File No. 811-09933
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT TRUSTS
WHICH ARE CURRENTLY ISSUING SECURITIES
Pursuant to Section 8(b) of the Investment Company Act of 1940
JACKSON NATIONAL LIFE SEPARATE ACCOUNT IV
(Name of Unit Investment Trust)
Not the issuer of periodic payment plan certificates.
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X Issuer of periodic payment plan certificates.
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I. ORGANIZATION AND GENERAL INFORMATION
1. (a) Furnish name of the trust and the Internal Revenue Service
Employer Identification Number.
Jackson National Life Separate Account IV (the "Separate
Account"). IRS Employer Identification Number: Not Applicable
(b) Furnish title of each class or series of securities issued by
the trust.
Variable portion of modified single premium variable life
insurance policies (the "Policies").
2. Furnish name and principal business address and zip code and the
Internal Revenue Service Employer Identification Number of each
depositor of the trust.
Jackson National Life Insurance Company
(the "Company" or "Jackson National")
5901 Executive Drive
Lansing, Michigan 48911
IRS Employer Identification Number: 38-1659835
3. Furnish name and principal business address and zip code and the
Internal Revenue Service Employer Identification Number of each
custodian or trustee of the trust indicating for which class or series
of securities each custodian or trustee is acting.
N/A. There is no custodian or trustee.
4. Furnish name and principal business address and zip code and the
Internal Revenue Service Employer Identification Number of each
principal underwriter currently distributing securities of the trust.
No Policies are currently being distributed. When distribution
commences, the principal underwriter will be:
Jackson National Life Distributors, Inc. ("JNLD")
401 Wilshire Boulevard, Suite 1200
Santa Monica, California 90401
IRS Employer Identification Number: 38-3241867
5. Furnish name of state or other sovereign power, the laws of which
govern with respect to the organization of the trust.
Michigan
6. (a) Furnish the dates of execution and termination of any
indenture or agreement currently in effect under the terms of
which the trust was organized and issued or proposes to issue
securities.
The Separate Account was established pursuant to Michigan law
by resolution of the Board of Directors of Jackson National
adopted on December 16, 1999, as a segregated asset account of
Jackson National. The Separate Account will continue in
existence until its complete liquidation and the distribution
of its assets to the persons entitled to receive them. The
resolution authorizes the issuance of the Policies.
(b) Furnish the dates of execution and termination of any
indenture or agreement currently in effect pursuant to which
the proceeds of payments on securities issued or to be issued
by the trust are held by the custodian or trustee.
Not applicable. There is no custodian or trustee.
7. Furnish in chronological order the following information with respect
to each change of name of the trust since January 1, 1930. If the name
has never been changed, so state.
The Separate Account has never been known by any other name.
8. State the date on which the fiscal year of the trust ends.
The fiscal year of the Separate Account ends on December 31.
MATERIAL LITIGATION
9. Furnish a description of any pending legal proceedings, material with
respect to the security holders of the trust by reason of the nature of
the claim or the amount thereof, to which the trust, the depositor, or
the principal underwriter is a party or of which the assets of the
trust are the subject, including the substance of the claims involved
in such proceeding and the title of the proceeding. Furnish a similar
statement with respect to any pending administrative proceeding
commenced by a governmental authority or any such proceeding or legal
proceeding known to be contemplated by a governmental authority.
Include any proceeding which, although immaterial itself, is
representative of, or one of, a group which in the aggregate is
material.
See "Legal Proceedings" in the Prospectus in Exhibit D, which is
incorporated herein by reference.
II. GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
GENERAL INFORMATION CONCERNING THE SECURITIES OF THE TRUST AND THE RIGHTS OF
HOLDERS
10. Furnish a brief statement with respect to the following matters for
each class or series of securities issued by the trust:
(a) Whether the securities are of the registered or bearer type;
The Policies which are to be issued are of the registered
type.
(b) Whether the securities are of the cumulative or distributive
type;
The Policies are of the cumulative type, providing for no
direct distribution of income, dividends or capital gains.
Such amounts are not separately identifiable but are reflected
in the Account Values and death benefit under a Policy at any
time.
(c) The rights of security holders with respect to withdrawal or
redemption;
See "Withdrawals," "Policy Loans," and "Right to Examine the
Policy" in the Prospectus in Exhibit D incorporated herein by
reference.
(d) The rights of security holders with respect to conversion,
transfer, partial redemption and similar matters;
See "Withdrawals," "Right to Examine the Policy," "Allocation
of Premium," and "Transfer of Policy Value" in the Prospectus
in Exhibit D, incorporated herein by reference.
(e) If the trust is the issuer of periodic payment plan
certificates, the substance of the provisions of any indenture
or agreement with respect to lapses or defaults by security
holders in making principal payments, and with respect to
reinstatement;
See "Termination and Grace Period" and "Reinstatement" in the
Prospectus in Exhibit D, incorporated herein by reference.
(f) The substance of the provisions of any indenture or agreement
with respect to voting rights, together with the names of any
persons other than security holders given the right to
exercise voting rights pertaining to the trust's securities or
the underlying securities and the relationship of such persons
to the trust;
See "Voting Privileges" in the Prospectus in Exhibit D,
incorporated herein by reference.
(g) Whether security holders must be given notice of any change
in:
(1) the composition of the assets of the trust;
See "Statements to Owners," "Additions, Deletions,
and Substitutions of Securities," and "Modification"
in the Prospectus in Exhibit D, incorporated herein
by reference. Except to the extent described in the
Prospectus, no changes in the terms and conditions of
the Policies can be made without notice to and/or
consent of Policy Owners. As described in the
response to other items of this form, however, the
Policies permit the Company to exercise discretion in
changing certain fees and charges, restricting
certain Owner rights and taking certain other
actions.
(2) the terms and conditions of the securities issued by
the trust;
See (g)(1) above, which is incorporated herein by
reference.
(3) the provisions of any indenture or agreement of the
trust;
Not applicable.
(4) the identity of the depositor, trustee or custodian;
There is no requirement for notice to, or consent of
Owners with respect to any change in the identity of
the Separate Account's depositor.
(h) Whether the consent of security holders is required in order
for action to be taken concerning any change in:
(1) the composition of the assets of the trust;
See (g)(1) above, which is incorporated herein by
reference.
(2) the terms and conditions of the securities issued by
the trust;
See (g)(1) above, which is incorporated herein by
reference.
(3) the provisions of any indenture or agreement of the
trust;
Not applicable.
(4) the identity of the depositor, trustee or custodian;
See (g)(4) above, which is incorporated herein by
reference.
(i) Any other principal feature of the securities issued by the
trust or any other principal right, privilege or obligation
not covered by subdivisions (a) to (g) or by any other item in
this form.
See "Policy Value," "Policy Benefits and Rights," and "Charges
and Deductions," in the Prospectus in Exhibit D, incorporated
herein by reference.
INFORMATION CONCERNING THE SECURITIES UNDERLYING THE TRUST'S SECURITIES
11. Describe briefly the kind or type of securities comprising the unit of
specified securities in which security holders have an interest. If the
trust owns or will own any securities of its regular brokers or dealers
as defined in Rule 10b-1 under the Act, or their parents, identify
those brokers or dealers and state the value of the registrant's
aggregate holdings of the securities of each subject issuer as of the
close of the registrant's most recent fiscal year.
The Policy Owner will not be the owner of the securities held in the
Separate Account, although the value of those securities will be used
to calculate Policy benefits. The securities are owned by the Company
but held in the Separate Account pursuant to Michigan insurance laws
governing the operation of separate accounts. The securities held in
the Separate Account will be shares of the Portfolios described below,
which are separate investment series of the following registered,
open-end management investment company or series thereof: JNL(R) Series
Trust, as well as shares of such other investment companies or series
thereof as the Company may make available from time to time in
accordance with the terms of the Policies and applicable law.
Jackson National Financial Services, LLC, ("JNFS") is the investment
adviser to JNL(R) Series Trust. JNFS is a wholly owned subsidiary of
Jackson National Life Insurance Company (JNL), which is in turn wholly
owned by Prudential plc, a life insurance company in the United
Kingdom. JNFS is a successor to Jackson National Financial Services,
Inc. which served as investment adviser to the Trust from the inception
of the Trust until July 1, 1998, when it transferred its duties as
investment adviser and its professional staff for investment advisory
services to JNFS.
For additional information about the Portfolios, and their advisers and
subadvisers, see "The Separate Account: The Portfolios" in the
prospectus in Exhibit D, incorporated herein by reference.
The investment objectives of the Portfolios in which the Separate
Account invests are as follows:
JNL/Alger Growth Series seeks long-term capital appreciation by
investing primarily in a diversified portfolio of equity securities of
large, U.S. traded companies.
JNL/Alliance Growth Series seeks long-term growth of capital by
investing primarily in a diversified portfolio of common stocks or
securities with common stock characteristics, which include securities
convertible into or exchangeable for common stock.
JNL/Eagle Core Equity Series seeks long-term capital appreciation and,
secondarily, current income by investing primarily in a diversified
portfolio of common stock of U.S. companies that meet the criteria for
one of three separate equity strategies - the growth equity strategy,
the value equity strategy, and the equity income strategy.
JNL/Eagle Small Cap Equity Series seeks long-term capital appreciation
by investing primarily in a diversified portfolio of equity securities
of domestic small capitalization companies with a market capitalization
at the time of purchase under $1 billion.
JNL/J.P. Morgan Enhanced S&P 500 Index Series seeks high total return
from a broadly diversified portfolio of equity securities by investing
primarily in large and medium capitalization U.S. companies.
JNL/Janus Aggressive Growth Series seeks long-term growth of capital by
investing primarily in a diversified portfolio of common stocks of U.S.
and foreign companies selected for their growth potential.
JNL/Janus Balanced Series seeks long-term capital growth, consistent
with preservation of capital and balanced by current income. The Series
normally invests 40-60% of its assets in securities selected primarily
for their growth potential and 40-60% of its assets in securities
selected primarily for their income potential. The Series will normally
invest at least 25% of its assets in fixed-income securities. The Fund
may invest without limit in foreign securities.
JNL/Janus Capital Growth Series seeks long-term growth of capital in a
manner consistent with the preservation of capital through a
non-diversified portfolio consisting primarily of common stock of U.S.
and foreign companies selected for their growth potential. The Series
normally invests a majority of its equity assets in medium-sized
companies.
JNL/Janus Global Equities Series seeks long-term growth of capital in a
manner consistent with the preservation of capital by investing
primarily in a diversified portfolio of common stocks of foreign and
domestic issuers. The Series may invest to a lesser degree in other
types of securities, including preferred stock, warrants, convertible
securities, and debt securities, such as corporate bonds.
JNL/Putnam Growth Series seeks long-term capital growth by investing
primarily in a diversified portfolio of common stock of domestic,
large-capitalization companies.
JNL/Putnam International Equity Series seeks long-term growth of
capital through a diversified portfolio consisting primarily of common
stocks of non-U.S. companies. The Series normally has at least three
countries represented in its portfolio, including both developed and
emerging markets.
JNL/Putnam Mid-Cap Growth Series seeks capital appreciation by
investing mainly in common stocks of U.S. companies with a focus on
growth stocks. Growth stocks are issued by companies whose earnings the
sub-adviser believes are likely to grow faster than the economy as a
whole.
JNL/Putnam Value Equity Series seeks capital growth, with income as a
secondary objective by investing primarily in a diversified portfolio
of equity securities of domestic, large-capitalization companies. For
this purpose, equity securities include common stocks, securities
convertible into common stock and securities with common stock
characteristics, such as rights and warrants. The Series considers a
large-capitalization company to be one that, at the time its securities
are acquired by the Series, has a market capitalization of $2 billion
or greater.
JNL/S&P Conservative Growth Series I seeks capital growth and current
income by investing in a diversified group of other Series of the Trust
(Underlying Series). The Underlying Series in which the JNL/S&P
Conservative Growth Series I may invest are the JNL/Alger Growth
Series, JNL/Alliance Growth Series, JNL/Eagle Core Equity Series,
JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan Enhanced S&P 500
Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus Balanced
Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth
Series, PPM America/JNL Balanced Series, PPM America/JNL High Yield
Bond Series, PPM America/JNL Money Market Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe Price/JNL
Mid-Cap Growth Series, and T.Rowe Price/JNL Value Series.
JNL/S&P Moderate Growth Series I seeks capital growth and current
income by investing in a diversified group of other Series of the Trust
(Underlying Series). The Underlying Series in which the JNL/S&P
Conservative Growth Series I may invest are the JNL/Alger Growth
Series, JNL/Alliance Growth Series, JNL/Eagle Core Equity Series,
JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan Enhanced S&P 500
Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus Balanced
Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth
Series, PPM America/JNL Balanced Series, PPM America/JNL High Yield
Bond Series, PPM America/JNL Money Market Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe Price/JNL
Mid-Cap Growth Series, and T.Rowe Price/JNL Value Series.
JNL/S&P Aggressive Growth Series I seeks capital growth and current
income by investing in a diversified group of other Series of the Trust
(Underlying Series). The Underlying Series in which the JNL/S&P
Conservative Growth Series I may invest are the JNL/Alger Growth
Series, JNL/Alliance Growth Series, JNL/Eagle Core Equity Series,
JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan Enhanced S&P 500
Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus Balanced
Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth
Series, PPM America/JNL Balanced Series, PPM America/JNL High Yield
Bond Series, PPM America/JNL Money Market Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe Price/JNL
Mid-Cap Growth Series, and T.Rowe Price/JNL Value Series.
JNL/S&P Very Aggressive Growth Series I seeks capital growth and
current income by investing in a diversified group of other Series of
the Trust (Underlying Series). The Underlying Series in which the
JNL/S&P Conservative Growth Series I may invest are the JNL/Alger
Growth Series, JNL/Alliance Growth Series, JNL/Eagle Core Equity
Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan Enhanced S&P
500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus Balanced
Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth
Series, PPM America/JNL Balanced Series, PPM America/JNL High Yield
Bond Series, PPM America/JNL Money Market Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe Price/JNL
Mid-Cap Growth Series, and T.Rowe Price/JNL Value Series.
JNL/S&P Equity Growth Series I seeks capital growth and current income
by investing in a diversified group of other Series of the Trust
(Underlying Series). The Underlying Series in which the JNL/S&P
Conservative Growth Series I may invest are the JNL/Alger Growth
Series, JNL/Alliance Growth Series, JNL/Eagle Core Equity Series,
JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan Enhanced S&P 500
Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus Balanced
Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth
Series, PPM America/JNL Balanced Series, PPM America/JNL High Yield
Bond Series, PPM America/JNL Money Market Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe Price/JNL
Mid-Cap Growth Series, and T.Rowe Price/JNL Value Series.
JNL/S&P Equity Aggressive Growth Series I seeks capital growth and
current income by investing in a diversified group of other Series of
the Trust (Underlying Series). The Underlying Series in which the
JNL/S&P Conservative Growth Series I may invest are the JNL/Alger
Growth Series, JNL/Alliance Growth Series, JNL/Eagle Core Equity
Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan Enhanced S&P
500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus Balanced
Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth
Series, PPM America/JNL Balanced Series, PPM America/JNL High Yield
Bond Series, PPM America/JNL Money Market Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe Price/JNL
Mid-Cap Growth Series, and T.Rowe Price/JNL Value Series.
PPM America/JNL Balanced Series seeks reasonable income, long-term
capital growth and preservation of capital by investing primarily in a
diversified portfolio of common stock and fixed-income securities of
U.S. companies. The Series may invest in any type or class of security.
The anticipated mix of the Series' holdings is approximately 45-75% of
its assets in equities and 25-55% in fixed-income securities.
PPM America/JNL High Yield Bond Series is to provide a high level of
current income; its secondary investment objective is capital
appreciation by investing in fixed-income securities, with emphasis on
higher-yielding, higher-risk, lower-rated or unrated corporate bonds.
PPM America/JNL Money Market Series seeks to achieve as high a level of
current income as is consistent with the preservation of capital and
maintenance of liquidity by investing in high quality, short-term money
market instruments by investing in high quality, U.S.
dollar-denominated money market instruments that mature in 397 days or
less.
Salomon Brothers/JNL Global Bond Series seeks a high level of current
income. As a secondary objective, the Series seeks capital
appreciation. The Series seeks to achieve its objective through a
diversified portfolio consisting primarily of fixed income securities
of U.S. and foreign issuers.
Salomon Brothers/JNL U.S. Government & Quality Bond Series seeks to
obtain a high level of current income by investing primarily in a
diversified portfolio of debt obligations and mortgage-backed
securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, including collateralized mortgage obligations backed
by such securities.
T. Rowe Price/JNL Established Growth Series seeks long-term growth of
capital and increasing dividend income by investing primarily in a
diversified portfolio of common stocks of well-established growth
companies. A growth company is one which (i) has demonstrated
historical growth of earnings faster than the growth of inflation and
the economy in general, and (ii) has indications of being able to
continue this growth pattern in the future.
T. Rowe Price/JNL Mid-Cap Growth Series seeks long-term growth of
capital by investing primarily in a diversified portfolio of common
stocks of medium-sized (mid-cap) U.S. companies which the sub-adviser
believes have the potential for above-average earnings growth. The
Sub-Adviser defines mid-cap companies as those whose market
capitalization, at the time of acquisition by the Series, falls within
the capitalization range of companies in the S&P MidCap 400 Index.
T. Rowe Price/JNL Value Series seeks to provide long-term capital
appreciation by investing in common stocks believed to be undervalued.
Income is a secondary objective. In taking a value approach to
investment selection, at least 65% of total assets will be invested in
common stocks the portfolio manager regards as undervalued.
12. If the trust is the issuer of periodic payment plan certificates and if
any underlying securities were issued by another investment company,
furnish the following information for each such company:
(a) Name of company;
JNL(R) Series Trust
(b) Name and principal business address of depositor;
Not applicable.
(c) Name and principal business address of trustee or custodian;
Boston Safe Deposit and Trust Company, One Boston Place,
Boston, Massachusetts 02108, acts as custodian for the
JNL/Alger Growth Series, JNL/Alliance Growth Series, JNL/Eagle
Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P.
Morgan Enhanced S&P 500 Stock Index Series, JNL/J.P. Morgan
International & Emerging Markets Series, JNL/Janus Aggressive
Growth Series, JNL/Janus Balanced Series, JNL/Janus Capital
Growth Series, JNL/Janus Global Equities Series JNL/Janus
Growth & Income Series, JNL/PIMCO Total Return Bond Series,
JNL/Putnam Growth Series, JNL/Putnam International Equity
Series, JNL/Putnam Midcap Growth Series, JNL/Putnam Value
Equity Series, JNL Enhanced Intermediate Bond Index Series,
JNL International Index Series, JNL Russell 2000 Index Series,
JNL S&P 500 Index Series, JNL S&P MidCap Index Series,
Lazard/JNL Small Cap Value Series, Lazard/JNL Mid Cap Value
Series, PPM America/JNL Balanced Series, PPM America/JNL High
Yield Bond Series, PPM America/JNL Money Market Series,
Salomon Brothers/JNL Balanced Series, Salomon Brothers/JNL
Global Bond Series, Salomon Brothers/JNL High Yield Bond
Series, Salomon Brothers/JNL U.S. Government & Quality Bond
Series, T. Rowe Price/JNL Established Growth Series, T. Rowe
Price/JNL Midcaap Growth Series, T. Rowe Price/JNL Value
Series, JNL Enhanced Intermediate Bond Index Series, JNL/SSGA
International Index Series, JNL Russell 2000 Index Series, JNL
S&P 500 Index Series, and JNL S&P MidCap Index Series.
The JNL Series Trust, 5901 Executive Drive, Lansing, Michigan
48911, acts as custodian for the JNL/S&P Conservative Growth
Series I, JNL/S&P Moderate Growth Series I, JNL/S&P Aggressive
Growth Series I, JNL/S&P Very Aggressive Growth Series I,
JNL/S&P Equity Growth Series I, JNL/S&P Equity Aggressive
Growth Series I, JNL/S&P Conservative Growth Series II,
JNL/S&P Moderate Growth Series II, JNL/S&P Aggressive Growth
Series II, JNL/S&P Very Aggressive Growth Series II, JNL/S&P
Equity Growth Series II, JNL/S&P Equity Aggressive Growth
Series II, JNL/S&P Conservative Growth Series, JNL/S&P
Moderate Growth Series, and JNL/S&P Aggressive Growth Series.
Name and principal business address of principal underwriter;
Jackson National Life Distributors, Inc.
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
(e) The period during which the securities of such company have
been the underlying securities.
No underlying securities have to date been acquired by the
Separate Account.
INFORMATION CONCERNING LOADS, FEES, CHARGES AND EXPENSES
13. (a) Furnish the following information with respect to each load,
fee, expense or charge to which (1) principal payments; (2)
underlying securities; (3) distributions; (4) cumulated or
reinvested distributions or income; and (5) redeemed or
liquidated assets of the trust's securities are subject:
(A) the nature of such load, fee, expense, or charge;
(B) the amount thereof;
(C) the name of the person to whom such amounts are paid
and his relationship to the trust;
(D) the nature of the services performed by such person
in consideration for such load, fee, expense, or
charge.
For sub-paragraphs (A) to (D) of this sub-item, see "Charges
and Deductions" in the Prospectus in Exhibit D, incorporated
herein by reference.
(b) For each installment payment type of periodic payment plan
certificate of the trust, furnish the following information
with respect to sales load and other deductions from principal
payments.
See (a) above, which is incorporated herein by reference.
(c) State the amount of total deductions as a percentage of the
net amount invested for each type of security issued by the
trust. State each different sales charge available as a
percentage of the public offering price and as a percentage of
the net amount invested. List any special purchase plans or
methods established by rule or exemptive order that reflect
scheduled variations in, or elimination of, the sales load,
and identify each class of individuals or transactions to
which such plans apply.
See (a) above, which is incorporated herein by reference.
(d) Explain fully the reasons for any difference in the price at
which securities are offered generally to the public, and the
price at which securities are offered for any class of
transactions to any class or group of individuals, including
officers, directors, or employees of the depositor, trustee,
custodian, or principal underwriter.
See "Charges and Deductions -- Daily Deduction," "Charges and
Deductions -- Withdrawal Charge," and "Charges and Deductions
-- Special Provisions for Group or Sponsored Arrangements" in
the Prospectus in Exhibit D, incorporated herein by reference.
(e) Furnish a brief description of any loads, fees, expenses or
charges not covered in Item 13(a) which may be paid by
security holders in connection with the trust or its
securities.
None
(f) State whether the depositor, principal underwriter, custodian
or trustee, or any affiliated person of the foregoing may
receive profits or other benefits not included in answer to
Item 13(a) or 13(d) through the sale or purchase of the
trust's securities or interests in such securities, or
underlying securities or interests in underlying securities,
and describe fully the nature and extent of such profits or
benefits.
See "Portfolio Expenses" in the Prospectus in Exhibit D,
incorporated herein by reference.
(g) State the percentage that the aggregate annual charges and
deductions for maintenance and other expenses of the trust
bear to the dividend and interest income from the trust
property during the period covered by the financial statements
filed herewith:
Not applicable since the Separate Account has not yet
commenced operations.
INFORMATION CONCERNING THE OPERATIONS OF THE TRUST
14. Describe the procedure with respect to applications (if any) and the
issuance and authentication of the trust's securities, and state the
substance of the provisions of any indenture or agreement pertaining
thereto.
See "Applying for a Policy", "Allocation of Premium", and "Distribution
of Policies" in the Prospectus in Exhibit D, incorporated herein by
reference.
15. Describe the procedure with respect to the receipt of payments from
purchasers of the trust's securities and the handling of the proceeds
thereof, and state the substance of the provisions of any indenture or
agreement pertaining thereto.
See "Applying for a Policy", "Premium", "Allocation of Premium", and
"Transfer of Policy Value" in the Prospectus in Exhibit D, incorporated
herein by reference.
16. Describe the procedure with respect to the acquisition of underlying
securities and the disposition thereof, and state the substance of the
provisions of any indenture or agreement pertaining thereto.
See "The Portfolios" in the Prospectus in Exhibit D incorporated herein
by reference.
17. (a) Describe the procedure with respect to withdrawal or
redemption by security holders.
The procedures with respect to withdrawal or redemption by
security holders are described in response to Items 10(c) and
10(d), which are incorporated herein by reference.
(b) Furnish the names of any persons who may redeem or repurchase,
or are required to redeem or repurchase, the trust's
securities or underlying securities from security holders, and
the substance of the provisions of any indenture or agreement
pertaining thereto.
See Items 10(c), 10(d) and 10(e) and 17(a), which are
incorporated herein by reference.
(c) Indicate whether repurchased or redeemed securities will be
canceled or may be resold.
Not applicable. Separate Account assets are used to support
benefits and amounts payable under a Policy and there is no
limit on the amount of Separate Account interests that may be
sold.
18. (a) Describe the procedure with respect to the receipt, custody
and disposition of the income and other distributable funds of
the trust and state the substance of the provisions of any
indenture or agreement pertaining thereto.
See "Allocation of Premium" and "The Portfolios" in the
Prospectus in Exhibit D, incorporated herein by reference.
(b) Describe the procedure, if any, with respect to the
reinvestment of distributions to security holders and state
the substance of the provisions of any indenture or agreement
pertaining thereto.
Not applicable.
(c) If any reserves or special funds are created out of income or
principal, state with respect to each such reserve or fund the
purpose and ultimate disposition thereof, and describe the
manner of handling of same.
The assets of the Separate Account which are allocable to the
Policies constitute a reserve for the payment of benefits
under the Policies. The general assets of the Company are also
available to satisfy the Company's contractual obligations
under the Policies.
(d) Submit a schedule showing the periodic and special
distributions which have been made to security holders during
the three years covered by the financial statements filed
herewith. State for each such distribution the aggregate
amount and amount per share. If distributions from sources
other than current income have been made, identify each such
other source and indicate whether such distribution represents
the return of principal payments to security holders. If
payments other than cash were made describe the nature
thereof, the account charged and the basis of determining the
amount of such charge.
Not applicable.
19. Describe the procedure with respect to the keeping of records and
accounts of the trust, the making of reports and the furnishing of
information to security holders, and the substance of the provisions of
any indenture or agreement pertaining thereto.
The Company has responsibility for all administration of the Policies.
The Company, among other things, will maintain the records and books of
the Separate Account and the Sub-Accounts. It also will maintain
records of the name, address, taxpayer identification number, and other
pertinent information for each Owner and the number and type of Policy
issued to each such Owner and records with respect to the Policy
Account Value, Surrender Value, Accumulation Unit Value and the Death
Benefit of each Policy. Under the Distribution Agreement among the
Company, on its own behalf and on behalf of the Separate Account, and
JNLD, JNLD will maintain certain records relating to the sale of the
Policies. The Company may also utilize the services of a third party
administrator to maintain certain records.
See "The Portfolios" and "Statements to Owners" in the Prospectus in
Exhibit D, incorporated herein by reference.
20. State the substance of the provisions of any indenture or agreement
concerning the trust with respect to the following:
(a) Amendments to such indenture or agreement;
Item 10(g) is incorporated herein by reference.
(b) The extension or termination of such indenture or agreement;
Items 6(a) and 6(b) are incorporated herein by reference.
(c) The removal or resignation of the trustee or custodian, or the
failure of the trustee or custodian to perform its duties,
obligations and functions;
Not applicable, for the reasons set forth in Item 3, which is
incorporated herein by reference.
(d) The appointment of a successor trustee and the procedure if a
successor trustee is not appointed;
Not applicable.
(e) The removal or resignation of the depositor, or the failure of
the depositor to perform its duties, obligations and
functions;
There are no provisions relative to the removal or resignation
of the depositor or the failure of the depositor to perform
its duties, obligations and functions. The Company is bound
under the Policies and Michigan insurance law to carry out its
obligations and those of the Separate Account under the
Policies.
(f) The appointment of a successor depositor and the procedure if
a successor depositor is not appointed.
There are no provisions relating to the appointment of a
successor depositor or the procedure if a successor depositor
is not appointed. The Company is bound under the Policies and
Michigan insurance law to carry out its obligations (including
those with respect to the Separate Account) under the
Policies.
21. (a) State the substance of the provisions of any indenture or
agreement with respect to loans to security holders.
See "Policy Loans" in the Prospectus in Exhibit D,
incorporated herein by reference.
(b) Furnish a brief description of any procedure or arrangement by
which loans are made available to security holders by the
depositor, principal underwriter, trustee or custodian, or any
affiliated person of the foregoing. The following items should
be covered:
(1) the name of each person who makes such agreements or
arrangements with security holders;
(2) the rate of interest payable on such loans;
(3) the period for which loans may be made;
(4) costs or charges for default in repayment at
maturity;
(5) other material provisions of the agreement or
arrangements.
See "Policy Loans" in the Prospectus in Exhibit D,
incorporated herein by reference.
(c) If such loans are made, furnish the aggregate amount of loans
outstanding at the end of the last fiscal year, the amount of
interest collected during the last fiscal year allocated to
the depositor, principal underwriter, trustee or custodian or
affiliated person of the foregoing and the aggregate amount of
loans in default at the end of the last fiscal year covered by
financial statements filed herewith.
Not applicable, since no Policies have yet been sold.
22. State the substance of the provisions of any indenture or agreement
with respect to limitations on the liabilities of the depositor,
trustee or custodian, or any other party to such indenture or
agreement.
There are no such provisions.
23. Describe any bonding arrangement for officers, directors, partners or
employees of the depositor or principal underwriter of the trust,
including the amount of coverage and the type of bond.
See "Jackson National Life Insurance Company" in the Prospectus in
Exhibit D, incorporated herein by reference.
24. State the substance of any other material provisions of any indenture
or agreement concerning the trust or its securities and a description
of any other material functions or duties of the depositor, trustee or
custodian not stated in Item 10 or Items 14 to 23 inclusive.
See "General Policy Provisions" in the Prospectus in Exhibit D,
incorporated herein by reference.
III. ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
ORGANIZATION AND OPERATIONS OF DEPOSITOR
25. State the form of organization of the depositor of the trust, the name
of the state or other sovereign power under the laws of which the
depositor was organized and the date of organization,
See "Jackson National Life Insurance Company" in the Prospectus in
Exhibit D, incorporated herein by reference.
26. (a) Furnish the following information with respect to all fees
received by the depositor of the trust in connection with the
exercise of any functions or duties concerning securities of
the trust during the period covered by the financial
statements filed herewith: (Chart omitted)
The Company has not received any such fees as yet.
(b) Furnish the following information with respect to any fee or
any participation in fees received by the depositor from any
underlying investment company or any affiliated person or
investment adviser of such company:
(1) the nature of such fee or participation;
(2) the name of the person making payment;
(3) the nature of the services rendered in consideration
for such fee or participation;
(4) the aggregate amount received during the last fiscal
year covered by the financial statements filed
herewith.
The Company has not received any such fees.
27. Describe the general character of the business engaged in by the
depositor including a statement as to any business other than that of
depositor of the trust. If the depositor acts or has acted in any
capacity with respect to any investment company or companies other than
the trust, state the name or names of such company or companies, their
relationship, if any, to the trust, and the nature of the depositor's
activities therewith. If the depositor has ceased to act in such named
capacity, state the date of and circumstances surrounding such
cessation.
See "Jackson National Life Insurance Company" in the Prospectus in
Exhibit D, incorporated herein by reference.
OFFICIALS AND AFFILIATED PERSONS OF DEPOSITOR
28. (a) Furnish as at latest practicable date the following
information with respect to the depositor of the trust, with
respect to each officer, director, or partner of the
depositor, and with respect to each natural person directly or
indirectly owning, controlling or holding with power to vote
five percent or more of the outstanding voting securities of
the depositor.
Items 29 and 30 are incorporated herein by reference.
(b) Furnish a brief statement of the business experience during
the last five years of each officer, director or partner of
the depositor.
See "Officers and Directors of Jackson National" in the
Prospectus in Exhibit D, incorporated herein by reference.
COMPANIES OWNING SECURITIES OF DEPOSITOR
29. Furnish as at latest practicable date the following information with
respect to each company which directly or indirectly owns, controls or
holds with power to vote five percent or more of the outstanding voting
securities of the depositor.
Jackson National is a wholly-owned subsidiary of Prudential plc in
London, England.
CONTROLLING PERSONS
30. Furnish as at latest practicable date the following information with
respect to any person, other than those covered by Items 28, 29 and 42
who directly or indirectly controls the depositor.
Not applicable
COMPENSATION OF OFFICERS AND DIRECTORS OF DEPOSITOR.
COMPENSATION OF OFFICERS OF DEPOSITOR.
31. Furnish the following information with respect to the remuneration for
services paid by the depositor during the last fiscal year covered by
financial statements filed herewith:
(a) Directly to each of the officers or partners of the depositor
directly receiving the three highest amounts of remuneration:
No officer, director or employee has been paid any separate
remuneration by the Company for services with respect to the
Separate Account.
(b) Directly to all officers or partners of the depositor as a
group exclusive of persons whose remuneration is included
under Item 31 (a), stating separately the aggregate amount
paid by the depositor itself and the aggregate amount paid by
all the subsidiaries.
Item 31(a) is incorporated herein by reference.
(c) Indirectly or through subsidiaries to each of the officers or
partners of the depositor.
Item 31(a) is incorporated herein by reference.
COMPENSATION OF DIRECTORS
32. Furnish the following information with respect to the remuneration for
services, exclusive of remuneration reported under Item 31, paid by the
depositor during the last fiscal year covered by financial statements
filed herewith:
(a) The aggregate direct remuneration to directors;
Item 31(a) is incorporated herein by reference.
(b) Indirectly or through subsidiaries to directors.
Item 31(a) is incorporated herein by reference.
COMPENSATION TO EMPLOYEES
33. (a) Furnish the following information with respect to the
aggregate amount of remuneration for services of all employees
of the depositor (exclusive of persons whose remuneration is
reported in Items 31 and 32) who received remuneration in
excess of $10,000 during the last fiscal year covered by
financial statements filed herewith from the depositor and any
of its subsidiaries.
Item 31(a) is incorporated herein by reference.
(b) Furnish the following information with respect to the
remuneration for services paid directly during the last fiscal
year covered by financial statements filed herewith to the
following classes of persons (exclusive of those persons
covered by Item 33(a)): (1) sales managers, branch managers,
district managers and other persons supervising the sale of
registrant's securities; (2) salesmen, sales agents,
canvassers and other persons making solicitations but not in a
supervisory capacity; (3) administrative and clerical
employees; and (4) others (specify). If a person is employed
in more than one capacity, classify according to predominant
type of work.
Item 31(a) is incorporated herein by reference.
COMPENSATION TO OTHER PERSONS
34. Furnish the following information with respect to the aggregate amount
of compensation for services paid any person (exclusive of persons
whose remuneration is reported in Items 31, 32 and 33), whose aggregate
compensation in connection with services rendered with respect to the
trust in all capacities exceeded $10,000 during the last fiscal year
covered by financial statements filed herewith from the depositor and
any of its subsidiaries:
Not applicable, because the Separate Account has not yet commenced
operations.
IV. DISTRIBUTION AND REDEMPTION OF SECURITIES
DISTRIBUTION OF SECURITIES
35. Furnish the names of the states in which sales of the trust's
securities: (a) are currently being made, (b) are presently proposed to
be made, and (c) have been discontinued, indicating by appropriate
letter the status with respect to each state.
No sales of the Policies have been made or are currently being made. It
is presently proposed to sell the Policies in all the states and the
District of Columbia, to the extent that, and at such time as, the
Company obtains necessary regulatory clearance in such states to do so.
36. If sales of the trust's securities have at any time since January 1,
1936 been suspended for more than a month describe briefly the reasons
for such suspension.
Not applicable.
37. (a) Furnish the following information with respect to each
instance where, subsequent to January 1, 1937, any federal or
state governmental officer, agency, or regulatory body denied
authority to distribute securities of the trust, excluding a
denial which was merely a procedural step prior to any
determination by such officer, etc. and which denial was
subsequently rescinded:
(1) name of officer, agency or body;
(2) date of denial;
(3) brief statement of reasons given for denial.
As to (1) through (3), none.
(b) Furnish the following information with regard to each instance
where, subsequent to January 1, 1937, the authority to
distribute securities of the trust has been revoked by any
federal or state governmental officer, agency or regulatory
body:
(1) name of officer, agency or body;
(2) date of revocation;
(3) brief statement of reasons given for revocation.
As to (1) through (3), none.
38. (a) Furnish a general description of the method of distribution of
securities of the trust.
See "Distribution of Policies" in the Prospectus in Exhibit D,
incorporated herein by reference.
(b) State the substance of any current selling agreement between
each principal underwriter and the trust or the depositor,
including a statement as to the inception and termination
dates of the agreement, any renewal and termination
provisions, and any assignment provisions.
The Company will execute a Distribution Agreement with JNLD
whereby JNLD will distribute the Policies on a best efforts
basis. The agreement will be effective on the date stipulated
and will remain effective until terminated by either party
upon not less than 60 days advance written notice and may not
be assigned, except by operation of law.
See Exhibit 1-A(3)(a) and "Distribution of Policies" in the
Prospectus in Exhibit D, incorporated herein by reference.
(c) State the substance of any current agreements or arrangements
of each principal underwriter with dealers, agents, salesmen,
etc. with respect to commissions and overriding commissions,
territories, franchises, qualifications and revocations. If
the trust is the issuer of periodic payment plan certificates,
furnish schedules of commissions and the bases thereof. In
lieu of a statement concerning schedules of commissions, such
schedules of commissions may be filed as Exhibit A(3)(c).
See Exhibits 1-A(3)(b) and (c) and "Distribution of Policies"
in the Prospectus in Exhibit D, incorporated herein by
reference.
INFORMATION CONCERNING PRINCIPAL UNDERWRITER.
39. (a) State the form of organization of each principal
underwriter of securities of the trust, the name of the state
or other sovereign power under the laws of which each
underwriter was organized and the date of organization.
JNLD is a corporation organized under the laws of the State of
Delaware on June 22, 1995.
(b) State whether any principal underwriter currently distributing
securities of the trust is a member of the National
Association of Securities Dealers, Inc.
Not applicable as the Separate Account currently is not
distributing securities. JNLD is registered as a broker-dealer
under the Securities Exchange Act of 1934, and is a member of
the National Association of Securities Dealers, Inc.
40. (a) Furnish the following information with respect to all fees
received by each principal underwriter of the trust from the
sale of securities of the trust and any other functions in
connection therewith exercised by such underwriter in such
capacity or otherwise during the period covered by the
financial statements filed herewith:
Not applicable, since no Policies have yet been sold.
(b) Furnish the following information with respect to any fee or
any participation in fees received by each principal
underwriter from any underlying investment company or any
affiliated person or investment adviser of such company:
(1) the nature of such fee or participation;
(2) the name of the person making payment;
(3) the nature of the services rendered in consideration
for such fee or participation;
(4) the aggregate amount received during the last fiscal
year covered by the financial statements filed
herewith.
The response to Item 40(a) is incorporated herein by
reference. No such fee or any participation in fees
are provided for. The response to Item 13(a) is
incorporated herein by reference.
41. (a) Describe the general character of the business engaged in by
each principal underwriter, including a statement as to any
business other than the distribution of securities of the
trust. If a principal underwriter acts or has acted in any
capacity with respect to any investment company or companies,
other than the trust, state the name or names of such company
or companies, their relationship, if any, to the trust and the
nature of such activities. If a principal underwriter has
ceased to act in such named capacity, state the date of and
circumstances surrounding such cessation.
JNLD is a broker-dealer that intends to act as a distributor
of variable insurance products. JNLD is a wholly-owned
subsidiary of Jackson National.
(b) Furnish as at latest practicable date the address of each
branch office of each principal underwriter currently selling
securities of the trust and furnish the name and residence
address of the person in charge of such office.
Not applicable, since no Policies are currently being sold.
(c) Furnish the number of individual salesmen of each principal
underwriter through whom any of the securities of the trust
were distributed for the last fiscal year of the trust covered
by the financial statements filed herewith and furnish the
aggregate amount of compensation received by such salesmen in
such year.
Not applicable, since no sales of Policies have yet been made.
42. Furnish as at latest practicable date the following information with
respect to each principal underwriter currently distributing securities
of the trust and with respect to each of the officers, directors or
partners of such underwriter.
Not applicable, since no Policies are currently being distributed.
43. Furnish, for the last fiscal year covered by the financial statements
filed herewith, the amount of brokerage commissions received by any
principal underwriter who is a member of a national securities exchange
and who is currently distributing the securities of the trust or
effecting transactions for the trust in the portfolio securities of the
trust.
Not applicable, since no Policies have yet been sold.
OFFERING PRICE OR ACQUISITION VALUATION OF SECURITIES OF THE TRUST
44. (a) Furnish the following information with respect to the method
of valuation used by the trust for purposes of determining the
offering price to the public of securities issued by the trust
or the valuation of shares or interests in the underlying
securities acquired by the holder of a periodic payment plan
certificate:
(1) the source of quotations used to determine the value
of portfolio securities;
Portfolio shares are valued at net asset value, as
supplied to the Company by the Portfolios or their
agents.
(2) whether opening, closing, bid, asked or any other
price is used;
Not applicable.
(3) whether price is as of the day of sale or as of any
other time;
Item 16 is incorporated herein by reference.
(4) a brief description of the methods used by registrant
for determining other assets and liabilities
including accrual for expenses and taxes (including
taxes on unrealized appreciation);
The Separate Account's assets and liabilities (such
as charges against the Separate Account) are valued
in accordance with generally accepted accounting
principles on an accrual basis. With regard to
charges for accrual of an income tax reserve, Item
13(a) is incorporated herein by reference.
(5) other items which registrant adds to the net asset
value in computing offering price of its securities;
Not applicable, for the reasons set forth in Item
44(b), which is incorporated herein by reference.
(6) whether adjustments are made for fractions:
(i) before adding distributor's compensation
(load); and
(ii) after adding distributor's compensation
(load):
Not applicable, because the Separate Account does not
compute per-unit values in the manner presupposed by
this Item and Item 44(b). Appropriate adjustments
will be made for fractions in all computations.
(b) Furnish a specimen schedule showing the components of the
offering price of the trust's securities as at the latest
practicable date.
Since the Separate Account has not issued any Policies, this
item cannot be answered in the way it contemplates. In return
for the Premium paid, the Owners and beneficiaries have
insurance coverage in the amount of the Death Benefit under
the Policy and an interest in the Cash Value of the Policy.
The manner of calculating these benefits, rights and interests
is described in Items 10(c), (d), (e) and (i), which are
incorporated herein by reference. The fees and charges to
which the Policies are subject are described in Item 13, which
is incorporated herein by reference, and the manner of
determining the amount of Premiums under a Policy is described
in Item 44(c), which is incorporated herein by reference.
(c) If there is any variation in the offering price of the trust's
securities to any person or classes of persons other than
underwriters, state the nature and amount of such variation
and indicate the person or classes of persons to whom such
offering is made.
In setting its premium rates, the Company considers actuarial
estimates of death and cash value benefits, terminations,
expenses, investment experience and amounts to be contributed
to the Company's surplus. For additional information as to how
premium rates are set, see Items 13(c) and 13(a), which are
incorporated herein by reference.
45. Furnish the following information with respect to any suspension of the
redemption rights of the securities issued by the trust during the
three fiscal years covered by the financial statements filed herewith:
(a) by whose action redemption rights were suspended;
(b) the number of days' notice given to security holders prior to
suspension of redemption rights;
(c) reason for suspension;
(d) period during which suspension was in effect.
There has been no such suspension.
REDEMPTION VALUATION OF SECURITIES OF THE TRUST.
46. (a) Furnish the following information with respect to the method
of determining the redemption or withdrawal valuation of
securities issued by the trust:
(1) the source of quotations used to determine the value
of portfolio securities;
Item 44(a)(1) is incorporated herein by reference.
(2) whether opening, closing, bid, asked or any other
price is used;
Not applicable.
(3) whether price is as of the day of sale or as of any
other time;
Item 44(a) (3) is incorporated herein by reference.
(4) a brief description of the methods used by registrant
for determining other assets and liabilities
including accrual for expenses and taxes (including
taxes on unrealized appreciation);
Item 44(a)(4) is incorporated herein by reference.
(5) other items which registrant deducts from the net
asset value in computing redemption value of its
securities;
Item 44(a)(5) is incorporated herein by reference.
(6) whether adjustments are made for fractions.
Item 44(a)(6) is incorporated herein by reference.
(b) Furnish a specimen schedule showing the components of the
redemption price to the holders of the trust's securities as
at the latest practicable date.
To the extent that this paragraph is applicable, see the
answers to Items 44(a) and 46(a), which are incorporated
herein by reference.
PURCHASE AND SALE OF INTERESTS IN UNDERLYING SECURITIES FROM
AND TO SECURITY HOLDERS
47. Furnish a statement as to the procedure with respect to the maintenance
of a position in the underlying securities or interests in the
underlying securities, the extent and nature thereof and the person who
maintains such a position. Include a description of the procedure with
respect to the purchase of underlying securities or interests in the
underlying securities from security holders who exercise redemption or
withdrawal rights and the sale of such underlying securities and
interests in the underlying securities to other security holders. State
whether the method of valuation of such underlying securities or
interests in the underlying securities differs from that set forth in
Items 44 and 46. If any item of expenditure included in the
determination of the valuation is not or may not actually be incurred
or expended, explain the nature of such item and who may benefit from
the transaction.
Item 16 is incorporated herein by reference. There is no procedure for
the purchase of underlying securities or interests therein from Owners
who exercise surrender rights.
V. INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
48. Furnish the following information as to each trustee or custodian of
the trust:
(a) Name and principal business address;
(b) Form of organization;
(c) State or other sovereign power under the laws of which the
trustee or custodian was organized;
(d) Name of governmental supervising or examining authority.
Not applicable. The Separate Account has neither trustee nor
custodian.
49. State the basis for the payment of fees or expenses of the trustee or
custodian for services rendered with respect to the trust and its
securities, and the aggregate amount thereof for the last fiscal year.
Indicate the person paying such fees or expenses. If any fees or
expenses are prepaid, state the unearned amount.
Not applicable.
50. State whether the trustee or custodian or any other person has or may
create a lien on the assets of the trust, and if so, give full
particulars, outlining the substance of the provisions of any indenture
or agreement with respect thereto.
No such lien may be created.
VI. INFORMATION CONCERNING INSURANCE OF HOLDERS OF SECURITIES
51. Furnish the following information with respect to the insurance of
holders of securities:
(a) The name and address of the insurance company;
Various insurance benefits are provided under the Policies by
the Company, the address of which is incorporated herein by
reference to Item 2.
(b) The types of policies and whether individual or group
policies;
The Policies are modified single premium variable life
insurance policies and are issued on an individual basis.
(c) The types of risks insured and excluded;
The mortality and expense risk assumed is that the Company's
estimates of longevity and of the expenses incurred over the
lengthy period the Policy may be in effect -- which estimates
are the basis for the level of other charges the Company makes
under the Policy -- will not be correct.
Under certain options for the payment of benefits under the
Policies, the Company assumes the risk that it will be unable
to invest the assets supporting the Policies at a return
sufficient to pay the guaranteed minimum interest rate under
such options and the expenses of administering the Policies
and, in some cases, a risk that beneficiaries under such
options will live longer than anticipated.
(d) The coverage of the policies;
See "Purchasing a Policy and Allocating Premium" in the
Prospectus in Exhibit D, incorporated herein by reference.
(e) The beneficiaries of such policies and the uses to which the
proceeds of policies must be put;
The recipient of the benefits of the insurance undertakings
described in Item 51(c) is either the designated primary
beneficiary, any contingent beneficiaries, or the estate of
the insured(s) as stated in the application for the Policy or
as subsequently modified by the Owner. There is no limitation
on the use of the proceeds.
(f) The terms and manner of cancellation and of reinstatement;
The insurance undertakings described in Item 51 (c) are
integral parts of the Policy and may not be terminated while
the Policy remains in effect, except to the extent set forth
in Items 10(e) and 21(a), which are incorporated herein by
reference.
(g) The method of determining the amount of Payments to be paid by
holders of securities;
See "Purchasing a Policy and Allocation of Premium" in the
Prospectus in Exhibit D, incorporated herein by reference.
(h) The amount of aggregate Payments paid to the insurance company
during the last fiscal year;
Not applicable, since no Policies have yet been sold.
(i) Whether any person other than the insurance company receives
any part of such Payments, the name of each such person and
the amount involved, and the nature of the services rendered
therefor;
Item 13(e) is incorporated herein by reference.
(j) The substance of any other material provisions of any
indenture or agreement of the trust relating to insurance.
None except as disclosed in this registration statement.
VII. POLICY OF REGISTRANT
52. (a) Furnish the substance of the provisions of any indenture or
agreement with respect to the conditions upon which and the
method of selection by which particular portfolio securities
must or may be eliminated from the assets of the trust or must
or may be replaced by other portfolio securities. If an
investment adviser or other person is to be employed in
connection with such selection, elimination or substitution,
state the name of such person, the nature of any affiliation
to the depositor, trustee or custodian, and any principal
underwriter, and the amount of the remuneration to be received
for such services. If any particular person is not designated
in the indenture or agreement, describe briefly the method of
selection of such person.
Items 10(g) and 10(h) are incorporated herein by reference
with regard to the Company's right to substitute any other
investment for shares of any Portfolio of the Funds.
(b) Furnish the following information with respect to each
transaction involving the elimination of any underlying
security during the period covered by the financial statements
filed herewith:
(1) title of security;
(2) date of elimination;
(3) reasons for elimination;
(4) the use of the proceeds from the sale of the
eliminated security;
(5) title of security substituted, if any;
(6) whether depositor, principal underwriter, trustee or
custodian or any affiliated person of the foregoing
were involved in the transaction;
(7) compensation or remuneration received by each such
person directly or indirectly as a result of the
transaction.
Not applicable, since no Policies have yet been sold.
(c) Describe the policy of the trust with respect to the
substitution and elimination of the underlying securities of
the trust with respect to:
(1) the grounds for elimination and substitution;
(2) the type of securities which may be substituted for
any underlying security;
(3) whether the acquisition of such substituted security
or securities would constitute the concentration of
investment in a particular industry or group of
industries or would conform to a policy of
concentration of investment in a particular industry
or group of industries;
(4) whether such substituted securities may be the
securities of any other investment company; and
(5) the substance of the provisions of any indenture or
agreement which authorize or restrict the policy of
the registrant in this regard.
Items 10(g) and 10(h) are incorporated herein by reference.
(d) Furnish a description of any policy (exclusive of policies
covered by paragraphs (a) and (b) herein) of the trust which
is deemed a matter of fundamental policy and which is elected
to be treated as such.
None.
REGULATED INVESTMENT COMPANY
53. (a) State the taxable status of the trust.
See "Taxation of Jackson National and the Separate Account" in
the Prospectus in Exhibit D, incorporated herein by reference.
(b) State whether the trust qualified for the last taxable year as
a regulated investment company as defined in Section 851 of
the Internal Revenue Code of 1954, and state its present
intention with respect to such qualification during the
current taxable year.
The Separate Account has not and does not intend to so
qualify.
VIII. FINANCIAL AND STATISTICAL INFORMATION
54. If the trust is not the issuer of periodic payment plan certificates,
furnish the following information with respect to each class or series
of its securities:
Not applicable.
55. If the trust is the issuer of periodic payment plan certificates, a
transcript of a hypothetical account shall be filed in approximately
the following form on the basis of the certificate calling for the
smallest amount of payments. The schedule shall cover a certificate of
the type currently being sold assuming that such certificate had been
sold at a date approximately ten years prior to the date of
registration or at the approximate date of organization of the trust.
Not applicable. The Policies are life insurance policies and do not
operate as the usual periodic payment plan certificate. Moreover, no
Policies have yet been sold and the Separate Account has no operating
history.
56. If the trust is the issuer of periodic payment plan certificates,
furnish by years for the period covered by the financial statements
filed herewith in respect of certificates sold during such period, the
following information for each fully paid type of each installment
payment type of periodic payment plan certificate being issued by the
trust.
Not applicable, since no Policies have yet been sold.
57. If the trust is the issuer of periodic payment plan certificates,
furnish by years for the period covered by the financial statements
filed herewith the following information for each installment payment
type of periodic payment plan certificate currently being issued by the
trust.
Not applicable, since no Policies have yet been sold.
58. If the trust is the issuer of periodic payment plan certificates,
furnish the following information for each installment payment type of
periodic payment plan certificate outstanding as at the latest
practicable date.
Not applicable, since no Policies have yet been sold.
59. Financial Statements:
Financial Statements of the Trust:
No financial statements are filed for the Separate Account
because it has not yet commenced operations, has no assets nor
liabilities, and has received no income or incurred any
expense.
Financial Statements of the Depositor:
"Financial Statements" in the Prospectus included in Exhibit D
are incorporated herein by reference.
IX. EXHIBITS
Except as otherwise noted all exhibits are incorporated by reference to the
Registration Statement filed on Form S-6, of Jackson National Life Separate
Account IV, filed contemporaneously herewith.
Exhibit Number Title
1-A(1) Resolution of Jackson National establishing Jackson National
Life Separate Account IV*
1-A(2) Not Applicable
1-A(3)(a) Form of Distribution Agreement*
1-A(3)(b) Form of Broker-Dealer and General Agent Sales Agreement*
1-A(3)(c) Schedules of Sales Commissions**
1-A(4) Not Applicable
1-A(5)(a) Specimen Policy*
1-A(5)(b) Specimen Convalescent Care Benefits Rider*
1-A(5)(c) Specimen Extension of Convalescent Care Benefits Rider*
1-A(5)(d) Specimen Extension of Convalescent Care Benefits Rider with
Automatic Increasing Benefits*
1-A(5)(e) Specimen Guarantee Enhancement Rider*
1-A(6)(a) Articles of Incorporation of Jackson National*
1-A(6)(b) By-laws of Jackson National*
1-A(7) Not Applicable
1-A(8)(a) Participation Agreements**
1-A(9) Not Applicable
1-A(10)(a) Specimen Application for Life Insurance*
1-A(10)(b) Specimen Application for Life Insurance*
1-A(10)(c) Specimen Supplemental Application for Variable Life Insurance*
B Not Applicable
C Not Applicable
D Prospectus included in Form S-6 Registration Statement of
Jackson National Life Separate Account IV (File No.
333-36506), filed contemporaneously herewith***
- --------------------
*Incorporated by reference to Form S-6 Registration Statement of Jackson
National Life Separate Account IV (File No. 333-36506)(the "Form S-6
Registration Statement"), filed contemporaneously herewith.
**To be filed as an Exhibit for a pre-effective amendment to the Form S-6
Registration Statement, and incorporated by reference herein.
***Attached hereto.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Investment Company Act of 1940, the
depositor of the registrant has caused this registration statement to be duly
signed on behalf of the registrant in the City of Lansing and the State of
Michigan on the 18th day of May, 2000.
JACKSON NATIONAL LIFE SEPARATE ACCOUNT IV (Registrant)
By: JACKSON NATIONAL LIFE INSURANCE COMPANY (Depositor)
BY: /s/ Andrew B. Hopping
-------------------------------------
Andrew B. Hopping
Executive Vice President and Chief Financial Officer
Attest: /s/ Thomas J. Meyer
-------------------------------
Thomas J. Meyer
Senior Vice President, General Counsel & Secretary
<PAGE>
EXHIBIT INDEX
EXHIBIT TITLE
D Prospectus included in Form S-6 Registration Statement
of Jackson National Life Separate Account IV
(File No. 333-36506)
MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE POLICIES
(SINGLE LIFE AND SURVIVORSHIP)
ISSUED BY
JACKSON NATIONAL LIFE INSURANCE COMPANY
IN CONNECTION WITH ITS
JACKSON NATIONAL LIFE SEPARATE ACCOUNT IV
5901 Executive Drive
Lansing, Michigan 48911
JACKSON NATIONAL LIFE SERVICE CENTER
P.O. BOX 378002
DENVER, COLORADO 80237-8002
1-800-766-4683
IMG SERVICE CENTER
P.O. BOX 30386
LANSING, MICHIGAN 48909-7886
1-800-777-7779
Jackson National Life Insurance Company is offering the modified single premium
variable life insurance policies described in this prospectus. The policies
provide insurance coverage on the life of one Insured (Single Life Policy) and
on the lives of two Insureds (Survivorship Policy). The description of the
"policy" or "policies" in this prospectus is fully applicable to both the Single
Life Policy and the Survivorship Policy. Please read this prospectus carefully
before investing and keep it for future reference.
The policies currently offer 28 allocation options, including 27 variable
investment options, each of which is a investment division of Jackson National
Life Separate Account IV, and our Guaranteed Account. Each investment division
invests exclusively in shares of one of the portfolios of JNL(R) Series Trust.
We do not guarantee a minimum Policy Value on amounts allocated to the
investment divisions and, therefore, the policies do not have a guaranteed
minimum Policy Value. The portion of your Policy Value in the Separate Account
will vary depending on the investment performance of the portfolios underlying
the investment divisions to which you allocate your premium. You bear the entire
investment risk on amounts allocated to the investment divisions. The investment
policies and risks of each portfolio are described in the accompanying
prospectuses for the JNL(R) Series Trust and its portfolios. The Policy Value
will also reflect premiums paid, amounts withdrawn, and cost of insurance and
other charges.
VARIABLE LIFE INSURANCE POLICIES INVOLVE RISKS, INCLUDING POSSIBLE LOSS OF
PRINCIPAL. THEY ARE NOT DEPOSITS OF ANY BANK OR INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.
IT MAY NOT BE ADVANTAGEOUS FOR YOU TO PURCHASE VARIABLE LIFE INSURANCE TO
REPLACE YOUR EXISTING INSURANCE COVERAGE OR IF YOU ALREADY OWN A VARIABLE LIFE
INSURANCE POLICY.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT BE LAWFULLY MADE. JACKSON NATIONAL DOES NOT AUTHORIZE ANY
INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS
PROSPECTUS OTHER THAN AS BASED IN THIS PROSPECTUS.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE
SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE DATE OF THIS PROSPECTUS IS __________, 2000.
<PAGE>
TABLE OF CONTENTS
GLOSSARY OF TERMS...........................................................
YOUR POLICY -- QUESTIONS AND ANSWERS........................................
FEES AND EXPENSES...........................................................
PURCHASING A POLICY AND ALLOCATING PREMIUM..................................
Applying for a Policy....................................................
Premium..................................................................
Allocation of Premium....................................................
Policy Value.............................................................
Accumulation Unit Value..................................................
Transfer of Policy Value.................................................
Transfers Authorized by Telephone........................................
Dollar Cost Averaging and Other Periodic Transfers.......................
Asset Rebalancing........................................................
THE SEPARATE ACCOUNT........................................................
The Portfolios..............................................................
Voting Privileges..........................................................
Additions, Deletions, and Substitutions of Securities.......................
THE GUARANTEED ACCOUNT......................................................
POLICY BENEFITS AND RIGHTS..................................................
Death Benefit............................................................
Death Benefit Payment Options............................................
Optional Insurance Benefits..............................................
Policy Loans.............................................................
Withdrawals..............................................................
Status of Policy at Attained Age 100.....................................
Termination and Grace Period.............................................
Reinstatement............................................................
Right to Examine the Policy..............................................
Postponement of Payment..................................................
CHARGES AND DEDUCTIONS......................................................
Daily Deduction..........................................................
Cost of Insurance Charge.................................................
Policy Maintenance Charge................................................
Withdrawal Charge........................................................
Transfer Charge..........................................................
Illustration Charge......................................................
Additional Policy Charges................................................
Portfolio Expenses.......................................................
Special Provisions for Group or Sponsored Arrangements...................
GENERAL POLICY PROVISIONS...................................................
Statements to Owners.....................................................
Limit on Right to Contest................................................
Suicide..................................................................
Misstatement as to Age and Sex...........................................
Beneficiary..............................................................
Assignment...............................................................
Creditors' Claims........................................................
2
<PAGE>
Dividends................................................................
Notice and Elections.....................................................
Modification.............................................................
Survivorship Policy......................................................
FEDERAL TAX CONSIDERATIONS..................................................
Taxation of Jackson National and the Separate Account....................
Tax Status of the Policies...............................................
Diversification Requirements.........................................
Owner Control........................................................
Tax Treatment of Life Insurance Death Benefit Proceeds...................
Tax Deferral During Accumulation Period..................................
Policies Which Are MECs..............................................
Policies Which Are Not MECs..........................................
Survivorship Policies....................................................
Treatment at Attained Age 100............................................
Actions to Ensure Compliance with the Tax Law............................
Federal Income Tax Withholding...........................................
Tax Advice...............................................................
DESCRIPTION OF JACKSON NATIONAL AND THE SEPARATE ACCOUNT....................
Jackson National Life Insurance Company..................................
Officers and Directors of Jackson National...............................
The Separate Account.....................................................
Safekeeping of the Separate Account's Assets.............................
State Regulation of Jackson National.....................................
DISTRIBUTION OF POLICIES....................................................
LEGAL PROCEEDINGS...........................................................
LEGAL MATTERS...............................................................
REGISTRATION STATEMENT......................................................
EXPERTS.....................................................................
FINANCIAL STATEMENTS........................................................
APPENDIX....................................................................
3
<PAGE>
GLOSSARY OF TERMS
We have capitalized certain terms used in this prospectus. To help you
understand these terms, we have defined them in this section.
ACCUMULATION UNIT - An accounting unit of measurement that we use to calculate
the value in a investment division.
ALLOCATION DATE - The date we allocate premium from the money market division to
the divisions elected on the application (or the most recent allocation
instructions provided by the contract owner.
ATTAINED AGE - An Insured's rated age on the Policy Date plus the number of full
years since the Policy Date.
CODE - Internal Revenue Code of 1986, as amended.
DAILY DEDUCTION - The amount deducted on a daily basis when calculating the
value of an Accumulation Unit. It represents the mortality and expense risk
charge, administrative charge, and tax charge.
DEATH BENEFIT PROCEEDS - The amount we will pay to the beneficiary(ies) under
the policy upon the death of the Insured in the case of a Single Life Policy and
the death of the last surviving Insured in the case of a Survivorship Policy.
DEATH BENEFIT - The greater of the initial death benefit as shown in your
policy, reduced by any partial withdrawal, plus any increase in coverage due to
additional premium; or the Minimum Death Benefit; less any Debt, and less any
overdue cost of insurance charge and policy maintenance charge if the Insured
dies during the Grace Period.
DEBT - The sum of all unpaid policy loans and accrued interest.
EARNINGS - Your Policy Value reduced by Remaining Premium.
GUARANTEED ACCOUNT - An allocation option under the policy that earns an
annually declared rate of interest of not less than 3%. Assets allocated to the
Guaranteed Account are part of our general account.
GRACE PERIOD - The 61-day period during which your policy remains in force after
we send you written notice that your policy will lapse if you do not make an
additional payment.
INSURED - A person whose life is insured under the policy. Single Life Policies
have one Insured and Survivorship Policies have two Insureds.
ISSUE DATE - The date Jackson National issued your policy and from which we
measure contestability periods. It may be later than the Policy Date.
LOAN ACCOUNT - An account established as part of our general account for amounts
transferred from the investment divisions and/or the Guaranteed Account as
security for your policy loans.
MINIMUM DEATH BENEFIT - Your Policy Value multiplied by the death benefit
percentage applicable to the Attained Age as shown in the policy.
MONTHLY ANNIVERSARY - The same day in each month as the Policy Date. For those
months not having such a day, it is the last day of that month.
OWNER - The person(s) having the privileges of ownership defined in the policy.
The Owner(s) may or may not be the same person(s) as the Insured(s). If your
policy is issued pursuant to a retirement plan, your ownership privileges may be
modified by the plan.
POLICY ANNIVERSARY - An annual anniversary of the Policy Date.
4
<PAGE>
POLICY DATE - The effective date of insurance coverage under your policy. It is
used to determine Policy Anniversaries, Policy Years, and Monthly Anniversaries.
POLICY VALUE - The sum of your values in the Separate Account, the Guaranteed
Account, and the Loan Account.
POLICY YEAR - Each twelve-month period beginning on the Policy Date or any
Policy Anniversary.
REMAINING PREMIUM - The total premium paid into the policy reduced by
withdrawals of premiums.
RIGHT TO EXAMINE PERIOD - The period of time starting on the Issue Date during
which you can cancel your policy. During the Right to Examine Period, we will
allocate your premium to the Money Market Investment division. If you do not
cancel your policy during the Right to Examine Period, we will reallocate your
premium according to your instructions on the allocation date .
SEPARATE ACCOUNT - Jackson National Life Separate Account IV, the segregated
asset account of Jackson National that funds the policies.
SERVICE CENTER - Jackson National Life Service Center, P.O. Box 378002, Denver,
Colorado 80237-8002, 1-800-766-4683 or IMG Service Center, P.O. Box 30386,
Lansing, Michigan 48909-7886, 1-800-777-7779. You can send express mail to the
Jackson National Life Service Center at 8055 E. Tufts Avenue, 2nd Floor, Denver,
Colorado 80237 or the IMG Service Center at 5901 Executive Drive, Lansing,
Michigan 48911.
WITHDRAWAL VALUE - The Policy Value less any applicable withdrawal charge, taxes
payable, outstanding policy maintenance charge, and any Debt.
VALUATION DAY - Each day that we and the New York Stock Exchange are open for
business.
VALUATION PERIOD - The period of time over which we determine the change in the
value of the investment divisions. Each Valuation Period begins at the close of
normal trading on the New York Stock Exchange (currently 4:00 p.m. Eastern time)
on each Valuation Day and ends at the close of the New York Stock Exchange on
the next Valuation Day.
5
<PAGE>
YOUR POLICY - QUESTIONS AND ANSWERS
These are answers to questions that you may have about some of the most
important features of your policy. The policy is described more fully in the
rest of this prospectus. Please read this prospectus carefully. Unless otherwise
noted, the description of the policy contained in this prospectus assumes that
the policy is in force, that there is no Debt, and that current federal tax laws
apply.
1. WHAT IS A MODIFIED SINGLE PREMIUM VARIABLE LIFE INSURANCE POLICY?
The policy permits the Owner to pay a significant initial premium and, subject
to restrictions, additional premium. The policy has a Death Benefit, Policy
Value, and other features similar to life insurance policies providing fixed
benefits. It is a "variable" policy because the Policy Value and the Death
Benefit may vary according to the investment performance of the investment
divisions to which you allocate your premium and Policy Value. The Policy Value
is not guaranteed. The policy provides you with the opportunity to take
advantage of any increase in your Policy Value, but you also bear the risk of
any decrease.
2. WHO MAY PURCHASE A POLICY?
We will issue policies on the lives of prospective Insureds that meet our
simplified and/or full underwriting standards. You may purchase a Single Life
Policy to provide insurance coverage on the life of one Insured or a
Survivorship Policy to provide insurance coverage on the lives of two Insureds.
3. WHAT IS THE DEATH BENEFIT?
Under a Single Life Policy, we will pay the Death Benefit to the beneficiary
upon the death of the Insured. Under a Survivorship Policy, we will pay the
Death Benefit to the beneficiary upon the death of the last surviving Insured.
The Death Benefit is equal to the greater of:
(1) the initial death benefit shown in your policy, reduced by any partial
withdrawal, plus any increase in coverage due to additional premium; or
(2) the Minimum Death Benefit;
less any Debt, and less any overdue cost of insurance charge and policy
maintenance charge if the Insured dies during the Grace Period. Subject to
certain requirements, you can increase the Death Benefit by paying additional
premium. You can also decrease coverage under certain circumstances. We will
refuse to decrease coverage if such decrease would cause the policy to lose its
status as life insurance under the Code. A partial withdrawal will cause the
Death Benefit to decrease in direct proportion to the reduction in Policy Value.
As with a decrease in insurance coverage, we will not permit a partial
withdrawal if the decrease in Death Benefit would cause the policy to lose its
status as life insurance under the Code.
4. HOW IS MY POLICY VALUE DETERMINED?
At your request, your premium is allocated to one or more of the investment
divisions and/or allocated to the Guaranteed Account. Your Policy Value is the
sum of the values of your interests in the Separate Account, the Guaranteed
Account, and the Loan Account. Your Policy Value will depend on the investment
performance of the investment divisions and the amount of interest we credit to
the Guaranteed Account and the Loan Account, as well as the premium paid, amount
withdrawn, and charges assessed. We do not guarantee a minimum Policy Value on
the portion of your premium allocated to the Separate Account.
5. WHAT IS THE PREMIUM FOR THIS POLICY?
Your initial premium must be at least $10,000. If you choose, you may pay
additional premium of at least $1,000 each, subject to the restrictions
described in this prospectus. We may require you to complete a new application
and provide evidence of insurability if an increase in the Death Benefit would
result from additional premium. We will refuse to accept any additional premium
that would cause the policy to lose its status as life insurance under the Code.
However, we will not require evidence of insurability for one additional premium
of your choice, even if it would increase the Death Benefit of your policy, as
long as the additional premium does not exceed the lesser of $5,000 or 10% of
your initial premium.
6
<PAGE>
6. WHEN IS MY POLICY EFFECTIVE?
Your policy is effective on the Policy Date. If your application is approved,
your policy will be effective and your life insurance coverage will begin on the
date that we received your application and initial premium. If you did not
submit your initial premium with your application, we will require you to pay
your initial premium at or before issuance in order for the policy to become
effective. Insurance coverage will not begin and the policy will not be issued
until we receive your premium. We will begin to deduct the policy charges as of
the Policy Date.
The Issue Date marks the end of underwriting and the beginning of the Right to
Examine Period. When we issue your policy, your initial premium will be
allocated to the Money Market Investment division until the Right to Examine
Period ends. At that time, we will allocate the amount in the Money Market
Investment division to the other options according to your most recent
instructions.
While your application is in underwriting, if you have paid your initial
premium, we may provide you with temporary life insurance coverage in accordance
with the terms of our conditional receipt.
If we reject your application, we will not issue you a policy. We will return
any premium you paid, adding interest if, as and at the rate required in your
state. We will not subtract any policy charges from the amount we refund to you.
7. HOW IS MY PREMIUM ALLOCATED?
When you apply for the policy, you specify in your application how to allocate
your premium among the investment divisions and the Guaranteed Account. You must
use whole number percentages and the total allocation must equal 100%. The
minimum allocation percentage per allocation option is 1%. We will allocate any
additional premium according to those percentages until you give us new written
instructions. You may allocate your premium and Policy Value to up to 21
allocation options at any one time. In the future, we may change these limits.
We will temporarily allocate your initial premium to the Money Market Investment
division on the Issue Date. We will reallocate the amount in the Money Market
Investment division among the investment divisions and the Guaranteed Account,
in accordance with your instructions, at the end of theallocation date. As a
general rule, any additional premium will be allocated to the investment
divisions and the Guaranteed Account as of the date your premium is received at
our Service Center.
You may transfer Policy Value among the investment divisions and the Guaranteed
Account by writing to us or calling the service center listed on the front page.
You may not make any transfer that would cause your Policy Value to be allocated
to more than 21 allocation options at any one time. While you may transfer
amounts from the Guaranteed Account, certain restrictions apply. For more
information, see "Transfer of Policy Value" and "Transfers Authorized by
Telephone."
You may also use our dollar cost averaging program [or our asset rebalancing
program. Under the dollar cost averaging program, amounts are automatically
transferred to the investment divisions at regular intervals from the allocation
option of your choice. For more information, see "Dollar Cost Averaging." Under
the asset rebalancing program, you can periodically adjust the percentage of
your Policy Value allocated to each investment division to maintain a pre-set
level. Investment results will shift the balance of your Policy Value
allocations. If you elect asset rebalancing, we automatically transfer your
Policy Value according to the specified percentages at the frequency you
specify. For more information, see "Asset Rebalancing."
7
<PAGE>
8. WHAT ARE THE ALLOCATION OPTIONS UNDER THE POLICY?
You can allocate and reallocate your Policy Value among the investment divisions
of the Separate Account and the Guaranteed Account. The Guaranteed Account earns
a guaranteed minimum annual interest rate of 3%. Each investment division
invests in a single portfolio. The policy currently offers the following
portfolios as underlying investments:
JNL/Alger Growth Series
JNL/Alliance Growth Series
JNL/Eagle Core Equity Series
JNL/Eagle Small Cap Equity Series
JNL/JP Morgan Enhanced S&P 500 Index Series
JNL/Janus Aggressive Growth Series
JNL/Janus Balanced Series
JNL/Janus Capital Growth Series
JNL/Janus Global Equities Series
JNL/Putnam Growth Series
JNL/Putnam International Equity Series
JNL/Putnam Mid-Cap Growth Series
JNL/Putnam Value Equity Series
JNL/S&P Conservative Growth I Series
JNL/S&P Moderate Growth I Series
JNL/S&P Aggressive Growth I Series
JNL/S&P Very Aggressive Growth I Series
JNL/S&P Equity Growth I Series
JNL/S&P Equity Aggressive Growth I Series
PPM America/JNL Balanced Series
PPM America/JNL High Yield Bond Series
PPM America/JNL Money Market Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL U.S. Government and Quality Bond Series
T. Rowe Price/JNL Established Growth Series
T. Rowe Price/JNL Mid-Cap Growth Series
T. Rowe Price/JNL Value Series
Each portfolio holds its assets separately from the assets of the other
portfolios. Each portfolio has distinct investment objectives and policies,
which are described briefly in this prospectus and in more detail in the
accompanying prospectuses for the portfolios.
9. MAY I TAKE OUT A POLICY LOAN?
Yes, you may borrow moneyafter your allocation date. You may borrow up to 90% of
the Withdrawal Value of your policy. We offer two types of loans - preferred
loans are loans against Earnings, while all other loans are regular loans. In
most instances policy loans are treated as distributions for federal tax
purposes. Therefore, you may incur tax liabilities if you take out a policy
loan. For more information, see "Policy Loans" and "Policies Which Are MECs."
10. WHAT CHARGES ARE DEDUCTED FROM MY POLICY VALUE?
The mortality and expense risk charge, administrative charge, and tax charge are
together referred to as the Daily Deduction and are deducted from the Unit
Values of the Investment Divisions beginning on the Policy Date. We apply the
Daily Deduction in calculating the value of Accumulation Units of each
investment division to compensate Jackson National for its expenses incurred and
certain risks assumed under the policy. The mortality and expense charge is
calculated at an annual rate equal to .90% during Policy Years 1-10 and .80%
thereafter. We deduct the administrative charge from the investment divisions at
an annual rate equal to .30% during Policy Years 1-10 and .15% thereafter. We
deduct the tax charge from the investment divisions at an annual rate equal to
.40% during Policy Years 1-10.
8
<PAGE>
We deduct the cost of insurance charge applicable to your policy from the Policy
Value on the Issue Date and on each Monthly Anniversary following the Issue
Date. If the Monthly Anniversary date falls on either the 29th, 30th or 31st of
the month, the cost of insurance charge will be taken on the last business day
in which we don't have these dates in the month. The charge is taken from the
investment divisions and the Guaranteed Account on a proportional basis.
If your Policy Value is less than $50,000 on a Policy Anniversary, we will
deduct a policy maintenance charge of $35 from your Policy Value on that Policy
Anniversary. The charge is taken from the investment divisions and the
Guaranteed Account on a proportional basis. If you make a full withdrawal on a
date other than the Policy Anniversary, we will deduct any applicable policy
maintenance charge from that amount.
We impose a withdrawal charge on certain withdrawals of your Policy Value to
cover a portion of the premium taxes we incur on your behalf and a portion of
the sales expenses we incur in distributing the policies. These sales expenses
include agents' commissions, advertising, and the printing of prospectuses. If
you make a withdrawal within 9 twelve-month periods of paying a premium (each
twelve-month period is referred to as a "premium year"), we may assess a
withdrawal charge as a percentage of premium withdrawn as shown below:
- ------------------ --- -- --- --- --- --- --- -- --- ----------
Premium Year 1 2 3 4 5 6 7 8 9 Thereafter
- ------------------ --- -- --- --- --- --- --- -- --- ----------
Withdrawal Charge 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
- ------------------ --- -- --- --- --- --- --- -- --- ----------
The withdrawal charge does not apply after nine premium years. You may make
certain withdrawals free of any withdrawal charge each Policy Year.
You may make 15 transfers free of charge in any Policy Year. Thereafter, we will
deduct a charge of $25 per transfer from the transferred amount before
allocating it to the allocation option(s) you have requested.
We may charge a fee of up to $25 for each additional illustrationyou request
(after the first request) in a Policy Year.
We do not currently assess a charge for federal, state, or other taxes that may
be attributable to the operations of the Separate Account, but we reserve the
right to do so in the future
The charges assessed under the policies are summarized in the table called
"Policy Charges and Deductions" and described in more detail in "Charges and
Deductions."
In addition to the charges under the policies, each portfolio deducts amounts
from its assets to pay its management fees and other expenses. The prospectuses
for the portfolios describe these charges and expenses in more detail. WE MAY
RECEIVE COMPENSATION FROM THE INVESTMENT ADVISERS OR ADMINISTRATORS OF THE
PORTFOLIOS. SUCH COMPENSATION WILL BE CONSISTENT WITH THE SERVICES WE PROVIDE OR
THE COST SAVINGS RESULTING FROM THE ARRANGEMENT AND THEREFORE MAY DIFFER FROM
PORTFOLIO TO PORTFOLIO.
11. DO I HAVE ACCESS TO THE VALUE OF MY POLICY?
The value of your policy is available to you through loans and withdrawals. The
maximum amount of any loan taken is 90% of your Withdrawal Value as of the date
we grant the loan. You may also withdraw all or part of the Withdrawal Value of
your policy. Upon a full withdrawal, life insurance coverage under your policy
will end. The minimum amount of a partial withdrawal is $500. If your Policy
Value is less than $500 at the time of your request, we will treat your request
as a request for a full withdrawal. We may waive or change this limit. For more
information, see "Withdrawals."
12. WHAT ARE THE TAX CONSEQUENCES OF BUYING THIS POLICY?
Your policy is structured to meet the definition of life insurance under the
Code. We may need to limit the amount of premium you pay under the policy to
ensure that your policy continues to meet that definition.
In most circumstances, your policy will be considered a "modified endowment
contract," which is a form of life insurance contract under the Code. Special
rules govern the tax treatment of modified endowment contracts. Under current
tax law, death benefit payments under modified endowment contracts, like death
benefit payments under other life insurance contracts, generally are excluded
from the gross income of the beneficiary. Withdrawals and policy loans, however,
are treated differently. Amounts withdrawn and policy loans are treated first as
income, to the extent of any gain, and then as a return of premium. The income
portion of the distribution is includable in your taxable income. Also, an
additional ten percent penalty tax is generally imposed on the taxable portion
of amounts received before age 59 1/2. For more information on the tax treatment
of the policy, see "Federal Tax Considerations" and consult your tax adviser.
9
<PAGE>
13. CAN I RETURN THIS POLICY AFTER IT HAS BEEN ISSUED?
In most states, you may cancel your policy by returning it to us within ten days
after you receive it. In certain states, the Right to Examine Period may be
longer. If you return your policy during the Right to Examine Period, the policy
terminates and we will refund your premium, less any outstanding policy loans
and any partial withdrawal.
14. WHEN DOES COVERAGE UNDER THE POLICY END?
Unless you make a full withdrawal at an earlier date, your policy will remain in
force until a lapse occurs at the end of the Grace Period or we pay the Death
Benefit under the policy.
With respect to lapse, the policy will enter a Grace Period if the Withdrawal
Value of your policy is $0 or less, or, upon a failure to pay loan interest, the
Debt equals or exceeds the Policy Value less any applicable withdrawal charge in
effect at that time. The policy will terminate at the end of the Grace Period
unless you pay an amount sufficient to keep the policy in force. That amount is
the minimum amount that will pay at least two months of the cost of insurance
charge and any policy maintenance charge due before the end of the Grace Period.
If we do not receive that amount by the end of the Grace Period, the policy will
lapse without value and coverage under the policy will end.
15. CAN I GET AN ILLUSTRATION TO HELP ME UNDERSTAND HOW POLICY VALUES CHANGE
WITH INVESTMENT EXPERIENCE?
At your request we will provide you with a free personalized illustration
explaining future benefits under a policy. We reserve the right to charge a fee
of up to $25 for each additional illustration in any Policy Year. The
illustration will be personalized to reflect the Insured(s)' age, sex,
underwriting classification and proposed initial premium. The illustrated Policy
Value, Withdrawal Value, and Death Benefit will be based on certain hypothetical
assumed rates of return for the Separate Account. Your actual investment
experience will differ and as a result the actual values under your policy at
any time may be higher or lower than those illustrated. The personalized
illustrations follow the methodology and format of the hypothetical
illustrations that we filed with the Securities and Exchange Commission in the
registration statement.
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<PAGE>
FEES AND EXPENSES
The following tables are designed to help you understand the fees and expenses
that you bear, directly or indirectly, as an Owner. The first table describes
the policy charges and deductions you bear directly under the policy. The second
table describes the fees and expenses of the portfolios that you bear indirectly
when you purchase a policy. It shows historical expenses of the portfolios as a
percentage of net assets after fee waivers and expense reimbursements, if
applicable, for the year ended December 31, 1999, unless otherwise indicated.
POLICY CHARGES AND DEDUCTIONS
Transaction Charges
Withdrawal Charge 9% of premium declining to 0% of premium(1) Transfer
Charge $25 per transfer in excess of 15 each Policy Year Illustration
Charge $25 per illustration in excess of 1 each Policy Year
Policy Value Charges(2)
Policy Maintenance Charge(3) $35 annually deducted on each Policy
Anniversary
Single Life Cost of Current Guaranteed
Insurance Charge (4) Ranges per month from $0.1443 per $1,000
net amount at risk to $83.33 per $1,000
net amount at risk(5)
Survivorship Cost of Current Guaranteed
Insurance Charge (4) Ranges per month from $0.0002167 per
$1,000 net amount at risk to $83.33 per
$1,000 net amount at risk(5)
Separate Account Charges(6)
Mortality and Expense Charge .90% annually during Policy Years
1-10 and .80% annually thereafter
Administrative Charge .30% annually during Policy Years 1-10
and .15% annually thereafter
Tax Charge .40% annually during Policy Years
1-10
(1) The withdrawal charge declines from 9% of premium during the first
twelve-month period after you pay a premium to 0% in the tenth twelve-month
period following a premium payment. This charge only applies to premium
withdrawn, not to withdrawals of Earnings or of the free withdrawal amount.
Each Policy Year an amount of up to the greater of 10% of any Remaining
Premium paid as of the Valuation Day that the request for withdrawal is
received, less any previous withdrawals taken during that Policy Year, or
100% of Earnings may be withdrawn without incurring a withdrawal charge.
Withdrawals during the Policy Year in excess of this amount may be subject
to a withdrawal charge. The amount available for a free withdrawal is not
cumulative and expires at the end of each Policy Year.
(2) These charges are deducted from the investment divisions and the Guaranteed
Account on a proportional basis.
(3) The policy maintenance charge is currently waived for policies with $50,000
or more of Policy Value.
(4) The current cost of insurance charge will never exceed the guaranteed cost
of insurance charge shown in the policy. The guaranteed cost of insurance
charge is based on Attained Age in the case of a Single Life Policy and
Policy Year in the case of a Survivorship Policy, as well as sex, smoking
status of the Insured(s) and rating age.
(5) The net amount at risk is the difference between the Death Benefit divided
by ______ and the Policy Value.
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(6) These charges are deducted on a daily basis, reflected in the value of
Accumulation Units for the investment divisions, and shown as an annualized
percentage of average net assets of the Separate Account.
PORTFOLIO EXPENSES
AFTER FEE WAIVERS AND EXPENSE REIMBURSEMENTS
<TABLE>
<CAPTION>
Management Other Total Annual Portfolio
Fees Expenses Expenses
<S> <C> <C> <C>
JNL/Alger Growth Series 1.07% 0% 1.07%
JNL/Alliance Growth Series .88% 0% .88%
JNL/Eagle Core Equity Series .99% 0% .99%
JNL/Eagle Small Cap Equity Series 1.05% 0% 1.05%
JNL/J.P. Morgan Enhanced S&P 500 Index Series .90% 0% .90%
JNL/Janus Aggressive Growth Series 1.01% 0% 1.01%
JNL/Janus Balanced Series 1.05% 0% 1.05%
JNL/Janus Capital Growth Series 1.03% 0% 1.03%
JNL/Putnam Growth Series .97% 0% .97%
JNL/Putnam International Equity Series 1.18% 0% 1.18%
JNL/Putnam Midcap Growth Series 1.05% 0% 1.05%
JNL/S&P Conservative Growth Series I* .20% 0% .20%
JNL/S&P Moderate Growth Series I* .20% 0% .20%
JNL/S&P Aggressive Growth Series I* .20% 0% .20%
JNL/S&P Very Aggressive Growth Series I* .20% 0% .20%
JNL/S&P Equity Growth Series I* .20% 0% .20%
JNL/S&P Equity Aggressive Growth Series I* .20% 0% .20%
PPM America/JNL Balanced Series .82% 0% .82%
PPM America/JNL High Yield Bond Series .82% 0% .82%
PPM America/JNL Money Market Series .70% 0% .70%
Salomon Brothers/JNL Global Bond Series .95% 0% .95%
Salomon Brothers/JNL U.S. Government & Quality Bond Series .80% 0% .80%
T. Rowe Price/JNL Established Growth Series .93% 0% .93%
T. Rowe Price/JNL Mid-Cap Growth Series 1.03% 0% 1.03%
T. Rowe Price/JNL Value Series 1.00% 0% 1.00%
</TABLE>
Certain Series pay Jackson National Financial Services, LLC, the adviser, an
Administrative Fee of .10% for certain services provided to the JNL Series
Trust. The JNL/S&P Series do not pay an Administrative Fee. The Total Series
Annual Expenses reflect the inclusion of the Administrative Fee.
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<PAGE>
* Underlying Series Expenses. The expenses shown above are the annual operating
expenses for the JNL/S&P Series. Because the JNL/S&P Series invest in other
Series of the JNL Series Trust, the JNL/S&P Series will indirectly bear their
pro rata share of fees and expenses of the underlying Series in addition to the
expenses shown.
The total annual operating expenses for each JNL/S&P Series (including both the
annual operating expenses for the JNL/S&P Series and the annual operating
expenses for the underlying investment divisions) could range from .90% to
1.38%. The table below shows estimated total annual operating expenses for each
of the JNL/S&P Series based on the pro rata share of expenses that the JNL/S&P
Series would bear if they invested in a hypothetical mix of underlying
investment divisions. The adviser believes the expenses shown below to be a
likely approximation of the expenses the JNL/S&P Series will incur based on the
actual mix of underlying investment divisions. The expenses shown below include
both the annual operating expenses for the JNL/S&P Series and the annual
operating expenses for the underlying investment divisions. The actual expenses
of each JNL/S&P Series will be based on the actual mix of underlying investment
divisions in which it invests. The actual expenses may be greater or less than
those shown.
JNL/S&P Conservative Growth Series I...................... 1.134%
JNL/S&P Moderate Growth Series I.......................... 1.151%
JNL/S&P Aggressive Growth Series I........................ 1.176%
JNL/S&P Very Aggressive Growth Series I................... 1.180%
JNL/S&P Equity Growth Series I............................ 1.187%
JNL/S&P Equity Aggressive Growth Series I................. 1.184%
AFTER FEE WAIVERS AND EXPENSE REIMBURSEMENTS
[DETAILS REGARDING FEE WAIVERS AND EXPENSE REIMBURSEMENTS TO BE PROVIDED BY
AMENDMENT.]
<PAGE>
PURCHASING A POLICY AND ALLOCATING PREMIUM
APPLYING FOR A POLICY. You may apply to purchase a policy by submitting a
written application to us through one of our authorized agents. We will not
issue a policy to insure people who older than age 90. Before we issue a policy,
we require you to submit evidence of insurability satisfactory to us. Acceptance
of your application is subject to our underwriting rules. We reserve the right
to reject your application for any reason. Your policy may differ from the
general description in this prospectus because we need to comply with
differences in applicable state law. Variations from the information appearing
in this prospectus due to individual state requirements are described in
supplements that are attached to this prospectus or in endorsements to the
policy, as appropriate.
In general, we will issue your policy when we have received your initial premium
and we have determined that your application meets our underwriting
requirements. You would pay the initial premium with your application. If you do
not submit your initial premium with your application, we will require you to
pay sufficient premium to place your insurance in force at or before issuance.
We will not accept your initial premium if the resulting Death Benefit exceeds
our then-current limit.
If we approve your application, we begin to deduct policy charges as of the
Policy Date. If we reject your application, we will not issue you a policy. We
will return any premium you have paid, adding interest if, as, and at the rate
required in your state. We will not subtract any policy charges from the amount
we refund to you.
Simplified Underwriting. Under our current underwriting rules, proposed Insureds
are eligible for simplified underwriting without a medical examination, if the
application and initial payment meet our simplified underwriting standards.
Simplified underwriting is not available if the initial premium exceeds the
limits set in our simplified underwriting standards. Simplified underwriting
also is not available if the Insured(s) is(are) between the ages of 0 - 17 or
would be more than 80 years old on the Policy Date. For Survivorship Policies,
both Insureds must meet our simplified underwriting requirements. Simplified
underwriting requirements may vary by state. See your policy for additional
limitations and restrictions related to simplified underwriting.
If your application is approved through simplified underwriting, your policy
will be effective and life insurance coverage under the policy will begin on the
date that your application and initial premium are taken. If cash is received
with the application, your policy is effective on the date of underwriting. If
no cash is received with the application, your policy is effective on the date
of underwriting approval and the date last cash is received.
Full underwriting. If your application requires full underwriting and we approve
your application, your policy will be effective and life insurance coverage will
begin as of the date that we receive your initial premium. If you submit your
initial premium with your application, the effective date of your policy will be
the date of your application. Otherwise, we will require you to pay sufficient
premium to place your insurance in force at or before issuance. If you have paid
your initial premium, while your application is in underwriting we may provide
you with temporary life insurance coverage in accordance with the terms of our
conditional receipt.
PREMIUM. You must pay an initial premium to purchase a policy. The minimum
initial premium is $10,000. We may waive or change this minimum. If you choose,
you may pay additional premium subject to the following conditions:
(1) each additional premium must be at least $1,000;
(2) the premium will not disqualify your policy as life insurance under the
Code.
You may also pay additional premium at any time and in any amount necessary to
avoid lapse of your policy.
We reserve the right to refuse any premium that would cause the policy to lose
its status as life insurance under the Code. We require satisfactory evidence of
insurability before accepting any premium that results in an increase in the
Death Benefit. However, we will not require evidence of insurability for one
additional premium of your choice, even if it would increase the Death Benefit
of your policy, as long as the additional premium does not exceed the lesser of
$5,000 or 10% of your initial premium.
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<PAGE>
ALLOCATION OF PREMIUM. We temporarily allocate your initial premium to the Money
Market Investment division as of the Issue Date. In most states, you may cancel
your policy by returning it to us within ten days after you receive it. In
certain states, the Right to Examine Period may be longer. If you return your
policy during the Right to Examine Period, the policy terminates and we will
refund your premium less any outstanding policy loans and any withdrawal. If you
do not return the policy, we allocate the amount in the Money Market Investment
division to the investment divisions and the Guaranteed Account in accordance
with your instructions on the allocation date after the Right to Examine Period.
You must specify your allocation percentages in your application. Percentages
must be in whole numbers and the total allocation must equal 100%. The minimum
allocation percentage per allocation option is 1%. We allocate any additional
premiums according to those percentages until you give us new allocation
instructions. You may allocate your premium to up to 21 allocation options at
any given time. You may add or delete investment divisions and/or the Guaranteed
Account from your allocation instructions, but we will not execute instructions
that would cause your Policy Value to be allocated to more than 21 allocation
options at any one time. We may change these limits in the future.
We generally allocate your additional premium to the investment divisions and
the Guaranteed Account as of the date your premium is received at our Service
Center. If an additional premium results in an increase in the Death benefit and
thus requires underwriting, however, we may delay allocation until we have
completed underwriting. At that time, we will follow the allocation instructions
in our file unless you send us new allocation instructions with your payment.
POLICY VALUE. Your Policy Value is the sum of the value of your interests in the
Separate Account, the Guaranteed Account, and the Loan Account. Your Policy
Value may increase or decrease daily to reflect the performance of the
investment divisions you have chosen, the addition of interest credited to the
Guaranteed Account and the Loan Account, the addition of premium, and the
subtraction of withdrawals, interest, and charges assessed. There is no minimum
guaranteed Policy Value.
We make all valuations in connection with the policy, other than the initial
premium and additional premium requiring underwriting, on the day the premium or
your transaction request is received at our Service Center, if that day is a
Valuation Day. Otherwise, we make that determination on the next succeeding day
that is a Valuation Day.
ACCUMULATION UNIT VALUE. We measure your Policy Value in the Separate Account by
determining the value of the Accumulation Units that we credit to your policy.
When you invest in a investment division, we credit your policy with
Accumulation Units in that investment division. The number of Accumulation Units
we credit equals the amount invested in the investment division divided by the
value of the investment division's Accumulation Units on the Valuation Day that
the allocation is made. The number of Accumulation Units we credit increases
when premium is allocated to the investment division, amounts are transferred to
the investment division, and loan repayments are credited to the investment
division. The number decreases when certain charges are deducted from the
investment division (for example, the cost of insurance charge, policy
maintenance charge, and withdrawal charge), a loan is taken from the investment
division, a transfer is made to another allocation option, or a withdrawal is
made. However, these adjustments do not affect the value of an Accumulation
Unit.
The value of an Accumulation Unit for each investment division varies to reflect
the investment experience of the corresponding portfolio and the deduction of
certain charges and expenses. We set the value of an Accumulation Unit at $10
when each investment division is established. Thereafter, on each Valuation Day,
we determine the value of an Accumulation Unit for each of the investment
divisions as follows:
(1) Determine the total value of assets in the investment division;
(2) Subtract from that amount any Daily Deduction; and
(3) Divide the result by the number of outstanding Accumulation Units.
You should refer to the prospectuses for the portfolios for a description of how
the assets of each portfolio are valued since that determination directly
affects the investment experience of the corresponding investment division and,
therefore, your Policy Value.
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<PAGE>
TRANSFER OF POLICY VALUE. You may request a transfer of Policy Value among the
investment divisions and the Guaranteed Account in writing or by telephone after
the allocation date and we have reallocated the amount in the Money Market
Investment division according to your instructions. You may transfer all or a
portion of your value from one investment division to another investment
division or to the Guaranteed Account. You may make one transfer from the
Guaranteed Account to any investment division each Policy Year. This transfer
from the Guaranteed Account may not exceed the greater of $5,000 or 25% of your
value in the Guaranteed Account.
You may not have Policy Value allocated to more than 21 allocation options at
one time. We will not perform a transfer that would cause your policy to exceed
that limit. We may change this limit in the future.
As a general rule, we only make transfers on Valuation Days. If we receive your
request on one of those days, we make the transfer that day. Otherwise, we make
the transfer on the next day that is a Valuation Day. We process transfers at
the price next computed after we receive your transfer request.
We charge $25 for each transfer in excess of 15 during a Policy Year, which is
exclusive of any allocation date transfers. Transfers pursuant to the dollar
cost averaging or asset rebalancing program do not count against the number of
free transfers and will be made at the intervals you have selected in accordance
with the procedures and requirements we establish. We reserve the right to
change, terminate, limit, or suspend the transfer provisions at any time. If we
limit the transfer privileges, you may need to make a partial withdrawal to
access the Policy Value in the investment division from which you sought a
transfer.
TRANSFERS AUTHORIZED BY TELEPHONE. You may make transfers by telephone, unless
you advise us in writing not to accept telephone transfer instructions. The
cut-off time for telephone transfer requests is 4:00 p.m. Eastern time. Timely
requests are processed on that day at that day's price.
We use procedures that we believe provide reasonable assurance that telephone
authorized transfers are genuine. For example, we will ask you to provide
identifying information. Accordingly, we disclaim any liability for losses
resulting from allegedly unauthorized telephone transfers. However, if we do not
take reasonable steps to help ensure that a telephone authorization is valid, we
may be liable for such losses. We may change, terminate, limit, or suspend the
telephone transfer privilege at any time without notice.
DOLLAR COST AVERAGING AND OTHER PERIODIC TRANSFERS. Under our dollar cost
averaging program, you may authorize us to periodically transfer a fixed dollar
amount from the Guaranteed Account or one of the investment divisions to the
investment division(s) of your choice. Any election under dollar cost averaging
must be for a period of at least twelve months. The minimum transfer amount of
the dollar cost averaging program is $100 monthly, quarterly or annually as long
as it is for a period of at least 12 months. The minimum balance required is
$5,000.
The theory of dollar cost averaging is that by spreading your investment over
time, you may be able to reduce the effect of transitory market conditions on
your investment. In addition, because a given dollar amount purchases more units
when the unit prices are relatively low rather than when the prices are higher,
in a fluctuating market, the average cost per unit may be less than the average
of the unit prices on the purchase dates. However, participation in this program
does not assure you of a greater profit from your purchases under the program,
nor will it prevent or necessarily reduce losses in a declining market.
Moreover, while we refer to this program of periodic transfers generally as
dollar cost averaging, periodic transfers from a investment division with more
volatile performance experience is unlikely to produce the desired effects of
dollar cost averaging as would transfers from a less volatile investment
division.
Your request to participate in this program will be effective when we receive
your completed request form at our Service Center. Call or write us for a copy
of the request form and additional information concerning the program. We may
change, terminate, limit, or suspend dollar cost averaging at any time.
ASSET REBALANCING. Asset rebalancing allows you to readjust the percentage of
your Policy Value allocated to each investment division to maintain a pre-set
level of investment in various market segments. Over time, the variations in
each investment division's investment results will shift the balance of your
Policy Value allocations. Under the asset rebalancing program, we automatically
transfer your Policy Value, including additional premium unless you specify
otherwise, back to the percentages you specify in accordance with procedures and
requirements that we establish. All of your Policy Value allocated to the
investment divisions must be included in the asset rebalancing program, however,
you may not include your interest in the Guaranteed Account.
You may request asset rebalancing when you apply for your policy or by
submitting a completed written request to us at our Service Center Please call
or write us for a copy of the request form and additional information concerning
asset rebalancing.
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<PAGE>
Asset rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your Policy Value
allocated to the better performing segments. Other investment programs, such as
the dollar cost averaging program, may not work in concert with asset
rebalancing. Therefore, you should monitor your use of these programs, as well
as other transfers or withdrawals, while asset rebalancing is being used. We may
change, terminate, limit, or suspend asset rebalancing at any time.
THE SEPARATE ACCOUNT
THE PORTFOLIOS. The Separate Account is divided into investment divisions. Each
investment division invests in shares of one of the portfolios. Each portfolio
is a separate investment series of JNL(R) Series Trust, an open-end management
investment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act"). We briefly describe the portfolios below. You should
read the current prospectuses for the portfolios for more detailed and complete
information concerning the portfolios, their investment objectives and
strategies, and the investment risks associated with the portfolios. If you do
not have a prospectus for a portfolio, contact us and we will send you a copy.
Each portfolio holds its assets separate from the assets of the other portfolios
and each portfolio has its own distinct investment objective and policies. Each
portfolio operates as a separate investment fund and the income, gains, and
losses of one portfolio generally have no effect on the investment performance
of any other portfolio.
JNL/Alger Growth Series seeks long-term capital appreciation by investing
primarily in a diversified portfolio of equity securities of large, U.S. traded
companies.
JNL/Alliance Growth Series seeks long-term growth of capital by investing
primarily in a diversified portfolio of common stocks or securities with common
stock characteristics, which include securities convertible into or exchangeable
for common stock.
JNL/Eagle Core Equity Series seeks long-term capital appreciation and,
secondarily, current income by investing primarily in a diversified portfolio of
common stock of U.S. companies that meet the criteria for one of three separate
equity strategies - the growth equity strategy, the value equity strategy, and
the equity income strategy.
JNL/Eagle Small Cap Equity Series seeks long-term capital appreciation by
investing primarily in a diversified portfolio of equity securities of domestic
small capitalization companies with a market capitalization at the time of
purchase under $1 billion.
JNL/J.P. Morgan Enhanced S&P 500 Index Series seeks high total return from a
broadly diversified portfolio of equity securities by investing primarily in
large and medium capitalization U.S. companies.
JNL/Janus Aggressive Growth Series seeks long-term growth of capital by
investing primarily in a diversified portfolio of common stocks of U.S. and
foreign companies selected for their growth potential.
JNL/Janus Balanced Series seeks long-term capital growth, consistent with
preservation of capital and balanced by current income. The Series normally
invests 40-60% of its assets in securities selected primarily for their growth
potential and 40-60% of its assets in securities selected primarily for their
income potential. The Series will normally invest at least 25% of its assets in
fixed-income securities. The Fund may invest without limit in foreign
securities.
JNL/Janus Capital Growth Series seeks long-term growth of capital in a manner
consistent with the preservation of capital through a non-diversified portfolio
consisting primarily of common stock of U.S. and foreign companies selected for
their growth potential. The Series normally invests a majority of its equity
assets in medium-sized companies.
JNL/Janus Global Equities Series seeks long-term growth of capital in a manner
consistent with the preservation of capital by investing primarily in a
diversified portfolio of common stocks of foreign and domestic issuers. The
Series may invest to a lesser degree in other types of securities, including
preferred stock, warrants, convertible securities, and debt securities, such as
corporate bonds.
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<PAGE>
JNL/Putnam Growth Series seeks long-term capital growth by investing primarily
in a diversified portfolio of common stock of domestic, large-capitalization
companies.
JNL/Putnam International Equity Series seeks long-term growth of capital through
a diversified portfolio consisting primarily of common stocks of non-U.S.
companies. The Series normally has at least three countries represented in its
portfolio, including both developed and emerging markets.
JNL/Putnam Mid-Cap Growth Series seeks capital appreciation by investing mainly
in common stocks of U.S. companies with a focus on growth stocks. Growth stocks
are issued by companies whose earnings the sub-adviser believes are likely to
grow faster than the economy as a whole.
JNL/Putnam Value Equity Series seeks capital growth, with income as a secondary
objective by investing primarily in a diversified portfolio of equity securities
of domestic, large-capitalization companies. For this purpose, equity securities
include common stocks, securities convertible into common stock and securities
with common stock characteristics, such as rights and warrants. The Series
considers a large-capitalization company to be one that, at the time its
securities are acquired by the Series, has a market capitalization of $2 billion
or greater.
JNL/S&P Conservative Growth Series I seeks capital growth and current income by
investing in a diversified group of other Series of the Trust (Underlying
Series). The Underlying Series in which the JNL/S&P Conservative Growth Series I
may invest are the JNL/Alger Growth Series, JNL/Alliance Growth Series,
JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan
Enhanced S&P 500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus
Balanced Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity Series,
JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth Series, PPM
America/JNL Balanced Series, PPM America/JNL High Yield Bond Series, PPM
America/JNL Money Market Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL Mid-Cap Growth Series, and T.Rowe
Price/JNL Value Series.
JNL/S&P Moderate Growth Series I seeks capital growth and current income by
investing in a diversified group of other Series of the Trust (Underlying
Series). The Underlying Series in which the JNL/S&P Conservative Growth Series I
may invest are the JNL/Alger Growth Series, JNL/Alliance Growth Series,
JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan
Enhanced S&P 500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus
Balanced Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity Series,
JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth Series, PPM
America/JNL Balanced Series, PPM America/JNL High Yield Bond Series, PPM
America/JNL Money Market Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL Mid-Cap Growth Series, and T.Rowe
Price/JNL Value Series.
JNL/S&P Aggressive Growth Series I seeks capital growth and current income by
investing in a diversified group of other Series of the Trust (Underlying
Series). The Underlying Series in which the JNL/S&P Conservative Growth Series I
may invest are the JNL/Alger Growth Series, JNL/Alliance Growth Series,
JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan
Enhanced S&P 500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus
Balanced Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity Series,
JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth Series, PPM
America/JNL Balanced Series, PPM America/JNL High Yield Bond Series, PPM
America/JNL Money Market Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL Mid-Cap Growth Series, and T.Rowe
Price/JNL Value Series.
JNL/S&P Very Aggressive Growth Series I seeks capital growth and current income
by investing in a diversified group of other Series of the Trust (Underlying
Series). The Underlying Series in which the JNL/S&P Conservative Growth Series I
may invest are the JNL/Alger Growth Series, JNL/Alliance Growth Series,
JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan
Enhanced S&P 500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus
Balanced Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity Series,
JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth Series, PPM
America/JNL Balanced Series, PPM America/JNL High Yield Bond Series, PPM
America/JNL Money Market Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL Mid-Cap Growth Series, and T.Rowe
Price/JNL Value Series.
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JNL/S&P Equity Growth Series I seeks capital growth and current income by
investing in a diversified group of other Series of the Trust (Underlying
Series). The Underlying Series in which the JNL/S&P Conservative Growth Series I
may invest are the JNL/Alger Growth Series, JNL/Alliance Growth Series,
JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P. Morgan
Enhanced S&P 500 Index Series, JNL/Janus Aggressive Growth Series,JNL/Janus
Balanced Series, JNL/Janus Capital Growth Series, JNL/Janus Global Equities
Series, JNL/Putnam Growth Series, JNL/Putnam International Equity Series,
JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth Series, PPM
America/JNL Balanced Series, PPM America/JNL High Yield Bond Series, PPM
America/JNL Money Market Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL Mid-Cap Growth Series, and T.Rowe
Price/JNL Value Series.
JNL/S&P Equity Aggressive Growth Series I seeks capital growth and current
income by investing in a diversified group of other Series of the Trust
(Underlying Series). The Underlying Series in which the JNL/S&P Conservative
Growth Series I may invest are the JNL/Alger Growth Series, JNL/Alliance Growth
Series, JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/J.P.
Morgan Enhanced S&P 500 Index Series, JNL/Janus Aggressive Growth
Series,JNL/Janus Balanced Series, JNL/Janus Capital Growth Series, JNL/Janus
Global Equities Series, JNL/Putnam Growth Series, JNL/Putnam International
Equity Series, JNL/Putnam Value Equity Series, JNL/Putnam Mid-Cap Growth Series,
PPM America/JNL Balanced Series, PPM America/JNL High Yield Bond Series, PPM
America/JNL Money Market Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL Mid-Cap Growth Series, and T.Rowe
Price/JNL Value Series.
PPM America/JNL Balanced Series seeks reasonable income, long-term capital
growth and preservation of capital by investing primarily in a diversified
portfolio of common stock and fixed-income securities of U.S. companies. The
Series may invest in any type or class of security. The anticipated mix of the
Series' holdings is approximately 45-75% of its assets in equities and 25-55% in
fixed-income securities.
PPM America/JNL High Yield Bond Series is to provide a high level of current
income; its secondary investment objective is capital appreciation by investing
in fixed-income securities, with emphasis on higher-yielding, higher-risk,
lower-rated or unrated corporate bonds.
PPM America/JNL Money Market Series seeks to achieve as high a level of current
income as is consistent with the preservation of capital and maintenance of
liquidity by investing in high quality, short-term money market instruments by
investing in high quality, U.S. dollar-denominated money market instruments that
mature in 397 days or less.
Salomon Brothers/JNL Global Bond Series seeks a high level of current income. As
a secondary objective, the Series seeks capital appreciation. The Series seeks
to achieve its objective through a diversified portfolio consisting primarily of
fixed income securities of U.S. and foreign issuers.
Salomon Brothers/JNL U.S. Government & Quality Bond Series seeks to obtain a
high level of current income by investing primarily in a diversified portfolio
of debt obligations and mortgage-backed securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, including collateralized
mortgage obligations backed by such securities.
T. Rowe Price/JNL Established Growth Series seeks long-term growth of capital
and increasing dividend income by investing primarily in a diversified portfolio
of common stocks of well-established growth companies. A growth company is one
which (i) has demonstrated historical growth of earnings faster than the growth
of inflation and the economy in general, and (ii) has indications of being able
to continue this growth pattern in the future.
T. Rowe Price/JNL Mid-Cap Growth Series seeks long-term growth of capital by
investing primarily in a diversified portfolio of common stocks of medium-sized
(mid-cap) U.S. companies which the sub-adviser believes have the potential for
above-average earnings growth. The Sub-Adviser defines mid-cap companies as
those whose market capitalization, at the time of acquisition by the Series,
falls within the capitalization range of companies in the S&P MidCap 400 Index.
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T. Rowe Price/JNL Value Series seeks to provide long-term capital appreciation
by investing in common stocks believed to be undervalued. Income is a secondary
objective. In taking a value approach to investment selection, at least 65% of
total assets will be invested in common stocks the portfolio manager regards as
undervalued.
We do not promise that the portfolios will meet their investment objectives.
Amounts you have allocated to investment divisions may grow in value, decline in
value, or grow less than you expect, depending on the investment performance of
the portfolios in which those investment divisions invest. You bear the
investment risk that those portfolios may not meet their investment objectives.
YOU SHOULD CAREFULLY REVIEW THE PORTFOLIOS' PROSPECTUSES BEFORE ALLOCATING
AMOUNTS TO THE INVESTMENT DIVISIONS.
We automatically reinvest all dividends and capital gains distributions from a
portfolio in shares of that portfolio at net asset value. The income and
realized and unrealized gains or losses on the assets of each investment
division are separate and are credited to or charged against the particular
investment division without regard to income, gains or losses from any other
investment division or from any other part of our business. We use the premium
you allocate to a investment division to purchase shares in the corresponding
portfolio and redeem shares in the portfolios to meet policy obligations or make
adjustments in reserves. The portfolios are required to redeem their shares at
net asset value and to make payment within seven days.
Certain of the portfolios sell their shares to separate accounts underlying both
variable life insurance and variable annuity contracts. It is conceivable that
in the future it may be unfavorable for variable life insurance separate
accounts and variable annuity separate accounts to invest in the same portfolio.
Although neither we nor any of the portfolios currently foresees any such
disadvantages either to variable life insurance or variable annuity contract
owners, each portfolio's board of directors intends to monitor events in order
to identify any material conflicts between variable life and variable annuity
contract owners and to determine what action, if any, should be taken in
response thereto. If a board of directors were to conclude that separate
investment funds should be established for variable life and variable annuity
separate accounts, Owners will not bear the related expenses.
VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote
the shares of the portfolios held by the investment division to which you have
allocated your Policy Value. Under current interpretations, however, you are
entitled to give us instructions on how to vote those shares with respect to
certain matters. We notify you when your instructions are needed and will
provide proxy materials or other information to assist you in understanding the
issue. We determine the number of votes for which you may give voting
instructions as of the record date set by the relevant portfolio for the
shareholder meeting at which the vote will occur.
As a general rule, you are the person entitled to give voting instructions.
However, if you assign your policy, the assignee may be entitled to give voting
instructions. Retirement plans may have different rules for voting by plan
participants. If you send us written voting instructions, we follow your
instructions in voting the portfolio shares attributable to your policy. If you
do not send us written instructions, we vote the shares attributable to your
policy in the same proportion as we vote the shares for which we have received
instructions from other Owners. We vote shares that we hold in the same
proportion as we vote the shares for which we have received instructions from
Owners.
We may, when required by state insurance regulatory authorities, disregard Owner
voting instructions if the instructions require that the shares be voted so as
to cause a change in the sub-classification or investment objective of one or
more of the portfolios or to approve or disapprove an investment advisory
contract for one or more of the portfolios.
In addition, we may disregard voting instructions in favor of changes initiated
by Owners to the investment objectives or the investment adviser of the
portfolios if we reasonably disapprove of the proposed change. We would
disapprove a proposed change only if the proposed change is contrary to state
law or prohibited by state regulatory authorities or we reasonably conclude that
the proposed change would not be consistent with the investment objectives of
the portfolio or would result in the purchase of securities for the portfolio
that vary from the general quality and nature of investments and investment
techniques utilized by the portfolio. If we disregard voting instructions, we
will include a summary of that action and our reasons for that action in the
next semi-annual financial report to you.
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This description reflects our view of currently applicable law. If the law
changes or our interpretation of the law changes, we may decide that we are
permitted to vote the portfolio shares without obtaining instructions from our
Owners and we may choose to do so.
ADDITIONS, DELETIONS, AND SUBSTITUTIONS OF SECURITIES. If the shares of any of
the portfolios are no longer available for investment by the Separate Account or
if, in our judgment, further investment in the shares of a portfolio is no
longer preferred, we may add or substitute shares of another portfolio or mutual
fund for portfolio shares already purchased or to be purchased in the future.
Any substitution will comply with the requirements of the 1940 Act.
We also reserve the right to make the following changes in the operation of the
Separate Account and the investment divisions:
(a) to operate the Separate Account in any form permitted by law;
(b) to take any action necessary to comply with applicable law or obtain
and continue any exemption from applicable laws;
(c) to transfer assets from one investment division to another, or from
any investment division to our general account;
(d) to add, combine, or remove investment divisions in the Separate
Account;
(e) to change the way in which we assess charges, as long as the charges
do not exceed the maximum guaranteed charges under the policies;and
(f) to assess a charge for taxes attributable to the operations of the
Separate Account or for other taxes.
If we take any of these actions, we will comply with the then applicable legal
requirements.
THE GUARANTEED ACCOUNT
If you select a guaranteed account, your money will be placed with Jackson
National's other assets. The guaranteed accounts are not registered with the SEC
and the SEC does not review the information we provide to you about the
guaranteed accounts. Your contract contains a more complete description of the
guaranteed accounts.
The portion of the policy relating to the Guaranteed Account is not registered
under the Securities Act of 1933 (1933 Act) and the Guaranteed Account is not
registered as an investment company under the 1940 Act. Accordingly, neither the
Guaranteed Account nor any interests in the Guaranteed Account are subject to
the provisions or restrictions of the 1933 Act or the 1940 Act, and the
disclosure regarding the Guaranteed Account has not been reviewed by the staff
of the Securities and Exchange Commission. The statements about the Guaranteed
Account in this prospectus may be subject to generally applicable provisions of
the federal securities laws regarding accuracy and completeness.
You may allocate part or all of your premium to the Guaranteed Account. Under
this option, we guarantee the principal amount allocated to the Guaranteed
Account and a minimum rate of interest of 3% that will be credited to the amount
in the Guaranteed Account. From time to time and at our sole discretion, we may
set a higher current interest rate applicable to premium and transfers allocated
to the Guaranteed Account during a Policy Year. We may declare different rates
for amounts that are allocated to the Guaranteed Account at different times. We
determine interest rates in accordance with a variety of factors.
Amounts allocated to the Guaranteed Account are part of the general account of
Jackson National. We invest the assets of the general account in accordance with
applicable laws governing the investments of insurance company general accounts.
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We may delay payment of withdrawals from the Guaranteed Account for up to 6
months from the date we receive your written withdrawal request. We pay interest
on the deferred amount at such rate as may be required by the applicable state
or jurisdiction.
POLICY BENEFITS AND RIGHTS
DEATH BENEFIT. While your policy is in force, we will pay the Death Benefit upon
the death of the Insured or, if your policy is a Survivorship Policy, upon the
death of the last surviving Insured. Under a Survivorship Policy, you must first
notify us of the death of the first Insured to die. We will pay the Death
Benefit to the named beneficiary(ies) or, if none survives, to the contingent
beneficiary(ies), within seven days. We will pay the Death Benefit in a lump sum
or according to one of the optional payment plans described below.
The Death Benefit is equal to the greater of:
(1) the initial death benefit shown in your policy, reduced by any partial
withdrawal, plus any increase in coverage due to additional premium; or
(2) the Minimum Death Benefit;
plus any rider benefits payable, less any Debt, and less any overdue cost of
insurance charge and policy maintenance charge if the Insured dies during the
Grace Period.
We determine the amount of the Death Benefit as of the end of the Valuation
Period ending on the Valuation Day before the day we make payment. We pay the
Death Benefit proceeds within seven days after we have received due proof of
death and all other requirements we deem necessary have been satisfied. From the
time of the death of the Insured until the Death Benefit is paid, any amount
allocated to the Separate Account is subject to investment risk borne by the
beneficiary. During that time, we will credit interest to the Death Benefit as
required by applicable law.
After the Issue Date, the Death Benefit can be increased or decreased at your
request. However, we reserve the right to limit the number of changes to the
Death Benefit each Policy Year. To increase coverage, we require an additional
premium and may require a new application requesting the increase and evidence
of insurability of the Insured(s) satisfactory to us. We refuse any decrease in
coverage that would cause the policy to lose its status as life insurance under
the Code. Similarly, we do not permit any partial withdrawal if the resulting
decrease in Death Benefit would cause the policy to lose its status as life
insurance under the Code.
DEATH BENEFIT PAYMENT OPTIONS. We will pay the Death Benefit in a lump sum or,
if the amount payable is at least $2,000, you may choose one of the payment
options that we offer. The payment options described below are not available if
the beneficiary is an assignee, corporation, partnership, association, trustee,
executor, administrator, or fiduciary. We transfer to our general account any
amount placed under a payment option so that it will not be affected by the
investment performance of the Separate Account. At our discretion, we may
declare excess interest in addition to the minimum rate of interest applicable
to a particular payment option.
You may request or change a payment option by writing to us at our Service
Center before the death of the Insured(s). If no payment option is in effect at
the death of the Insured (the last surviving Insured in the case of the
Survivorship Policy), the beneficiary may elect a payment option.
The following payment options are available under the policies:
Option 1 - Benefits at Interest. We pay interest monthly, quarterly,
semi-annually, or annually on proceeds left on deposit with us during the
lifetime of the beneficiary or for a specified period. Benefits may be withdrawn
at any time subject to a minimum payment of $100. We credit interest to unpaid
balances at a rate of not less than 4%.
Option 2 - Payment for a Fixed Period. We pay installments until the proceeds,
plus interest, are paid in full. Installments may be paid monthly, quarterly,
semi-annually, or annually and the minimum payment is $50. The rate per $1,000
of the monthly payment is shown in the Payment Option Table in the policy. The
present value of any unpaid balance may be withdrawn at any time. If the
beneficiary dies before all guaranteed payments have been made, the present
value of any remaining guaranteed payments will be paid to the payee designated
by the beneficiary, or if none, to the beneficiary's estate. We credit interest
at a rate of not less than 3%.
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Option 3 - Life Income. We pay benefits monthly, quarterly, semi-annually, or
annually during the lifetime of the beneficiary, subject to satisfactory proof
of the age of the beneficiary. A minimum payment under this option is $50. The
rate per $1,000 of the monthly payment is shown in the Payment Option Table in
the policy. The minimum number of payments may be guaranteed. If no guarantee
period is selected, payments stop when the beneficiary dies. If the beneficiary
dies before all guaranteed payments have been made, the present value of any
remaining guaranteed payments are paid to the payee designated by the
beneficiary, or if none, to the beneficiary's estate. We credit interest at a
rate of not less than 3%.
POLICY LOANS. While the policy is in force and not in the Grace Period and after
the allocation date you may borrow money from us using the policy as the only
security for your loan. Loans have priority over the claims of any assignee or
any other person. You may borrow up to 90% of the Withdrawal Value of your
policy as of the end of the Valuation Period in which we grant your loan
request. . The minimum loan amount is $500.00.
When we make a policy loan to you, we transfer to the Loan Account a portion of
the Policy Value equal to the loan amount. We process the loan pro rata from the
investment divisions and the Guaranteed Account, unless you instruct us
otherwise in writing. We credit interest to the Loan Account at the minimum
guaranteed rate shown in your policy. On each Policy Anniversary, the value of
the Loan Account is set equal to the Debt. Accordingly, we transfer to the Loan
Account an amount of Policy Value equal to the amount by which the Debt exceeds
the value of the Loan Account. Similarly, if the value in the Loan Account
exceeds Debt, we transfer the excess from the Loan Account to the investment
divisions and the Guaranteed Account on a proportional basis.
We offer two types of loans. Preferred loans are loans against Earnings. The
interest rate credited to the Loan Account for a preferred loan is currently 6%.
All other loans are regular loans, which currently earn 4% interest. For
purposes of determining the type of loan taken, each loan is treated as coming
first from Earnings and then from premium.
Every loan accrues interest daily at a declared annual rate not to exceed 6%.
Interest on policy loans is due on each Policy Anniversary and is added to the
loan principal if not paid when due.
While the policy is in force, you may repay all or part of a policy loan without
any penalty. To repay a loan in full, the loan repayment must equal the Debt. If
you intend a payment to be a loan repayment rather than additional premium, you
must clearly identify the payment as such or we treat it as additional premium.
We first apply all loan repayments to any regular loans you may have taken. When
we receive a loan repayment, we transfer an equal amount from the Loan Account
to the investment divisions and Guaranteed Account on a proportional basis.
A policy loan, whether or not repaid, will have a permanent effect on your
Policy Value because the investment results of each investment division and the
interest paid on the Guaranteed Account will apply only to the amounts remaining
in those accounts. The longer a loan is outstanding, the greater the effect is
likely to be. The effect could be favorable or unfavorable. If the investment
divisions and/or Guaranteed Account earn more than the annual interest rate for
amounts held in the Loan Account, your Policy Value will not increase as rapidly
as it would if you had not taken a policy loan. If the investment divisions
and/or Guaranteed Account earn less than that rate, then your Policy Value will
be greater than it would have been if you had not taken a policy loan. Also, if
you do not repay a policy loan, your Debt will be subtracted from the Death
Benefit and Withdrawal Value otherwise payable.
In addition, you may realize taxable income when you take a policy loan. In most
instances, a policy is treated as a MEC for federal tax purposes. As a result,
policy loans are treated as withdrawals for tax purposes, and the amount of the
loan equal to any increase in your Policy Value may be treated as taxable income
to you. In addition, you may also incur an additional 10% percent penalty tax.
You should also be aware that interest on policy loans is generally not
deductible. Before you take a policy loan, you should consult your tax adviser
and carefully consider the potential impact of a policy loan on your rights and
benefits under the policy.
WITHDRAWALS. While your policy is in force, you may withdraw all or part of your
Withdrawal Value by sending a written request to our Service Center. The
Withdrawal Value equals the Policy Value less any applicable withdrawal charge,
taxes payable, the policy maintenance charge, and any Debt.
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For a full withdrawal, the policy or a lost policy affidavit must be received at
our Service Center along with the withdrawal request. We then pay you the
Withdrawal Value determined as of the end of the Valuation Period during which
we receive your written request for withdrawal. Your policy terminates on the
day we receive your written request. We generally will pay you the Withdrawal
Value of the policy within seven days of our receiving your complete written
request or on the effective withdrawal date you have requested, whichever is
later.
You may receive a portion of the Withdrawal Value by making a partial withdrawal
from your policy. Your written request for a partial withdrawal will be
effective on the day we receive it at our Service Center, or, if not a Valuation
Day, the next day that is a Valuation Day. We pay you the amount requested less
any applicable withdrawal charge. The minimum partial withdrawal amount is $500
or the entire value of your policy if less. Unless you request otherwise, we
process the partial withdrawal from the investment divisions and the Guaranteed
Account in proportion to each one's respective value at the time.
A partial withdrawal reduces the Death Benefit under your policy as well as the
Policy Value. We reduce the Death Benefit by an amount proportionate to the
reduction in the Policy Value caused by the partial withdrawal. Partial
withdrawals are not permitted if the Death Benefit reduction would cause the
policy to lose its status as life insurance under the Code.
A withdrawal may give rise to taxable income and we recommend that you consult
your tax adviser before making a withdrawal. The tax consequences of making a
full withdrawal are discussed in "Federal Tax Considerations."
STATUS OF POLICY AT ATTAINED AGE 100. The policies do not have a maturity date.
If an Insured reaches age 100 while your policy is in force, we will transfer
all of your value in the Separate Account to the Guaranteed Account and we will
stop charging the Daily Deduction and the cost of insurance charge to your
policy. At that time, the death benefit provisions under your policy will no
longer apply. All other provisions of the policies will continue to apply.
TERMINATION AND GRACE PERIOD. Your policy will terminate and life insurance
coverage will end when one of the following events first occurs:
(a) you make a full withdrawal under your policy;
(b) the Grace Period ends and your policy lapses; or
(c) the Insured dies, in the case of the Single Life Policy, and the last
surviving Insured dies in the case of the Survivorship Policy.
Your policy will enter the Grace Period if your Withdrawal Value is $0 or less
or if, at any time, Debt equals or exceeds the Policy Value less any applicable
withdrawal charge. The Grace Period begins on the day after we send you and any
assignee notice of the amount necessary to keep your policy in force. The policy
will terminate unless you pay that amount, which is equal to at least two months
of the cost of insurance charge and any policy maintenance charge due before the
end of the Grace Period. If you do not pay that amount by the end of the Grace
Period, your policy will lapse without value and coverage will end.
The policy will continue in effect through the Grace Period. If the Insured or
last surviving Insured, as applicable, dies during the Grace Period, we will pay
a Death Benefit in accordance with your instructions. However, we will reduce
the proceeds by any overdue cost of insurance charge and policy maintenance
charge.
REINSTATEMENT. If your policy lapses, you may apply for reinstatement of the
policy within three years of the date of lapse by sending a written request to
our Service Center. We will require satisfactory evidence of the insurability of
the Insured(s) at the same risk classification as at the time of issuance of the
policy. The reinstatement amount (or charge) must be sufficient to cover all
past due cost of insurance charges and any policy maintenance charge assessed
during the Grace Period, plus an additional amount sufficient to keep the policy
in force for three months after the date of reinstatement. In addition, you must
provide payment or agree to the reinstatement of any policy loan, including all
past due interest on the loan from the date of lapse to the date of
reinstatement. The reinstated loan will be allocated to the Loan Account at that
time. The effective date of the reinstatement will be the Valuation Day
immediately following our approval of your request for reinstatement.
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The Policy Value on the reinstatement date will equal the Policy Value at the
time of lapse plus any additional premium that is not considered payment of past
due charges or of loan repayments. The portion of the Policy Value not allocated
to the Loan Account on the reinstatement date will be allocated to the
investment divisions and Guaranteed Account according to your most recent
allocation instructions. The Death Benefit of the reinstated policy cannot
exceed the Death Benefit at the time of lapse. The withdrawal charge in effect
upon reinstatement will be the withdrawal charge that existed on the date of
lapse.
A Survivorship Policy may be reinstated only if both Insureds are still alive
or, if only one Insured is alive, the lapse occurred after the death of the
first Insured.
RIGHT TO EXAMINE THE POLICY. In most states, you may cancel your policy by
returning it to us within ten days after you receive it. In certain states,
however, the Right to Examine Period may be longer. If you return your policy,
the policy terminates and we will pay you an amount equal to your premium less
any outstanding loans and any withdrawals. We will pay the refund within seven
days of receiving your request and the policy. No withdrawal charge is imposed
upon return of a policy within the Right to Examine Period.
POSTPONEMENT OF PAYMENT. We may defer for up to fifteen days if there is money
in the variable contract the payment of any amount attributable to premium paid
by check to allow the check a reasonable time to clear. We ordinarily pay any
amount attributable to your Policy Value allocated to the Separate Account
within seven days, except that we may suspend or postpone any transfers or
payments to or from the investment divisions if any of the following events
occur:
(1) The New York Stock Exchange is closed (other than customary weekend
and holiday closings).
(2) Trading on the New York Stock Exchange is restricted.
(3) An emergency exists, as determined by the Securities and Exchange
Commission, so that it is not reasonably practicable to dispose of the
Separate Account's investments or to determine the value of its
assets.
(4) The Securities and Exchange Commission by order so permits for your
protection.
In addition, we may delay payment from the Guaranteed Account for up to six
months. We will pay interest on the deferred amount at such rate as may be
required by the applicable state or jurisdiction.
CHARGES AND DEDUCTIONS
We assess charges and deductions under the policies against your value in the
investment divisions and the Policy Value generally. Additional charges and
expenses are paid out of the portfolios' assets, as described in the
prospectuses of the portfolios.
DAILY DEDUCTION. On each Valuation Day, we deduct from the investment divisions
the mortality and expense risk charge, administrative charge, and tax charge.
These charges are reflected in the value of Accumulation Units of each
investment division. Together these charges are called the Daily Deduction.
Mortality and Expense Charge. The mortality and expense risk charge compensates
Jackson National for the mortality and expense risks it assumes in connection
with the policies. The mortality risk includes the risk that the cost of
insurance charge will be insufficient to meet the claims and risks under the
Minimum Death Benefit. We also assume a risk that on the Monthly Anniversary
preceding the death of an Insured the Death Benefit will exceed the amount on
which the cost of insurance charges were based. The expense risk is the risk
that expenses incurred in issuing and administering the policies will exceed the
administrative charge set in the policies. The mortality and expense risk charge
is calculated at an annual rate equal to .90% during Policy Years 1-10 and .80%
thereafter.
Administrative Charge. The administrative charge compensates Jackson National
for its administrative expenses in connection with the policies and the Separate
Account. Jackson National performs or delegates all such administrative
functions, which include preparation of annual reports and statements,
maintenance of investment division and Separate Account records, and filing
fees. In addition, certain expenses such as administrative personnel costs,
mailing costs, data processing costs, legal fees, accounting fees, and costs
associated with accounting, valuation, regulatory and reporting requirements are
attributable to both the policies and maintenance of the Separate Account. The
administrative charge is calculated at an annual rate equal to .30% during
Policy Years 1-10 and .15% thereafter.
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Tax Charge. The tax charge compensates Jackson National for its increased
federal tax liability under the federal tax laws (also known as a DAC tax) and
for premium taxes. The tax charge is calculated at an annual rate equal to .40%
during Policy Years 1-10.
COST OF INSURANCE CHARGE. The cost of insurance charge is effective as of the
Policy Date and deducted on the Issue Date and each Monthly Anniversary
thereafter by canceling Accumulation Units. If the Monthly Anniversary falls on
a day other than a Valuation Day, the charge will be determined on the next
Valuation Day. The cost of insurance charge is intended to pay for the cost of
providing life insurance coverage for the Insured(s). We guarantee that this
charge will not exceed the maximum cost of insurance charge determined on the
basis of the rates shown in the table of guaranteed maximum monthly cost of
insurance rates in your policy. The current and guaranteed cost of insurance
charges are based on Attained Age in the case of a Single Life Policy and Policy
Year in the case of a Survivorship Policy, as well as sex, rating class, and
smoking status of the Insured(s).
POLICY MAINTENANCE CHARGE. Each year on the Policy Anniversary we will deduct a
policy maintenance charge of $35 from your Policy Value by canceling
Accumulation Units. This charge is waived if your Policy Value is at least
$50,000 on that day. The policy maintenance charge compensates Jackson National
for additional expenses of policy administration, including those associated
with preparing the policies and confirmations, maintenance of Owner records, and
the cost of other services necessary to service Owners, as well as those
administrative expenses listed above attributable to both the policies and the
Separate Account. The policy maintenance charge is taken from your value in the
investment divisions and the Guaranteed Account on a proportional basis. If you
make a full withdrawal on a date other than the Policy Anniversary, we will
deduct any applicable policy maintenance charge from that amount.
WITHDRAWAL CHARGE. If you make a withdrawal during the first nine premium years,
we may impose a withdrawal charge as a percentage of premium withdrawn. A
premium year is the twelve-month period following payment of the premium. We
will deduct the withdrawal charge from the value remaining in your policy by
canceling Accumulation Units. The withdrawal charge does not apply after nine
premium years as shown below:
- ------------------ --- -- --- --- --- --- --- -- --- ----------
Premium Year 1 2 3 4 5 6 7 8 9 Thereafter
- ------------------ --- -- --- --- --- --- --- -- --- ----------
Withdrawal Charge 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
- ------------------ --- -- --- --- --- --- --- -- --- ----------
Earnings are not subject to the withdrawal charge. For purposes of the
withdrawal charge, withdrawals are treated as coming first from Earnings and
then from the oldest Remaining Premium. The withdrawal charge is based on the
amount of Remaining Premium you withdraw.
Each Policy Year you may withdraw free of any withdrawal charge an amount equal
to the greater of:
(a) 10% of any Remaining Premium paid as of the Valuation Day that we
receive your request for withdrawal, less any previous withdrawal
taken during that Policy Year; or
(b) 100% of Earnings.
The amount available for withdrawal is not cumulative and expires at the end of
each Policy Year.
The withdrawal charge is imposed to cover our actual premium tax expenses and
sales expenses, which include agents' sales commissions and other sales and
distribution expenses. We expect to recover total premium tax expenses and sales
expenses of the policies over the life of the policies. To the extent premium
taxes and distribution costs are not recovered by the withdrawal charge, we may
make up any shortfall from the assets of our general account, which includes
funds derived from the Daily Deduction charged to the investment divisions and
other fees and charges under the policies.
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<PAGE>
TRANSFER CHARGE. You may make 15 transfers free of charge in any Policy Year. We
will deduct a charge of $25 per transfer in excess of 15 from the transferred
amount before allocating it to the allocation option(s) you have requested. This
charge does not apply to transfers made under the dollar cost averaging [or
asset rebalancing] programs.
ILLUSTRATION CHARGE. At your request, we will provide you with one personalized
illustration free of charge each Policy Year. We may charge a fee of up to $25
for any additional illustration you may request.
ADDITIONAL POLICY CHARGES. We do not currently assess a charge for federal,
state, or other taxes that may be attributable to the operations of the Separate
Account, but we reserve the right to do so in the future.
PORTFOLIO EXPENSES. You indirectly bear the charges and expenses of the
portfolios whose shares are held by the investment divisions to which you
allocate your Policy Value. The Separate Account purchases shares of the
portfolios at net asset value. Each portfolio's net asset value reflects
management fees and other operating expenses already deducted from the
portfolio's assets. For a summary of historical expenses of the portfolios, see
the table called "Portfolio Expenses" above. For more information concerning the
management fees and other charges against the portfolios, see the prospectuses
and the statements of additional information for the portfolios, which are
available upon request.
We may receive compensation from the investment advisers or administrators of
the portfolios. Such compensation will be consistent with the services we
provide or the cost savings resulting from the arrangement and, therefore, may
differ from portfolio to portfolio.
SPECIAL PROVISIONS FOR GROUP OR SPONSORED ARRANGEMENTS. Where permitted by state
insurance laws, policies may be purchased under group or sponsored arrangements.
We may reduce or waive the charges and deductions described above for policies
issued under these arrangements. Among other things, we may waive withdrawal
charges for employees, officers, directors, agents, and their immediate family
members. We will reduce these charges and deductions in accordance with our
rules in effect when we approve the application. To qualify for a reduction, a
group or sponsored arrangement must satisfy our criteria as to, for example, the
size of the group, the expected number of participants, and anticipated premium
from the group. Generally, the sales contacts and effort, administrative costs,
and mortality cost per policy vary based on such factors as the size of the
group or sponsored arrangements, the purposes for which policies are purchased,
and certain characteristics of the group's members. The amount of reduction and
the criteria for qualification will reflect the reduced sales effort and
administrative costs resulting from, and the different mortality experience
expected as a result of, sales to qualifying groups and sponsored arrangements.
From time to time, we may modify on a uniform basis both the amounts of
reductions and the criteria for qualification. Reductions in these charges will
not be unfairly discriminatory.
GENERAL POLICY PROVISIONS
STATEMENTS TO OWNERS. Each year following your Policy Anniversary, we will send
you a report showing information concerning your policy transactions in the past
year and the current status of your policy. The report will include information
such as the Policy Value as of the end of the current and the prior year, the
current Death Benefit, Withdrawal Value, Debt, withdrawals, Earnings, premium
paid, and deductions made since the last annual report. We will also include any
information required by state law or regulation.
We will mail you confirmations or other appropriate notices of policy
transactions. In addition, we will send you the financial statements of the
portfolios and other reports as specified in the 1940 Act. Please give us 30
days written notice of any address change. Please read your statements and
confirmations carefully, verify their accuracy, and contact us within 30 days
with any question you may have.
LIMIT ON RIGHT TO CONTEST. We may not contest the insurance coverage under the
policy after the policy has been in force during the lifetime of the Insured(s)
for two years from the Issue Date, except for nonpayment of any required
premium. A reinstated or modified policy may be contested only with respect to
material misrepresentations made in the application for such reinstatement or
request for policy modifications. In the case of an increase in coverage under
the policy, only the amount of the increase may be contested with respect to
material misrepresentations made in the related application.
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<PAGE>
In issuing a policy, we rely on your application. Your statements in that
application, in the absence of fraud, are considered representations and not
warranties. We will not use any statement made in connection with the
application to void the policy or to deny a claim unless that statement is
contained in the written application.
SUICIDE. If an Insured commits suicide while sane or insane within two years of
the Issue Date, we will return to you an amount equal to the premium paid less
any withdrawals and any Debt. If an Insured commits suicide while sane or insane
within two years of the effective date of any increase in coverage, we will
return to you an amount equal to the premium paid for such increase in coverage
less any withdrawals and any Debt associated with such increase. The applicable
suicide exclusion period may be longer or shorter in certain states.
MISSTATEMENT AS TO AGE AND SEX. If the age or sex of an Insured is incorrectly
stated in the application, the benefits under the policy will be those that the
premium paid would have purchased at the correct age and sex.
BENEFICIARY. You name the beneficiary(ies) in the application. You may change
the beneficiary by submitting a written request to the Service Center, unless an
irrevocable beneficiary was previously named. We will provide a form to be
signed and filed with us. Your request for a change in beneficiary will take
effect when we record the change. Until we record the change in beneficiary, we
are entitled to rely on your most recent instructions in our files. Accordingly,
we are not liable for making a payment to the person shown in our files or
taking any other related action before that time.
If you name more than one primary beneficiary, we will divide the Death Benefit
equally among your beneficiaries unless you instruct otherwise. The interest of
any beneficiary who dies before the Insured(s) ends at his or her death. If no
primary beneficiary survives the Insured(s), we will divide the Death Benefit
equally among any surviving named contingent beneficiary(ies), unless you
instruct otherwise. If no beneficiary is living, we will pay the Death Benefit
to the Owner or the Owner's estate.
ASSIGNMENT. You may assign your policy while it is in force. You must notify us
of an assignment in writing. Until we receive notice from you, we are not liable
for any action we may take or payments we may make that may be contrary to the
terms of your assignment. We are not responsible for the validity of an
assignment. Your rights and the rights of the beneficiary may be affected by an
assignment. An assignment may result in income tax and a 10% penalty tax. You
should consult your tax adviser before assigning your policy.
CREDITORS' CLAIMS. To the extent permitting by law, no benefits payable under
this policy will be subject to the claims of your creditors or the creditors of
your beneficiary.
DIVIDENDS. We will not pay any dividend under the policy, nor do the policies
share in the surplus or revenue of Jackson National.
NOTICE AND ELECTIONS. To be effective, all notices and elections under the
policy must be in writing, signed by you, and received by us at our Service
Center. Certain exceptions may apply. Unless otherwise provided in the policy,
all notices, requests and elections will be effective when received at our
Service Center complete with all necessary information.
MODIFICATION. We reserve the right to modify the policy without written notice
or your consent in the circumstances described in this prospectus or as
necessary to conform to applicable law or regulation or any ruling issued by a
governmental agency. The provisions of the policy will be construed so as to
comply with the requirements of Section 7702 of the Code.
SURVIVORSHIP POLICY. We offer policies on a single life and last survivor basis.
The Survivorship Policy operates almost identically to the Single Life Policy.
The primary difference is that the Survivorship Policy has two Insureds and the
Death Benefit is paid only upon the death of the last surviving Insured. Other
significant differences are:
(1) the cost of insurance charge differs because we base it on the
anticipated mortality of two Insureds and we do not pay the Death
Benefit until both Insureds have died;
(2) for a Survivorship Policy to qualify for simplified underwriting both
Insureds must meet our standards;
(3) for a Survivorship Policy to be reinstated, both Insureds must be
alive on the date of reinstatement or, if only one Insured is alive,
the lapse occurred after the death of the first Insured ; and
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<PAGE>
(4) under a Survivorship Policy, provisions regarding incontestability,
suicide, and misstatements of age or sex apply to each Insured.
FEDERAL TAX CONSIDERATIONS
The following discussion is based upon our understanding of current federal
income tax law applicable to life insurance policies in general. We cannot
predict the probability that any changes in those laws will be made. Also, we do
not guarantee the tax status of the policies. You bear the complete risk that
the policies may not be treated as "life insurance contracts" under federal
income tax laws.
In addition, this discussion does not include a detailed description of the
federal income tax consequences of the purchase of these policies or any
discussion of special tax rules that may apply to certain purchase situations.
We also have not considered any applicable state or other tax laws. You should
seek tax advice concerning the effect on your personal tax liability of the
transactions permitted under the policies, as well as any other question you may
have concerning the tax status of the policies or the possibility of changes in
the tax law.
TAXATION OF JACKSON NATIONAL AND THE SEPARATE ACCOUNT. Jackson National is taxed
as a life insurance company under Part I of Subchapter L of the Code. The
operations of the Separate Account are taxed as part of the operations of
Jackson National. Investment income and realized capital gains are not taxed to
the extent that they are applied under the policies.
Accordingly, we do not anticipate that Jackson National will incur any federal
income tax liability attributable to the operation of the Separate Account (as
opposed to the federal tax related to the receipt of premium under the
policies). Therefore, we are not making any charge or provision for federal
income taxes. However, if the tax treatment of the Separate Account is changed,
we may charge the Separate Account for its share of the resulting federal income
tax.
In several states we may incur state and local taxes on the operations of the
Separate Account. We currently are not making any charge or provision for them
against the Separate Account. If these taxes should be increased, we may make a
charge or provision for them against the investment divisions. If we do so, the
value of Accumulation Units and, therefore, the investment results of the
investment divisions will be reduced.
TAX STATUS OF THE POLICIES. The policies are structured to satisfy the
definition of a life insurance contract under the Code. As a result, the Death
Benefit ordinarily will be fully excluded from the gross income of the
beneficiary. The Death Benefit will be included in your gross estate for federal
estate tax purposes if the proceeds are payable to your estate. The Death
Benefit will also be included in your estate if the beneficiary is not your
estate but you retained incidents of ownership in the policy. Examples of
incidents of ownership include the right to change beneficiaries, to assign the
policy or revoke an assignment, and to pledge the policy or obtain a policy
loan. If you are the Owner and the Insured under a policy and if you transfer
all incidents of ownership in the policy more than three years before your
death, the Death Benefit will not be included in your gross estate. State and
local estate and inheritance tax consequences may also apply.
In addition, certain transfers of the policies or payment of the Death Benefit,
either during life or at death, to individuals (or trusts for the benefit of
individuals) two or more generations below that of the transferor may be subject
to the federal generation-skipping transfer tax.
In the absence of final regulations or other pertinent interpretations of the
Code, some uncertainty exists as to whether a substandard risk policy will meet
the statutory definition of life insurance. If a policy were deemed not to be
life insurance for tax purposes, it would not provide most of the tax advantages
usually provided by life insurance. We reserve the right to amend the policies
to comply with any future changes in the Code, any regulations or rulings under
the Code and any other requirements imposed by the Internal Revenue Service
("IRS").
In addition, you may use the policy in various arrangements, including
non-qualified deferred compensation or salary continuance plans, split dollar
insurance plans, executive bonus plans, retiree medical benefit plans and
others. The tax consequences of such plans may vary depending on the particular
facts and circumstances of each individual arrangement. Therefore, if you are
contemplating the use of a policy in any arrangement the value of which depends
in part on its tax consequences, you should to consult a qualified tax adviser
regarding the tax treatment of the proposed arrangement.
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<PAGE>
Diversification Requirements. Section 817(h) of the Code requires that the
underlying assets of variable life insurance contracts be diversified. The Code
provides that a variable life insurance contract will not be treated as life
insurance for federal income tax purposes for any period and any subsequent
period for which the investments are not adequately diversified. If the policy
were disqualified for this reason, you would lose the tax deferral advantages of
the policy and would be subject to current federal income taxes on all earnings
allocable to the policy.
The Code provides that variable life insurance contracts such as the policy meet
the diversification requirements if, as of the close of each 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. For purposes of determining whether or not the diversification
standards of Section 817(h) of the Code have been met, each U.S. government
agency or instrumentality is treated as a separate issuer.
The United States Treasury Department also has issued regulations that establish
diversification requirements for the investment accounts underlying variable
contracts such as the policies. These regulations amplify the diversification
requirements set forth in the Code and provide an alternative to the provision
described above. Under these regulations, an investment account will be deemed
adequately diversified if: (1) no more than 55% of the value of the total assets
of the account is represented by any one investment; (2) no more than 70% of the
value of the total assets of the account is represented by any two investments;
(3) no more than 80% of the value of the total assets of the account is
represented by any three investments; and (4) no more than 90% of the value of
the total assets of the account is represented by any four investments.
These diversification standards are applied to each investment division of the
Separate Account by looking to the investments of the portfolio underlying the
investment division. One of our criteria in selecting the portfolios is that
their investment managers intend to manage them in compliance with these
diversification requirements.
Owner Control. In certain circumstances, variable life insurance contract owners
will be considered the owners, for tax purposes, of separate account assets
underlying their contracts. In those circumstances, the contract owners could be
subject to taxation on the income and gains from the separate account assets.
In published rulings, the Internal Revenue Service has stated that a variable
insurance contract owner will be considered the owner of separate account
assets, if the owner possesses incidents of ownership in those assets, such as
the ability to exercise investment control over the assets. When the
diversification regulations were issued, the Treasury Department announced that
in the future, it would provide guidance on the extent to which variable
contract owners could direct their investments among investment divisions
without being treated as owners of the underlying assets of the Separate
Account. As of the date of this prospectus, no such guidance has been issued. We
cannot predict when or whether the Treasury Department will issue that guidance
or what position the Treasury Department will take. In addition, although
regulations are generally issued with prospective effect, it is possible that
regulations may be issued with retroactive effect.
The ownership rights under the policy are similar in many respects to those
described in IRS rulings in which the contract owners were not deemed to own the
separate account assets. In some respects, however, they differ. For example,
under the policy you have many more investment options to choose from than were
available under the contracts involved in the published rulings, and you may be
able to transfer Policy Value among the investment options more frequently than
in the published rulings. Because of these differences, it is possible that you
could be treated as the owner, for tax purposes, of the portfolio shares
underlying your policy and therefore be subject to taxation on the income and
gains on those shares. Moreover, it is possible that the Treasury Department's
position, when announced, may adversely affect the tax treatment of existing
policies. We, therefore, reserve the right to modify the policy as necessary to
attempt to prevent you from being considered the owner for tax purposes of the
underlying assets.
The remainder of this discussion assumes that the policy will be treated as life
insurance for federal tax purposes.
TAX TREATMENT OF LIFE INSURANCE DEATH BENEFIT PROCEEDS. In general, the amount
of the Death Benefit payable under a policy is excludable from gross income
under the Code. Certain transfers of the policy, however, may result in a
portion of the Death Benefit being taxable.
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If the Death Benefit is not received in a lump sum and is, instead, applied
under one of the payment options, payments generally will be prorated between
amounts attributable to the Death Benefit, which will be excludable from the
beneficiary's income, and amounts attributable to interest (occurring after the
Insured's death), which will be includable in the beneficiary's income.
TAX DEFERRAL DURING ACCUMULATION PERIOD. Under existing provisions of the Code,
except as described below, any increase in your Policy Value is generally not
taxable to you unless you receive or are deemed to receive amounts from the
policy before the Insured dies. If you make a full withdrawal under your policy,
the Withdrawal Value will be includable in your income to the extent the amount
received exceeds the "investment in the contract." The "investment in the
contract" generally is the total premium and other consideration paid for the
policy, less the aggregate amount received under the policy previously to the
extent such amounts received were excludable from gross income. Whether partial
withdrawals (or other amounts deemed to be distributed) from the policy
constitute income depends, in part, upon whether the policy is considered a
"modified endowment contract" ("MEC") for federal income tax purposes.
Policies Which Are MECs
- -----------------------
Characterization of a policy as a MEC. In general, this policy will constitute a
MEC unless (1) it was received in exchange for another life insurance contract
which was not a MEC, (2) no premium or other consideration (other than the
exchanged contract) are paid into the policy during the first 7 Policy Years,
and (3) there is no withdrawal or reduction in the death benefit during the
first 7 Policy Years. In addition, even if the policy initially is not a MEC, it
may, in certain circumstances, become a MEC if there is a later increase in
benefits or any other "material change" of the policy within the meaning of the
tax law.
Tax Treatment of Withdrawals, Loans, Assignments and Pledges under MECs. If your
policy is a MEC, withdrawals from your policy will be treated first as
withdrawals of income and then as a recovery of premium. Thus, you may realize
taxable income upon a withdrawal if the Policy Value exceeds the investment in
the policy. You may also realize taxable income when you take a policy loan,
because any loan (including unpaid loan interest) under the policy will be
treated as a withdrawal for tax purposes. In addition, if you assign or pledge
any portion of the value of your policy (or agree to assign or pledge any
portion), the assigned or pledged portion of your Policy Value will be treated
as a withdrawal for tax purposes. Before assigning, pledging, or requesting a
loan under a policy that is a MEC, you should consult a qualified tax adviser.
Penalty Tax. Generally, withdrawals (or the amount of any deemed withdrawals)
from a MEC are subject to a penalty tax equal to 10% of the portion of the
withdrawal that is includable in income, unless the withdrawals are made: (1)
after you reach age 59 1/2, (2) because you have become disabled (as defined in
the tax law), or (3) as substantially equal periodic payments over your life or
life expectancy (or the joint lives or life expectancies of you and your
beneficiary, as defined in the tax law). Certain other exceptions to the 10%
penalty tax may apply.
Aggregation of Policies. All life insurance policies that are MECs and that are
purchased by the same person from us or any of our affiliates within the same
calendar year will be aggregated and treated as one life insurance policy for
purposes of determining the amount of a withdrawal (including a deemed
withdrawal) that is includable in taxable income.
Policies Which Are Not MECs
- ---------------------------
Tax Treatment of Withdrawals Generally. If your policy is not a MEC, the amount
of any withdrawal from the policy will be treated first as a non-taxable
recovery of premium and then as income from the policy. Thus, only the portion
of a withdrawal that exceeds the investment in the policy immediately before the
withdrawal will be includable in taxable income.
Certain Distributions Required by the Tax Law in the First 15 Policy Years. As
indicated above, the Code limits the amount of premium that may be made and the
Policy Values that can accumulate relative to the Death Benefit. Where cash
distributions are required under the Code in connection with a reduction in
benefits during the first 15 years after the policy is issued (or if withdrawals
are made in anticipation of a reduction in benefits, within the meaning of the
Code, during this period), some or all of such amounts may be includable in
taxable income.
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Tax Treatment of Loans. If your policy is not a MEC, a loan received under the
policy generally will be treated as indebtedness for tax purposes, rather than a
withdrawal of Policy Value. As a result, you will not realize taxable income on
any part of the loan as long as the policy remains in force. If you make a full
withdrawal under your policy, however, any outstanding loan balance will be
treated as an amount received by you as part of the Withdrawal Value.
Accordingly, you may be subject to taxation on the loan amount at that time.
Moreover, if any portion of your policy loan is a preferred loan, a portion of
your policy loan may be includable in your taxable income. Generally, you may
not deduct interest paid on loans under the policy, even if you use the loan
proceeds in your trade or business.
SURVIVORSHIP POLICY. Although we believe that the policy, when issued as a
Survivorship Policy, meets the definition of life insurance contract under the
Code, the Code does not directly address how it applies to Survivorship
Policies. In the absence of final regulations or other guidance under the Code
regarding this form of policy, there is necessarily some uncertainty whether a
Survivorship Policy will meet the Code's definition of life insurance. If you
are considering purchasing a Survivorship Policy, you should consult a qualified
tax adviser.
If the Owner is the last surviving Insured, the Death Benefit will generally be
includable in the Owner's estate on his or her death for purposes of the federal
estate tax. If the Owner dies and was not the last surviving Insured, the fair
market value of the policy may be included in the Owner's estate. In general,
the Death Benefit is not included in the last surviving Insured's estate if he
or she neither retained incidents of ownership at death nor had given up
ownership within three years before death.
TREATMENT AT ATTAINED AGE 100. If an Insured reaches age 100, we will transfer
your value in the Separate Account to the Guaranteed Account and stop charging
the Daily Deduction and the cost of insurance charge to your policy. At that
time, the death benefit provisions under your policy will no longer apply. We
believe the policies will continue to qualify as life insurance under the Code,
however, there is some uncertainty regarding this treatment. It is possible,
therefore, that you would be viewed as constructively receiving the Withdrawal
Value when an Insured reaches age 100. If that occurs, you would realize taxable
income at that time, even though the value under your policy had not been
distributed.
ACTIONS TO ENSURE COMPLIANCE WITH THE TAX LAW. We believe that the maximum
amount of premium we intend to permit for the policies will comply with the Code
definition of life insurance. We will monitor the amount of your premium, and,
if your total premium during a Policy Year exceed those permitted by the Code,
we will refund the excess premium within 60 days of the end of the Policy Year
and will pay interest and other earnings (which will be includable in taxable
income) as required by law on the amount refunded. We reserve the right to
increase the Death Benefit (which may result in larger charges under a policy)
or to take any other action deemed necessary to ensure the compliance of the
policy with the federal tax definition of life insurance.
FEDERAL INCOME TAX WITHHOLDING. We will withhold and remit to the federal
government a part of the taxable portion of withdrawals made under a policy,
unless the Owner notifies us in writing at or before the time of the withdrawal
that he or she chooses not to have withholding. As Owner, you will be
responsible for the payment of any taxes and early distribution penalties that
may be due on the amounts received under the policy, whether or not you choose
withholding. You may also be required to pay penalties under the estimated tax
rules, if your withholding and estimated tax payments are insufficient to
satisfy your total tax liability.
TAX ADVICE. This summary is not a complete discussion of the tax treatment of
the policy. You should seek tax advice from an attorney who specializes in tax
issues.
DESCRIPTION OF JACKSON NATIONAL AND THE SEPARATE ACCOUNT
JACKSON NATIONAL LIFE INSURANCE 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 in
London, England.
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OFFICERS AND DIRECTORS OF JACKSON NATIONAL. Our directors and executive officers
are listed below, together with information as to their current principal
business affiliation and principal occupations during the past five years. Where
no dates are given, the person has held that position for at least the past five
years.
Name and Business Address Position with Company Principal Occupations
During Past 5 Years
- ------------------------- --------------------- ------------------------
John B. Banez Vice President -
5901 Executive Drive Systems and Programming
Lansing, Michigan 48911
Jonathan Bloomer Chairman and Director
Laurence Poutney Hill
London, England EC4R 0EU
Connie J. (Dalton) Van Doorn Vice President -Variable
8055 East Tufts Avenue Annuity Administration
Suite 200
Denver, Colorado 80237
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
Joseph D. Emanuel Vice President & Associate
5901 Executive Drive General Counsel
Lansing, Michigan 48911
Robert A. Fritts Vice President & Controller
5901 Executive Drive Financial Operations
Lansing, Michigan 48911
William A. Gray Senior Vice President -
5901 Executive Drive Product Development &
Lansing, Michigan 48911 Special Markets
Victor Gallo Senior Vice President - Group Pension
5901 Executive Drive
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
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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 - Financial
5901 Executive Drive Operations and Treasurer
Lansing, Michigan 48911
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
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 and
5901 Executive Drive Director
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
Jacky Morin Vice President - Group
5901 Executive Drive Pension
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
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Mark Nerud Vice President - Fund
225 West Wacker Drive Accounting and Administration
Suite 120
Chicago, Illinois 60606
Bradley J. Powell Vice President - Institutional
5901 Executive Drive 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
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
THE SEPARATE ACCOUNT. The Separate Account was established in 1999 as a
segregated asset account of Jackson National. The Separate Account meets the
definition of a "separate account" under the federal securities laws and is
registered with the Securities and Exchange Commission as a unit investment
trust under the 1940 Act. The Securities and Exchange Commission does not
supervise the management of the Separate Account or Jackson National.
We own the assets of the Separate Account, but we hold them separate from our
other assets. To the extent that these assets are attributable to the policies
offered by this prospectus, these assets are not chargeable with liabilities
arising out of any other business we may conduct. Income, gains, and losses,
whether or not realized, from assets allocated to the Separate Account are
credited to or charged against the Separate Account without regard to our other
income, gains, or losses. Our obligations arising under the policies are general
corporate obligations of Jackson National.
The Separate Account is divided into investment divisions. The assets of each
investment division are invested in the shares of one of the portfolios. We do
not guarantee the investment performance of the Separate Account, its investment
divisions, or the portfolios. Values allocated to the Separate Account will rise
and fall with the values of shares of the portfolios and are also reduced by
policy charges. In the future, we may use the Separate Account to fund other
variable life insurance policies. We will account separately for each type of
variable life insurance policy funded by the Separate Account.
SAFEKEEPING OF THE SEPARATE ACCOUNT'S ASSETS. We hold the assets of the Separate
Account. We keep those assets physically segregated and held separate and apart
from our general account assets. We maintain records of all purchases and
redemptions of shares of the portfolios.
STATE REGULATION OF JACKSON NATIONAL. We are subject to the laws of Michigan and
regulated by the Michigan Department of Insurance. Every year we file an annual
statement with the Department of Insurance covering our operations for the
previous year and our financial condition as of the end of the year. We are
inspected periodically by the Department of Insurance to verify our contract
liabilities and reserves. The National Association of Insurance Commissioners
also examines us periodically. Our books and records are subject to review by
the Department of Insurance at all times. We are also subject to regulation
under the insurance laws of every jurisdiction in which we operate.
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DISTRIBUTION OF POLICIES
Jackson National Life Distributors, Inc. (JNLD), a subsidiary of Jackson
National, serves as distributor of the policies. JNLD is located at 401 Wilshire
Boulevard, Suite 1200, Santa Monica, California 90401. It is registered as a
broker-dealer under the Securities Exchange Act of 1934, as amended, and is a
member of the National Association of Securities Dealers, Inc.
Registered representatives of broker-dealers who are licensed insurance agents
appointed by Jackson National, either individually or through an incorporated
insurance agency sell the policies described in this prospectus. JNLD enters
into selling agreements with the unaffiliated broker-dealers whose personnel
participate in the offer and sale of the policies. In some states, policies may
be sold by representatives who may be acting as broker-dealers without separate
registration under the Securities Exchange Act of 1934, as amended, pursuant to
legal and regulatory exceptions.
The maximum sales compensation payable by Jackson National is not more than ___%
of premium paid. In addition, we may pay or permit other promotional incentives,
in cash, or credit or other compensation.
LEGAL PROCEEDINGS
There are no pending legal proceedings affecting the Separate Account. Jackson
National has been named as a defendant in civil litigation proceedings
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 purchasers of certain 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, and is vigorously
defending these actions. A favorable outcome is anticipated, and 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. In addition, JNL
is a defendant in several individual actions that involve similar issues,
including an August 1999 verdict against JNL for $32.5 million in punitive
damages. JNL has appealed the verdict on the basis that it is not supported by
the facts or the law, and a ruling reversing the judgment is being sought.
LEGAL MATTERS
Patrick W. Garcy, Esquire, has passed upon all matters of Michigan law
pertaining to the policy, including the validity of the policy and our right to
issue the policy under Michigan law. The law firm of Jorden Burt Boros Cicchetti
Berenson & Johnson LLP, 1025 Thomas Jefferson St., Suite 400 East, Washington,
D.C. 20007-5201, serves as special counsel to Jackson National with regard to
the federal securities laws.
REGISTRATION STATEMENT
We have filed a registration statement with the Securities and Exchange
Commission under the 1933 Act with respect to the policies offered by this
prospectus. This prospectus does not contain all the information set forth in
the registration statement and the exhibits filed as part of the registration
statement. You should refer to the registration statement and the exhibits for
further information concerning the policies, the Separate Account, and Jackson
National. The descriptions in this prospectus of the policies and other legal
instruments are summaries. You should refer to those instruments as filed for
their precise terms.
EXPERTS
The financial statements for Jackson National and the related financial
statement schedule included in this prospectus for the year ended 1999 have been
audited by KPMG LLP, independent auditors, as stated in their reports. The
financial statements for Jackson National and the related financial statement
schedule included in this prospectus for the years ended 1998 and 1997 have been
audited by PricewaterhouseCoopers LLP, independent auditors, as stated in their
reports. We have included those financial statements and the supplemental
schedule in reliance upon the reports of KPMG LLP and PricewaterhouseCoopers
LLP, respectively, given upon their authority as experts in accounting and
auditing. Actuarial matters included in this prospectus and the registration
statement of which it is a part, including the hypothetical policy
illustrations, have been examined by ________________, and are included in
reliance upon his opinion as to their reasonableness.
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FINANCIAL STATEMENTS
The consolidated financial statements for Jackson National as of December 31,
1999, 1998 and 1997, and the related financial statement schedule are included
in this prospectus. No financial statements are included for the Separate
Account because it has not yet commenced operations, has no assets or
liabilities, and has received no income or incurred any expense. The financial
statements of Jackson National that are included should be considered only as
bearing upon Jackson National's ability to meet its contractual obligations
under the policies. Jackson National's financial statements do not bear on the
investment experience of the assets held in the Separate Account.
[TO BE FILED BY AMENDMENT]
<PAGE>
[BACK COVER]
The Securities and Exchange Commission maintains a web site at www.sec.gov that
contains additional information that may be of interest to you about Jackson
National Life Insurance Company, Jackson National Life Separate Account IV, and
the policies offered by this prospectus. The web site also contains additional
information about the portfolios underlying the policies.
