------------- -----------------
* Thomas J. Meyer, Attorney-in-Fact
<PAGE>
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, a Michigan 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 Jackson National Separate
Account VI and other separate accounts of Jackson National Life Insurance
Company, hereby constitute and appoint Andrew B. Hopping, Thomas J. Meyer 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/ Peter Davis 12/14/99
- -------------------------------------------- -------------
Peter Davis, Director Date
/s/ Robert P. Saltzman 12/14/99
- -------------------------------------------- -------------
Robert P. Saltzman, President, Chief Date
Executive Officer and Director
/s/ Clark P. Manning 12/14/99
- -------------------------------------------- -------------
Clark P. Manning, Chief Operating Officer Date
and Director
/s/ Andrew B. Hopping 12/14/99
- -------------------------------------------- -------------
Andrew B. Hopping, Executive Vice President, Date
Chief Financial Officer and Director
<PAGE>
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.
4.a. Form of Perspective Counselor Fixed and Variable
Annuity Contract, attached hereto as EX-99.B4-a.
b. Form of Perspective Counselor Fixed and Variable
Annuity Contract (Unisex Tables), attached hereto as
EX-99.B4-b.
5. Form of the Perspective Counselor Fixed and Variable
Annuity Application, Attached hereto as EX-99.B5.
EX-99.B1
CERTIFICATE OF SECRETARY
JACKSON NATIONAL LIFE INSURANCE COMPANY
The undersigned, being the duly elected, qualified and acting Secretary of
Jackson National Life Insurance Company, a Michigan corporation ("Company"),
hereby certifies that the attached is a full, true and correct copy of
resolutions duly adopted by the Board of Directors of the Company at a meeting
held on the 14th day of December, 1999 at which a quorum was present; and that
such resolutions have not been altered or repealed and remain in full force and
effect as of the date hereof.
WHEREAS, Section 500.925 of the Michigan 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 VI" is hereby established:
FURTHER RESOLVED that the assets of Separate Account VI 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
connection with operation of Separate Account VI;
FURTHER RESOLVED that this Company shall maintain in Separate
Account VI 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 they may
deem appropriate from time to time, in accordance with applicable
laws and regulations (a) to divide Separate Account VI into
divisions and sub-divisions with each division or sub-division
investing in units or shares of designated investment companies,
or series and classes thereof, or other appropriate securities,
(b) to modify, consolidate, 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 VI 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 VI or in any division thereof
as may be deemed necessary or appropriate to facilitate the
commencement of the operations of Separate Account VI or to meet
any minimum capital requirements 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
VI 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 VI;
FURTHER RESOLVED that the income, gains and losses (whether or not
realized) from assets allocated to Separate Account VI shall, in
accordance with any variable annuity policies issued by the
Company providing for allocations to Separate Account VI, be
credited to or charged against Separate Account VI without regard
to the other income, gains or losses of the Company, and to the
extent permitted by law, are not subject to the general claims of
creditors, including under circumstances of insolvency or
rehabilitation;
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 VI with respect to the shares of any investment
companies which are held in Separate Account VI;
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 VI to invest or
reinvest the assets of Separate Account VI 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 VI;
FURTHER RESOLVED that the fiscal year of Separate Account VI shall
end on the 31st day of December each year;
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 VI 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 VI 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 take all actions necessary to
register any investment company(s) in whose securities Separate
Account VI will invest under the Investment Company Act of 1940;
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;
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 take such actions as they deem
necessary or appropriate to receive approval of the operation of
Separate Account VI by the Michigan Commissioner of Insurance;
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 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, and
with respect to any variable annuity policies under which amounts
will be allocated by the Company to Separate Account VI 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;
FURTHR RESOLVED that any form of corporate resolution required by
any state or other jurisdiction in connection with any filing,
registration, or approval as contemplated in these resolutions is
hereby adopted and the Officers be, and they each hereby are,
authorized and directed to certify to the adoption thereof by this
Board;
FURTHER RESOLVED that the following general Standard of
Suitability, which expresses the policy of the Company with
respect to determining the suitability for applicants be adopted:
No recommendations shall be made to a potential applicant to
purchase a variable annuity policy and no variable annuity policy
shall be issued in the absence of reasonable grounds to believe
that the purchase of same is not unsuitable for such applicant on
the basis of information furnished after reasonable inquiry of
such applicant concerning the applicant's insurance and investment
objective, financial situation and needs, and any other
information known to the Company or to the sales representative
making the recommendations;
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.
Dated: January 6, 2000 /s/ Thomas J. Meyer
------------------------------------
Thomas J. Meyer, Secretary
JACKSON NATIONAL LIFE INSURANCE COMPANY
5901 Executive Drive
Lansing, Michigan 48911
[LOGO}
("the Company" or Jackson National)
- --------------------------------------------------------------------------------
Thank you for choosing Jackson National. If You have any questions,
please contact the Company at the Service Center address and telephone number
shown on the Contract Data Page.
THIS ANNUITY CONTRACT OFFERED BY JACKSON NATIONAL IS
A CONTRACT BETWEEN YOU, THE OWNER, AND JACKSON
NATIONAL, AN INSURANCE COMPANY. READ YOUR CONTRACT
CAREFULLY.
AMOUNTS IN THE SEPARATE ACCOUNT ARE NOT GUARANTEED AND
MAY INCREASE OR DECREASE BASED UPON THE INVESTMENT EXPERIENCE OF THE SEPARATE
ACCOUNT INVESTMENT DIVISION(S).
- --------------------------------------------------------------------------------
NOTICE OF RIGHT TO EXAMINE CONTRACT
YOU MAY RETURN THIS CONTRACT TO THE SELLING PRODUCER OR JACKSON NATIONAL WITHIN
10 DAYS AFTER YOU RECEIVE IT. THE COMPANY WILL REFUND THE CONTRACT VALUE FOR THE
BUSINESS DAY ON WHICH THE CONTRACT IS received AT ITS SERVICE CENTER. UPON SUCH
REFUND, THE CONTRACT SHALL BE VOID.
- --------------------------------------------------------------------------------
INDIVIDUAL DEFERRED VARIABLE AND
FIXED ANNUITY CONTRACT THIS CONTRACT IS SIGNED BY THE COMPANY
(FLEXIBLE PREMIUM). DEATH BENEFIT /s/ Robert P. Saltzman
AVAILABLE.INCOME OPTIONS AVAILABLE. PRESIDENT
NONPARTICIPATING. /s/ Thomas J. Meyer
SECRETARY
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Provision Page Number
Contract Data Page [3
Definitions 4
General Provisions 6
Accumulation Provisions 9
Withdrawal Provisions 11
Death Benefit Provisions 12
Income Provisions 14
Table of Income Options 18]
2
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT DATA PAGE
- --------------------------------------------------------------------------------
Contract Number: [0123456789]
Owner: [John Doe]
Joint Owner: [Jane Doe]
Annuitant: [John Doe]
Joint Annuitant: [Jane Doe]
Initial Premium: [$25,000]
Issue Date: [January 1, 2000]
Issue State: [Michigan]
Beneficiary(ies): [Brian Doe]
Annual Contract Maintenance An Annual Contract Maintenance Charge of no
more Charge: than [$50.00] will be deducted
from Your Contract Value.
The Annual Contract Maintenance Charge is
applied to those Contracts where the
Contract Value is less than [$50,000].
On each Contract Anniversary, the Annual
Contract Maintenance Charge will be taken
from the Fixed Account and the Investment
Divisions in proportion to their respective
Contract Value.
If a total withdrawal is made on other than
a Contract Anniversary, the Annual Contract
Maintenance Charge will be deducted from the
total withdrawal amount.
Insurance Charges: On an annual basis, this charge equals
[0.65%] of the daily net asset value of the
Investment Divisions. Insurance Charge will
be deducted on a daily basis.
3a
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT DATA PAGE (CONT'D)
- --------------------------------------------------------------------------------
Transfer/Transfer Charge: A fee of [$25.00] is charged for each
transfer in excess of [15] in any Contract
year. Any Transfer Charge is deducted from
the amount transferred prior to the
allocation to the new Contract Option.
Transfer Charges will not be applied to
transfers due to dollar cost averaging or
other asset allocation services provided by
the Company.
Market timing and asset allocation services
must comply with the Company's
administrative systems, rules, and
procedures.
FROM INVESTMENT DIVISION TO INVESTMENT
DIVISION. Both prior to and after the Income
Date, You may transfer all or a portion of
Your Contract Value in one Investment
Division to another Investment Division.
FROM INVESTMENT DIVISION TO THE FIXED
ACCOUNT. Prior to the Income Date, You may
transfer all or a portion of Your Contract
Value in an Investment Division(s) to the
Fixed Account.
FROM THE FIXED ACCOUNT TO AN INVESTMENT
DIVISION. Prior to the Income Date, You may
transfer all or a portion of Your Fixed
Account to any available Investment
Division(s).
Premium(s): Premiums are flexible. This means that the
Owner may change the amounts, frequency or
timing of Premiums. The initial Premium must
be at least [$25,000]. Subsequent Premiums
must be at least [$2,000] for Qualified Plan
Contracts and [$5,000] for Nonqualified Plan
Contracts. Total Premiums under a Contract
may not exceed [$1,000,000]. The Company may
waive the minimums or maximums at any time.
The Company reserves the right to refuse any
premium payment.
The Owner may allocate Premiums among the
Fixed Account and the Investment Divisions.
Such election may be made in any percent
from [0% to 100%] in whole percentages,
provided that the minimum that may be
allocated to the Fixed Account or an
Investment Division is [$100]. Any
additional Premium will be allocated
according to Your most recent instructions
on file with the Company, provided that each
allocation must be for a minimum of [$100],
regardless of such instructions.
3b
<PAGE>
- --------------------------------------------------------------------------------
CONTRACT DATA PAGE (CONT'D)
- --------------------------------------------------------------------------------
["S&P(R)" is a trademark of the McGraw Hill Companies, Inc. and has been
licensed for use by the Company. This annuity is not sponsored, endorsed, sold
or promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the annuity.]
[This Contract is not sponsored, endorsed, sold or promoted by Dow Jones. Dow
Jones makes no representation or warranty, express or implied, to the owners of
this Contract or any member of the public regarding the advisability of
purchasing this Contract. Dow Jones' only relationship to Jackson National Life
Insurance Company (JNL) is the licensing of certain copyrights, trademarks,
servicemarks and service names of Dow Jones. Dow Jones has no obligation to take
the needs of JNL or the owners of this Contract into consideration in
determining, composing or calculating the Dow Jones Industrial Average[SM]. Dow
Jones is not responsible for and has not participated in the determination of
the terms and conditions of this Contract to be issued, including the pricing or
the amount payable under the Contract. Dow Jones has no obligation or liability
in connection with the administration or marketing of this Contract.
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW
JONES INDUSTRIAL AVERAGESM OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL HAVE
NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY JNL,
OWNERS OF THIS CONTRACT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW
JONES INDUSTRIAL AVERAGE[SM] OR ANY DATA INCLUDED THEREIN. DOW JONES MAKES NO
EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
DOW JONES INDUSTRIAL AVERAGE[SM] OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING
ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY
LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING
LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO
THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES
AND JNL.]
Jackson National Life Service Center Express Mail:
[P.O. Box 378002 [Jackson National Life Service Center
Denver, CO 80237-8002 8055 E. Tufts Ave., 2nd Floor
1-800-766-4683] Denver, CO 80237]
3c
<PAGE>
- --------------------------------------------------------------------------------
DEFINITIONS
- --------------------------------------------------------------------------------
ACCUMULATION UNIT. A unit of measure used to calculate the value in an
Investment Division prior to the Income Date.
ANNUITANT. The natural person on whose life annuity payments for this Contract
are based. The Owner may change the Annuitant at any time prior to the Income
Date, unless the Owner is not a natural person. Any reference to the Annuitant
includes any Joint Annuitant.
ANNUITY UNIT. A unit of measure used to calculate the amount of a variable
annuity payment.
BENEFICIARY(IES). The person(s) or entity(ies) designated to receive any
Contract benefits upon the death of the Owner.
BUSINESS DAY. Each day when the New York Stock Exchange is open for business.
The Business Day ends when the New York Stock Exchange closes for normal
trading, usually 4:00 p.m. Eastern time.
CONTRACT.
The Individual Deferred Variable and Fixed Annuity Contract between You and Us.
CONTRACT ANNIVERSARY. An annual anniversary of the Issue Date.
CONTRACT OPTION. One of the options offered by the Company under this Contract.
Each Contract Option is more fully explained in the Accumulation Provisions.
CONTRACT VALUE. The sum of the Separate Account Contract Value and the Fixed
Account Value.
FIXED ACCOUNT. A Contract Option that consists of an automatically renewable
one-year period that credits interest at a rate of interest that is fixed for
the length of the period. Allocations made to the Fixed Account are invested in
the general account of the Company. The general account is made up of all
general assets of the Company, other than those in the Separate Account, and
other segregated asset accounts.
FIXED ACCOUNT VALUE. The Fixed Account Value is: (1) the Premium and any
subsequent amounts allocated to the Fixed Account; (2) plus any interest
credited; less (3) any amounts canceled or withdrawn for transfers, charges,
deductions, or withdrawals.
INCOME DATE. The date on which annuity payments are to begin.
INVESTMENT DIVISION. A Contract Option within the Separate Account. The Contract
Value in the Investment Divisions will go up or down depending on the
performance of the underlying Portfolios.
ISSUE DATE. The date the Contract was issued by the Company, as shown on the
Contract Data Page.
4
<PAGE>
- --------------------------------------------------------------------------------
DEFINITIONS (CONT'D)
- --------------------------------------------------------------------------------
JOINT OWNER. If there is more than one Owner, each Owner shall be a Joint Owner
of the Contract. Joint Owners have equal ownership rights and must each
authorize any exercising of those ownership rights under the Contract.
LATEST INCOME DATE. The date on which the Owner attains age 90 under a
Nonqualified Plan Contract, or such earlier date as required by the applicable
Qualified Plan, law, or regulation, unless otherwise approved by the Company.
NONQUALIFIED PLAN. A retirement plan which does not qualify for favorable tax
treatment under Section 401, 403, 408 or 457 of the Internal Revenue Code, as
amended.
OWNER ("YOU," "YOUR"). The person or entity shown on the Contract Data Page who
is entitled to exercise all rights and privileges under this Contract. Usually,
but not always, the Owner is the Annuitant. If Joint Owners are named, all
references to Owner shall mean Joint Owner.
PORTFOLIO(S). A portfolio of a mutual fund in which the Investment Division
invests.
PREMIUM(S). Considerations paid into this Contract by or on behalf of the Owner.
QUALIFIED PLAN. A retirement plan which qualifies for favorable tax treatment
under Sections 401, 403, 408 or 457 of the Internal Revenue Code, as amended.
SEPARATE ACCOUNT. A segregated asset account established and maintained by the
Company in accordance with Michigan law in which a portion of Our assets have
been allocated for this and certain other contracts.
SEPARATE ACCOUNT CONTRACT VALUE. The current value of the amounts allocated to
the Investment Divisions of the Separate Account of this Contract.
SERVICE CENTER. The Company's address and telephone number as specified on the
Contract Data Page or as may be designated by Us from time to time.
WE, OUR, US, THE COMPANY. Jackson National Life Insurance Company.
5
<PAGE>
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GENERAL PROVISIONS
- --------------------------------------------------------------------------------
ASSIGNMENT. The Owner may assign this Contract before the Income Date, but We
will not be bound by an assignment unless it is in writing and has been recorded
at the Company's Service Center. An assignment will take effect when recorded by
the Company. We are not responsible for any payment made before an assignment is
recorded. The Owner may exercise these rights subject to the interest of any
assignee or irrevocable beneficiary. We assume no responsibility for the
validity or tax consequences of any assignment. If You make an assignment, You
may have to pay income tax. You are encouraged to seek competent legal and/or
tax advice.
BENEFICIARY. The individual(s) or entity(ies) designated by the Owner to receive
any amount payable under this Contract on the Owner's death prior to the Income
Date or on the Annuitant's death on or after the Income Date pursuant to the
terms of this Contract. The original Beneficiary(ies) will be named in the
application, if any, and on the Contract Data Page. 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 Owner's estate. Upon the death of a Joint Owner, the
surviving Joint Owner, if any, will be treated as the primary Beneficiary and
all other Beneficiaries will be treated as Contingent Beneficiaries. The Owner
may change the Beneficiary(ies) by submitting a written request to the Service
Center, unless an irrevocable Beneficiary(ies) designation was previously filed.
Any change will take effect when recorded by the Company. The Company is not
liable for any payment made or action taken before the Company records such
change.
CHARGES AND FEES. The Company may assess fees or charges under the Contract.
Please see the Contract Data Page for more information as to fees or charges.
CONFORMITY WITH STATE LAWS. This Contract will be interpreted under the law of
the state in which it is issued. Any provision that is in conflict with the law
of such state is amended to conform to the minimum requirements of such law.
CONTESTABILITY. The Company will not contest this Contract from its Issue Date,
as shown on the Contract Data Page.
DEFERMENT OF PAYMENTS. We may defer making transfers or payments from the Fixed
Account for up to 6 months. Interest, subject to state requirements, will be
credited during the deferral period.
DOLLAR COST AVERAGING. Subject to the Company's administrative rules and
procedures, the Owner may arrange to have an amount of money transferred
automatically from the Fixed Account or one of the Investment Divisions of the
Contract to any number of other Investment Divisions on a regular basis. Any
election of dollar cost averaging must be for a period of not less than twelve
months.
ENTIRE CONTRACT. The Contract, application, if any, and any applicable
endorsements and amendments together make up the entire Contract.
6
<PAGE>
- --------------------------------------------------------------------------------
GENERAL PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
MISSTATEMENT OF AGE OR SEX. If the age or sex of the Annuitant has been
misstated, the payments will be those that the Premiums paid would have
purchased at the correct age and sex. Any underpayments will be adjusted
immediately by the Company. Overpayments will be deducted from future payments.
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 broker or producer has
authority to change or waive any provision of this Contract. The Company may
amend or waive any portion of this Contract without notice or consent if state
or federal law so requires.
NONPARTICIPATING. This Contract does not share in Our surplus or earnings.
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.
PROTECTION OF PROCEEDS. No Beneficiary may commute, encumber, alienate or assign
any payment under this Contract before it is due. To the extent permitted by
law, no payment will be subject to the debts, contracts or engagements of any
Beneficiary. In addition, to the extent permitted by law, no payment will be
subject to any judicial process to levy You or attach the same for payment
thereof.
REPORTS. The Company will send You a report at least once a year. We will also
send You reports as required by law. They shall be addressed to the last address
of the Owner known to the Company.
SUBSTITUTION OF INVESTMENT PORTFOLIOS. We may substitute another underlying
Portfolio without Your consent. Substitution would occur if We determine that
the use of such underlying investment is no longer possible of if We determine
it is no longer appropriate for the purposes of the Contract. No substitution
will be made without notice to You and without the prior approval of the
Securities and Exchange Commission and the state where the Contract was issued
for delivery, if required. Should a substitution, addition, or deletion occur,
You will be allowed to select from the then current Investment Divisions and
substitution may be made with respect to both existing Contract Value in that
Investment Division and the allocation of future Premiums.
SUSPENSION OF PAYMENTS. The Company may suspend or postpone any transfers or
payments to or from the Investment Divisions if any of the following occur:
1. The New York Stock Exchange is closed;
2. Trading on the New York Stock Exchange is restricted;
7
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GENERAL PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
3. 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
4. The Securities and Exchange Commission, by order, so permits for the
protection of Contract Owners.
The applicable rules and regulations of the Securities and Exchange Commission
will govern whether conditions described in 2. and/or 3. exist.
TAXES. The Company may deduct from the Contract Value any premium taxes or other
taxes payable to a state or other government entity because of this Contract.
Should We advance any amount so due, We are not waiving any right to collect
such amount at a later date. The Company will deduct any withholding taxes
required by applicable law as a result of any withdrawals from this Contract.
WRITTEN NOTICE. Information or instructions given to Us by You must be in a form
satisfactory to Us. Such written notice takes effect when We accept it and it is
recorded at Our Service Center.
Any notice We send to the Owner will be sent to the Owner's last known address
unless the Owner requests otherwise in writing. Any written request or notice
must be sent to the Service Center, unless We advise You otherwise. You are
responsible for promptly notifying the Company of any address change.
8
<PAGE>
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ACCUMULATION PROVISIONS
- --------------------------------------------------------------------------------
An Owner may not allocate Contract Values to more than eighteen Contract Options
during the life of the Contract. The Company may waive this restriction at its
discretion.
SEPARATE ACCOUNT. The Separate Account consists of assets We have set aside and
have kept from the rest of Our assets and those of Our other segregated asset
accounts. These assets are not chargeable with liabilities arising out of any
other business the Company may conduct. All the income, gains, and losses
resulting from these assets are credited to or charged against the contracts
supported by the Separate Account, and not against any other contracts the
Company may issue. The assets of the Separate Account will be available to cover
the liabilities of Our general account only to the extent that the assets of the
Separate Account exceed the liabilities of the Separate Account arising under
the variable annuity contracts supported by the Separate Account. The Separate
Account consists of several Investment Divisions. The assets of the Separate
Account shall be valued at least as often as any benefits of this Contract, but
in no event will such valuation be less frequently than monthly.
INVESTMENT DIVISIONS. The Contract offers several Investment Divisions.
ACCUMULATION UNITS. The Separate Account Contract Value will go up or down
depending on the performance of the Investment Divisions. In order to monitor
the Separate Account Contract Value during the accumulation phase, the Company
uses a unit of measure called an Accumulation Unit. The value of an Accumulation
Unit may go up or down from Business Day to Business Day. Adjustments to the
Contract Value, such as withdrawals, transfers, and Annual Contract Maintenance
Charges, result in the redemption of Accumulation Units. However, these
adjustments do not affect the value of the Accumulation Units.
When You make an allocation to the Investment Divisions, the Company credits
Your Contract with Accumulation Units. The number of Accumulation Units credited
is determined by dividing the amount allocated to any Investment Division by the
Accumulation Unit Value for that Investment Division at the close of the
Business Day when the allocation is made.
ACCUMULATION UNIT VALUE. The Company determines the value of an Accumulation
Unit for each of the Investment Divisions. This is done by:
1. Determining the total amount of money invested in the particular Investment
Division; 2. Subtracting from that amount any Insurance Charges and any other
charges such as taxes; 3. Dividing the remainder by the number of outstanding
Accumulation Units.
FIXED ACCOUNT. You may allocate Premium or make transfers to the Fixed Account
at any time prior to the latest Income Date, subject to the provisions of this
Contract. The amounts allocated to the Fixed Account will earn a declared rate
of interest for one year from the date of allocation.
The Company will automatically renew the Fixed Account period for another year
at the expiration of the Fixed Account period unless instructed in writing to
the contrary.
9
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ACCUMULATION PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
FIXED ACCOUNT VALUE. The Fixed Account Value is determined in the following
manner:
o The initial Premium is allocated to the Fixed Account as designated by
the Owner pursuant to the terms of the Contract.
o Subsequent amounts may be allocated to the Fixed Account pursuant to
the terms of the Contract.
o On each Contract Anniversary, the Annual Contract Maintenance Charge is
deducted, based on the proportion that the Fixed Account Value bears to
the Contract Value.
o On each Business Day, amounts are deducted to reflect any partial
withdrawal and transfers when such event occurs.
o Interest is credited on each Business Day as described below.
INTEREST TO BE CREDITED. The Company will credit interest to the Fixed Account.
Such interest will be credited at the annual effective interest rate or rates
the Company prospectively declares from time to time, at the sole discretion of
the Company. Any such rate or rates so determined will remain in effect for a
period of one year so long as such deposited amount remains in the Fixed
Account. Interest will be credited to subsequent Fixed Account periods at an
annual effective interest rate declared by the Company. The Company guarantees
that it will credit interest at not less than 3% annually. Subsequent interest
rates may be higher or lower than those rates previously set by the Company.
10
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WITHDRAWAL PROVISIONS
- --------------------------------------------------------------------------------
Prior to the Income Date, the Owner may withdraw all or part of the amounts
under this Contract by informing Us at Our Service Center. For full withdrawal,
this Contract, or a Lost Contract Affidavit, must be returned to Our Service
Center.
Except in connection with a systematic withdrawal program, the minimum partial
withdrawal amount is $500, or if less, the Owner's entire interest in the
Investment Division and/or Fixed Account from which a withdrawal is requested.
The Owner's interest in the Investment Division and/or Fixed Account from which
the withdrawal is requested must be at least $100 after the withdrawal is
completed if any amount remains in that Investment Division and/or Fixed
Account.
Withdrawals will be based on values at the end of the Business Day in which the
request for withdrawal and the Contract or a Lost Contract Affidavit (in the
case of a full withdrawal) are received at the Service Center.
If the withdrawal request does not specify the Investment Division(s) or Fixed
Account from which the withdrawal is to be made, the request will be processed
by making withdrawals from each Investment Division and the Fixed Account in
proportion to their respective value at the time the withdrawal is processed.
11
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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 the Owner. Upon the death of a Joint Owner, the
surviving Joint Owner, if any, will be treated as the primary Beneficiary. Any
other Beneficiary designation on record at the Service Center at the time of
death will be treated as a contingent Beneficiary.
If the Joint Owner, if any, or the Beneficiary is the spouse of the deceased
Owner, he or she may elect to continue the Contract, at the current Contract
Value, in his or her own name and exercise all the Owner's rights under the
Contract.
o DEATH BENEFIT AMOUNT BEFORE THE INCOME DATE: The death benefit is equal
to the greater of:
1. The current Contract Value; or
2. All Premiums paid into the Contract, less any withdrawals,
charges, and taxes incurred since the issuance of the
Contract.
This amount will be determined as of the end of the Business Day when
due proof of the Owner's death satisfactory to Us and an election as to
the type of death benefit option is received by the Company at its
Service Center.
From the time of death of the Owner until the death benefit amount is
determined, any amount allocated to an Investment Division will be
subject to investment risk. This investment risk is borne by the
Beneficiary(ies).
o DEATH BENEFIT OPTIONS BEFORE INCOME DATE: In the event of the Owner's
death or the death of a Joint Owner before the Income Date, a
Beneficiary must request that the death benefit be paid under one of
the death benefit options below. The following are the selected death
benefit options:
1. Option 1 - single lump-sum payment of the death benefit; or
2. Option 2 - payment of the entire death benefit within five
years of the date of the death of the Owner or any Joint
Owner; or
3. 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
death of the Owner or Joint Owner.
Any portion of the death benefit not applied under Option 3 within one year of
the date of the Owner's death must be distributed within five years of the date
of the Owner's death.
If a single lump-sum payment is requested, the amount will be paid within seven
days of receipt of proof of death and the election, unless either the Suspension
of Payments or Deferment of Payments under General Provisions is in effect.
Payment to the Beneficiary, other than in a single lump-sum, may only be elected
during the sixty-day period beginning with the date of receipt of proof of death
by Our Service Center.
12
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DEATH BENEFIT PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
DEATH OF OWNER AFTER THE INCOME DATE: If the Owner or any Joint Owner, who is
not an Annuitant, dies after the Income Date, any remaining payments under the
income option elected will continue at least as rapidly as under the method of
distribution in effect at the Owner's death. Upon the Owner's death after the
Income Date, the Beneficiary becomes the Owner.
DEATH OF ANNUITANT BEFORE INCOME DATE: Upon the death of an Annuitant who is not
an Owner before the Income Date, the Contract remains in force and the Owner
will become the Annuitant. The Owner may designate a new Annuitant, subject to
the Company's administrative rules then in effect. However, if the Owner is not
a natural person, the death of the primary Annuitant will be treated as the
death of the Owner and a new Annuitant may not be designated.
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.
13
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INCOME PROVISIONS
- --------------------------------------------------------------------------------
INCOME DATE. If no Income Date is selected, the Income Date will be the Latest
Income Date. At any time at least seven days prior to the Income Date then
indicated on the Company's records, the Owner may change the Income Date to any
date not later than the Latest Income Date by written notice to the Service
Center.
INCOME OPTIONS. The Owner, or any Beneficiary who is so entitled, may elect to
receive a single lump-sum. However, a single lump-sum distribution may be deemed
to be a withdrawal. Alternatively, an income option may be elected. The Owner
may, upon prior written notice to the Company at its Service Center, elect an
income option at any time prior to the Income Date or change an income option up
to seven days before the Income Date. Unless otherwise designated, the Owner
will be the payee.
If no other income option is elected, monthly annuity payments will be made in
accordance with Option 3 below, a life annuity with 120-month period certain.
Payments will 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 $5,000, and state law permits, the Company has the
right to make payments in one single lump-sum. In addition, if the first payment
provided would be less than $50, and state law permits, the Company may require
the frequency of payments be at quarterly, semiannual or annual intervals so as
to result in an initial payment of at least $50.
NO WITHDRAWALS OF CONTRACT VALUE ARE PERMITTED DURING THE ANNUITY PERIOD FOR ANY
INCOME OPTION UNDER WHICH PAYMENTS ARE BEING MADE PURSUANT TO LIFE
CONTINGENCIES.
Upon written election filed with the Company at its Service Center, all of the
Contract Value will be applied to provide one of the following income options.
OPTION 1 - LIFE INCOME An annuity payable monthly during the lifetime of the
Annuitant. Under this income option, no further annuity payments are payable
after the death of the Annuitant, and there is no provision for a death benefit
payable to the Owner. Therefore, it is possible under Option 1 for the Owner to
receive only one monthly annuity payment under this income option if the
Annuitant has an early death.
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 annuity payments will continue during the lifetime of the
survivor at either the full amount previously payable or as a percentage (either
one-half or two-thirds) of the full amount, as chosen at the time of election of
the income option. If a reduced annuity 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 annuity payments will
be equal to either one-half or two-thirds of the fixed annuity payment payable
during the joint life of the Annuitant and the designated second person.
14
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INCOME PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
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 annuity payments, and it is
possible to have only one monthly annuity payment if both the Annuitant and the
designated second person die before the due date of the second payment.
OPTION 3 - LIFE ANNUITY WITH 120 OR 240 MONTHLY PERIODS 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, the balance of the guaranteed
number of payments will continue to be made to the Owner as scheduled. In the
event the Owner dies before the specified number of payments has been made, the
Beneficiary(ies) may elect to continue receiving the scheduled payments or may
alternatively elect to receive the present value of any remaining guaranteed
payments in a single lump-sum, the amount of which is calculated by the Company.
OPTION 4 - INCOME FOR A SPECIFIED PERIOD Under this income option, an Owner 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 Owner dies
before the specified number of payments has been made, the Beneficiary(ies) may
elect to continue receiving the scheduled payments or may alternatively elect to
receive the present value of any remaining guaranteed payments in a single
lump-sum, the amount of which is calculated by the Company.
ADDITIONAL OPTIONS. The Company may make other income options available.
FIXED ANNUITY PAYMENTS. To the extent a fixed income option has been elected,
the proceeds payable under this Contract, less any applicable premium taxes,
shall be applied to the payment of the income option elected at whichever of the
following is more favorable to the Owner; (a) the annuity rates based upon the
income option table specified in the Contract; (b) the then current rates
provided by the Company on contracts of this type on the Income Date. In no
event will the fixed payments be changed once they begin.
VARIABLE ANNUITY PAYMENT. The initial variable annuity payment is determined by
taking the Contract Value allocated to that Investment Division, less any
premium tax and any applicable Contract charges, and then applying it to the
income option table specified in the Contract. The appropriate rate must be
determined by the sex (except where, as in the case of certain Qualified Plans
and other employer-sponsored retirement plans, such classification is not
permitted) and age of the Annuitant and designated second person, if any.
15
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INCOME PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
The dollars applied are divided by 1,000 and the result multiplied by the
appropriate annuity factor appearing in the table to compute the amount of the
first monthly payment. That amount is divided by the value of an Annuity Unit as
of the Income Date to establish the number of Annuity Units representing each
variable 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 amount of the second and each subsequent monthly variable annuity payment is
determined by multiplying the number of Annuity Units by the Annuity Unit Value
as of the Business Day next preceding the date on which each payment is due.
ANNUITY UNIT VALUE. The initial value of an Annuity Unit of each Investment
Division was set when the Investment Divisions were established. The value may
increase or decrease from one Business Day to the next. The income option tables
contained in the Contract are based on a 4.5% per annum assumed net investment
rate. If the actual net investment rate experienced by an Investment Division
exceeds 4.5%, variable annuity payments will increase over time. Conversely, if
the actual net investment rate is less than 4.5%, variable annuity payments will
decrease over time. If the actual net investment rate equals 4.5%, the variable
annuity payments will remain constant.
The value of a fixed number of Annuity Units will reflect the investment
performance of the Investment Divisions, and the amount of each payment will
vary accordingly.
For each Investment Division, the value of an Annuity Unit for any Business Day
is determined by multiplying the Annuity Unit Value for the immediately
preceding Business Day by the net investment factor for the Business Day for
which the Annuity Unit Value is being calculated. The result is then multiplied
by a second factor which offsets the effect of the assumed net investment rate
of 4.5% per annum. The net investment factor, which reflects changes in the net
asset value of Investment Divisions, is determined by dividing 1. by 2., and
then subtracting 3. from the result, where:
1. Is the net result of:
a. the net asset value of an Investment Division determined as of
the end of the Business Day, plus
b. the per share amount of any dividend or other distribution
declared by the Investment Division if the "ex-dividend" date
occurs on the Business Day, plus or minus
c. a per share credit or charge with respect to any taxes paid or
reserved for by the Company which are determined by the
Company to be attributable to the operation of the Investment
Division (no federal incomes taxes are applicable under
present law);
2. Is the net asset value of the Investment Division determined as of the
end of the preceding Business Day; and
3. Is the Contract Insurance Charges.
16
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INCOME PROVISIONS (CONT'D)
- --------------------------------------------------------------------------------
BASIS OF COMPUTATION. The actuarial basis for the Table of Income Options is the
Annuity 2000 Mortality Table, and interest at 4.5%. The Table of Income Options
does not include any applicable premium tax.
17
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TABLE OF INCOME OPTIONS
- --------------------------------------------------------------------------------
[The following table is for this 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 of No. of Mos. Age of No. of Mos. Age of No. of Mos. Age of No. of Mos.
Monthly Install- Payee Payee Payee Payee
Install- ments Certain Certain Certain Certain
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 18.60 40 4.49 4.48 4.43 70 7.61 7.08 5.96 40 4.33 4.33 4.30 70 6.91 6.63 5.86
72 15.83 41 4.53 4.52 4.47 71 7.85 7.24 6.00 41 4.36 4.36 4.33 71 7.12 6.79 5.91
84 13.86 42 4.57 4.56 4.50 72 8.11 7.40 6.04 42 4.40 4.39 4.36 72 7.35 6.96 5.96
96 12.38 43 4.62 4.60 4.54 73 8.38 7.57 6.08 43 4.43 4.43 4.40 73 7.59 7.13 6.01
108 11.23 44 4.67 4.65 4.58 74 8.68 7.74 6.11 44 4.47 4.46 4.43 74 7.86 7.31 6.05
120 10.32 45 4.72 4.69 4.62 75 8.99 7.91 6.14 45 4.51 4.50 4.46 75 8.15 7.50 6.09
132 9.57 46 4.77 4.74 4.66 76 9.33 8.08 6.16 46 4.56 4.54 4.50 76 8.46 7.69 6.13
144 8.96 47 4.82 4.79 4.70 77 9.69 8.25 6.18 47 4.60 4.59 4.54 77 8.80 7.88 6.15
156 8.43 48 4.88 4.85 4.75 78 10.08 8.41 6.20 48 4.65 4.63 4.58 78 9.16 8.08 6.18
168 7.99 49 4.94 4.90 4.80 79 10.50 8.58 6.22 49 4.70 4.68 4.62 79 9.56 8.27 6.20
180 7.60 50 5.01 4.96 4.84 80 10.94 8.74 6.23 50 4.75 4.73 4.67 80 9.99 8.46 6.22
192 7.27 51 5.07 5.03 4.89 81 11.42 8.90 6.24 51 4.81 4.78 4.71 81 10.46 8.65 6.23
204 6.98 52 5.14 5.09 4.94 82 11.92 9.05 6.25 52 4.86 4.84 4.76 82 10.97 8.83 6.24
216 6.72 53 5.22 5.16 5.00 83 12.46 9.19 6.26 53 4.93 4.90 4.81 83 11.52 9.01 6.25
228 6.48 54 5.30 5.23 5.05 84 13.04 9.32 6.27 54 4.99 4.96 4.86 84 12.12 9.17 6.26
240 6.28 55 5.38 5.31 5.11 85 13.66 9.45 6.27 55 5.06 5.03 4.91 85 12.77 9.32 6.27
252 6.09 56 5.47 5.39 5.16 86 14.32 9.56 6.27 56 5.14 5.10 4.97 86 13.46 9.46 6.27
264 5.92 57 5.57 5.48 5.22 87 15.02 9.67 6.27 57 5.22 5.17 5.03 87 14.21 9.58 6.27
276 5.77 58 5.67 5.57 5.28 88 15.76 9.76 6.28 58 5.30 5.25 5.09 88 15.00 9.69 6.28
288 5.63 59 5.77 5.66 5.34 89 16.55 9.85 6.28 59 5.39 5.33 5.15 89 15.84 9.79 6.28
300 5.51 60 5.89 5.77 5.40 90 17.38 9.93 6.28 60 5.49 5.42 5.21 90 16.72 9.88 6.28
61 6.01 5.87 5.46 91 18.26 10.00 6.28 61 5.59 5.51 5.27 91 17.65 9.96 6.28
62 6.15 5.98 5.52 92 19.20 10.07 6.28 62 5.70 5.61 5.34 92 18.61 10.03 6.28
63 6.29 6.10 5.58 93 20.20 10.12 6.28 63 5.82 5.72 5.41 93 19.61 10.09 6.28
64 6.44 6.23 5.64 94 21.26 10.17 6.28 64 5.94 5.83 5.47 94 20.65 10.14 6.28
65 6.60 6.36 5.70 95 22.39 10.21 6.28 65 6.07 5.94 5.54 95 21.73 10.18 6.28
66 6.78 6.49 5.76 96 23.62 10.24 6.28 66 6.22 6.06 5.61 96 22.87 10.22 6.28
67 6.97 6.63 5.81 97 24.95 10.27 6.28 67 6.37 6.20 5.67 97 24.10 10.25 6.28
68 7.17 6.78 5.86 98 26.44 10.29 6.28 68 6.54 6.33 5.74 98 25.45 10.28 6.28
69 7.38 6.93 5.91 99 28.13 10.30 6.28 69 6.72 6.48 5.80 99 26.98 10.29 6.28
</TABLE>
NOTE: Due to the length of the information, the Table for Option 2 is
available from the Service Center upon Your request.
18
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GENERAL PROVISIONS (CONT'D)
- -------------------------------------------------------------------------------
MISSTATEMENT OF AGE. If the age of the Annuitant has been misstated, the
payments will be those that the Premiums paid would have purchased at the
correct age. Any underpayments will be adjusted immediately by the Company.
Overpayments will be deducted from future payments.
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 broker or producer has
authority to change or waive any provision of this Contract. The Company may
amend or waive any portion of this Contract without notice or consent if state
or federal law so requires.
NONPARTICIPATING. This Contract does not share in Our surplus or earnings.
PROOF OF AGE OR SURVIVAL. The Company may require satisfactory proof of correct
age 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.
PROTECTION OF PROCEEDS. No Beneficiary may commute, encumber, alienate or assign
any payment under this Contract before it is due. To the extent permitted by
law, no payment will be subject to the debts, contracts or engagements of any
Beneficiary. In addition, to the extent permitted by law, no payment will be
subject to any judicial process to levy You or attach the same for payment
thereof.
REPORTS. The Company will send You a report at least once a year. We will also
send You reports as required by law. They shall be addressed to the last address
of the Owner known to the Company.
SUBSTITUTION OF INVESTMENT PORTFOLIOS. We may substitute another underlying
Portfolio without Your consent. Substitution would occur if We determine that
the use of such underlying investment is no longer possible of if We determine
it is no longer appropriate for the purposes of the Contract. No substitution
will be made without notice to You and without the prior approval of the
Securities and Exchange Commission and the state where the Contract was issued
for delivery, if required. Should a substitution, addition, or deletion occur,
You will be allowed to select from the then current Investment Divisions and
substitution may be made with respect to both existing Contract Value in that
Investment Division and the allocation of future Premiums.
SUSPENSION OF PAYMENTS. The Company may suspend or postpone any transfers or
payments to or from the Investment Divisions if any of the following occur:
1. The New York Stock Exchange is closed;
2. Trading on the New York Stock Exchange is restricted;
7
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF INCOME OPTIONS
- --------------------------------------------------------------------------------
The following table is for this 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
Monthly Install- Ages of No. of Mos. Age of No. of Mos. Age of No. of Mos.
Install- ments Payee Certain Payee Certain Payee Certain
ments --------- ------------------- ------- ------------------- -------- -------------------
Unisex Life 120 240 Unisex Life 120 240 Unisex Life 120 240
------- --------- --------- ----- ---- ---- ------- ---- ----- ------ -------- ---- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 18.60 40 4.40 4.39 4.36 60 5.65 5.56 5.29 80 10.37 8.58 6.22
72 15.83 41 4.43 4.42 4.39 61 5.76 5.66 5.35 81 10.84 8.75 6.24
84 13.86 42 4.47 4.46 4.42 62 5.88 5.76 5.42 82 11.35 8.92 6.25
96 12.38 43 4.51 4.50 4.46 63 6.01 5.87 5.48 83 11.89 9.08 6.26
108 11.23 44 4.55 4.54 4.49 64 6.14 5.99 5.55 84 12.48 9.23 6.26
120 10.32 45 4.60 4.58 4.53 65 6.29 6.11 5.61 85 13.12 9.37 6.27
132 9.57 46 4.64 4.62 4.57 66 6.44 6.24 5.67 86 13.80 9.50 6.27
144 8.96 47 4.69 4.67 4.61 67 6.61 6.37 5.73 87 14.53 9.62 6.27
156 8.43 48 4.74 4.72 4.65 68 6.79 6.51 5.79 88 15.30 9.72 6.28
168 7.99 49 4.80 4.77 4.69 69 6.98 6.66 5.85 89 16.12 9.82 6.28
180 7.60 50 4.85 4.83 4.74 70 7.19 6.81 5.90 90 16.99 9.90 6.28
192 7.27 51 4.91 4.88 4.79 71 7.41 6.97 5.95 91 17.89 9.98 6.28
204 6.98 52 4.98 4.94 4.84 72 7.65 7.14 6.00 92 18.85 10.04 6.28
216 6.72 53 5.05 5.01 4.89 73 7.90 7.31 6.04 93 19.84 10.10 6.28
228 6.48 54 5.12 5.07 4.94 74 8.18 7.49 6.08 94 20.89 10.15 6.28
240 6.28 55 5.19 5.14 4.99 75 8.48 7.67 6.11 95 22.00 10.19 6.28
252 6.09 56 5.27 5.22 5.05 76 8.80 7.85 6.14 96 23.17 10.23 6.28
264 5.92 57 5.36 5.30 5.11 77 9.15 8.03 6.17 97 24.44 10.26 6.28
276 5.77 58 5.45 5.38 5.17 78 9.52 8.22 6.19 98 25.85 10.28 6.28
288 5.63 59 5.55 5.47 5.23 79 9.93 8.40 6.21 99 27.44 10.30 6.28
300 5.51
</TABLE>
Note: Due to the length of the information, the Table for Option 2 is
available from the Service Center upon Your request.
18
EX-99.B5
Jackson National Life Insurance Company
For application questions or assistance,
please call 800/777-7779 (8:30 a.m. to 7:00 p.m. ET).
Application for the Perspective Counselor Fixed and Variable Annuity(R)
USE DARK INK ONLY
================================================================================
OWNER
- --------------------------------------------------------------------------------
Name Are you a U.S. citizen? [] Yes [] No
Social Security Number []
__ __ __ - __ __ - ___ ___ ___ ___
Tax I.D. Number []
Date of Birth Age Sex
Address (Number and Street)
City State ZIP
Phone E-mail Address
( )
================================================================================
JOINT OWNER
- --------------------------------------------------------------------------------
(Proceeds will be distributed on death of first Owner. Spousal Joint Owner has
option to continue contract in force.)
Name Are you a U.S. citizen? [] Yes [] No
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___
Date of Birth Relationship to Owner
================================================================================
ANNUITANT (If other than Owner)
- --------------------------------------------------------------------------------
Name (Print as desired in policy) Are you a U.S. citizen? [] Yes [] No
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___ ___
Date of Birth Sex
Address (Number and Street)
City State ZIP
Phone E-mail Address
( )
================================================================================
JOINT ANNUITANT
- --------------------------------------------------------------------------------
Name Are you a U.S. citizen? [] Yes [] No
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___ ___
Date of Birth
================================================================================
THE BENEFICIARY
- --------------------------------------------------------------------------------
PRIMARY NAME ________ %
Date of Birth Relationship to Owner
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___ ___
- --------------------------------------------------------------------------------
PRIMARY NAME ________ %
Date of Birth Relationship to Owner
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___ ___
- --------------------------------------------------------------------------------
CONTINGENT NAME ________ %
Date of Birth Relationship to Owner
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___ ___
- --------------------------------------------------------------------------------
CONTINGENT NAME ________ %
Date of Birth Relationship to Owner
Social Security Number/Federal I.D. __ __ __ - __ __ - ___ ___ ___ ___
================================================================================
PREMIUM PAYMENT
- --------------------------------------------------------------------------------
Initial Premium with application $___________________
================================================================================
PREMIUM ALLOCATION (Whole percentages - must total 100%.)
- --------------------------------------------------------------------------------
Separate Account Investment Division Option
[]% S&P 500 Index
[]% Mid Cap Index
[]% Russell 2000 Index
[]% EAFE Index
[]% Enhanced S&P 500 Index
[]% Enhanced Intermediate Bond
[]% PPM America/JNL Money Market
Fixed Account Option
1 year ____%
Subsequent premium payments will be invested as indicated in Premium Allocation
above unless the Company is otherwise instructed.
================================================================================
DOLLAR COST AVERAGING
- --------------------------------------------------------------------------------
I (We) authorize the Company to transfer the following amount as indicated below
(min. $100). Transfers are available from any Contract Option. (Check transfer
frequency.)
[] Monthly [] Quarterly [] Semiannually [] Annually
Please make the first transfer on ____/____/____ (m/d/y)
From: To: Amount
(One only)
_______________________ ______________________ $______________
______________________ $______________
______________________ $______________
================================================================================
DCA+ (Call for Term Options currently available)
- --------------------------------------------------------------------------------
DCA+ Term _______________
Invest $ _______________ in DCA+ (Available for new money only.)
Make first transfer on ___ /___ /___ (within 30 days of fund receipt).
From: To: Percentage
(Fixed Account Option)
_______________________ ______________________ $______________
______________________ $______________
______________________ $______________
If DCA+ is selected, unless the Company is otherwise instructed, subsequent
payments will be invested as indicated in the "To" and "Percentage" columns
immediately above.
================================================================================
ARIZONA RESIDENTS, PLEASE NOTE: RIGHT TO EXAMINE
On written request, the Company will provide to the Contract Owner within a
reasonable time, reasonable factual information regarding the benefits and
provisions of this Contract. If for any reason the Contract Owner is not
satisfied, the Contract may be returned to the Company or producer within 20
days after delivery, and the Contract Value will be returned.
================================================================================
VDA102 F3717 12/99
<PAGE>
================================================================================
Will this annuity replace any existing life insurance or annuity?
[] Yes [] No Details:
Company ________________
Policy No. _____________
================================================================================
ANNUITY TYPE
- --------------------------------------------------------------------------------
Plan Type
[] Non-Tax Qualified [] 401(k) Qualified Savings Plan
[] IRA -- Individual [] HR-10 (Keogh) Plan
[] IRA -- Custodial [] Deferred Compensation
[] IRA -- SEP [] 403(b) TSA (Direct Transfer only)
[] IRA -- Roth [] Other __________________
[] Contribution Year ____________
Type of Transfer
[] IRC 1035 Exchange [] Non-Direct Rollover
[] Direct Transfer [] Roth Conversion
[] Direct Rollover
================================================================================
INCOME DATE
- --------------------------------------------------------------------------------
Anticipated Income/Annuity Date: _____/_____/_____
If Income Date is not specified, age 90 (age 70 1/2 for Qualified Plans) will be
used.
================================================================================
REBALANCING
- --------------------------------------------------------------------------------
Rebalancing to begin on____/____/____ (date).
Rebalancing to my Premium Allocation above should occur:n Monthly n Quarterly n
Semiannually n Annually
================================================================================
AUTHORIZATION FOR ELECTRONIC TRANSACTIONS (Please initial)
- --------------------------------------------------------------------------------
I (We) hereby authorize electronic transactions, subject to the conditions set
forth below:
[] Yes [] No (If no election is indicated, the Company will
default to Yes.)
Jackson National Life Insurance Company (JNL) has procedures designed to provide
reasonable assurance that electronic transactions are genuine. Such procedures
include requesting identifying information and tape recording telephone
communications. If JNL fails to employ reasonable procedures to ensure that
electronic transactions are genuine, we may be held liable for such losses.
Neither JNL nor its producers or representatives who act on its behalf shall be
subject to any claim, loss, liability, cost or expense in connection with an
electronic transaction if acted on in good faith in reliance on this
authorization.
================================================================================
IMPORTANT: MAKE ALL CHECKS PAYABLE ONLY TO JACKSON NATIONAL LIFE INSURANCE
COMPANY
1. I (We) hereby represent to the best of my (our) knowledge and belief that
each of the statements and answers contained above are full, complete and true.
2. I (We) certify that the Social Security or taxpayer identification number
shown above is correct.
3. I (We) understand that annuity premiums, benefits, and surrender values, if
any, when based on the investment experience of a separate account of JNL, are
variable and may be increased or decreased, and the dollar amounts are not
guaranteed.
4. I (We) have been given a current Prospectus for this variable annuity
contract.
5. The Contract I (we) have applied for is suitable for my (our) insurance
investment objective, financial situation and needs.
6. I understand the restrictions imposed by ss. 403 (b)(11) of the Internal
Revenue Code, if applicable. I understand the investment alternatives available
under my employer's 403(b) plan, to which I may elect to transfer my contract
value.
Dated and signed Signature of Owner at _________________________________
_________________________________________ City State Signature of Joint Owner
Title on _________________________________
_________________________________________ Signature of Annuitant if other than
Owner _________________________________________
================================================================================
REGISTERED REPRESENTATIVE STATEMENT: (Must check appropriate box.) I have
complied with requirements for disclosure and/or replacement as necessary. I
certify that I am authorized and qualified to discuss the Contract herein
applied for. To the best of my knowledge and belief, this application [] will []
will not replace any life insurance or annuities and is suitable for the above -
named owner(s). I have provided a State Replacement form where required.
- --------------------------------------------------------------------------------
Producer/Representative's Full Name (Please print) Phone No. E-mail Address
__________________________________________________ ( )______ ______________
Address City State
________________________________________________________________________________
Signature of Producer/Representative (ID # -- FL only) Date
________________________________________________________________________________
Broker/Dealer Name and No. JNL Producer Number
________________________________________________________________________________
================================================================================
PLEASE NOTE: Any person who knowingly, and with intent to defraud any insurance
company or other person, files an application for insurance or statement of
claim containing any materially false information or conceals for the purpose of
misleading, information concerning any fact material thereto, commits a
fraudulent insurance act, which is a crime and subjects such person to criminal
and civil penalties.In Colorado, any insurance company, or agent of an insurance
company, who knowingly provides false, incomplete, or misleading facts or
information to a policyholder or claimant for the purpose of defrauding, or
attempting to defraud, the policyholder or claimant with regard to a settlement
or award payable from insurance proceeds, shall be reported to the Colorado
division of Insurance within the Department of Regulatory Agencies.
D.C. RESIDENTS, WARNING: It is a crime to provide false or misleading
information to an insurer for the purpose of defrauding the insurer or any other
person. Penalties include imprisonment and/or fines. In addition, an insurer may
deny insurance benefits if false information materially related to a claim was
provided by the applicant.
FLORIDA RESIDENTS: Any person who knowingly, and with intent to injure, defraud,
or deceive any insurer, files a statement of claim or an application containing
any false, incomplete or misleading information, is guilty of a felony of the
third degree.
NEW JERSEY RESIDENTS: Any person who includes any false or misleading
information on an insurance policy is subject to criminal and civil penalties.
[LOGO]
Institutional Marketing Group
Jackson National Life Insurance Company
Home Office: Lansing, Michigan
www.jacksonnational.com
Jackson National Life Service Center
P.O. Box 30386, Lansing, MI 48909-7886
800/777-7779
VDA102 F3717 12/99
