AS FILED WITH THE SEC ON _______________. REGISTRATION NO. 2-81243
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
FORM S-6
POST-EFFECTIVE AMENDMENT NO. 24
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED
ON FORM N-8B-2
---------------
PRUCO LIFE OF NEW JERSEY
VARIABLE INSURANCE ACCOUNT
(Exact Name of Trust)
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
(Name of Depositor)
213 WASHINGTON STREET
NEWARK, NEW JERSEY 07102-2992
(800) 437-4016, EXT. 46
(Address and telephone number of principal executive offices)
---------------
THOMAS C. CASTANO
ASSISTANT SECRETARY
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
213 WASHINGTON STREET
NEWARK, NEW JERSEY 07102-2992
(Name and address of agent for service)
Copy to:
JEFFREY C. MARTIN
SHEA & GARDNER
1800 MASSACHUSETTS AVENUE, N.W.
WASHINGTON, D.C. 20036
---------------
Variable Life Insurance Contracts--The Registrant has registered an indefinite
amount of securities pursuant to Rule 24f-2 under the Investment Company Act of
1940. The Rule 24f-2 notice for fiscal year 1996 was filed on February 28, 1997.
It is proposed that this filing will become effective (check appropriate space):
|_| immediately upon filing pursuant to paragraph (b) of Rule 485
|X| on May 1, 1997 pursuant to paragraph (b) of Rule 485
-----------
(date)
|_| 60 days after filing pursuant to paragraph (a) of Rule 485
|_| on ____________ pursuant to paragraph (a) of Rule 485
<PAGE>
CROSS REFERENCE SHEET
(AS REQUIRED BY FORM N-8B-2)
N-8B-2 ITEM NUMBER LOCATION
------------------ --------
1. Cover Page
2. Cover Page
3. Not Applicable
4. Sale of the Contract and Sales Commissions
5. Pruco Life of New Jersey Variable Insurance Account
6. Pruco Life of New Jersey Variable Insurance Account
7. Not Applicable
8. Not Applicable
9. Litigation
10. Brief Description of Contract; Short-Term Cancellation
Right, or "Free Look"; Premiums; Premium Adjustment;
Allocation of Premiums; Transfers; Charges and
Expenses; How a Contract's Death Benefit Will Vary;
How a Contract's Cash Value Will Vary; Withdrawal of
a Portion of a Contract's Net Cash Value; Surrender of
a Contract for its Net Cash Value; When Proceeds are
Paid; Right to Exchange a Contract for a Fixed-Benefit
Whole-Life Policy; Lapse and Reinstatement; Options on
Lapse; Riders; Other General Contract Provisions; Voting
Rights; Substitution of Series Fund Shares
11. Brief Description of the Contract; Pruco Life of New
Jersey Variable Insurance Account
12. Cover Page; Brief Description of the Contract; The
Prudential Series Fund, Inc.; Sale of the Contract and
Sales Commissions
13. Brief Description of the Contract; The Prudential Series
Fund, Inc.; Charges and Expenses; Sale of the Contract
and Sales Commissions
14. Brief Description of the Contract; Requirements for
Issuance of a Contract
15. Brief Description of the Contract; Allocation of
Premiums; Transfers
16. Brief Description of the Contract; Detailed Information
for Prospective Contract Owners
17. When Proceeds are Paid
18. Pruco Life of New Jersey Variable Insurance Account
19. Reports to Contract Owners
20. Not Applicable
21. Contract Loans
22. Not Applicable
23. Not Applicable
<PAGE>
N-8B-2 ITEM NUMBER LOCATION
------------------ --------
24. Other General Contract Provisions
25. Pruco Life Insurance Company of New Jersey
26. Brief Description of the Contract; The Prudential Series
Fund, Inc.; Charges and Expenses
27. Pruco Life Insurance Company of New Jersey; The
Prudential Series Fund, Inc.
28. Pruco Life Insurance Company of New Jersey; Directors
and Officers
29. Pruco Life Insurance Company of New Jersey
30. Not Applicable
31. Not Applicable
32. Not Applicable
33. Not Applicable
34. Not Applicable
35. Pruco Life Insurance Company of New Jersey
36. Not Applicable
37. Not Applicable
38. Sale of the Contract and Sales Commissions
39. Sale of the Contract and Sales Commissions
40. Not Applicable
41. Sale of the Contract and Sales Commissions
42. Not Applicable
43. Not Applicable
44. Brief Description of the Contract; The Prudential Series
Fund, Inc.; How a Contract's Death Benefit Will Vary;
How a Contract's Cash Value Will Vary
45. Not Applicable
46. Brief Description of the Contract; Pruco Life of New
Jersey Variable Insurance Account; The Prudential
Series Fund, Inc.
47. Pruco Life of New Jersey Variable Insurance Account;
The Prudential Series Fund, Inc.
48. Not Applicable
49. Not Applicable
50. Not Applicable
51. Not Applicable
52. Substitution of Series Fund Shares
53. Tax Treatment of Contract Benefits
54. Not Applicable
55. Not Applicable
<PAGE>
N-8B-2 ITEM NUMBER LOCATION
------------------ --------
56. Not Applicable
57. Not Applicable
58. Not Applicable
59. Financial Statements; Financial Statements of Pruco Life
of New Jersey Variable Insurance Account; Financial
Statements of Pruco Life Insurance Company of New
Jersey
<PAGE>
PART I
INFORMATION REQUIRED IN PROSPECTUS
<PAGE>
PROSPECTUS
MAY 1, 1997
PRUCO LIFE INSURANCE COMPANY
OF NEW JERSEY
VARIABLE INSURANCE ACCOUNT
- --------------------------------------------------------------------------------
VARIABLE
LIFE INSURANCE
CONTRACTS
This prospectus describes a variable life insurance contract (the "Contract")
issued by Pruco Life Insurance Company of New Jersey ("Pruco Life of New
Jersey"), a stock life insurance company that is an indirect wholly-owned
subsidiary of The Prudential Insurance Company of America ("Prudential"). As of
January 1, 1992, these Contracts are no longer available for sale. These
Contracts provide whole-life insurance protection. That is, they provide
lifetime insurance coverage, as long as premiums are paid. They also provide a
cash value for the owner if the Contract is terminated during the insured's
lifetime. A Contract's death benefit varies monthly with the investment
performance of the subaccounts of the Pruco Life of New Jersey Variable
Insurance Account (the "Account") to which the owner allocates the net premiums.
Whatever the investment performance, however, it will not cause the death
benefit to be less than a guaranteed minimum amount (generally the face amount
specified in the Contract). The cash value of a Contract generally increases
with the payment of each premium, but it also varies daily with investment
performance. There is no guaranteed minimum cash value.
A Contract's net premiums and earnings on those premiums will be held in one or
more of the investment subaccounts of the Account or, pursuant to a real estate
investment option, in the Pruco Life of New Jersey Variable Contract Real
Property Account (the "Real Property Account"). The assets of each subaccount
will be invested in a corresponding portfolio of The Prudential Series Fund,
Inc. (the "Series Fund"). The attached prospectus for the Series Fund and its
statement of additional information describe the investment objectives of the
thirteen portfolios of the Series Fund in which net premiums under the Contracts
may currently be invested--the MONEY MARKET PORTFOLIO, the DIVERSIFIED BOND
PORTFOLIO, the GOVERNMENT INCOME PORTFOLIO, the CONSERVATIVE BALANCED PORTFOLIO,
the FLEXIBLE MANAGED PORTFOLIO, the HIGH YIELD BOND PORTFOLIO, the STOCK INDEX
PORTFOLIO, the EQUITY INCOME PORTFOLIO, the EQUITY PORTFOLIO, the PRUDENTIAL
JENNISON PORTFOLIO, the SMALL CAPITALIZATION STOCK PORTFOLIO, the GLOBAL
PORTFOLIO, and the NATURAL RESOURCES PORTFOLIO. Other subaccounts and portfolios
may be added in the future. The REAL PROPERTY ACCOUNT, through a partnership,
invests primarily in income-producing real property. The Real Property Account
is described in a prospectus that is attached to this one. This prospectus
describes the Contract generally and the Pruco Life of New Jersey Variable
Insurance Account.
THE REPLACEMENT OF LIFE INSURANCE IS GENERALLY NOT IN THE INTEREST OF THE
CUSTOMER. IN MOST CASES, WHEN A CUSTOMER REQUIRES ADDITIONAL COVERAGE, A NEW
POLICY SUPPLEMENTING THE EXISTING POLICY SHOULD BE REQUESTED, THEREBY PROTECTING
THE BENEFITS OF THE ORIGINAL POLICY. IF YOU ARE CONSIDERING REPLACING A POLICY,
YOU SHOULD COMPARE THE BENEFITS AND COSTS OF SUPPLEMENTING YOUR EXISTING POLICY
WITH THE BENEFITS AND COSTS OF PURCHASING THE CONTRACT DESCRIBED IN THIS
PROSPECTUS AND YOU SHOULD CONSULT WITH A QUALIFIED TAX ADVISOR.
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT IS ATTACHED TO
A CURRENT PROSPECTUS FOR THE PRUDENTIAL SERIES FUND, INC. AND A CURRENT
PROSPECTUS FOR THE PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY
ACCOUNT.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
213 Washington Street
Newark, New Jersey 07102-2992
Telephone: (800) 437-4016, Ext. 46
VLI-2 Ed 5-97
Catalog No. 646965I
<PAGE>
PROSPECTUS CONTENTS
Page
BRIEF DESCRIPTION OF THE CONTRACT..............................................1
GENERAL INFORMATION ABOUT PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY,
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT, AND THE VARIABLE
INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT.............................2
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY..................................2
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT.........................2
THE PRUDENTIAL SERIES FUND, INC.............................................3
PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT............3
WHICH INVESTMENT OPTION SHOULD BE SELECTED..................................4
DETAILED INFORMATION FOR PROSPECTIVE CONTRACT OWNERS...........................4
REQUIREMENTS FOR ISSUANCE OF A CONTRACT.....................................4
PREMIUMS....................................................................5
PREMIUM ADJUSTMENT..........................................................6
ALLOCATION OF PREMIUMS......................................................6
CHARGES AND EXPENSES........................................................6
TRANSFERS...................................................................8
HOW A CONTRACT'S DEATH BENEFIT WILL VARY....................................8
HOW A CONTRACT'S CASH VALUE WILL VARY......................................10
SURRENDER OF A CONTRACT FOR ITS NET CASH VALUE.............................12
WITHDRAWAL OF A PORTION OF A CONTRACT'S NET CASH VALUE.....................12
WHEN PROCEEDS ARE PAID.....................................................13
LIVING NEEDS BENEFIT.......................................................13
ILLUSTRATIONS OF CASH VALUES, DEATH BENEFITS, AND ACCUMULATED PREMIUMS.....14
CONTRACT LOANS.............................................................15
RIGHT TO EXCHANGE A CONTRACT FOR A FIXED-BENEFIT WHOLE-LIFE POLICY.........16
SALE OF THE CONTRACT AND SALES COMMISSIONS.................................16
TAX TREATMENT OF CONTRACT BENEFITS.........................................16
LAPSE AND REINSTATEMENT....................................................18
OPTIONS ON LAPSE...........................................................18
LEGAL CONSIDERATIONS RELATING TO SEX-DISTINCT PREMIUMS AND BENEFITS........19
OTHER GENERAL CONTRACT PROVISIONS..........................................20
RIDERS.....................................................................20
VOTING RIGHTS..............................................................20
SUBSTITUTION OF SERIES FUND SHARES.........................................21
REPORTS TO CONTRACT OWNERS.................................................21
STATE REGULATION...........................................................21
EXPERTS....................................................................21
LITIGATION.................................................................22
ADDITIONAL INFORMATION.....................................................22
FINANCIAL STATEMENTS.......................................................22
DIRECTORS AND OFFICERS........................................................23
FINANCIAL STATEMENTS OF PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT...A1
FINANCIAL STATEMENTS OF PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY............B1
ADDITIONAL ILLUSTRATIONS OF CASH VALUES, DEATH BENEFITS, AND ACCUMULATED
PREMIUMS ...................................................................C1
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE. NO PERSON IS AUTHORIZED TO MAKE ANY
REPRESENTATIONS IN CONNECTION WITH THIS OFFERING OTHER THAN THOSE CONTAINED IN
THIS PROSPECTUS, THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR THE
SERIES FUND, AND THE PROSPECTUS FOR THE REAL PROPERTY ACCOUNT.
<PAGE>
BRIEF DESCRIPTION OF THE CONTRACT
This variable life insurance contract (the "Contract") being offered by Pruco
Life Insurance Company of New Jersey ("Pruco Life of New Jersey") is in many
respects similar to traditional "fixed-benefit" whole-life insurance. In other
respects it is quite different. As with fixed-benefit whole-life insurance, the
owner pays level premiums for a Contract that provides lifetime insurance
coverage on the named insured. Like fixed-benefit whole-life insurance, a
Contract has a cash value that the owner may obtain by terminating the Contract.
Also like fixed-benefit whole-life insurance, a variety of optional benefits and
riders may be added and may require an additional premium. Finally, like
fixed-benefit whole-life insurance, the cash value of a Contract during the
early years will be substantially lower than the sum of the premiums paid. Under
a fixed-benefit contract, there are a fixed guaranteed death benefit and a cash
value that increases at a guaranteed rate as additional premiums are paid; in
some such contracts, the insurer may refund some of the premium as a dividend if
its experience is better than the assumptions upon which it made its guarantees.
The variable life insurance Contract described here also has a schedule of cash
values and a guaranteed minimum death benefit. The distinctive feature of this
Contract is that the premiums, after certain deductions are made, are placed in
one or more separate investment subaccounts of Pruco Life of New Jersey's
Variable Insurance Account, and the death benefit and cash value may increase or
decrease, depending on the investment performance of the selected subaccount[s].
There is no minimum cash value. But, as long as no premium is in default and
there is no loan on the Contract, the death benefit will not be less than a
guaranteed minimum amount (the face amount specified in the Contract, unless the
Contract owner has withdrawn part of the Contract's cash value). See WITHDRAWAL
OF A PORTION OF A CONTRACT'S NET CASH VALUE, page 12. The smallest Contract has
a face amount of $25,000. As of January 1, 1992, these Contracts are no longer
available for sale.
The owner of a Contract chooses the subaccount[s] of the Pruco Life Variable
Insurance Account (the "Account") into which the net premiums will be placed. At
present there are thirteen subaccounts, each of which is invested in a
corresponding portfolio of The Prudential Series Fund, Inc. (the "Series Fund"),
a series mutual fund to which The Prudential Insurance Company of America
("Prudential") acts as investment advisor. The MONEY MARKET PORTFOLIO is
invested in short-term debt obligations similar to those purchased by money
market funds; the DIVERSIFIED BOND PORTFOLIO is invested primarily in high
quality medium-term corporate and government debt securities; the GOVERNMENT
INCOME PORTFOLIO is invested primarily in US Government securities including
intermediate and long-term US Treasury securities and debt obligations issued by
agencies of or instrumentalities established, sponsored or guaranteed by the
U.S. Government; the CONSERVATIVE BALANCED PORTFOLIO is invested in a mix of
money market instruments, fixed income securities and common stock in
proportions believed by the investment manager to be appropriate for an investor
who desires diversification of investment who prefers a relatively lower risk of
loss and correspondingly reduced chance of high appreciation; the FLEXIBLE
MANAGED PORTFOLIO is invested in a mix of money market instruments, fixed income
securities and common stocks, in proportions believed by the investment manager
to be appropriate for an investor desiring diversification of investment who is
willing to accept a relatively high level of loss in an effort to achieve
greater appreciation; the HIGH YIELD BOND PORTFOLIO is invested primarily in
high yield fixed-income securities of medium to lower quality, also known as
high risk bonds; the STOCK INDEX PORTFOLIO is invested in common stocks selected
to duplicate the price and yield performance of the Standard & Poor's 500
Composite Stock Price Index; the EQUITY INCOME PORTFOLIO is invested primarily
in common stocks and convertible securities that provide favorable prospects for
investment income returns above those of the Standard & Poor's 500 Stock Index
or the NYSE Composite Index; the EQUITY PORTFOLIO is invested primarily in
common stocks; the PRUDENTIAL JENNISON PORTFOLIO is invested primarily in equity
securities of established companies with above-average growth prospects; the
SMALL CAPITALIZATION STOCK PORTFOLIO is invested in equity securities of
publicly-traded companies with small market capitalization; the GLOBAL PORTFOLIO
is invested primarily in common stocks and common stock equivalents (such as
convertible debt securities) of foreign and domestic issuers; the NATURAL
RESOURCES PORTFOLIO is invested primarily in common stocks and convertible
securities of natural resource companies, and in securities (typically debt
securities or preferred stock) the terms of which are related to the market
value of a natural resource. Further information about the Series Fund
portfolios can be found under THE PRUDENTIAL SERIES FUND, INC. on page 3.
The Contract owner may also invest a portion of his or her net premiums in the
Pruco Life of New Jersey Variable Contract Real Property Account (the "Real
Property Account"), which, through a partnership, invests primarily in
income-producing real property. If a Contract owner elects to invest a portion
of his or her net premiums in the Real Property Account, the assets will be
maintained in a subaccount of the Real Property Account related to the Contract
that provides the mechanism and maintains the records whereby the various
Contract charges are made. The investment objectives of the Real Property
Account and the partnership are described briefly under PRUCO LIFE OF NEW JERSEY
VARIABLE CONTRACT REAL PROPERTY ACCOUNT on page 3.
Because the assets that relate to the Contract may be invested in these various
investment options, the Contract offers an opportunity for the cash value to
appreciate more rapidly than it would under comparable fixed-benefit
1
<PAGE>
whole-life insurance. But the owner must accept the risk that if investment
performance is unfavorable the cash value may not appreciate as rapidly and,
indeed, may decrease in value.
Pruco Life of New Jersey deducts certain charges from each premium payment and
from the amounts held in the designated investment options. All these charges,
which are largely designed to cover insurance costs and risks as well as sales
and administrative expenses, are fully described under CHARGES AND EXPENSES on
page 6. In brief, and subject to that fuller description, the following charges
may be made: (1) an annual administrative charge of $30 if premiums are paid
annually, $32 if paid semi-annually, $36 if paid quarterly, and $48 if paid
monthly; (2) a one-time first-year administrative charge upon each premium of up
to $5 for each $1,000 of face amount if premiums are paid annually, $2.52 if
paid semi-annually, $1.27 if paid quarterly, and $0.43 if paid monthly; (3)
sales load charges of not more than 30% of the basic premium in the first
Contract year, not more than 10% of the basic premium in the second year, and
not more than 9% of the sum of the basic premiums to be paid in the first 20
years; (4) a premium tax charge of 2% is deducted from each basic premium; (5) a
guaranteed minimum death benefit risk charge of not more than 1.2% of each basic
premium; (6) each month, a charge for anticipated mortality based on the 1980
CSO Tables is deducted; (7) a daily charge equivalent to an annual rate of 0.35%
is deducted from the assets of the subaccounts for mortality and expense risks;
(8) if the Contract includes riders, a deduction from each premium payment will
be made for charges applicable to those riders; and (9) certain fees and
expenses are deducted from the assets of the Series Fund and Real Property
Account. Because of these charges, prospective purchasers should purchase a
Contract only if they intend and have the financial capability to keep it in
force for a substantial period. The death benefit increases or decreases monthly
(but not below the guaranteed minimum amount) depending on the investment
results of the subaccount[s] and/or the Real Property Account in which the
Contract participates. It does not change simply because a premium is paid. The
cash value also changes at a rate that depends on the investment results, but
these changes take place daily rather than monthly. Each premium payment has the
effect of adding to the cash value. For more detailed information about how the
death benefit and cash value change, see HOW A CONTRACT'S DEATH BENEFIT WILL
VARY, page 8 and HOW A CONTRACT'S CASH VALUE WILL VARY, page 10.
For a limited time, a Contract may be returned for a refund in accordance with
the terms of its "free look" provision. See SHORT-TERM CANCELLATION RIGHT OR
"FREE LOOK," page 4.
Each owner should retain a copy of the Contract document. That document,
together with the attached application, constitutes the entire agreement between
the owner and Pruco Life of New Jersey.
GENERAL INFORMATION ABOUT PRUCO LIFE INSURANCE
COMPANY OF NEW JERSEY, PRUCO LIFE OF NEW JERSEY
VARIABLE INSURANCE ACCOUNT, AND THE VARIABLE
INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey") is a
stock life insurance company, organized in 1982 under the laws of the State of
New Jersey. It is licensed to sell life insurance and annuities only in the
States of New Jersey and New York.
Pruco Life of New Jersey is a wholly-owned subsidiary of Pruco Life Insurance
Company, which in turn is a wholly-owned subsidiary of Prudential, a mutual
insurance company founded in 1875 under the laws of the State of New Jersey. As
of December 31, 1996, Prudential has invested $127 million in Pruco Life of New
Jersey through its subsidiary Pruco Life Insurance Company in connection with
Pruco Life of New Jersey's organization and operation. Prudential intends from
time to time to make additional capital contributions to Pruco Life of New
Jersey as needed to enable it to meet its reserve requirements and expenses in
connection with its business. However, Prudential is under no obligation to make
such contributions and its assets do not back the benefits payable under the
Contract. Pruco Life of New Jersey's financial statements begin on page B1 and
should be considered only as bearing upon Pruco Life of New Jersey's ability to
meet its obligations under the Contracts.
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
The Pruco Life of New Jersey Variable Insurance Account (the "Account") was
established on December 29, 1982 under New Jersey law as a separate investment
account. The Account meets the definition of a "separate account" under the
federal securities laws. The Account holds assets that are segregated from all
of Pruco Life of New Jersey's other assets.
The obligations to Contract owners and beneficiaries arising under the Contract
are general corporate obligations of Pruco Life of New Jersey. Pruco Life of New
Jersey is also the legal owner of the assets in the Account. Pruco Life of New
Jersey will maintain assets in the Account with a total market value at least
equal to the reserve and
2
<PAGE>
other liabilities relating to the variable benefits attributable to the Account.
These assets may not be charged with liabilities which arise from any other
business Pruco Life of New Jersey conducts. In addition to these assets, the
Account's assets may include funds contributed by Pruco Life of New Jersey to
commence operation of the Account and may include accumulations of the charges
Pruco Life of New Jersey makes against the Account. From time to time these
additional assets will be transferred to Pruco Life of New Jersey's general
account. Before making any such transfer, Pruco Life of New Jersey will consider
any possible adverse impact the transfer might have on the Account.
The Account is registered with the Securities and Exchange Commission ("SEC")
under the Investment Company Act of 1940 ("1940 Act") as a unit investment
trust, which is a type of investment company. This does not involve any
supervision by the SEC of the management or investment policies or practices of
the Account. For state law purposes, the Account is treated as a part or
division of Pruco Life of New Jersey. There are currently thirteen subaccounts
within the Account, each of which invests in a single corresponding portfolio of
the Series Fund. Additional subaccounts may be added in the future. The
Account's financial statements begin on page A1.
THE PRUDENTIAL SERIES FUND, INC.
The Prudential Series Fund, Inc. (the "Series Fund") is registered under the
1940 Act as an open-end diversified management investment company. Its shares
are currently sold only to separate accounts of Prudential and certain other
insurers that offer variable life insurance and variable annuity contracts. On
October 31, 1986, the Pruco Life Series Fund, Inc., an open-ended, diversified
management investment company which sold its shares only to separate accounts of
Pruco Life of New Jersey and Pruco Life Insurance Company, was merged into the
Series Fund. Prior to that date, the Account invested only in shares of the
Pruco Life Series Fund, Inc. The Account will purchase and redeem shares from
the Series Fund at net asset value. Shares will be redeemed to the extent
necessary for Pruco Life of New Jersey to provide benefits under the Contract
and to transfer assets from one subaccount to another, as requested by Contract
owners. Any dividend or capital gain distribution received from a portfolio of
the Series Fund will be reinvested immediately at net asset value in shares of
that portfolio and retained as assets of the corresponding subaccount.
Prudential is the investment advisor for the assets of each of the portfolios of
the Series Fund. Prudential's principal business address is Prudential Plaza,
Newark, New Jersey 07102-3777. Prudential has a Service Agreement with its
wholly-owned subsidiary The Prudential Investment Corporation ("PIC"), which
provides that, subject to Prudential's supervision, PIC will furnish investment
advisory services in connection with the management of the Series Fund. In
addition, Prudential has entered into a Subadvisory Agreement with its
wholly-owned subsidiary Jennison Associates ("Jennison"), under which Jennison
furnishes investment advisory services in connection with the management of the
Prudential Jennison Portfolio. Further detail is provided in the prospectus and
statement of additional information for the Series Fund. Prudential , PIC, and
Jennison are registered as investment advisors under the Investment Advisers Act
of 1940.
As an investment advisor, Prudential charges the Series Fund a daily investment
management fee as compensation for its services. In addition to the investment
management fee, each portfolio incurs certain expenses, such as accounting and
custodian fees. See CHARGES AND EXPENSES, page 6.
It is conceivable that in the future it may become disadvantageous for both
variable life insurance and variable annuity contract separate accounts to
invest in the same underlying mutual fund. Although neither the companies which
invest in the Series Fund, nor the Series Fund currently foresees any such
disadvantage, the Series Fund's Board of Directors intends to monitor events in
order to identify any material conflict between variable life insurance and
variable annuity contract owners and to determine what action, if any, should be
taken in response thereto. Material conflicts could result from such things as:
(1) changes in state insurance law; (2) changes in federal income tax law; (3)
changes in the investment management of any portfolio of the Series Fund; or (4)
differences between voting instructions given by variable life insurance and
variable annuity contract owners.
A FULL DESCRIPTION OF THE SERIES FUND, ITS INVESTMENT OBJECTIVES, MANAGEMENT,
POLICIES, AND RESTRICTIONS, ITS EXPENSES, THE RISKS ATTENDANT TO INVESTMENT
THEREIN-INCLUDING ANY RISKS ASSOCIATED WITH INVESTMENT IN THE HIGH YIELD BOND
PORTFOLIO, AND ALL OTHER ASPECTS OF ITS OPERATION IS CONTAINED IN THE ATTACHED
PROSPECTUS FOR THE SERIES FUND AND IN ITS STATEMENT OF ADDITIONAL INFORMATION,
WHICH SHOULD BE READ IN CONJUNCTION WITH THIS PROSPECTUS. THERE IS NO ASSURANCE
THAT THE INVESTMENT OBJECTIVES WILL BE MET.
PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT
The Pruco Life of New Jersey Variable Contract Real Property Account (the "Real
Property Account") is a separate account of Pruco Life of New Jersey that,
through a general partnership formed by Prudential and two of its subsidiaries,
invests primarily in income-producing real property such as office buildings,
shopping centers, agricultural land, hotels, apartments or industrial
properties. It also invests in mortgage loans and other real estate-related
investments, including sale-leaseback transactions. The objectives of the Real
Property Account and
3
<PAGE>
the partnership are to preserve and protect capital, provide for compounding of
income as a result of reinvestment of cash flow from investments, and provide
for increases over time in the amount of such income through appreciation in the
value of assets.
The partnership has entered into an investment management agreement with
Prudential, under which Prudential selects the properties and other investments
held by the partnership. Prudential charges the partnership a daily fee for
investment management which amounts to 1.25% per year of the average daily gross
assets of the partnership.
A FULL DESCRIPTION OF THE REAL PROPERTY ACCOUNT, ITS MANAGEMENT, POLICIES, AND
RESTRICTIONS, ITS CHARGES AND EXPENSES, THE RISKS ATTENDANT TO INVESTMENT
THEREIN, THE PARTNERSHIP'S INVESTMENT OBJECTIVES, AND ALL OTHER ASPECTS OF THE
REAL PROPERTY ACCOUNT'S AND THE PARTNERSHIP'S OPERATIONS IS CONTAINED IN THE
ATTACHED PROSPECTUS FOR THE REAL PROPERTY ACCOUNT, WHICH SHOULD BE READ TOGETHER
WITH THIS PROSPECTUS BY ANY CONTRACT OWNER CONSIDERING THE REAL ESTATE
INVESTMENT OPTION. THERE IS NO ASSURANCE THAT THE INVESTMENT OBJECTIVES WILL BE
MET.
WHICH INVESTMENT OPTION SHOULD BE SELECTED?
A broad objective of the Contract is to provide benefits that will increase in
value if favorable investment results are achieved. Contract owners have a large
number of options as to how the amounts credited to their Contracts will be
invested. Historically, for investments held over relatively long periods, the
investment performance of common stocks has generally been superior to that of
short or long-term debt securities, even though common stocks have been subject
to much more dramatic changes in value over short periods of time. Accordingly,
the Stock Index, Equity Income, Prudential Jennison, Small Capitalization Stock,
Equity, Global, or Natural Resources Portfolios may be desirable options for
Contract owners who are willing to accept such volatility in their Contract
values. Each of these equity portfolios involves somewhat different investment
risks, policies, and programs.
Some Contract owners may prefer the somewhat greater protection against loss of
principal (and reduced chance of high total return) provided by the Government
Income or Diversified Bond Portfolios, while others, who desire even greater
safety of principal, may prefer the Money Market Portfolio, recognizing that the
level of short-term rates may change rather rapidly. Contract owners not
interested in common stocks but willing to take risks and seeking the
possibility of a high total return may prefer the High Yield Bond Portfolio,
recognizing that with higher yielding, lower quality bonds the risks are
greater. Some Contract owners may wish to divide their funds among two or more
of the portfolios. Some may wish to obtain diversification by relying on
Prudential's judgment for an appropriate asset mix by choosing one of the
Balanced Portfolios. The Real Property Account permits a Contract owner to
diversify his or her investment under the Contract to include an interest in a
pool of income-producing real property, and real estate is often considered to
be a hedge against inflation.
Each Contract owner must make his or her own choice that takes into account how
willing he or she is to accept investment risks, the manner in which his or her
other assets are invested, and his or her own predictions about what investment
results are likely to be in the future. Prudential recommends against frequent
transfers among the several options as experience generally indicates that
"market timing" investing, particularly by non-professional investors, is likely
to prove unsuccessful.
DETAILED INFORMATION FOR PROSPECTIVE
CONTRACT OWNERS
REQUIREMENTS FOR ISSUANCE OF A CONTRACT
As of January 1, 1992, these Contracts are no longer available for sale. The
minimum initial guaranteed death benefit that can be applied for is $25,000. The
Contract may generally be issued on insureds below the age of 76. Before issuing
any Contract, Pruco Life of New Jersey requires evidence of insurability which
may include a medical examination. Non-smokers who meet preferred underwriting
requirements are offered the most favorable premium rate. A higher premium is
charged if an extra mortality risk is involved. These are the current
underwriting requirements. The Company reserves the right to change them on a
non-discriminatory basis.
SHORT-TERM CANCELLATION RIGHT OR "FREE LOOK"
Generally, a Contract may be returned for a refund within 10 days after it is
received by the Contract owner, within 45 days after Part I of the application
for insurance is signed or within 10 days after Pruco Life of New Jersey mails
or delivers a Notice of Withdrawal Right, whichever is latest. Some states allow
a longer period of time during which a Contract may be returned for a refund. A
refund can be requested by mailing or delivering the Contract to the
representative who sold it or to the Home Office specified in the Contract. A
Contract returned according to this provision shall be deemed void from the
beginning. The Contract owner will then receive a refund of all premium payments
made, plus or minus any change due to investment experience. However, if
applicable law so
4
<PAGE>
requires, the Contract owner who exercises his or her short-term cancellation
right will receive a refund of all premium payments made, with no adjustment for
investment experience.
PREMIUMS
Premiums on the Contract are level, fixed, and payable in advance during the
insured's lifetime on an annual, semi-annual, quarterly or monthly basis. If
paid more often than annually, an extra fee will be charged to compensate Pruco
Life of New Jersey for the additional processing costs (see CHARGES AND
EXPENSES, page 6) and for the loss of interest (computed generally at an annual
rate of 8%) incurred because premiums are paid throughout rather than at the
beginning of each Contract year. The premium amount depends on the Contract's
face amount, the insured's sex (except where unisex rates apply) and age at
issue, and the insured's risk classification. Contract owners who pay premiums
other than on a monthly basis will receive notice that a premium is due about 3
weeks before each due date. Contract owners who pay premiums monthly will
receive each year a book with twelve coupons that will serve as a reminder. With
Pruco Life of New Jersey's consent, an owner may change the frequency of premium
payments.
A Contract owner may elect to have monthly premiums paid automatically under the
"Pru-Matic Premium Plan" by pre-authorized transfers from a bank checking
account. Some Contract owners may also be eligible to have monthly premiums paid
by pre-authorized deductions from an employer's payroll.
The following table shows representative standard and preferred annual premium
amounts for various face amounts:
- ----------------------------------------------------------------------
$25,000 FACE $100,000 FACE
AMOUNT AMOUNT
----------------------- -----------------------
PREFERRED STANDARD PREFERRED STANDARD
- ----------------------------------------------------------------------
Male, age 25 $270.00 $283.25 $ 990.00 $1,043.00
at issue
- ----------------------------------------------------------------------
Female, age 35 $333.75 $342.75 $1,245.00 $1,281.00
at issue
- ----------------------------------------------------------------------
Male, age 40 $449.00 $484.50 $1,706.00 $1,848.00
at issue
- ----------------------------------------------------------------------
The following table compares annual and monthly premiums for insureds who are
standard risks. Note that in these examples the sum of 12 monthly premiums for a
particular Contract is approximately 105% to 110% of the annual premium for that
Contract.
- ----------------------------------------------------------------------
$25,000 FACE $100,000 FACE
AMOUNT AMOUNT
----------------------- -----------------------
MONTHLY ANNUAL MONTHLY ANNUAL
- ----------------------------------------------------------------------
Male, age 25 $26.00 $283.25 $ 92.00 $1,043.00
at issue
- ----------------------------------------------------------------------
FEMALE, AGE 35 $31.00 $342.75 $112.00 $1,281.00
AT ISSUE
- ----------------------------------------------------------------------
MALE, AGE 40 $43.25 $484.50 $161.00 $1,848.00
AT ISSUE
- ----------------------------------------------------------------------
There is a grace period of 31 days for each premium except the first one. During
the grace period, the Contract will continue in effect. A contract will lapse if
a premium has not been paid by the end of the grace period. Upon lapse, the
Contract owner will have several options. These may include continuing the
amount of insurance coverage in effect on the due date of the unpaid premium,
less any Contract debt, for a fixed period, continuing a lesser amount of
insurance for the lifetime of the insured, or surrender of the Contract for its
net cash value. See OPTIONS ON LAPSE, page 18.
5
<PAGE>
PREMIUM ADJUSTMENT
If the insured dies during the grace period before the premium is paid, the
portion of the unpaid premium that covers the period from the due date to the
date of death will be deducted from the death benefit. If the insured dies while
no premium is in default, Pruco Life of New Jersey will increase the death
benefit by the portion of the last premium that covers the period subsequent to
the date of death.
ALLOCATION OF PREMIUMS
Net premium payments--that is, the amount of the premiums less the deductions
described below in items 1 through 5 under CHARGES AND EXPENSES--will be placed
as of the end of the valuation period when due (not when received) in one or
more subaccounts of the Account and/or the Real Property Account, as directed by
the Contract owner. Any premium payments received prior to the due date will be
held in Pruco Life of New Jersey's general account, and the net premium will not
be credited to the subaccounts selected by a Contract owner until the due date.
Provided the Contract is not in default, the Contract owner may change the way
in which subsequent premiums are allocated by giving written notice to a Home
Office or by telephoning that Home Office, provided the Contract owner is
enrolled to use the Telephone Transfer System. There is no charge for
reallocating future net premiums. If any portion of a net premium is allocated
to a particular investment option, that portion must be at least 10% on the date
the allocation takes effect. All percentage allocations must be in whole
numbers. For example, 33% can be selected but 33 1/3% cannot.
CHARGES AND EXPENSES
Every charge made by Pruco Life of New Jersey under the Contract is described
below.
1. If premiums are paid annually, there is an annual administrative charge of
$30 for administrative expenses incurred, among other things, for billing,
collecting premiums, processing claims, paying cash values, making Contract
changes, keeping records, and communicating with Contract owners. If
premiums are paid more frequently, the annual administrative charge will be
higher to reflect the additional expense incurred in collecting and
processing more frequent premiums. The charge will be $32 if premiums are
paid semi-annually, $36 if premiums are paid quarterly, and $48 if premiums
are paid monthly. During 1996, 1995 and 1994, Pruco Life of New Jersey
received a total of approximately $1,499,381, $1,579,409 and $1,679,328,
respectively, in annual administrative charges.
2. There is a charge to compensate Pruco Life of New Jersey for the cost of
selling the Contract. This cost includes sales commissions, advertising,
and the printing of prospectuses and sales literature. This charge is
generally called the "sales load." It is not more than 30% of the basic
premium (defined below) in the first Contract year, not more than 10% of
the basic premium in the second year, and not more than 9% of the sum of
the basic premiums to be paid in the first 20 years. Also, in any year it
is never more than in a prior year. The basic premium is what the gross
annual premium for the Contract, less the annual administrative charge,
would be if the insured were in the standard rating class and if the
Contract had no optional insurance benefits. During 1996, 1995 and 1994,
Pruco Life of New Jersey received a total of approximately $1,430,362,
$1,530,590 and $1,654,941 respectively, in sales load charges.
3. There is a premium tax charge of 2% of each basic premium. Pruco Life of
New Jersey may collect more for this charge than it actually pays for
premium taxes. During 1996, 1995 and 1994, Pruco Life of New Jersey
received a total of approximately $286,525, $307,278 and $331,560,
respectively, in charges for payment of such taxes.
4. There is a charge of not more than 1.2% of each basic premium to compensate
Pruco Life of New Jersey for the risk that an insured may die at a time
when the death benefit exceeds the benefit that would have been payable in
the absence of a minimum guarantee. During 1996, 1995 and 1994, Pruco Life
of New Jersey received a total of approximately $171,915, $184,367 and
$198,936, respectively, for this risk charge.
When premiums are paid more frequently than annually, these charges will be
deducted proportionately from each premium payment.
If there is an extra premium for optional insurance benefits or for an
extra mortality risk, or if there is a premium discount because the insured
is in the preferred rating class, the amount allocated to the separate
account will be equal to the amount that would have been allocated if the
insured had been in the standard rating class and there were no optional
insurance benefits.
5. Apart from the deductions from gross premiums just described, the amounts
held in the Account and/or the Real Property Account attributable to each
Contract are subject to a mortality charge and are reduced once a month to
compensate Pruco Life of New Jersey for the anticipated cost of paying
death benefits to the
6
<PAGE>
beneficiaries of those persons who die during that period. The amount of
this reduction is based on the 1980 Commissioner's Standard Ordinary
Mortality Table (the "1980 CSO Table").
6. There is also a daily charge to the Account and/or the Real Property
Account for the mortality and expense risks that Pruco Life of New Jersey
assumes. This charge is made daily at an effective annual rate of 0.35% of
the value of the Account's and/or the Real Property Account's assets. The
mortality risk assumed is that insureds may live for a shorter period of
time than that predicted by the 1980 CSO Table. The expense risk assumed is
that expenses incurred in issuing and administering the Contracts will be
greater than Pruco Life of New Jersey estimated. During 1996, 1995 and
1994, Pruco Life of New Jersey received a total of approximately $470,315,
$406,290 and $359,093, respectively, in mortality and expense risk charges.
7. If the Contract includes riders, a deduction from each premium payment will
be made for charges applicable to those riders.
8. An investment advisory fee is deducted daily from each portfolio at a rate,
on an annualized basis, from 0.35% for the Stock Index Portfolio to 0.75%
for the Global Portfolio. The expenses incurred in conducting the
investment operations of the portfolios (such as custodian fees and
preparation and distribution of annual reports) are paid out of the
portfolio's income. These expenses also vary from portfolio to portfolio.
The total expenses of each portfolio for the year 1996 expressed as a
percentage of the average assets during the year are shown below:
- --------------------------------------------------------------------------------
OTHER TOTAL
INVESTMENT EXPENSES EXPENSES
PORTFOLIO ADVISORY (AFTER EXPENSE (AFTER EXPENSE
FEE REIMBURSEMENT)* REIMBURSEMENT)*
- --------------------------------------------------------------------------------
MONEY MARKET 0.40% 0.00%* 0.40%*
DIVERSIFIED BOND 0.40% 0.00%* 0.40%*
GOVERNMENT INCOME 0.40% 0.06% 0.46%
CONSERVATIVE BALANCED 0.55% 0.00%* 0.40%*
FLEXIBLE MANAGED 0.60% 0.00%* 0.40%*
HIGH YIELD BOND 0.55% 0.08% 0.63%
STOCK INDEX 0.35% 0.05% 0.40%
EQUITY INCOME 0.40% 0.05% 0.45%
EQUITY 0.45% 0.00%* 0.40%*
PRUDENTIAL JENNISON 0.60% 0.06% 0.66%
SMALL CAPITALIZATION STOCK 0.40% 0.16% 0.56%
GLOBAL 0.75% 0.17% 0.92%
NATURAL RESOURCES 0.45% 0.07% 0.52%
- --------------------------------------------------------------------------------
* Some investment management fees and expenses charged to the Series Fund may
be higher than those that were previously charged to the Pruco Life Series
Fund, Inc. (0.4%), in which the Account previously invested. For the Money
Market, Diversified Bond, Conservative Balanced, Flexible Managed, and
Equity Portfolios, Pruco Life of New Jersey will make daily adjustments
that will offset the effect on Contract owners of any higher investment
management fees and expenses charged against the Series Fund. Without such
adjustments the portfolio expenses indirectly borne by a Contract owner,
expressed as a percentage of the average daily net assets by portfolio,
would have been 0.44% for the Money Market Portfolio, 0.45% for the
Diversified Bond Portfolio, 0.59% for the Conservative Balanced Portfolio,
0.64% for the Flexible Managed Portfolio and 0.50% for the Equity
Portfolio. No such offset will be made with respect to the remaining
portfolios, which had no counterparts in the Pruco Life Series Fund, Inc.
The deductions and charges described above will not be increased by Pruco Life
of New Jersey with respect to any Contract in effect regardless of any changes
in longevity or increases in expenses.
The earnings of the Account are taxed as part of the operations of Pruco Life of
New Jersey. No charge is being made currently to the Account for Company federal
income taxes. Pruco Life of New Jersey will review the question of a charge to
the Account for Company federal income taxes periodically. Such a charge may be
made in future years for any federal income taxes that would be attributable to
the Contracts.
Under current laws Pruco Life of New Jersey may incur state and local taxes (in
addition to premium taxes) in several states. At present, these taxes are not
significant and they are not charged against the Contracts or the Account. If
there is a material change in applicable state or local tax laws, the imposition
of any such taxes upon Pruco Life of New Jersey that are attributable to the
Account may result in a corresponding charge against the Account.
7
<PAGE>
More detailed information is contained in the attached prospectus for the Series
Fund and its statement of additional information.
TRANSFERS
Provided no premium is overdue or if the Contract is in force as variable
reduced paid-up insurance (see OPTIONS ON LAPSE, page 18), the owner may, up to
four times in each Contract year, transfer amounts from one subaccount to
another subaccount or to the Real Property Account. Currently, Contract owners
may make additional transfers with our consent. There is no charge. All or a
portion of the amount credited to a subaccount may be transferred. Transfers to
and from the Real Property Account are subject to restrictions described in the
prospectus for that investment option.
Transfers among subaccounts or to the Real Property Account will take effect as
of the end of the valuation period in which a proper transfer request is
received at a Home Office. The "valuation period" means the period of time from
one determination of the value of the amount invested in a subaccount to the
next. Such determinations are made when the net asset values of the portfolios
of the Series Fund are calculated, which is generally at 4:15 p.m. New York City
time on each day during which the New York Stock Exchange is open. The request
may be in terms of dollars, such as a request to transfer $10,000 from one
subaccount to another, or may be in terms of a percentage reallocation among
subaccounts. In the latter case, as with premium reallocations, the percentages
must be in whole numbers. The Contract owner may transfer amounts by proper
written notice to a Home Office or by telephone, provided the Contract owner is
enrolled to use the Telephone Transfer System. Contract owners will
automatically be enrolled to use the Telephone Transfer System unless the
Contract is jointly owned or the Contract owner elects not to have this
privilege. Telephone transfers may not be available on policies that are
assigned, see ASSIGNMENT, page 20, depending on the terms of the assignment.
Pruco Life of New Jersey has adopted procedures designed to ensure that requests
by telephone are genuine. The Company will not be held liable for following
telephone instructions that it reasonably believes to be genuine. Pruco Life of
New Jersey cannot guarantee that owners will be able to get through to complete
a telephone transfer during peak periods such as periods of drastic economic or
market change.
HOW A CONTRACT'S DEATH BENEFIT WILL VARY
Although a Contract's death benefit can never be less than the Contract's
guaranteed minimum amount (assuming no outstanding Contract debt or premium in
default), it will change on the first day of each Contract month after the first
month by an amount that depends on the investment performance of the subaccounts
and/or the Real Property Account in which the Contract participates. The first
Contract month starts on the Contract date. When the first premium is paid with
the application, the Contract date is ordinarily the later of the date of the
application or the date of any medical examination. If the first premium is not
paid with the application, the Contract date is ordinarily 2 or 3 days after the
application is approved by Pruco Life of New Jersey so that it either coincides
with or is prior to the date on which the first premium is paid. For the purpose
of calculating benefits, the initial net premium is deemed to be placed in the
Account on the Contract date. Each succeeding Contract month starts on the same
date in the month as the Contract date. The first day of each Contract month is
called the "Monthly date."
To simplify the following discussion, it is assumed that all of the net premiums
under a Contract have been allocated to a single subaccount. If the value of the
assets relating to the Contract held in the subaccount has increased due to
investment performance during the Contract month at greater than a 4% annual
rate, the Contract's death benefit will increase on the first day of the next
Contract month; if the value of these assets decreases or increases at less than
a 4% annual rate, the death benefit will decrease (but not below the guaranteed
minimum amount). The reason the assets of the subaccount relating to a Contract
must increase from one Monthly date to the next at a rate of more than 4% a year
in order for the death benefit to increase is that Pruco Life of New Jersey, in
determining the premiums for the Contract, has assumed that the value of the
assets will increase due to investment performance at a rate of 4% a year.
The exact amount by which the death benefit changes is determined by an
actuarial computation that is based, among other things, upon the age and sex
(except where unisex rates apply) of the insured, the size of the Contract, and
the number of years it has been in effect, as well as by the investment results
of the subaccount in which the Contract participates. In general, a change in
the dollar value of a subaccount's assets due to investment results will produce
a larger change in the death benefit for a younger insured than for an older
insured and a slightly larger change for a female insured than for a male.
Because the assets relating to a Contract tend to grow as net premiums are paid,
the dollar change in the death benefit will tend to be greater for a Contract
that has been in effect for a long time than for one that has been in effect for
a short time, despite the fact that the insured is older.
8
<PAGE>
Illustrations of how the death benefit for representative Contracts will vary
over extended periods, assuming several different uniform investment results,
are included in tables on pages T1 and T2 and on pages C1 and C2 of this
prospectus. The examples set forth below illustrate death benefits. These
examples set forth below also assume a total Series Fund expense ratio of 0.51%
(taking into account the offsets described under CHARGES AND EXPENSES on page
6).
The following two examples show, for the same Contracts, how the death benefit
will vary over a selected year for two hypothetical investment results that are
different from those shown in the tables and thus provide additional
comparisons.
Example No. 1. Contract with $50,000 guaranteed death benefit and annual
premiums in effect for 18 years, during which the value of the assets in the
subaccount increased due to investment performance at a uniform rate of 7.14%
per year. In the 19th year the value of the assets increases at a uniform rate
of 8.14%. (These percentages correspond to gross annual investment returns in
the corresponding Series Fund portfolio of 8% and 9% per year, respectively.)
- ----------------------------------------------
DEATH BENEFIT DEATH BENEFIT
INSURED END OF YEAR 18 END OF YEAR 19
- ----------------------------------------------
Male, age 25 $59,406 $60,878
at issue
- ----------------------------------------------
Male, age 40 $60,533 $62,149
at issue
- ----------------------------------------------
Example No. 2. Same assumptions as in Example No. 1 except that the value of the
assets increases by 1.14% in the 19th year. (This percentage corresponds to a
gross annual investment return in the corresponding Series Fund portfolio of
2%.)
- ----------------------------------------------
DEATH BENEFIT DEATH BENEFIT
INSURED END OF YEAR 18 END OF YEAR 19
- ----------------------------------------------
Male, age 25 $59,406 $58,390
at issue
- ----------------------------------------------
Male, age 40 $60,533 $59,417
at issue
- ----------------------------------------------
In these examples the changes are slightly greater for the Contract issued on
the older insured because the premiums for a $50,000 Contract issued at age 40
are greater than those for one issued at age 25, and the dollar amount of the
increase resulting from a 7.14% compounded return upon the assets in the Account
relating to the Contract on the older insured is therefore larger. The changes
in the death benefit are greater even though the increase or decrease in the
death benefit resulting from a $1 change in the assets relating to the Contract
is greater for a younger insured.
Example No. 3. This example and the one following provide information for a
Contract with an $800 annual premium, in effect for 18 years, during which the
value of the assets in the subaccount increased due to investment performance at
a uniform rate of 7.14% per year. In the 19th year the value of the assets
increases at a uniform rate of 8.14%. (These percentages correspond to gross
annual investment returns in the corresponding Series Fund portfolio of 8% and
9% per year, respectively.)
9
<PAGE>
- ---------------------------------------------------------------------
GUARANTEED Death Benefit Death Benefit
INSURED DEATH BENEFIT End of Year 18 End of Year 19
- ---------------------------------------------------------------------
Male, age 25 $76,012 $90,312 $92,548
at issue
- ---------------------------------------------------------------------
Male, age 40 $42,354 $51,277 $52,646
at issue
- ---------------------------------------------------------------------
Example No. 4. Same assumptions as Example No. 3 except that the value of the
assets increases by 1.14% in the 19th year. (This percentage corresponds to a
gross annual investment return in the corresponding Series Fund portfolio of
2%.)
- ---------------------------------------------------------------------
GUARANTEED Death Benefit Death Benefit
INSURED DEATH BENEFIT End of Year 18 End of Year 19
- ---------------------------------------------------------------------
Male, age 25 $76,012 $90,312 $88,767
at issue
- ---------------------------------------------------------------------
Male, age 40 $42,354 $51,277 $50,332
at issue
- ---------------------------------------------------------------------
These examples show how the same investment results affect the death benefit
more significantly for a younger insured.
If the assets in the subaccount in which the Contract participates have earned
less than 4%, and the death benefit accordingly equals the guaranteed minimum
amount, Pruco Life of New Jersey will keep a record of what the death benefit
would have been had there not been a guaranteed minimum. If later investment
results are favorable, that is if the value of the assets in the subaccount
later increases at a rate greater than 4% a year, the death benefit will not
become more than the guaranteed minimum amount until the earlier unfavorable
investment results have been offset. For example, suppose for the first 3 years
the value of the assets in the subaccount increases due to investment
performance at only a rate of 2% per year. The death benefit will nevertheless
remain at the guaranteed minimum amount. If the value of the assets increases at
a rate of 8% in the fourth year, this might not be enough to offset the earlier
unfavorable investment results. If so, the death benefit will not increase.
For further information, see the tables on pages T1 and T2. They show for
various insureds how a Contract's death benefit and cash value will change if
the gross investment return in the selected Series Fund portfolio[s] is 0%, 4%
or 8%. In addition, the tables on pages C1 and C2 show, for various insureds,
how a Contract's death benefit and cash value will change if the gross
investment return is 0%, 6% or 12%. The registration statement of the Account on
file with the SEC contains a full and precise description of how the death
benefit and cash value of a Contract are determined.
HOW A CONTRACT'S CASH VALUE WILL VARY
A variable life insurance Contract has a net cash value which the owner may get
by surrender of the Contract while the insured is living. Unlike traditional
fixed-benefit whole-life insurance, however, a Contract's cash value is not
known in advance even if it is assumed that premiums are paid when due, because
it varies daily with the investment performance of the subaccount[s] and/or the
Real Property Account in which the Contract participates.
A Contract's value upon surrender is its "net cash value," which is the cash
value less any outstanding Contract debt. See CONTRACT LOANS, page 15. The
following discussion of cash values assumes that there is no Contract debt, that
no premium is in default, and that the net premiums have all been allocated to a
single subaccount.
During the early months of the first Contract year, the cash value will be very
small or zero because of the charges made in connection with issuance of the
Contract. On the Contract date the cash value is equal to the first net premium,
unless, as may be the case throughout the first Contract year, there are unpaid
issue charge installments which reduce the cash value. Thereafter, the cash
value on every Monthly date will be equal to the cash value on the preceding
Monthly date increased or decreased by the change in the value of the assets
relating to the Contract, less the amount Pruco Life of New Jersey needs to
provide for the death benefit for the period between the two dates. If a premium
is due and paid on a Monthly date, the cash value on that date is further
increased by the amount of the net premium. The cash value between Monthly dates
is computed in a similar way.
10
<PAGE>
While the death benefit increases if the value of the assets in the subaccount
increases at a rate of more than 4% a year, the investment performance needed to
produce an increase in the cash value cannot be stated in advance. It is
different for insureds of different age and sex (except where unisex rates
apply) at issue. It is also different for Contracts on comparable insureds if
those Contracts have been in effect for different lengths of time. Moreover, the
crediting of the net premium on the due date (even if it has not yet been paid)
does not result in any change in the death benefit, while the cash value is
assumed to increase by exactly the amount of the net premium. But if the net
premium is not paid before the end of the grace period, or if the Contract is
surrendered before then, the cash value is adjusted downward to take into
account the failure to pay the premium on the due date.
The tables on pages T1 and T2 and on pages C1 and C2 of this prospectus
illustrate what the cash values would be for representative Contracts over
extended periods, assuming uniform investment results, together with information
about the aggregate premiums paid under these Contracts. The examples set forth
below assume a total Series Fund expense ratio of 0.51% (taking into account the
offsets described under CHARGES AND EXPENSES on page 6).
The following two examples show, for the same Contracts, how the cash values
will vary over a selected year for two hypothetical investment results that are
different from those shown in the tables.
Example No. 1. Contract with $50,000 guaranteed death benefit and annual
premiums in effect for 18 years, during which the value of the assets in the
subaccount increased due to investment performance at a uniform rate of 7.14%
per year. In the 19th year the value of the assets increases at a uniform rate
of 8.14%. (These percentages correspond to gross annual investment returns in
the corresponding Series Fund portfolio of 8% and 9% per year, respectively.)
- ------------------------------------------------------
CASH VALUE CASH VALUE
INSURED END OF YEAR 18 END OF YEAR 19
- ------------------------------------------------------
Male, age 25 $11,836 $13,089
at issue
- ------------------------------------------------------
Male, age 40 $20,070 $22,046
at issue
- ------------------------------------------------------
Example No. 2. Same assumptions as in Example No. 1 except that the value of the
assets increases by 1.14% in the 19th year. (This percentage corresponds to a
gross annual investment return in the corresponding Series Fund portfolio of
2%.)
- ------------------------------------------------------
CASH VALUE CASH VALUE
INSURED END OF YEAR 18 END OF YEAR 19
- ------------------------------------------------------
Male, age 25 $11,836 $12,238
at issue
- ------------------------------------------------------
Male, age 40 $20,070 $20,607
at issue
- ------------------------------------------------------
The changes are greater for the older insured because the premiums (and hence
the assets in the Account relating to the Contract on that insured) are greater
and the same rate of increase therefore produces a greater dollar amount.
Example No. 3. This example and the one following provide information for a
Contract with an $800 annual premium, in effect for 18 years, during which time
the value of the assets in the subaccount increased due to investment
performance at a uniform rate of 7.14% per year. In the 19th year the value of
the assets increases at a uniform rate of 8.14%. (These percentages correspond
to gross annual investment returns in the corresponding Series Fund portfolio of
8% and 9% per year, respectively.)
11
<PAGE>
- ------------------------------------------------------
CASH VALUE CASH VALUE
INSURED END OF YEAR 18 END OF YEAR 19
- ------------------------------------------------------
Male, age 25 $17,994 $19,899
at issue
- ------------------------------------------------------
Male, age 40 $17,001 $18,675
at issue
- ------------------------------------------------------
Example No. 4. Same assumptions as in Example No. 3 except that the value of the
assets increases by 1.14% in the 19th year. (This percentage corresponds to a
gross annual investment return in the corresponding Series Fund portfolio of
2%.)
- ------------------------------------------------------
CASH VALUE CASH VALUE
INSURED END OF YEAR 18 END OF YEAR 19
- ------------------------------------------------------
Male, age 25 $17,994 $18,605
at issue
- ------------------------------------------------------
Male, age 40 $17,001 $17,456
at issue
- ------------------------------------------------------
The last two examples might be compared with Examples No. 3 and 4 above. Note
that while the same premium results in a larger death benefit for the younger
insured, the cash values for the younger and older insureds are quite similar.
Note also that while the death benefit decreases if the investment return is
1.14% per year, the cash value increases.
Because a substantial part of each premium is used to provide life insurance
protection, the cash values cannot meaningfully be compared with the amounts
that would have been available had the gross premiums been invested without
obtaining life insurance protection.
SURRENDER OF A CONTRACT FOR ITS NET CASH VALUE
A Contract may be surrendered in whole or in part for its net cash value while
the insured is living. Surrendering a Contract in part involves splitting the
Contract into two Contracts. One is surrendered for its net cash value; the
other is continued in force on the same terms as the original Contract except
that premiums and values will be appropriately reduced. The Contract continued
must have a face amount of at least $25,000, and its premium will be based on
the new face amount. Surrender of all or part of a Contract may have tax
consequences. See TAX TREATMENT OF CONTRACT BENEFITS, page 16.
To surrender a Contract in whole or in part, the owner must deliver or mail it,
together with a written request in a form that meets Pruco Life of New Jersey's
needs, to a Home Office. The net cash value of a surrendered Contract will be
determined as of the valuation period such notice is received in a Home Office.
WITHDRAWAL OF A PORTION OF A CONTRACT'S NET CASH VALUE
Pruco Life of New Jersey will permit a Contract owner to withdraw a portion of
the Contract's net cash value (generally that resulting from investment
performance in excess of 4% a year) without surrendering the Contract, provided
that the death benefit is reduced by the amount of paid-up whole life insurance
that the cash value withdrawn would have purchased for that Contract owner, and
that the guaranteed minimum death benefit is reduced so that the difference
between the death benefit and the guaranteed minimum death benefit is the same
percentage of cash value after the withdrawal as before. The right to withdraw
such excess net cash value may be usefully compared with a partial surrender. As
noted above, a partial surrender essentially involves splitting an existing
Contract into two Contracts and surrendering one for its net cash value; the
death benefit, the guaranteed minimum death benefit, and the cash value of the
continuing Contract will all be proportionately reduced and a new lower
scheduled premium will henceforth be payable. If a Contract owner elects to
withdraw excess cash value, the scheduled premium is not reduced. The cash value
is, of course, reduced by exactly the amount of the withdrawal. Both the death
benefit and the guaranteed minimum death benefit are also reduced but by a
lesser amount than they would be under a partial surrender. It is important to
note, however, that if the face amount is decreased at any time during the first
7 Contract years, the Contract might be classified as a Modified Endowment
Contract. For a brief discussion of the potential tax consequences of a Contract
owner's withdrawal of the excess cash value, see TAX TREATMENT OF CONTRACT
BENEFITS, page 16.
12
<PAGE>
Upon request, Pruco Life of New Jersey will tell a Contract owner the amount of
the net cash value that may be withdrawn in this manner and the amount of the
corresponding reductions in the death benefit and guaranteed minimum death
benefit for that or any lesser amount of cash value withdrawn. A Contract owner
is able to exercise the right to withdraw a portion of the Contract's cash value
either on an isolated or occasional basis or automatically every year, to the
extent investment performance warrants, for the purpose of applying partial cash
value withdrawals toward the payment of premiums on the Contract. To exercise
this right, a Contract owner must deliver or mail a written request in a form
that meets Pruco Life of New Jersey's needs to a Home Office.
WHEN PROCEEDS ARE PAID
Pruco Life of New Jersey will generally pay any death benefit, cash value or
loan proceeds within 7 days after receipt at a Home Office of all the documents
required for such a payment. Other than the death benefit, which is determined
as of the date of death, the amount will be determined as of the end of the
valuation period in which the necessary documents are received at a Home Office.
However, Pruco Life of New Jersey may delay payment of proceeds from the
subaccount[s] and the variable portion of the death benefit due under the
Contract if the disposal or valuation of the Account's assets is not reasonably
practicable because the New York Stock Exchange is closed for other than a
regular holiday or weekend, trading is restricted by the SEC or the SEC declares
that an emergency exists.
With respect to a Contract in force as extended term or fixed reduced paid-up
insurance, Pruco Life of New Jersey expects to pay any cash value promptly upon
request. However, Pruco Life of New Jersey has the right to delay payment of
such cash value for up to 6 months (or a shorter period if required by
applicable law). Pruco Life of New Jersey will pay interest of at least 3% a
year if it delays such a payment for 30 days or more (or a shorter period if
required by applicable law).
LIVING NEEDS BENEFIT
Contract applicants may elect to add the LIVING NEEDS BENEFIT(sm) to their
Contracts at issue. The benefit may vary state-by-state. It can generally be
added only to Contracts of $50,000 or more or when the aggregate face amounts of
the insured's eligible contracts equal $50,000 or more.
Subject to state regulatory approval, the LIVING NEEDS BENEFIT allows the
Contract owner to elect to receive an accelerated payment of all or part of the
Contract's death benefit, adjusted to reflect current value, at a time when
certain special needs exist. The adjusted death benefit will always be less than
the death benefit, but will generally be greater than the Contract's cash
surrender value. One or both of the following options may be available. A Pruco
Life of New Jersey representative should be consulted as to whether additional
options may be available.
Terminal Illness Option. This option is available if the insured is diagnosed as
terminally ill with a life expectancy of 6 months or less. When satisfactory
evidence is provided, Pruco Life of New Jersey will provide an accelerated
payment of the portion of the death benefit selected by the Contract owner as a
LIVING NEEDS BENEFIT. The Contract owner may (1) elect to receive the benefit in
a single sum or (2) receive equal monthly payments for 6 months. If the insured
dies before all of the payments have been made, the present value of the
remaining payments will be paid to the beneficiary designated in the Living
Needs Benefit claim form in a single sum.
Nursing Home Option. This option is available after the insured has been
confined to an eligible nursing home for 6 months or more. When satisfactory
evidence is provided, including certification by a licensed physician, that the
insured is expected to remain in the nursing home until death, Pruco Life of New
Jersey will provide an accelerated payment of the portion of the death benefit
selected by the Contract owner as a LIVING NEEDS BENEFIT. The Contract owner may
(1) elect to receive the benefits in a single sum or (2) receive equal monthly
payments for a specified number of years (not more than 10 nor less than 2),
depending upon the age of the insured. If the insured dies before all of the
payments have been made, the present value of the remaining payments will be
paid to the beneficiary designated in the Living Needs Benefit claim form in a
single sum.
All or part of the Contract's death benefit may be accelerated under the LIVING
NEEDS BENEFIT. If the benefit is only partially accelerated, a death benefit of
at least $25,000 must remain under the Contract. Pruco Life of New Jersey
reserves the right to determine the minimum amount that may be accelerated.
The LIVING NEEDS BENEFIT is available only in jurisdictions where and to the
extent regulatory approval has been obtained. If desired by a Contract owner,
the benefit must be requested on the Contract's application. There is no charge
for adding the benefit to the Contract. However, an administrative charge (not
to exceed $150) will be made at the time the LIVING NEEDS BENEFIT is paid.
No benefit will be payable if the Contract owner is required to elect it in
order to meet the claims of creditors or to obtain a government benefit. Pruco
Life of New Jersey can furnish details about the amount of LIVING NEEDS BENEFIT
that is available to an eligible Contract owner under a particular Contract, and
the adjusted premium payments that would be in effect if less than the entire
death benefit is accelerated.
13
<PAGE>
The Contract owner should consider whether adding this settlement option is
appropriate in his or her given situation. Adding the LIVING NEEDS BENEFIT to
the Contract has no adverse consequences; however, electing to use it could.
With the exception of certain business-related policies, the recently enacted
Health Insurance Portability and Accountability Act of 1996 excludes from income
the LIVING NEEDS BENEFIT if the insured is terminally ill or chronically ill as
defined by the tax law (although the exclusion in the latter case may be
limited). Contract owners should consult a qualified tax advisor before electing
to receive this benefit. Receipt of a LIVING NEEDS BENEFIT payment may also
affect a Contract owner's eligibility for certain government benefits or
entitlements.
ILLUSTRATIONS OF CASH VALUES, DEATH BENEFITS, AND ACCUMULATED PREMIUMS
The following tables have been prepared to help show how values under the
Contract change with investment performance of the Account. The tables assume
that no portion of the Contract's cash value is allocated to the Real Property
Account. The tables illustrate how cash values and death benefits of Contracts
with a given premium and face amount issued on an insured of a given age would
vary over time if the return on the assets held in the selected Series Fund
portfolios were a uniform, gross, after-tax, annual rate of 0%, 4% or 8%. The
death benefits and cash values would be different from those shown if the
returns averaged 0%, 4%, and 8% but fluctuated over and under those averages
throughout the years.
The amounts shown for the death benefit and cash value as of each Contract year
reflect the fact that the net investment return on the assets held in the
subaccounts is lower than the gross, after-tax return of the portfolios. This is
because the tables assume a total Series Fund expense ratio of 0.51% (taking
into account the offsets described under CHARGES AND EXPENSES on page 6), and
also reflect a daily mortality and expense risk charge to the Account equal to
an effective annual charge of 0.35%. The actual fees and expenses of the
portfolios associated with a particular Contract may be more or less than 0.51%
and will depend on which subaccounts are selected. Based on the above
assumptions, gross annual rates of return of 0%, 4%, and 8% correspond to
approximate net annual rates of return of -0.86%, 3.14%,and 7.14%.
The tables reflect the fact that no charges for federal or state income taxes
are currently made against the Account. If such a charge is made in the future,
it will take a higher gross rate of return to produce after-tax returns of 0%,
4% or 8% than it does now.
The second column of each table shows what results would be achieved if an
amount equal to the total annual premium were invested to earn 4% interest
compounded annually.
Upon request, Pruco Life of New Jersey will furnish a comparable illustration
based on the proposed insured's age and sex (except where unisex rates apply)
and on the face amount or premium amount requested. Such an illustration will
assume that the insured is a standard (or, on request, a preferred) risk and
that the premium will be paid on an annual basis.
Additional illustrations that assume the gross annual investment return is 0%,
6%, and 12% can be found on pages C1 and C2. These percentages correspond to
approximate net annual rates of return of -0.86%, 5.14%, and 11.14%,
respectively.
14
<PAGE>
ILLUSTRATIONS
-------------
VARIABLE LIFE INSURANCE CONTRACT
MALE ISSUE AGE 25
$50,000 GUARANTEED DEATH BENEFIT
$536.50 ANNUAL PREMIUM FOR STANDARD UNDERWRITING RISK (1)
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH VALUE (2)
---------------------------------------------- ----------------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED ---------------------------------------------- ----------------------------------------------
POLICY AT 4% INTEREST 0% GROSS 4% GROSS 8% GROSS 0% GROSS 4% GROSS 8% GROSS
YEAR PER YEAR (-0.86% NET) (3.14% NET) (7.14% NET) (-0.86% NET) (3.14% NET) (7.14% NET)
---------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 558 $50,000 $50,000 $ 50,012 $ 22 $ 25 $ 28
2 $ 1,138 $50,000 $50,000 $ 50,080 $ 376 $ 396 $ 416
3 $ 1,742 $50,000 $50,000 $ 50,207 $ 729 $ 781 $ 834
4 $ 2,369 $50,000 $50,000 $ 50,392 $1,080 $ 1,178 $ 1,282
5 $ 3,022 $50,000 $50,000 $ 50,637 $1,437 $ 1,597 $ 1,771
6 $ 3,701 $50,000 $50,000 $ 50,942 $1,790 $ 2,028 $ 2,294
7 $ 4,407 $50,000 $50,000 $ 51,307 $2,139 $ 2,471 $ 2,852
8 $ 5,141 $50,000 $50,000 $ 51,734 $2,484 $ 2,926 $ 3,446
9 $ 5,905 $50,000 $50,000 $ 52,222 $2,824 $ 3,392 $ 4,080
10 $ 6,699 $50,000 $50,000 $ 52,771 $3,159 $ 3,870 $ 4,754
15 $11,172 $50,000 $50,000 $ 56,445 $4,727 $ 6,408 $ 8,796
20 $16,615 $50,000 $50,000 $ 61,704 $6,082 $ 9,154 $14,163
25 $23,237 $50,000 $50,000 $ 68,621 $7,214 $12,080 $21,229
30 $31,293 $50,000 $50,000 $ 77,318 $8,098 $15,128 $30,418
40 (AGE 65) $53,020 $50,000 $50,000 $100,739 $9,005 $21,150 $56,847
</TABLE>
(1) IF PREMIUMS ARE PAID MORE FREQUENTLY THAN ANNUALLY, THE PAYMENTS WOULD BE
$274.50 SEMI-ANNUALLY, $139.50 QUARTERLY OR $48 MONTHLY. THE DEATH BENEFITS
AND CASH VALUES WOULD BE SLIGHTLY DIFFERENT FOR A CONTRACT WITH MORE
FREQUENT PREMIUM PAYMENTS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN
THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A
REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES
OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER
OF FACTORS INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER,
PREVAILING INTEREST RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND
CASH VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
RATES OF RETURN AVERAGED 0%, 4%, AND 8% OVER A PERIOD OF YEARS BUT ALSO
FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO
REPRESENTATIONS CAN BE MADE BY PRUCO LIFE OF NEW JERSEY OR THE SERIES FUND
THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
T1
<PAGE>
VARIABLE LIFE INSURANCE CONTRACT
MALE ISSUE AGE 40
$50,000 GUARANTEED DEATH BENEFIT
$939 ANNUAL PREMIUM FOR STANDARD UNDERWRITING RISK (1)
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH VALUE (2)
---------------------------------------------- ----------------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED ---------------------------------------------- ----------------------------------------------
POLICY AT 4% INTEREST 0% GROSS 4% GROSS 8% GROSS 0% GROSS 4% GROSS 8% GROSS
YEAR PER YEAR (-0.86% NET) (3.14% NET) (7.14% NET) (-0.86% NET) (3.14% NET) (7.14% NET)
---------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 977 $50,000 $50,000 $50,029 $ 197 $ 208 $ 219
2 $ 1,992 $50,000 $50,000 $50,120 $ 815 $ 863 $ 912
3 $ 3,048 $50,000 $50,000 $50,273 $ 1,417 $ 1,527 $ 1,642
4 $ 4,147 $50,000 $50,000 $50,488 $ 2,001 $ 2,198 $ 2,410
5 $ 5,289 $50,000 $50,000 $50,770 $ 2,641 $ 2,953 $ 3,296
6 $ 6,477 $50,000 $50,000 $51,120 $ 3,263 $ 3,718 $ 4,231
7 $ 7,713 $50,000 $50,000 $51,536 $ 3,868 $ 4,494 $ 5,217
8 $ 8,998 $50,000 $50,000 $52,019 $ 4,456 $ 5,280 $ 6,257
9 $10,335 $50,000 $50,000 $52,568 $ 5,026 $ 6,076 $ 7,353
10 $11,725 $50,000 $50,000 $53,184 $ 5,579 $ 6,881 $ 8,507
15 $19,554 $50,000 $50,000 $57,270 $ 8,039 $10,994 $15,222
20 $29,080 $50,000 $50,000 $63,054 $ 9,949 $15,145 $23,694
25 (AGE 65) $40,670 $50,000 $50,000 $70,607 $11,302 $19,214 $34,245
</TABLE>
(1) IF PREMIUMS ARE PAID MORE FREQUENTLY THAN ANNUALLY, THE PAYMENTS WOULD BE
$479.50 SEMI-ANNUALLY, $243 QUARTERLY OR $82.50 MONTHLY. THE DEATH BENEFITS
AND CASH VALUES WOULD BE SLIGHTLY DIFFERENT FOR A CONTRACT WITH MORE
FREQUENT PREMIUM PAYMENTS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN
THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A
REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES
OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER
OF FACTORS INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER,
PREVAILING INTEREST RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND
CASH VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
RATES OF RETURN AVERAGED 0%, 4%, AND 8% OVER A PERIOD OF YEARS BUT ALSO
FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO
REPRESENTATIONS CAN BE MADE BY PRUCO LIFE OF NEW JERSEY OR THE SERIES FUND
THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
T2
<PAGE>
CONTRACT LOANS
After the first Contract year, the owner may borrow from Pruco Life of New
Jersey using the Contract as the only security for the loan. During the first
Contract year, no loans are permitted. Except as provided in the following
paragraph, after the first Contract year a Contract owner may borrow up to 75%
of the Contract's cash value. The minimum amount that may be borrowed at any one
time is $500, unless the loan is used to pay premiums on the Contract. The owner
who is paying premiums other than monthly may elect in advance to have Pruco
Life of New Jersey automatically make a loan against the Contract, if the net
cash value is large enough, in order to pay a premium that has not been paid at
the end of a grace period.
Under one of the loan provisions available under this Contract, interest on a
loan accrues daily at a fixed effective annual rate of 5.5%. However, if a
Contract owner so desires, and if Pruco Life of New Jersey has received any
required approvals from the regulatory officials in the state or other
jurisdiction in which the Contract is to be issued, the Contract owner may elect
at the time of issuance of the Contract to have a different loan provision in
the Contract under which the interest rate will vary from time to time. Under
this variable loan interest rate provision, a Contract owner may borrow up to
90% of the Contract's cash value after the first Contract year.
If an owner elects the variable loan interest rate provision, interest on any
loan will accrue daily at an effective annual rate Pruco Life of New Jersey
determines at the start of each Contract year (instead of at the fixed 5.5%
rate). This interest rate will not exceed the greatest of: (1) the "Published
Monthly Average" for the calendar month ending 2 months before the calendar
month of the Contract anniversary; (2) 5%, which is the assumed rate of return
for the Contract plus 1%; and (3) any rate required by law in the state of issue
of the Contract. The "Published Monthly Average" means Moody's Corporate Bond
Yield Average-Monthly Average Corporates, as published by Moody's Investors
Service, Inc. or any successor to that service, or if that average is no longer
published, a substantially similar average established by the insurance
regulator where the Contract is issued. For example, the Published Monthly
Average in 1996 ranged from 7.10% to 8.00%.
Interest payments on any loan are due at the end of each Contract year. If
interest is not paid when due, it is added to the amount of the loan. If the sum
of all outstanding loans plus accrued interest exceeds what the net cash value
would be if there were no Contract debt, Pruco Life of New Jersey will notify
the Contract owner of its intent to terminate the Contract in 31 days, within
which time the owner may repay all or enough of the loan to obtain a positive
net cash value and thus keep the Contract in force.
When a loan is made, an amount equal to the loan proceeds will be transferred
out of the Account and the Real Property Account, as applicable. The reduction
will generally be made in the same proportions as the value in each subaccount
and Real Property Account bears to the total value of the Contract. While a
fixed-rate loan is outstanding, the amount that was so transferred will be
credited with the assumed investment return of 4% rather than with the actual
rate of return of the subaccount[s] and/or the Real Property Account. While a
loan made pursuant to the variable loan interest rate provision is outstanding,
the amount that was so transferred will be credited with a rate which is 1% less
than the loan interest rate for the Contract year (instead of 4%), rather than
with the actual rate of return of the subaccount[s] and/or the Real Property
Account.
A loan will not affect the amount of the premiums due. Should the death benefit
become payable while a loan is outstanding, or should the Contract be
surrendered, the amount of the Contract debt will be deducted from the death
benefit or the cash value otherwise payable.
A loan will have a permanent effect on a Contract's death benefit and cash value
because the investment results of the subaccount[s] and/or the Real Property
Account will apply only to the amount remaining in the subaccount[s] and/or the
Real Property Account. The longer the loan is outstanding, the greater the
effect is likely to be. The effect could be favorable or unfavorable. If
investment results are favorable while the loan is outstanding, the death
benefit and cash value will not increase as rapidly as they would have if no
loan had been made. If investment results are unfavorable, the death benefit and
the cash value will not be as adversely affected as they would have been had no
loan been made. Of course, a loan that is repaid will not have any effect upon
the guaranteed minimum death benefit. If the Contract is not kept in force, the
amount of unpaid Contract debt will be treated as a distribution which may be
taxable. See TAX TREATMENT OF CONTRACT BENEFITS -- Pre-Death Distributions, page
17, and LAPSE AND REINSTATEMENT, page 18.
The tax treatment of Contract loans depends upon whether the Contract is
classified as a Modified Endowment Contract for federal tax purposes. See TAX
TREATMENT OF CONTRACT BENEFITS, page 16.
Consider the Contract issued on a 25 year old insured illustrated in the table
on page T1 with an 8% gross investment return. Assume a $2,500 (5.5%) fixed-rate
loan was made at the end of Contract year 8 and repaid at the end of Contract
year 9. Upon repayment, the death benefit would be $51,911.08 and the cash value
$4,002.72. These amounts are lower than the death benefit and cash value shown
on that page for the end of Contract year 9 because the loan amount was credited
with the 4% assumed investment return rather than the 8% gross rate of return
for the selected subaccounts.
15
<PAGE>
RIGHT TO EXCHANGE A CONTRACT FOR A FIXED-BENEFIT WHOLE-LIFE POLICY
At any time during the first 24 months after a Contract is issued, so long as no
premium due remains unpaid, the owner may exchange it for a fixed benefit
whole-life policy on the insured's life. No evidence of insurability will be
required to make an exchange. The new policy's death benefit will be the same as
the guaranteed minimum amount of the Contract. The new policy will also have the
same issue date and risk classification for the insured as the Contract, but it
will be issued by Prudential and will be a participating (potentially dividend
paying) policy. Premiums for the new policy will be based on Prudential's rates
in effect on the original issue date for the same class of risk which are
currently higher than premiums under the Contract. The new policy's cash value
will be the same as it would have been had the new policy been purchased at the
outset. There will be an equitable cash adjustment on the exchange equal to the
difference between the premiums on the new policy and the premiums on the
Contract for the period between the Contract date and the date of the exchange,
reduced by the amount, if any, by which the cash value of the Contract on the
date of the exchange exceeds what the cash value would have been had the
subaccounts and/or the Real Property Account in which the Contract participated
uniformly earned the assumed investment return of 4%. A further adjustment will
be made for any differences in premiums for any optional benefits carried over
to the new policy.
The exchange will be effective when Pruco Life of New Jersey receives a written
request in a form that meets its needs, and receives the Contract and payment of
any adjustment due on the exchange. Any outstanding Contract debt must be repaid
on or before the effective date of the exchange.
The Contract owner may also exchange the Contract for a fixed-benefit life
insurance policy according to procedures meeting applicable state insurance law
requirements if the Series Fund or one of its portfolios has a material change
in its investment policy. Pruco Life of New Jersey, in conjunction with the New
Jersey Insurance Commissioner, will determine if a change in investment policy
is material. The Contract owner will be able to exchange within 60 days of
receipt of notice of such a material change or of the effective date of the
change, whichever is later. Upon such an exchange, there will be a cash
adjustment based on any difference in net cash value between the Contract and
the new policy.
SALE OF THE CONTRACT AND SALES COMMISSIONS
Pruco Securities Corporation ("Prusec"), an indirect wholly-owned subsidiary of
Prudential, acts as the principal underwriter of the Contract. Prusec, organized
in 1971 under New Jersey law, is registered as a broker and dealer under the
Securities Exchange Act of 1934 and is a member of the National Association of
Securities Dealers, Inc. Prusec's principal business address is 213 Washington
Street, Newark, New Jersey 07102-2992. The Contract is sold by registered
representatives of Prusec who are also authorized by state insurance departments
to do so. The Contract may also be sold through other broker-dealers authorized
by Prusec and applicable law to do so. Registered representatives of such other
broker-dealers may be paid on a different basis than described below. Where the
insured is less than 58 years of age, the representative will generally receive
a commission of no more than 50% of the premiums for the first year, no more
than 11% of the premiums for the second, third, and fourth years, no more than
3% of the premiums for the fifth through tenth years, and no more than 2% of the
premiums thereafter. For insureds over 58 years of age, the commission will be
lower. The representative may be required to return all or part of the first
year commission if the Contract is not continued through the second year.
Representatives with less than 3 years of service may be paid on a different
basis. Representatives who meet certain productivity, profitability, and
persistency standards with regard to the sale of the Contract will be eligible
for additional compensation.
Sales expenses in any year are not equal to the deduction for sales load in that
year. Pruco Life of New Jersey expects to recover its total sales expenses over
the periods the Contracts are in effect. To the extent that the sales charges
are insufficient to cover total sales expenses, the sales expenses will be
recovered from Pruco Life of New Jersey's surplus, which may include the amounts
derived from the risk charge and the mortality and expense risk charge,
described in items 5 and 7 under CHARGES AND EXPENSES, page 6.
TAX TREATMENT OF CONTRACT BENEFITS
Each prospective purchaser is urged to consult a qualified tax advisor. The
following discussion is not intended as tax advice, and it is not a complete
statement of what the effect of federal income taxes will be under all
circumstances. Rather, it provides information about how Pruco Life of New
Jersey believes the current laws apply in the most commonly occurring
circumstances. There is no guarantee, however, that the current federal income
tax laws, regulations or interpretations will not change.
Treatment as Life Insurance. The Contract will be treated as "life insurance,"
as long as it satisfies certain definitional tests set forth in section 7702 of
The Internal Revenue Code (the "Code") and as long as the underlying investment
for the Contract satisfies diversification requirements under section 817(h) of
the Code. (For further
16
<PAGE>
detail on diversification requirements, see DIVIDENDS, DISTRIBUTIONS, AND TAXES
in the attached prospectus for the Series Fund).
Pruco Life of New Jersey believes that the Contract meets these definitional and
diversification requirements and accordingly will be treated as life insurance
for tax purposes. This means that: (1) the death benefit should be excludible
from the gross income of the beneficiary under section 101(a) of the Code; and
(2) except as noted below, the Contract owner should not be taxed on any part of
the Contract fund, including additions attributable to interest, dividends or
appreciation until amounts are distributed from the Contract.
However, Section 7702 of the Code which defines life insurance for tax purposes
gives the Secretary of the Treasury authority to prescribe regulations to carry
out the purposes of the Section. In this regard, proposed regulations governing
mortality charges were issued in 1991 and proposed regulations relating to the
definition of life insurance were issued in 1992. None of these proposed
regulations has yet been finalized. Additional regulations under Section 7702
may also be promulgated in the future. Moreover, in connection with the issuance
of temporary regulations under Section 817(h), the Treasury Department announced
that such regulations do not provide guidance concerning the extent to which
Contract owners may direct their investments to particular divisions of a
separate account. Such guidance will be included in regulations or rulings under
Section 817(d) relating to the definition of a variable contract.
Pruco Life of New Jersey intends to comply with final regulations issued under
sections 7702 and 817. Therefore, it reserves the right to make such changes as
it deems necessary to assure that the Contract continues to qualify as life
insurance for tax purposes. Any such changes will apply uniformly to affected
Contract owners and will be made only after advance written notice to affected
Contract owners.
Pre-Death Distributions. The taxation of pre-death distributions depends on
whether the Contract is classified as a Modified Endowment Contract. The
following discussion first deals with distributions under Contracts not so
classified, and then with Modified Endowment Contracts.
1. A surrender (or lapse) of the Contract may have tax consequences. Upon
surrender, the owner may not be taxed on the net cash value except for the
amount, if any, that exceeds the gross premiums paid less the untaxed
portion of any prior withdrawals. The amount of any unpaid Contract debt
will, upon surrender or lapse, be added to the net cash value and treated,
for this purpose, as if it had been received. Any loss incurred upon
surrender is generally not deductible. The tax consequences of a surrender
may differ if the proceeds are received under an income payment settlement
option.
A withdrawal or partial surrender generally is not taxable unless it
exceeds total premiums paid to the date of withdrawal less the untaxed
portion of any prior withdrawals. However, under certain limited
circumstances, in the first 15 Contract years all or a portion of a
withdrawal or partial surrender may be taxable if the cash value exceeds
the total premiums paid less the untaxed portion of any prior withdrawals,
even if total withdrawals do not exceed total premiums paid to date.
Extra premiums for optional benefits and riders generally do not count in
computing gross premiums paid, which in turn determines the extent to which
a withdrawal might be taxed.
Loans received under the Contract will ordinarily be treated as
indebtedness of the owner and will not be considered to be distributions
subject to tax.
2. Some of the above rules are changed if the Contract is classified as a
Modified Endowment Contract under Section 7702A of the Code. In general,
this Contract should not become a Modified Endowment Contract. However,
certain actions may cause the Contract to become a Modified Endowment
Contract. These actions may include partial surrenders or withdrawals, the
deletion of certain riders or the selection of certain options upon the
lapse of the Contract. Contract owners contemplating any of these steps
should consult a qualified tax advisor and their Pruco Life of New Jersey
representative.
If the Contract is classified as a Modified Endowment Contract then
pre-death distributions, including loans, withdrawals and partial
surrenders are includible in income to the extent that the Contract's cash
value prior to surrender charges exceeds the gross premiums paid for the
Contract increased by the amount of any loans previously includible in
income and reduced by any untaxed amounts previously received other than
the amount of any loans excludible from income. These rules may also apply
to pre-death distributions, including loans, made during the 2 year period
prior to the Contract becoming a Modified Endowment Contract.
In addition, pre-death distributions from such Contracts (including full
surrenders) will be subject to a penalty of 10 percent of the amount includible
in income unless the amount is distributed on or after age 59 1/2, on account of
the taxpayer's disability or as a life annuity. It is presently unclear how the
penalty tax provisions apply to Contracts owned by nonnatural persons such as
corporations.
17
<PAGE>
Under certain circumstances, Modified Endowment Contracts issued during any
calendar year will be treated as a single contract for purposes of applying the
above rules.
Withholding. The taxable portion of any amounts received under the Contract will
be subject to withholding to meet federal income tax obligations if the Contract
owner fails to elect that no taxes be withheld or in certain other
circumstances. Contract owners who do not provide a social security number or
other taxpayer identification number will not be permitted to elect out of
withholding. All recipients of such amounts may be subject to penalties under
the estimated tax payment rules if withholding and estimated tax payments are
not sufficient.
Other Tax Considerations. Transfer of the Contract to a new owner or assignment
of the Contract may have tax consequences depending on the circumstances. In the
case of a transfer of the Contract for a valuable consideration, the death
benefit may be subject to federal income taxes under Section 101(a)(2) of the
Code. In addition, a transfer of the Contract to or the designation of a
beneficiary who is either 37 1/2 years younger than the Contract owner or a
grandchild of the Contract owner may have Generation Skipping Transfer tax
consequences under Section 2601 of the Code.
In certain circumstances, deductions for interest paid or accrued on Contract
debt or on other loans incurred or continued to purchase or carry the Contract
may be denied under Section 163 of the Code as personal interest or under
Section 264 of the Code. Contract owners should consult a tax advisor regarding
the application of these provisions to their circumstances.
Business-owned life insurance is subject to additional rules. Section 264(a)(1)
of the Code generally precludes business Contract owners from deducting premium
payments. The recently enacted Health Insurance Portability and Accountability
Act of 1996 generally disallows tax deductions for interest on Contract debt on
a businessowned insurance policy effective (with certain transitional rules) for
interest paid or accrued after October 13, 1995. An exception permits the
deduction of interest on policy loans on Contracts for up to 20 key persons. The
interest deduction for Contract debt on such loans is limited to a prescribed
interest rate and a maximum aggregate loan amount of $50,000 per key insured
person. The Code also imposes an indirect tax upon additions to the Contract
fund or the receipt of death benefits under business-owned life insurance
policies under certain circumstances by way of the corporate alternative minimum
tax.
The individual situation of each owner or beneficiary will determine the federal
estate taxes and the state and local estate, inheritance and other taxes due if
the owner or insured dies.
LAPSE AND REINSTATEMENT
This Contract ensures that as long as premiums are paid, insurance protection
remains in effect. However, if a premium is not paid on or before each due date
or within the 31 day grace period after each due date, the Contract will lapse.
A Contract that lapses with an outstanding Contract loan may have tax
consequences. See TAX TREATMENT OF CONTRACT BENEFITS on page 16.
A Contract that has lapsed may be reinstated within 3 years after the date of
default unless the Contract has been surrendered for its cash value. To
reinstate a lapsed Contract, Pruco Life of New Jersey requires renewed evidence
of insurability, and submission of certain payments due under the Contract.
If a Contract does lapse, it may still provide some benefits. Those benefits are
described below under OPTIONS ON LAPSE.
OPTIONS ON LAPSE
If a Contract lapses because the premium has not been paid before the end of the
grace period, some life insurance coverage may continue in effect or the owner
may choose to surrender the Contract for its net cash value. A lapse of a
Contract with a Contract loan may have tax consequences. See TAX TREATMENT OF
CONTRACT BENEFITS, page 16.
1. Extended Term Insurance. With one exception explained below, if the owner
does not communicate at all with Pruco Life of New Jersey, life insurance
coverage will continue for a length of time that depends on the net cash value
on the due date of the first unpaid premium, the amount of insurance, and the
age and sex (except where unisex rates apply) of the insured. The insurance
amount will be what it would have been on the due date of the unpaid premium,
taking into account any Contract debt on that date. The amount will not change
while the insurance stays in force. This benefit is known as extended term
insurance. The owner will be told in writing how long the insurance will be in
effect. Extended term insurance has a cash value but no loan value.
Contracts issued on the lives of certain insureds in high risk rating classes
will include a statement that extended term insurance will not be provided. In
that case, variable reduced paid-up insurance (as described in item 3 below)
will be the automatic benefit provided on lapse.
18
<PAGE>
2. Fixed Reduced Paid-Up Insurance. The owner may choose to have insurance
coverage provided for the lifetime of the insured. The amount will be lower than
what extended term insurance would provide. This is known as fixed reduced
paid-up insurance. The insurance amount will depend on the net cash value on the
due date of the first premium in default, and the age and sex (except where
unisex rates apply) of the insured. The amount will not change thereafter unless
a loan is taken against the fixed reduced paid-up insurance. Pruco Life of New
Jersey will, if asked, tell the owner what the amount will be. Apart from the
case described above in which fixed reduced paid-up insurance is the automatic
benefit provided on lapse, the owner who wants fixed reduced paid-up insurance
must ask for it in writing, in a form that meets Pruco Life of New Jersey's
needs, within 3 months of the due date of the first unpaid premium. Fixed
reduced paid-up insurance has a cash value and a loan value. Acquisition of
reduced paid-up insurance within the first 7 Contract years may result in the
Contract becoming a Modified Endowment Contract. See TAX TREATMENT OF CONTRACT
BENEFITS, page 16.
3. Variable Reduced Paid-Up Insurance. Variable reduced paid-up insurance
provides insurance coverage for the lifetime of the insured. The initial
insurance amount will depend upon the net cash value on the due date of the
first premium in default, and the age and sex (except where unisex rates apply)
of the insured. This will be a new guaranteed minimum death benefit. Aside from
this guarantee, the cash value and the amount of insurance will vary with
investment performance in the same manner as a Contract in force on a premium
paying basis (see HOW A CONTRACT'S DEATH BENEFIT WILL VARY, page 8 and HOW A
CONTRACT'S CASH VALUE WILL VARY, page 10). Variable reduced paid-up insurance
has a loan privilege identical to that available on premium paying Contracts
(see CONTRACT LOANS, page 15). Acquisition of reduced paid-up insurance within
the first 7 Contract years may result in the Contract becoming a Modified
Endowment Contract. See TAX TREATMENT OF CONTRACT BENEFITS, page 16.
As explained in item 1 above, variable reduced paid-up insurance is the
automatic benefit on lapse for Contracts issued on certain insureds. Owners of
other Contracts who want variable reduced paid-up insurance must ask for it in
writing, in a form that meets Pruco Life of New Jersey's needs, within 3 months
of the date of default; it will be available to such owners only if the initial
amount of variable reduced paid-up insurance would be at least $5,000. This
minimum is not applicable to Contracts for which variable reduced paid-up
insurance is the automatic benefit upon lapse.
4. Payment of Net Cash Value. The owner can receive the net cash value by
surrendering the Contract and making a written request in a form that meets
Pruco Life of New Jersey's needs. If Pruco Life of New Jersey receives the
request within the days of grace of a premium in default, the net cash value
will be the net cash value as of the due date of that premium, adjusted for any
loan made or repaid during the days of grace, plus or minus an amount that
depends upon the investment performance between the due date and the date Pruco
Life of New Jersey receives the request. Whether the net cash value as of the
due date of the unpaid premium is increased or decreased by subsequent
investment performance depends upon whether or not the assets relating to the
Contract have increased at more than 4% a year. If Pruco Life of New Jersey
receives the request after the grace period expires, the net cash value will be
the net value of any extended term insurance then in force, or the net value of
any reduced paid-up insurance then in force (either fixed or variable), less any
Contract debt. Surrender of the Contract may have tax consequences. See TAX
TREATMENT OF CONTRACT BENEFITS, page 16.
The following table shows the cash value, extended term insurance, and both
fixed and variable reduced paid-up insurance for two representative Contracts,
each with a guaranteed death benefit of $50,000, which lapse at the end of 8
years after a uniform gross annual investment return of 8%. The tables assume a
total Series Fund expense ratio of 0.51% (taking into account the offsets
described under CHARGES AND EXPENSES on page 6).
- -------------------------------------------------------------------
Extended Reduced
Insured Cash Value Term Insurance Paid-Up Insurance
- -------------------------------------------------------------------
Male, age 25 $3,446 $51,734 $14,387
at issue for 19.82 years for life
- -------------------------------------------------------------------
Male, age 40 $6,257 $52,019 $16,180
at issue for 12.72 years for life
- -------------------------------------------------------------------
LEGAL CONSIDERATIONS RELATING TO SEX-DISTINCT PREMIUMS AND BENEFITS
The Contract generally employs mortality tables that distinguish between males
and females. Thus, premiums and benefits under Contracts issued on males and
females of the same age will generally differ. However, in those states that
have adopted regulations prohibiting sex-distinct insurance rates, premiums and
cost of insurance charges will be based on male mortality tables whether the
insured is male or female. In addition, employers and employee organizations
considering purchase of a Contract should consult their legal advisors to
determine whether purchase of a Contract based on sex-distinct actuarial tables
is consistent with Title VII of the Civil Rights Act of
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1964 or other applicable law. Pruco Life of New Jersey may offer the Contract
with unisex mortality rates to such prospective purchasers.
OTHER GENERAL CONTRACT PROVISIONS
BENEFICIARY. The beneficiary is designated and named in the application by the
Contract owner. Thereafter, the owner may change the beneficiary, provided it is
in accordance with the terms of the Contract. Should the insured die with no
surviving beneficiary, the insured's estate will become the beneficiary.
INCONTESTABILITY. After the Contract has been in force during the insured's
lifetime for 2 years from the Contract date, Pruco Life of New Jersey will not
contest its liability under the Contract in accordance with its terms.
MISSTATEMENT OF AGE OR SEX. If the insured's stated age or sex (except where
unisex rates apply) or both are incorrect in the Contract, Pruco Life of New
Jersey will adjust the benefits payable, as required by law, to reflect what the
premium would have purchased for the correct age and sex.
SUICIDE EXCLUSION. Generally, if the insured, whether sane or insane, dies by
suicide within 2 years from the Contract date, Pruco Life of New Jersey will pay
no more under the Contract than the sum of the premiums paid.
ASSIGNMENT. This Contract may not be assigned if such assignment would violate
any federal, state or local law or regulation. Pruco Life of New Jersey assumes
no responsibility for the validity or sufficiency of any assignment, and it will
not be obligated to comply with any assignment unless it has received a copy at
one of its Home Offices.
SETTLEMENT OPTIONS. The Contract grants to most owners, or to the beneficiary, a
wide variety of optional ways of receiving Contract proceeds, other than in a
lump sum. Any Pruco Life of New Jersey representative authorized to sell this
Contract can explain these options upon request.
RIDERS
The Contract owner may be able to obtain extra fixed benefits, which may require
an additional premium. These benefits will be described in what is known as a
"rider" to the Contract. For example, one benefit pays an additional amount if
the insured dies in an accident. Others waive certain premiums if the insured is
disabled within the meaning of the provision (or, in the case of a Contract
issued on an insured under the age of 15, if the applicant dies or becomes
disabled within the meaning of the provision). Others pay an additional amount
if the insured dies within a stated number of years after issue; similar
benefits may be available if the insured's spouse or child should die. The
amounts of these benefits are fully guaranteed at issue; they do not depend on
the performance of the Account. Certain restrictions may apply; they are clearly
described in the applicable rider. Any Pruco Life of New Jersey representative
authorized to sell the Contract can explain these extra benefits further.
Samples of the provisions are available from Pruco Life of New Jersey upon
written request.
VOTING RIGHTS
As stated above, all of the assets held in the subaccounts of the Account will
be invested in shares of the corresponding portfolios of the Series Fund. Pruco
Life of New Jersey is the legal owner of those shares and as such has the right
to vote on any matter voted on at Series Fund shareholders meetings. However,
Pruco Life of New Jersey will, as required by law, vote the shares of the Series
Fund at any regular and special shareholders meetings it is required to hold in
accordance with voting instructions received from Contract owners. The Series
Fund will not hold annual shareholders meetings when not required to do so under
Maryland law or the Investment Company Act of 1940. Series Fund shares for which
no timely instructions from Contract owners are received, and any shares
attributable to general account investments of Pruco Life of New Jersey will be
voted in the same proportion as shares in the respective portfolios for which
instructions are received. Should the applicable federal securities laws or
regulations, or their current interpretation, change so as to permit Pruco Life
of New Jersey to vote shares of the Series Fund in its own right, it may elect
to do so.
Matters on which Contract owners may give voting instructions include the
following: (1) election of the Board of Directors of the Series Fund; (2)
ratification of the independent accountant of the Series Fund; (3) approval of
the investment advisory agreement for a portfolio of the Series Fund
corresponding to the Contract owner's selected subaccount[s]; (4) any change in
the fundamental investment policy of a portfolio corresponding to the Contract
owner's selected subaccount[s]; and (5) any other matter requiring a vote of the
shareholders of the Series Fund. With respect to approval of the investment
advisory agreement or any change in a portfolio's fundamental investment policy,
Contract owners participating in such portfolios will vote separately on the
matter, pursuant to the requirements of Rule 18f-2 under the 1940 Act.
The number of Series Fund shares for which instructions may be given by a
Contract owner is determined by dividing the portion of the value of the
Contract derived from participation in a subaccount, by the value of one
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<PAGE>
share in the corresponding portfolio of the Series Fund. The number of votes for
which each Contract owner may give Pruco Life of New Jersey instructions will be
determined as of the record date chosen by the Board of Directors of the Series
Fund. Pruco Life of New Jersey will furnish Contract owners with proper forms
and proxies to enable them to give these instructions. Pruco Life of New Jersey
reserves the right to modify the manner in which the weight to be given voting
instructions is calculated where such a change is necessary to comply with
current federal regulations or interpretations of those regulations.
Pruco Life of New Jersey may, if required by state insurance regulations,
disregard voting instructions if such instructions would require shares to be
voted so as to cause a change in the sub-classification or investment objectives
of one or more of the Series Fund's portfolios, or to approve or disapprove an
investment advisory contract for the Series Fund. In addition, Pruco Life of New
Jersey itself may disregard voting instructions that would require changes in
the investment policy or investment advisor of one or more of the Series Fund's
portfolios, provided that Pruco Life of New Jersey reasonably disapproves such
changes in accordance with applicable federal regulations. If Pruco Life of New
Jersey does disregard voting instructions, it will advise Contract owners of
that action and its reasons for such action in the next annual or semi-annual
report to Contract owners.
SUBSTITUTION OF SERIES FUND SHARES
Although Pruco Life of New Jersey believes it to be unlikely, it is possible
that in the judgment of its management, one or more of the portfolios of the
Series Fund may become unsuitable for investment by Contract owners because of
investment policy changes, tax law changes or the unavailability of shares for
investment. In that event, Pruco Life of New Jersey may seek to substitute the
shares of another portfolio or of an entirely different mutual fund. Before this
can be done, the approval of the SEC, and possibly one or more state insurance
departments, will be required. Contract owners will be notified of such
substitution.
REPORTS TO CONTRACT OWNERS
Once each Contract year (except where the Contract is in force as fixed extended
term insurance or fixed reduced paid-up insurance), Contract owners will be sent
statements that provide certain information pertinent to their own Contract.
These statements detail values and transactions made and specific Contract data
that apply only to each particular Contract. On request, a Contract owner will
be sent a current statement in a form similar to that of the annual statement
described above, but Pruco Life of New Jersey may limit the number of such
requests or impose a reasonable charge if such requests are made too frequently.
Contract owners will also be sent annual and semi-annual reports of the Series
Fund showing the financial condition of the portfolios and the investments held
in each.
STATE REGULATION
Pruco Life of New Jersey is subject to regulation and supervision by the
Department of Insurance of the State of New Jersey, which periodically examines
its operations and financial condition. It is also subject to the insurance laws
and regulations of all jurisdictions in which it is authorized to do business.
Pruco Life of New Jersey is required to submit annual statements of its
operations, including financial statements, to the insurance departments of the
various jurisdictions in which it does business to determine solvency and
compliance with local insurance laws and regulations.
In addition to the annual statements referred to above, Pruco Life of New Jersey
is required to file with New Jersey and other jurisdictions a separate statement
with respect to the operations of all its variable contract accounts, in a form
promulgated by the National Association of Insurance Commissioners.
EXPERTS
The financial statements included in this prospectus for the year ended December
31, 1996 have been audited by Price Waterhouse LLP, independent accountants, as
stated in their reports appearing herein, and are included in reliance upon the
reports of such firm given upon their authority as experts in accounting and
auditing. Price Waterhouse LLP's principal business address is 1177 Avenue of
the Americas, New York, New York 10036.
The financial statements included in this prospectus for years ended December
31, 1995 and December 31, 1994, have been audited by Deloitte & Touche LLP,
independent auditors, as stated in their reports appearing herein, and are
included in reliance upon the reports of such firm given upon their authority as
experts in accounting and auditing. Deloitte & Touche LLP's principal business
address is Two Hilton Court, Parsippany, New Jersey 07054- 0319.
On March 12, 1996, Deloitte & Touche LLP was dismissed as the independent
accountants of Pruco Life of New Jersey. There have been no disagreements with
Deloitte & Touche LLP on any matter of accounting principles or
21
<PAGE>
practices, financial statement disclosure or auditing scope or procedure which,
if not resolved to the satisfaction of the accountant, would have caused them to
make reference to the matter in their reports.
Actuarial matters included in this prospectus have been examined by Nancy D.
Davis, FSA, MAAA, Vice President and Actuary of Prudential whose opinion is
filed as an exhibit to the registration statement.
LITIGATION
Several actions have been brought against Pruco Life of New Jersey alleging that
Pruco Life of New Jersey and its agents engaged in improper life insurance sales
practices. Prudential has agreed to indemnify Pruco Life of New Jersey for
losses, if any, resulting from such litigation. No other significant litigation
is being brought against Pruco Life of New Jersey that would have a material
effect on its financial position.
ADDITIONAL INFORMATION
A registration statement has been filed with the SEC under the Securities Act of
1933, relating to the offering described in this prospectus. This prospectus
does not include all of the information set forth in the registration statement.
Certain portions have been omitted pursuant to the rules and regulations of the
SEC. The omitted information may, however, be obtained from the SEC's principal
office in Washington, D.C., upon payment of a prescribed fee.
Further information may also be obtained from Pruco Life of New Jersey's office.
The address and telephone number are set forth on the cover of this prospectus.
FINANCIAL STATEMENTS
The financial statements of Pruco Life of New Jersey included herein should be
distinguished from the financial statements of the Account, and should be
considered only as bearing upon the ability of Pruco Life of New Jersey to meet
its obligations under the Contracts.
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<PAGE>
DIRECTORS AND OFFICERS
The directors and major officers of Pruco Life of New Jersey, listed with their
principal occupations during the past 5 years, are shown below.
DIRECTORS OF PRUCO LIFE OF NEW JERSEY
WILLIAM M. BETHKE, Director. -- President, Prudential Capital Markets Group
since 1992.
IRA J. KLEINMAN, Director. -- Executive Vice President, Prudential International
Insurance Group since 1997; 1995 to 1997: Chief Marketing and Product
Development Officer, Prudential Individual Insurance Group; 1993 to 1995:
President, Prudential Select; Prior to 1993: Senior Vice President of
Prudential.
MENDEL A. MELZER, Director. -- Chief Investment Officer, Mutual Funds and
Annuities, Prudential Investments since 1996; 1995 to 1996: Chief Financial
Officer of the Money Management Group of Prudential; 1993 to 1995: Senior Vice
President and Chief Financial Officer of Prudential Preferred Financial
Services; Prior to 1993: Managing Director, Prudential Investment Corporation.
ESTHER H. MILNES, President and Director. -- Vice President and Actuary,
Prudential Individual Insurance Group since 1996; 1993 to 1996: Senior Vice
President and Chief Actuary, Prudential Insurance and Financial Services; Prior
to 1993: Vice President and Associate Actuary of Prudential.
I. EDWARD PRICE, Vice Chairman and Director. -- Senior Vice President and
Actuary, Prudential Individual Insurance Group since 1995; 1994 to 1995: Chief
Executive Officer, Prudential International Insurance; 1993 to 1994: President,
Prudential International Insurance; Prior to 1993: Senior Vice President and
Company Actuary of Prudential.
WILLIAM F. YELVERTON, Chairman and Director. --Chief Executive Officer,
Prudential Individual Insurance Group since 1995; Prior to 1995: Chief Executive
Officer, New York Life Worldwide.
OFFICERS WHO ARE NOT DIRECTORS
SUSAN L. BLOUNT, Secretary.--Vice President and Secretary of Prudential since
1995; Prior to 1995: Assistant General Counsel for Prudential Residential
Services Company.
C. EDWARD CHAPLIN, Treasurer. -- Vice President and Treasurer of Prudential
since 1995; 1993 to 1995: Managing Director and Assistant Treasurer of
Prudential; 1992 to 1993: Vice President and Assistant Treasurer, Banking and
Cash Management for Prudential.
LINDA S. DOUGHERTY, Vice President, Comptroller and Chief Accounting Officer. --
Vice President and Comptroller, Prudential Individual Insurance Group since
1997; Prior to 1997: Vice President, Accounting, Prudential.
JAMES C. DROZANOWSKI, Senior Vice President. -- Vice President and Operations
Executive, Prudential Individual Insurance Group since 1996; 1995 to 1996:
President and Chief Executive Officer of Chase Manhattan Bank; 1993 to 1995:
Vice President, North America Customer Services, Chase Manhattan Bank; Prior to
1993: Operations Executive, Global Securities Services, Chase Manhattan Bank.
CLIFFORD E. KIRSCH, Chief Legal Officer. -- Chief Counsel, Variable Products,
Law Department of Prudential since 1995; 1994 to 1995: Associate General Counsel
with Paine Webber; Prior to 1994: Assistant Director in the Division of
Investment Management with the Securities and Exchange Commission.
FRANK P. MARINO, Senior Vice President. -- Vice President, Policyowner Relations
Department, Prudential Individual Insurance Group since 1996; Prior to 1996:
Senior Vice President, Prudential Mutual Fund Services.
MARIO A. MOSSE, Senior Vice President. -- Vice President, Annuity Services,
Prudential Investments since 1996; Prior to 1996: Vice President, Chase
Manhattan Bank.
SHIRLEY H. SHAO, Senior Vice President and Chief Actuary. -- Vice President and
Associate Actuary, Prudential.
KAREN L. SHAPIRO, Senior Vice President. -- Vice President, Prudential
Individual Insurance Group since 1996; Vice President and Associate General
Counsel, Prudential Securities Incorporated 1993 to 1996; Prior to 1993: Senior
Associate with Shaw, Pittman, Potts and Trowbridge.
The business address of all directors and officers of Pruco Life of New Jersey
is 213 Washington Street, Newark, New Jersey 07102-2992.
* SUBSIDIARY OF PRUDENTIAL
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<PAGE>
FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
STATEMENTS OF NET ASSETS
December 31, 1996
<TABLE>
<CAPTION>
SUBACCOUNTS
------------------------------------------------------------------------------
MONEY DIVERSIFIED FLEXIBLE CONSERVATIVE
MARKET BOND EQUITY MANAGED BALANCED
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in shares of The Prudential Series
Fund, Inc. Portfolios at net asset value [Note
3]............................................ $ 7,405,344 $ 9,093,809 $ 61,156,443 $ 46,053,004 $ 14,332,569
-------------- -------------- -------------- -------------- --------------
NET ASSETS, representing:
Equity of Contract owners....................... $ 7,402,427 $ 9,090,402 $ 61,064,301 $ 46,019,955 $ 14,312,260
Equity of Pruco Life Insurance Company of New
Jersey........................................ 2,917 3,407 92,142 33,049 20,309
-------------- -------------- -------------- -------------- --------------
$ 7,405,344 $ 9,093,809 $ 61,156,443 $ 46,053,004 $ 14,332,569
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
Number of Contract owner units outstanding...... 3,224,222.204 2,640,892.809 9,347,167.962 9,806,565.244 3,730,133.205
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
Unit Value...................................... $ 2.29588 $ 3.44217 $ 6.53292 $ 4.69277 $ 3.83693
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
</TABLE>
STATEMENTS OF OPERATIONS
For the year ended December 31, 1996
<TABLE>
<CAPTION>
SUBACCOUNTS
------------------------------------------------------------------------------
MONEY DIVERSIFIED FLEXIBLE CONSERVATIVE
MARKET BOND EQUITY MANAGED BALANCED
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend distributions received................. $ 376,664 $ 572,577 $ 1,392,741 $ 1,346,257 $ 559,825
EXPENSES
Charges to Contract owners for assuming
mortality risk and expense risk [Note 4A]..... 25,789 30,958 197,786 152,413 47,258
Reimbursement for excess expenses [Note 4B]..... (3,135) (4,351) (62,284) (109,842) (27,100)
-------------- -------------- -------------- -------------- --------------
NET EXPENSES...................................... 22,654 26,607 135,502 42,571 20,158
-------------- -------------- -------------- -------------- --------------
NET INVESTMENT INCOME (LOSS)...................... 354,010 545,970 1,257,239 1,303,686 539,667
-------------- -------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received............ 0 0 5,412,079 4,325,923 875,158
Realized gain on shares redeemed
[average cost basis].......................... 0 18,879 739,386 354,578 58,696
Net unrealized gain (loss) on investments....... 0 (202,485) 2,147,359 (414,332) 135,494
-------------- -------------- -------------- -------------- --------------
NET GAIN (LOSS) ON INVESTMENTS.................... 0 (183,606) 8,298,824 4,266,169 1,069,348
-------------- -------------- -------------- -------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................... $ 354,010 $ 362,364 $ 9,556,063 $ 5,569,855 $ 1,609,015
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A1
<PAGE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
------------------------------------------------------------------------------
HIGH
YIELD STOCK EQUITY NATURAL
BOND INDEX INCOME RESOURCES GLOBAL
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in shares of The Prudential Series
Fund, Inc. Portfolios at net asset value [Note
3] $ 786,295 $ 1,215,986 $ 958,038 $ 671,904 $ 309,818
-------------- -------------- -------------- -------------- --------------
NET ASSETS, representing:
Equity of Contract owners $ 783,707 $ 1,210,237 $ 952,508 $ 672,297 $ 304,997
Equity of Pruco Life Insurance Company of New
Jersey 2,588 5,749 5,530 (393) 4,821
-------------- -------------- -------------- -------------- --------------
$ 786,295 $ 1,215,986 $ 958,038 $ 671,904 $ 309,818
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
Number of Contract owner units outstanding 351,570.426 385,126.432 291,662.398 220,090.376 228,070.949
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
Unit Value $ 2.22916 $ 3.14244 $ 3.26579 $ 3.05464 $ 1.33729
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
<CAPTION>
SMALL
GOVERNMENT PRUDENTIAL CAPITALIZATION
INCOME JENNISON STOCK
-------------- -------------- --------------
<S> <C> <C> <C>
ASSETS
Investment in shares of The Prudential Series
Fund, Inc. Portfolios at net asset value [Note
3] $ 219,076 $ 149,602 $ 61,689
-------------- -------------- --------------
NET ASSETS, representing:
Equity of Contract owners $ 216,987 $ 147,529 $ 62,483
Equity of Pruco Life Insurance Company of New
Jersey 2,089 2,073 (794)
-------------- -------------- --------------
$ 219,076 $ 149,602 $ 61,689
-------------- -------------- --------------
-------------- -------------- --------------
Number of Contract owner units outstanding 117,144.408 103,333.910 43,749.206
-------------- -------------- --------------
-------------- -------------- --------------
Unit Value $ 1.85230 $ 1.42769 $ 1.42821
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
--------------------------------------------------------------
HIGH
YIELD STOCK EQUITY NATURAL
BOND INDEX INCOME RESOURCES
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend distributions received $ 75,412 $ 19,258 $ 29,747 $ 3,948
EXPENSES
Charges to Contract owners for assuming
mortality risk and expense risk [Note 4A] 2,748 3,576 2,940 1,958
Reimbursement for excess expenses [Note 4B] 0 0 0 0
-------------- -------------- -------------- --------------
NET EXPENSES 2,748 3,576 2,940 1,958
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME (LOSS) 72,664 15,682 26,807 1,990
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received 0 13,471 29,626 77,762
Realized gain on shares redeemed
[average cost basis] 2,155 11,266 4,920 4,345
Net unrealized gain (loss) on investments 7,745 164,641 104,296 56,286
-------------- -------------- -------------- --------------
NET GAIN (LOSS) ON INVESTMENTS 9,900 189,378 138,842 138,393
-------------- -------------- -------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 82,564 $ 205,060 $ 165,649 $ 140,383
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
<CAPTION>
SMALL
GOVERNMENT PRUDENTIAL CAPITALIZATION
GLOBAL INCOME JENNISON STOCK
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend distributions received $ 6,501 $ 13,036 $ 251 $ 345
EXPENSES
Charges to Contract owners for assuming
mortality risk and expense risk [Note 4A] 880 718 310 123
Reimbursement for excess expenses [Note 4B] 0 0 0 0
-------------- -------------- -------------- --------------
NET EXPENSES 880 718 310 123
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME (LOSS) 5,621 12,318 (59) 222
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received 4,714 0 0 1,130
Realized gain on shares redeemed
[average cost basis] 4,074 278 254 89
Net unrealized gain (loss) on investments 31,135 (8,709) 12,809 5,484
-------------- -------------- -------------- --------------
NET GAIN (LOSS) ON INVESTMENTS 39,923 (8,431) 13,063 6,703
-------------- -------------- -------------- --------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 45,544 $ 3,887 $ 13,004 $ 6,925
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A2
<PAGE>
FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
SUBACCOUNTS
----------------------------------------------------------------------------------------------
MONEY DIVERSIFIED
MARKET BOND
---------------------------------------------- ----------------------------------------------
1996 1995 1994 1996 1995 1994
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 354,010 $ 385,602 $ 254,974 $ 545,970 $ 547,476 $ 469,970
Capital gains distributions
received....................... 0 0 0 0 19,747 17,313
Realized gain (loss) on shares
redeemed
[average cost basis]........... 0 0 0 18,879 11,479 307
Net unrealized gain (loss) on
investments.................... 0 0 0 (202,485) 961,936 (767,566)
-------------- -------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS........ 354,010 385,602 254,974 362,364 1,540,638 (279,976)
-------------- -------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6]......................... (273,457) (61,093) (171,851) (266,782) (121,579) (109,516)
-------------- -------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7]......................... (15,890) 9,308 (12,529) (13,611) 6,715 (10,810)
-------------- -------------- -------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS........................... 64,663 333,817 70,594 81,971 1,425,774 (400,302)
NET ASSETS:
Beginning of year................ 7,340,681 7,006,864 6,936,270 9,011,838 7,586,064 7,986,366
-------------- -------------- -------------- -------------- -------------- --------------
End of year...................... $ 7,405,344 $ 7,340,681 $ 7,006,864 $ 9,093,809 $ 9,011,838 $ 7,586,064
-------------- -------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A3
<PAGE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
--------------------------------------------------------------
FLEXIBLE
EQUITY MANAGED
---------------------------------------------- --------------
1996 1995 1994 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,257,239 $ 903,333 $ 837,378 $ 1,303,686
Capital gains distributions
received 5,412,079 1,871,861 1,713,938 4,325,923
Realized gain (loss) on shares
redeemed
[average cost basis] 739,386 386,726 189,189 354,578
Net unrealized gain (loss) on
investments 2,147,359 9,550,433 (1,705,026) (414,332)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS 9,556,063 12,712,353 1,035,479 5,569,855
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6] (1,767,989) (602,249) (181,317) (1,212,218)
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7] 35,491 (30,219) 43,028 (63,212)
-------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 7,823,565 12,079,885 897,190 4,294,425
NET ASSETS:
Beginning of year 53,332,878 41,252,993 40,355,803 41,758,579
-------------- -------------- -------------- --------------
End of year $ 61,156,443 $ 53,332,878 $ 41,252,993 $ 46,053,004
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
<CAPTION>
CONSERVATIVE
BALANCED
----------------------------------------------
1995 1994 1996 1995 1994
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,190,976 $ 917,201 $ 539,667 $ 486,462 $ 359,464
Capital gains distributions
received 1,736,662 969,306 875,158 437,152 115,421
Realized gain (loss) on shares
redeemed
[average cost basis] 134,824 63,255 58,696 18,242 6,748
Net unrealized gain (loss) on
investments 5,079,159 (3,075,595) 135,494 935,354 (598,093)
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS 8,141,621 (1,125,833) 1,609,015 1,877,210 (116,460)
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6] (490,699) 555,429 (173,029) 87,711 571,807
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7] 8,173 (5,718) (6,813) (22,015) (9,102)
-------------- -------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 7,659,095 (576,122) 1,429,173 1,942,906 446,245
NET ASSETS:
Beginning of year 34,099,484 34,675,606 12,903,396 10,960,490 10,514,245
-------------- -------------- -------------- -------------- --------------
End of year $ 41,758,579 $ 34,099,484 $ 14,332,569 $ 12,903,396 $ 10,960,490
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A4
<PAGE>
FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
SUBACCOUNTS
----------------------------------------------------------------------------------------------
HIGH
YIELD STOCK
BOND INDEX
---------------------------------------------- ----------------------------------------------
1996 1995 1994 1996 1995 1994
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)..... $ 72,664 $ 73,425 $ 62,776 $ 15,682 $ 13,423 $ 11,382
Capital gains distributions
received....................... 0 0 0 13,471 6,171 821
Realized gain (loss) on shares
redeemed
[average cost basis]........... 2,155 (535) 2,452 11,266 1,256 3,354
Net unrealized gain (loss) on
investments.................... 7,745 39,668 (85,121) 164,641 192,144 (12,240)
-------------- -------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS........ 82,564 112,558 (19,893) 205,060 212,994 3,317
-------------- -------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6]......................... (61,336) (790) 21,126 149,521 98,492 11,474
-------------- -------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7]......................... (916) (8,260) 3,640 6,642 (11,659) 5,387
-------------- -------------- -------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS........................... 20,312 103,508 4,873 361,223 299,827 20,178
NET ASSETS:
Beginning of year................ 765,983 662,475 657,602 854,763 554,936 534,758
-------------- -------------- -------------- -------------- -------------- --------------
End of year...................... $ 786,295 $ 765,983 $ 662,475 $ 1,215,986 $ 854,763 $ 554,936
-------------- -------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- -------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A5
<PAGE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
--------------------------------------------------------------
EQUITY NATURAL
INCOME RESOURCES
---------------------------------------------- --------------
1996 1995 1994 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 26,807 $ 24,231 $ 16,297 $ 1,990
Capital gains distributions
received 29,626 31,977 27,247 77,762
Realized gain (loss) on shares
redeemed
[average cost basis] 4,920 2,925 4,860 4,345
Net unrealized gain (loss) on
investments 104,296 64,528 (44,244) 56,286
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS 165,649 123,661 4,160 140,383
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6] 24,565 115,142 147,153 100,563
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7] 2,376 (8,841) (1,555) (7,604)
-------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 192,590 229,962 149,758 233,342
NET ASSETS:
Beginning of year 765,448 535,486 385,728 438,562
-------------- -------------- -------------- --------------
End of year $ 958,038 $ 765,448 $ 535,486 $ 671,904
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
<CAPTION>
GLOBAL**
----------------------------------------------
1995 1994 1996 1995 1994
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 3,612 $ 2,012 $ 5,621 $ 2,484 $ 67
Capital gains distributions
received 19,671 6,205 4,714 3,923 17
Realized gain (loss) on shares
redeemed
[average cost basis] 3,237 1,954 4,074 1,883 0
Net unrealized gain (loss) on
investments 60,792 (24,890) 31,135 18,037 (5,739)
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS 87,312 (14,719) 45,544 26,327 (5,655)
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6] 38,282 58,409 53,788 62,108 123,441
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7] (4,996) 1,637 92 (7,501) 11,674
-------------- -------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 120,598 45,327 99,424 80,934 129,460
NET ASSETS:
Beginning of year 317,964 272,637 210,394 129,460 0
-------------- -------------- -------------- -------------- --------------
End of year $ 438,562 $ 317,964 $ 309,818 $ 210,394 $ 129,460
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
**Commenced
Business
on 5/1/94
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A6
<PAGE>
FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
SUBACCOUNTS
------------------------------------------------------------------------------
GOVERNMENT PRUDENTIAL
INCOME JENNISON*
---------------------------------------------- ------------------------------
1996 1995 1994 1996 1995
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)...... $ 12,318 $ 11,942 $ 9,702 $ (59) $ (18)
Capital gains distributions
received........................ 0 0 0 0 0
Realized gain (loss) on shares
redeemed
[average cost basis]............ 278 548 173 254 632
Net unrealized gain (loss) on
investments..................... (8,709) 20,382 (18,996) 12,809 653
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS......... 3,887 32,872 (9,121) 13,004 1,267
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6].......................... 2,777 17,297 8,770 104,802 30,835
-------------- -------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7].......................... 1,959 (6,659) (4,225) (9,491) 9,185
-------------- -------------- -------------- -------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ 8,623 43,510 (4,576) 108,315 41,287
NET ASSETS:
Beginning of year................. 210,453 166,943 171,519 41,287 0
-------------- -------------- -------------- -------------- --------------
End of year....................... $ 219,076 $ 210,453 $ 166,943 $ 149,602 $ 41,287
-------------- -------------- -------------- -------------- --------------
-------------- -------------- -------------- -------------- --------------
*Commenced
Business
on 5/1/95
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A7
<PAGE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
------------------------------
SMALL
CAPITALIZATION
STOCK*
------------------------------
1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ 222 $ 40
Capital gains distributions
received 1,130 141
Realized gain (loss) on shares
redeemed
[average cost basis] 89 360
Net unrealized gain (loss) on
investments 5,484 1,089
-------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS 6,925 1,630
-------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
[NOTE 6] 47,113 8,464
-------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM EQUITY TRANSFERS
[NOTE 7] (11,989) 9,546
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 42,049 19,640
NET ASSETS:
Beginning of year 19,640 0
-------------- --------------
End of year $ 61,689 $ 19,640
-------------- --------------
-------------- --------------
*Commenced
Business
on 5/1/95
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS ON PAGES A9 THROUGH A12.
A8
<PAGE>
NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 1996
NOTE 1: GENERAL
Pruco Life of New Jersey Variable Insurance Account (the "Account") was
established on November 10, 1982 under New Jersey law as a separate investment
account of Pruco Life Insurance Company of New Jersey ("Pruco Life of New
Jersey") which is a wholly-owned subsidiary of Pruco Life Insurance Company (an
Arizona domiciled company) and is indirectly wholly-owned by The Prudential
Insurance Company of America ("Prudential"). The assets of the Account are
segregated from Pruco Life of New Jersey's other assets.
The Account is registered under the Investment Company Act of 1940, as amended,
as a unit investment trust. There are thirteen subaccounts within the Account,
each of which invests only in a corresponding portfolio of The Prudential Series
Fund, Inc. (the "Series Fund"). The Series Fund is a diversified open-end
management investment company and is managed by Prudential.
New sales of the product which invests in the Account were discontinued as of
January 1, 1992. However, premium payments made by current Contract owners will
continue to be received by the Account.
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are prepared in conformity with generally
accepted accounting principles (GAAP). The preparation of the financial
statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates.
Investments--The investments in shares of the Series Fund are stated at the net
asset value of the respective portfolio.
Security Transactions--Realized gains and losses on security transactions are
reported on an average cost basis. Purchase and sale transactions are recorded
as of the trade date of the security being purchased or sold.
Distributions Received--Dividend and capital gain distributions received are
reinvested in additional shares of the Series Fund and are recorded on
ex-dividend date.
Equity of Pruco Life Insurance Company of New Jersey--Pruco Life of New Jersey
maintains a position in the Account for the purpose of administering activity in
the Account. The activity includes unit transactions, fund share transactions,
and expense processing. Pruco Life of New Jersey monitors the balance daily and
transfers funds based upon anticipated activity. At times, Pruco Life of New
Jersey may owe an amount to the Account, which is reflected in Pruco Life of New
Jersey's equity as a negative balance. The position does not have an effect on
the Contract owner's account or the related unit value.
A9
<PAGE>
NOTE 3: INVESTMENT INFORMATION FOR THE PRUDENTIAL SERIES FUND, INC. PORTFOLIOS
The net asset value per share for each portfolio of the Series Fund, the number
of shares of each portfolio held by the subaccounts of the Account and the
aggregate cost of investments in such shares at December 31, 1996 were as
follows:
<TABLE>
<CAPTION>
PORTFOLIOS
-------------------------------------------------------------------------
MONEY DIVERSIFIED FLEXIBLE CONSERVATIVE
MARKET BOND EQUITY MANAGED BALANCED
------------ ------------ ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Number of shares: 740,534 821,822 2,268,003 2,589,047 923,665
Net asset value per share: $ 10.00000 $ 11.06543 $ 26.96489 $ 17.78763 $ 15.51706
Cost: $ 7,405,344 $8,742,333 $ 41,364,419 $39,383,634 $ 12,844,708
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIOS (CONTINUED)
--------------------------------------------------------
HIGH
YIELD STOCK EQUITY NATURAL
BOND INDEX INCOME RESOURCES
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Number of shares: 99,942 51,211 51,758 33,994
Net asset value per share: $ 7.86749 $ 23.74471 $ 18.50982 $ 19.76541
Cost: $ 792,093 $ 791,619 $ 798,772 $ 540,557
<CAPTION>
PORTFOLIOS (CONTINUED)
--------------------------------------------------------
SMALL
GOVERNMENT PRUDENTIAL CAPITALIZATION
GLOBAL INCOME JENNISON STOCK
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Number of shares: 17,352 19,524 10,445 4,473
Net asset value per share: $ 17.85474 $ 11.22109 $ 14.32319 $ 13.79187
Cost: $ 266,385 $ 221,679 $ 136,140 $ 55,115
</TABLE>
NOTE 4: CHARGES AND EXPENSES
A. Mortality Risk and Expense Risk Charges
The mortality risk and expense risk charges at an effective annual rate of
0.35% are applied daily against the net assets representing equity of
Contract owners held in each subaccount. Mortality risk is that Contract
holders may not live as long as estimated and expense risk is that the cost
of issuing and administering the policies may exceed the estimated expenses.
For 1996, the amount of these charges paid to Pruco Life of New Jersey was
$467,457.
B. Expense Reimbursement
Pursuant to a prior merger agreement, the Account is reimbursed by Pruco
Life of New Jersey for expenses in excess of 0.40% of the average daily net
assets incurred by the Money Market, Diversified Bond, Equity, Flexible
Managed and the Conservative Balanced Portfolios of the Series Fund. For
1996, the amount of these reimbursements totaled $206,712.
C. Cost of Insurance Charges
Contract holder contributions are applied to the account net of the
following charges: administrative charges, death benefit risk charges,
premium taxes, and sales loads. During 1996, Pruco Life of New Jersey,
received from Contract owners $1,486,936, $170,488, $284,147, and
$1,418,490, respectively, for these charges.
NOTE 5: TAXES
Pruco Life of New Jersey is taxed as a "life insurance company" under the
Internal Revenue Code and the operations of the Account form a part of and are
taxed with those of Pruco Life of New Jersey. Under current federal law, no
federal income taxes are payable by the Account. As such, no provision for tax
liability has been recorded.
A10
<PAGE>
NOTE 6: NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM PREMIUM PAYMENTS
AND OTHER OPERATING TRANSFERS
Contract owner activity in the subaccounts of the Account, for the year ended
December 31, 1996, was as follows:
<TABLE>
<CAPTION>
SUBACCOUNTS
--------------------------------------------------------------------------------
MONEY DIVERSIFIED FLEXIBLE CONSERVATIVE
MARKET BOND EQUITY MANAGED BALANCED
-------------- -------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Contract Owner
Contributions,
net: $ 1,051,566 $ 981,738 $ 5,286,505 $ 5,087,143 $ 1,763,402
Contract Owner
Redemptions: $ (1,114,077) $ (1,077,704) $ (7,257,659) $ (6,114,946) $ (1,842,521)
Net Transfers
from(to) other
subaccounts: $ (210,946) $ (170,816) $ 203,165 $ (184,415) $ (93,910)
</TABLE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
----------------------------------------------------------------
HIGH
YIELD STOCK EQUITY NATURAL
BOND INDEX INCOME RESOURCES
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Contract Owner
Contributions, net: $ 123,567 $ 180,154 $ 133,948 $ 88,071
Contract Owner
Redemptions: $ (168,075) $ (204,453) $ (138,011) $ (80,204)
Net Transfers from(to)
other subaccounts: $ (16,828) $ 173,820 $ 28,628 $ 92,696
<CAPTION>
SUBACCOUNTS (CONTINUED)
----------------------------------------------------------------
SMALL
GOVERNMENT PRUDENTIAL CAPITALIZATION
GLOBAL INCOME JENNISON STOCK
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Contract Owner
Contributions, net: $ 57,762 $ 27,663 $ 10,488 $ 6,516
Contract Owner
Redemptions: $ (50,540) $ (30,182) $ (9,285) $ (7,492)
Net Transfers from(to)
other subaccounts: $ 46,566 $ 5,296 $ 103,599 $ 48,089
</TABLE>
NOTE 7: NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM EQUITY TRANSFERS
The increase (decrease) in net assets resulting from equity transfers represents
the net contributions (withdrawals) of Pruco Life of New Jersey to (from) the
Account.
NOTE 8: UNIT ACTIVITY
Transactions in units (including transfers among subaccounts), for the year
ended December 31, 1996, were as follows:
<TABLE>
<CAPTION>
SUBACCOUNTS
---------------------------------------------------------------------------------------------
MONEY DIVERSIFIED FLEXIBLE CONSERVATIVE
MARKET BOND EQUITY MANAGED BALANCED
----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Contract Owner
Contributions: 469,085.861 297,932.582 925,104.800 1,170,076.535 492,415.156
Contract Owner
Redemptions: (591,107.081) (378,683.297) (1,221,515.937) (1,444,852.506) (539,429.266)
</TABLE>
<TABLE>
<CAPTION>
SUBACCOUNTS (CONTINUED)
--------------------------------------------------------------------------
HIGH
YIELD STOCK EQUITY NATURAL
BOND INDEX INCOME RESOURCES
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Contract Owner
Contributions: 58,550.732 125,596.561 56,306.151 64,999.386
Contract Owner
Redemptions: (86,929.485) (72,698.020) (47,941.070) (29,066.586)
<CAPTION>
SUBACCOUNTS (CONTINUED)
--------------------------------------------------------------------------
SMALL
GOVERNMENT PRUDENTIAL CAPITALIZATION
GLOBAL INCOME JENNISON STOCK
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Contract Owner
Contributions: 85,485.420 18,120.947 85,472.768 42,083.988
Contract Owner
Redemptions: (41,936.009) (16,709.953) (6,976.575) (5,764.632)
</TABLE>
A11
<PAGE>
NOTE 9: PURCHASES AND SALES OF INVESTMENTS
The aggregate costs of purchases and proceeds from sales of investments in the
Series Fund, Inc. were as follows:
<TABLE>
<CAPTION>
PORTFOLIOS
--------------------------------------------------------------------------------
MONEY DIVERSIFIED FLEXIBLE CONSERVATIVE
MARKET BOND EQUITY MANAGED BALANCED
-------------- -------------- --------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1996
Purchases......... $ 107.000 $ 83,000 $ 194,000 $ 431,000 $ 224,000
Sales............. $ (419,000) $ (390,000) $ (2,062,000) $ (1,749,000) $ (424,000)
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIOS (CONTINUED)
----------------------------------------------------------------
HIGH
YIELD STOCK EQUITY NATURAL
BOND INDEX INCOME RESOURCES
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
For the year ended
December 31, 1996
Purchases........... $ 16,000 $ 173,000 $ 64,000 $ 109,000
Sales............... $ (81,000) $ (37,000) $ (40,000) $ (18,000)
<CAPTION>
PORTFOLIOS (CONTINUED)
----------------------------------------------------------------
SMALL
GOVERNMENT PRUDENTIAL CAPITALIZATION
GLOBAL INCOME JENNISON STOCK
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
For the year ended
December 31, 1996
Purchases........... $ 85,000 $ 20,000 $ 100,000 $ 40,000
Sales............... $ (32,000) $ (15,000) $ (5,000) $ (5,000)
</TABLE>
A12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contract Owners of
Pruco Life of New Jersey Variable Insurance Account
and the Board of Directors of
Pruco Life Insurance Company of New Jersey
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets present fairly, in all
material respects, the financial position of Money Market Subaccount,
Diversified Bond Subaccount, Equity Subaccount, Flexible Managed Subaccount,
Conservative Balanced Subaccount, High Yield Bond Subaccount, Stock Index
Subaccount, Equity Income Subaccount, Natural Resources Subaccount, Global
Subaccount, Government Income Subaccount, Prudential Jennison Subaccount and
Small Capitalization Stock Subaccount of Pruco Life of New Jersey Variable
Insurance Account at December 31, 1996, and the results of each of their
operations and the changes in each of their net assets for the year then ended,
in conformity with generally accepted accounting principles. These financial
statements are the responsibility of Pruco Life Insurance Company of New
Jersey's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of shares owned in The Prudential Series Fund, Inc. at December 31,
1996, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
New York, New York
March 31, 1997
A13
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners of
Pruco Life of New Jersey Variable Insurance
Account and the Board of Directors
of Pruco Life Insurance Company of New Jersey
Newark, New Jersey
We have audited the accompanying statements of changes in net assets of Pruco
Life of New Jersey Variable Insurance Account of Pruco Life Insurance Company of
New Jersey (comprising, respectively, the Money Market, Diversified Bond,
Equity, Flexible Managed, Conservative Balanced, High Yield Bond, Stock Index,
Equity Income, Natural Resources, Global, Government Income, Prudential
Jennison, and Small Capitalization Stock subaccounts) for each of the periods
presented for each of the two years ended December 31, 1995. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the changes in net assets of each of the respective subaccounts
constituting the Pruco Life of New Jersey Variable Insurance Account for the
respective stated periods in conformity with generally accepted accounting
principles.
Deloitte & Touche LLP
Parsippany, New Jersey
February 15, 1996
A14
<PAGE>
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31,
1996 1995
---------- ----------
(000'S)
ASSETS
Fixed maturities - Available for sale $ 555,898 $ 513,433
Policy loans 113,918 98,194
Short term investments 17,002 45,308
---------- ----------
Total invested assets 686,818 656,935
---------- ----------
Cash 3,928 --
Deferred policy acquisition costs 106,965 96,031
Premiums due 401 344
Accrued investment income 12,908 11,579
Receivable from affiliates -- 3,616
Federal income tax receivable -- 69
Other assets 1,335 281
Separate Account assets 883,261 789,427
---------- ----------
TOTAL ASSETS $1,695,616 $1,558,282
========== ==========
LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES
Future policy benefits and other policyholders' $ 100,663 $ 92,045
liabilities
Policyholders' account balances 375,448 375,193
Federal income tax payable 1,970 --
Deferred federal income tax payable 24,175 23,809
Payable to affiliate 6,059 5,375
Other liabilities 11,990 6,279
Separate Account liabilities 880,065 787,566
---------- ----------
TOTAL LIABILITIES 1,400,370 1,290,267
---------- ----------
CONTINGENCIES - NOTE 9
STOCKHOLDER'S EQUITY
Common Stock, $5 par value;
400,000 shares,
authorized; issued and
outstanding at December 31, 1996 and 1995 2,000 2,000
Paid-in-capital 125,000 125,000
Net unrealized investment gains (less deferred income 2,032 6,588
tax)
Retained earnings 166,214 134,427
---------- ----------
TOTAL STOCKHOLDER'S EQUITY 295,246 268,015
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $1,695,616 $1,558,282
========== ==========
SEE NOTES TO THE FINANCIAL STATEMENTS
B-1
<PAGE>
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
STATEMENTS OF OPERATIONS
YEAR ENDED
DECEMBER 31,
1996 1995 1994
----------------------------
(000'S)
REVENUES
Premiums $ 1,345 $ 1,042 $ 1,869
Policy charges and fee income 58,571 59,515 55,021
Net investment income 43,784 43,530 42,357
Realized investment gains(losses) 1,221 3,592 (8,310)
Other income 4,047 3,900 3,201
----------------------------
TOTAL REVENUES 108,968 111,579 94,138
----------------------------
BENEFITS AND EXPENSES
Policyholders' benefits 28,653 26,331 22,788
Interest credited to policyholders' account 20,069 21,364 22,151
balances
Other operating costs and expenses 12,848 21,881 23,716
----------------------------
TOTAL BENEFITS AND EXPENSES 61,570 69,576 68,655
----------------------------
Income before income tax provision 47,398 42,003 25,483
Income tax provision 15,611 15,002 9,483
----------------------------
NET INCOME $ 31,787 $ 27,001 $ 16,000
============================
SEE NOTES TO THE FINANCIAL STATEMENTS
B-2
<PAGE>
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
STATEMENTS OF STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
1996 1995 1994
--------------------------------
(000'S)
<S> <C> <C> <C>
COMMON STOCK
Balance, beginning of year $ 2,000 $ 2,000 $ 2,000
Issued during year -- -- --
--------------------------------
Balance, end of year 2,000 2,000 2,000
--------------------------------
PAID IN CAPITAL
Balance, beginning of year 125,000 125,000 125,000
Paid in during year -- -- --
--------------------------------
Balance, end of year 125,000 125,000 125,000
--------------------------------
NET UNREALIZED INVESTMENT GAINS (LESS DEFERRED
INCOME TAX)
Balance, beginning of year 6,588 -- --
Adoption of SFAS 115 -- (11,189) --
Net change in unrealized investment gains(losses) (4,556) 17,777 --
--------------------------------
Balance, end of year 2,032 6,588 --
--------------------------------
RETAINED EARNINGS
Balance, beginning of year 134,427 107,426 91,426
Net income 31,787 27,001 16,000
--------------------------------
Balance, end of year 166,214 134,427 107,426
--------------------------------
TOTAL STOCKHOLDER'S EQUITY $ 295,246 $ 268,015 $234,426
================================
</TABLE>
SEE NOTES TO THE FINANCIAL STATEMENTS
B-3
<PAGE>
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
1996 1995 1994
---------------------------------
(000'S)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 31,787 $ 27,001 $ 16,000
Adjustments to reconcile net income to net cash from
operating activities:
Increase in future policy benefits and other policyholders' 8,618 900 3,936
liabilities
General account policy fee income (9,963) (11,931) (7,744)
Interest credited to policyholders' account balances 20,069 21,364 22,151
Net decrease (increase) in Separate Accounts (1,335) 260 (310)
Net realized investment (gains)losses (1,221) (3,592) 8,310
Amortization and other non-cash items 8,908 (6,839) 3,778
Change in:
Accrued investment income (1,329) (317) (679)
Premiums due (57) 41 26
Receivable from affiliates 3,616 (1,789) (132)
Deferred policy acquisition costs (10,934) 9,074 4,727
Other assets (985) 1,287 2,759
Payable to affiliate 684 807 (3,798)
Federal income tax payable 1,970 8,328 (7,869)
Deferred federal income tax payable 366 3,460 (1,183)
Other liabilities 5,711 (304) 2,988
---------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES 55,905 47,750 42,960
---------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity of:
Fixed maturities:
Held to maturity -- -- 705,888
Available for sale 901,775 553,681 --
Payments for the purchase of:
Fixed maturities:
Held to maturity -- -- (658,008)
Available for sale (956,483) (522,757) --
Policy loans (15,724) (12,917) (15,511)
Net proceeds (payments) of short term investments 28,306 (3,613) (12,095)
---------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES (42,126) 14,394 20,274
---------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits 16,754 18,348 22,336
Withdrawals (net of transfers to/from separate accounts) (26,605) (80,509) (85,590)
---------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES (9,851) (62,161) (63,254)
---------------------------------
Net increase(decrease) in Cash 3,928 (17) (20)
Cash, beginning of year -- 17 37
---------------------------------
CASH , END OF YEAR $ 3,928 $ 0 $ 17
=================================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Income taxes paid $ 11,673 $ 7,900 $ 17,679
=================================
</TABLE>
SEE NOTES TO THE FINANCIAL STATEMENTS
B-4
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRINCIPLES
A. GENERAL
Pruco Life Insurance Company of New Jersey (the Company), a stock life insurance
company domiciled in New Jersey, is an indirect subsidiary of The Prudential
Insurance Company of America (Prudential), a mutual life insurance company, and
a direct subsidiary of Pruco Life Insurance Company (Pruco Life), a stock life
insurance company domiciled in the state of Arizona. The Company markets
individual life insurance and annuities through Prudential's sales force.
B. BASIS OF PRESENTATION
The Financial Accounting Standards Board (FASB) issued Interpretation No. 40,
"Applicability of Generally Accepted Accounting Principles to Mutual Life
Insurance and Other Enterprises", as amended by Statement of Financial
Accounting Standards (SFAS) No. 120, "Accounting and Reporting by Mutual Life
Insurance Enterprises and by Insurance Enterprises for Certain Long-Duration
Participating Contracts", effective for fiscal years beginning after December
15, 1995. Financial statements of mutual life insurance companies, and their
wholly owned stock life insurance subsidiaries, for periods beginning after
December 15, 1995 which are prepared on the basis of statutory accounting
practices will no longer be characterized as in conformity with generally
accepted accounting principles (GAAP). As a result, the Company has prepared its
1996 financial statements in accordance with all applicable GAAP pronouncements.
The 1995 and 1994 financial statements, which were previously prepared on the
statutory basis of accounting, have been restated in accordance with GAAP. The
cumulative effect of adopting GAAP as of January 1, 1994 was an increase in
retained earnings of $63.6 million. See Note 7 for a reconciliation of the
Company's surplus and net income determined in accordance with statutory
accounting practices with equity and net income determined on a GAAP basis.
On January 1, 1995, the Company adopted SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities," which expanded the use of fair value
accounting for those securities that a company does not have positive intent and
ability to hold to maturity. Implementation of this statement decreased
stockholder's equity by $11.2 million net of deferred income tax benefit of $6.3
million. In 1994 prior to the adoption of SFAS 115, all fixed maturities were
carried at amortized cost.
C. INVESTMENTS
Fixed Maturities - Where the Company may not have the positive intent to hold
fixed maturities until maturity, the securities are classified as "Available for
Sale." These securities are reported at market value based principally on their
quoted market prices. The associated unrealized gains and losses, net of income
taxes and deferred policy acquisition costs, are included as a component of
equity or if deemed to be other than temporary, are included as a realized loss.
Policy Loans are stated primarily at unpaid principal balances.
Realized Investment Gains and Losses are reported based on specific
identification of the investments sold.
Short-term investments are fixed maturities that mature within one year, and are
reported at estimated fair value.
D. REVENUE RECOGNITION AND RELATED EXPENSES
Universal life contracts are long duration life insurance contracts that involve
significant mortality and morbidity risk with both fixed and guaranteed terms.
Investment contracts, such as deferred annuities, are long duration contracts
that do not subject the insurance enterprise to risks arising from policyholder
mortality or morbidity. Amounts received as payments for these contracts are
reported as deposits to policyholders' account balances. Revenues from these
contracts consist primarily of amounts assessed during the period against
policyholders' account balances for mortality charges, policy administration
fees and surrender charges. Policy benefits and claims that are charged to
expenses include benefit claims incurred in the period in excess of related
policyholders' account balances.
Premiums, policy benefits and claims from individual life policies and payout
annuities, generally are recognized in operations when due.
B-5
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
E. DEFERRED POLICY ACQUISITION COSTS
Acquisition costs consist of commissions and other costs which vary with and are
primarily related to the production or acquisition of new business. Acquisition
costs related to universal life products and investment-type contracts are
deferred and amortized in proportion to total estimated gross profits arising
principally from investment results, mortality, expense margins and surrender
charges based on historical and anticipated future experience. As required,
amortization expense also includes the impact of revised estimates to expected
gross profits, which is the basis for amortizing deferred policy acquisition
costs. Amortization of deferred policy acquisition costs, including the impact
of revised estimates of gross profits, was $(2.2) million, $8.9 million, and
$11.0 million for the years ended December 31, 1996, 1995, and 1994,
respectively. Deferred policy acquisition costs are analyzed to determine if
they are recoverable from future income, including investment income. If such
costs are determined to be unrecoverable, they are expensed at the time of
determination. The effect on the deferred policy acquisition asset that would
result from realization of unrealized investment gains(losses) is recognized
with an offset to unrealized investment gains(losses) in stockholder's equity.
F. FUTURE POLICY BENEFITS AND POLICYHOLDERS' ACCOUNT BALANCES
Benefit reserve liabilities for payout annuities such as matured deferred
annuities and supplementary contracts represent the present values of estimated
future benefits payments and related expenses. Present values for matured
deferred annuity contracts are computed using interest rates ranging from 6.5%
to 8.75%. The mortality assumption for these contracts is the 83 IAM tables.
Reserves for supplementary contracts are stated at interest rates that vary from
7.25% to 8.25% using mortality and morbidity assumptions either from company
experience or various actuarial tables.
When liabilities for future policy benefits plus the present value of expected
future gross deposits are insufficient to provide expected future policy
benefits and expenses, unrecoverable deferred policy acquisition costs are
written off and thereafter, if required, a premium deficiency reserve is
established as a charge to income.
Policyholders' account balances for universal life and investment-type contracts
are equal to the policy account values. The policy account values represent an
accumulation of gross deposits plus interest credited less expense and mortality
charges and withdrawals.
Interest crediting rates on life insurance products range from 3.4% to 6.6%.
G. SEPARATE ACCOUNTS
Separate Accounts represent funds for which investment income and investment
gains and losses accrue directly to, and investment risk is borne by, the
policyholders. All Separate Account assets are carried at market value. Deposits
to all Separate Accounts are reported as increases in Separate Account
liabilities, which equal the Separate Account policy account fund values.
Charges assessed against policyholders' account balances for mortality, policy
administration and surrender charges are included in policy charges and fee
income. Mortality and expense risk charges are applied against the
policyholders' account balance. The Separate Account assets are legally
segregated and are not subject to claims that arise out of any other business of
the Company.
H. ESTIMATES
The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
B-6
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
2. FIXED MATURITIES
Gross unrealized gains and losses for securities, by major security type, are as
follows:
<TABLE>
<CAPTION>
DECEMBER, 31, 1996
- ------------------------------------------------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Fair
(000's) Cost Gains Losses Value
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AVAILABLE FOR SALE
U.S. Treasury securities and obligations
of U.S. government corporations and $ 29,386 $ 1 $ 174 $ 29,213
agencies
Foreign government bonds 38,853 420 52 39,221
Corporate securities 483,439 5,108 1,133 487,414
Mortgage-backed securities 50 -- -- 50
- ------------------------------------------------------------------------------------------------------
Total $551,728 $ 5,529 $1,359 $555,898
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1995
- ------------------------------------------------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Fair
(000's) Cost Gains Losses Value
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AVAILABLE FOR SALE
U.S. Treasury securities and obligations
of U.S. government corporations and $ 81,806 $ 1,287 $ -- $ 83,093
agencies
Foreign government bonds 25,849 1,128 -- 26,977
Corporate securities 353,514 11,130 340 364,304
Mortgage-backed securities 36,872 2,192 5 39,059
- ------------------------------------------------------------------------------------------------------
Total $498,041 $15,737 $ 345 $513,433
- ------------------------------------------------------------------------------------------------------
</TABLE>
B-7
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
The amortized cost and estimated fair value of fixed maturities at December 31,
1996, categorized by contractual maturity, are shown below. Actual maturities
will differ from contractual maturities because borrowers may prepay obligations
with or without call or prepayment penalties.
DECEMBER 31, 1996
- ---------------------------------------------------------------------------
Estimated
Amortized Fair
(000's) Cost Value
- ---------------------------------------------------------------------------
AVAILABLE FOR SALE
Due in one year or less $ 43,723 $ 43,951
Due after one year through five years 444,883 448,048
Due after five years through ten years 57,989 58,586
Due after ten years 5,083 5,263
Mortgage-backed securities 50 50
- ---------------------------------------------------------------------------
Total $551,728 $555,898
- ---------------------------------------------------------------------------
Proceeds from the sale of fixed maturities during 1996, 1995, and 1994 were
$869.6 million, $535.3 million, and $672.8 million, respectively. Gross gains of
$5.2 million, $6.8 million, and $3.3 million and gross losses of $4.0 million,
$3.2 million, and $11.6 million were realized on those sales during 1996, 1995,
and 1994, respectively.
B-8
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
<TABLE>
<CAPTION>
3. NET INVESTMENT INCOME
YEAR ENDED
DECEMBER 31,
Net investment income consists of: 1996 1995 1994
----------------------------------
Gross investment income (000'S)
<S> <C> <C> <C>
Fixed maturities $ 36,193 $ 36,861 $ 36,565
Policy loans 5,761 5,029 4,290
Short term investments 2,504 2,290 2,364
Other 28 51 44
----------------------------------
44,486 44,231 43,263
Investment expenses (702) (701) (906)
----------------------------------
Net investment income $ 43,784 $ 43,530 $ 42,357
==================================
4. INVESTMENT GAINS(LOSSES)
YEAR ENDED
DECEMBER 31,
1996 1995 1994
----------------------------------
(000'S)
Fixed maturities:
Realized investment gains $ 5,232 $ 6,785 $ 3,327
Realized investment losses (4,011) (3,193) (11,637)
----------------------------------
Realized investment gains(losses) $ 1,221 $ 3,592 ($ 8,310)
==================================
YEAR ENDED
DECEMBER 31,
1996 1995 1994
----------------------------------
(000'S)
<S> <C> <C> <C>
Net unrealized investment gains, beginning of period $ 6,588 $ -- $ --
Net unrealized investment gains(losses) on fixed maturities (11,222) 32,875 --
Deferred income tax benefit(provision) 4,040 (11,835) --
Deferred policy acquisition costs (net of deferred income 2,626 (3,263) --
taxes)
----------------------------------
Net change in unrealized investment gains(losses) (4,556) 17,777 --
Adoption of SFAS 115 -- (11,189) --
----------------------------------
Net unrealized investment gains, end of period $ 2,032 $ 6,588 $ --
==================================
</TABLE>
B-9
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
5. FAIR VALUE INFORMATION
The fair value amounts have been determined by the Company using available
information and reasonable valuation methodologies. Considerable judgment is
applied, as necessary, in interpreting data to develop the estimates of fair
value. Accordingly, the estimates presented may not be realized in a current
market exchange. The use of different market assumptions and/or estimation
methodologies could have a material effect on the estimated fair values.
The following methods and assumptions were used in calculating the fair values.
Fixed Maturities - Fair values for fixed maturities are based on quoted market
prices or estimates from independent pricing services.
Policy Loans - The estimated fair value is calculated using a discounted cash
flow model based upon current U.S. Treasury rates and historical loan repayment.
Policyholders' Account Balances - Fair values for policyholders' account
balances are equal to the policy account values.
Short-term Investments - Fair values for short-term investments are based on
quoted market prices or estimates from independent pricing services.
The following table discloses the carrying amounts and estimated fair values of
the Company's financial instruments at December 31, 1996 and 1995:
<TABLE>
<CAPTION>
1996 1995
CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE
-------------- ---------- -------------- ----------
(000'S)
<S> <C> <C> <C> <C>
Financial Assets:
Fixed maturities -- Available
for sale $555,898 $555,898 $513,433 $513,433
Policy loans 113,918 110,262 98,194 99,057
Short-term investments 17,002 17,002 45,308 45,308
Financial Liabilities:
Policyholders'
account balances $375,448 $375,448 $375,193 $375,193
</TABLE>
B-10
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
6. INCOME TAXES
The Company is a member of a group of affiliated companies which join in filing
a consolidated federal income tax return in addition to separate company state
and local tax returns. The Internal Revenue Code limits the amount of nonlife
insurance losses that may offset life insurance company taxable income.
Companies operating outside the United States are taxed under applicable foreign
statutes.
Pursuant to the tax allocation arrangement, total federal income tax expense is
determined on a separate company basis. Members with losses record tax benefits
to the extent such losses are recognized in the consolidated federal tax
provision.
Deferred income taxes are generally recognized when assets and liabilities have
different values for financial statement and tax reporting purposes.
The components of income taxes are as follows:
YEAR ENDED
DECEMBER 31,
1996 1995 1994
------------------------------
(000'S)
Current income tax provision:
Federal income tax $ 13,589 $ 13,868 $ 9,431
State and local income tax (907) 1,380 1,235
------------------------------
Total current income tax 12,682 15,248 10,666
Deferred income tax provision (benefit):
Federal income tax 2,848 (239) (1,150)
State and local income tax 81 (7) (33)
------------------------------
Total deferred income tax 2,929 (246) (1,183)
------------------------------
Total income tax provision $ 15,611 $ 15,002 $ 9,483
==============================
The income tax provision is different from the amount computed using the
expected federal income tax rate of 35% for the following reasons:
YEAR ENDED
DECEMBER 31,
1996 1995 1994
---------------------------------
(000'S)
Expected federal income tax expense $ 16,589 $ 14,702 $ 8,919
State income taxes (826) 1,373 1,202
Other (152) (1,073) (638)
---------------------------------
Total income tax provision $ 15,611 $ 15,002 $ 9,483
=================================
B-11
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
The components of net deferred income taxes payable are as follows:
YEAR ENDED
DECEMBER 31,
1996 1995
------- -------
DEFERRED INCOME TAX ASSETS (000'S)
Insurance liabilities $ 6,189 $ 6,966
Other -- 276
------- -------
Total deferred income tax assets $ 6,189 $ 7,242
------- -------
DEFERRED INCOME TAX LIABILITIES
Deferred acquisition costs $28,424 $25,322
Net investment gains 1,940 5,729
------- -------
Total deferred income tax liabilities 30,364 31,051
------- -------
Deferred federal income tax payable $24,175 $23,809
======= =======
The Internal Revenue Service (the "Service") has completed examinations of the
consolidated federal income tax returns through 1989. The Service is examining
the years 1990 through 1992. Discussions are being held with the Service with
respect to proposed adjustments. However, management believes there are adequate
defenses against, or sufficient reserves to provide for, such adjustments.
B-12
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
7. STOCKHOLDER'S EQUITY RECONCILIATION
The reconciliation of statutory net income to GAAP net income, and statutory
surplus to GAAP equity as of December 31, 1996, 1995, and 1994 are as follows:
1996 1995 1994
---------------------------------
(000'S)
Statutory net income $ 24,774 $ 25,567 $ 16,309
Deferred acquisition costs 5,656 (2,589) (4,727)
Deferred premium 221 (58) 241
Insurance liabilities 1,154 4,366 4,614
Income taxes (2,883) 510 8,518
Interest maintenance reserve (765) 1,285 (10,327)
Separate accounts and other 3,630 (2,080) 1,372
---------------------------------
GAAP net income $ 31,787 $ 27,001 $ 16,000
=================================
Statutory surplus $ 216,019 $ 191,607 $ 163,066
Investment valuation 4,170 15,392 --
Deferred acquisition costs 106,965 96,031 105,105
Deferred premium (2,205) (2,426) (2,368)
Insurance liabilities (21,501) (25,062) (23,882)
Income taxes (21,829) (21,510) (13,015)
Asset valuation reserve and interest
maintenance reserve 13,598 13,966 5,512
Other 29 17 8
---------------------------------
GAAP stockholder's equity $ 295,246 $ 268,015 $ 234,426
=================================
The New York State Insurance Department ("Department") recognizes only statutory
accounting for determining and reporting the financial condition and results of
operations of an insurance company, for determining its solvency under the New
York Insurance Law, and for determining whether its financial condition warrants
the payment of a dividend to its stockholders. No consideration is given by the
Department to financial statements prepared in accordance with generally
accepted accounting principles in making such determinations.
B-13
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OF
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
DECEMBER 31, 1996, 1995, AND 1994
8. RELATED PARTY TRANSACTIONS
A. SERVICE AGREEMENTS
The Company, Prudential, Pruco Life, and Pruco Securities Corporation, an
indirect wholly-owned subsidiary of Prudential, operate under service and lease
agreements whereby services of officers and employees, supplies, use of
equipment and office space are provided. The net cost of these services
allocated to the Company were $12 million, $16 million, and $15 million for the
years ended December 31, 1996, 1995, and 1994, respectively.
B. PENSION PLANS
The Company is an indirect wholly-owned subsidiary of Prudential which sponsors
several defined benefit pension plans that cover substantially all of its
employees. Benefits are generally based on career average earnings and credited
length of service. Prudential's funding policy is to contribute annually the
amount necessary to satisfy the Internal Revenue Service contribution
guidelines.
No pension expense for contributions to the plan was allocated to the Company in
1996, 1995, or 1994 because the plan was subject to the full funding limitation
under the Internal Revenue Code.
C. POSTRETIREMENT LIFE AND HEALTH BENEFITS
Prudential also sponsors certain life insurance and health care benefits for its
retired employees. Substantially all employees may become eligible to receive a
benefit if they retire after age 55 with at least 10 years of service.
Prudential elected to amortize its obligation over twenty years. A provision for
contributions to the postretirement fund is included in the net cost of services
allocated to the Company discussed above for the years ended December 31, 1996,
1995, and 1994.
D. REINSURANCE
The Company currently has one reinsurance agreement in place with Prudential
(the reinsurer). This contract is a yearly renewable term agreement in which the
Company may offer and the reinsurer may accept reinsurance on any life in excess
of the Company's maximum limit of retention of $2.5 million. The Company is not
relieved of its primary obligation to the policyholder as a result of this
reinsurance transaction. This agreement had no material effect on net income for
the years ended December 31, 1996, 1995, and 1994.
9. CONTINGENCIES
Several actions have been brought against the Company on behalf of those persons
who purchased life insurance policies based on complaints about sales practices
engaged in by Prudential, the Company and agents appointed by Prudential and the
Company. Prudential has agreed to indemnify the Company for any and all losses
resulting from such litigation.
10. DIVIDENDS
The Company is subject to New Jersey law which limits the amount of dividends
that insurance companies may pay to stockholders. The maximum dividend which may
be paid in any twelve month period without prior approval of the New Jersey
Commissioner of Insurance is limited to the greater of 10% of surplus as of
December 31 of the preceding year or the net gain from operations of the
preceding calendar year. Cash dividends may only be paid out of surplus derived
from realized net profits. Based on these limitations and the Company's surplus
position at December 31, 1996, the Company would be permitted a maximum of $25
million in dividend distributions in 1997, all of which could be paid in cash,
without approval from The State of New Jersey Department of Insurance.
B-14
<PAGE>
Report of Independent Accountants
To the Board of Directors of
Pruco Life Insurance Company of New Jersey
In our opinion, the accompanying statement of financial position and the related
statements of operations, of stockholder's equity and of cash flows present
fairly, in all material respects, the financial position of Pruco Life Insurance
Company of New Jersey at December 31, 1996, and the results of its operations
and its cash flows for the year in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the Company's
management; our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for the opinion expressed
above.
/s/
PRICE WATERHOUSE LLP
New York, New York
April 11, 1997
B-15
<PAGE>
INDEPENDENT AUDITORS' REPORT
To The Board of Directors of
Pruco Life Insurance Company of New Jersey
Newark, New Jersey
We have audited the accompanying statement of financial position of Pruco Life
Insurance Company of New Jersey as of December 31, 1995, and the related
statements of operations, stockholder's equity and cash flows for the years
ended December 31, 1995 and 1994. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on the financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the accompanying financial statements presents fairly, in all
material respects, the financial position of Pruco Life Insurance Company of New
Jersey as of December 31, 1995, and the results of operations and cash flows for
the years ended December 31, 1995 and 1994 in conformity with generally accepted
accounting principles.
As discussed in Note 1 to the financial statements, the Company has
retroactively adopted all applicable generally accepted accounting principles
relating to stock life insurance subsidiaries of mutual life insurance companies
and has changed, as of January 1, 1995, the method of accounting for fixed
maturity investments.
/s/
Deloitte & Touche LLP
Parsippany, NJ
December 19, 1996
B-16
<PAGE>
ADDITIONAL ILLUSTRATIONS OF
CASH VALUES, DEATH BENEFITS, AND ACCUMULATED PREMIUMS
-----------------------------------------------------
VARIABLE LIFE INSURANCE CONTRACT
MALE ISSUE AGE 25
$50,000 GUARANTEED DEATH BENEFIT
$536.50 ANNUAL PREMIUM FOR STANDARD UNDERWRITING RISK (1)
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH VALUE (2)
---------------------------------------------- ----------------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED ---------------------------------------------- ----------------------------------------------
POLICY AT 4% INTEREST 0% GROSS 6% GROSS 12% GROSS 0% GROSS 6% GROSS 12% GROSS
YEAR PER YEAR (-0.86% NET) (5.14% NET) (11.14% NET) (-0.86% NET) (5.14% NET) (11.14% NET)
---------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 558 $50,000 $50,004 $ 50,026 $ 22 $ 26 $ 31
2 $ 1,138 $50,000 $50,029 $ 50,184 $ 376 $ 406 $ 437
3 $ 1,742 $50,000 $50,074 $ 50,479 $ 729 $ 807 $ 889
4 $ 2,369 $50,000 $50,140 $ 50,918 $1,080 $ 1,229 $ 1,392
5 $ 3,022 $50,000 $50,226 $ 51,511 $1,437 $ 1,682 $ 1,961
6 $ 3,701 $50,000 $50,332 $ 52,265 $1,790 $ 2,157 $ 2,590
7 $ 4,407 $50,000 $50,458 $ 53,187 $2,139 $ 2,655 $ 3,287
8 $ 5,141 $50,000 $50,604 $ 54,287 $2,484 $ 3,176 $ 4,058
9 $ 5,905 $50,000 $50,768 $ 55,571 $2,824 $ 3,720 $ 4,909
10 $ 6,699 $50,000 $50,952 $ 57,049 $3,159 $ 4,288 $ 5,849
15 $11,172 $50,000 $52,137 $ 67,720 $4,727 $ 7,498 $ 12,195
20 $16,615 $50,000 $53,734 $ 85,043 $6,082 $11,351 $ 22,400
25 $23,237 $50,000 $55,706 $111,201 $7,214 $15,928 $ 38,707
30 $31,293 $50,000 $58,021 $149,321 $8,098 $21,280 $ 64,512
40 (AGE 65) $53,020 $50,000 $63,592 $280,879 $9,005 $34,192 $166,707
</TABLE>
(1) IF PREMIUMS ARE PAID MORE FREQUENTLY THAN ANNUALLY, THE PAYMENTS WOULD BE
$274.50 SEMI-ANNUALLY, $139.50 QUARTERLY OR $48 MONTHLY. THE DEATH BENEFITS
AND CASH VALUES WOULD BE SLIGHTLY DIFFERENT FOR A CONTRACT WITH MORE
FREQUENT PREMIUM PAYMENTS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN
THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A
REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES
OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER
OF FACTORS INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER,
PREVAILING INTEREST RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND
CASH VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
RATES OF RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS BUT ALSO
FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO
REPRESENTATIONS CAN BE MADE BY PRUCO LIFE OF NEW JERSEY OR THE SERIES FUND
THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C1
<PAGE>
VARIABLE LIFE INSURANCE CONTRACT
MALE ISSUE AGE 40
$50,000 GUARANTEED DEATH BENEFIT
$939 ANNUAL PREMIUM FOR STANDARD UNDERWRITING RISK (1)
<TABLE>
<CAPTION>
DEATH BENEFIT (2) CASH VALUE (2)
---------------------------------------------- ----------------------------------------------
ASSUMING HYPOTHETICAL GROSS (AND NET) ASSUMING HYPOTHETICAL GROSS (AND NET)
PREMIUMS ANNUAL INVESTMENT RETURN OF ANNUAL INVESTMENT RETURN OF
END OF ACCUMULATED ---------------------------------------------- ----------------------------------------------
POLICY AT 4% INTEREST 0% GROSS 6% GROSS 12% GROSS 0% GROSS 6% GROSS 12% GROSS
YEAR PER YEAR (-0.86% NET) (5.14% NET) (11.14% NET) (-0.86% NET) (5.14% NET) (11.14% NET)
---------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 977 $50,000 $50,010 $ 50,065 $ 197 $ 214 $ 231
2 $ 1,992 $50,000 $50,043 $ 50,276 $ 815 $ 887 $ 962
3 $ 3,048 $50,000 $50,098 $ 50,635 $ 1,417 $ 1,584 $ 1,762
4 $ 4,147 $50,000 $50,174 $ 51,149 $ 2,001 $ 2,302 $ 2,636
5 $ 5,289 $50,000 $50,273 $ 51,836 $ 2,641 $ 3,121 $ 3,672
6 $ 6,477 $50,000 $50,395 $ 52,703 $ 3,263 $ 3,967 $ 4,807
7 $ 7,713 $50,000 $50,538 $ 53,759 $ 3,868 $ 4,843 $ 6,051
8 $ 8,998 $50,000 $50,702 $ 55,009 $ 4,456 $ 5,747 $ 7,413
9 $10,335 $50,000 $50,887 $ 56,464 $ 5,026 $ 6,683 $ 8,905
10 $11,725 $50,000 $51,092 $ 58,133 $ 5,579 $ 7,649 $10,539
15 $19,554 $50,000 $52,405 $ 70,077 $ 8,039 $12,918 $21,286
20 $29,080 $50,000 $54,155 $ 89,296 $ 9,949 $18,885 $37,877
25 (AGE 65) $40,670 $50,000 $56,297 $118,168 $11,302 $25,518 $63,250
</TABLE>
(1) IF PREMIUMS ARE PAID MORE FREQUENTLY THAN ANNUALLY, THE PAYMENTS WOULD BE
$479.50 SEMI-ANNUALLY, $243 QUARTERLY OR $82.50 MONTHLY. THE DEATH BENEFITS
AND CASH VALUES WOULD BE SLIGHTLY DIFFERENT FOR A CONTRACT WITH MORE
FREQUENT PREMIUM PAYMENTS.
(2) ASSUMES NO CONTRACT LOAN HAS BEEN MADE.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN SHOWN ABOVE AND ELSEWHERE IN
THIS PROSPECTUS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE DEEMED A
REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF RETURN. ACTUAL RATES
OF RETURN MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER
OF FACTORS INCLUDING THE INVESTMENT ALLOCATIONS MADE BY AN OWNER,
PREVAILING INTEREST RATES, AND RATES OF INFLATION. THE DEATH BENEFIT AND
CASH VALUE FOR A CONTRACT WOULD BE DIFFERENT FROM THOSE SHOWN IF THE ACTUAL
RATES OF RETURN AVERAGED 0%, 6%, AND 12% OVER A PERIOD OF YEARS BUT ALSO
FLUCTUATED ABOVE OR BELOW THOSE AVERAGES FOR INDIVIDUAL CONTRACT YEARS. NO
REPRESENTATIONS CAN BE MADE BY PRUCO LIFE OF NEW JERSEY OR THE SERIES FUND
THAT THESE HYPOTHETICAL RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR
SUSTAINED OVER ANY PERIOD OF TIME.
C2
<PAGE>
- --------------------------------------------------------------------------------
VARIABLE
LIFE INSURANCE
CONTRACTS
[Logo] Prudential
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
213 Washington Street, Newark, NJ 07102-2992
Telephone 800 437-4016, Extension 46
A Subsidiary of
The Prudential Insurance Company of America
<PAGE>
PART II
OTHER INFORMATION
<PAGE>
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned Registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
REPRESENTATION WITH RESPECT TO CHARGES
Pruco Life Insurance Company of New Jersey represents that the fees and charges
deducted under the variable life insurance contracts registered by this
registration statement, in the aggregate, are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the risks assumed
by Pruco Life Insurance Company of New Jersey.
UNDERTAKING WITH RESPECT TO INDEMNIFICATION
Prudential Directors' and Officers' Liability and Corporation Reimbursement
Insurance program, purchased by Prudential from Aetna Casualty & Surety Company,
CNA Insurance Companies, Lloyds of London, Great American Insurance Company,
Reliance Insurance Company, Corporate Officers & Directors Assurance Ltd.,
A.C.E. Insurance Company, Ltd., XL Insurance Company, Ltd., and Zurich-American
Insurance Company, provides reimbursement for "Loss" (as defined in the
policies) which the Company pays as indemnification to its directors or officers
resulting from any claim for any actual or alleged act, error, misstatement,
misleading statement, omission, or breach of duty by persons in the discharge of
their duties in their capacities as directors or officers of Prudential, any of
its subsidiaries, or certain investment companies affiliated with Prudential.
Coverage is also provided to the individual directors or officers for such Loss,
for which they shall not be indemnified. Loss essentially is the legal liability
on claims against a director or officer, including adjudicated damages,
settlements and reasonable and necessary legal fees and expenses incurred in
defense of adjudicatory proceedings and appeals therefrom. Loss does not include
punitive or exemplary damages or the multiplied portion of any multiplied damage
award, criminal or civil fines or penalties imposed by law, taxes or wages, or
matters which are uninsurable under the law pursuant to which the policies are
construed.
There are a number of exclusions from coverage. Among the matters excluded are
Losses arising as the result of (1) claims brought about or contributed to by
the criminal, dishonest or fraudulent acts or omissions or the willful violation
of any law by a director or officer, (2) claims based on or attributable to
directors or officers gaining personal profit or advantage to which they were
not legally entitled, and (3) claims arising from actual or alleged performance
of, or failure to perform, services as, or in any capacity similar to, an
investment adviser, investment banker, underwriter, broker or dealer, as those
terms are defined in the Securities Act of 1933, the Securities Exchange Act of
1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940,
any rules or regulations thereunder, or any similar federal, state or local
statute, rule or regulation.
The limit of coverage under the program for both individual and corporate
reimbursement coverage is $150,000,000. The retention for corporate
reimbursement coverage is $10,000,000 per loss.
The relevant provisions of New Jersey law permitting or requiring
indemnification, New Jersey being the state of organization of Prudential and
Pruco Life of New Jersey, can be found in Section 14A:3-5 of the New Jersey
Statutes Annotated. The text of Prudential's by-law 26, which relates to
indemnification of officers and directors, is incorporated by reference to
Exhibit 1.A.(6)(b) of Post-Effective Amendment No. 1 to Form S-6, Registration
No. 33-61079, filed April 25, 1996, on behalf of The Prudential Variable
Appreciable Account. The text of Pruco Life of New Jersey's by-laws, Article V,
which relates to indemnification of officers and directors, is incorporated by
reference to Exhibit (8)(ii) to this Registration Statement.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions or otherwise, the Registrant has
been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
II-1
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
The Cross-reference to items required by Form N-8B-2.
The prospectus consisting of 59 pages.
The undertaking to file reports.
The representation with respect to charges.
The undertaking with respect to indemnification.
The signatures.
Written consents of the following persons:
1. Deloitte & Touche LLP, independent auditors.
2. Price Waterhouse LLP, independent accountants.
3. Clifford E. Kirsch, Esq.
4. Nancy D. Davis, FSA, MAAA
The following exhibits:
1. The following exhibits correspond to those required by paragraph A of
the instructions as to exhibits in Form N-8B-2:
A. (1) Resolution of Board of Directors of Pruco Life Insurance
Company of New Jersey establishing the Pruco Life of New
Jersey Variable Insurance Account. (Note 1)
(2) Not Applicable.
(3) Distributing Contracts:
(a) Distribution Agreement between Pruco Securities
Corporation and Pruco Life Insurance Company of New
Jersey. (Note 1)
(b) Proposed form of Agreement between Pruco Securities
Corporation and independent brokers with respect to the
Sale of the Contracts. (Note 1)
(c) Schedules of Sales Commissions. (Note 1)
(4) Not Applicable.
(5) (a) Variable Life Insurance Contract. (Note 1)
(b) Illustrative Tabular Cash Values. (Note 1)
(c) Copy of New York PLY-5 Endorsement to the Variable Life
Contract. (Note 1)
(d) Copy of New York and New Jersey PLY-6 Endorsement to
the Variable Life Contract. (Note 1)
(e) Copy of New York PLY 39 Endorsement to the Variable
Life Contract. (Note 1)
(f) Copy of New Jersey PLIY 39 Endorsement to the Variable
Life Contract. (Note 1)
(g) Copy of New York jacket to the Variable Life Insurance
Contract. (Note 1)
(h) Copy of page 5 to the Variable Life Insurance
Contract--New York issues. (Note 1)
(i) Copy of page 7 to the Variable Life Insurance
Contract--New York issues. (Note 1)
(j) Copy of New York and New Jersey PLY 50 Endorsement to
the Variable Life Insurance Contract. (Note 1)
(k) Copy of New York PLY 36 Endorsement to the Variable
Life Insurance Contract. (Note 1)
(l) Copy of New Jersey PLIY 38 Endorsement to the Variable
Life Insurance Contract. (Note 1)
(m) Copy of New Jersey PLIY 62-85 Endorsement to the
Variable Life Insurance Contract. (Note 1)
(n) Copy of New York PLY 61-85 Endorsement to the Variable
Life Insurance Contract. (Note 1)
(6) (a) Articles of Incorporation of Pruco Life Insurance
Company of New Jersey, as amended March 11, 1983. (Note 2)
II-2
<PAGE>
(b) By-laws of Pruco Life Insurance Company of New Jersey,
as amended February 1, 1991. (Note 2)
(7) Not Applicable.
(8) Not Applicable.
(9) Not Applicable.
(10) (a) Application Form for Variable Life Insurance Contract.
(Note 1)
(b) Supplement to the Application for Variable Life
Insurance Contract. (Note 1)
(c) Application Form for Variable Life Insurance
Contract--New York issues. (Note 1)
(d) Application Form for Variable Life Insurance
Contract--New Jersey issues. (Note 1)
(11) Form of Notice of Withdrawal Right. (Note 1)
(12) Memorandum describing Pruco Life of New Jersey's issuance,
transfer, and redemption procedures for the Contracts pursuant to
Rule 6e-2(b) (12)(ii) and method of computing cash adjustment
upon exercise of right to exchange for fixed-benefit insurance
pursuant to Rule 6e- 2(b)(13)(v)(B). (Note 1)
(13) Available Contract Riders.
(a) Rider for Insured's Waiver of Premium Benefit. (Note 1)
(b) Rider for Insured's Accidental Death Benefit. (Note 1)
(c) Rider for Term Insurance Benefit on Life of
Insured-Decreasing Amount. (Note 1)
(d) Rider for Option to Purchase Additional Insurance on Life of
Insured. (Note 1)
(e) Rider for Interim Term Insurance Benefit. (Note 1)
(f) Rider for Term Insurance Benefit on Life of Insured
Spouse-Decreasing Amount. (Note 1)
(g) Rider for Level Term Insurance Benefit on Dependent
Children. (Note 1)
(h) Rider Exempting Child from Reinstatement--New York Issues.
(Note 1)
(i) Rider Exempting Child from Reinstatement--New Jersey Issues.
(Note 1)
(j) Rider for Level Term Insurance Benefit on Dependent
Children--New York Issues. (Note 1)
(k) Rider for Level Term Insurance Benefit on Dependent
Children--New Jersey Issues. (Note 1)
(l) Rider for Reduced Paid-Up Insurance--New York Issues. (Note
1)
(m) Rider for Reduced Paid-Up Insurance--New Jersey Issues.
(Note 1)
(n) Rider for Insured's Waiver of Premium Benefit--New York
Issues. (Note 1)
(o) Rider for Insured's Waiver of Premium Benefit--New Jersey
Issues. (Note 1)
(p) Rider for Insured's Accidental Death Benefit--New York
Issues. (Note 1)
(q) Rider for Insured's Accidental Death Benefit--New Jersey
Issues. (Note 1)
(r) Rider Defining Incontestability Period--New York Issues.
(Note 1)
(s) Rider Defining Incontestability Period--New Jersey Issues.
(Note 1)
(t) Rider Defining Incontestability Period--New York Issues.
(Note 1)
(u) Rider Defining Incontestability Period--New Jersey Issues.
(Note 1)
(v) Rider for Modification of Insured's Waiver of Premium
Benefit Provision--New York Issues. (Note 1)
(w) Rider for Modification of Insured's Waiver of Premium
Benefit Provision--New Jersey Issues. (Note 1)
(x) Rider for Termination of Benefit--New York Issues. (Note 1)
(y) Rider for Termination of Benefit--New Jersey Issues. (Note
1)
(z) Rider for Automatic Premium Loan--New York Issues. (Note 1)
(aa) Rider for Automatic Premium Loan--New Jersey Issues. (Note
1)
(bb) Rider for Aviation Risk Exclusion--New York Issues. (Note 1)
(cc) Rider for Aviation Risk Exclusion--New Jersey Issues. (Note
1)
(dd) Rider for Military Aviation Risk Exclusion--New York Issues.
(Note 1)
(ee) Rider for Military Aviation Risk Exclusion--New Jersey
Issues. (Note 1)
(ff) Rider for War Risk Exclusion--New York Issues. (Note 1)
(gg) Rider for War Risk Exclusion--New Jersey Issues. (Note 1)
(hh) Rider for Defining Incontestability Period--New York Issues.
(Note 1)
(ii) Rider for Defining Incontestability Period--New Jersey
Issues. (Note 1)
(jj) Rider for Suicide Provision--New York Issues. (Note 1)
II-3
<PAGE>
(kk) Rider for Ownership and Control--New York Issues. (Note 1)
(ll) Rider for Ownership and Control--New Jersey Issues. (Note 1)
(mm) Rider for Applicant's Waiver of Premium Benefit--New York
Issues. (Note 1)
(nn) Rider for Applicant's Waiver of Premium Benefit--New Jersey
Issues. (Note 1)
(oo) Rider for Level Term Insurance Benefit on Life of
Insured--New York and New Jersey Issues. (Note 1)
(pp) Rider for Special Premium Remittance Plan--New York Issues.
(Note 1)
(qq) Rider for Variable Loan Interest Rate--New York Issues.
(Note 1)
(rr) Rider for Special Premium Remittance Plan--New Jersey
Issues. (Note 1)
(ss) Rider for Variable Loan Interest Rate--New Jersey Issues.
(Note 1)
(tt) Rider for Decreasing Term Insurance Benefit--New York and
New Jersey Issues. (Note 1)
(uu) Rider for Variable Reduced Paid-Up Insurance--New York
Issues. (Note 1)
(vv) Rider for Variable Reduced Paid-Up Insurance--New Jersey
Issues. (Note 1)
(ww) Rider for Decreasing Term Insurance on Life of Insured
Spouse--New York Issues. (Note 1)
(xx) Rider for Decreasing Term Insurance Benefit on life of
Insured Spouse--New Jersey Issues. (Note 1)
(yy) Rider for Variable Loan Interest Rate--New Jersey Issues.
(Note 1)
(zz) Rider for Variable Loan Interest Rate--New York Issues.
(Note 1)
(aaa) Rider providing Options on Lapse--New Jersey Issues. (Note
1)
(bbb) Rider providing Options on Lapse--New York Issues. (Note 1)
(ccc) Living Needs Benefit Rider for use in New Jersey. (Note 1)
(ddd) Living Needs Benefit Rider for use in New York. (Note 1)
2. See Exhibit 1.A.(5).
3. Opinion and Consent of Clifford E. Kirsch, Esq. as to the legality of
the securities being registered. (Note 1)
4. None.
5. Not Applicable.
6. Opinion and Consent of Nancy D. Davis, FSA, MAAA, as to actuarial
matters pertaining to the securities being registered. (Note 1)
7. Powers of Attorney.
(a) William M. Bethke, Ira J. Kleinman, Mendel A. Melzer, Esther H.
Milnes, I. Edward Price, William F. Yelverton (Note 3)
(b) Linda S. Dougherty (Note 4)
27. Financial Data Schedule. (Note 1)
(Note 1) Filed herewith.
(Note 2) Incorporated by reference to Post-Effective Amendment No. 17 to Form
S-6, Registration No. 2-89780, filed March 1, 1991, on behalf of the
Pruco Life of New Jersey Variable Appreciable Account.
(Note 3) Incorporated by reference to Form N-4, Registration No. 333-18117,
filed December 18, 1996 on behalf of the Pruco Life of New Jersey
Flexible Premium Variable Annuity Account.
(Note 4) Incorporated by reference to Post-Effective Amendment No. 9 to Form
S-1, Registration No. 33- 20018, filed April 9, 1997 on behalf of the
Pruco Life of New Jersey Variable Contract Real Property Account.
II-4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant, the
Pruco Life of New Jersey Variable Insurance Account, certifies that this
Amendment is filed solely for one or more of the purposes specified in Rule
485(b)(1) under the Securities Act of 1933 and that no material event requiring
disclosure in the prospectus, other than one listed in Rule 485(b)(1), has
occurred since the effective date of the most recent Post-Effective Amendment to
the Registration Statement which included a prospectus and has duly caused this
Registration Statement to be signed on its behalf by the undersigned thereunto
duly authorized and its seal hereunto affixed and attested, all in the city of
Newark and the State of New Jersey, on this 25th day of April, 1997.
(Seal) PRUCO LIFE OF NEW JERSEY VARIABLE INSURANCE ACCOUNT
(Registrant)
By: PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
(Depositor)
Attest: /s/ Thomas C. Castano By: /s/ Esther H. Milnes
--------------------- ---------------------
Thomas C. Castano Esther H. Milnes
Assistant Secretary President
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment No. 24 to the Registration Statement has been signed below by the
following persons in the capacities indicated on this 25th day of April, 1997.
SIGNATURE AND TITLE
/s/ *
- -----------------------------------
Esther H. Milnes
President and Director
/s/ *
- -----------------------------------
Linda S. Dougherty
Chief Accounting Officer and
Comptroller
/s/* *By: /s/ Thomas C. Castano
- ----------------------------------- ------------------------------
William M. Bethke Thomas C. Castano
Director (Attorney-in-Fact)
/s/ *
- -----------------------------------
Ira J. Kleinman
Director
/s/ *
- -----------------------------------
Mendel A. Melzer
Director
/s/ *
- -----------------------------------
I. Edward Price
Director
/s/ *
- -----------------------------------
William F. Yelverton
Director
II-5
<PAGE>
EXHIBIT INDEX
Consent of Deloitte & Touche LLP, independent Page II-9
auditors.
Consent of Price Waterhouse LLP, independent Page II-10
accountants.
1.A.(1) Resolution of Board of Directors of Pruco Life Insurance Page II-11
Company of New Jersey establishing the Pruco Life of New
Jersey Variable Insurance Account.
1.A.(3)(a) Distribution Agreement between Pruco Securities Page II-13
Corporation and Pruco Life Insurance Company of
New Jersey.
(b) Proposed form of Agreement between Pruco Securities Page II-20
Corporation and independent brokers with respect to the
Sale of the Contracts.
(c) Schedules of Sales Commissions. Page II-29
1.A.(5)(a) Variable Life Insurance Contract Page II-32
(b) Illustrative Tabular Cash Values. Page II-60
(c) Copy of New York PLY-5 Endorsement to the Variable Page II-70
Life Contract.
(d) Copy of New York and New Jersey PLY-6 Endorsement to Page II-71
the Variable Life Contract.
(e) Copy of New York PLY 39 Endorsement to the Variable Life Page II-72
Contract.
(f) Copy of New Jersey PLIY 39 Endorsement to the Variable Page II-73
Life Contract.
(g) Copy of New York jacket to the Variable Life Insurance Page II-74
Contract.
(h) Copy of page 5 to the Variable Life Insurance Page II-75
Contract--New York issues.
(i) Copy of page 7 to the Variable Life Insurance Page II-76
Contract--New York issues.
(j) Copy of New York and New Jersey PLY 50 Endorsement to Page II-77
the Variable Life Insurance Contract.
(k) Copy of New York PLY 36 Endorsement to the Variable Life Page II-78
Insurance Contract.
(l) Copy of New Jersey PLIY 38 Endorsement to the Variable Page II-79
Life Insurance Contract.
(m) Copy of New Jersey PLIY 62-85 Endorsement to the Variable Page II-80
Life Insurance Contract.
(n) Copy of New York PLY 61-85 Endorsement to the Variable Page II-82
Life Insurance Contract.
1.A.(10)(a) Application Form for Variable Life Insurance Contract. Page II-84
(b) Supplement to the Application for Variable Life Page II-87
Insurance Contract.
(c) Application Form for Variable Life Insurance Page II-88
Contract--New York issues.
(d) Application Form for Variable Life Insurance Page II-90
Contract--New Jersey issues.
(11) Form of Notice of Withdrawal Right. Page II-96
II-6
<PAGE>
(12) Memorandum describing Pruco Life of New Jersey's issuance, Page II-98
transfer, and redemption procedures for the Contracts
pursuant to Rule 6e-2(b) (12)(ii) and method of computing
cash adjustment upon exercise of right to exchange for
fixed-benefit insurance pursuant to Rule 6e-2(b)(13)(v)(B).
(13) Available Contract Riders.
(a) Rider for Insured's Waiver of Premium Benefit. Page II-115
(b) Rider for Insured's Accidental Death Benefit. Page II-117
(c) Rider for Term Insurance Benefit on Life of Page II-118
Insured-Decreasing Amount.
(d) Rider for Option to Purchase Additional Insurance on Page II-121
Life of Insured.
(e) Rider for Interim Term Insurance Benefit. Page II-124
(f) Rider for Term Insurance Benefit on Life of Insured Page II-125
Spouse-Decreasing Amount.
(g) Rider for Level Term Insurance Benefit on Dependent Page II-129
Children.
(h) Rider Exempting Child from Reinstatement--New York Page II-132
Issues.
(i) Rider Exempting Child from Reinstatement--New Jersey Page II-133
Issues.
(j) Rider for Level Term Insurance Benefit on Dependent Page II-134
Children--New York Issues.
(k) Rider for Level Term Insurance Benefit on Dependent Page II-138
Children--New Jersey Issues.
(l) Rider for Reduced Paid-Up Insurance--New York Issues. Page II-141
(m) Rider for Reduced Paid-Up Insurance--New Jersey Issues. Page II-142
(n) Rider for Insured's Waiver of Premium Benefit--New York Page II-143
Issues.
(o) Rider for Insured's Waiver of Premium Benefit--New Jersey Page II-145
Issues.
(p) Rider for Insured's Accidental Death Benefit--New York Page II-147
Issues.
(q) Rider for Insured's Accidental Death Benefit--New Jersey Page II-148
Issues.
(r) Rider Defining Incontestability Period--New York Issues. Page II-149
(s) Rider Defining Incontestability Period--New Jersey Issues. Page II-150
(t) Rider Defining Incontestability Period--New York Issues. Page II-151
(u) Rider Defining Incontestability Period--New Jersey Issues. Page II-152
(v) Rider for Modification of Insured's Waiver of Premium Page II-153
Benefit Provision--New York Issues.
(w) Rider for Modification of Insured's Waiver of Premium Page II-154
Benefit Provision--New Jersey Issues.
(x) Rider for Termination of Benefit--New York Issues. Page II-155
(y) Rider for Termination of Benefit--New Jersey Issues. Page II-156
(z) Rider for Automatic Premium Loan--New York Issues. Page II-157
(aa) Rider for Automatic Premium Loan--New Jersey Issues. Page II-158
(bb) Rider for Aviation Risk Exclusion--New York Issues. Page II-159
(cc) Rider for Aviation Risk Exclusion--New Jersey Issues. Page II-160
(dd) Rider for Military Aviation Risk Exclusion--New York Issues. Page II-161
(ee) Rider for Military Aviation Risk Exclusion--New Jersey Page II-162
Issues.
(ff) Rider for War Risk Exclusion--New York Issues. Page II-163
(gg) Rider for War Risk Exclusion--New Jersey Issues. Page II-164
(hh) Rider for Defining Incontestability Period--New York Issues. Page II-165
(ii) Rider for Defining Incontestability Period--New Jersey Page II-166
Issues.
II-7
<PAGE>
(jj) Rider for Suicide Provision--New York Issues. Page II-167
(kk) Rider for Ownership and Control--New York Issues. Page II-168
(ll) Rider for Ownership and Control--New Jersey Issues. Page II-169
(mm) Rider for Applicant's Waiver of Premium Benefit--New York Page II-170
Issues.
(nn) Rider for Applicant's Waiver of Premium Benefit--New Page II-172
Jersey Issues.
(oo) Rider for Level Term Insurance Benefit on Life of Page II-174
Insured--New York and New Jersey Issues.
(pp) Rider for Special Premium Remittance Plan--New York Page II-176
Issues.
(qq) Rider for Variable Loan Interest Rate--New York Issues. Page II-177
(rr) Rider for Special Premium Remittance Plan--New Jersey Page II-179
Issues.
(ss) Rider for Variable Loan Interest Rate--New Jersey Issues. Page II-180
(tt) Rider for Decreasing Term Insurance Benefit--New York and Page II-182
New Jersey Issues.
(uu) Rider for Variable Reduced Paid-Up Insurance--New York Page II-186
Issues.
(vv) Rider for Variable Reduced Paid-Up Insurance--New Jersey Page II-187
Issues.
(ww) Rider for Decreasing Term Insurance on Life of Insured Page II-188
Spouse--New York Issues.
(xx) Rider for Decreasing Term Insurance Benefit on life of
Insured Spouse--New Jersey Issues. Page II-194
(yy) Rider for Variable Loan Interest Rate--New Jersey Issues. Page II-200
(zz) Rider for Variable Loan Interest Rate--New York Issues. Page II-202
(aaa) Rider providing Options on Lapse--New Jersey Issues. Page II-204
(bbb) Rider providing Options on Lapse--New York Issues. Page II-206
(ccc) Living Needs Benefit Rider for use in New Jersey. Page II-208
(ddd) Living Needs Benefit Rider for use in New York. Page II-211
3. Opinion and Consent of Clifford E. Kirsch, Esq., as to the Page II-213
legality of the securities being registered.
6. Opinion and Consent of Nancy D. Davis, FSA, MAAA, as to Page II-214
actuarial matters pertaining to the securities being
registered.
27. Financial Data Schedule. Page II-215
II-8
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 24 to Registration
Statement No. 2-81243 on Form S-6 of Pruco Life of New Jersey Variable Insurance
Account of Pruco Life Insurance Company of New Jersey of our report dated
February 15, 1996, relating to the financial statements of Pruco Life of New
Jersey Variable Insurance Account, and of our report dated December 19, 1996,
relating to the financial statements of Pruco Life Insurance Company of New
Jersey appearing in the Prospectus, which is part of such Registration
Statement, and to the reference to us under the heading "Experts" in such
Prospectus.
/S/ Deloitte & Touche LLP
Parsippany, New Jersey
April 25, 1997
II-9
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Prospectus constituting part of this
Post-Effective Amendment No. 24 to the registration statement on Form S-6 (the
"Registration Statement") of our report dated March 31, 1997, relating to the
financial statements of Pruco Life of New Jersey Variable Insurance Account,
which appears in such Prospectus.
We also consent to the use in the Prospectus constituting part of this
Registration Statement of our report dated April 11, 1997, relating to the
financial statements of Pruco Life Insurance Company of New Jersey, which
appears in such Prospectus.
We also consent to the reference to us under the heading "Experts" in the
Prospectus.
/s/ PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
April 24, 1997
II-10
EXHIBIT 1.A.(1)
I, Joyce R. Leibowitz the undersigned, Assistant Secretary of Pruco Life
Insurance Company of New Jersey, do hereby certify that the following is a true
copy of a resolution duly adopted by Written Unanimous Consent of the Executive
Committee of the Board of Directors of said Company on the 29th day of December,
1982 and that the said resolution is in full force and effect at this date:
RESOLVED, that, subject to the approval of the Commissioner of
Insurance of the State of New Jersey, the Company hereby establishes,
pursuant to Section 17B:28-7 of the Revised Statutes of New Jersey, a
variable contract account to be designated initially as the "Pruco Life
Variable Insurance Account" (hereinafter in these resolutions referred to
as the "Account"); and
FURTHER RESOLVED, that the Company shall receive and hold in the
Account amounts arising from (i) purchase payments made pursuant to certain
Variable Life Insurance Contracts of the Company ("Variable Contracts"),
sold as part of its Variable Life Insurance Program and (ii) such assets of
the Company as the proper officers of the Company may deem prudent and
appropriate to have invested in the same manner as the assets applicable to
its reserve liability under Variable Contracts and lodged in the Account,
and such amounts and the dividends, interest and gains produced thereby
shall be invested and reinvested, subject to the rights of the holders of
such Variable Contracts, in shares of the Pruco Life Series Fund, Inc., an
open-end diversified management investment company of the series type, at
the net asset value of such shares at the time of acquisition; and
FURTHER RESOLVED, that the Account shall be registered as a unit
investment trust under the Investment Company Act of 1940, and that the
proper officers of the Company be and they hereby are authorized to sign
and file, or cause to be filed, with the Securities and Exchange Commission
a registration statement, on behalf of the Account, as registrant, under
the Investment Company Act of 1940, ("Investment Company Act
Registration"), and to sign and file, or cause to be filed, an application
for an order under Section 6(c) of the Investment Company Act of 1940 for
such exemptions from the provisions of that Act as may be necessary or
desirable ("Investment Company Act Application"); and
FURTHER RESOLVED, that the Company shall as part of its Variable Life
Insurance Program sell contracts on a variable basis to be known as
Variable Life Insurance Contracts, and that the proper officers of the
Company be and they hereby are authorized to sign and file, or cause to be
filed, with the Securities and Exchange Commission, on behalf of the
Company, as issuer, a registration statement, including the financial
statements and schedules, exhibits and form of prospectus required as a
part thereof, for the registration of the offering and sale of such
Variable Life Insurance Contracts, to the extent they represent
participating interests in the Account, under the Securities Act of 1933
("Securities Act Registration"); and
II-11
<PAGE>
FURTHER RESOLVED, that the proper officers of the Company be and they
hereby are authorized and directed to sign and file, or cause to be filed,
such amendment or amendments of such Investment Company Act Registration,
Investment Company Act Application and Securities Act Registration as they
may find necessary or advisable from time to time; and
FURTHER RESOLVED, that the signature of any director or officer
required by law to affix his signature to such Investment Company Act
Registration, Investment Company Act Application and Securities Act
Registration, may be affixed by said director or officer personally, or by
an attorney-in-fact duly constituted in writing by said director or officer
to sign his name thereto; and
FURTHER RESOLVED, that the Secretary of the Company be and she hereby
is appointed agent of the Company to receive any and all notices and
communications from the Securities and Exchange Commission relating to such
Investment Company Act Registration, Investment Company Act Application and
Securities Act Registration and any and all amendments thereto; and
FURTHER RESOLVED, that the proper officers of the Company be and they
hereby are authorized to take whatever steps may be necessary or desirable
to comply with such of the laws and regulations of the several states as
may be applicable to the Company's Variable Life Insurance Program; and
FURTHER RESOLVED, that the proper officers of the Company be and they
hereby are authorized, in the name and on behalf of the Company, to execute
and deliver such corporate documents and certificates and to take such
further action as may be necessary or desirable, including, but not limited
to, the payment of applicable fees, in order to effectuate the purposes of
the foregoing resolutions or any of them.
In Witness Whereof, I have hereunto affixed my official signature and the
seal of said Company, this 5th day of January, 1983.
/s/ SPECIMEN
----------------------
Assistant Secretary
SEAL
II-12
EXHIBIT 1.A.(3)(a)
DISTRIBUTION AGREEMENT
AGREEMENT made this 16th day of February, 1983, by and between Pruco Life
Insurance Company of New Jersey, a New Jersey corporation ("Company"), on its
own behalf and on behalf of the Pruco Life Variable Insurance Account
("Account") and Pruco Securities Corporation, a New Jersey corporation
("Distributor").
WITNESSETH:
WHEREAS, the Company has established and maintains the Account, a separate
investment account, pursuant to the laws of New Jersey for the purpose of
selling variable life insurance contracts ("Contracts"), to commence after the
effectiveness of the Registration Statement filed with the Securities and
Exchange Commission on Form S-6 pursuant to the Securities Act of 1933, as
amended (the "1933 Act"); and
WHEREAS, The Account is registered as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"); and
WHEREAS, Distributor is registered as a broker-dealer under the Securities
Exchange Act of 1934 (the "Securities Exchange Act") and is a member of the
National Association of Securities Dealers, Inc. ("NASD"); and
WHEREAS, the Company and the Distributor wish to enter into an agreement to
have the Distributor act as the Company's principal underwriter for the sale of
the Contracts through the Account;
NOW, THEREFORE, the parties agree as follows:
II-13
<PAGE>
1. Appointment of the Distributor
The Company agrees that during the term of this agreement it will take all
action which is required to cause the Contracts to comply as an insurance
product and a registered security with all applicable federal and state laws and
regulations. The Company appoints the Distributor and the Distributor agrees to
act as the principal underwriter for the sale of Contracts to the public, during
the term of this Agreement, in each state and other jurisdictions in which such
Contracts may lawfully be sold. Distributor shall offer the Contracts for sale
and distribution at premium rates set by the Company. Applications for the
Contracts shall be solicited only by representatives duly and appropriately
licensed or otherwise qualified for the sale of such Contracts in each state or
other jurisdiction. Company shall undertake to appoint Distributor's qualified
representatives as life insurance agents of Company. Completed applications for
Contracts shall be transmitted directly to the Company for acceptance or
rejection in accordance with underwriting rules established by the Company.
Initial premium payments under the Contracts shall be made by check payable to
the Company and shall be transmitted promptly by Distributor or its
representatives to the Company.
2. Sales Agreements
Distributor is hereby authorized to enter into separate written agreements,
on such terms and conditions as Distributor may determine not inconsistent with
this Agreement, with one or more organizations which agree to participate in the
distribution of Contracts. Such organization
II-14
<PAGE>
(hereafter "Broker") shall be both registered as a broker/dealer under the
Securities Exchange Act and a member of NASD. Broker and its agents or
representatives soliciting applications for Contracts shall be duly and
appropriately licensed, registered or otherwise qualified for the sale of such
Contracts (and the riders and other policies offered in connection therewith)
under the insurance laws and any applicable blue-sky laws of each state or other
jurisdiction in which the Company is licensed to sell the Contracts.
Distributor shall have the responsibility for ensuring that Broker
supervises its representatives. Broker shall assume any legal responsibilities
of Company for the acts, commissions or defalcations of such representatives
insofar as they relate to the sale of the Contracts. Applications for Contracts
solicited by such Broker through its agents or representatives shall be
transmitted directly to the Company, and if received by Distributor, shall be
forwarded to Company. All premium payments under the Contracts shall be made by
check to Company and remitted promptly to Company.
3. Life Insurance Agents
Company shall be responsible for insuring that Brokers are duly qualified,
under the insurance laws of the applicable jurisdictions, to sell the Contracts.
II-15
<PAGE>
4. Suitability
Company wishes to ensure that Contracts sold by Distributor will be issued
to purchasers for whom the Contract will be suitable. Distributor shall take
reasonable steps to ensure that the various representatives appointed by it
shall not make recommendations to an applicant to purchase a Contract in the
absence of reasonable grounds to believe that the purchase of the Contract is
suitable for such applicant. While not limited to the following, a determination
of suitability shall be based on information furnished to a representative after
reasonable inquiry of such applicant concerning the applicant's insurance and
investment objectives, financial situation and needs, and the likelihood that
the applicant will continue to make the premium payments contemplated by the
Contract.
5. Promotion Materials
Company shall have the responsibility for furnishing to Distributor and its
representatives sales promotion materials and individual sales proposals related
to the sale of the Contracts. Distributor shall not use any such materials that
have not been approved by Company.
6. Compensation
Company shall arrange for the payment of commissions directly to those
registered representatives of Distributor who are entitled thereto in connection
with the sale of the Contracts on behalf of Distributor, in the amounts and on
such terms and conditions as Company and Distributor
II-16
<PAGE>
shall determine; provided that such terms, conditions and commissions shall be
as are set forth in or as are not inconsistent with a Prospectus included as
part of the Registration Statement for the Contract and effective under the 1933
Act.
Company shall arrange for the payment of commissions directly to those
Brokers who sell Contracts under agreements entered into pursuant to paragraph
2. hereof, in amounts as may be agreed to by the Company and specified in such
written agreements.
Company shall reimburse Distributor for the costs and expenses incurred by
Distributor in furnishing or obtaining the services, materials and supplies
required by the terms of this Agreement in the initial sales efforts and the
continuing obligations hereunder.
7. Records
Distributor shall have the responsibility for maintaining the records of
representatives licensed, registered and otherwise qualified to sell the
Contracts. Distributor shall maintain such other records as are required of it
by applicable laws and regulations. The books, accounts and records of Company,
the Account and Distributor shall be maintained so as to clearly and accurately
disclose the nature and details of the transactions.
8. Investigation and Proceeding
(a) Distributor and Company agree to cooperate fully in any insurance
regulatory investigation or proceeding or judicial proceeding arising in
connection with the Contracts distributed under this Agreement.
II-17
<PAGE>
Distributor and Company further agree to cooperate fully in any securities
regulatory investigation or proceeding or judicial proceeding with respect to
Company, Distributor, their affiliates and their agents or representatives to
the extent that such investigation or proceeding is in connection with Contracts
distributed under this Agreement.
(b) In the case of a substantive customer complaint, Distributor and
Company will cooperate in investigating such complaint and any response to such
complaint will be sent to the other party to this Agreement for approval not
less than five business days prior to its being sent to the customer or
regulatory authority, except that if a more prompt response is required, the
proposed response shall be communicated by telephone or telegraph.
9. Termination
This Agreement shall terminate automatically upon its assignment without
the prior written consent of both parties. This Agreement may be terminated at
any time by either party on 60 days' written notice to the other party, without
the payment of any penalty. Upon termination of this Agreement all
authorizations, rights and obligations shall cease except the obligation to
settle accounts hereunder, including commissions on premiums subsequently
received for Contracts in effect at the time of termination, and the agreements
contained in paragraph 8. hereof.
II-18
<PAGE>
10. Regulation
This Agreement shall be subject to the provisions of the 1940 Act and the
Securities Exchange Act and the rules, regulations, and rulings thereunder and
of the applicable rules and regulations of the NASD, from time to time in
effect, and the terms hereof shall be interpreted and construed in accordance
therewith.
11. Severability
If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement shall not
be affected thereby.
12. Applicable Law
This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of New Jersey.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
Attest: PRUCO LIFE INSURANCE COMPANY
OF NEW JERSEY
/s/ By /s/
- ------------------ ----------------------------
Secretary
Attest: PRUCO SECURITIES CORPORATION
/s/ By /s/
- ------------------ -----------------------------
Secetary President
II-19
Exhibit 1.A.(3)(b)
SELECTED BROKER AGREEMENT
Agreement dated _________ , 1983, by and between Pruco Securities
Corporation (Distributor), a New Jersey corporation1 and _________________
(Broker), a ____________ corporation.
WITNESSETH:
In consideration of the mutual promises contained herein, the parties
hereto agree as follows:
A. Definitions
(1) Contracts - The variable life insurance contracts which Pruco Life
Insurance Company of New Jersey (Company), a New Jersey corporation,
proposes to issue and for which Distributor has been appointed the
principal underwriter pursuant to a Distribution Agreement, a copy of
which has been furnished to Broker.
(2) Pruco Life Variable Insurance Account, or the Account - The separate
account established and maintained by Company pursuant to the laws of
New Jersey to fund the benefits under the Contracts.
(3) Pruco Life Series Fund, Inc., or the Fund - An open-end management
investment company registered under the 1940 Act, shares of which are
sold to the Account in connection with the sale of the Contracts.
(4) Registration Statement - The registration statements and amendments
thereto relating to the Contracts, the Account, and the Fund,
including financial statements and all exhibits.
II-20
<PAGE>
-2-
(5) Prospectus - The prospectuses included within the registration
statements referred to herein.
(6) 1933 Act - The Securities Act of 1933, as amended.
(7) 1934 Act - The Securities Exchange Act of 1934, as amended.
(8) SEC - The Securities and Exchange Commmission.
B. Agreements of Distributor
(1) Pursuant to the authority delegated to it by Company, Distributor
hereby authorizes Broker during the term of this Agreement to solicit
applications for Contracts from eligible persons provided that there
is an effective Registration Statement relating to such Contracts and
provided further that Broker has been notified by Distributor that the
Contracts are qualified for sale under all applicable securities and
insurance laws of the state or jurisdiction in which the application
will be solicited. In connection with the solicitation of applications
for Contracts, Broker is hereby authorized to offer riders that are
available with the Contracts in accordance with instructions furnished
by Distributor or Company.
(2) Distributor, during the term of this Agreement, will notify Broker of
the issuance by the SEC of any stop order with respect to the
Registration Statement or any amendments thereto or the initiation of
any proceedings for that purpose or for any other purpose relating to
the registration and/or offering of the Contracts and of any other
action or circumstance that may prevent the lawful sale of the
Contracts in any state or jurisdiction.
II-21
<PAGE>
-3-
(3) During the term of this Agreement, Distributor shall advise Broker of
any amendment to the Registration Statement or any amendment or
supplement to any Prospectus.
C. Agreements of Broker
(1) It is understood and agreed that Broker is a registered broker/dealer
under the 1934 Act and a member of the National Association of
Securities Dealers, Inc. and that the agents or representatives of
Broker who will be soliciting applications for the Contracts also will
be duly registered representatives of Broker.
(2) Commencing at such time as Distributor and Broker shall agree upon,
Broker agrees to use its best efforts to find purchasers for the
Contracts acceptable to Company. In meeting its obligation to use its
best efforts to solicit applications for Contracts, Broker shall,
during the term of this Agreement, engage in the following activities:
(a) Continuously utilize training, sales and promotional materials
which have been approved by Company;
(b) Establish and implement reasonable procedures for periodic
inspection and supervision of sales practices of its agents or
representatives and submit periodic reports to Distributor as may
be requested on the results of such inspections and the
compliance with such procedures.
(c) Broker shall take reasonable steps to ensure that the various
representatives appointed by it shall not make
II-22
<PAGE>
-4-
recommendations to an applicant to purchase a Contract in the
absence of reasonable grounds to believe that the purchase of the
Contract is suitable for such applicant. While not limited to the
following, a determination of suitability shall be based on
information furnished to a representative after reasonable
inquiry of such applicant concerning the applicant's insurance
and investment objectives, financial situation and needs, and the
likelihood that the applicant will continue to make the premium
payments contemplated by the Contract.
(3) All payments for Contracts collected by agents or representatives of
Broker shall be remitted promptly in full together with such
applications, forms and any other required documentation to an office
of the Company designated by Distributor. Checks or money orders in
payment of initial premiums shall be drawn to the order of "Pruco Life
Insurance Company of New Jersey." Broker acknowledges that Distributor
or Company shall have the unconditional right to reject in whole or in
part, any application for the Contract. In the event Company or
Distributor rejects an application, Company immediately will return
all payments directly to the purchaser and Broker will be notified of
such action. In the event that any purchaser of a Contract elects to
return such Contract pursuant to Rule 6e-2(b)(13)(viii) of the 1940
Act, any premium paid will be refunded to the purchaser and Broker
will be notified of such action.
II-23
<PAGE>
-5-
(4) Broker shall act as an independent contractor, and nothing herein
contained shall constitute Broker, its agents or representatives, or
any employees thereof as employees of Company or Distributor in
connection with the solicitation of applications for Contracts.
Broker, its agents or representatives, and its employees shall not
hold themselves out to be employees of Company or Distributor in this
connection or in any dealings with the public.
(5) Broker agrees that any material it develops, approves or uses for
sales, training, explanatory or other purposes in connection with the
solicitation of applications for Contracts hereunder (other than
generic advertising materials which do not make specific reference to
the Contracts) will not be used without the prior written consent of
Distributor and, where appropriate, the endorsement of Company to be
obtained by Distributor.
(6) Solicitation and other activities by Broker shall be undertaken only
in accordance with applicable laws and regulations. No agent or
representative of Broker shall solicit applications for the Contracts
until duly licensed and appointed by Company as a life insurance and
variable contract broker or agent of Company in the appropriate states
or other jurisdictions. Broker shall ensure that such agents or
representatives fulfill any training requirements necessary to be
licensed. Broker understands and acknowledges that neither it nor its
agents or representatives is authorized by Distributor or Company to
give any information or make any representation in connection with
this Agreement or the offering of the Contracts other than those
contained in the
II-24
<PAGE>
-6-
Prospectus or other solicitation material authorized in writing by
Distributor or Company.
(7) Broker shall not have authority on behalf of Distributor or Company
to: make, alter or discharge any Contract or other form; waive any
forfeiture, extend the time of paying any premium; receive any monies
or premiums due, or to become due, to Company, except as set forth in
Section C(3) of this Agreement. Broker shall not expend, nor contract
for the expenditure of the funds of Distributor, nor shall Broker
possess or exercise any authority on behalf of Distributor other than
that expressly conferred on Broker by this Agreement.
D. Compensation
(1) Pursuant to the Distribution Agreement between Distributor and
Company, Distributor shall cause Company to arrange for the payment of
commissions to Broker as compensation for the sale of each Contract
sold by an agent or representative of Broker. The amount of such
compensation shall be based on a schedule to be determined by
agreement of Company, Distributor and Broker. Company shall identify
to Broker with each such payment the name of the agent or
representative of Broker who solicited each Contract covered by the
payment.
(2) Neither Broker nor any of its agents or representatives shall have any
right to withhold or deduct any part of any premium it shall receive
for purposes of payment of commission or otherwise. Neither Broker nor
any of its agents or representatives shall have an interest in any
compensation paid by Company to Distributor,
II-25
<PAGE>
-7-
now or hereafter, in connection with the sale of any Contracts
hereunder.
E. Complaints and Investigations
(1) Broker and Distributer jointly agree to cooperate fully in any
insurance regulatory investigation or proceeding or judicial
proceeding arising in connection with the Contracts marketed under
this Agreement. Broker and Distributor further agree to cooperate
fully in any securities regulatory investigation or proceeding or
judicial proceeding with respect to Broker, Distributor, their
affiliates and their agents or representatives to the extent that such
investigation or proceeding is in connection with Contracts marketed
under this Agreement.
F. Term of Agreement
(1) This Agreement shall continue in force for one year from its effective
date and thereafter shall automatically be renewed every year for a
further one year period; provided that either party may unilaterally
terminate this Agreement upon thirty (30) days' written notice to the
other party of its intention to do so.
(2) Upon termination of this Agreement, all authorizations, rights and
obligations shall cease except (a) the agreements contained in Section
E hereof; (b) the indemnity set forth in Section G hereof; and (c) the
obligations to settle accounts hereunder, including payments on
premiums subsequently received for Contracts in effect at the time of
termination or issued pursuant to applications received by Broker
prior to termination.
II-26
<PAGE>
-8-
G. Indemnity
(1) Distributor agrees to indemnify and hold harmless Broker and each
officer or director of Broker against any losses, claims, damages or
liabilities, joint or several, to which Broker or such officer or
director become subject, under the 1933 Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact, required to be stated
therein or necessary to make the statements therein not misleading,
contained in any Registration Statement or any post-effective
amendment thereof or in the Prospectus or any amendment or supplement
to the Prospectus.
(2) Broker agrees to indemnify and hold harmless Company and Distributor
and each of their current and former directors and officers and each
person, if any, who controls or has controlled Company or Distributor
within the meaning of the 1933 Act or the 1934 Act, against any
losses, claims, damages or liabilities to which Company or Distributor
and any such director or officer or controlling person may become
subject, under the 1933 Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon:
(a) Any unauthorized use of sales materials or any verbal or written
misrepresentations or any unlawful sales practices concerning the
Contracts by Brokers; or
(b) Claims by agents or representatives or employees of Broker for
commissions, service fees, development
II-27
<PAGE>
-9-
allowances or other compensation or remuneration of any type;
(c) The failure of Broker, its officers, employees, or agents to
comply with the provisions of this Agreement;
and Broker will reimburse Company and Distributor and any director or
officer or controlling person of either for any legal or other
expenses reasonably incurred by Company, Distributor, such director or
controlling person in connection with investigating or defending any
such loss, claims, damage, liability or action. This indemnity
agreement will be in addition to any liability which Dealer may
otherwise have.
H. Assignability
This Agreement shall not be assigned by either party without the written
consent of the other.
I. Governing Law
This Agreement shall be governed by and construed in accordance with the
laws of the State of New Jersey.
In Witness Whereof, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
PRUCO SECURITIES CORPORATION
(Distributor)
By
-------------------------------
(Broker)
By
-------------------------------
II-28
Exhibit A(3)(c)
Commission Schedule For
Variable Life Insurance Contracts
I. District Agencies
A. First Year Commissions on Contracts
Issued on the Following Insureds:
Commission as Percentage
Insured of Premiums
------- -----------------------------
Male Under Age 58 or Female Under Age 61 50%
Male, Age 58-67, or Female, Age 61-70 45
Male, Age 68-72, or Female, Age 71-75 40
Male, Age 73-75 35
B. Commissions on Renewal Premiums
in Contract Years Two Through Four:
Commission as Percentage
Insured of Premiums
------- -----------------------------
Male Under Age 73 and all Females 11%, if Contract's Face
Amount is less than $50,000;
10%, if Contract's Face Amount
is $50,000 or more
Male, Age 73-75 10%, if Contract's Face Amount
is less than $50,000; 9% if
Contract's Face Amount is
$50,000 or more
C. On Renewal Premiums in Contract
Years Five Through Ten, A
Commission of 3% Will Be Paid.
In Subsequent Years, A Commission
of 2% Will Be Paid.
II. Ordinary Agencies
A. First Year Commissions Are the Same
as Those Stated Above for District
Agencies
II-29
<PAGE>
-2-
B. Renewal Premiums on Contracts Sold
Through Ordinary Agencies Depend On
the Classification of the Selling
Agent
1. For Agents in categories T (Career agent - TAP),
W (Career agent-temporary TAP), and Y (Career agent-
temporary), the following commission schedule on renewal
premiums applies:
Commission as Percentage
Insured of Premiums
------- -----------------------------
Male Under Age 73 and all Females 12% in Contract Years Two
through Four; 3% in Contract
Years Five through Ten
Male, Age 73-75 11% in Contract Years Two
through Four; 3% in Contract
Years Five through Ten
2. For Agents in categories A (Asst. Mgr.
or Assoc. Mgr., 65 Series), B (Broker), G (Part-
time Special Agent), K (Retired Full-Time Agent),
M (Manager), N (Full-Time Career Special Agent
pre-65 contract), P (Part-Time Special Agent,
after 1-1-48), S (Surplus Broker), and U (Manager),
the Commission rate on renewal premiums is 5% for
Contract Years Two Through Ten.
3. For Agents in Categories F (Asst. Mgr. or
Assoc. Mgr., pre-65), E (Full-Time Agents, ISP),
V (Full-Time Career Agents, ISP), and N (Agent
Emeritus), the following commission schedule on
renewal premiums applies:
Commission as Percentage
Insured of Premiums
------- -----------------------------
Male Under Age 73 and all Females 10% in Contract Years Two
Through Four; 3% in Contract
Years Five Through Ten
Male, Age 73-75 9% in Contract Years Two
Through Four; 3% in Contract
Years Five Through Ten
II-30
<PAGE>
-3-
4. For Agents in Category X (Retired Full-Time Agent), the commnission rate
on renewal premiums is 9% for Contract years Two Through Five.
III. The registered representatives of Frudential-Bache Securities Inc. will be
paid the following commissions on contracts they sell: 35% of the first
year premiums, 5% of the second, third, and fourth year premiums, and
2-1/2% of the fifth year premiums.
IV. In the event a Contract lapses or is surrendered within the first two
Contract years, a portion or all of the first year commission may be
subject to recapture by the Pruco Life Insurance Company of New Jersey. If
the Contract lapses at the end of year one, 30% of the commission is
subject to recapture. A higher percentage of the first year commission may
be recaptured on earlier lapses. A lower and decreasing portion of the
first year commission is subject to recapture throughout the second
Contract year.
II-31
EXHIBIT 1.A(5)(a)
Prudential Pruco Life Insurance Company
Phoenix, Arizona
A Stock Company subsidiary of
The Prudential Insurance Company of America
- -------------------------------------------------------------------------------
Insured Policy Number
JOHN DOE XX XXX XXX Contract Date
Face Amount NOV 15, 198
$25,000--
Premium Period
Agency LIFE
R-NK 1
- -------------------------------------------------------------------------------
We will pay the beneficiary the proceeds of this contract promptly if we receive
due proof that the Insured died. We make this promise subject to all the
provisions of the contract.
The Death Benefit will be the insurance amount plus the amount of any extra
benefit if no premium is in default and if there is no contract debt. During the
first contract month, the insurance amount is the face amount we show above.
After that, it depends on the payment of premiums and on investment results. The
insurance amount may increase or decrease for any month as we state under
Insurance Provisions on page 8. But it will not be less than the face amount if
no premium is in default.
The net cash value may increase or decrease daily depending on the investment
experience of the separate account. There is no guaranteed minimum.
Premiums are fixed as to amount. They will not vary with investment results.
Please read this contract with care. A guide to its contents is on the last
page. A summary is on page 2. If there is ever a question about it, or if there
is a claim, just see one of our representatives or get in touch with one of our
offices.
Right to Cancel Contract.--You may return this contract to us within (1) 10 days
after you get it, or (2) 45 days after Part 1 of the application was signed, or
(3)10 days after we mail the Notice of Withdrawal Right, whichever is latest.
All you have to do is take the contract or mail it to one of our offices or to
the representative who sold it to you. It will be canceled from the start and we
will give back your money promptly.
Signed for Pruco Life Insurance Company,
an Arizona Corporation.
/s/ [SPECIMEN] /s/ [SPECIMEN]
Secretary President
Variable Life Insurance Policy. Insurance payable only upon death. Fixed
premiums payable during Insured's lifetime. Benefits reflect investment results.
Guaranteed minimum death benefit if premiums duly paid and no contract debt.
Nonparticipating.
VL--83
II-32
<PAGE>
CONTRACT SUMMARY
We offer this summary to help you understand this contract. We do not intend
that it change any of the provisions of the contract.
This is a contract of life insurance. Premiums are to be paid throughout the
Insured's lifetime. The insurance amount and the net cash value will vary with
the investment performance of those subaccounts of the Pruco Life Variable
Insurance Account that you select. But, except as we state in the next sentence,
the insurance amount will never be less than the face amount. If a premium is
not paid before its days of grace are over, the contract may end or it may stay
in force with reduced benefits. If either occurs, you may be able to reinstate
it.
Proceeds is a word we use to mean the amount we would pay if we were to settle
the contract in one sum. To compute the proceeds that may arise from the
Insured's death, we start with a basic amount. We may adjust that amount if
there is a loan, a premium in default, or a premium paid (but not waived under a
waiver of premium benefit, if any) for a period past the date of death. The
table on page 19 tells you how we adjust the basic amount. If you surrender the
contract, the proceeds will be the net cash value. We describe it under Cash
Value Option on page 11.
Proceeds often are not taken in one sum. For instance, on surrender, you may be
able to put proceeds under a settlement option to provide retirement income or
for some other purpose. Also, for all or part of the proceeds that arise from
the Insured's death, you may be able to choose a manner of payment to fit the
beneficiary's expected needs. If the Insured dies, and a manner of payment has
not been chosen, the beneficiary may be able to choose one. We will pay interest
under Option 3 from the date of death on any proceeds to which no other manner
of payment applies. This will be automatic as we state on page 18. There is no
need to ask for it.
You and we may agree on a change in the ownership of this contract. Also, unless
we endorse it to say otherwise, the contract gives you these rights, among
others:
o You may change the beneficiary under it.
o You may change the allocation of future net premiums among the subaccounts.
o You may transfer amounts among subaccounts.
o You may borrow on it up to its loan value.
o You may surrender it for its net cash value.
The contract, as issued, may or may not have extra benefits that we call
Supplementary Benefits. If it does, we list them under Supplementary Benefits on
the Contract Data page(s) and describe them after page 18. The contract may or
may not have other extra benefits. If it does, we add them by rider. Any extra
benefit ends as soon as any premium is in default past its days of grace, unless
the form that describes it states otherwise.
(Contract Summary Continued on Page 191
II-33
<PAGE>
CONTRACT DATA
INSURED'S SEX AND ISSUE AGE M-35
RATING CLASS STANDARD
INSURED JOHN DOE XX XXX XXX POLICY NUMBER
NOV 15, 1982 CONTRACT DATE
FACE AMOUNT $25,000--
PREMIUM PERIOD LIFE
AGENCY R-NK 1
BENEFICIARY CLASS 1 MARY DOE, WIFE
CLASS 2 ROBERT DOE, SON
LIST OF SUPPLEMENTARY BENEFITS
***** NONE *****
CONTRACT DATA CONTINUED ON NEXT PAGE
PAGE 3 (83) [LOGO]
II-34
<PAGE>
POLICY NO. XX XXX XXX
CONTRACT DATA CONTINUED
SCHEDULE OF PREMIUMS
DUE DATES OF CONTRACT PREMIUMS OCCUR ON THE CONTRACT DATE AND AT INTERVALS OF 6
MONTHS AFTER THAT DATE.
CONTRACT PREMIUMS ARE $208.00 EACH
DURING THE FIRST CONTRACT YEAR. EACH CONTRACT PREMIUM ALSO INCLUDES AN ISSUE
CHARGE INSTALMENT OF $63.00.
***** END OF SCHEDULE *****
TABLE OF NET PREMIUMS
WE USE NET PREMIUMS TO COMPUTE CASH VALUES FOR THIS CONTRACT (SEE PAGE 11). A
NET PREMIUM APPLIES TO EACH DATE FOR WHICH A CONTRACT PREMIUM APPLIES. THE NET
PREMIUMS THAT APPLY TO THIS CONTRACT ARE:
DURING CONTRACT YEAR NET PREMIUM
1 $863.75 EACH
2-4 $164.75 EACH
5-20 $173.75 EACH
21 AND LATER $174.75 EACH
***** END OF TABLE *****
CONTRACT DATA CONTINUED ON NEXT PAGE
PAGE 3A (83)
II-35
<PAGE>
POLICY NO. XX XXX XXX
CONTRACT DATA CONTINUED
LIST OF SUBACCOUNTS AND PORTFOLIOS
EACH SUBACCOUNT OF THE PRUCO LIFE VARIABLE INSURANCE ACCOUNT INVESTS IN A
SPECIFIC PORTFOLIO OF THE FUND WE SHOW BELOW. WE ALSO SHOW THE SUBACCOUNTS AND
THE PORTFOLIOS THEY INVEST IN.
IF WE CONSENT, YOU MAY ALSO ALLOCATE ALL OR PART OF YOUR INVESTED PREMIUM AMOUNT
TO, OR TRANSFER AMOUNTS INTO OR OUT OF, THE REAL ESTATE VLI SUB-ACCOUNT OF THE
PRUCO LIFE REAL PROPERTY ACCOUNT.
FUND:
-----
PRUCO LIFE SERIES FUND, INC.
SUBACCOUNT PORTFOLIO
---------- ---------
MONEY MARKET MONEY MARKET
BOND BOND
COMMON STOCK COMMON STOCK
INITIAL ALLOCATION OF NET PREMIUMS
MONEY MARKET SUBACCOUNT 40%
BOND SUBACCOUNT 20%
COMMON STOCK SUBACCOUNT 40%
***** END OF LIST *****
SERVICE OFFICE -- PLEASE DIRECT ANY COMMUNICATIONS ABOUT THIS CONTRACT TO:
PRUCO LIFE INSURANCE COMPANY, P.O. BOX XXXX, CITY, STATE XXXXX.
PAGE 3B (83)
II-36
<PAGE>
VL M--35 POLICY NO. XX XXX XXX
TABULAR CASH VALUES
WE EXPLAIN THIS TABLE UNDER TABULAR VALUES. NET CASH VALUES MAY BE MORE OR LESS
THAN AMOUNTS SHOWN (SEE CASH VALUE OPTION).
END OF END OF
CONTRACT CASH CONTRACT CASH ATTAINED CASH
YEAR VALUE YEAR VALUE AGE VALUE
1 $ 76.00 11 $3,393.00 60 $ 9,379.00
2 360.00 12 3,774.25 62 10,319.50
3 651.75 13 4,163.75 65 11,738.00
4 951.00 14 4,562.00
5 1,276.00 15 4,968.25
6 1,608.75 16 5,382.50
7 1,949.50 17 5,804.00
8 2,298.25 18 6,231.75
9 2,655.00 19 6,665.00
10 3,020.00 20 7,103.50
[LOGO]
PAGE 4 (VL-83)
II-37
<PAGE>
POLICY NO. XX XXX XXX
TABLE OF NET SINGLE PREMIUMS
FOR $1 OF VARIABLE INSURANCE AMOUNT OR REDUCED PAID-UP AMOUNT
THESE NET SINGLE PREMIUMS APPLY ON THE CONTRACT ANNIVERSARY WHEN THE INSURED'S
ATTAINED AGE IS AS SHOWN. TO CALCULATE VALUES AT OTHER TIMES WE CONSIDER THE
TIME ELAPSED SINCE THE LAST CONTRACT ANNIVERSARY.
NET NET NET
ATTAINED SINGLE ATTAINED SINGLE ATTAINED SINGLE
AGE PREMIUM AGE PREMIUM AGE PREMIUM
35 $.25596 60 $.54046 85 $ .85064
36 .26455 61 .55426 86 .85911
37 .27340 62 .56813 87 .86718
38 .28250 63 .58205 88 .87496
39 .29185 64 .59597 89 .88256
40 .30144 65 .60986 90 .89014
41 .31126 66 .62371 91 .89787
42 .32131 67 .63752 92 .90599
43 .33161 68 .65130 93 .91476
44 .34214 69 .66506 94 .92440
45 .35292 70 .67876 95 .93510
46 .36393 71 .69237 96 .94681
47 .37518 72 .70579 97 .95911
48 .36669 73 .71895 98 .97113
49 .39844 74 .73177 99 .98021
50 .41045 75 .74420 100 1.00000
51 .42268 76 .75623
52 .43513 77 .76791
53 .44776 78 .77929
54 .46057 79 .79043
55 .47352 80 .80134
56 .48661 81 .81199
57 .49985 82 .82233
58 .51324 83 .83226
59 .52678 84 .84170
[LOGO]
PAGE 4A (VL-83-M)
II-38
<PAGE>
ENDORSEMENTS
(Only we can endorse this contract.)
GENERAL PROVISIONS
Definitions.--We define here some of the words and phrases used all through this
contract. We explain others, not defined here, in other parts of the text.
We, Our, Us and Company.--Pruco Life Insurance Company, an Arizona Corporation.
You and Your.--The owner of the contract.
Insured.--The person named as the Insured on the first page. He or she need not
be the owner.
Example: Suppose we issue a contract on the life of your spouse. You applied for
it and named no one else as owner. Your spouse is the Insured and you are the
owner.
SEC.--The Securities and Exchange Commission.
Issue Date.--The contract date.
Monthly Date.--The date on which we compute variable insurance amounts. It
occurs on the contract date and on the same day as the contract date in each
later month.
Example: If the contract date is March 9, 1986, the Monthly Dates are each March
9, April 9, May 9 and so on.
Anniversary or Contract Anniversary.--The same day and month as the contract
date in each later year.
Example: If the contract date is March 9, 1986, the first anniversary is March
9, 1987. The second is March 9, 1988, and so on.
Contract Year.--A year that starts on the contract date or on an anniversary.
Example: If the contract date is March 9, 1986, the first contract year starts
then and ends on March 8, 1987. The second starts on March 9, 1987 and ends on
March 8, 1988, and so on.
Contract Month.--A month that starts on a Monthly Date.
Example: If March 9, 1986 is a Monthly Date, a contract month starts then and
ends on April 8, 1986. The next contract month starts on April 9, 1986 and ends
on May 8, 1986, and so on.
Attained Age.--The Insured's attained age at any time is the issue age plus the
length of time since the contract date. You will find the issue age near the top
of page 3.
The Contract.--This policy and the application, a copy of which is attached,
form the whole contract. We assume that all statements in the application were
made to the best of the knowledge and belief of the person(s) who made them; in
the absence of fraud they are deemed to be representations and not warranties.
We relied on those statements when we issued the contract. We will not use any
statement, unless made in the application, to try to void the contract or to
deny a claim.
Contract Modifications.--Only a Company officer may agree to modify this
contract, and then only in writing.
Non-participating.--This contract will not share in our profits or surplus
earnings. We will pay no dividends on it.
Service Office.--This is the office that will service this contract. Its mailing
address is the one we show on the Contract Data page, unless we notify you of
another one.
Ownership and Control.--Unless we endorse this contract to say otherwise: (1)
the owner of the contract is the Insured; and (2) while the Insured is living
the owner alone is entitled to (a) any contract benefit and value, and (b) the
exercise of any right and privilege granted by the contract or by us.
Suicide Exclusion.--If the Insured, whether sane or insane, dies by suicide
within two years from the issue date, we will pay no more under this contract
than the sum of the premiums paid.
Currency.--Any money we pay, or that is paid to us, must be in United States
currency. Any amount we owe will be payable at our Service Office.
(Continued on Next Page)
Page 5 (VL--83)
II-39
<PAGE>
GENERAL PROVISIONS (Continued)
Misstatement of Age or Sex.--If the Insured's stated age or sex or both are not
correct, we will change each benefit and any amount to be paid to what the
premium would have bought for the correct age and sex.
The Schedule of Premiums may show that premiums change or stop on a certain
date. We may have used that date because the Insured would attain a certain age
on that date. If we find that the issue age was wrong, we will correct that
date.
Incontestability.--Except for non-payment of premium, we will not contest this
contract after it has been in force during the Insured's lifetime for two years
from the issue date.
Assignment.--We will not be deemed to know of an assignment unless we receive
it, or a copy of it, at our Service Office. We are not obliged to see that an
assignment is valid or sufficient.
Annual Report.--Each year we will send you a report. It will show: (1) the
insurance amount; (2) the net cash value; (3) the amount of net cash value in
each subaccount; and (4) any contract debt and the interest on the debt for the
prior year. The report will, of course, include any other data that may be
currently required where this contract is delivered. No report will be sent if
this contract is being continued under any contract value options provision.
Payment of Death Claim.--If we settle this contract in one sum as a death claim,
we will usually pay the proceeds within 7 days after we receive at our Service
Office proof of death and any other information we need to pay the claim. But we
have the right to defer paying any portion of the proceeds equal to the variable
insurance amount if (1) the New York Stock Exchange is closed; or (2) the SEC
requires that trading be restricted or declares an emergency; or (3) the SEC
lets us defer payment to protect our contract owners.
BENEFICIARY
You may designate or change a beneficiary. Your request must be in writing and
in a form that meets our needs. It will take effect only when we file it at our
Service Office; this will be after you send the contract to us to be endorsed,
if we ask you to do so. Then any previous beneficiary's interest will end as of
the date of the request. It will end then even if the Insured is not living when
we file the request. Any beneficiary's interest is subject to the rights of any
assignee of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated. To show priority, we may use numbered classes, so that
the class with first priority is called class 1, the class with next priority is
called class 2, and so on. When we use numbered classes, these statements apply
to beneficiaries unless the form states otherwise:
1. One who survives the Insured will have the right to be paid only if no one in
a prior class survives the Insured.
2. One who has the right to be paid will be the only one paid if no one else in
the same class survives the Insured.
3. Two or more in the same class who have the right to be paid will be paid in
equal shares.
4. If none survives the Insured, we will pay in one sum to the Insured's estate.
Example: Suppose the class 1 beneficiary is Jane and the class 2 beneficiaries
are Paul and John. We owe Jane the proceeds if she is living at the Insured's
death. We owe Paul and John the proceeds if they are living then but Jane is
not. But if only one of them is living, we owe him the proceeds. If none of them
is living we owe the Insured's estate.
Beneficiaries who do not have a right to be paid under these terms may still
have a right to be paid under the Automatic Mode of Settlement.
Before we make a payment, we have the right to decide what proof we need of the
identity, age or any other facts about any persons designated as beneficiaries.
If beneficiaries are not designated by name and we make payment(s) based on that
proof, we will not have to make the payment(s) again.
Page 6 (VL--83)
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PREMIUM PAYMENT AND REINSTATEMENT
Payment of Premiums.--The Schedule of Premiums shows the amounts of the
premiums, how often and when they must be paid. We tell you below how you may be
able to have them fall due either more or less often. Due dates occur only while
the Insured is living. The premium period, which we show on the first page,
starts on the contract date. Each premium is to be paid by its due date. It may
be paid at our Service Office or to any of our authorized representatives. If we
are asked to do so, we will give a signed receipt. A premium is in default if it
is not paid when it is due.
Change of Frequency.--You may ask us in writing to have premiums fall due either
more or less often. If we agree, we will make the change and tell you what the
new premiums are and when they are due. The more often premiums are due, the
larger the total amount that will have to be paid for a contract year.
Grace Period.--We grant 31 days of grace for paying each premium except the
first one. If a premium has not been paid by its due date, the contract will
stay in force during its days of grace. If a premium has not been paid when its
days of grace are over, the contract will end and have no value, except as we
state under Contract Value Options. If a premium is paid during the grace
period, all benefits will be the same as they would have been if the premium had
been paid on its due date.
Premium Adjustment.--The Insured might die while no premium is in default. If
so, we will make an adjustment so that the proceeds will include that part of
the last premium paid which is more than was needed to pay premiums through the
date of death. Or the Insured might die in the days of grace of a premium in
default. If so, the amount needed to pay premiums through the date of death is
due us. We will make an adjustment so that the proceeds will not include that
amount.
Example. Suppose the contract date is in 1986. An annual premium of $400 due in
1988 is paid. The Insured dies nine months later. The proceeds will include
about $100 from the premium, since $300 was enough to pay premiums through the
date of death. The proceeds could include slightly more or less than $100 since
some months have more days than others.
This contract might have an extra benefit that insures someone other than the
Insured. And there might be a claim under that benefit while the Insured is
living and in the days of grace of a premium in default. In this case, we will
subtract any premium in default when we settle the claim.
Reinstatement.--You may reinstate this contract after the days of grace of a
premium in default. All these conditions must be met:
1. Premium payment must not be in default more than three years.
2. You must not have surrendered the contract to us for its net cash value.
3. You must give us any facts we need to satisfy us that the Insured is
insurable for the contract.
4. We must be paid the larger of amounts (a) and (b), where (a) is equal to the
total of all premiums in arrears with compound interest at 6% a year, and (b) is
equal to the total premiums in arrears for any extra benefits with compound
interest at 6% a year, plus 110% of the difference between the net cash value
that would apply upon reinstatement and the net cash value that applied just
before reinstatement. When we compute the net cash value upon reinstatement, we
assume that each premium was paid when due and was allocated to subaccounts in
accord with your most recent request. We also assume that any loan continued to
bear interest, which was not paid when due, thus reducing the investment base in
accord with the Loans provision.
5. Any contract debt must be restored or paid back with interest to date at
5-1/2% a year. If that debt with interest would exceed the loan value of the
reinstated contract, the excess must be paid to us before reinstatement.
Example: Suppose a premium due May 1st is not paid on time. The contract will
stay in force until June 1st whether the premium is paid or not. If the premium
is not paid by June 1st, you must meet all the above conditions if you want to
reinstate the contract.
After reinstatement, the contract will have the same investment base and the
same insurance amount as if no premium had been in default. We explain
investment base on page 9 and insurance amount on page 8.
Page 7 (VL--83)
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INSURANCE PROVISIONS
Insurance Amount.--The insurance amount on any date is equal to the sum of the
face amount, which we show on the first page, and the variable insurance amount
for that date, if it is more than zero.
Variable Insurance Amount.--The variable insurance amount is zero on the
contract date. On any Monthly Date after the contract date, it is equal to the
sum of (a) what it was on the prior Monthly Date, and (b) the variable
adjustment amount for the current Monthly Date. It can be less than, equal to.
or more than zero. On any date other than a Monthly Date, it is equal to what it
was on the prior Monthly Date.
Variable Adjustment Amount.--The variable adjustment amount for any Monthly Date
is equal to (a) divided by (b), where (a) is the excess investment return for
the contract month ending just before the Monthly Date, and (b) is the net
single premium at the Insured's attained age on the Monthly Date.
We show the net single premiums on the Contract Data page(s); we explain excess
investment return on page 9. If the excess investment return for a contract
month is less than zero, the variable adjustment amount for the next Monthly
Date will be less than zero.
SEPARATE ACCOUNT
The Account.--The word account, where we use it in this contract without
qualification, means the Pruco Life Variable Insurance Account. This is a unit
investment trust registered with the SEC under the Investment Company Act of
1940. It is also subject to the laws of Arizona. We own the assets of the
account; we keep them separate from the assets of our general investment
account. We established the account to support variable life insurance
contracts. But we do not use it to support this contract if the contract is
being continued under any contract value options provision.
Subaccounts.--The account has several subaccounts. We list them on the Contract
Data page(s). You determine, using percentages, how net premiums will be
allocated among the subaccounts. You may choose to allocate nothing to a
particular subaccount. But any allocation you make must be at least 10%; you may
not choose a fractional percent.
Example: You may choose a percentage of 0, or 100, or 10, 11, 12 and so on, up
to 90. But you may not choose a percentage of 1 through 9, or 91 through 99, or
any other percent that is not a whole number.
The allocation of net premiums that took effect on the contract date is shown on
the Contract Data page(s). You may change the allocation for future net premiums
at any time if all due premiums have been paid. To do so, you must notify us in
writing and in a form that meets our needs. The change will take effect on the
first premium due date on or after the date we receive your notice at our
Service Office.
A premium might be due when the investment base is less than zero. In that case,
if we receive that premium, we will first use as much of the net premium as we
need to increase the assets in each subaccount to which amounts are allocated to
zero. We will then allocate any remainder of the net premium in accord with your
most recent request.
The Fund.--The word fund, where we use it in this contract without
qualification, means the one we identify under the heading Fund on the Contract
Data page(s). The fund is registered with the SEC under the Investment Company
Act of 1940 as an open-end diversified management investment company. The fund
has several portfolios; there is a portfolio that corresponds to each of the
subaccounts of the account. We also list these portfolios on the Contract Data
page(s).
Account Investments.--We use the assets of the account to buy shares in the
fund. Each subaccount is invested in a corresponding specific portfolio. Income
and realized and unrealized gains and losses from assets in each subaccount are
credited to, or charged against, the subaccount. This is without regard to
income, gains, or losses in our other investment accounts.
We will determine the value of the assets in the account at the end of each
business day. When we use the term business day, we mean a day when the New York
Stock Exchange is open for trading. We might need to know the value of an asset
on a day that is not a business day or on which trading in that asset does not
take place. In this case, we will use the value of that asset as of the end of
the last prior business day on which trading took place.
Example: If we need to know the value of an asset on a Sunday, we will normally
use the value of the asset as of the end of business on Friday.
We will always keep assets in the account with a total value at least equal to
the amount of the investment bases under contracts like this one. To the extent
those assets do not exceed this amount, we use them only to support those
contracts; we do not use those assets to support any other business we conduct.
We may use any excess over this amount in any way we choose.
(Continued on Next Page)
Page 8 (VL--83)
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SEPARATE ACCOUNT (Continued)
Change in Investment Policy.--A portfolio of the fund might make a material
change in its investment policy. In that case, we will send you a notice of the
change. Within 60 days after you receive the notice, or within 60 days after the
effective date of the change, if later, you may exchange this contract for a new
contract of fixed benefit insurance on the Insured's life. The conditions for
exchange, and the specifications for the new contract, are described under
Exchange of Contract on page 14.
Change of Fund.--A portfolio might, in our judgment, become unsuitable for
investment by a subaccount. This might happen because of a change in investment
policy, or a change in the laws or regulations, or because the shares are no
longer available for investment, or for some other reason. If that occurs, we
have the right to substitute another portfolio of the fund, or to invest in a
fund other than the one we show on the Contract Data page(s). But we would first
seek approval from the SEC and, where required, the insurance regulator where
this contract is delivered.
INVESTMENT BASE AND RETURN ON INVESTMENT
Investment Base.--The investment base for this contract is the amount we use to
compute the excess investment return and the variable insurance amount. The
investment base is allocated among the subaccounts. The amount of the investment
base and its allocation to subaccounts depend on (1) how you choose to allocate
net premiums; (2) whether or not you transfer amounts among subaccounts, as we
discuss below; (3) the investment performance of the subaccounts to which
amounts are allocated or transferred; and (4) whether or not you take any loan.
The investment base exists only if the contract is in force with no premium in
default past its days of grace.
Base on Monthly Date.--On a Monthly Date, the investment base is equal to the
sum of these three items:
1. the net cash value on the Monthly Date (we explain net cash value under
Contract Value Options);
2. on any loan, the interest we have charged that is not yet due and that we
have not yet added to the loan (we explain these terms under Loans); and
3. during the first contract year, the issue charge instalments due during the
rest of the year (we show this charge on the Contract Data page(s).
Base on Other Dates.--On a date other than a Monthly Date, the investment base
is equal to:
1. what it was on the prior Monthly Date; plus
2. any increase due to investment results in the value of the subaccounts to
which amounts are allocated; minus
3. any decrease due to investment results in the value of the subaccounts to
which amounts are allocated; minus
4. a charge against the investment base at a rate of not more than .0009572% a
day (.35% a year) for mortality and expense risks that we assume; minus
5. any amount charged against the investment base for federal or state income
taxes; minus
6. any loan you made since the prior Monthly Date; plus
7. any loan principal you paid back since the prior Monthly Date.
Assumed Rate of Return.--The assumed rate of return is an effective rate of 4% a
year. This is the same as .01074598% a day compounded daily. We use this daily
rate when we make computations for less than a whole year.
Excess Investment Return.--The excess investment return for any period is equal
to:
1. the investment base at the end of the period; minus
2. what the investment base would have been at the end of the period if: (a) the
value of the assets in the subaccounts to which amounts are allocated had earned
interest at a rate equal to the assumed rate of return during the period; and
(b) we had made no charge for the mortality and expense risks described in item
4 under Base on Other Dates, or for federal or state income taxes.
The excess investment return can be less than, equal to, or more than zero. If a
premium was paid and accepted under the terms of this contract, then for the
purpose of computing the excess investment return it will be deemed to have been
paid as of its due date.
Transfers Among Subaccounts.--You may transfer amounts among subaccounts as
often as four times in a contract year, if all due premiums have been paid. To
do so, you must notify us in writing and in a form that meets our needs. The
transfer will take effect on the date we receive your notice at our Service
Office.
Page 9 (VL--83)
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<PAGE>
ENDORSEMENTS
(Only we can endorse this contract.)
II-44
<PAGE>
CONTRACT VALUE OPTIONS
(NONFORFEITURE BENEFITS ARE DESCRIBED HERE)
Benefit After the Grace Period.--If a premium is in default past its days of
grace and if the net cash value (which we describe under Cash Value Option) is
more than zero, we will use that value to keep the contract in force as one of
two kinds of insurance. One kind is extended insurance. The other is reduced
paid-up insurance. We describe both below. You will find under Automatic Benefit
which kind it will be. Any extra benefit(s) will, of course, end as soon as a
premium is in default past its days of grace unless the form that describes it
states otherwise.
Extended Insurance.--This will be term insurance on the Insured's life. We will
pay the amount of term insurance if the Insured dies in the term we describe
below. Before the end of the term there will be cash values but no loan value.
The amount of term insurance will be equal to the insurance amount on the due
date of the premium in default, minus any contract debt. The amount of the
insurance will not vary. The term is a period of time that will start on the due
date of the premium in default. The length of the term will be what is provided
when we use the net cash value as a net single premium for extended term
insurance. The length of the term will depend on the net cash value, the amount
of insurance, the Insured's issue age and sex, and on the length of time since
the contract date. (The net single premiums that we refer to here are not those
we show on the Contract Data page(s). The ones we show there are used to compute
the variable insurance amount.)
Example: Suppose the face amount is $50,000. On the day a premium is due, the
variable insurance amount is $5,740. There is contract debt of $1,300. If the
premium due is not paid at the end of its days of grace, the amount of term
insurance will be $53,840. This comes from the insurance amount of $55,140 (the
face amount of $50,000 plus the variable insurance amount $5,140) minus the
$1,300 contract debt. The term insurance will last as long as the net cash value
will provide it.
There may be extra days of term insurance. This will occur if, on the due date
of the premium in default, the term of extended insurance provided by the net
cash value does not exceed 90 days, or the number of days for which premiums
have been paid, if less. The number of extra days will be (1) 90, or the number
of days for which premiums have been paid, if less, minus (2) the number of days
of extended insurance that would be provided by the net cash value, if there
were no contract debt. The extra days, if any, start on the day after the last
day of term insurance provided by the net cash value, if any. If there is no
such term insurance, they start on the due date of the premium in default. The
term insurance for the extra days has no cash value. There will be no extra days
if you replace the extended insurance with reduced paid-up insurance or you
surrender the contract before the extra days start.
Reduced Paid-up Insurance.--This will be paid-up life insurance on the Insured's
life. We will pay the amount of this insurance when the Insured dies. There will
be cash values and loan values.
The amount of this insurance will be what is provided when we use the net cash
value at the net single premium rate. This rate depends on the Insured's issue
age and sex and on the length of time since the contract date. The amount of
this insurance will not vary.
Computations.--We will make all computations for either of these benefits as of
the due date of the premium in default. But we will consider any loan you take
Out or pay back in the days of grace of that premium.
Automatic Benefit.--When a premium is in default past its days of grace, the
contract will stay in force as extended insurance. But it will stay in force as
reduced paid-up insurance if we issued the contract in a rating class for which
we do not provide extended insurance. In this case, the phrase No Extended
Insurance is in the Rating Class on page 3.
Optional Benefit.--You may choose to replace any extended insurance that has a
cash value by reduced paid-up insurance. To make this choice, you must do so in
writing to us and in a form that meets our needs, not more than three months
after the due date of the premium in default. You must also send the contract to
us to be endorsed.
Cash Value Option.--You may surrender this contract for its net cash value, if
this value is more than zero. If this value is less than zero, the proceeds on
surrender will be equal to zero. To do so, you must ask us in writing and in a
form that meets our needs. You must also send the contract to us. Here is how we
will compute the net cash value:
1. On a Monthly Date if no premium is in default: The net cash value on a
Monthly Date will be equal to (a) the tabular cash value on that date; plus (b)
the net single premium at the Insured's then attained age for the variable
insurance amount that applies on that date; minus (c) if that date is a premium
due date, and the premium has not
(Continued on Next Page)
Page 11 (VL--83)
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CONTRACT VALUE OPTIONS (Continued)
been paid, the net premium that applies on that date; minus (d) any contract
debt; minus (e) in the first contract year, any issue charge instalments that
have not yet been paid. The amount of (b) will be less than zero if the variable
insurance amount is less than zero.
2. On any other date if no premium is in default: The net cash value on a date
other than a Monthly Date will be equal to (a) the tabular cash value on that
date; plus (b) the net single premium at the Insured's then attained age for the
variable insurance amount that applies on that date; plus (c) the excess
investment return since the last Monthly Date; minus (d) any contract debt;
minus (e) in the first contract year, any issue charge instalments that have not
yet been paid. The amount of (b) will be less than zero if the variable
insurance amount is less than zero.
3. During the days of grace of a premium in default: The net cash value on any
date will be the net cash value as of the due date of the first unpaid premium
plus the excess investment return since that due date. But we will adjust this
value for any loan you took out or paid back since that due date.
4. After the days of grace of a premium in default: The net cash value as of any
date will be the net value on that date of any extended insurance benefits then
in force. Or it will be the net value on that date of any reduced paid-up
insurance benefits then in force, less any contract debt. However, within 30
days after an anniversary, the net cash value will not be less than it was on
that anniversary. We will, of course, adjust it for any loan you took out or
paid back since that anniversary.
If the due date of a paid premium is on or after the date a contract value
option takes effect, we will pay that premium to you in cash.
If all due premiums have been paid, or during the days of grace of a premium in
default, we will usually pay any cash value within 7 days after we receive your
request and the contract at our Service Office. But we have the right to defer
payment if (1) the New York Stock Exchange is closed; or (2) the SEC requires
that trading be restricted or declares an emergency; or (3) the SEC lets us
defer payments to protect our contract owners.
If a premium is in default past its days of grace, we have the right to postpone
paying a cash value for up to six months. If we do so for more than 30 days, we
will pay interest at the rate of 3% a year.
Tabular Values.--In the table on page 4 we show tabular values at the ends of
contract years. The tabular value at the beginning of the first contract year is
the net premium then due. If we need to compute tabular values at some time
during a contract year, we will count the time since the start of the year and
any premiums paid for the year. We will let you know the tabular values for
other durations if you ask for them.
ENDORSEMENTS
(Only we can endorse this contract.)
Page 12 (VL--83) Printed in U.S.A.
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LOANS
Loan Requirements.--On or after the first contract anniversary, you may borrow
from us on the contract. All these conditions must be met:
1. The Insured must be living.
2. The contract must be in force other than as extended insurance.
3. The contract debt will not be more than the loan value. (We explain these
phrases below.)
4. As sole security for the loan, you must assign the contract to us in a form
that meets our needs.
5. Except when used to pay premiums on this contract, the amount you borrow at
any one time must be at least $500.
If there is already contract debt when you borrow from us, we will add the new
amount you borrow to that debt.
Contract Debt.--Contract debt at any time means the loan on the contract plus
the interest we have charged that is not yet due and that we have not yet added
to the loan.
Loan Value.--During the first contract year the loan value is zero. After the
first contract year, it is 75% of the sum of the net cash value and any existing
contract debt.
If the difference between the loan value and any existing contract debt is $500
or more, you may borrow any amount from $500 up to that difference. If the
difference is less than $500, you may not borrow any amount unless it is to pay
premiums on this contract.
Example 1: Suppose the net cash value is $8,000. You borrowed $1,500 a few
months ago. Suppose also that now there is interest of $40 charged but not yet
due. The contract debt is now $1,540, which is made up of the $1,500 loan and
the $40 interest.
Example 2: Suppose, in example 1, you want to borrow all that you can. The loan
value is $7,155; to compute it we add the net cash value ($8,000) to the
contract debt ($1,540) and take 75% of the sum. We will lend you $5,615 which is
the difference between the $7,155 loan value and the $1,540 contract debt. This
will increase the contract debt to $7,155. We will add the new amount borrowed
to the existing loan and will charge interest on it, too.
There are three exceptions to the above definition of loan value. The first is
that in the days of grace of a premium in default, the loan value is what it was
on the due date of that premium, plus 75% of the excess investment return since
that date. The second is that if the contract is in force as reduced paid-up
insurance we use anniversaries and not premium due dates to find the loan value
since there are no more of those due dates. The third is that if the contract is
in force as reduced paid-up insurance, the loan value is the amount that would
grow with interest to equal the net single premium on the next anniversary.
Interest Charge.--We will charge interest daily on any loan. The loan interest
rate is 5 1/2% a year. Interest is due on each contract anniversary, or when the
loan is paid back if that comes first. If interest is not paid when due, it will
become part of the loan. Then we will start to charge interest on it, too.
Example 3: Suppose the contract date is in 1987. Six months before the
anniversary in 1996 you borrow $1,000 out of a $4,000 loan value. Three months
later, but still three months before the anniversary, we will have charged about
$13.75 interest. This amount will be a few cents more or less than $13.75 since
some months have more days than others. The interest will not be due until the
anniversary unless the loan is paid back sooner. The loan will still be $1,000.
The contract debt will be $1,013.75, since contract debt includes interest
charged but not yet due. On the anniversary in 1996 we will have charged about
$27.50 interest. The interest will then be due.
Example 4: Suppose the $27.50 interest in example 3 is paid on the anniversary.
The loan and contract debt will each become $1,000 right after the payment.
Example 5: Suppose the $27.50 interest in example 3 is not paid on the
anniversary. The interest will become part of the loan, and we will begin to
charge interest on it, too. The loan and contract debt will each become
$1,027.50.
Repayment.--All or part of any contract debt may be paid back at any time while
the Insured is living. But if there is contract debt at the end of the last day
of grace of a premium in default, it may be paid back only if the contract is
reinstated. When we settle the contract, any contract debt is due us. We will
make an adjustment so that the proceeds will not include the amount of that
debt.
(Continued on Next Page)
Page 13 (VL--83)
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LOANS (Continued)
Effect of a Loan.--When you take a loan, we will reduce the investment base by
the amount you borrow. We will also reduce the investment base by interest that
becomes part of the loan because it is not paid when due. When you repay part or
all of a loan we will increase the investment base by the amount you repay. We
will not increase the investment base by interest that is paid before we make it
part of the loan. We will allocate loans and repayments among the subaccounts in
proportion to the investment base in each subaccount as of the date of the loan
or repayment. Only the amount of the investment base will reflect the investment
results of the subaccounts. Since the amount you borrow is removed from the
investment base, a loan will have a permanent effect on the death benefit and
net cash value of this contract. The longer the loan is outstanding, the greater
this effect is likely to be.
Example 6: Suppose the contract's investment base is $15,000 and that $10,000 is
in subaccount A and $5,000 is in subaccount B. If you make a $9,000 loan we will
reduce the amount in subaccount A by $6,000 and the amount in subaccount B by
$3,000.
Suppose that sometime later, when the investment base in each of the two
subaccounts is the same, you choose to repay the $9,000 loan. We will add $4,500
to the amount in each subaccount.
Excess Contract Debt.--If contract debt ever becomes equal to or more than what
the net cash value would be if there were no contract debt, all the contract's
benefits will end 31 days after we mail a notice to you and any assignee of whom
we know. Also, we may send a notice to the Insured's last known address. In the
notice we will state the amount that, if paid to us, will reduce the contract
debt enough to keep the contract's benefits from ending for a limited time.
Payment of Loan.--We will usually make a loan within 7 days after we receive
your request at our Service Office. But we have the right to defer making the
loan if (1) the New York Stock Exchange is closed; or (2) the SEC requires that
trading be restricted or declares an emergency; or (3) the SEC lets us defer
payments to protect our contract owners. If the contract is in force as reduced
paid-up insurance, we have the right to defer making a loan for up to 8 months.
ENDORSEMENTS (Only we can endorse this contract.)
Page 13a (VL--83)
II-48
<PAGE>
EXCHANGE OF CONTRACT
Right to Exchange.--Before the second anniversary you may exchange this contract
for a new contract of fixed benefit insurance on the Insured's life. You will
not have to prove to us that the Insured is insurable. Also, you may make such
an exchange at any time if there is a material change in the investment policy
of a portfolio (see Change in Investment Policy on page 9). When we use the
phrase new contract we mean the contract for which this contract may be
exchanged.
Conditions.--Your right to make this exchange is subject to all these
conditions: (1) You must ask for the exchange in writing and in a form that
meets our needs. (2) You must surrender the contract to us. (3) We must have
your request and the contract at our Service Office while the contract is in
force with no premium in default past its days of grace. (4) You must pay back
any contract debt under this contract.
Exchange Date.--The exchange date will be the later of: (1) the date we receive
the contract and your request at our Service Office; and (2) the date we receive
the payment, if any, required for the exchange. The new contract will take
effect on the exchange date only if the Insured is then living. If the new
contract takes effect, this contract will end just before the exchange date.
Contract Specifications.--The new contract will be on the Life Paid Up at Age 85
plan (Life Paid Up at Age 65 plan if the issue age for this contract is less
than age 15) issued by The Prudential Insurance Company of America. The new
contract will have a face amount equal to the face amount of this one. It will
have the same contract date and issue age as this contract and be in the same
rating class.
This contract might include an extra benefit. And a similar kind of benefit
might have been regularly offered in contracts like the new one on the date the
extra benefit took effect in this contract. In that case, if you ask for it in
your request for the exchange, that similar kind of benefit will be put in the
new contract. When we use the phrase contracts like the new one, we mean
contracts that were, on the contract date of this contract, regularly issued on
the same plan as the new one and for the same rating class, amount, issue age
and sex.
The amount of any accidental death benefit included in the new contract in
accord with this provision will be the same as the amount of the accidental
death benefit in this contract.
If a benefit for waiving premiums is included in the new contract in accord with
this provision, any premiums to be waived under the new contract for a
disability that began before the exchange date must be at the frequency that was
in effect for this contract when the disability started. But premiums will not
be waived under the new contract unless it has a benefit for waiving premiums in
the event of disability. This will be so even if we have waived premiums under
this contract.
There may be a cash adjustment on exchange. If the exchange is made before the
second anniversary, the adjustment will be based on any difference in premiums
between this contract and the new one for those benefits carried over to the new
contract. If the exchange is made on or after the second anniversary, the
adjustment will be based on any difference in net cash values between this
contract and the new one. For this purpose the net cash value of the new
contract is what the proceeds of the new contract would be if it were
surrendered immediately after the exchange. The adjustment may be either a
charge or an allowance.
We will determine the charge or allowance as of the date we receive this
contract and your written request for the exchange at our Service Office.
Other Exchanges.--You may be able to have this contract changed to another plan
of life insurance either with us or with an affiliate of ours other than in
accord with the requirements for exchange that we state above. But any change
may be made only if we consent and will be subject to conditions and charges
that are then determined.
Page 14 (VL--83)
II-49
<PAGE>
ENDORSEMENTS
(Only we can endorse this contract.)
Page 14a (VL--83) Printed In U.S.A.
II-50
<PAGE>
SETTLEMENT OPTIONS
Payee Defined.--In these provisions and under the Automatic Mode of Settlement,
the word Payee means a person who has a right to receive a settlement under the
contract. Such a person may be the Insured, the owner, a beneficiary, or a
contingent payee.
Choosing an Option.--While the Insured is living you may choose, or change the
choice of, an option for all or part of the proceeds that may arise from the
Insured's death. The requirements are the same as those to designate or change a
beneficiary. We describe them under Beneficiary.
A Payee may choose an option for all or part of any proceeds or residue that
becomes payable to him or her in one sum. We describe residue later on this
page.
In some cases, you or another Payee will need our consent to choose an option.
We describe these cases under Conditions.
Options Described.--Here are the options we offer. We may also consent to other
arrangements.
Option 1 (Instalments for a Fixed Period).--We will make equal payments for up
to 25 years based on the Option 1 Table. The payments will include interest at
an effective rate of 3-1/2% a year. We may credit more interest. If and while we
do so, the payments will be larger.
Option 2 (LIfe Income).--We will make equal monthly payments for as long as the
person on whose life the settlement is based lives, with payments certain for
the period chosen. The choices are either ten years (10-Year Certain) or until
the sum of the payments equals the amount put under this option (Instalment
Refund). The amount of each payment will be based on the Option 2 Table and on
the sex and age, on the due date of the first payment, of the person on whose
life the settlement is based. But if a choice is made more than two years after
the Insured's death, we may use the Option 2 payment rates in individual annuity
contracts or life insurance contracts we regularly issue, based on United States
currency, on the due date of the first payment. On request, we will quote the
payment rates in contracts we then issue. We must have proof of the date of
birth of the person on whose life the settlement is based. If on the due date of
the first payment under this option, we have declared a higher payment rate
under the option, we will base the payments on that higher rate.
Option 3 (Interest Payment).--We will hold an amount at interest. We will pay
interest at an effective rate of at least 3% a year ($30.00 annually. $14.89
semi-annually, $7.42 quarterly or $2.47 monthly per $1,000). We may pay more
interest.
Option 4 (Instalments of a Fixed Amount).--We will make equal annual,
semi-annual, quarterly or monthly payments if they total at least $90 a year for
each $1,000 put under this option. We will credit the unpaid balance with
interest at an effective rate of at least 3-1/2% a year. We may credit more
interest. If we do so, the balance will be larger. The final payment will be any
balance equal to or less than one payment.
First Payment Due Date.--Unless a different date is stated when the option is
chosen: (1) the first payment for Option 3 will be due at the end of the chosen
payment interval; and (2) the first payment for any of the other options will be
due on the date the option takes effect.
Residue Described.--For Options 1 and 2, residue on any date means the then
present value of any unpaid payments certain. We will compute it at an effective
interest rate of 3 1/2% a year. But we will use the interest rate we used to
compute the actual Option 2 payments if they were not based on the table in this
contract.
For Options 3 and 4, residue on any date means any unpaid balance with interest
to that date.
For Option 2, residue does not include the value of any payments that may become
due after the certain period.
(Continued on Next Page)
Page 15 (VL--83)
II-51
<PAGE>
SETTLEMENT OPTIONS (Continued)
OPTION 1 TABLE
----------------------------
MINIMUM AMOUNT OF
MONTHLY PAYMENT FOR
EACH $1,000, THE FIRST
PAYABLE IMMEDIATELY
----------------------------
Number of Monthly
Years Payment
----------------------------
1 $84.65
2 43.05
3 29.19
4 22.27
5 18.12
6 15.35
7 13.38
8 11.90
9 10.75
10 9.83
11 9.09
12 8.46
13 7.94
14 7.49
15 7.10
16 6.76
17 6.47
18 6.20
19 5.97
20 5.75
21 5.56
22 5.39
23 5.24
24 5.09
25 4.96
----------------------------
Multiply the monthly amount
by 2.989 for quarterly,
5.952 for semi-annual or
11.804 for annual.
----------------------------
<TABLE>
<CAPTION>
OPTION 2 TABLE
- -------------------------------------------------------------------------------------
MINIMUM AMOUNT OF MONTHLY PAYMENT FOR EACH $1,000, THE FIRST PAYABLE IMMEDIATELY
- -------------------------------------------------------------------------------------
KIND OF LIFE INCOME KIND OF LIFE INCOME
----------------------------- -----------------------------
10-Year Instalment 10-Year Instalment
AGE Certain Refund AGE Certain Refund
LAST ----------------------------- LAST -----------------------------
BIRTHDAY Male Female Male Female BIRTHDAY Male Female Male Female
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10 $3.18 $3.11 $3.17 $3.10 45 $4.06 $3.82 $3.99 $3.78
and under 46 4.12 3.86 4.03 3.81
11 3.19 3.12 3.18 3.11 47 4.17 3.90 4.08 3.85
12 3.20 3.13 3.19 3.12 48 4.23 3.94 4.13 3.90
13 3.21 3.14 3.20 3.13 49 4.28 3.99 4.18 3.94
14 3.22 3.15 3.21 3.14
50 4.35 4.04 4.24 3.98
15 3.24 3.16 3.23 3.15 51 4.41 4.09 4.29 4.03
16 3.25 3.17 3.24 3.16 52 4.48 4.15 4.35 4.08
17 3.27 3.19 3.25 3.18 53 4.55 4.21 4.41 4.13
18 3.28 3.20 3.27 3.19 54 4.62 4.27 4.48 4.19
19 3.30 3.21 3.28 3.20
55 4.70 4.33 4.55 4.24
20 3.31 3.22 3.30 3.21 56 4.78 4.40 4.62 4.30
21 3.33 3.24 3.32 3.23 57 4.86 4.47 4.69 4.37
22 3.35 3.25 3.33 3.24 58 4.95 4.54 4.77 4.43
23 3.36 3.26 3.35 3.25 59 5.05 4.62 4.86 4.50
24 3.38 3.28 3.37 3.27
60 5.15 4.71 4.94 4.58
25 3.40 3.30 3.39 3.29 61 5.25 4.79 5.03 4.66
26 3.42 3.31 3.41 3.30 62 5.36 4.89 5.13 4.74
27 3.45 3.33 3.43 3.32 63 5.48 4.98 5.23 4.82
28 3.47 3.35 3.45 3.34 64 5.60 5.09 5.34 4.92
29 3.49 3.37 3.47 3.35
65 5.73 5.20 5.45 5.01
30 3.52 3.39 3.49 3.37 66 5.87 5.31 5.57 5.11
31 3.54 3.41 3.52 3.39 67 6.01 5.43 5.70 5.22
32 3.57 3.43 3.54 3.41 68 6.15 5.56 5.83 5.34
33 3.60 3.45 3.57 3.44 69 6.30 5.70 5.97 5.46
34 3.63 3.47 3.60 3.46
70 6.46 5.84 6.11 5.58
35 3.66 3.50 3.63 3.48 71 6.62 5.99 6.27 5.72
36 3.69 3.52 3.66 3.50 72 6.79 6.15 6.43 5.86
37 3.72 3.55 3.69 3.53 73 6.96 6.31 6.60 6.01
38 3.76 3.58 3.72 3.56 74 7.13 6.49 6.78 8.18
39 3.80 3.61 3.75 3.58
75 7.30 6.67 6.97 6.35
40 3.84 3.64 3.79 3.61 76 7.48 6.85 7.17 6.53
41 3.88 3.67 3.82 3.64 77 7.66 7.04 7.38 6.72
42 3.92 3.70 3.86 3.67 78 7.83 7.24 7.60 6.93
43 3.97 3.74 3.90 3.71 79 8.00 7.44 7.83 7.15
44 4.01 3.78 3.94 3.74
80 8.17 7.64 8.07 7.38
and over
- -------------------------------------------------------------------------------------
</TABLE>
(Continued on Next Page)
Page 16 (VL--83)
II-52
<PAGE>
SETTLEMENT OPTIONS (Continued)
Withdrawal of Residue.--Unless otherwise stated when the option is chosen: (1)
under Options 1 end 2 the residue may be withdrawn: and (2) under Options 3 and
4 all, or any part not less than $100, of the residue may be withdrawn. If an
Option 3 residue is reduced to less than $1,000, we have the right to pay it in
one sum. Under Option 2, withdrawal of the residue will not affect any payments
that may become due after the certain period; the value of those payments cannot
be withdrawn. Instead, the payments will start again if they were based on the
life of a person who lives past the certain period.
Designating Contingent Payee(s).--A Payee under an option has the right, unless
otherwise stated, to name or change a contingent payee to receive any residue at
that Payee's death. This may be done only if (1) the Payee has the full right to
withdraw the residue; or (2) the residue would otherwise have been payable to
that Payee's estate at death.
A Payee who has this right may choose, or change the choice of, an option for
all or part of the residue. In some cases, the Payee will need our consent to
choose or change an option. We describe these cases under Conditions.
Any request to exercise any of these rights must be in writing and in a form
that meets our needs. It will take effect only when we file it at our Service
Office. Then the interest of anyone who is being removed will end as of the date
of the request, even if the Payee who made the request is not living when we
file it.
Changing Options.--A Payee under Option 1, 3 or 4 may choose another option for
any sum that the Payee could withdraw on the date the chosen option is to start.
That date may be before the date the Payee makes the choice only if we consent.
In some cases, the Payee will need our consent to choose or change an option. We
describe these cases next.
Conditions.--Under any of these conditions, our consent is needed for an option
to be used for any person:
1. The person is not a natural person who will be paid in his or her own right.
2. The person will be paid as assignee.
3. The amount to be held for the person under Option 3 is less than $1,000. But
we will hold any amount for at least one year in accord with the Automatic Mode
of Settlement.
4. Each payment to the person under the option would be less than $20.
5. The option is for residue arising other than at (a) the Insured's death, or
(b) the death of the beneficiary who was entitled to be paid as of the date of
the Insured's death.
6. The option is for proceeds that arise other than from the Insured's death,
and we are settling with an owner or any other person who is not the Insured.
Death of Payee.--If a Payee under an option dies and if no other distribution is
shown, we will pay any residue under that option in one sum to the Payee's
estate.
ENDORSEMENTS
(Only we can endorse this contract.)
Page 17 (VL--83)
II-53
<PAGE>
AUTOMATIC MODE OF SETTLEMENT
Applicability.--These provisions apply to proceeds arising from the Insured's
death and payable in one sum to a Payee who is a beneficiary. They do not apply
to any periodic payment.
Interest on Proceeds.--We will hold the proceeds at interest under Option 3 of
the Settlement Options provision. The Payee may withdraw the residue. We will
pay it promptly on request. We will pay interest annually unless we agree to pay
it more often. We have the right to pay the residue in one sum after one year if
(1) the Payee is not a natural person who will be paid in his or her own right:
(2) the Payee will be paid as assignee; or (3) the original amount we hold under
Option 3 for the Payee is less than $1,000.
Settlement at Payee's Death.--If the Payee dies and leaves an Option 3 residue,
we will honor any contingent payee provision then in effect. If there is none,
here is what we will do. We will look to the beneficiary designation of the
contract; we will see what other beneficiary(ies), if any, would have been
entitled to the portion of the proceeds that produced the Option 3 residue if
the insured had not died until immediately after the Payee died. Then we will
pay the residue in one sum to such other beneficiary(ies). in accord with that
designation. But if, as stated in that designation, payment would be due the
estate of someone else, we will instead pay the estate of the Payee.
Example: Suppose the class I beneficiary is Jane and the class 2 beneficiaries
are Paul and John. Jane was living when the Insured died. Jane later died
without having chosen an option or naming someone other than Paul and John as
contingent payee. If Paul and John are living at Jane's death we owe them the
residue. If only one of them is living then, and if the contract called for
payment to the survivor of them, we owe him the residue. If neither of them is
living then, we owe Jane's estate.
Spendthrift and Creditor.--A beneficiary or contingent payee may not, at or
after the Insured's death, assign. transfer, or encumber any benefit payable. To
the extent allowed by law, the benefits will not be subject to the claims of any
creditor of any beneficiary or contingent payee.
ENDORSEMENTS
(Only we can endorse this contract.)
Page 18 (VL--83)
II-54
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- ----------------------------------------------------===============================================================================
Part 1 Application to No.
[ ] The Prudential Insurance Company of America XX XXX XXX
[X] Pruco Life Insurance Company--A Subsidiary of The Prudential Insurance Company of America
- -----------------------------------------------------------------------------------------------------------------------------------
1a. Proposed Insured's name--first, initial, last (Print) 1b. Sex 2a. Date of birth 2b. Age 2c. Place of birth
M F Mo. Day Yr.
JOHN DOE [X] [ ] 6 17 47 35 (NAME OF STATE)
- -----------------------------------------------------------------------------------------------------------------------------------
3. [ ] Single [X] Married [ ] Widowed [ ] Separated [ ] Divorced 4. Occupation(s)
- -----------------------------------------------------------------------------------------------------------------------------------
5. Address for mail No. Street City State Zip
15 BLANK STREET (NAME OF CITY) (NAME OF STATE) XXXXX
- -----------------------------------------------------------------------------------------------------------------------------------
6a. Kind of policy 6b. Initial amount 7. Accidental death coverage
VARIABLE LIFE $25,000 initial amount $
- -----------------------------------------------------------------------------------------------------------------------------------
8. Beneficiary: (Include name, age and relationship.) 9. List all life insurance on proposed Insured. If NONE, so state.)
a. Primary (Class 1): b. Contingent (Class 2) if any: Company Initial Yr. Kind Medical
MARY DOE, 35 ROBERT DOE, 10 amt. issued (Indiv., Group) Yes No
SPOUSE SON NONE [ ] [ ]
____________________________________________________ _______________________________________________________________________
[ ] [ ]
(For insurance payable upon death of (1) the Insured, _______________________________________________________________________
and (2) an insured child after the death of the [ ] [ ]
Insured if there is no insured spouse.) _______________________________________________________________________
[ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
10. Other person(s) proposed for coverage including the Applicant for Applicant's Waiver of Premium benefit (AWP)
Relationship to Date of birth Total life insurance
Name--first, initial, last Sex proposed Insured Mo. Day Yr. Age Place of birth in all companies
a. Spouse $
___________________________________________________________________________________________________________________________________
b. $
___________________________________________________________________________________________________________________________________
c. $
___________________________________________________________________________________________________________________________________
d. $
___________________________________________________________________________________________________________________________________
e. $
___________________________________________________________________________________________________________________________________
f. $
- -----------------------------------------------------------------------------------------------------------------------------------
11. Supplementary benefits: a. For proposed Insured b. For spouse, children, Applicant for AWP
Type and duration of benefit Amount Type and duration of benefit Amount
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
[ ] Option to Purchase Additional Ins. $ [ ] Applicant's Waiver of Premium benefit
- -----------------------------------------------------------------------------------------------------------------------------------
12. State any special request.
- -----------------------------------------------------------------------------------------------------------------------------------
13. Will this insurance replace or change any existing insurance or annuity in any company on any person named Yes No
in 1a or 10? If "Yes", give their names, name of company, plan, amount and policy numbers. [ ] [X]
- -----------------------------------------------------------------------------------------------------------------------------------
14. Is anyone applying for, or trying to reinstate, life or health insurance on any person named in 1a or 10 in Yes No
this or any company? If "Yes", give amount, details and company. [ ] [X]
- -----------------------------------------------------------------------------------------------------------------------------------
15. Does any person named in 1a or 10 plan to live or travel outside the United States and Canada within the next Yes No
12 months? If "Yes", give details. [ ] [X]
- -----------------------------------------------------------------------------------------------------------------------------------
16. Has any person named in 1a or 10 operated or had any duties aboard an aircraft, glider, balloon, or like Yes No
device, within the last 2 years, or does any such person have any plans to do so in the future? If "Yes", [ ] [X]
complete Aviation Questionnaire.
- -----------------------------------------------------------------------------------------------------------------------------------
17. Has any person named in 1a or 10, within the last 12 months: Yes No
a. been treated by a doctor for or had a known heart attack, stroke or cancer other than of the skin? ............ [ ] [X]
b. had an electrocardiogram for any physical complaint, or taken medication for high blood pressure? ............. [ ] [X]
- -----------------------------------------------------------------------------------------------------------------------------------
18. Premium payable [ ] Ann. [X] Semi-Ann. [ ] Quar. [ ] Mon. [ ] Pay. Budg. [ ] Pru-Matic [ ] Gov't. Allot.
- -----------------------------------------------------------------------------------------------------------------------------------
19. Amount paid $208.00 [ ] None (Must be "None" if either 17a or 17b is answered "Yes".)
- -----------------------------------------------------------------------------------------------------------------------------------
20. Is a medical examination to be made on Yes No
a. the proposed Insured?.......................................................................................... [ ] [X]
b. spouse (if proposed for coverage)? ............................................................................ [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
21. If 20a or 20b is "Yes", is it agreed that no insurance will take effect on anyone proposed for coverage until Yes No
the person(s) indicated in 20 have been examined, even if 19 shows that an amount has been paid? ................. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
22. Changes made by the Company
- -----------------------------------------------------------------------------------------------------------------------------------
ORD 84376-82 Page 1 (Continued on page 2)
</TABLE>
II-55
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Continuation of Part 1 of Application
Complete on all persons named in 1a and 10 if any one of them can have insurance on a non-medical basis.
- -----------------------------------------------------------------------------------------------------------------------------------
23. Height and weight of:
a. Proposed Insured Ht. 5'10" Wt. 160 lbs b. Spouse Ht.________ Wt.________ c. Applicant for AWP Ht.________ Wt.________
Has the weight changed more than 10 pounds in the past year? Yes [ ] No [ ] If "Yes", give details in 30.
- -----------------------------------------------------------------------------------------------------------------------------------
24. Has the proposed insured or spouse ever smoked? a. Proposed Insured Yes [ ] No [ ] b. Spouse Yes [ ] No [ ]
If "Yes", give date(s) last smoked: Cigarettes Cigars Pipe
Proposed Insured Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
Spouse Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
- -----------------------------------------------------------------------------------------------------------------------------------
25. When was a doctor last consulted by: a. Proposed Insured? b. Spouse? c. Applicant for AWP?
Mo. 6 Yr. 82 Mo.______ Yr. ______ Mo.______ Yr. ______
- -----------------------------------------------------------------------------------------------------------------------------------
26. Is any person to be covered now being treated or taking medicine for any condition or disease ................. Yes [ ] No [X]
- -----------------------------------------------------------------------------------------------------------------------------------
27. Has any person to be covered ever:
Yes No
a. had any surgery or been advised to have surgery and has not done so?............................................... [ ] [X]
b. been in a hospital, sanitarium or other institution for observation, rest, diagnosis or treatment ................. [ ] [X]
c. regularly used or is any such person now using, barbiturates or amphetamines, marijuana or other hallucinatory
drugs, or heroin, opiates or other narcotics, except as prescribed by a doctor? ................................... [ ] [X]
d. been treated or counseled for alcoholism? ......................................................................... [ ] [X]
e. has life or health insurance declined, postponed, changed, rated-up or withdrawn? ................................. [ ] [X]
f. had life or health insurance canceled, or its renewal or reinstatement refused? ................................... [ ] [X]
- -----------------------------------------------------------------------------------------------------------------------------------
28. Other than as shown above, in the past 5 years has any person to be covered: Yes No
a. consulted or been attended or examined by any doctor or other practitioner? ...................................... [ ] [X]
b. had electrocardiograms, X-rays for diagnosis or treatment, or blood, urine, or other medical tests? .............. [ ] [X]
c. made claim for or received benefits, compensation, or a pension because of sickness or injury? ................... [ ] [X]
- -----------------------------------------------------------------------------------------------------------------------------------
29. Does any person to be covered now have a known sign of any physical disorder, disease or defect not shown above? Yes [ ] No [X]
- -----------------------------------------------------------------------------------------------------------------------------------
30. What are the full details of the answer to 25 and to each part of 23 and 26 thru 29 which is answered "Yes"?
Name & Full names and addresses of
Question No. Illness or other resason Dates and duration of illness doctors and hospitals
- -----------------------------------------------------------------------------------------------------------------------------------
JOHN #25 Cold and Sore Throat 6-82, 1 week Dr. W. Brown, Newark, N.J.
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
- -----------------------------------------------------------------------------------------------------------------------------------
Those who sign below, declare to the best of their knowledge and belief, that the statements in this application are complete and
true.
When the Company gives a Temporary Insurance Agreement form, ORD 84376A-82, of the same date as this Part 1, coverage will start as
shown in that form. Otherwise, no coverage will start unless: (1) a contract is issued, (2) it is accepted, and (3) the full first
premium is paid while all persons to be covered are living and their health remains as stated in Part 1. If all these take place,
coverage will start on the contract date. If the Company makes a change as indicated in 22 it will be approved by acceptance of the
contract. But where the law requires written consent for any change in the application, such a change can be made only if those
who sign this form approve the change in writing. No agent can make or change a contract, or waive any of the Company's rights or
needs.
OWNERSHIP: Unless otherwise asked for above, the owner of the contract will be (1) the applicant if other than the proposed Insured,
otherwise (2) the proposed Insured. But this is subject to any automatic transfer of owership stated in the contract.
Signature of Proposed Insured (If Age 8 or over)
JOHN DOE
----------------------------------------------------------------------
Dated at (Name of City & State) on Nov. 1, 1982 Signature of Applicant (If other than prposed Insured)
- ---------------------------------------------------
City/State ----------------------------------------------------------------------
Witness (If applicant is a firm or corporation, show that company's name)
JOHN ROE
- --------------------------------------------------- By
(Licensed agent must witness where required by law) ----------------------------------------------------------------------
(Signature and title of officer signing for that company)
ORD 84376-82 Page 2
</TABLE>
II-56
<PAGE>
No.
[ ] PRUCO LIFE INSURANCE COMPANY * XX XXX XXX
[ ] PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY *
* A Subsidiary of The Prudential Insurance Company of America
A Supplement to the Application for Life Insurance in which __ John Doe ______
is named as the proposed insured.
The person who signs below:
1. acknowledges receipt of the current prospectus, dated November 1, 1982
for the Variable Life Insurance contract:
2. UNDERSTANDS THAT THE DEATH BENEFIT (EXCEPT SUPPLEMENTARY BENEFITS) MAY
INCREASE OR DECREASE DEPENDING ON THE CONTRACT'S INVESTMENT RETURN BUT WILL
NEVER BE LESS THAN THE GUARANTEED MINIMUM, IF PREMIUMS ARE DULY PAID AND
THERE IS NO CONTRACT DEBT;
3. UNDERSTANDS THAT THE CASH VALUES MAY INCREASE OR DECREASE DEPENDING ON THE
CONTRACT'S INVESTMENT RETURN AND THAT THERE IS NO GUARANTEED MINIMUM CASH
VALUE:
4. believes that this contract will meet insurance needs and financial
objectives; and
5. requests that the net premium payments (as described in the prospectus) be
allocated to the Pruco Life Variable Insurance Account as follows:
Subaccount Allocation
---------- ----------
Money Market 40%
Common Stock 40%
Bond 20%
----
100%
+ If any portion of a net premium is allocated to a particular subaccount, that
portion must be at least 10% on the date the allocation takes effect. All
percentage allocations must be in whole numbers (e.g. 33% can be selected, but
33 1/3% cannot).
Date Signature of Applicant
November 15, 1982 JOHN DOE
PLI 49-42 Printed In U.S.A. By PROF
II-57
<PAGE>
ENDORSEMENTS
(Only we can endorse this contract.)
BASIS OF COMPUTATION
Mortality Tables Described.--Except as we state in the next paragraph. (1) we
base all net premiums and net values to which we refer in this contract on the
Insured's issue age and sex and on the length of time since the contract date;
(2) we use the Commissioners 1980 Standard Ordinary Mortality Table; and (3) we
use continuous functions based on age last birthday.
For extended insurance, we base net premiums and net values on the Commissioners
1980 Extended Term Insurance Table.
Interest Rate.--For all net premiums and net values to which we refer in this
contract we use an effective rate of 4% a year.
Exclusions.--When we compute net values we exclude the value of any
Supplementary Benefits and any other extra benefits added by rider to this
contract.
Values.--Tabular cash values at the end of each contract year are not less than
reserves determined according to the Commissioners Reserve Valuation Method
using the mortality tables and interest rate we describe above. There will be
the same exclusions.
Minimum Legal Values.--The cash, loan and other values in this contract are at
least as large as those set by law where it is delivered. Where required, we
have given the insurance regulator a detailed statement of how we compute values
and benefits.
Pruco Life Insurance Company,
By /s/ [SPECIMEN]
Secretary
PLIY 22--82
<TABLE>
CONTRACT SUMMARY (Continued from Page 2)
TABLE OF BASIC AMOUNTS
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
When the proceeds arise from the Insured's death:
- ------------------------------------------------------------------------------------------------------------------------------------
And The Contract Then The Basic And We Adjust The Basic
Is In Force: Amount Is: Amount For:
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
with no premium in the insurance amount contract debt (see
default past its (see page 8), plus page 13) and premium in
days of grace the amount of any default or paid (other
extra benefit arising than by a waiver benefit,
from the Insured's if any) past the date of
death death (see page 7).
- ------------------------------------------------------------------------------------------------------------------------------------
as reduced paid-up the amount of reduced contract debt since the
insurance (see page 11 paid-up insurance (see reduced paid-up insurance
page 11) began.
- ------------------------------------------------------------------------------------------------------------------------------------
as extended insurance the amount of term nothing.
(see page 11) insurance, if the
Insured dies in the
term (see page 11);
otherwise zero.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 19 (VL--83)
II-58
<PAGE>
GUIDE TO CONTENTS
PAGE
Contract Summary .......................................... 2
Table of Basic Amounts .................................. 19
Contract Data ............................................. 3
Rating Class; List of
Supplementary Benefits, if any:
Schedule of Premiums; Table of Net Premiums;
List of Subaccounts and Portfolios
Tabular Cash Values ....................................... 4
A table showing Cash Values
Table of Net Single Premiums .............................. 4A
General Provisions ........................................ 5
Definitions; The Contract; Contract
Modifications; Non-participating; Service
Office; Ownership and Control;
Suicide Exclusion; Currency; Misstatement
of Age or Sex; Incontestability; Assignment;
Annual Report; Payment of Death Claim
Beneficiary ............................................... 3 & 6
Premiums .................................................. 3 & 7
Payment of Premiums; Change of
Frequency; Grace Period; Premium
Adjustment
Reinstatement ............................................. 7
Insurance Provisions ...................................... 8
Insurance Amount; Variable Insurance
Amount; Variable Adjustment Amount
Separate Account .......................................... 8
The Account; Subaccounts;
The Fund; Account Investments; Change in
Investment Policy; Change of Fund
Investment Base and Return on Investment .................. 9
Investment Base; Base on Monthly Date;
Base on Other Dates: Assumed Rate
of Return;
Investment Base and Return on Investment .................. 9
(Continued)
Excess Investment Return;
Transfers Among Subaccounts
Contract Value Options .................................... 11
(Describes Nonforfeiture Benefits)
Benefit After the Grace Period;
Extended Insurance; Reduced Paid-up
Insurance; Computations; Automatic
Benefit; Optional Benefit; Cash Value
Option; Tabular Values
Loans ..................................................... 13
Loan Requirements; Contract Debt; Loan
Value; Interest Charge; Repayment; Effect
of a Loan; Excess Contract Debt; Payment of
Loan
Exchange of Contract ...................................... 14
Right to Exchange; Conditions;
Exchange Date; Contract Specifications;
Other Exchanges
Settlement Options ........................................ 15
Payee Defined; Choosing an Option;
Options Described; First Payment
Due Date; Residue Described; Income
Tables; Withdrawal of Residue;
Designating Contingent Payee(s);
Changing Options; Conditions;
Death of Payee
Automatic Mode of Settlement .............................. 18
Applicability; Interest on
Proceeds; Settlement at Payee's
Death; Spendthrift and Creditor
Basis of Computation ...................................... 19
Mortality Tables Described; Interest Rate;
Exclusions; Values;
Minimum Legal Values
Any Supplementary Benefits and a copy of the
application follow page 18.
Page 20
VARIABLE LIFE INSURANCE POLICY. INSURANCE PAYABLE ONLY UPON DEATH. FIXED
PREMIUMS PAYABLE DURING INSURED'S LIFETIME. BENEFITS REFLECT INVESTMENT RESULTS.
GUARANTEED MINIMUM DEATH BENEFIT IF PREMIUMS DULY PAID AND NO CONTRACT DEBT.
NON-PARTICIPATING.
VL--83 Printed in U.S.A.
II-59
Exhibit 1.A.(5)(b)
Illustrative Tabular Cash Values
MALE AGE 25
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $541.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 25.50
2 $ 400.50
3 $ 792.00
4 $ 1199.50
5 $ 1633.00
6 $ 2082.50
7 $ 2548.50
8 $ 3031.00
9 $ 3529.50
10 $ 4044.50
11 $ 4575.50
12 $ 5122.00
13 $ 5684.00
14 $ 6261.00
15 $ 6853.50
16 $ 7460.00
17 $ 8081.00
18 $ 8717.00
19 $ 9367.50
20 $10033.00
35 (AGE 60) $21616.50
40 (AGE 65) $25903.00
II-60
<PAGE>
MALE AGE 35
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $787.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 152.00
2 $ 720.00
3 $ 1303.50
4 $ 1902.00
5 $ 2552.00
6 $ 3217.50
7 $ 3899.00
8 $ 4596.50
9 $ 5310.00
10 $ 6040.00
11 $ 6786.00
12 $ 7548.50
13 $ 8327.50
14 $ 9124.00
15 $ 9936.50
16 $10765.00
17 $11608.00
18 $12463.50
19 $13330.00
20 $14207.00
25 (AGE 60) $18758.00
30 (AGE 65) $23476.00
II-61
<PAGE>
MALE AGE 40
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $944.00
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 210.50
2 $ 873.50
3 $ 1551.00
4 $ 2242.50
5 $ 3024.50
6 $ 3823.50
7 $ 4641.00
8 $ 5476.00
9 $ 6329.50
10 $ 7200.50
11 $ 8089.00
12 $ 8992.50
13 $ 9910.00
14 $10839.50
15 $11779.50
16 $12730.00
17 $13691.50
18 $14663.50
19 $15646.50
20 $16639.50
20 (AGE 60) $16639.50
25 (AGE 65) $21677.50
II-62
<PAGE>
MALE AGE 45
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $1,149.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 273.00
2 $ 1071.00
3 $ 1884.50
4 $ 2713.50
5 $ 3656.50
6 $ 4618.50
7 $ 5597.00
8 $ 6590.50
9 $ 7596.50
10 $ 8615.00
11 $ 9644.00
12 $10685.00
13 $11737.50
14 $12801.50
15 $13877.00
16 $14961.00
17 $16052.00
18 $17146.00
19 $18240.50
20 $19332.00
15 (AGE 60) $13877.00
20 (AGE 65) $19332.00
II-63
<PAGE>
MALE AGE 55
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $1,858.00
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 447.00
2 $ 1594.50
3 $ 2750.00
4 $ 3912.00
5 $ 5244.50
6 $ 6587.50
7 $ 7939.50
8 $ 9295.00
9 $10650.50
10 $12003.00
11 $13352.00
12 $14697.00
13 $16039.50
14 $17379.00
15 $18714.00
16 $20038.50
17 $21346.50
18 $22628.00
19 $23876.00
20 $25086.50
5 (AGE 60) $ 5244.50
10 (AGE 65) $12003.00
II-64
<PAGE>
FEMALE AGE 25
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $451.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 21.00
2 $ 340.00
3 $ 670.50
4 $ 1012.50
5 $ 1374.00
6 $ 1748.00
7 $ 2135.00
8 $ 2536.00
9 $ 2950.00
10 $ 3378.00
11 $ 3819.00
12 $ 4273.50
13 $ 4740.00
14 $ 5219.00
15 $ 5709.00
16 $ 6211.00
17 $ 6724.00
18 $ 7249.00
19 $ 7786.50
20 $ 8338.00
35 (AGE 60) $18379.50
40 (AGE 65) $22559.00
II-65
<PAGE>
FEMALE AGE 35
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $660.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 87.50
2 $ 563.00
3 $ 1051.50
4 $ 1552.50
5 $ 2081.50
6 $ 2623.00
7 $ 3176.50
8 $ 3743.00
9 $ 4323.50
10 $ 4918.50
11 $ 5528.00
12 $ 6153.00
13 $ 6794.00
14 $ 7450.50
15 $ 8123.00
16 $ 8811.00
17 $ 9514.50
18 $10233.00
19 $10966.50
20 $11715.00
25 (AGE 60) $15764.50
30 (AGE 65) $20289.50
II-66
<PAGE>
FEMALE AGE 40
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $778.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 127.50
2 $ 672.50
3 $ 1229.50
4 $ 1799.50
5 $ 2429.00
6 $ 3074.00
7 $ 3735.50
8 $ 4414.00
9 $ 5109.00
10 $ 5820.50
11 $ 6549.00
12 $ 7294.00
13 $ 8054.50
14 $ 8831.50
15 $ 9624.50
16 $10435.00
17 $11265.50
18 $12118.00
19 $12994.50
20 $13895.00
20 (AGE 60) $13895.00
25 (AGE 65) $18667.00
II-67
<PAGE>
FEMALE AGE 45
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $935.00
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 177.50
2 $ 826.00
3 $ 1489.50
4 $ 2168.50
5 $ 2926.50
6 $ 3702.50
7 $ 4496.50
8 $ 5307.00
9 $ 6134.50
10 $ 6979.50
11 $ 7843.50
12 $ 8728.00
13 $ 9636.50
14 $10570.50
15 $11530.00
16 $12513.50
17 $13518.50
18 $14539.50
19 $15572.00
20 $16614.50
15 (AGE 60) $11530.00
20 (AGE 65) $16614.50
II-68
<PAGE>
FEMALE AGE 55
FACE AMOUNT = $50,000 ANNUAL PREMIUM = $1,468.50
END OF POLICY YEAR TABULAR CASH VALUE
------------------ -------------------
1 $ 362.00
2 $ 1296.50
3 $ 2253.00
4 $ 3234.50
5 $ 4372.50
6 $ 5539.50
7 $ 6731.00
8 $ 7942.00
9 $ 9167.00
10 $10403.00
11 $11651.50
12 $12913.50
13 $14194.50
14 $15497.00
15 $16821.00
16 $18161.00
17 $19510.00
18 $20856.50
19 $22190.50
20 $23506.00
5 (AGE 60) $ 4372.50
10 (AGE 65) $10403.00
II-69
EXHIBIT 1.A.(5)(c)
ENDORSEMENTS
(Only we can endorse this contract.)
This endorsement is attached to and made a part of this contract on the contract
date:
This rider applies only if the Insured dies by suicide within two years from the
issue date and our liability is limited as we state for suicide in the General
Provisions. If this occurs, any provision for paid~up insurance on the life of
any other person who was, until the Insured died, insured under this contract
will not apply.
Instead, any such person will then have the right to buy a new contract of life
insurance either from us or from an affiliate of ours. The new contract will be
subject to conditions and charges that are then determined, in accord with
regular rules in effect at the time. Its amount will not be less than the
greater of (1) the amount of insurance on that person's life under this
contract, and (2) the lowest amount offered for the plan of insurance to be
provided by the new contract. And proof that the person is insurable will not be
required, unless the new contract is to provide either an increased amount of
insurance or a benefit that did not apply to that person under this contract.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
- ---------
PLY 5--82 Printed in U.S.A.
- ---------
II-70
EXHIBIT 1.A.(5)(d)
ENDORSEMENTS
(Only we can endorse this contract.)
This endoraement is attached to and made a part of this contract on the contract
date:
In this contract, we use the phrase the insured spouse. When we do, we mean the
Insured's spouse who is named for coverage in the request for change, even
though we state otherwise elsewhere in the contract. The request for change
resulted in our issuing the contract; it is attached to and made a part of the
contract.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
- ---------
PLY 6--82 Printed in U.S.A.
- ---------
II-71
EXHIBIT 1.A.(5)(e)
ENDORSEMENTS
(Only we can endorse this contract.)
This endorsement is attached to and made a part of this contract on the contract
date:
Beginning in 1986 you may be able to withdraw all or part of any existing
Variable Insurance Amount without surrendering the contract. The total death
benefit will be reduced by an amount equal to the amount of paid-up whole life
insurance which the sum withdrawn would have purchased at your attained age and
sex, on the date of the withdrawal. The guaranteed minimum death benefit will be
reduced such that the difference between the total death benefit and the
guaranteed minimum death benefit is the same percentage of cash value before and
after surrender.
The amount of cash withdrawn must be at least $500, and in multiples of $100 if
greater, unless it is used to pay premiums on this contract or on other
contracts with us.
You may make no more than two such withdrawals in a contract year without our
permission.
If you ask us in writing in a form that meets our needs, we will tell you:
1. Your Variable Insurance Amount;
2. The cash value of your Variable Insurance Amount;
3. The reduction in total death benefit and guaranteed minimum death
benefit if you withdraw your Variable Insurance Amount; and
4. The reduction in total death benefit and guaranteed minimum death
benefit if you withdraw a permitted amount of your choice which is
less than the entire cash value of the Variable Insurance Amount.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
- ----------
PLY 39--84 Printed in U.S.A.
- ----------
II-72
EXHIBIT 1.A.(5)(f)
ENDORSEMENTS
(Only we can endorse this contract.)
This endorsement is attached to and made a part of this contract on the contract
date:
Beginning in 1986 you may be able to withdraw all or part of any existing
Variable Insurance Amount without surrendering the contract. The total death
benefit will be reduced by an amount equal to the amount of paid-up whole life
insurance which the sum withdrawn would have purchased at your attained age and
sex, on the date of the withdrawal. The guaranteed minimum death benefit will be
reduced such that the difference between the total death benefit and the
guaranteed minimum death benefit is the same percentage of cash value before and
after surrender.
The amount of cash withdrawn must be at least $500, and in multiples of $100 if
greater, unless it is used to pay premiums on this contract or on other
contracts with us.
You may make no more than two such withdrawals in a contract year without our
permission.
If you ask us in writing in a form that meets our needs, we will tell you:
1. Your Variable Insurance Amount;
2. The cash value of your Variable Insurance Amount;
3. The reduction in total death benefit and guaranteed minimum death
benefit if you withdraw your Variable Insurance Amount; and
4. The reduction in total death benefit and guaranteed minimum death
benefit if you withdraw a permitted amount of your choice which is
less than the entire cash value of the Variable Insurance Amount.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
- -----------
PLIY 39--84 Printed in U.S.A.
- -----------
II-73
EXHIBIT 1.A(5)(g)
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
Newark, New Jersey
A Stock Company Subsidiary of The Prudential Insurance Company of America
- --------------------------------------------------------------------------------
Insured Policy Number
Contract Date
Face Amount
Premium Period
Agency
- --------------------------------------------------------------------------------
We will pay the beneficiary the proceeds of this contract promptly if we receive
due proof that the Insured died. We make this promise subject to all the
provisions of the contract.
The Death Benefit will be the insurance amount plus the amount of any extra
benefit if no premium is in default and if there is no contract debt. During the
first contract month, the insurance amount is the face amount we show above.
After that, it depends on the payment of premiums and on investment results. The
insurance amount may increase or decrease for any month as we state under
Insurance Provisions on page 8. But it will not be less than the face amount if
no premium is in default.
The net cash value may increase or decrease daily depending on the investment
experience of the separate account. There is no guaranteed minimum.
Premiums are fixed as to amount. They will not vary with investment results.
Please read this contract with care. A guide to its contents is on the last
page. A summary is on page 2. If there is ever a question about it, or if there
is a claim, just see one of our representatives or get in touch with one of our
offices.
Right to cancel Contract.--You may return this contract to us within (1) 10 days
after you get it, or (2) 45 days after Part 1 of the application was signed, or
(3) 10 days after we mail the Notice of Withdrawal Right, whichever is latest.
All you have to do is take the contract or mail it to one of our offices or to
the reoresentative who sold it to you. It will be canceled from the start and we
will give back your money promptly.
Signed for Pruco Life Insurance Company of New Jersey,
a New Jersey Corporation,
/s/ SPECIMEN /s/ SPECIMEN
Secretary President
Variable Life Insurance Policy. Insurance payable only upon death. Fixed
premiums payable during lnsured's lifetime. Benefits reflect investment results.
Guaranteed minimum death benefit if premiums duly paid and no contract debt.
Non-participating.
VL--83-Y
II-74
EXHIBIT 1.A.(5)(h)
ENDORSEMENTS
(Only we can endorse this contract.)
GENERAL PROVISIONS
DEFINITIONS.--We define here some of the words and phrases used all through this
contract. We explain others, not defined here, in other parts of the text.
WE, OUR, US AND COMPANY.--Pruco Life Insurance Company of New Jersey, a New
Jersey Corporation.
YOU AND YOUR.--The owner of the contract.
INSURED.--The person named as the Insured on the first page. He or she need not
be the owner.
EXAMPLE: Suppose we issue a contract on the life of your spouse. You applied for
it and named no one else as owner. Your spouse is the Insured and you are the
owner.
SEC.--The Securities and Exchange Commission.
ISSUE DATE.--The contract date.
MONTHLY DATE.--The date on which we compute variable insurance amounts. It
occurs on the contract date and on the same day as the contract date in each
later month.
EXAMPLE: If the contract date is March 9, 1986, the Monthly Dates are each March
9, April 9, May 9 and so on.
ANNIVERSARY OR CONTRACT ANNIVERSARY.--The same day and month as the contract
date in each later year.
EXAMPLE: If the contract date is March 9, 1986. the first anniversary is March
9, 1987. The second is March 9, 1988, and so on.
CONTRACT YEAR.--A year that starts on the contract date or on an anniversary.
EXAMPLE: If the contract date is March 9, 1986, the first contract year starts
then and ends on March 8, 1987. The second starts on March 9, 1987 and ends on
March 8, 1988, and so on.
CONTRACT MONTH.--A month that starts on a Monthly Date.
EXAMPLE: If March 9, 1986 is a Monthly Date, a contract month starts then and
ends on April 8, 1986. The next contract month starts on April 9,1986 and ends
on May 8, 1986, and so on.
ATTAINED AGE.--The Insured's attained age at any time is the issue age plus the
length of time since the contract date. You will find the issue age near the top
of page 3.
THE CONTRACT.--This policy and the application, a copy of which is attached,
form the whole contract. We assume that all statements in the application were
made to the best of the knowledge and belief of the person(s) who made them;
they are deemed to be representations and not warranties. We relied on those
statements when we issued the contract. We will not use any statement, unless
made in the application. to try to void the contract or to deny a claim.
CONTRACT MODIFICATIONS.--Only a Company officer may agree to modify this
contract, and then only in writing.
NON-PARTICIPATING.--This contract will not share in our profits or surplus
earnings. We will pay no dividends on it..
SERVICE OFFICE.--This is the office that will service this contract. Its mailing
address is the one we show on the Contract Data page, unless we notify you of
another one.
OWNERSHIP AND CONTROL.--Unless we endorse this contract to say otherwise: (1)
the owner of the contract is the Insured: and (2) while the Insured is living
the owner alone is entitled to (a) any contract benefit and value. and (b) the
exercise of any right and privilege granted by the contract or by us.
SUICIDE EXCLUSION.--If the Insured dies by suicide within two years from the
issue date, we will pay no more under this contract than the sum of the premiums
paid.
CURRENCY.--Any money we pay, or that is paid to us, must be in United States
currency. Any amount we owe will be payable at our Service Office.
(Continued on Next Page)
Page 5 (VL--83)-Y
II-75
EXHIBIT 1.A.(5)(i)
PREMIUM PAYMENT AND REINSTATEMENT
PAYMENT OF PREMIUMS.--The Schedule of Premiums shows the amounts of the
premiums, how often and when they must be paid. We tell you below how you may be
able to have them fall due either more or less often. Due dates occur only while
the Insured is living. The premium period. which we show on the first page,
starts on the contract date. Each premium is to be paid by its due date. It may
be paid at our Service Office or to any of our authorized representatives. If we
are asked to do so, we will give a signed receipt. A premium is in default if it
is not paid when it is due.
CHANGE OF FREQUENCY.--You may ask us in writing to have premiums fall due either
more or less often. If we agree, we will make the change and tell you what the
new premiums are and when they are due. The more often premiums are due, the
larger the total amount that will have to be paid for a contract year.
GRACE PERIOD.--We grant 31 days of grace for paying each premium except the
first one. If a premium has not been paid by its due date, the contract will
stay in force during its days of grace. If a premium has not been paid when its
days of grace are over, the contract will end and have no value, except as we
state under Contract Value Options. If a premium is paid during the grace
period, all benefits will be the same as they would have been if the premium had
been paid on its due date.
PREMIUM ADJUSTMENT.--The Insured might die while no premium is in default. If
so, we will make an adjustment so that the proceeds will include that part of
the last premium paid which is more than was needed to pay premiums through the
date of death. Or the Insured might die in the days of grace of a premium in
default. If so, the amount needed to pay premiums through the date of death is
due us. We will make an adjustment so that the proceeds will not include that
amount.
EXAMPLE: Suppose the contract date is in 1986. An annual premium of $400 due in
1988 is paid. The Insured dies nine months later. The proceeds will include
about $100 from the premium, since $300 was enough to pay premiums through the
date of death. The proceeds could include slightly more or less than $100 since
some months have more days than others.
This contract might have an extra benefit that insures someone other than the
Insured. And there might be a claim under that benefit while the Insured is
living and in the days of grace of a premium in default. In this case, we will
subtract any premium in default when we settle the claim.
REINSTATEMENT.--You may reinstate this contract after the days of grace of a
premium in default. All these conditions must be met:
1. Premium payment must not be in default more than three years.
2. You must not have surrendered the contract to us for its net cash value.
3. You must give us any facts we need to satisfy us that the Insured is
insurable for the contract.
4. We must be paid the larger of amounts (a) and (b), where (a) is equal to the
total of all premiums in arrears with compound interest at 6% a year, and (b) is
equal to the total premiums in arrears for any extra benefits with compound
interest at 6% a year, plus 110% of the difference between the net cash value
that would apply upon reinstatement and the net cash value that applied just
before reinstatement. When we compute the net cash value upon reinstatement, we
assume that each premium was paid when due and was allocated to subaccounts in
accord with your most recent request. We also assume that any loan continued to
bear interest, which was not paid when due, thus reducing the investment base in
accord with the Loans provision.
5. Any contract debt must be restored or paid back with interest to date at
5 1/2% a year. If that debt with interest would exceed the loan value of the
reinstated contract, the excess must be paid to us before reinstatement.
EXAMPLE: Suppose a premium due May 1st is not paid on time. The contract will
stay in force until June 1st whether the premium is paid or not. If the premium
is not paid by June 1st, you must meet all the above conditions if you want to
reinstate the contract.
After reinstatement, the contract will have the same investment base and the
same insurance amount as if no premium had been in default. We explain
investment base on page 9 and insurance amount on page 8.
Page 7 (VL--83)-N
II-76
EXHIBIT 1.A.(5)(j)
ENDORSEMENT
(Only we can endorse this contract.)
This endorsement is attached to and made a part of this contract on the contract
date.
ALTERATION OF TEXT
The section captioned "Excess Investment Return" on page 9 is amended to read as
follows.
EXCESS INVESTMENT RETURN.--The excess investment return for any period is equal
to:
1. the investment base at the end of the period; minus
2. what the investment base would have been at the end of the period if: (a) the
value of the assets in the subaccounts to which amounts are allocated had earned
interest at a rate equal to the assumed rate of return during the period; and
(b) we had made no charge for the mortality and expense risks described in item
4 under Base on Other Dates, or for federal or state income taxes; plus
3. an amount that we determine for this contract, which is the difference
between the guaranteed cost of mortality (see Mortality Tables Described on page
19) and any lower cost of mortality we set, based on the attained age and sex of
the Insured and the length of time the contract has been in force; this amount
will never be less than zero.
We set the cost of mortality based on our expectations as to future mortality
experience. At least once every five years, but no more often than once a year,
we will consider the need to change the cost of mortality. We will change it
only if we do so for all contracts like this one in force for the same length of
time as this one on Insureds of the same attained age and sex.
The excess investment return can be less than, equal to, or more than zero. If a
premium was paid and accepted under the terms of this contract, then for the
purpose of computing the excess investment return it will be deemed to have been
paid as of its due date.
Pruco Life Insurance Company of New Jersey,
By /s/ [SPECIMEN]
Secretary
- ----------
PLY 50--84
- ----------
II-77
EXHIBIT A(5)(k)
ENDORSEMENTS
(Only we can endorse this contract.)
This endorsement is attached to and made a part of this contract on the contract
date:
This endorsement applies only if the Insured dies by suicide within two years
from the issue date and our liability is limited as we state for suicide in the
General Provisions. If this occurs, any provision for paid-up insurance on the
life of any other person who was, until the Insured died, insured under this
contract will not apply.
Instead, any such person will then have the right to buy a new contract of life
insurance either from us or from an affiliate of ours. The new contract will be
subject to conditions and charges that are then determined, in accord with
regular rules in effect at the time. Its amount will not be less than the
greater of (1) the amount of insurance on that person's life under this
contract, and (2) the lowest amount offered for the plan of insurance to be
provided by the new contract. And proof that the person is insurable will not be
required, unless the new contract is to provide either an increased amount of
insurance or a benefit that did not apply to that person under this contract.
Pruco Life Insurance Company,
By /s ISABELLE L. KIRCHNER
Secretary
PLI 21--82
II-78
EXHIBIT 1.A.(5)(l)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provision of this policy entitled "Ownership and Control" is replaced
at issue by the following:
OWNERSHIP AND CONTROL.--Unless we endorse this contract to say otherwise, while
the Insured is living and less than 21 years of age the owner of the contract is
the applicant for it. But if the applicant is not living the owner, except as we
state below, is the beneficiary(ies) who at the time would be entitled to any
proceeds arising from the Insured's death. If there is no such beneficiary at
the time, the owner is the Insured. A beneficiary named by the Insured will not
replace the Insured as owner.
After the Insured is 21 years of age, the owner is the Insured.
While the Insured is living the owner alone is entitled to any contract benefit
and value, and to the exercise of any right and privilege granted by the
contract or by us. This includes, but is not limited to, these rights: (1) to
assign the contract; and (2) to change any subsequent owner. A request for such
a change must be in writing to us at our Service Office and in a form which
meets our needs. The change will take effect only when we endorse the contract
to show it.
If the owner is the Insured, but he or she (1) is not able, due to age, to
exercise rights, and (2) has no legal guardian to do so, we have the right to
let a person who appears to us to be responsible for the Insured's support or
welfare, act for the Insured. We will not do so unless the action appears to us
to be for the Insured's benefit.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
- -----------
PLIY 38--84
- -----------
Printed in U.S.A.
II-79
EXHIBIT 1.A.(5)(m)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provision of this policy entitled "CONTRACT VALUE OPTIONS" is replaced at
issue by the following:
BENEFIT AFTER THE GRACE PERIOD.--If a premium is in default past its days of
grace and if the net cash value (which we describe under Cash Value Option) is
more than zero, we will use that value to keep the contract in force as one of
three kinds of insurance. One kind is extended insurance; another kind is
reduced paid-up insurance; and the third kind is variable reduced paid-up
insurance. We describe them below. You will find under Automatic Benefit which
kind it will be. Any extra benefit(s) will, of course, end as soon as a premium
is in default past its days of grace unless the form that describes it states
otherwise.
EXTENDED INSURANCE.--This will be term insurance on the Insured's life. We will
pay the amount of term insurance if the Insured dies in the term we describe
below. Before the end of the term there will be cash values but no loan value.
The amount of term insurance will be equal to the insurance amount on the due
date of the premium in default, minus any contract debt. The amount of the
insurance will not vary. The term is a period of time that will start on the due
date of the premium in default. The length of the term will be what is provided
when we use the net cash value as a net single premium for extended term
insurance. The length of the term will depend on the net cash value, the amount
of insurance, the Insured's issue age and sex, and on the length of time since
the contract date. (The net single premiums that we refer to here are not those
we show on the Contract Data page(s). The ones we show there are used to compute
the variable insurance amount.)
Example: Suppose the face amount is $50,000. On the day a premium is due, the
variable insurance amount is $5,140. There is contract debt of $1,300. If the
premium due is not paid at the end of its days of grace, the amount of term
insurance will be $53,840. This comes from the insurance amount of $55,140 (the
face amount of $50,000 plus the variable insurance amount $5,140) minus the
$1,300 contract debt. The term insurance will last as long as the net cash value
will provide it.
There may be extra days of term insurance. This will occur if, on the due date
of the premium in default, the term of extended insurance provided by the net
cash value does not exceed 90 days, or the number of days for which premiums
have been paid, if less. The number of extra days will be (1) 90, or the number
of days for which premiums have been paid, if less, minus (2) the number of days
of extended insurance that would be provided by the net cash value, if there
were no contract debt. The extra days, if any, start on the day after the last
day of term insurance provided by the net cash value, if any. If there is no
such term insurance, they start on the due date of the premium in default. The
term insurance for the extra days has no cash value. There will be no extra days
if you replace the extended insurance with reduced paid-up insurance or variable
reduced paid-up insurance or if you surrender the contract before the extra days
start.
REDUCED PAID-UP INSURANCE.--This will be paid-up life insurance on the Insured's
life. We will pay the amount of this insurance when the Insured dies. There will
be cash values and loan values. The amount of this insurance will be what is
provided when we use the net cash value at the net single premium rate. This
rate depends on the Insured's issue age and sex and on the length of time since
the contract date. The amount of this insurance will not vary.
VARIABLE REDUCED PAID-UP INSURANCE.--This will be paid-up variable life
insurance on the Insured's life. The death benefit may change from day to day,
as we explain below, but if there is no contract debt, it will not be less than
a minimum guaranteed amount determined as of the day when the contract went into
default. There will be cash values and loan values.
The minimum guaranteed amount of insurance will be computed by using the net
cash value at the net single premium rate. The net single premium rate depends
on the Insured's issue age and sex and on the length of time since the contract
date. The amount payable in event of death thereafter will be the greater of (a)
the minimum guaranteed amount and (b) the investment base divided by the net
single premium at the Insured's attained age. In either case the amount will be
adjusted for any contract debt.
Except when it is provided as the automatic benefit, (see below) the Variable
Reduced Paid Up Insurance Option will be available only when the guaranteed
death benefit under the option will be $5,000 or more.
(Continued on Next Page)
- ----------
PLIY 62--85
- ----------
II-80
<PAGE>
ALTERATION OF TEXT (Continued)
COMPUTATIONS.--We will make all computations for any of these benefits as of the
due date of the premium in default. But we will consider any loan you take out
or pay back in the days of grace of that premium.
AUTOMATIC BENEFIT.--When a premium is in default past its days of grace, the
contract will stay in force as extended insurance. But it will stay in force as
variable reduced paid-up insurance if either of these statements applies: (1) We
issued the contract in a rating class for which we do not provide extended
insurance; in this case the phrase No Extended Insurance is in the Rating Class
on page 3. (2) The amount of variable reduced paid-up insurance would be at
least as great as the amount of extended insurance.
OPTIONAL BENEFIT.--You may choose to replace any extended insurance that has a
cash value by either variable reduced paid-up insurance or reduced paid-up
insurance. To make this choice, you must do so in writing to us and in a form
that meets our needs, not more than three months after the due date of the
premium in default. You must also send the contract to us to be endorsed.
CASH VALUE OPTION.--You may surrender this contract for its net cash value, if
this value is more than zero. If this value is less than zero, the proceeds on
surrender will be equal to zero. To do so, you must ask us in writing and in a
form that meets our needs. You must also send the contract to us. Here is how we
will compute the net cash value:
1. On a Monthly Date if no premium is in default: The net cash value on a
Monthly Date will be equal to (a) the tabular cash value on that date; plus (b)
the net single premium at the Insured's then attained age for the variable
insurance amount that applies on that date; minus (c) if that date is a premium
due date, and the premium has not been paid, the net premium that applies on
that date; minus (d) any contract debt; minus (e) in the first contract year,
any issue charge instalments that have not yet been paid. The amount of (b) will
be less than zero if the variable insurance amount is less than zero.
2. On any other date if no premium is in default: The net cash value on a date
other than a Monthly Date will be equal to (a) the tabular cash value on that
date; plus (b) the net single premium at the Insured's then attained age for the
variable insurance amount that applies on that date; plus (c) the excess
investment return since the last Monthly Date; minus (d) any contract debt;
minus (e) in the first contract year, any issue charge instalments that have not
yet been paid. The amount of (b} will be less than zero if the variable
insurance amount is less than zero.
3. During the days of grace of a premium in default: The net cash value on any
date will be the net cash value as of the due date of the first unpaid premium
plus the excess investment return since that due date. But we will adjust this
value for any loan you took out or paid back since that due date.
4. After the days of grace of a premium in default: The net cash value as of any
date will be the net value on that date of whichever of these benefits is then
in force: extended insurance; reduced paid-up insurance; or variable reduced
paid-up insurance, less any contract debt. However, within 30 days after an
anniversary, the net cash value will not be less than it was on that
anniversary. We will, of course, adjust it for any loan you took out or paid
back since that anniversary.
If the due date of a paid premium is on or after the date a contract value
option takes effect, we will pay that premium to you in cash.
If all due premiums have been paid, or during the days of grace of a premium in
default, or If the contract is in force as variable reduced paid-up insurance,
we will usually pay any cash value within 7 days after we receive your request
and the contract at our Service Office. But we have the right to defer payment
if (1) the New York Stock Exchange is closed; or (2) the SEC requires that
trading be restricted or declares an emergency; or (3) the SEC lets us defer
payments to protect our contract owners.
If a premium is in default past its days of grace, we have the right to
postpone paying a cash value for up to six months. If we do so for more than 30
days, we will pay interest at the rate of 3% a year.
TABULAR VALUES.--ln the table on page 4 we show tabular values at the ends of
contract years. The tabular value at the beginning of the first contract year is
the net premium then due. If we need to compute tabular values at some time
during a contract year, we will count the time since the start of the year and
any premiums paid for the year. We will let you know the tabular values for
other durations if you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
- ----------
PLIY 62--85
- ----------
II-81
EXHIBIT 1.A.(5)(n)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provision of this policy entitled "CONTRACT VALUE OPTIONS" is replaced at
issue by the following:
BENEFIT AFTER THE GRACE PERIOD.--If a premium is in default past its days of
grace and if the net cash value (which we describe under Cash Value Option) is
more than zero, we will use that value to keep the contract in force as one of
three kinds of insurance. One kind is extended insurance; another kind is
reduced paid-up insurance; and the third kind is variable reduced paid-up
insurance. We describe them below. You will find under Automatic Benefit which
kind it will be. Any extra benefit(s) will, of course, end as soon as a premium
is in default past its days of grace unless the form that describes it states
otherwise.
EXTENDED INSURANCE.--This will be term insurance on the Insured's life. We will
pay the amount of term insurance if the Insured dies in the term we describe
below. Before the end of the term there will be cash values but no loan value.
The amount of term insurance will be equal to the insurance amount on the due
date of the premium in default, minus any contract debt. The amount of the
insurance will not vary. The term is a period of time that will start on the due
date of the premium in default. The length of the term will be what is provided
when we use the net cash value as a net single premium for extended term
insurance. The length of the term will depend on the net cash value, the amount
of insurance, the Insured's issue age and sex, and on the length of time since
the contract date. (The net single premiums that we refer to here are not those
we show on the Contract Data page(s). The ones we show there are used to compute
the variable insurance amount.)
Example: Suppose the face amount is $50,000. On the day a premium is due, the
variable insurance amount is $5,140. There is contract debt of $1,300. If the
premium due is not paid at the end of its days of grace, the amount of term
insurance will be $53,840. This comes from the insurance amount of $55,140 (the
face amount of $50,000 plus the variable insurance amount $5,140) minus the
$1,300 contract debt. The term insurance will last as long as the net cash value
will provide it.
There may be extra days of term insurance. This will occur if, on the due date
of the premium in default, the term of extended insurance provided by the net
cash value does not exceed 90 days, or the number of days for which premiums
have been paid, if less. The number of extra days will be (1) 90, or the number
of days for which premiums have been paid, if less, minus (2) the number of days
of extended insurance that would be provided by the net cash value, if there
were no contract debt. The extra days, if any, start on the day after the last
day of term insurance provided by the net cash value, if any. If there is no
such term insurance, they start on the due date of the premium in default. The
term insurance for the extra days has no cash value. There will be no extra days
if you replace the extended insurance with reduced paid-up insurance or variable
reduced paid-up insurance or if you surrender the contract before the extra days
start.
REDUCED PAID-UP INSURANCE.--This will be paid-up life insurance on the Insured's
life. We will pay the amount of this insurance when the Insured dies. There will
be cash values and loan values. The amount of this insurance will be what is
provided when we use the net cash value at the net single premium rate. This
rate depends on the Insured's issue age and sex and on the length of time since
the contract date. The amount of this insurance will not vary.
VARIABLE REDUCED PAID-UP INSURANCE.--This will be paid-up variable life
insurance on the Insured's life. The death benefit may change from day to day,
as we explain below, but if there is no contract debt, it will not be less than
a minimum guaranteed amount determined as of the day when the contract went into
default. There will be cash values and loan values.
The minimum guaranteed amount of insurance will be computed by using the net
cash value at the net single premium rate. The net single premium rate depends
on the Insured's issue age and sex and on the length of time since the contract
date. The amount payable in event of death thereafter will be the greater of (a)
the minimum guaranteed amount and (b) the investment base divided by the net
single premium at the Insured's attained age. In either case the amount will be
adjusted for any contract debt.
Except when it is provided as the automatic benefit, (see below) the Variable
Reduced Paid Up Insurance Option will be available only when the guaranteed
death benefit under the option will be $5,000 or more.
(Continued on Next Page)
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PLY 61--85
- ----------
II-82
<PAGE>
ALTERATION OF TEXT (Continued)
COMPUTATIONS.--We will make all computations for any of these benefits as of the
due date of the premium in default. But we will consider any loan you take out
or pay back in the days of grace of that premium.
AUTOMATIC BENEFIT.--When a premium is in default past its days of grace, the
contract will stay in force as extended insurance. But it will stay in force as
variable reduced paid-up insurance if either of these statements applies: (1) We
issued the contract in a rating class for which we do not provide extended
insurance; in this case the phrase No Extended Insurance is in the Rating Class
on page 3. (2) The amount of variable reduced paid-up insurance would be at
least as great as the amount of extended insurance.
OPTIONAL BENEFIT.--You may choose to replace any extended insurance that has a
cash value by either variable reduced paid-up insurance or reduced paid-up
insurance. To make this choice, you must do so in writing to us and in a form
that meets our needs, not more than three months after the due date of the
premium in default. You must also send the contract to us to be endorsed.
CASH VALUE OPTION.--You may surrender this contract for its net cash value, if
this value is more than zero. If this value is less than zero, the proceeds on
surrender will be equal to zero. To do so, you must ask us in writing and in a
form that meets our needs. You must also send the contract to us. Here is how we
will compute the net cash value:
1. On a Monthly Date if no premium is in default: The net cash value on a
Monthly Date will be equal to (a) the tabular cash value on that date; plus (b)
the net single premium at the Insured's then attained age for the variable
insurance amount that applies on that date; minus (c) if that date is a premium
due date, and the premium has not been paid, the net premium that applies on
that date; minus (d) any contract debt; minus (e) in the first contract year,
any issue charge instalments that have not yet been paid. The amount of (b) will
be less than zero if the variable insurance amount is less than zero.
2. On any other date if no premium is in default: The net cash value on a date
other than a Monthly Date will be equal to (a) the tabular cash value on that
date; plus (b) the net single premium at the Insured's then attained age for the
variable insurance amount that applies on that date; plus (c) the excess
investment return since the last Monthly Date; minus (d) any contract debt;
minus (e) in the first contract year, any issue charge instalments that have not
yet been paid. The amount of (b) will be less than zero if the variable
insurance amount is less than zero.
3. During the days of grace of a premium in default: The net cash value on any
date will be the net cash value as of the due date of the first unpaid premium
plus the excess investment return since that due date. But we will adjust this
value for any loan you took out or paid back since that due date.
4. After the days of grace of a premium in default: The net cash value as of any
date will be the net value on that date of whichever of these benefits is then
in force: extended insurance; reduced paid-up insurance; or variable reduced
paid-up insurance, less any contract debt. However, within 30 days after an
anniversary, the net cash value will not be less than it was on that
anniversary. We will, of course, adjust it for any loan you took out or paid
back since that anniversary.
If the due date of a paid premium is on or after the date a contract value
option takes effect, we will pay that premium to you in cash.
If all due premiums have been paid, or during the days of grace of a premium in
default, or if the contract is in force as variable reduced paid-up insurance,
we will usually pay any cash value within 7 days after we receive your request
and the contract at our Service Office. But we have the right to defer payment
if (1) the New York Stock Exchange is closed; or (2) the SEC requires that
trading be restricted or declares an emergency; or (3) the SEC lets us defer
payments to protect our contract owners.
If a premium is in default past its days of grace, we have the right to postpone
paying a cash value for up to six months. If we do so for more than 30 days, we
will pay interest at the rate of 3% a year.
TABULAR VALUES.--In the table on page 4 we show tabular values at the ends of
contract years. The tabular value at the beginning of the first contract year is
the net premium then due. If we need to compute tabular values at some time
during a contract year, we will count the time since the start of the year and
any premiums paid for the year. We will let you know the tabular values for
other durations if you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
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PLY 61--85
- ----------
II-83
<TABLE>
<CAPTION>
EXHIBIT 1.A.(10)(a)
<S> <C>
- ----------------------------------------------------===============================================================================
Part 1 Application for Life Insurance to
[Prudential LOGO] [ ] The Prudential Insurance Company of America
[ ] Pruco Life Insurance Company
A Subsidiary of The Prudential Insurance Company of America
No.
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1a. Proposed Insured's name--first, initial, last (Print) 1b. Sex 2a. Date of birth 2b. Age 2c. Place of birth
M F Mo. Day Yr.
[ ] [ ]
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3. [ ] Single [ ] Married [ ] Widowed [ ] Separated [ ] Divorced 4. Social Security No. / /
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5a. Occupation(s) 5b. Duties
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6. Address for mail No. Street City State Zip
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7a. Kind of policy 7b. Initial amount 8. Accidental death coverage
$ initial amount
If a Variable contract is applied for complete appropriate suitability form. $
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9. Beneficiary: (Include name, age and relationship.) 10. List all life insurance on proposed Insured. Check here if None [ ]
a. Primary (Class 1): Company Initial Yr. Kind Medical
amt. issued (Indiv., Group) Yes No
______________________________________ [ ] [ ]
________________________________________________________________________
_______________________________________________________ [ ] [ ]
________________________________________________________________________
b. Contingent (Class 2) if any: [ ] [ ]
________________________________________________________________________
____________________________________________________ [ ] [ ]
________________________________________________________________________
[ ] [ ]
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11. Other person(s) proposed for coverage including the Applicant for Applicant's Waiver of Premium benefit (AWP)
Relationship to Date of birth Total life insurance
Name--first, initial, last Sex proposed Insured Mo. Day Yr. Age Place of birth in all companies
a. Spouse $
___________________________________________________________________________________________________________________________________
b. $
___________________________________________________________________________________________________________________________________
c. $
___________________________________________________________________________________________________________________________________
d. $
___________________________________________________________________________________________________________________________________
e. $
___________________________________________________________________________________________________________________________________
f. $
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12. Supplementary benefits and riders: a. For proposed Insured b. For spouse, children, Applicant for AWP
Type and duration of benefit Amount Type and duration of benefit Amount
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
[ ] Option to Purchase Additional Ins. $ [ ] Applicant's Waiver of Premium benefit
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13. State any special request.
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14. Has any person named in 1a or 11, within the last 12 months:
a. been treated by a doctor for or had a known heart attack, stroke or cancer (including melanoma) other Yes No
than of the skin? ............................................................................................. [ ] [ ]
b. had an electrocardiogram for any physical complaint, or taken medication for high blood pressure? ............. [ ] [ ]
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15. Premium payable [ ] Ann. [ ] Semi-Ann. [ ] Quar. [ ] Mon. [ ] Pay. Budg. [ ] Pru-Matic [ ] Gov't. Allot.
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16. Amount paid $ [ ] None (Must be "None" if either 14a or b is answered "Yes".)
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17. Is a medical examination to be made on: Yes No
a. the proposed Insured? ......................................................................................... [ ] [ ]
b. spouse (if proposed for coverage)? ............................................................................ [ ] [ ]
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18. If 17a or b is "Yes", is it agreed that no insurance will take effect on anyone proposed for coverage until Yes No
the person(s) indicated in 17 have been examined, even if 16 shows that an amount has been paid? ................. [ ] [ ]
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ORD 84376-86 Page 1 (Continued on page 2)
</TABLE>
II-84
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
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Continuation of Part 1 of Application
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19. Will this insurance replace or change any existing insurance or annuity in any company on any person named Yes No
in 1a or 11? If "Yes", give their names, name of company, plan, amount, policy numbers and enclose any [ ] [ ]
required state replacement form(s).
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20. Is anyone applying for, or trying to reinstate, life or health insurance on any person named in 1a or 11 in Yes No
this or any company? If "Yes", give amount, details and company. [ ] [ ]
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21. Does any person named in 1a or 11 plan to live or travel outside the United States and Canada within the Yes No
next 12 months? If "Yes", give country(ies), purpose and duration of trip. [ ] [ ]
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22. Has any person named in 1a or 11 operated or had any duties aboard an aircraft, glider, balloon, or like Yes No
device, within the last 2 years, or does any such person have any plans to do so in the future? If "Yes", [ ] [ ]
complete Aviation Questionnaire.
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23. Has any person named in 1a or 11 engaged in hazardous sports such as: auto, motorcycle or power boat Yes No
sports; bobsledding, scuba or skin diving; mountain climbing; parachuting or sky diving; snowmobile [ ] [ ]
racing or any other hazardous sport or hobby within the last 2 years or does any such person plan to
do so in the future? If "Yes", complete Avocation Questionnaire.
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24. Has any person (age 15 or over) named in 1a or 11 in the last 3 years: Yes No
a. had a driver's license denied, suspended or revoked? ......................................................... [ ] [ ]
b. been convicted of three or more moving violations of any motor vehicle law or of driving while under
the influence of alcohol or drugs? ........................................................................... [ ] [ ]
c. been involved as a driver in 2 or more auto accidents? ....................................................... [ ] [ ]
If "Yes", give name, driver's license number and state of issue, type of violation and reason for license
denial, suspension or revocation.
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25. a. Has the proposed Insured smoked cigarettes within the past twelve months? .............................. Yes [ ] No [ ]
b. Has the spouse (if proposed for coverage) smoked cigarettes within the past twelve months? ............. Yes [ ] No [ ]
c. If the proposed Insured or spouse has ever smoked cigarettes, cigars or a pipe, show date(s) last smoked:
Cigarettes Cigars Pipe
Proposed Insured Mo. _______ Yr. _______ Mo. _______ Yr. _______ Mo._______ Yr. _______
Spouse Mo. _______ Yr. _______ Mo. _______ Yr. _______ Mo._______ Yr. _______
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26. Changes made by the Company. (Not applicable in West Virginia)
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To the best of the knowledge and belief of those who sign below, the statements in this application are complete and true. It
is understood that, if any of the above statements (for example, the smoking data) is a material misrepresentation, coverage
could be invalidated as a result. The beneficiary named in the application is for insurance payable upon death of (1) the Insured,
and (2) an insured child after the death of the Insured if there is no insured spouse.
When the Company gives a Limited Insurance Agreement form, ORD 84376A-86, of the same date as this Part 1, coverage will start as
shown in that form. Otherwise, no coverage will start unless: (1) a contract is issued, (2) it is accepted, and (3) the full first
premium is paid while all persons to be covered are living and their health remains as stated in Parts 1 and 2. If all these take
place, coverage will start on the contract date. If the Company makes a change as indicated in 26 it will be approved by acceptance
of the contract. But where the law requires written consent for any change in the application, such change can be made only if those
who sign this form approve the change in writing. No agent can make or change a contract, or waive any of the Company's rights or
needs.
Ownership: Unless otherwise asked for above, the owner of the contract will be (1) the applicant if other than the proposed Insured,
otherwise (2) the proposed Insured. But this is subject to any automatic transfer of ownership stated in the contract.
--------------------------------------------------------------------
Signature of Proposed Insured (If age 8 or over)
Dated at on , 19
- ----------------------------------------------------------- --------------------------------------------------------------------
(City/State) Signature of Applicant (If other than proposed Insured --
If applicant is a firm or corporation, show that company's name
Witness By
- ----------------------------------------------------------- --------------------------------------------------------------------
(Licensed agent must witness where required by law) (Signature and title of officer signing for that company)
- -----------------------------------------------------------------------------------------------------------------------------------
ORD 84376-86 Page 2
</TABLE>
II-85
<PAGE>
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Part 2 of Application--Complete on persons indicated if anyone named in 1a & 11 of Part 1 is eligible on a non-medical basis.
- -----------------------------------------------------------------------------------------------------------------------------------
Complete 1 only on Proposed Insured's family 2. Height and weight of:
1. Family Living Dead a. Proposed Insured Ht. __________ Wt. __________
Record (give age) Cause of Death Age Year b. Spouse Ht. __________ Wt. __________
c. Applicant for AWP Ht. __________ Wt. __________
Father
- --------------------------------------------------------------- Has the weight changed more than 10 pounds in the past year
Mother on any person proposed for coverage? Yes [ ] No [ ] (If "Yes",
- --------------------------------------------------------------- give name and reason for change)
Brothers -------------------------------------------------
- ---------------------------------------------------------------
Sisters -------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
3. When was a doctor last consulted by: a. Proposed Insured? b. Spouse? c. Applicant for AWP?
(Give details in 10.) Mo. _____ Yr. _____ Mo. _____ Yr. _____ Mo. _____ Yr. _____
- -----------------------------------------------------------------------------------------------------------------------------------
4. Is any person to be covered now being treated or taking medicine for any condition or disease? ............. Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
5. Has any person to be covered ever: Yes No
a. had any surgery or been advised to have surgery and has not done so? ............................................ [ ] [ ]
b. been in a hospital, sanitarium or other institution for observation, rest, diagnosis or treatment? .............. [ ] [ ]
c. used or is any such person now using valium or other tranquilizers; barbiturates or other sedatives; marijuana,
cocaine, hallucinogens or other mood-altering drugs; heroin, methadone or other narcotics; amphetamines or
other stimulants; or any other narcotics or controlled substances, except as legally prescribed by a doctor? .... [ ] [ ]
d. been treated or counseled for alcoholism or other drug dependency? .............................................. [ ] [ ]
e. had life or health insurance declined, postponed, changed, rated-up or withdrawn? ............................... [ ] [ ]
f. had life or health insurance canceled, or its renewal or reinstatement refused? ................................. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
6. Has any person to be covered ever been treated by a doctor for or had any known sign of:
Yes No Yes No
a. high blood pressure? ................... [ ] [ ] d. asthma, emphysema or tuberculosis? ....................... [ ] [ ]
b. chest pain, pressure or discomfort? .... [ ] [ ] e. tumor, cancer, leukemia, diabetes or syphillis? .......... [ ] [ ]
c. heart murmur or rheumatic fever? ....... [ ] [ ] f. nervous trouble, convulsions, epilepsy or mental disorder? [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
7. Other than as shown above, has any person to be covered ever been treated by a doctor for or had any known sign of a disease
or disorder of the: Yes No Yes No
a. heart, arteries or veins? .............. [ ] [ ] e. kidney, bladder, genital organs or urinary tract? ........ [ ] [ ]
b. lungs, chest or throat? ................ [ ] [ ] f. liver, gallbladder, stomach, intestines or rectum? ....... [ ] [ ]
c. brain or nervous system? ............... [ ] [ ] g. blood, glands or skin? ................................... [ ] [ ]
d. spine, joints, skull or other bones? ... [ ] [ ] h. ears, eyes, nose or sinuses? ............................. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
8. Other than as shown above, in the past 5 years has any person to be covered: Yes No
a. consulted or been attended or examined by any doctor or other practitioner? ...................................... [ ] [ ]
b. had electrocardiograms, X-rays for diagnosis or treatment, or blood, urine, or other medical tests? .............. [ ] [ ]
c. made claim for or received benefits, compensation, or a pension because of sickness or injury? ................... [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
9. Does any person to be covered now have a known sign of any physical disorder, disease or defect not shown above? Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
10. What are the full details of the answer to 3 and to each part of 4 thru 9 which is answered "Yes"?
Name & Illness, operation or other reason. Reason for any Dates and Full names and addresses
Question No. check-up, doctor's advice, treatment and medication. duration of illness of doctors and hospitals
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
- -----------------------------------------------------------------------------------------------------------------------------------
To the best of my knowledge and belief the above statements are complete and true. It is understood that, if any of the above
statements is a material misrepresentation, coverage should be invalidated as a result.
, 19
- --------------------- ------------------------------------ -------------------------------------------------------------------
Date Witness Signature of Proposed Insured (If age 15 or over) otherwise Applicant
- -----------------------------------------------------------------------------------------------------------------------------------
ORD 84376-86 Page 3
</TABLE>
II-86
EXHIBIT 1.A.(10)(b)
The Prudential Insurance Company of America No. XX XXX XXX
A Supplement to the Life Insurance Application for a variable contract in which
John Doe is named as the proposed Insured.
- --------------------------------------------------------------------------------
I BELIEVE THIS CONTRACT MEETS MY INSURANCE NEEDS AND FINANCIAL OBJECTIVES. I
ACKNOWLEDGE RECEIPT OF A CURRENT PROSPECTUS FOR THE CONTRACT. I UNDERSTAND THAT
THE CONTRACT'S VALUE AND DEATH BENEFIT MAY VARY DEPENDING ON THE CONTRACT'S
INVESTMENT EXPERIENCE............................................YES [X] NO [ ]
Date Signature of Applicant
Aug 3, 1987 /s/ JOHN DOE
- --------------
ORD. 86218--83
- --------------
II--87
EXHIBIT 1.A.(10)(c)
<TABLE>
<CAPTION>
<S> <C>
Part 1 Application to: [ ] The Prudential Insurance Company of America No.
[ ] Pruco Life Insurance Company of New Jersey
A Subsidiary of The Prudential Insurance Company of America
- -----------------------------------------------------------------------------------------------------------------------------------
1a. Proposed Insured's name -- first, initial, last (Print) 1b. Sex 2a. Date of birth 2b. Age 2c. Place of birth
Mo. Day Yr.
[ ]M [ ]F
- -----------------------------------------------------------------------------------------------------------------------------------
3. [ ] Single [ ] Married [ ] Widowed [ ] Separated [ ] Divorced 4. Occupation(s)
- -----------------------------------------------------------------------------------------------------------------------------------
5. Address for mail No. Street City State Zip
- -----------------------------------------------------------------------------------------------------------------------------------
6a. Kind of policy 6b. Initial amount 7. Accidental death coverage
$ initial amount $
- -----------------------------------------------------------------------------------------------------------------------------------
8. Beneficiary: (name age and relationship) 9. List all life insurance, annuities and vanable contracts on
a. Primary (Class 1): ________________________________ proposed Insured. (If NONE, so state.)
___________________________________________________ Initial Yr. Kind Medical
___________________________________________________ Company amt. issued (Indiv., Group) Yes No
______________________________________________________ [ ] [ ]
b. Contingent (Class 2) if any: ___________________________________________________________________
___________________________________________________ [ ] [ ]
___________________________________________________ ___________________________________________________________________
[ ] [ ]
___________________________________________________________________
[ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
10. Other person(s) proposed for coverage including the Applicant for Applicant's Waiver of Premium benefit (AWP)
Relationship to Date of birth Total life insurance
Name--first, initial, last Sex proposed Insured Mo. Day Yr. Age Place of birth in all companies
a. Spouse $
___________________________________________________________________________________________________________________________________
b. $
___________________________________________________________________________________________________________________________________
c. $
___________________________________________________________________________________________________________________________________
d. $
___________________________________________________________________________________________________________________________________
e. $
___________________________________________________________________________________________________________________________________
f. $
- -----------------------------------------------------------------------------------------------------------------------------------
11. Supplementary benefits: a. For proposed Insured b. For spouse, children, Applicant for AWP
Type and duration of benefit Amount Type and duration of benefit Amount
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
[ ] Option to Purchase Additional Ins. $ [ ] Applicant's Waiver of Premium benefit
- -----------------------------------------------------------------------------------------------------------------------------------
12. State any special request.
- -----------------------------------------------------------------------------------------------------------------------------------
13. Will this insurance replace or change any existing insurance or annuity in any company on any person named Yes No
in 1a or 10? If "Yes", give their names, name of company, plan, amount and policy numbers. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
14. Is anyone applying for, or trying to reinstate, life or health insurance on any person named in 1a or 10 in Yes No
this or any company? If "Yes", give amount, details and company. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
15. Does any person named in 1a or 10 plan to live or travel outside the United States and Canada within the next Yes No
12 months? If "Yes", give details. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
16. Has any person named in 1a or 10 operated or had any duties aboard an aircraft, glider, balloon, or like Yes No
device, within the last 2 years, or does any such person have any plans to do so in the future? If "Yes", [ ] [ ]
complete Aviation Questionnaire.
- -----------------------------------------------------------------------------------------------------------------------------------
17. Has any person named in 1a or 10, within the last 12 months: Yes No
a. been treated by a doctor for or had a known heart attack, stroke or cancer other than of the skin? ............ [ ] [ ]
b. had an electrocardiogram for any physical complaint, or taken medication for high blood pressure? ............. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
18. Premiums payable [ ] Ann. [ ] Semi-Ann. [ ] Quar. [ ] Mon. [ ] Pay. Budg. [ ] Pru-Matic [ ] Gov't. Allot.
- -----------------------------------------------------------------------------------------------------------------------------------
19. Amount paid $ [ ] None (Must be "None" if either 17a or 17b is answered "Yes".)
- -----------------------------------------------------------------------------------------------------------------------------------
20. Is a medical examination to be made on a. the proposed Insured?.................................................. Yes [ ] No [ ]
b. spouse (if proposed for coverage)? .................................... Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
21. If 20a or 20b is "Yes", is it agreed that no insurance will take effect on anyone proposed for coverage until Yes No
the person(s) indicated in 20 have been examined, even if 19 shows that an amount has been paid? ................. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
22. Dividend Option election COMPLETE ONLY IF APPLYING TO THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
[ ] Paid-up additions [ ] Accumulate at interest [ ] Cash
[ ] Reduce premiums (Not available for monthly mode) [ ] ______________________________
- -----------------------------------------------------------------------------------------------------------------------------------
ORD 84376-84 NEW YORK Page 1 (Continued on page 2)
</TABLE>
II-88
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Continuation of Part 1 of Application
Complete on all persons named in 1a and 10 if any one of them can have insurance on a non-medical basis.
- -----------------------------------------------------------------------------------------------------------------------------------
23. Height and weight of:
a. Proposed Insured Ht._______ Wt._______ b. Spouse Ht.________ Wt.________ c. Applicant for AWP Ht.________ Wt.________
Has the weight changed more than 10 pounds in the past year? Yes [ ] No [ ] If "Yes", give details in 30.
- -----------------------------------------------------------------------------------------------------------------------------------
24. Has the proposed Insured or spouse ever smoked? a. Proposed Insured Yes [ ] No [ ] b. Spouse Yes [ ] No [ ]
If "Yes", give date(s) last smoked: Cigarettes Cigars Pipe
Proposed Insured Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
Spouse Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
- -----------------------------------------------------------------------------------------------------------------------------------
25. When was a doctor last consulted by: a. Proposed Insured? b. Spouse? c. Applicant for AWP?
Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
- -----------------------------------------------------------------------------------------------------------------------------------
26. Has any person to be covered now being treated or taking medicine for any condition or disease?................. Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
27. Has any person to be covered ever: Yes No
a. had any surgery or been advised to have surgery and has not done so?............................................... [ ] [ ]
b. been in a hospital, sanitarium or other institution for observation, rest, diagnosis or treatment?................. [ ] [ ]
c. regularly used or is any such person now using, barbiturates or amphetamines, marijuana or other
hallucinatory drugs, or heroin, opiates or other narcotics, except as prescribed by a doctor? ..................... [ ] [ ]
d. been treated or counseled for alcoholism? ......................................................................... [ ] [ ]
e. had life or health insurance declined, postponed, changed, rated-up or withdrawn? ................................. [ ] [ ]
f. had life or health insurance canceled, or its renewal or reinstatement refused? ................................... [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
28. Other than as shown above, in the past 5 years has any person to be covered: Yes No
a. consulted or been attended or examined by any doctor or other practitioner? ...................................... [ ] [ ]
b. had electrocardiograms, X-rays for diagnosis or treatment, or blood, urine, or other medical tests? .............. [ ] [ ]
c. made claim for or received benefits, compensation, or a pension because of sickness or injury? ................... [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
29. Does any person to be covered now have a known sign of any physical disorder, disease or defect not shown above? Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
30. What are the full details of the answer to 25 and to each part of 23 and 26 thru 29 which is answered "Yes"?
Name & Full names and addresses of
Question No. Illness or other resason Dates and duration of illness doctors and hospitals
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
- -----------------------------------------------------------------------------------------------------------------------------------
Those who sign below declare, to the best of their knowledge and belief, that the statements in this application are complete and
true. The beneficiary named in the application is for insurance payable upon death of (1) the Insured, and (2) an insured child
after the death of the Insured if there is no insured spouse.
When the Company gives a Limited Insurance Agreement form, ORD 84376A-84, NEW YORK, of the same date as this Part 1, coverage will
start as shown in that form. Otherwise, no coverage will start unless: (1) a contract is issued, (2) it is accepted, and (3) the
full first premium is paid while all persons to be covered are living and their health remains as stated in Part 1. If all these
take place, coverage will start on the contract date. No agent can make or change a contract, or waive any of the Company's rights
or needs.
OWNERSHIP: Unless otherwise asked for above, the owner of the contract will be (1) the applicant if other than the proposed Insured,
otherwise (2) the proposed Insured. But this is subject to any automatic transfer of owership stated in the contract.
Signature of Proposed Insured (If Age 8 or over)
----------------------------------------------------------------------
Dated at on , 19 Signature of Applicant (If other than proposed Insured)
- ---------------------------------------------------
City/State ----------------------------------------------------------------------
Witness (If applicant is a firm or corporation, show that company's name)
- --------------------------------------------------- By
(Licensed agent must witness where required by law) ----------------------------------------------------------------------
(Signature and title of officer signing for that company)
ORD 84376-84 NEW YORK Page 2
</TABLE>
II-89
<TABLE>
<CAPTION>
[Prudential Logo] EXHIBIT 1.A.(10)(d)
- -----------------------------------------------------------------------------------------------------------------------------------
APPLICATION FOR LIFE INSURANCE
[LOGO]
----------------------------------------------------
Proposed Insured
- -----------------------------------------------------------------------------------------------------------------------------------
Submitted By
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
----------------------- -------------------- ------------------------------ ---------------------- -------------------
Name & Title Contract No. Agcy. No./Rep. Init. Office Code Detached Office
_____% ----------------------- -------------------- ------------------------------ ---------------------- -------------------
Credit
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
[ ] Debit Ord. [ ] New Acct. [ ] Existing Acct. No. of Apps.__________ Fam. Acct. No.
-------------------------------------------------------------------------------------------------------------
[ ] Reg. Ord. Premium Quoted/Scheduled Premium Payment $______________________________________ (According to mode selected)
-------------------------------------------------------------------------------------------------------------
[ ] Pruco FOR FIELD OFFICE STAFF TO COMPLETE: Control No. _________ County Code __________
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ORD 84376 82 NEW JERSEY
II-90
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Part 1 Application to [ ] The Prudential Insurance Company of America No.
[ ] Pruco Life Insurance Company*
[ ] Pruco Life Insurance Company of New Jersey*
* A Subsidiary of The Prudential Insurance Company of America
- -----------------------------------------------------------------------------------------------------------------------------------
1a. Proposed Insured's name -- first, initial, last (Print) 1b. Sex 2a. Date of birth 2b. Age 2c. Place of birth
Mo. Day Yr.
[ ]M [ ]F
- -----------------------------------------------------------------------------------------------------------------------------------
3. [ ] Single [ ] Married [ ] Widowed [ ] Separated [ ] Divorced 4. Occupation(s)
- -----------------------------------------------------------------------------------------------------------------------------------
5. Address for mail No. Street City State Zip
- -----------------------------------------------------------------------------------------------------------------------------------
6a. Kind of policy 6b. Initial amount 7. Accidental death coverage
$ initial amount $
- -----------------------------------------------------------------------------------------------------------------------------------
8. Beneficiary: (Include name, age and relationship.) 9. List all life insurance on proposed Insured. (If NONE, so state.)
a. Primary (Class 1): b. Contingent (Class 2) if any: Initial Yr. Kind Medical
Company amt. issued (Indiv., Group) Yes No
[ ] [ ]
_________________________________________________________ ___________________________________________________________________
(For insurance payable upon death of (1) the Insured, and [ ] [ ]
(2) an insured child after the death of the Insured if ___________________________________________________________________
there is no insured spouse.) [ ] [ ]
___________________________________________________________________
[ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
10. Other person(s) proposed for coverage including the Applicant for Applicant's Waiver of Premium benefit (AWP)
Relationship to Date of birth Total life insurance
Name--first, initial, last Sex proposed Insured Mo. Day Yr. Age Place of birth in all companies
a. Spouse $
___________________________________________________________________________________________________________________________________
b. $
___________________________________________________________________________________________________________________________________
c. $
___________________________________________________________________________________________________________________________________
d. $
___________________________________________________________________________________________________________________________________
e. $
___________________________________________________________________________________________________________________________________
f. $
- -----------------------------------------------------------------------------------------------------------------------------------
11. Supplementary benefits: a. For proposed Insured b. For spouse, children, Applicant for AWP
Type and duration of benefit Amount Type and duration of benefit Amount
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
$ $
___________________________________________________________________________________________________________________________________
[ ] Option to Purchase Additional Ins. $ [ ] Applicant's Waiver of Premium benefit
- -----------------------------------------------------------------------------------------------------------------------------------
12. State any special request.
- -----------------------------------------------------------------------------------------------------------------------------------
13. Will this insurance replace or change any existing insurance or annuity in any company on any person named Yes No
in 1a or 10? If "Yes", give their names, name of company, plan, amount and policy numbers. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
14. Is anyone applying for, or trying to reinstate, life or health insurance on any person named in 1a or 10 in Yes No
this or any company? If "Yes", give amount, details and company. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
15. Does any person named in 1a or 10 plan to live or travel outside the United States and Canada within the next Yes No
12 months? If "Yes", give details. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
16. Has any person named in 1a or 10 operated or had any duties aboard an aircraft, glider, balloon, or like Yes No
device, within the last 2 years, or does any such person have any plans to do so in the future? If "Yes", [ ] [ ]
complete Aviation Questionnaire.
- -----------------------------------------------------------------------------------------------------------------------------------
17. Has any person named in 1a or 10, within the last 12 months: Yes No
a. been treated by a doctor for or had a known heart attack, stroke or cancer other than of the skin? ............ [ ] [ ]
b. had an electrocardiogram for any physical complaint, or taken medication for high blood pressure? ............. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
18. Premiums payable [ ] Ann. [ ] Semi-Ann. [ ] Quar. [ ] Mon. [ ] Pay. Budg. [ ] Pru-Matic [ ] Gov't. Allot.
- -----------------------------------------------------------------------------------------------------------------------------------
19. Amount paid $ [ ] None (Must be "None" if either 17a or 17b is answered "Yes".)
- -----------------------------------------------------------------------------------------------------------------------------------
20. Is a medical examination to be made on a. the proposed Insured?.................................................. Yes [ ] No [ ]
b. spouse (if proposed for coverage)? .................................... Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
21. If 20a or 20b is "Yes", is it agreed that no insurance will take effect on anyone proposed for coverage until Yes No
the person(s) indicated in 20 have been examined, even if 19 shows that an amount has been paid? ................. [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
22. Changes made by the Company
- -----------------------------------------------------------------------------------------------------------------------------------
ORD 84376-82 NEW JERSEY Page 1 (Continued on page 2)
</TABLE>
II-91
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Continuation of Part 1 of Application
Complete on all persons named in 1a and 10 if any one of them can have insurance on a non-medical basis.
- -----------------------------------------------------------------------------------------------------------------------------------
23. Height and weight of:
a. Proposed Insured Ht._______ Wt._______ b. Spouse Ht.________ Wt.________ c. Applicant for AWP Ht.________ Wt.________
Has the weight changed more than 10 pounds in the past year? Yes [ ] No [ ] If "Yes", give details in 30.
- -----------------------------------------------------------------------------------------------------------------------------------
24. Has the proposed Insured or spouse ever smoked? a. Proposed Insured Yes [ ] No [ ] b. Spouse Yes [ ] No [ ]
If "Yes", give date(s) last smoked: Cigarettes Cigars Pipe
Proposed Insured Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
Spouse Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
- -----------------------------------------------------------------------------------------------------------------------------------
25. When was a doctor last consulted by: a. Proposed Insured? b. Spouse? c. Applicant for AWP?
Mo.______ Yr. ______ Mo.______ Yr. ______ Mo.______ Yr. ______
- -----------------------------------------------------------------------------------------------------------------------------------
26. Has any person to be covered now being treated or taking medicine for any condition or disease? .................Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
27. Has any person to be covered ever: Yes No
a. had any surgery or been advised to have surgery and has not done so?............................................... [ ] [ ]
b. been in a hospital, sanitarium or other institution for observation, rest, diagnosis or treatment? ................ [ ] [ ]
c. regularly used or is any such person now using, barbiturates or amphetamines, marijuana or other
hallucinatory drugs, or heroin, opiates or other narcotics, except as prescribed by a doctor? ..................... [ ] [ ]
d. been treated or counseled for alcoholism? ......................................................................... [ ] [ ]
e. had life or health insurance declined, postponed, changed, rated-up or withdrawn? ................................. [ ] [ ]
f. had life or health insurance canceled, or its renewal or reinstatement refused? ................................... [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
28. Other than as shown above, in the past 5 years has any person to be covered: Yes No
a. consulted or been attended or examined by any doctor or other practitioner? ...................................... [ ] [ ]
b. had electrocardiograms, X-rays for diagnosis or treatment, or blood, urine, or other medical tests? .............. [ ] [ ]
c. made claim for or received benefits, compensation, or a pension because of sickness or injury? ................... [ ] [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
29. Does any person to be covered now have a known sign of any physical disorder, disease or defect not shown above? Yes [ ] No [ ]
- -----------------------------------------------------------------------------------------------------------------------------------
30. What are the full details of the answer to 25 and to each part of 23 and 26 thru 29 which is answered "Yes"?
Name & Full names and addresses of
Question No. Illness or other resason Dates and duration of illness doctors and hospitals
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
- -----------------------------------------------------------------------------------------------------------------------------------
Those who sign below declare, to the best of their knowledge and belief, that the statements in this application are complete and
true.
When the Company gives a Temporary Indurance Agreement form, ORD 84376A-82 New Jersey, of the same date as this Part 1, coverage
will start as shown in that form. Otherwise, no coverage will start unless: (1) a contract is issued, (2) it is accepted, and (3)
the full first premium is paid while all persons to be covered are living and their health remains as stated in Part 1. If all these
take place, coverage will start on the contract date. If the Company makes a change as indicated in 22 it will be approved by
acceptance of the contract. But where the law requires written consent for any change in the application, such as change can be made
only if those who sign this form approve the change in writing. No agent can make or change a contract, or waive any of the
Company's rights or needs.
OWNERSHIP: Unless otherwise asked for above, the owner of the contract will be (1) the applicant if other than the proposed Insured,
otherwise (2) the proposed Insured. But this is subject to any automatic transfer of owership stated in the contract.
Signature of Proposed Insured (If Age 8 or over)
----------------------------------------------------------------------
Dated at on , 19 Signature of Applicant (If other than proposed Insured)
- ---------------------------------------------------
City/State ----------------------------------------------------------------------
Witness (If applicant is a firm or corporation, show that company's name)
- --------------------------------------------------- By
(Licensed agent must witness where required by law) ----------------------------------------------------------------------
(Signature and title of officer signing for that company)
ORD 84376-82 NEW JERSEY Page 2
</TABLE>
II-92
<PAGE>
- --------------------------------------------------------------------------------
ACKNOWLEDGEMENT
I have received and read a copy of the IMPORTANT NOTICE ABOUT YOUR APPLICATION
FOR INSURANCE.
--------------------------------
Date
, 19
----------------------------------------
AUTHORIZATION For the Release of Information to:
[ ] The Prudential Insurance Company of America
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
To: Any licensed physician, medical practitioner, hospital, clinic or like
facility, insurance company or the Medical Information Bureau, Inc. or other
organization, institution or person.
To determine eligibility for life insurance coverage, I authorize you to give
the Company checked above and, through it, to its reinsurers and the Medical
Information Bureau, any data or records you may have about me or my mental or
physical health. This also applies to any child proposed for insurance in the
application.
This authorization is valid until two years after the effective date of any
contract issued in connection with this authorization. A photo of this form will
be as valid as the original. (The person who signs this form may have a copy of
it upon request.)
Signature of Proposed Insured (if age 15 or over) otherwise Applicant
- -------------------------------------------------------------------------------
Signature of Spouse (if proposed for coverage)
- -------------------------------------------------------------------------------
ORD 84377 82 NEW JERSEY
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
[ ] The Prudential Insurance Company of America
[ ] Pruco Life Insurance Company [ ] Pruco Life Insurance Company of New Jersey
IMPORTANT NOTICE ABOUT YOUR APPLICATION FOR INSURANCE
-----------------------------------------------------
Before we can issue a policy we must first underwrite your application. This
means that we evaluate all the information necessary to determine if you qualify
for the insurance.
In addition to the information on the application, a medical examination may be
required. We also ask you to authorize any doctor, hospital or other
organization or person who has any data about you to give us any such
information.
We may ask for a report from a consumer reporting agency. These reports provide
information about a person's character, residence, activities, general
reputation, personal characteristics and mode of living. The agency may get this
information through interviews with friends, neighbors and associates. Any
person on whom we ask for a report has a right to ask to be interviewed. You may
also get a copy of the report from the consumer reporting agency which completed
it. An agency may keep the information it has about you and disclose it to other
persons. If you would like further information as to the nature and scope of
these reports, it will be provided upon request.
Any information which we obtain about you will be treated as confidential.
However, we may give this information, as necessary, to: your doctor, if we find
a serious health problem which you do not know about; persons conducting
mortality or morbidity studies; and affiliate companies for marketing purposes.
If you ask, we will describe any other circumstances when we may disclose
information about you without your prior authorization.
ORD 84378-82 NEW JERSEY (Continued on reverse)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
[ ] The Prudential Insurance Company of America
[ ] Pruco Life Insurance Company*
[ ] Pruco Life Insurance Company of New Jersey*
* A Subsidiary of The Prudential Insurance Company of America
TEMPORARY INSURANCE AGREEMENT
We, the Company, agree to provide temporary insurance as follows:
1. It will start on the latest of these dates: (a) the date of this agreement,
(b) the date of completion of all medical examinations agreed to, and (c)
any date asked for in the application.
2. This insurance is subject to the terms of the contract applied for.
3. The sum of all death benefits for any person who is to be covered by this
insurance will be the amount asked for on that person or $250,000,
whichever is less.
The temporary insurance will end:
1. When we issue a contract as applied for. It will replace the temporary
insurance.
2. When we issue a contract other than as applied for. It will replace the
temporary insurance if: (a) it is accepted on delivery (this includes
paying at the same time any excess of the correct first premium over the
amount shown below); and (b) the persons who are to be covered are living
when the contract is delivered. If the contract is not accepted on delivery
the temporary insurance will end at once.
3. When we tell you that we rejected the application or when we tell you that
we will not consider it on a prepaid basis.
4. At the end of 60 days if the temporary insurance has not been ended as we
state in 1, 2 or 3.
ORD 84376A-82 NEW JERSEY (Continued on reverse) Printed in U.S.A.
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Names and addresses of three Friends or Business Associates:
1. Name _______________________________________________________________________
Address ____________________________________________________________________
2. Name _______________________________________________________________________
Address ____________________________________________________________________
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<PAGE>
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We may also make a brief report to the Medical Information Bureau (MIB) which
provides an information exchange for its member insurance companies. When you
apply for life or health insurance or submit a claim for benefits to any member
company, MIB will, on request, give that company the information in its file. If
you wish to know if there is an MIB report about you or if you question its
accuracy, you may contact MIB at Post Office Box 105, Essex Station, Boston, MA
02112, (617) 426-3660.
If you have any questions concerning any of the personal information which we
obtain or report, let us know. You have the right to see this information and to
correct, amend or delete any information which may be wrong. We will tell you
how to do this if you ask us.
If we are unable to issue the policy you requested, we will tell you and explain
the reasons.
Thank you for applying to us for insurance.
Corporate Offices, Newark, N.J.
These Regional Home Offices of The Prudential Insurance Company of America are
also Service Offices of Pruco Life Insurance Company. Asterisk (*) designates
Service Offices of Pruco Life Insurance Company of New Jersey.
Central Atlantic Home Office, Northeastern Home Office,
Fort Washington, Pa. Boston, Mass.*
Eastern Home Office, South-Central Home Office,
South Plainfield, N.J.* Jacksonville, Fla.
Mid-America Home Office, Southwestern Home Office,
Chicago, Ill. Houston, Tex.
North Central Home Office, Western Home Office,
Minneapolis. Minn. Los Angeles, Calif.
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- --------------------------------------------------------------------------------
We received $_____________ on_________, 19___ from __________________________.
This amount was paid when a life insurance application was signed, on the same
date, in which ____________________________________________ is named as the
proposed Insured. This agreement is issued on the condition that any check,
draft or other order for the payment of money is good and can be collected.
ALL CHECKS MUST BE DRAWN ONLY TO THE COMPANY AND NOT TO ANY OTHER PARTY.
No change may be made in the terms and conditions of this form. No statement
which claims to make such a change will bind the Company.
Field Office Writing Representative (Agent)
___________________________________ ________________________________________
The Prudential Insurance Company of America
Pruco Life Insurance Company Pruco Life Insurance Company of New Jersey
Corporate Offices, Newark, N.J.
These Regional Home Offices of The Prudential Insurance Company of America are
also Service Offices of Pruco Life Insurance Company. Asterisk (*) designates
Service Offices of Pruco Life Insurance Company of New Jersey.
Central Atlantic Home Office, Northeastern Home Office,
Fort Washington, Pa. Boston, Mass.*
Eastern Home Office, South-Central Home Office,
South Plainfield, N.J.* Jacksonville, Fla.
Mid-America Home Office, Southwestern Home Office,
Chicago, Ill. Houston, Tex.
North Central Home Office, Western Home Office,
Minneapolis, Minn. Los Angeles, Calif.
_____________________________________________________________
Note--Unless you get a contract, or your money back within eight weeks from the
date of this agreement, please notify the Company. Give the amount paid, date of
payment, and name of person to whom paid. (Locations are shown above.)
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3. Name _______________________________________________________________________
Address ____________________________________________________________________
Furnished by ___________________________________________________________
(Name of Proposed Insured/Applicant)
Proposed Insured's Expiration Dates: Auto ___________ Homeowners ______________
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II-95
EXHIBIT 1.A.(11)
[Prudential Logo]
- --------------------------------------- FOR INSURANCE SERVICE, CONTACT YOUR
POLICY NUMBER REPRESENTATIVE OR THIS OFFICE
- ---------------------------------------
------------------------------------
N0TICE OF WITHDRAWAL RIGHT
In order to comply with the laws administered by the Securities and Exchange
Commission, we are sending you this notice. Please read it carefully and keep it
with your records.
You have recently purchased a variable life insurance contract from Pruco Life.
The benefits of this contract depend on the investment experience of the money
market, bond, and common stock subaccounts of Pruco Life's variable insurance
account. These subaccounts are described in the Prospectus that was given to you
at the time of the sale.
You have the right to examine and cancel this contract. Upon its return, you are
entitled to a full refund of all premiums paid. The cancellation deadline is the
latest of:
1. 10 days after you have received the contract
2. 45 days from the date you completed PART 1 of the application
3. 10 days from the date of delivery of this notice.
In determining whether or not to cancel your contract, you should consider,
along with other factors such as the needs and other reasons which motivated you
to purchase this contract, the projected cost and your ability to make the
scheduled premium payments as stated in your contract. Please consult and review
the Prospectus you have received. The Prospectus describes the deductions from
payments before amounts are allocated to the subaccounts mentioned above.
These are:
o A total yearly administration fee of $30.00 if premiums are paid annually,
$32.00 if paid semi-annually, $36.00 if paid quarterly, or $48.00 if paid
monthly
o A deduction for sales load of not more than 30% in the first year, 10% in
contract years 2 through 4, and 7.5% in contract years 5 and after
o A risk charge of not more than 1.2% to guarantee the minimum
death benefit
o A deduction of not more than 2% for premium tax
o For each $1,000.00 of face amount of insurance, a deduction from each
premium in the first contract year for additional administration expenses of
$5.00 if premiums are paid annually, $2.52 if paid semi-annually, $1.27 if
paid quarterly, or $.43 if paid monthly.
These deductions do not include premiums for extra mortality risks or optional
insurance benefits.
Similar charges for many of the foregoing are made in all permanent life
insurance policies but are not specified as to expense or amount.
If you decide to cancel your contract, complete the enclosed form and return it
along with your contract. The postmark of the returned contract must be on or
before the deadline described above.
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INSTRUCTlONS
Please read carefully
If after reading the enclosed notice, you decide to return your contract for
cancellation, you must:
1. Sign and date the bottom portion of this form.
2. Mail this notice together with your contract to:
Pruco Life Insurance Company
North Central Service Office
P. O. Box 1143, Minneapolis, MN 55440
3. Make certain that the postmark on the envelope is on or before the
latest date permitted for cancellation as described in the enclosed
notice.
4. Check the box at the bottom if you have not yet received your contract
when mailing this form.
TO BE FILLED OUT BY OWNER
To: Pruco Life
Pursuant to the terms of the notice previously furnished me by Pruco Life, I
hereby return the contract numbered below for cancellation and request a full
refund of all premiums paid by me. I release Pruco Life from any claims in
connection with the sale or issuance of this contract and acknowledge that Pruco
Life's only liability is the refund of the premiums paid for the contract.
- -------------------------------------- --------------------------------------
Date Signature of Contract Owner
--------------------------------------
Policy Number
--------------------------------------
Name of Insured (if other than owner)
[ ] I have not yet received the contract and, should it be received, I will
return it to Pruco Life.
II-97
EXHIBIT 1.A.(12)
Description of Pruco Life's Issuance, Transfer and
Redemption Procedures for Policies
Pursuant to Rule 6e-2(b)(12)(ii)
and
Method of Computing Adjustments in
Payments and Cash Values of Policies
Upon Conversion to Fixed Benefit Policies
Pursuant to Rule 6e-2(b)(13)(v)(B)
-----------------------------------------
This document sets forth the administrative procedures that will be
followed by Pruco Life Insurance Company of New Jersey ("Pruco Life") in
connection with the issuance of its Variable Life Insurance Contract
("Contract"), the transfer of assets held thereunder, and the redemption by
Contract owners of their interests in said Contracts. The document also explains
the method that Pruco Life will follow in making a cash adjustment when a
Contract is exchanged for a fixed benefit insurance policy pursuant to Rule
6e-2(b)(13)(iv)(B).
I. Procedures Relating to Issuance and Purchase of the Contracts
A. Premium Schedules and Underwriting Standards
Premiums for Pruco Life's Contract will not be the same for all Owners.
Insurance is based on the principle of pooling and distribution of mortality
risks, which assumes that each Owner pays a premium commensurate with the
Insured's mortality risk as actuarially determined utilizing factors such as
age, sex, health and occupation. A uniform premium for all Insureds would
discriminate unfairly in favor of those Insureds representing
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greater risks. Although there will be no uniform premium for all Insureds, there
will be a single price for all Insureds in a given risk classification.
The Contract will be offered and sold pursuant to established premium
schedules(1) and underwriting standards in accordance with state insurance laws.
The prospectus specifies premiums for illustrative ages. In addition, the
premiums to be paid by an Owner will be specified in the Contract.
B. Application and Initial Premium Processing
Upon receipt of a completed application from a prospective Owner, Pruco
Life will follow certain insurance underwriting (i.e. evaluation of risk)
procedures designed to determine whether the proposed Insured is insurable. This
process may involve such verification procedures as medical examinations and may
require that further information be provided by the proposed Insured before a
determination can be made. A Contract cannot be issued, i.e. physically issued
through Pruco Life's computerized issue system, until this underwriting
procedure has been completed.
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(1) In accordance with industry practice, Pruco Life will establish procedures
to handle errors in initial and subsequent premium payments to refund
overpayments and collect underpayments, except for de minimis amounts.
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If the initial premium is paid with the application and the Contract is
issued as applied for, the contract date will be that of the latest of Part 1 of
the application, Part 2 of the application (any medical examination), or 21 days
prior to the date of physical issue. If the first premium is not paid with the
application, the Contract date will be the Contract date as stated in the
Contract (which is ordinarily two or three days after the application is
approved), provided the Owner pays the necessary premium.
The Contract date marks the date on which benefits begin to vary in
accordance with the investment performance of the selected subaccounts of the
Pruco Life Variable Insurance Account ("Account"). It is also the date as of
which the insurance age of the proposed Insured is determined. It represents
the first day of the Contract year and therefore determines the Contract
anniversary and also the monthly dates. It also represents the commencement of
the suicide and contestable periods for purposes of the Contract.
There are two principal variations in the foregoing procedure. First, if
the Owner wishes that permanent insurance protection and variability of benefits
commence at a future date, he can select a period of initial term insurance.
Pruco Life may sell such temporary insurance with coverage commencing on the
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latest of (1) the date of the temporary insurance agreement; (2) the date of
completion of all medical examinations agreed to; and (3) any date asked for in
the application. The length of initial term insurance available varies from
state to state.
Second, subject to state insurance laws, the Contract may be dated back up
to 6 months, provided that the premium is paid with the application and that the
backdating results in a lower insurance age for the Insured. In that case the
variability of benefits will begin on this backdated Contract date.
Pruco Life will transfer the appropriate amount from its general account to
the Account on the date the Contract is approved unless, as noted above, the
Owner selects a period of preliminary term insurance in which case the first net
premium will be transferred to the Account on the Contract date. The variable
benefits under all Contracts will be calculated on the assumption that the
initial net premium was transferred to the Account on the Contract date.
C. Premium Processing
On each premium due date, Pruco Life will transfer a net premium from the
general account to the Account, whether or not the premium has been paid by the
Owner. This procedure will sometimes result in Pruco Life's advancing monies
prior to
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receipt of premiums. The amount of the net premium will depend upon such
factors as the Insured's age, sex, risk classification, the Contract's face
amount, and the period for which the Contract has been in force. The amount of
the net premium for the second, third, and fourth Contract years will always
be greater than the net premium for the first Contract year, and the net premium
for subsequent years will be at least equal to that for prior years.
The size of the premiums is computed on the assumption that, on the
average, premiums will be paid on the due date, although some may be paid before
and some later in the grace period.
Premiums paid less frequently are lower than the sum of the premiums paid
more frequently over the same period. This reflects an increased administrative
charge because of the additional expense incurred in collecting and processing
additional premiums as well as an interest adjustment to take account of the
fact that when premiums are paid annually the insurer has the use of the funds
for the entire year.
The net premium added to the Account for an annual premium Contract is
lower than the sum of the twelve premiums for a monthly premium Contract. The
annual net premium is calculated so that if the Account earns the assumed
investment return of 4%, it will accumulate to the same amount as twelve
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monthly net premiums would have. Also, the larger annual premium provides
greater participation in the investment experience of the Account at an earlier
time than the monthly net premiums which are added to the Account later
periodically throughout the contract year.
D. Reinstatement
The Contract may be reinstated within three years after the due date of the
first unpaid premium unless the net cash value has been paid. A Contract will be
reinstated upon receipt by Pruco Life of a written application for
reinstatement, production of evidence of insurability satisfactory to Pruco Life
and payment of an amount equal to the greater of: (a) all overdue premiums with
interest of 6% compounded annually; or (b) 110% of the excess of the net cash
value immediately following reinstatement over the net cash value immediately
preceding reinstatement, plus total premiums in arrears for extra benefits with
compound interest at 6% a year.
Any contract debt must be restored with interest to date at 5 1/2% a year.
If that debt with interest would exceed the loan value of the reinstated
contract, the excess must be paid to Pruco Life before reinstatement.
Upon reinstatement, the Contract will have the same death benefit, net cash
value, and contract debt, if any, as if default had not occurred. This
reinstatement provision is
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designed to comply with the insurance laws of a number of states.
In order to assist an Owner of a lapsed Contract in making a considered
judgment as to whether to reinstate, Pruco Life may calculate the amount
payable upon reinstatement and "freeze" the amount for up to fourteen days.
The reinstatement will take effect as of the date the required proof of
insurability and payment of the reinstatement amount have been received by Pruco
Life at its Service Office. Pruco Life will place the reinstatement amount in
its general account and transfer to the Account assets equal to the amount
required to support the reinstated benefits.
E. Repayment of Loan
A loan made under Pruco Life's Contract may be repaid with an amount equal
to the monies borrowed plus 5 1/2% interest.
When a loan is made, Pruco Life will transfer from the Account to the
general account an amount equal to the contract debt thereby created. Since the
Contract owner will be credited at the assumed rate of return of 4% upon the
amount of the outstanding Contract debt, Pruco Life will realize the difference
between that rate and the 5 1/2% loan interest rate charged to the Owner in
order to cover the loan investment expenses, income taxes, if any, and a charge
for expenses and mortality risks and
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other contingencies. Upon repayment of contract debt, Pruco Life will reduce its
general account loan asset and transfer assets supporting corresponding reserves
to the Account.
II. Transfer Among Subaccounts
The Account currently has three subaccounts, each of which is invested in
shares of a corresponding portfolio of the Pruco Life Series Fund, Inc.
("Fund"), which is registered under the 1940 Act as an open-end diversified
management investment company. The Owner, as often as four times in each
contract year, may transfer amounts among subaccounts, if premiums have been
duly paid. All or a portion of the amount attributable to the Contract in a
subaccount may be transferred, but if only a portion is transferred, the
transfer may not result in less than $100 being held in any subaccount on the
day of transfer. If an Owner reallocates amounts among subaccounts on a
percentage basis, the percentage must be in whole numbers. The transfer will
take effect as of the date of receipt in Pruco Life's Service Office of
written notice in a form satisfactory to Pruco Life.
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III. "Redemption" Procedures:
Surrender and Related Transactions
A. Surrender for Cash Value
If the insured party under a Contract is alive, Pruco Life will pay, within
seven days, the net cash value as of the date of receipt, at its Service Office,
of the Contract and a signed request for surrender. Computations with respect to
the investment experience of the Account will be made on each day during which
the New York Stock Exchange is open for trading, as of the time of the close of
trading on such Exchange. Computations for days on which the Exchange is not
open for trading will be based on the investment experience as of the last prior
day on which the Exchange was open for trading.
On each monthly date, Pruco Life adjusts the insurance amount and
calculates the net cash value. The monthly date occurs on the Contract date and
then in each later month on the same day of the month as the Contract date. On a
monthly date if no premium is in default, the net cash value is equal to (a) the
tabular cash value on that date; plus (b) the net single premium for the
variable insurance amount that applies on that date; minus (c) if that date is a
premium due date, and the premium has not been paid, the net premium that
applies on that date; minus (d) any contract debt; minus (e) in the first
contract year, any issue charge installments that have not yet been paid. The
amount of (b) will be less than zero if the variable insurance
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amount is less than zero. The net premium is equal to the premium less various
charges disclosed in the prospectus. The amounts of the net premiums and the
issue charge installment will be shown on page 3 of the Contract. Each Contract
will contain a table showing the amount of the "tabular cash value" applicable
to the Contract as of each Contract anniversary date. When necessary, the
tabular cash value for dates between contract anniversary dates will be
determined by interpolation.
The issue charge installments in the first contract year are designed to
recover, a far as possible, the administrative expenses incurred before the
Contract is issued. As a result, in the early months of the first contract year,
there may be no net cash value where premiums are paid more frequently than
annually.
The net cash value on a date other than a monthly date will be equal to:
(a) the tabular cash value on that date; plus (b) the net single premium at the
insured's attained age for the variable insurance amount on that date; plus (c)
the excess investment return since the last monthly date; minus (d) any Contract
debt; minus (e) in the first Contract year, any issue charge installments that
have not yet been paid.
If the due date of a paid premium is on or after the effective date of
surrender, Pruco Life will refund that premium. During the days of grace of a
premium in default, the
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net cash value will be the net cash value as of the due date of the unpaid
premium, adjusted up or down depending on whether the assets relating to the
Contract have increased at more than 4% a year or not. After the days of grace
have expired, a Contract's net cash value is the net cash value of any extended
term or reduced paid-up insurance then in force.
Pruco Life will make the payment of the surrender value out of its general
account and, at the same time, transfer assets from the Account to the general
account in an amount equal to the reserve liability applicable to the Contract
held in the Account.
In lieu of the payment of the net cash value in a single sum upon surrender
of a Contract, an election may be made by the Contract owner to apply all or a
portion of the proceeds under one of the fixed benefit settlement options
described in the Contract or, with the approval of Pruco Life, a combination of
options. An option is available only if the proceeds to be applied are $1,000 or
more or would result in periodic payments of at least $20.00. The fixed benefit
settlement options are subject to the restrictions and limitations set forth in
the Contract.
B. Death Claims
Pruco Life will pay a death benefit to the beneficiary within seven days
after receipt at its Service Office of due
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proof of death of the Insured, and all other requirements necessary(2) to make
payment.
On each Monthly date to which premiums have been duly paid, Pruco Life will
adjust the variable insurance amount to take account of investment experience of
the Account for the previous contract month. Provided premiums are duly paid,
the insurance amount during a contract month will be equal to the sum of (a) the
fact amount and (b) the variable insurance amount (computed on the previous
monthly date) if greater than zero. The insurance amount is guaranteed not to be
less than the face amount. The insurance amount will not be adjusted downward or
upward during the contract month. Provided that no premium is in default more
than 31 days, the death benefit payable to the beneficiary will be equal to (a)
the insurance amount; plus (b) a pro rata refund of any premiums paid for
periods beyond the date of death; minus (c) any contract debt; minus (d) the
pro rata part of any premium in default if death occurs during the 31 day grace
period. The proceeds payable on death also reflect interest from the date of
death to the date of payment.
- ----------
(2) State insurance laws impose various requirements, such as receipt of a tax
waiver, before payment of the death benefit may be made. In addition,
payment of the death benefit is subject to the provisions of the Contract
regarding suicide and incontestability.
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Pruco Life will make payment of the death benefit out of its general
account, and will transfer assets from the Account to the general account in an
amount equal to the reserve liability applicable to the Contract held in the
Account. The excess of the insurance amount over the sum of the face amount and
the variable insurance amount, if any, will be paid out of a general account
reserve maintained for that purpose.
In lieu of payment of the death benefit in a single sum, an election may be
made to apply all or a portion of the proceeds under one of the fixed benefit
settlement options described in the Contract or, with the approval of Pruco
Life, a combination of options. The election may be made by the Owner during the
Insured's lifetime, or, if no election is in effect at death, by the
beneficiary. An option in effect at death may not be changed to another form of
benefit after death. An option is available only if the proceeds to be applied
are $1,000 or more, or would result in periodic payments of at least $20.00. The
fixed benefit settlement options are subject to the restrictions and limitations
set forth in the Contract.
C. Default and Options on Lapse
A premium not paid on or before its due date is in default, but Pruco
Life's Contract provides for a 31 day grace period for the payment of each
premium after the first. The insurance coverage continues in force during the
grace period,
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but if the Insured dies during the grace period, the portion of the premium due
which is applicable to the period from the premium due date to the date on which
the Insured dies is deducted from the insurance amount.
Except for Contracts issued on certain insureds in high risk rating
classes, a lapsed Contract will be converted to extended term insurance at
expiration of the grace period. The insurance amount of the extended term
insurance is equal to the insurance amount of the Contract as of the due date of
the premium in default, less any Contract debt. The extended term insurance will
continue for a length of time that depends on the net cash value on the due date
of the first unpaid premium, the amount of insurance and the age and sex of the
insured.
Contracts issued on the above-mentioned high risk insureds will be
converted to reduced paid-up whole-life insurance at expiration of the grace
period. Moreover, extended term insurance may be exchanged for reduced paid-up
insurance within three months of the due date of the first unpaid premium. The
insurance amount will depend on the net cash value on the due date of the first
premium in default, and the age and sex of the insured.
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D. Loans
Pruco Life's Contract provides that an Owner, if no premium is in default
beyond the grace period(3), may make a loan at any time a loan value is
available after the first Contract year. The Owner may borrow money on
completion of a form satisfactory to Pruco Life assigning the Contract as the
only security for the loan. Payment of the loan will be made from Pruco Life's
general account within seven days of receipt of the form at Pruco Life's Service
Office. Allocation of the loan among the subaccounts of the Account will be in
the same proportion as reserves applicable to the Contract are held in those
subaccounts.
An Owner may borrow up to the Contract's loan value. During the first
contract year, the loan value is zero. After the first contract year, the loan
value is 75% of the cash value. Interest accrues daily at an effective annual
rate of 5 1/2% and, if not paid, is added to the amount of the loan on each
Contract anniversary. Except when used to pay premiums, a loan will not be
permitted unless it is for at least $500.
A loan does not affect the amount of premiums due. When a loan is made, an
amount equal to the Contract debt thereby
- ----------
(3) The Contract also provides for a loan value if the Contract is in effect
under the contract value option for Reduced Paid-Up Insurance, but not if
it is in effect under the contract value option for Extended Term Insurance.
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created is transferred from the Account to Pruco Life's general account. Because
of the transfer, the investment base in the Account available to affect the
investment experience is smaller and the monthly adjustment of the insurance
amount and the daily changes in the net cash value will be different from what
they would have been had no loan been taken. The death benefit and cash value
are thus permanently affected by any contract debt, whether or not repaid.
The guaranteed minimum death benefit is not affected by contract debt if
premiums are duly paid. However, on settlement the amount of any contract debt
is subtracted from the insurance amount.
If contract debt ever becomes equal to or more than what the net cash value
would be if there were no contract debt, all the Contract's benefits will end 31
days after notice is mailed to the Owner and any known assignee, unless
repayment is made within that period.
IV. Cash Adjustment Upon Exchange of Contract
Pruco Life's Contract, in accordance with Rule 6e-2(b)(13)(v)(B), provides
that the Owner, within 24 months of issuance of a Contract, may exchange the
Contract, without submission of new evidence of insurability, for a permanent
fixed benefit insurance policy offered by Prudential. The new policy will have a
face amount equal to the face amount of the original
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Contract. The new policy will be a Life Paid-Up at Age 85 plan. It will have
the same contract date and insurance age as the original contract, and be in the
same risk classification. This exchange privilege is designed to permit a
Contract Owner to change his mind and obtain a fixed benefit policy.
There will be a cash adjustment upon exercise of the exchange privilege
under Rule 6e-2(b)(13)(v)(B). That adjustment will be: (1) the difference
between the premiums that would have been required under the new policy had it
been purchased at the outset and the premiums paid under the Contract; minus (2)
the difference, if positive, between the actual cash value under the Contract at
the date of exchange and what that cash value would have been had the assets in
the Account relating to the Contract earned a uniform net investment return of
4% a year.
Once the exchange takes effect, there will be an appropriate transfer of
funds between Pruco Life and Prudential to reflect the assumption of the risk
by Prudential. At the same time, Pruco Life will transfer assets from the
Account to the general account in an amount equal to the applicable reserve.
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EXHIBIT 1.A(13)(a)
RIDER FOR INSURED'S WAIVER OF PREMIUM BENEFIT
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
Total Disability Benefit.--We will waive contract premiums that fall due while
the Insured is totally disabled. But this is subject to all the provisions of
this Benefit and of the rest of this contract.
Disability Defined.--When we use the words disability and disabled in this
Benefit we mean total disability and totally disabled. Here is how we define
them: (1) until the Insured has stayed disabled for two years, we mean that he
or she cannot, due to sickness or injury, do any of the duties of his or her
regular occupation; but (2) after the Insured has stayed disabled for two years,
we mean that he or she cannot, due to sickness or injury, do any gainful work
for which he or she is reasonably fitted by education, training, or experience.
Except for what we state in the next sentence, we will at no time regard an
Insured as disabled who is doing gainful work for which he or she is reasonably
fitted by education, training, or experience. We will regard an Insured as
disabled, even if working or able to work, if he or she incurs, during a period
in which premiums are eligible to be waived as we describe below, one of the
following: (1) permanent and complete blindness of both eyes; or (2) severance
of both hands at or above the wrists or both feet at or above the ankles; or (3)
severance of one hand at or above the wrist and one foot at or above the ankle.
Premiums Eligible To Be Waived.--If the Insured becomes disabled before the
first contract anniversary after his or her 60th birthday and that disability
begins (1) on or after the first contract anniversary after his or her 5th
birthday, if the contract date was before that birthday; or (2) on or after the
contract date, if that date was on or after his or her 5th birthday, we will
waive all premiums that fall due while he or she stays disabled.
If the Insured becomes disabled on or after the first contract anniversary after
his or her 60th birthday, we will waive only those premiums that fall due before
the first contract anniversary after his or her 65th birthday and while he or
she stays disabled.
If the Insured becomes disabled on or after the first contract anniversary after
his or her 65th birthday, we will not waive any premiums that fall due in that
period of disability.
Conditions.--Both of these conditions must be met: (1) The Insured must become
disabled while this contract is in force with no premium in default past its
days of grace. (2) The Insured must stay disabled for a period of at least six
months while living.
Exceptions.--We will not waive any premium if the Insured becomes disabled from:
(1) an injury he causes to himself, or she causes to herself, on purpose; or (2)
sickness or injury due to service on or after the contract date in the armed
forces of any country(ies) at war. The word war means declared or undeclared war
and includes resistance to armed aggression.
Successive Disabilities.--Here is what happens if the Insured has at least one
premium waived while disabled, then gets well so that premium payment resumes,
and then becomes disabled again. In this case, we will not apply the six-month
period that would otherwise be required by Condition (2) and will consider the
second period of disability to be part of the first period unless: (1) the
Insured has done gainful work, for which he or she is reasonably fitted, for at
least six months between the periods; or (2) the Insured became disabled the
second time from an entirely different cause.
If we do not apply the six-month period required by Condition (2), we also will
not count the days when there was no disability as part of the two year period
when disability means the Insured cannot do any of the duties of his or her
regular occupation.
Notice and Proof of Claim.--Notice and proof of any claim must be given to us
while the Insured is living and disabled, or as soon as reasonably possible. If
notice or proof is not given as soon as reasonably possible, we will not waive
any premium due more than one year before the date the notice or proof is given
to us. We may require proof at reasonable times that the Insured is still
disabled. After he or she has been disabled for two years, we will not ask for
proof more than once a year. As a part of any proof, we have the right to
require that the Insured be examined at our expense by doctors of our choice.
Recovery from Disability.--We will stop waiving premiums if (1) disability ends;
or (2) we ask for proof that the Insured is disabled and we do not receive it;
or
(Continued on Next Page)
VL 100
II-115
<PAGE>
(Continued from Preceding Page)
(3) we require that the Insured be examined and he or she fails to do so.
Miscellaneous.--Any premiums that fall due are payable until we approve a claim.
We will refund any premium paid that is later waived. But we will not, of
course, refund any premium or part of a premium that was or is to be returned in
accord with the Premium Adjustment provision in this contract.
There might be unpaid premiums that fall due (1) after disability starts; but
(2) more than one year before we have notice of claim at our Service Office. Or
disability might start in the days of grace of an unpaid premium. In either
case, if we are otherwise able to approve a claim, those unpaid premiums that we
do not waive will be due us with compound interest at 6% a year. If we do not
receive them, we will deduct them with interest from any amount we pay under the
contract.
Any premium we waive will be at the frequency in effect when the Insured becomes
disabled.
If we waive premiums, the effect on this contract will be the same as if the
premiums had been paid in cash. But the Premium Adjustment provision will not
apply to any premium that was not paid because it was waived under this Benefit.
If we owe the Insured a refund of premium but have not paid it before his or her
death, we have the choice of paying the beneficiary for insurance payable upon
the death of the Insured or the Insured's estate.
Benefit Premiums.--The premiums for this Benefit are a part of the contract
premiums due before the first contract anniversary after the Insured's 65th
birthday.
Termination.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day that is the last premium due date in the premium period;
3. the end of the day before the first contract anniversary after the Insured's
65th birthday, unless the Insured has stayed disabled since before the first
contract anniversary after the 60th birthday;
4. the date the contract is surrendered under its Cash Value Option, if it has
one; and
5. the date the contract ends for any other reason.
This Supplementary Benefit rider
attached to this contract on the Contract Date
Pruco Life Insurance Company,
By /s/ ISABELLE L. KIRCHNER
--------------------------------
Secretary
VL 100 Printed in U.S.A.
II-116
- --------------------------------------------------------------------------------
EXHIBIT 1.A(13)(b)
RIDER FOR INSURED'S ACCIDENTAL DEATH BENEFIT
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
Benefit.--We will pay the amount of this Benefit that we show on the Contract
Data page(s) for the Insured's accidental loss of life. But our payment is
subject to all the provisions of the Benefit and of the rest of this contract.
Manner of Payment.--We will include in the proceeds of this contract any payment
under this Benefit.
Conditions.--Both of these conditions must be met: (1) We must receive due proof
that the Insured's death was the direct result, independent of all other causes,
of accidental bodily injury that occurred on or after the contract date. (2) The
death must occur (a) no more than 90 days after the injury; (b) while the
contract is in force with no premium in default past its days of grace; and (c)
before the end of the contract's term, renewal or endowment period, if any.
Exclusions.--We will not pay under this Benefit for death caused or contributed
to by: (1) suicide or attempted suicide while sane or insane; or (2) infirmity
or disease of mind or body or treatment for it; or (3) any infection other than
one caused by an accidental cut or wound.
Even if death is caused by accidental bodily injury, we will not pay for it
under this benefit if it is caused or contributed to by: (1) service in the
armed forces of any country(ies) at war; or (2) war or any act of war; or (3)
travel by, or descent from, any aircraft if the Insured had any duties or acted
in any capacity other than as a passenger at any time during the flight. But we
will ignore (3) if all these statements are true of the aircraft: (a) it has
fixed wings and a permitted gross takeoff weight of at least 75,000 pounds. (b)
It is operated by an air carrier that is certificated under the laws of the
United States or Canada to carry passengers to or from places in those
countries. (c) It is not being operated for any armed forces for training or
other purposes. As used here, the word aircraft includes rocket craft or any
other vehicle for flight in or beyond the earth's atmosphere. The word war means
declared or undeclared war and includes resistance to armed aggression.
Benefit Premiums.--We show the premiums for this Benefit on the Contract Data
page(s).
Termination.--This benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the date the contract is surrendered under its Cash Value Option, if it has
one; and
3. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
This Supplementary Benefit rider
attached to this contract on the Contract Date
Pruco Life Insurance Company,
By /s/ ISABELLE L. KIRCHNER
-----------------------------------------
Secretary
VL 110
II-117
- --------------------------------------------------------------------------------
EXHIBIT 1A(13)(c)
RIDER FOR
TERM INSURANCE BENEFIT ON LIFE OF INSURED-DECREASING AMOUNT
Read the list of Supplementary Benefits on the
Contract Data page(s). This Benefit is a part of
this contract only if it is listed there.
Benefit.--We will pay an amount under this Benefit if we receive due proof that
the Insured died (1) in the term period for the Benefit; and (2) while this
contract is in force with no premium in default past its days of grace. Any
proceeds under this contract that may arise from the Insured's death will
include this amount. But our payment is subject to all the provisions of the
Benefit and of the rest of this contract.
We will use the table below to compute the amount we will pay. We show the
Initial Amount of Term Insurance under this Benefit on the Contract Data
page(s). We also show the term period for the Benefit there. It starts on the
contract date, which we show on the first page. The anniversary at the end of
the term period is part of that period.
TABLE OF AMOUNTS OF INSURANCE
Amounts Payable.--We show here the amount we will pay for each $1,000 of Initial
Amount of Term Insurance if death occurs in the contract year ending with the
anniversary shown.
- ----------------------------------- --------------------------------------
ANNIVERSARY AMOUNT ANNIVERSARY AMOUNT
- ----------------------------------- --------------------------------------
1 $1,000 12 $706
2 986 13 658
3 970 14 603
4 951 15 543
5 931 16 475
6 909 17 400
7 883 18 316
8 855 19 222
9 824 20 200
10 789 BENEFIT EXPIRES
11 750 ON 20TH ANNIVERSARY
- ----------------------------------- --------------------------------------
(Continued on Next Page)
VL 130
II-118
<PAGE>
(Continued from Preceding Page)
CONVERSION TO ANOTHER PLAN OF INSURANCE
Right to Convert.--You may be able to exchange this Benefit for a new contract
of life insurance on the Insured's life in either this company or The Prudential
Insurance Company of America. In any of these paragraphs, when we use the phrase
the company we mean whichever of these companies may issue the new contract. And
where we use the phrase new contract we mean the contract for which the Benefit
may be exchanged. You will not have to prove that the Insured is insurable.
Conditions.--Your right to make this exchange is subject to all these
conditions: (1) The amount we would have paid under this Benefit if the Insured
had died just before the contract date of the new contract must be large enough
to meet the minimum for a new contract, as we describe under Contract
Specifications. (2) You must ask for the exchange in writing and in a form that
meets our needs. (3) You must send this contract to us to be endorsed. (4) We
must have your request and the contract at our Service Office while the Benefit
is in force and at least five years before the end of its term period.
The new contract will not take effect unless the premium for it is paid while
the Insured is living and within 31 days after its contract date. If the premium
is paid as we state, it will be deemed that: (1) the insurance under the new
contract took effect on its contract date; and (2) this Benefit ended just
before that contract date. We will return that part, if any, of the last premium
paid for the Benefit that is more than was needed to pay premiums to that
contract date.
Contract Date.--The date of the new contract will be the date you ask for in
your request. But it may not be after the date to which premiums are paid for
this Benefit. It may not be less than five years before the end of the term
period for the Benefit. And it may not be more than 31 days before we have your
request at our Service Office.
Contract Specifications.--The new contract will be in the same rating class as
this contract. The company will set the issue age and the premiums for the new
contract in accord with its regular rules in use on the date of the new
contract.
The new contract may call for annual premiums. If the company agrees, you will
be able to have premiums fall due more often.
The contract may be either one of the following:
1. A Life Paid Up at Age 85 plan. In this case the new contract will be issued
by The Prudential Insurance Company of America. Its face amount will be the
amount you ask for in your request. But it cannot be less than $10,000 or more
than 80% of the amount we would have paid under this Benefit if the Insured had
died just before the contract date of the new contract. (Since $10,000 is 80% of
$12,500. the amount we would have paid must be at least $12,500 for this
exchange to be possible.)
2. A contract like the one to which this Benefit is attached. Its face amount
will be the amount you ask for in your request. But it cannot be less than
$25,000 or more than 80% of the amount we would have paid under the Benefit if
the Insured had died just before the contract date of the new contract. (Since
$25,000 is 80% of $31,250, the amount we would have paid must be at least
$31,250 for this exchange to be possible.)
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next two paragraphs. If this contract has a benefit for
waiving premiums in the event of disability and the company would include that
kind of benefit in other contracts like the new contract, the company will put
the benefit in the new contract. The benefit, if any, in the new contract will
be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan and for the same rating class, amount, issue age and sex.
A benefit for waiving premiums that would have been allowed under this contract,
and that would otherwise be allowed under the new contract, will not be denied
just because disability started before the contract date of the new contract.
But any premium to be waived for that disability under the new contract must be
at the frequency that was in effect for this contract when the disability
started.
No premium will be waived under the new contract unless it has a benefit for
waiving premiums in the event of disability. This will be so even if premiums
have been waived under this contract.
Changes.--You may be able to have this Benefit changed to a new contract of life
insurance other than in accord with the requirements for exchange that we state
above. But any change may be made only if the company consents, and will be
subject to conditions and charges that are then determined.
(Continued on Next Page)
VL 130
II-119
<PAGE>
(Continued from Preceding Page)
MISCELLANEOUS PROVISIONS
Benefit Premiums.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the contract anniversary at the end of the term period for
the Benefit.
Termination.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the last day before the contract date of any other contract (a)
for which the Benefit is exchanged, or (b) to which the Benefit is changed;
3. the date the contract is surrendered under its Cash Value Option, if it has
one; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company,
By /s/ ISABELLE L. KIRCHNER
--------------------------------------------
Secretary
VL 130 Printed in U.S.A.
II-120
EXHIBIT A(13)(d)
RIDER FOR
OPTION TO PURCHASE ADDITIONAL INSURANCE
ON LIFE OF INSURED
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
Benefit.--You have the right under this Benefit to buy more insurance on the
Insured's life in either this company or The Prudential Insurance Company of
America. You may do this for certain normal option dates and advance option
dates, as we explain below. You will not have to prove that the Insured is
insurable. We will provide term insurance for a period before any advance option
dates as we state under Term Insurance below. But these promises are subject to
all the provisions of the Benefit and of the rest of this contract.
In any of these paragraphs when we use the phrase the company we mean whichever
of these companies may issue the new contract.
Normal Option Dates.--These are the anniversaries of this contract on which the
Insured's attained age is 25, 28, 31, 34, 37, 40, 43, 46, 49 and 52.
You may buy a new contract for each normal option date if these four statements
apply: (1) You have not used your right for that date by buying a new contract
on an advance option date (we explain this below). (2) The Insured signs an
application for the new contract, and you sign it, too, if you are not the
Insured. (3) We receive the application and the first premium, less the premium
credit that we describe below, at our Service Office not more than 31 days after
the normal option date. (4) On the normal option date, or, if later, the date we
receive the application, the Insured is living and this contract is in force
with no premium in default past its days of grace. The new contract will take
effect on the later of those two dates. That date will be its contract date.
Your right to buy the new contract will end on the 31st day after the normal
option date. But this will not change your right to buy a new contract for any
later normal or advance option date.
Advance Option Dates.--Except as we state in the next paragraph, an advance
option date is the date three months after any of these events:
1. The Insured's marriage.
2. While the Insured is living, the birth of a live child of the Insured for
whom the Insured accepts legal responsibility.
3. The Insured's legal adoption of a child.
But the event must take place (1) on or after the later of the date of this
contract and the date of Part 1 of its application; and (2) not later than the
date that is one month before the contract anniversary on which the Insured's
attained age is 52. If the event takes place less than three months before that
anniversary, the related advance option date will be that anniversary and not
the date three months after the event.
You may buy a new contract for each advance option date if these four statements
apply: (1) The Insured signs an application for the new contract, and you sign
it, too, if you are not the Insured. (2) We receive the application and the
first premium, less the premium credit that we describe below, at our Service
Office not later than the advance option date. (3) The Insured is living on the
advance option date. (4) This contract is in force on that date, with no premium
in default past its days of grace. The new contract will take effect on the
advance option date. That will be its contract date.
Your right to buy the new contract will end on the advance option date. But this
will not change your right to buy a new contract for any later normal or advance
option date.
Each time you buy a new contract for an advance option date, you will have used
your right to buy a new contract for the next normal option date, if any, for
which you could otherwise have bought one. But even if you have used your right
to buy for all normal option dates, advance option dates may still occur as we
state above. If the company lets you combine two or more new contracts you can
buy under this Benefit into one, you will use your right to buy new contracts
for the same number of future normal option dates as if the new contracts had
not been combined.
(Continued on Next Page)
VL 140
II-121
<PAGE>
(Continued from Preceding Page)
Term Insurance.--For each event that gives rise to an advance option date, we
will provide term insurance on the Insured's life. But this contract must be in
force with no premium in default past its days of grace, The term insurance will
be automatic. There is no need to ask for it. Its amount will be the option
amount. We will pay that amount if the Insured dies on or after the date of the
event but before (1) the advance option date; or (2) the date this Benefit ends,
if sooner. We will include it in the proceeds of this contract. But if this
contract limits or excludes war or aviation risks, the term insurance will limit
or exclude them in the same way.
Contract Specifications.--The new contract you buy for a normal option date or
advance option date will be in the same rating class as this contract.
If this contract limits or excludes war or aviation risks, the company will have
the right to limit or exclude them in the new contract, too. If the company does
so, the provision in the new contract will be the same one the company puts in
other contracts like the new one on its contract date. The company will set the
issue age and the premiums for the new contract in accord with its regular rules
in use on the date of the new contract.
The new contract may call for annual premiums. If the company agrees, you will
be able to have premiums fall due more often.
If the option amount for this Benefit which we show on the Contract Data page(s)
is $25,000 or more, the new contract may be either of those we describe in
paragraphs 1 and 2 below. If the option amount is less than $25,000 the new
contract can only be the one we describe in paragraph 1.
1. A Life Paid Up at Age 85 plan. In this case the new contract will be
issued by The Prudential Insurance Company of America. Its face amount will be
the amount you ask for in your request. But it cannot be less than $10,000, or
more than the option amount for this Benefit.
2. A contract like the one to which this Benefit is attached. Its face amount
will be the amount you ask for in your request. But it cannot be less than
$25,000 or more than the option amount for this Benefit.
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next three paragraphs. If this contract has a benefit for
waiving premiums in the event of disability and the company would include that
kind of benefit in other contracts like the new contract, the company will put
the benefit in the new contract.
A benefit for waiving premiums that would have been allowed under this contract,
and that would otherwise be allowed under the new contract will not be denied
just because disability started before the contract date of the new contract.
But any premium to be waived for that disability under the new contract must be
at the frequency that was in effect for this contract when the disability
started.
No premium will be waived under the new contract unless it has a benefit for
waiving premiums in the event of disability. This will be so even if premiums
have been waived under this contract.
If this contract has an accidental death benefit, and the company would
regularly issue contracts like the new contract with either that benefit or an
accidental death and dismemberment benefit, the company will put that kind of
benefit in the new contract, as stated in General below. But (1) you must ask
for it when you apply for the new contract: and (2) the amount of any accidental
death benefit in the new contract will not be more than the face amount of the
new contract.
General.--Any benefit for waiving premiums and any accidental death benefit or
accidental death and dismemberment benefit in the new contract will be the same
one, with the same provisions, that the company puts in other contracts like it
on its contract date. In any of these paragraphs, when we use the phrases other
contracts like it and other contracts like the new contract, we mean contracts
the company would regularly issue on the same plan and for the same rating
class, amount, issue age and sex.
You may be able to buy a new contract of life insurance other than in accord
with the requirements that we state above. But this may be done only if the
company consents, and will be subject to conditions and charges that are then
determined.
(Continued on Next Page)
VL 140
II-122
<PAGE>
(Continued from Preceding Page)
Premium Credit.--A premium credit will be allowed on the first premium for the
new contract. The credit will be at least $1 for each full $1,000 of face amount
of the new contract. If (1) the new contract calls for premiums to be paid more
often than annually; and (2) the credit would be more than that first premium,
you may choose to have premiums paid less often to get the full credit.
Benefit Premiums.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the contract anniversary on which the Insured's attained
age is 52 or on the anniversary at the end of the premium period, if sooner.
Termination.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the 31st day after the contract anniversary on which the Insured's attained
age is 52;
3. the date the contract is surrendered under its Cash Value Option, if it has
one; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
This Supplementary Benefit rider
attached to this contract on the Contract Date
Pruco Life Insurance Company,
By /s/ SPECIMEN
-------------------------
Secretary
VL 140
II-123
EXHIBIT 1.A.(13)(e)
RIDER FOR
INTERIM TERM INSURANCE BENEFIT
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
Benefit.--We will pay the beneficiary an amount under this Benefit if we receive
due proof that the Insured died on or after the date of the Benefit but before
the contract date. But our payment is subject to the provisions of the Benefit
and of the rest of this contract. The amount of the Benefit is equal to the
amount of insurance provided by the contract on the contract date. We show the
contract date and the date of the Benefit on the Contract Data page(s).
Changes in Contract Provisions.--This contract has a Suicide Exclusion and an
Incontestability provision. In each of them, we refer to a period of time that
extends from the issue date. But for each of them we will count the time from
the date of this Benefit, not from the issue date.
This contract might have a benefit for waiving premiums in the event of
disability; it might have one that provides accidental death coverage. If so, we
might refer in either or both of those benefits to the contract date. But we
will use the date of this Benefit, not the contract date.
This contract might be a term life contract that provides for monthly payments
if the Insured dies in the term period. Or the contract might be one that has a
family income benefit. In either case, if we settle a claim under this Interim
Term Insurance Benefit, we will do so as if the term period had begun on the
date the Insured died, not on the contract date. But we will make no more
payments than we would have made if the Insured had died on the contract date.
The first contract premium is due on the contract date. We will grant 31 days of
grace for paying it. This will be so even though we state otherwise under Grace
Period.
Except for the changes we describe above, all the provisions of this contract
will be in effect on and after the contract date if the Insured is then living,
as if the contract did not have this Benefit. The Benefit will not make any
contract value or any endowment that may be provided by the contract, available
any sooner.
Benefit Premium.--We show the premium for this Benefit on the Contract Data
page(s). This premium is to be paid on or before the date of the Benefit. It is
not the premium for the contract. Neither the Benefit nor the premium for it
provides any insurance or changes the number or amount of premiums payable, on
or after the contract date.
Premium Adjustment.--The Insured might die before the contract date. If so, we
will return that part of the premium for this Benefit that is more than was
needed to pay for the Benefit through the date of death. We will add the amount
we return to the amount we would otherwise pay under the Benefit.
THIS SUPPLEMENTARY BENEFIT RIDER ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company,
By /s/ ISABELLE L. KIRCHNER
Secretary
VL 160 Printed in U.S.A.
II-124
EXHIBIT 1.A(13)(f)
RIDER FOR TERM INSURANCE BENEFIT ON LIFE OF
INSURED SPOUSE -- DECREASING AMOUNT
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
Benefit.--We will pay an amount under this Benefit if we receive due proof that
the insured spouse died (1) in the term period for the Benefit; and (2) while
this contract is in force with no premium in default past its days of grace. We
will pay this amount to the beneficiary for insurance payable upon the insured
spouse's death. But our payment is subject to all the provisions of the Benefit
and of the rest of this contract. The phrase insured spouse means the Insured's
spouse named in the application for this contract.
We will use the table below to compute the amount we will pay. We show the
Initial Amount of Term Insurance under this Benefit on the Contract Data
page(s). We also show the term period for the Benefit there. It starts on the
contract date, which we show on the first page. The anniversary at the end of
the term period is part of that period.
TABLE OF AMOUNTS OF INSURANCE
Amounts Payable.--We show here the amount we will pay for each $1,000 of Initial
Amount of Term Insurance if death occurs in the contract year ending with the
anniversary shown.
------------------------------------------------------------
ANNIVERSARY AMOUNT ANNIVERSARY AMOUNT
----------- ------ ----------- ------
1 $1,000 12 $706
2 986 13 658
3 970 14 603
4 951 15 543
5 931 16 475
6 909 17 400
7 883 18 316
8 855 19 222
9 824 20 200
10 789 BENEFIT EXPIRES
11 750 ON 20TH ANNIVERSARY
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VL 180 20 YEARS
II-125
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PAID-UP INSURANCE
Paid-up Insurance on Life of Insured Spouse.--The Insured might die (1) in the
term period for this Benefit; (2) while this contract is in force with no
premium in default past its days of grace; and (3) while the insured spouse is
living. In this case, the insurance on the life of the insured spouse under the
Benefit will become paid-up term insurance for decreasing amounts. We will
compute these amounts from the Table of Amounts of Insurance. While the paid-up
insurance is in effect, the contract will remain in force until the end of the
term period for the Benefit. The paid-up insurance will have cash values but no
loan value.
If this Benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance.
But, within 30 days after a contract anniversary, the net cash value will not be
less than it was on that anniversary. We base this net cash value on the insured
spouse's age and sex. The insured spouse's age at any time will be his or her
age last birthday on the contract date plus the length of time since that date.
We use the Commissioners 1980 Standard Ordinary Mortality Table. We use
continuous functions based on age last birthday. We use an effective interest
rate of 4% a year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days. we will pay
interest at the rate of 3% a year. If we are asked for the values which apply,
we will furnish them.
CONVERSION TO ANOTHER PLAN OF INSURANCE
Right to Convert.--While the Insured is living, you may be able to exchange this
Benefit for a new contract of life insurance on the life of the insured spouse
in either this company or The Prudential Insurance Company of America. In any of
these paragraphs, when we use the phrase the company we mean whichever of these
companies may issue the new contract. And where we use the phrase new contract
we mean the contract for which the Benefit may be exchanged. You will not have
to prove that the insured spouse is insurable.
Conditions.--Your right to make this exchange is subject to all these
conditions: (1) The amount we would have paid under this Benefit if the insured
spouse had died just before the contract date of the new contract must be large
enough to meet the minimum for a new contract, as we describe under Contract
Specifications. (2) You must ask for the exchange in writing and in a form that
meets our needs. (3) You must send this contract to us to be endorsed. (4) We
must have your request and the contract at our Service Office while the Benefit
is in force and at least five years before the end of its term period.
The new contract will not take effect unless the premium for it is paid while
the insured spouse is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that: (1) the insurance under the
new contract took effect on its contract date; and (2) this Benefit ended just
before that contract date. We will return that part, if any, of the last premium
paid for the Benefit that is more than was needed to pay premiums to that
contract date.
Contract Date.--The date of the new contract will be the date you ask for in
your request. But it may not be after the date to which premiums are paid for
this Benefit. It may not be less than five years before the end of the term
period for the Benefit. And it may not be more than 31 days before we have your
request at our Service Office.
Contract Specifications.--The new contract will be in the standard rating class.
The company will set the issue age and the premiums for the new contract in
accord with its regular rules in use on the date of the new contract.
The new contract may call for annual premiums. If the company agrees, you will
be able to have premiums fall due more often.
The contract may be either one of the following:
1. A Life Paid Up at Age 85 plan. In this case the new contract will be issued
by The Prudential Insurance Company of America. Its face amount will be the
amount you ask for in your request. But it cannot be less than $10,000 or more
than 80% of the amount we would have paid under this Benefit if the insured
spouse had died just before the contract date of the new contract. (Since
$10,000 is 80% of $12,500, the amount we would have paid must be at least
$12,500 for this exchange to be possible.)
2. A contract like the one to which this Benefit is attached. Its face amount
will be the amount you ask for in your request. But it cannot be less than
$25,000 or more than 80% of the amount we would have paid under the Benefit if
the insured spouse had died just before the contract date of the new contract.
(Since $25,000 is 80% of $31,250, the amount we would have paid must be at least
$31,250 for this exchange to be possible.)
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next
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VL 180
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paragraph. If the company would include in other contracts like the new contract
a benefit for waiving premiums in the event of disability, here is what the
company will do. Even though this contract does not have that benefit on the
life of the insured spouse, the company will put it in the new contract on his
or her life. The benefit, if any, in the new contract will be the same one, with
the same provisions, that the company puts in other contracts like it on its
contract date. In this paragraph, when we use the phrase other contracts like
it, we mean contracts the company would regularly issue on the same plan and for
the same rating class, amount, issue age and sex.
No premium will be waived under the new contract unless the disability started
on or after its contract date. And no premium will be waived under a new
contract unless it has a benefit for waiving premiums in the event of
disability. This will be so even if premiums have been waived under this
contract.
Changes.--You may be able to have this Benefit changed to a new contract of life
insurance other than in accord with the requirements for exchange that we state
above. But any change may be made only if the company consents, and will be
subject to conditions and charges that are then determined.
MISCELLANEOUS PROVISIONS
Ownership and Control.--Unless we endorse this contract to say otherwise, while
the Insured is living the owner alone may exercise all ownership and control of
this contract. This includes, but is not limited to, these rights: (1) to assign
the contract; and (2) to change any subsequent owner. A request for such a
change must be in writing to us at our Service Office and in a form that meets
our needs. The change will take effect only when we endorse the contract to show
it.
Unless we endorse this contract to say otherwise:
(1) while any insurance is in force after the Insured's death, the owner of the
contract will be the insured spouse; and (2) the owner alone will be entitled to
(a) any contract benefit and value, and (b) the exercise of any right and
privilege granted by the contract or by us. But any insurance payable upon the
Insured's death will be payable to the beneficiary for that insurance.
Beneficiary.--The word beneficiary where we use it in this contract without
qualification means the beneficiary for insurance payable upon the death of the
Insured.
Unless we endorse this contract to say otherwise, the beneficiary for insurance
payable upon the death of the insured spouse will be the Insured if living,
otherwise the estate of the insured spouse.
The beneficiary for insurance payable upon the death of the insured spouse may
be changed. The request must be in writing and in a form that meets our needs.
It will take effect only when we file it at our Service Office; this will be
after the contract is sent to us to be endorsed, if we ask for it. Then any
previous beneficiary's interest in such insurance will end as of the date of the
request. It will end then even if the insured spouse is not living when we file
the request. Any beneficiary's interest is subject to the rights of any assignee
of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
Misstatement of Age or Sex.--If the insured spouse's stated age or sex or both
are not correct, we will change each benefit and any amount payable to what the
premium would have bought for the correct age and sex.
Suicide Exclusion.--If the insured spouse, whether sane or insane, dies by
suicide within the period which we state in the Suicide Exclusion under General
Provisions, we will not pay the amount we describe under Benefit above. Instead,
we will pay no more than the sum of the premiums paid for this Benefit. We will
make that payment in one sum.
Reinstatement.--If this contract is reinstated, it will not include the
insurance that we provide under this Benefit on the life of the insured spouse
unless we are given any facts we need to satisfy us that the insured spouse is
insurable for the Benefit.
Contract Value Options.--If this contract has a Contract Value Options
provision, it will apply only during the Insured's lifetime. Any extended or
reduced paid-up insurance that may be described there is on the life of the
Insured only.
Contract Loans.--If this contract has a Loans provision, we will not consider
any contract debt when we determine the amount payable, if any, at the death of
the insured spouse.
Incontestability.--Except for non-payment of premium, we will not contest this
Benefit after it has been in force during the insured spouse's lifetime for two
years from the issue date.
Benefit Premiums.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the
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VL 180
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earliest of (1) the death of the Insured, (2) the death of the insured spouse,
and (3) the contract anniversary at the end of the term period for the Benefit.
Termination.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the last day before the contract date of any other contract (a)
for which the Benefit is exchanged, or (b) to which the Benefit is changed;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the Benefit is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
This Supplementary Benefit rider
attached to this contract on the Contract Date
Pruco Life Insurance Company,
By /s/ ISABELLE L. KIRCHNER
--------------------------
Secretary
VL 180 Printed in U.S.A.
II-128
EXHIBIT A(13)(g)
RIDER FOR
LEVEL TERM INSURANCE BENEFIT ON DEPENDENT CHILDREN
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
Benefit.--We will pay an amount under this Benefit if we receive due proof that
a dependent child died (1) before the term insurance provided by the Benefit on
his or her life ends; and (2) while this contract is in force with no premium in
default past its days of grace. But our payment is subject to all the provisions
of the Benefit and of the rest of this contract.
The phrase dependent child means the Insured's child, stepchild or legally
adopted child who (1) has reached the 15th day of life; and (2) has not reached
the first contract anniversary after his or her 25th birthday; and either (3) is
named in the application for this contract and on the date of the application
has not reached his or her 18th birthday; or (4) is acquired by the Insured
after the date of the application but before the child's 18th birthday.
We show the amount of term insurance under this Benefit on the Contract Data
page(s). The insurance on each dependent child's life will end on the earlier
of: (1) the day before the first contract anniversary after the child's 25th
birthday; and (2) the day before the first contract anniversary after the
Insured's 65th birthday.
PAID-UP INSURANCE
Paid-up Insurance on Dependent Children.--The Insured might die while this
contract is in force with no premium in default past its days of grace. In this
case, any term insurance provided by this Benefit on a dependent child's life
will become paid-up term insurance. While this paid-up insurance is in effect,
the contract will remain in force. The paid-up insurance will have cash values
but no loan value.
If this Benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance.
But, within 30 days after a contract anniversary, the net cash value will not be
less than it was on that anniversary. To compute this net cash value, we use the
Commissioners 1980 Standard Ordinary Mortality Table. We use continuous
functions based on age last birthday. We use an effective interest rate of 4% a
year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days, we will pay
interest at the rate of 3% a year. If we are asked for the values which apply,
we will furnish them.
CONVERSION OF INSURANCE ON DEPENDENT CHILDREN
Right to Convert.--lf the insurance on a dependent child ends as we state in the
last paragraph under Benefit above, that child may be able to obtain a new
contract of life insurance on his or her life, in either this company or The
Prudential Insurance Company of America. In any of these paragraphs, when we use
the phrase the company we mean whichever of these companies may issue the new
contract. It will not be necessary to prove that the child is insurable.
Conditions.--The right to obtain a new contract is subject to all these
conditions: (1) The insurance on the child must end while this contract is in
force with no premium in defauit past its days of grace. (2) The amount of the
new contract must meet the minimum as we describe under Contract Specifications.
(3) We must have a written application for the new contract at our Service
Office no later than the date the insurance on the child ends.
The new contract will not take effect unless the premium for it is paid while
the child is living and within 31 days after its contract date. If the premium
is paid as we state, it will be deemed that the insurance under the new contract
took effect on its contract date.
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VL 182
II-129
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Contract Date.--The date of the new contract will be the day after the date the
insurance on the dependent child ends.
Contract Specifications.--The new contract will be in the standard rating class.
The company will set the issue age and the premiums for the new contract in
accord with its regular rules in use on the date of the new contract.
The new contract may call for annual premiums. If the company agrees, the owner
of the new contract will be able to have premiums fall due more often.
The contract may be either one of the following:
1. A contract like the one to which this Benefit is attached. Its face amount
will be the amount asked for in the application. But it cannot be less than
$25,000 or more than five times the amount of insurance on the child's life
under the Benefit.
2. A Life Paid Up at Age 85 plan (Life Paid Up at Age 65 plan if the issue age
for the new contract is less than 15 years). In this case the new contract will
be issued by The Prudential Insurance Company of America. Its face amount will
be the amount asked for in the application. But it cannot be less than $5,000 or
more than five times the amount of insurance on the child's life under this
Benefit.
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next paragraph. If the company would include in other
contracts like the new contract a benefit for waiving premiums in the event of
disability, here is what the company will do. Even though this contract does not
have that benefit on the life of that child, the company will put it in the new
contract on his or her life. The benefit, if any, in the new contract will be
the same one, with the same provisions, that the company puts in other contracts
like it on its contract date. In this paragraph, when we use the phrase other
contracts like it, we mean contracts the company would regularly issue on the
same plan and for the same rating class, amount, issue age and sex.
No premium will be waived under the new contract unless the disability started
on or after its contract date. And no premium will be waived under a new
contract unless it has a benefit for waiving premiums in the event of
disability. This will be so even if premiums have been waived under this
contract.
Changes.--If the insurance on a dependent child ends as we state in the last
paragraph under Benefit above, that child may be able to obtain a new contract
of life insurance other than in accord with the requirements we state in this
form. But this kind of change may be made only if the company consents and will
be subject to conditions and charges that are then determined.
MISCELLANEOUS PROVISIONS
Beneficiary.--The word beneficiary where we use it in this contract without
qualification means the beneficiary for insurance payable upon the death of the
Insured.
Unless we endorse this contract to say otherwise, these two statements will
apply: (1) The beneficiary for insurance payable upon the death of a dependent
child will be the Insured if living, otherwise the beneficiary for this
insurance named in the application. (2) If no such beneficiary is living when
insurance under this Benefit becomes payable, we will make the payment in one
sum to the estate of the later to die of the Insured and such beneficiary.
The beneficiary for insurance payable upon the death of a dependent child may be
changed. The request must be in writing and in a form that meets our needs. It
will take effect only when we file it at our Service Office; this will be after
the contract is sent to us to be endorsed, if we ask for it. Then any previous
beneficiary's interest in such insurance will end as of the date of the request.
It will end then even if the child is not living when we file the request. Any
beneficiary's interest is subject to the rights of any assignee of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
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VL 182
II-130
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(Continued from Preceding Page)
Reinstatement.--If this contract is reinstated, it will not include the
insurance that we provide under this Benefit on the dependent children unless
you give us any facts we need to satisfy us that each child who is to be insured
on or within 15 days after the date of reinstatement is insurable for the
Benefit. If you do not give us the facts we need for any child, the Benefit may
be reinstated if all the other conditions are met to reinstate the contract. But
you must send the contract to us to be endorsed to show that the child is not
insured under the Benefit.
Contract Value Options.--If this contract has a Contract Value Options
provision, it will apply only during the Insured's lifetime. Any extended or
reduced paid-up insurance that may be described there is on the life of the
Insured only.
Contract Loans.--If this contract has a Loans provision, we will not consider
any contract debt when we determine the amount payable, if any, at the death of
a dependent child.
Incontestability.--Except for non-payment of premium, we will not contest this
Benefit with respect to the insurance on any dependent child's life after it has
been in force during the child's lifetime for two years from the issue date.
Benefit Premiums.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the earlier of the date of the Insured's death and the
first contract anniversary after the Insured's 65th birthday.
Termination.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day before the first contract anniversary after the Insured's
65th birthday;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the Benefit is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
This Supplementary Benefit rider attached to this contract on the Contract Date
Pruco Life Insurance Company,
By /s/ ISABELLE L. KIRCHNER
Secretary
VL 182
II-131
EXHIBIT 1.A.(13)(h)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------------ ---------------------------------
This contract was reinstated on the date of this rider. But we did not have the
facts we needed to satisfy us that the child, _______________________________,
whose date of birth is ___________________________, was insurable. Therefore,
that child will not be insured under this contract on or after the date of this
rider. This will be so even though the contract or an application related to it
may refer to the child. This will still be so if you apply to reinstate the
contract again in the future and you then refer to the child.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
Date Attest
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PLY 21--82
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II-132
EXHIBIT 1.A.(13)(i)
Pruco Life Insurance Company
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------------- ---------------------------------
This contract was reinstated on the date of this rider. But we did not have the
facts we needed to satisfy us that the child, _______________________________,
whose date of birth is ___________________________, was insurable. Therefore,
that child will not be insured under this contract on or after the date of this
rider. This will be so even though the contract or an application related to it
may refer to the child. This will still be so if you apply to reinstate the
contract again in the future and you then refer to the child.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company
By /s/ SPECIMEN
Secretary
Date Attest
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- -----------
PLIY 13--82
- -----------
II-133
EXHIBIT 1.A.(13)(j)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------ --------------------------------------
LEVEL TERM INSURANCE BENEFIT ON DEPENDENT CHILDREN
BENEFIT.--We will pay $___________________ under this Benefit if we receive due
proof that a dependent child died (1)on or after ____________________________;
(2) before the term insurance provided by the Benefit on his or her life ends;
and (3) while this contract is in force with no premium in default past its days
of grace. But our payment is subject to all the provisions of the Benefit and of
the rest of this contract.
The phrase dependent child means the Insured's child, stepchild or legally
adopted child who (1) has reached the 15th day of life; and (2) has not reached
the first contract anniversary after his or her 25th birthday; and either (3) is
named in the request for this rider, which is attached to and made a part of
this contract; and on the date of the request has not reached his or her 18th
birthday; or (4) is acquired by the Insured after the date of the request but
before the child's 18th birthday.
The insurance on each dependent child's life will end on the earlier of: (1) the
day before the first contract anniversary after the child's 25th birthday; and
(2) the day before the first contract anniversary after the Insured's 65th
birthday.
BENEFIT PREMIUMS.--We grant this Benefit in consideration of: (1) payment now of
an extra premium of $_______________ and (2) payment on and after ______________
of an extra ___________________ premium of $_________________. This latter
amount will be added to, due at the same time as, and subject to the same
conditions of payment and adjustment as the contract premiums due on and after
that date.
Neither this Benefit nor the extra premium charged for it will change any loan
or contract value which may be in this contract. But if the contract has a
benefit for waiving premiums in the event of disability, that benefit will apply
to the extra premium charged for this Benefit.
The premiums for this Benefit will stop on the earlier of the date of the
Insured's death and the first contract anniversary after the Insured's 65th
birthday.
PAID-UP INSURANCE
PAID-UP INSURANCE ON DEPENDENT CHILDREN.--The Insured might die while this
contract is in force with no premium in default past its days of grace. In this
case, any term insurance provided by this Benefit on a dependent child's life
will become paid-up term insurance. While this paid-up insurance is in effect,
the contract will remain in force. The paid-up insurance will have cash values
but no loan value.
If this Benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance.
But, within 30 days after a contract anniversary, the net cash value will not be
less than it was on that anniversary. To compute this net cash value, we use the
Commissioners 1980 Standard Ordinary Mortality Table. We use continuous
functions based on age last birthday. We use an effective interest rate of 4% a
year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days, we will pay
interest at the rate of 3% a year. If we are asked for the values which apply,
we will furnish them.
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PLY 16--82
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CONVERSION OF INSURANCE ON DEPENDENT CHILDREN
RIGHT TO CONVERT.--If the insurance on a dependent child ends as we state in the
last paragraph under Benefit above, that child may be able to obtain a new
contract of life insurance on his or her life, in either this companv or The
Prudential Insurance Company of America. In any of these paragraphs, when we use
the phrase the company we mean whichever of these companies may issue the new
contract. It will not be necessary to prove that the child is insurable.
CONDITIONS.--The right to obtain a new contract is subject to all these
conditions: (1) The insurance on the child must end while this contract is in
force with no premium in default past its days of grace. (2) The amount of the
new contract must meet the minimum as we describe under Contract Specifications.
(3) We must have a written application for the new contract at our Service
Office no later than the date the insurance on the child ends.
The new contract will not take effect unless the premium for it is paid while
the child is living and within 31 days after its contract date. If the premium
is paid as we state, it will be deemed that the insurance under the new contract
took effect on its contract date.
CONTRACT DATE.--The date of the new contract will be the day after the date the
insurance on the dependent child ends.
CONTRACT SPECIFICATIONS.--The new contract will be in the standard rating class.
The company will set the issue age and the premiums for the new contract in
accord with its regular rules in use on the date of the new contract.
We will endorse the new contract to show that the period we state in its
Incontestability provision will start on the date coverage of the child began
under this Benefit. But if this contract was reinstated after the date the
coverage began but before the date of the new contract, that period will start
on the date of the most recent reinstatement. We will have the right to use the
statements that were made to us as the basis for reinstatement to contest the
new contract. The period during which we will have that right will be the period
we state in the Incontestability provision of the new contract.
We will endorse the new contract to show that the period we state in its Suicide
Exclusion provision will start on the date coverage of the child began under
this Benefit. The new contract may call for annual premiums. If the company
agrees, the owner of the new contract will be able to have premiums fall due
more often.
The contract may be either one of the following:
1. A contract like the one to which this Benefit is attached. Its face amount
will be the amount asked for in the application. But it cannot be less than
$25,000 or more than five times the amount of insurance on the child's life
under the Benefit.
2. A Life Paid Up at Age 85 plan (Life Paid Up at Age 65 plan if the issue age
for the new contract is less than 15 years). In this case the new contract will
be issued by The Prudential Insurance Company of America. Its face amount will
be the amount asked for in the application. But it cannot be less than $5,000 or
more than five times the amount of insurance on the child's life under this
Benefit.
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next paragraph. If the company would include in other
contracts like the new contract a benefit for waiving premiums in the event of
disability, here is what the company will do. Even though this contract does
not have that benefit on the life of that child, the company will put it in the
new contract on his or her life. The benefit, if any, in the new contract will
be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan and for the same rating class, amount, issue age and sex.
No premium will be waived under the new contract unless the disability started
on or after its contract date. And no premium will be waived under a new
contract unless it has a benefit for waiving premiums in the event of
disability. This will be so even if premiums have been waived under this
contract.
CHANGES.--If the insurance on a dependent child ends as we state in the last
paragraph under Benefit above, that child may be able to obtain a new contract
of life insurance other than in acccord with the requirements we state in this
form. But this kind of change may be made only if the company consents and will
be subject to conditions and charges that are then determined.
(Continued on Next Page)
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PLY 16--82
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MAXIMUM TOTAL AMOUNT OF INSURANCE ALLOWED BY LAW
A dependent child might die when his or her age is less than 14 years and six
months. And there might be other life insurance, with us or other companies,
payable on the child's life under a contract(s) that was issued and dated before
the insurance for the child took effect under this Benefit. If so, the most we
could pay under this Benefit for that death is the excess of (1) the maximum
that is allowed to be paid in accord with the Table below, over (2) the amount
of the insurance on the child's life under (all) the other contract(s). If the
amount of insurance on the child's life under this Benefit is greater than that
excess, we will reduce it by the difference, with appropriate adjustment of the
premium as filed with the Superintendent of Insurance of New York.
If the insurance under this Benefit is more than we would be allowed to pay upon
a dependent child's death, you may wish to have us reduce it to what we could
pay, with appropriate adjustment of the premium as filed with the Superintendent
of Insurance of New York. To do so, you must ask us in writing and in a form
that meets our needs. You must also send the contract to us to be endorsed.
When we compute insurance under this or other contracts we will not include (1)
return premium benefits; (2) dividend additions; or (3) benefits that are paid
only for death by accident.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
DEPENDENT CHILD'S AGE MAXIMUM AMOUNT ALLOWED
AT DEATH
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Less than four years and $5,000 or, if more, 25% of the amount of life insurance in force on the life of the
six months Insured on the date the insurance for the child takes effect under this Benefit.
Four years and six months $10,000 or, if more, 50% of the amount of the life insurance in force on the life of the
or more, but less than Insured on the date the insurance for the child takes effect under this Benefit.
fourteen years and six months
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for Company,
By /s/ [SPECIMEN]
Secretary
Date Attest
---------------------------------------------------
- ----------
PLY 16--82 Printed in U.S.A.
- ----------
II-136
<PAGE>
(Continued from Preceding Page)
MISCELLANEOUS PROVISIONS
BENEFICIARY.--The word beneficiary where we use it in this contract without
qualification means the beneficiary for insurance payable upon the death of the
Insured.
Unless we endorse this contract to say otherwise, the beneficiary for insurance
payable upon the death of a dependent child will be the Insured if living,
otherwise the estate of the Insured.
The beneficiary for insurance payable upon the death of a dependent child may be
changed. The request must be in writing and in a form that meets our needs. It
will take effect only when we file it at our Service Office; this will be after
the contract is sent to us to be endorsed, if we ask for it. Then any previous
beneficiary's interest in such insurance will end as of the date of the request.
It will end then even if the child is not living when we file the request. Any
beneficiary's interest is subject to the rights of any assignee of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
REINSTATEMENT.--If this contract is reinstated, it will not include the
insurance that we provide under this Benefit on the dependent children unless
you give us any facts we need to satisfy us that each child who is to be insured
on or within 15 days after the date of reinstatement is insurable for the
Benefit. If you do not give us the facts we need for any child, the Benefit may
be reinstated if all the other conditions are met to reinstate the contract. But
you must send the contract to us to be endorsed to show that the child is not
insured under the Benefit.
CONTRACT VALUE OPTIONS.--If this contract has a Contract Value Options
provision, it will apply only during the Insured's lifetime. Any extended or
reduced paid-up insurance that may be described there is on the life of the
Insured only.
CONTRACT LOANS.--If this contract has a Loans provision, we will not consider
any contract debt when we determine the amount payable, if any, at the death of
a dependent child.
INCONTESTABILITY.--Except for non-payment of premium, we will not contest this
Benefit with respect to the insurance on any dependent child's life after it has
been in force during the child's lifetime for two years from the date we show in
the first sentence under Benefit above.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day before the first contract anniversary after the Insured's
65th birthday;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the Benefit is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
(Continued on Next Page)
- ----------
PLY 16--82
- ----------
II-137
EXHIBIT 1.A.(13)(k)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ---------------------------------------------- -----------------------------
LEVEL TERM INSURANCE BENEFIT ON DEPENDENT CHILDREN
BENEFIT.--We will pay $____________________ under this Benefit if we receive due
proof that a dependent child died (1) on or after ____________________________;
(2) before the term insurance provided by the Benefit on his or her life ends;
and (3) while this contract is in force with no premium in default past its days
of grace. But our payment is subject to all the provisions of the Benefit and of
the rest of this contract.
The phrase dependent child means the Insured's child, stepchild or legally
adopted child who (1) has reached the 15th day of life; and (2) has not reached
the first contract anniversary after his or her 25th birthday; and either (3) is
named in the request for this rider, which is attached to and made a part of
this contract; and on the date of the request has not reached his or her 18th
birthday; or (4) is acquired by the Insured after the date of the request but
before the child's 18th birthday.
The insurance on each dependent child's life will end on the earlier of: (1) the
day before the first contract anniversary after the child's 25th birthday; and
(2) the day before the first contract anniversary after the Insured's 65th
birthday.
BENEFIT PREMIUMS.--We grant this Benefit in consideration of: (1) payment now of
an extra premium of $______________________ and (2) payment on and after
_______________________________ of an extra ____________________ premium of
$____________. This latter amount will be added to, due at the same time as, and
subject to the same conditions of payment and adjustment as the contract
premiums due on and after that date.
Neither this Benefit nor the extra premium charged for it will change any loan
or contract value which may be in this contract. But if the contract has a
benefit for waiving premiums in the event of disability, that benefit will apply
to the extra premium charged for this Benefit.
The premiums for this Benefit will stop on the earlier of the date of the
Insured's death and the first contract anniversary after the Insured's 65th
birthday.
PAID-UP INSURANCE
PAID-UP INSURANCE ON DEPENDENT CHILDREN.--The Insured might die while this
contract is in force with no premium in default past its days of grace. In this
case, any term insurance provided by this Benefit on a dependent child's life
will become paid-up term insurance. While this paid-up insurance is in effect,
the contract will remain in force. The paid-up insurance will have cash values
but no loan value.
If this Benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance.
But, within 30 days after a contract anniversary, the net cash value will not be
less than it was on that anniversary. To compute this net cash value, we use the
Commissioners 1980 Standard Ordinary Mortality Table. We use continuous
functions based on age last birthday. We use an effective interest rate of 4% a
year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days. we will pay
interest at the rate of 3% a year. If we are asked for the values which apply,
we will furnish them.
(Continued on Next Page)
- -----------
PLIY 33--82
- -----------
II-138
<PAGE>
(Continued from Preceding Page)
CONVERSION OF INSURANCE ON DEPENDENT CHILDREN
RIGHT TO CONVERT.--If the insurance on a dependent child ends as we state in the
last paragraph under Benefit above, that child may be able to obtain a new
contract of life insurance on his or her life, in either this company or The
Prudential Insurance Company of America. In any of these paragraphs, when we use
the phrase the company we mean whichever of these companies may issue the new
contract. It will not be necessary to prove that the child is insurable.
CONDITIONS.--The right to obtain a new contract is subject to all these
conditions: (1) The insurance on the child must end while this contract is in
force with no premium in default past its days of grace. (2) The amount of the
new contract must meet the minimum as we describe under Contract Specifications.
(3) We must have a written application for the new contract at our Service
Office no later than the date the insurance on the child ends.
The new contract will not take effect unless the premium for it is paid while
the child is living and within 31 days after its contract date. If the premium
is paid as we state. it will be deemed that the insurance under the new contract
took effect on its contract date.
CONTRACT DATE.--The date of the new contract will be the day after the date the
insurance on the dependent child ends.
CONTRACT SPECIFICATIONS.--The new contract will be in the standard rating class.
The company will set the issue age and the premiums for the new contract in
accord with its regular rules in use on the date of the new contract.
The new contract may call for annual premiums. If the company agrees. the owner
of the new contract will be able to have premiums fall due more often.
The contract may be either one of the following:
1. A contract like the one to which this Benefit is attached. Its face amount
will be the amount asked for in the application. But it cannot be less than
$25,000 or more than five times the amount of insurance on the child's life
under this Benefit.
2. A Life Paid Up at Age 85 plan (Life Paid Up at Age 65 plan if the issue age
for the new contract is less than 15 years). In this case the new contract will
be issued by The Prudential Insurance Company of America. Its face amount will
be the amount asked for in the application. But it cannot be less than $5,000 or
more than five times the amount of insurance on the child's life under this
Benefit.
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next paragraph. If the company would include in other
contracts like the new contract a benefit for waiving premiums in the event of
disability, here is what the company will do. Even though this contract does not
have that benefit on the life of that child, the company will put it in the new
contract on his or her life. The benefit, if any, in the new contract will be
the same one, with the same provisions, that the company puts in other contracts
like it on its contract date. In this paragraph, when we use the phrase other
contracts like it, we mean contracts the company would regularly issue on the
same plan and for the same rating class, amount, issue age and sex.
No premium will be waived under the new contract unless the disability started
on or after its contract date. And no premium will be waived under a new
contract unless it has a benefit for waiving premiums in the event of
disability. This will be so even if premiums have been waived under this
contract.
CHANGES.--If the insurance on a dependent child ends as we state in the last
paragraph under Benefit above, that child may be able to obtain a new contract
of life insurance other than in accord with the requirements we state in this
form. But this kind of change may be made only if the company consents and will
be subject to conditions and charges that are then determined.
(Continued on Next Page)
- -----------
PLIY 33--82
- -----------
II-139
<PAGE>
(Continued from Preceding Page)
MISCELLANEOUS PROVISIONS
BENEFICIARY.--The word beneficiary where we use it in this contract without
qualification means the beneficiary for insurance payable upon the death of the
Insured.
Unless we endorse this contract to say otherwise, the beneficiary for insurance
payable upon the death of a dependent child will be the Insured if living,
otherwise the estate of the Insured.
The beneficiary for insurance payable upon the death of a dependent child may be
changed. The request must be in writing and in a form that meets our needs. It
will take effect only when we file it at our Service Office; this will be after
the contract is sent to us to be endorsed, if we ask for it. Then any previous
beneficiary's interest in such insurance will end as of the date of the request.
It will end then even if the child is not living when we file the request. Any
beneficiary's interest is subject to the rights of any assignee of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
REINSTATEMENT.--If this contract is reinstated, it will not include the
insurance that we provide under this Benefit on the dependent children unless
you give us any facts we need to satisfy us that each child who is to be insured
on or within 15 days after the date of reinstatement is insurable for the
Benefit. If you do not give us the facts we need for any child, the Benefit may
be reinstated if all the other conditions are met to reinstate the contract. But
you must send the contract to us to be endorsed to show that the child is not
insured under the Benefit.
CONTRACT VALUE OPTIONS.--If this contract has a Contract Value Options
provision, it will apply only during the Insured's lifetime. Any extended or
reduced paid-up insurance that may be described there is on the life of the
Insured only.
CONTRACT LOANS.--If this contract has a Loans provision, we will not consider
any contract debt when we determine the amount payable, if any, at the death of
a dependent child.
INCONTESTABILITY.--Except for non-payment of premium, we will not contest this
Benefit with respect to the insurance on any dependent child's life after it has
been in force during the child's lifetime for two years from the date we show in
the first sentence under Benefit above.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day before the first contract anniversary after the Insured's
65th birthday;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the Benefit is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
Secretary
Date Attest
-----------------------------------------------------
- -----------
PLIY 33--82
- -----------
II-140
EXHIBIT 1.A.(13)(l)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------------- -------------------------------
REDUCED PAID-UP INSURANCE
Premiums are no longer being paid on this contract. But it is being kept in
force as reduced paid-up insurance on the Insured's life, as we state under
Contract Value Options in the contract.
The new amount of insurance and its effective date are shown in the attached
Table of Values. Unless otherwise stated in the Table, any contract debt was
deducted when we computed the net cash value that was used to provide the
reduced paid-up insurance.
As of the effective date shown in the Table each of these items no longer
applies: (1) the Tabular Cash Values shown on page 4 in the contract; (2) any
Supplementary Benefits or other extra benefits that were made a part of the
contract by rider or endorsement; (3) any of the provisions of the contract that
apply to the varying of the insurance amount or cash value due to investment
results in the separate account; and (4) any provisions of the contract that do
not apply to the reduced paid-up insurance.
If this contract is reinstated, the net cash value that applies upon
reinstatement is: (a) the net cash value upon reinstatement computed as we state
in the contract under Premium Payment and Reinstatement, but computed as if no
loans had been taken or repaid and no loan interest had been paid while the
contract was in force as reduced paid-up insurance; minus (b) the excess of the
contract debt immediately after reinstatement over what the contract debt would
have been if no loans had been taken or repaid and no loan interest had been
paid while the contract was in force as reduced paid-up insurance.
The attached Table shows values at the ends of contract years. If we need to
compute values at some time during a contract year, we will count the time since
the start of the year. We will let you know the values for other durations if
you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
Date Attest
----------------------------------------------------
- ----------
PLY 18--82
- ----------
II-141
EXHIBIT 1.A.(13)(m)
[ ] Pruco Life Insurance Company
[x] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
- ------------------------------------ ---------------------------------------
REDUCED PAID-UP INSURANCE
Premiums are no longer being paid on this contract. But it is being kept in
force as reduced paid-up insurance on the Insured's life, as we state under
Contract Value Options in the contract.
The new amount of insurance and its effective date are shown in the attached
Table of Values. Unless otherwise stated in the Table, any contract debt was
deducted when we computed the net cash value that was used to provide the
reduced paid-up insurance.
As of the effective date shown in the Table each of these items no longer
applies: (1) the Tabular Cash Values shown on page 4 in the contract; (2) any
Supplementary Benefits or other extra benefits that were made a part of the
contract by rider or endorsement; (3) any of the provisions of the contract that
apply to the varying of the insurance amount or cash value due to investment
results in the separate account; and (4) any provisions of the contract that do
not apply to the reduced paid-up insurance.
If this contract is reinstated, the net cash value that applies upon
reinstatement is: (a) the net cash value upon reinstatement computed as we state
in the contract under Premium Payment and Reinstatement, but computed as if no
loans had been taken or repaid and no loan interest had been paid while the
contract was in force as reduced paid-up insurance; minus (b) the excess of the
contract debt immediately after reinstatement over what the contract debt would
have been if no loans had been taken or repaid and no loan interest had been
paid while the contract was in force as reduced paid-up insurance.
The attached Table shows values at the ends of contract years. If we need to
compute values at some time during a contract year, we will count the time since
the start of the year. We will let you know the values for other durations if
you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
Secretary
Date December 1, 1983 Attest M. Smith
-------------------------------------------------
- -----------
PLIY 34--82 Printed in U.S.A.
- -----------
II-142
EXHIBIT 1.A.(13)(n)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe xx xxx xxx
- ------------------------------------------ ----------------------------------
INSURED'S WAIVER OF PREMIUM BENEFIT
TOTAL DISABILITY BENEFIT.--We will waive contract premiums that fall due while
the Insured is totally disabled. But this is subject to all the provisions of
this Benefit and of the rest of this contract.
DISABILITY DEFINED.--When we use the words disability and disabled in this
Benefit we mean total disability and totally disabled. Here is how we define
them: (1) until the Insured has stayed disabled for two years, we mean that he
or she cannot, due to sickness or injury. engage in any occupation for
remuneration or profit or do any of the duties of his or her regular occupation;
but (2) after the Insured has stayed disabled for two years, we mean that he or
she cannot, due to sickness or injury, do any gainful work for which he or she
is reasonably fitted by education, training, or experience.
Except for what we state in the next sentence, we will at no time regard an
Insured as disabled who is doing gainful work for which he or she is reasonably
fitted by education, training, or experience. We will regard an Insured as
disabled, even if working or able to work, if he or she incurs, during a period
in which premiums are eligible to be waived as we describe below, one of the
following: (1) permanent and complete blindness of both eyes; or (2) severance
of both hands at or above the wrists or both feet at or above the ankles; or (3)
severance of one hand at or above the wrist and one foot at or above the ankle.
PREMIUMS ELIGIBLE TO BE WAIVED.--If the Insured becomes disabled before the
first contract anniversary after his or her 60th birthday and that disability
begins (1) on or after the first contract anniversary after his or her 5th
birthday, if the date of this rider was before that birthday; or (2) on or after
the date of the rider, if that date was on or after his or her 5th birthday, we
will waive all premiums that fall due while he or she stays disabled.
If the Insured becomes disabled on or after the first contract anniversary after
his or her 60th birthday, we will waive only those premiums that fall due before
the first contract anniversary after his or her 65th birthday and while he or
she stays disabled.
If the Insured becomes disabled on or after the first contract anniversary after
his or her 65th birthday, we will not waive any premium that falls due in that
period of disability.
CONDITIONS.--Both of these conditions must be met: (1) The Insured must become
disabled while this contract is in force with no premium in default past its
days of grace. (2) The Insured must stay disabled for a period of at least six
months while living.
EXCEPTIONS.--We will not waive any premium if the Insured becomes disabled from:
(1) an injury he causes to himself, or she causes to herself, on purpose; or (2)
sickness or injury due to service on or after the date of this rider in the
armed forces of any country(ies) at war. The word war means declared or
undeclared war and includes resistance to armed aggression.
SUCCESSIVE DISABILITIES.--Here is what happens if the Insured has at least one
premium waived while disabled, then gets well so that premium payment resumes,
and then becomes disabled again. In this case, we will not apply the six-month
period that would otherwise be required by Condition (2) and will consider the
second period of disability to be part of the first period unless (1) the
Insured has done gainful work, for which he or she is reasonably fitted, for at
least six months between the periods; or (2) the Insured became disabled the
second time from an entirely different cause.
If we do not apply the six~month period required by Condition (2), we also will
not count the days when there was no disability as part of the two year period
when disability means the Insured cannot do any of the duties of his or her
regular occupation.
NOTICE AND PROOF OF CLAIM.--Notice and proof of any claim must be given to us
while the Insured is living and disabled, or as soon as reasonably possible
thereafter. If notice or proof is not given as soon as reasonably possible, we
will not waive any premium due more than one year before the date the notice or
proof is given to us. We may require proof at reasonable times that the Insured
is still disabled. After he or she has been disabled for two years,
(Continued on Next Page)
- ----------
PLY 19--82
- ----------
II-143
<PAGE>
(Continued from Preceding Page)
we will not ask for proof more than once a year. As a part of any proof, we have
the right to require that the Insured be examined at our expense by doctors of
our choice.
RECOVERY FROM DISABILITY.--We will stop waiving premiums if (1) disability ends;
or (2) we ask for proof that the Insured is disabled and we do not receive it;
or (3) we require that the Insured be examined and he or she fails to do so.
MISCELLANEOUS.--Any premiums that fall due are payable until we approve a claim.
We will refund any premium paid that is later waived. But we will not, of
course, refund any premium or part of a premium that was or is to be returned in
accord with the Premium Adjustment provision in this contract.
There might be unpaid premiums that fall due (1) after disability starts; but
(2) more than one year before we have notice of claim at our Service Office. Or
disability might start in the days of grace of an unpaid premium. In either
case, if we are otherwise able to approve a claim, those unpaid premiums that we
do not waive will be due us with compound interest at 6% a year. If we do not
receive them, we will deduct them with interest from any amount we pay under the
contract.
Any premium we waive will be at the frequency in effect when the Insured becomes
disabled.
If we waive premiums, the effect on this contract will be the same as if the
premiums had been paid in cash. But the Premium Adjustment provision will not
apply to any premium that was not paid because it was waived under this Benefit.
If we owe the Insured a refund of premium but have not paid it before his or her
death, we have the choice of paying the beneficiary for insurance payable upon
the death of the Insured or the Insured's estate.
BENEFIT PREMIUMS.--The premiums for this Benefit are a part of the contract
premiums due before the first contract anniversary after the Insured's 65th
birthday.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day that is the last premium due date in the premium period;
3. the end of the day before the first contract anniversary after the Insured's
65th birthday, unless the Insured has stayed disabled since before the first
contract anniversary after the 60th birthday;
4. the date the contract is surrendered under its Cash Value Option, if it has
one; and
5. the date the contract ends for any other reason.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
Secretary
Date September 7, 1983 Attest M. Smith
-------------------------------------------------
- ----------
PLY 19--82 Printed in U.S.A.
- ----------
II-144
EXHIBIT 1.A.(13)(o)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ---------------------------------------- -----------------------------------
INSURED'S WAIVER OF PREMIUM BENEFIT
TOTAL DISABILITY BENEFIT.--We will waive contract premiums that fall due while
the Insured is totally disabled. But this is subject to all the provisions of
this Benefit and of the rest of this contract.
DISABILITY DEFINED.--When we use the words disability and disabled in this
Benefit we mean total disability and totally disabled. Here is how we define
them: (1) until the Insured has stayed disabled for two years, we mean that he
or she cannot, due to sickness or injury, do any of the duties of his or her
regular occupation; but (2) after the Insured has stayed disabled for two years,
we mean that he or she cannot, due to sickness or injury, do any gainful work
for which he or she is reasonably fitted by education, training, or experience.
Except for what we state in the next sentence, we will at no time regard an
Insured as disabled who is doing gainful work for which he or she is reasonably
fitted by education, training, or experience. We will regard an Insured as
disabled, even if working or able to work, if he or she incurs, during a period
in which premiums are eligible to be waived as we describe below, one of the
following: (1) permanent and complete blindness of both eyes; or (2) severance
of both hands at or above the wrists or both feet at or above the ankles; or (3)
severance of one hand at or above the wrist and one foot at or above the ankle.
PREMIUMS ELIGIBLE TO BE WAIVED.--If the Insured becomes disabled before the
first contract anniversary after his or her 60th birthday and that disability
begins (1) on or after the first contract anniversary after his or her 5th
birthday, if the date of this rider was before that birthday; or (2) on or after
the date of the rider, if that date was on or after his or her 5th birthday, we
will waive all premiums that fall due while he or she stays disabled.
If the Insured becomes disabled on or after the first contract anniversary after
his or her 60th birthday, we will waive only those premiums that fall due before
the first contract anniversary after his or her 65th birthday and while he or
she stays disabled.
If the Insured becomes disabled on or after the first contract anniversary after
his or her 65th birthday, we will not waive any premium that falls due in that
period of disability.
CONDITIONS.--Both of these conditions must be met: (1) The Insured must become
disabled while this contract is in force with no premium in default past its
days of grace. (2) The Insured must stay disabled for a period of at least six
months while living.
EXCEPTIONS.--We will not waive any premium if the Insured becomes disabled from:
(1) an injury he causes to himself, or she causes to herself, on purpose; or (2)
sickness or injury due to service on or after the date of this rider in the
armed forces of any country(ies) at war. The word war means declared or
undeclared war and includes resistance to armed aggression.
SUCCESSIVE DISABILITIES.--Here is what happens if the Insured has at least one
premium waived while disabled, then gets well so that premium payment resumes,
and then becomes disabled again. In this case, we will not apply the six-month
period that would otherwise be required by Condition (2) and will consider the
second period of disability to be part of the first period unless (1) the
Insured has done gainful work, for which he or she is reasonably fitted, for at
least six months between the periods; or (2) the Insured became disabled the
second time from an entirely different cause.
If we do not apply the six-month period required by Condition (2), we also will
not count the days when there was no disability as part of the two year period
when disability means the Insured cannot do any of the duties of his or her
regular occupation.
NOTICE AND PROOF OF CLAIM.--Notice and proof of any claim must be given to us
while the Insured is living and disabled, or as soon as reasonably possible. If
notice or proof is not given as soon as reasonably possible, we will not waive
any premium due more than one year before the date the notice or proof is given
to us. We may require proof at reasonable times that the Insured is still
disabled.
(Continued on Next Page)
- -----------
PLIY 31--82
- -----------
II-145
<PAGE>
(Continued from Preceding Page)
After he or she has been disabled for two years, we will not ask for proof more
than once a year. As a part of any proof, we have the right to require that the
Insured be examined at our expense by doctors of our choice.
RECOVERY FROM DISABILITY.--We will stop waiving premiums if (1) disability ends;
or (2) we ask for proof that the Insured is disabled and we do not receive it;
or (3) we require that the Insured be examined and he or she fails to do so.
MISCELLANEOUS.--Any premiums that fall due are payable until we approve a claim.
We will refund any premium paid that is later waived. But we will not, of
course, refund any premium or part of a premium that was or is to be returned in
accord with the Premium Adjustment provision in this contract.
There might be unpaid premiums that fall due (1) after disability starts; but
(2) more than one year before we have notice of claim at our Service Office. Or
disability might start in the days of grace of an unpaid premium. In either
case, if we are otherwise able to approve a claim, those unpaid premiums that we
do not waive will be due us with compound interest at 6% a year. If we do not
receive them, we will deduct them with interest from any amount we pay under the
contract.
Any premium we waive will be at the frequency in effect when the Insured becomes
disabled.
If we waive premiums, the effect on this contract will be the same as if the
premiums had been paid in cash. But the Premium Adjustment provision will not
apply to any premium that was not paid because it was waived under this Benefit.
If we owe the Insured a refund of premium but have not paid it before his or her
death, we have the choice of paying the beneficiary for insurance payable upon
the death of the Insured or the Insured's estate.
BENEFIT PREMIUMS.--The premiums for this Benefit are a part of the contract
premiums due before the first contract anniversary after the Insured's 65th
birthday.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day that is the last premium due date in the premium period;
3. the end of the day before the first contract anniversary after the Insured's
65th birthday, unless the Insured has stayed disabled since before the first
contract anniversary after the 60th birthday;
4. the date the contract is surrendered under its Cash Value Option, if it has
one; and
5. the date the contract ends for any other reason.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
Secretary
Date Attest
----------------------------------------------------
Printed in U.S.A.
- -----------
PLIY 31--82
- -----------
II-146
EXHIBIT 1.A.(13)(p)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
_____________________________________ ______________________________________
INSURED'S ACCIDENTAL DEATH BENEFIT
All previous provisions of this contract with regard to accidental death benefit
will end just before the date of this rider.
BENEFIT.--We will pay $25,000.-- for the Insured's accidental loss of life. But
our payment is subject to all the provisions of this Benefit and of the rest of
this contract.
MANNER OF PAYMENT.--We will include in the proceeds of this contract any payment
under this Benefit.
CONDITIONS.--Both of these conditions must be met: (1) We must receive due proof
that the Insured's death was the direct result, independent of all other causes,
of accidental bodily injury that occurred on or after September 1, 1983. (2) The
death must occur (a) no more than 90 days after the injury; (b) while the
contract is in force with no premium in default past its days of grace; and (c)
before the end of the contract's term or endowment period, if any.
EXCLUSIONS.--We will not pay under this Benefit for death caused or contributed
to by: (1) suicide or attempted suicide while sane or insane; or (2) infirmity
or disease of mind or body or treatment for it; or (3) any infection other than
one caused by an accidental cut or wound.
Even if death is caused by accidental bodily injury, we will not pay for it
under this Benefit if it is caused or contributed to by: (1) service in the
armed forces of any country(ies) at war; or (2) war or any act of war; or (3)
travel by, or descent from, any aircraft if the Insured had any duties or acted
in any capacity other than as a passenger at any time during the flight. But we
will ignore (3) if all these statements are true of the aircraft: (a) It has
fixed wings and a permitted gross takeoff weight of at least 75,000 pounds. (b)
It is operated by an air carrier that is certificated under the laws of the
United States or Canada to carry passengers to or from places in those
countries. (c) It is not being operated for any armed forces for training or
other purposes. As used here, the word aircraft includes rocket craft or any
other vehicle for flight in or beyond the earth's atmosphere. The word war means
declared or undeclared war and includes resistance to armed aggression.
BENEFIT PREMIUMS.--We grant this Benefit in consideration of: (1) payment now of
an extra premium of $ XX.XX , and (2) payment on and after September 1, 1984
of an extra annual premium of $ XX.XX . This latter amount will be added to,
due at the same time as, and subject to the same conditions of payment and
adjustment as the contract premiums due on and after that date.
Neither this Benefit nor the extra premium charged for it will change any loan
or contract value that may be in this contract. But if the contract has a
benefit for waiving premiums in the event of disability, that benefit will apply
to the extra premium charged for this Benefit.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the date the contract is surrendered under its Cash Value Option, if it has
one; and
3. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
Date September 1, 1983 Attest M. Smith
---------------------------------------------------
- ----------
PLY 20--82 Printed in u.S.A.
- ----------
II-147
EXHIBIT 1.A.(13)(q)
Pruco Life Insurance Company
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
_____________________________________ ______________________________________
INSURED'S ACCIDENTAL DEATH BENEFIT
All previous provisions of this contract with regard to accidental death benefit
will end just before the date of this rider.
BENEFIT.--We will pay $ ___________ for the Insured's accidental loss of life.
But our payment is subject to all the provisions of this Benefit and of the rest
of this contract.
MANNER OF PAYMENT.--We will include in the proceeds of this contract any payment
under this Benefit.
CONDITION.--Both of these conditions must be met: (1) We must receive due proof
that the Insured's death was the direct result, independent of all other causes,
of accidental bodily injury that occurred on or after _________________________.
(2) The death must occur (a) no more than 90 days after the injury; (b) while
the contract is in force with no premium in default past its days of grace; and
(c) before the end of the contract's term or endowment period, if any.
EXCLUSIONS.--We will not pay under this Benefit for death caused or contributed
to by: (1) suicide or attempted suicide while sane or insane; or (2) infirmity
or disease of mind or body or treatment for it; or (3) any infection other than
one caused by accidental cut or wound.
Even if death is caused by accidental bodily injury, we will not pay for it
under this Benefit if it is caused or contributed to by: (1) service in the
armed forces of any country(ies) at war; or (2) war or any act of war; or (3)
travel by, or descent from, any aircraft if the Insured had any duties or acted
in any capacity other than as a passenger at any time during the flight. But we
will ignore (3) if all these statements are true of the aircraft: (a) It has
fixed wings and a permitted gross takeoff weight of at least 75,000 pounds. (b)
It is operated by an air carrier that is certified under the laws of the United
States or Canada to carry passengers to or from places in those countries. (c)
It is not being operated for any armed forces for training or other purposes. As
used here, the word aircraft includes rocket craft or any other vehicle for
flight in or beyond the earth's atmosphere. The word war means declared or
undeclared war and includes resistance to armed aggression.
BENEFIT PREMIUMS.--We grant this Benefit in consideration of: (1) payment now of
an extra premium of $ _________________, and (2) payment on and after
_____________________________ of an extra _______________ premium of
$ ________________. This latter amount will be added to, due at the same time
as, and subject to the same conditions of payment and adjustment as the contract
premiums due on and after that date.
Neither this Benefit nor the extra premium charged for it will change any loan
or contract value that may be in this contract. But if the contract has a
benefit for waiving premiums in the event of disability, that benefit will apply
to the extra premium charged for this Benefit.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the date the contract is surrendered under its Cash Value Option, if it has
one; and
3. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
----------------
Secretary
Date Attest
---------------------------------------------------
- -----------
PLIY 32--82
- -----------
II-148
EXHIBIT 1.A.(13)(r)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
_____________________________________ ______________________________________
This contract is issued as a conversion from an earlier contract.
The period we state under Incontestability in this contract will start on the
date coverage of this Insured began under the earlier contract. But if that
contract was reinstated before the date of this contract, for each reinstatement
we will have the right to use as a basis for a contest of this contract the
statements that were made in the application for reinstatement. The period
during which we will have that right will be the period we state under
Incontestability in this contract; it will start on the date of the
reinstatement.
The period we state under Suicide Exclusion in this contract will start on the
date coverage of this Insured began under the earlier contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
----------------
Secretary
- ----------
PLY 29--82
- ----------
II-149
EXHIBIT 1.A.(13)(s)
Pruco Life Insurance Company
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
_____________________________________ ______________________________________
This contract is issued as a conversion from an earlier contract.
The period we state under Incontestability in this contract will start on the
date coverage of this Insured began under the earlier contract. But if that
contract was reinstated before the date of this contract, for each reinstatement
we will have the right to use as a basis for a contest of this contract the
statements that were made in the application for reinstatement. The period
during which we will have that right will be the period we state under
Incontestability in this contract; it will start on the date of the
reinstatement.
The period we state under Suicide Exclusion in this contract will start on the
date coverage of this Insured began under the earlier contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Signed for the Company,
By /s/ SPECIMEN
----------------
Secretary
- -----------
PLIY 20--82
- -----------
II-150
EXHIBIT 1.A.(13)(t)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
_____________________________________ ______________________________________
This contract is issued as a conversion from an earlier contract.
The period we state under Incontestability in this contract will start on the
issue date of the earlier contract. But if that contract was reinstated before
the date of this contract, for each reinstatement we will have the right to
use as a basis for a contest of this contract the statements that were made to
us at the time. The period during which we will have that right will be the
period we state under Incontestability in this contract; it will start on the
date of the reinstatement.
The period we state under Suicide Exclusion in this contract will start on the
issue date of the earlier contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
----------------
Secretary
- ----------
PLY 22--82
- ----------
II-151
EXHIBIT 1.A.(13)(u)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- -------------------------------------- --------------------------------------
This contract is issued as a conversion from an earlier contract.
The period we state under Incontestability in this contract will start on the
issue date of the earlier contract. But if that contract was reinstated before
the date of this contract, for each reinstatement we will have the right to use
as a basis for a contest of this contract the statements that were made to us at
the time. The period during which we will have that right will be the period we
state under Incontestability in this contract; it will start on the date of the
reinstatement.
The period we state under Suicide Exclusion in this contract will start on the
issue date of the earlier contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
- -----------
PLIY 29-82
- -----------
II-152
EXHIBIT 1.A.(13)(v)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- -------------------------------------- --------------------------------------
MODIFICATION OF INSURED'S WAIVER OF PREMIUM BENEFIT PROVISION
There is an impairment of the Insured's eyesight. If he or she becomes disabled
as a result of the loss of eyesight, here is what wtll apply for that
disability. We will not allow benefits under any benefit for waiving premiums in
the event of disabilitv in (1) this contract, or (2) any other contract on the
Insured's life to which you change or for which you exchange this contract or
any of its benefits.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
- ----------
PLY 23--82
- ----------
II-153
EXHIBIT 1.A.(13)(w)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- -------------------------------------- --------------------------------------
MODIFICATION OF INSURED'S WAIVER OF PREMIUM BENEFIT PROVISION
There is an impairment of the Insured's eyesight. If he or she becomes disabled
as a result of the loss of eyesight, here is what will apply for that
disability. We will not allow benefits under any benefit for waiving premiums in
the event of disability in (1) this contract, or (2) any other contract on the
Insured's life to which you change or for which you exchange this contract or
any of its benefits.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
- -----------
PLIY 23--82 Printed in U.S.A.
- -----------
II-154
EXHIBIT 1.A.(13)(x)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- -------------------------------------- --------------------------------------
TERMINATION OF BENEFIT
We agree that the benefit______________________________________________________
_______________________________, will end as of ______________________________.
Then all references in this contract to that benefit will no longer apply.
The premium for that benefit will not be payable on or after that date.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
Date Attest
--------------------------------------------------
- ----------
PLY 24--82 Printed in U.S.A.
- ----------
II-155
EXHIBIT 1.A.(13)(y)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- -------------------------------------- --------------------------------------
TERMINATION OF BENEFIT
We agree that the benefit _____________________________________________________
____________________________________ , will end as of ________________________.
Then all references in this contract to that benefit will no longer apply.
The premium for that benefit will not be payable on or after that date.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
Date Attest
--------------------------------------------------
- -----------
PLIY 24--82 Printed in U.S.A.
- -----------
II-156
EXHIBIT 1.A.(13)(z)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------------ ----------------------------------
AUTOMATIC PREMIUM LOAN
If this provision is in effect at the end of the days of grace of a premium in
default, the premium will be paid by charging it as a loan on the contract. But
this will be done only if there is enough loan value to do so.
A loan to pay a premium is just like any other loan on the contract (described
under Loans). When we compute the loan values, we will do so as if the premium
to be borrowed had been paid. When a premium is paid by loan, we will not use
the net cash value to provide extended or reduced paid-up insurance at that
time.
This provision is in effect because we were asked to make it so. You have the
right to decide whether or not you want it to be in effect at any time. If you
change your mind, you must ask us in writing; your new request will take effect
as soon as we have it at our Service Office.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
- ----------
PLY 25--82 Printed in U.S.A
- ----------
II-157
EXHIBIT 1.A.(13)(aa)
Pruco Life Insurance Company
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------------- -----------------------------------
AUTOMATIC PREMIUM LOAN
If this provision is in effect at the end of the days of grace of a premium in
default, the premium will be paid by charging it as a loan on the contract. But
this will be done only if there is enough loan value to do so.
A loan to pay a premium is just like any other loan on the contract (described
under Loans). When we compute the loan values, we will do so as if the premium
to be borrowed had been paid. When a premium is paid by loan, we will not use
the net cash value to provide extended or reduced paid~up insurance at that
time.
This provision is in effect because we were asked to make it so. You have the
right to decide whether or not you want it to be in effect at any time. If you
change your mind, you must ask us in writing; your new request will take effect
as soon as we have it in our Service Office.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON
Signed for the company,
By /s/ SPECIMEN
--------------------
Secretary
- -----------
PLIY 25--82
- -----------
II-158
EXHIBIT 1.A.(13)(bb)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe xx xxx xxx
- ------------------------------------------ ----------------------------------
AVIATION RISK EXCLUSION
CONDITIONS OF EXCLUSION.--We will pay the limited payment we describe below, and
not what we would otherwise pay, if (1) the Insured dies as a result of travel
by, or descent from, any aircraft; and (2) the Insured had any duties or acted
in any capacity other than as a passenger at any time during the flight.
But this Exclusion will not apply if all these statements are true of the
aircraft: (1) It has fixed wings and a permitted gross takeoff weight of at
least 75,000 pounds. (2) It is operated by an air carrier that is certificated
under the laws of the United States or Canada to carry passengers to or from
places in those countries. (3) It is not being operated for any armed forces for
training or other purposes.
As used here, the word aircraft includes rocket craft or any other vehicle for
flight in or beyond the earth's atmosphere.
LIMITED PAYMENT.--The limited payment will be (1) the sum of the premiums that
became due and were paid for the insurance on the Insured's life, minus (2) any
contract debt. But if the reserve for the insurance on the Insured's life, when
computed as we state under Reserves, is more than the amount we determine in
(1), we will use that reserve in place of that amount. Also, the limited payment
will never be more than what we would have paid if this Exclusion were not in
the contract.
The limited payment will be payable to the beneficiary for insurance otherwise
payable upon the Insured's death.
REDUCED PAID-UP, EXTENDED AND OTHER INSURANCE ON THE INSURED'S LIFE.--This
Exclusion also applies to any reduced paid-up or extended insurance that might
be in force under the Contract Value Options, if any. We will put the Exclusion
in any contract on the Insured's life to which you change, or for which you
exchange, this contract or any of its benefits.
PAID-UP INSURANCE ON OTHER PERSONS.--This contract might include insurance on
the life of someone other than the Insured. And it might have a provision that
makes that insurance paid-up if the Insured dies. This Exclusion will not affect
any such provision.
EFFECT OF INCONTESTABILITY.--In any case where this Exclusion applies, the
Incontestability provision of this contract will not be deemed to make us pay
more than as we state under Limited Payment.
RESERVES.--We might have to compute a reserve to find the limited payment. If
so, we will use the same table and rate(s) that we use to compute net values for
the insurance on the Insured's life, as we describe under Basis of Computation
in this contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------------
Secretary
Date December 1, 1983 Attest M. Smith
--------------------------------------------------
- ----------
PLY 26--82 Printed in U.S.A.
- ----------
II-159
EXHIBIT 1.A.(13)(cc)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
________________________________________ ___________________________________
AVIATION RISK EXCLUSION
CONDITIONS OF EXCLUSION.--We will pay the limited payment we describe below, and
not what we would otherwise pay, if (1) the Insured dies as a result of travel
by, or descent from, any aircraft; and (2) the Insured had any duties or acted
in any capacity other than as a passenger at any time during the flight.
But this Exclusion will not apply if all these statements are true of the
aircraft: (1) It has fixed wings and a permitted gross takeoff weight of at
least 75,000 pounds. (2) It is operated by an air carrier that is certificated
under the laws of the United States or Canada to carry passengers to or from
places in those countries. (3) It is not being operated for any armed forces for
training or other purposes.
As used here, the word aircraft includes rocket craft or any other vehicle for
flight in or beyond the earth's atmosphere.
LIMITED PAYMENT.--The limited payment will be (1) the sum of the premiums that
became due and were paid for the insurance on the Insured's life, minus (2) any
contract debt. But if the reserve for the insurance on the Insured's life, when
computed as we state under Reserves, is more than the amount we determine in
(1), we will use that reserve in place of that amount. Also, the limited payment
will never be more than what we would have paid if this Exclusion were not in
the contract.
The limited payment will be payable to the beneficiary for insurance otherwise
payable upon the Insured's death.
REDUCED PAID-UP, EXTENDED AND OTHER INSURANCE ON THE INSURED'S LIFE.--This
Exclusion also applies to any reduced paid-up or extended insurance that might
be in force under the Contract Value Options, if any. We will put the Exclusion
in any contract on the Insured's life to which you change, or for which you
exchange, this contract or any of its benefits.
PAID-UP INSURANCE ON OTHER PERSONS.--This contract might include insurance on
the life of someone other than the Insured. And it might have a provision that
makes that insurance paid-up if the Insured dies. This Exclusion will not affect
any such provision.
EFFECT OF INCONTESTABILITY.--In any case where this Exclusion applies, the
Incontestability provision of this contract will not be deemed to make us pay
more than as we state under Limited Payment.
RESERVES.--We might have to compute a reserve to find the limited payment. If
so, we will use the same table and rate(s) that we use to compute net values for
the insurance on the Insured's life, as we describe under Basis of Computation
in this contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
Date Attest
---------------------------------------------------
- -----------
PLIY 26--82
- -----------
II-160
EXHIBIT 1.A.(13)(dd)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
________________________________________ ___________________________________
MILITARY AVIATION RISK EXCLUSION
CONDITIONS OF EXCLUSION.--We will pay the limited payment we describe below, and
not what we would otherwise pay, if (1) the Insured dies as a result of travel
by, or descent from, any aircraft operated by or for any armed forces; and (2)
the Insured had any duties or acted in any capacity other than as a passenger at
any time during the flight. As used here, the word aircraft includes rocket
craft or any other vehicle for flight in or beyond the earth's atmosphere.
LIMITED PAYMENT.--The limited payment will be (1) the sum of the premiums that
became due and were paid for the insurance on the Insured's life, minus (2) any
contract debt. But if the reserve for the insurance on the Insured's life, when
computed as we state under Reserves, is more than the amount we determine in
(1), we will use that reserve in place of that amount. Also, the limited payment
will never be more than what we would have paid if this Exclusion were not in
the contract.
The limited payment will be payable to the beneficiary for insurance otherwise
payable upon the Insured's death.
REDUCED PAID-UP, EXTENDED AND OTHER INSURANCE ON THE INSURED'S LIFE.--This
Exclusion also applies to any reduced paid-up or extended insurance that might
be in force under the Contract Value Options, if any. We will put the Exclusion
in any contract on the Insured's life to which you change, or for which you
exchange, this contract or any of its benefits.
PAID-UP INSURANCE ON OTHER PERSONS.--This contract might include insurance on
the life of someone other than the Insured. And it might have a provision that
makes that insurance paid-up if the Insured dies. This Exclusion will not affect
any such provision.
EFFECT OF INCONTESTABILITY.--In any case where this Exclusion applies, the
Incontestability provision of this contract will not be deemed to make us pay
more than as we state under Limited Payment.
RESERVES.--We might have to compute a reserve to find the limited payment. If
so, we will use the same table and rate(s) that we use to compute net values for
the insurance on the Insured's life, as we describe under Basis of Computation
in this contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
Date December 1, 1983 Attest M. Smith
---------------------------------------------------
- -----------
PLY 27--82 Printed in U.S.A.
- -----------
II-161
EXHIBIT 1.A.(13)(ee)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
________________________________________ ___________________________________
MILITARY AVIATION RISK EXCLUSION
CONDITIONS OF EXCLUSION.--We will pay the limited payment we describe below, and
not what we would otherwise pay, if (1) the Insured dies as a result of travel
by, or descent from, any aircraft operated by or for any armed forces; and (2)
the Insured had any duties or acted in any capacity other than as a passenger at
any time during the flight. As used here, the word aircraft includes rocket
craft or any other vehicle for flight in or beyond the earth's atmosphere.
LIMITED PAYMENT.--The limited payment will be (1) the sum of the premiums that
became due and were paid for the insurance on the Insured's life, minus (2) any
contract debt. But if the reserve for the insurance on the Insured's life, when
computed as we state under Reserves, is more than the amount we determine in
(1), we will use that reserve in place of that amount. Also, the limited payment
will never be more than what we would have paid if this Exclusion were not in
the contract.
The limited payment will be payable to the beneficiary for insurance otherwise
payable upon the Insured's death.
REDUCED PAID-UP, EXTENDED AND OTHER INSURANCE ON THE INSURED'S LIFE.--This
Exclusion also applies to any reduced paid-up or extended insurance that might
be in force under the Contract Value Options, if any. We will put the Exclusion
in any contract on the Insured's life to which you change, or for which you
exchange, this contract or any of its benefits.
PAID-UP INSURANCE ON OTHER PERSONS.--This contract might include insurance on
the life of someone other than the Insured. And it might have a provision that
makes that insurance paid-up if the Insured dies. This Exclusion will not affect
any such provision.
EFFECT OF INCONTESTABILITY.--In any case where this Exclusion applies, the
Incontestability provision of this contract will not be deemed to make us pay
more than as we state under Limited Payment.
RESERVES.--We might have to compute a reserve to find the limited payment. If
so, we will use the same table and rate(s) that we use to compute net values for
the insurance on the Insured's life, as we describe under Basis of Computation
in this contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
Date Attest
---------------------------------------------------
- -----------
PLIY 27--82 Printed in U.S.A.
- -----------
II-162
EXHIBIT 1.A.(13)(ff)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
________________________________________ ___________________________________
WAR RISK EXCLUSION
CONDITIONS OF EXCLUSION.--We will pay the limited payment we describe below, and
not what we would otherwise pay. if the Insured's death results from any one or
more of the following causes: (1) war; (2) any act of war; or (3) the special
hazards due to service in the armed forces of any country(ies).
But this Exclusion will not apply unless all these conditions exist: (1) The
cause of death occurs while the Insured is in the armed forces of any
country(ies) at war. (2) The cause of death occurs while the Insured is outside
the Home Areas. (3) The death occurs (a) outside the Home Areas, or (b) within
six months after the Insured's return to the Home Areas while in such forces or
within six months after the end of service in such forces, whichever is earlier.
As used here, the word war means declared or undeclared war and includes
resistance to armed aggression. The phrase Home Areas means the fifty states of
the United States of America, the District of Columbia, The Commonwealth of
Puerto Rico, the Virgin Islands of the United States, or Canada.
LIMITED PAYMENT.--The limited payment will be (1) the sum of the premiums that
became due and were paid for the insurance on the Insured's life, minus (2) any
contract debt. But if the reserve for the insurance on the Insured's life, when
computed as we state under Reserves, is more than the amount we determine in
(1), we will use that reserve in place of that amount. Also, the limited payment
will never be more than what we would have paid if this Exclusion were not in
the contract.
The limited payment will be payable to the beneficiary for insurance otherwise
payable upon the Insured's death.
REDUCED PAID-UP, EXTENDED AND OTHER INSURANCE ON THE INSURED'S LIFE.--This
Exclusion also applies to any reduced paid-up or extended insurance that might
be in force under the Contract Value Options, if any. We will put the Exclusion
in any contract on the Insured's life to which you change, or for which you
exchange, this contract or any of its benefits.
PAID-UP INSURANCE ON OTHER PERSONS.--This contract might include insurance on
the life of someone other than the Insured. And it might have a provision that
makes that insurance paid-up if the Insured dies. This Exclusion will not affect
any such provision.
EFFECT OF UNCONTESTABILITY.--In any case where this Exclusion applies, the
Incontestability provision of this contract will not be deemed to make us pay
more than as we state under Limited Payment.
RESERVES.--We might have to compute a reserve to find the limited payment. If
so, we will use the same table and rate(s) that we use to compute net values for
the insurance on the Insured's life, as we describe under Basis of Computation
in this contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------
Secretary
- ----------
PLY 28--82 Printed in U.S.A.
- ----------
II-163
EXHIBIT 1.A.(13)(gg)
[ ] Pruco Life Insurance Company
[X] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
________________________________________ ___________________________________
WAR RISK EXCLUSION
CONDITIONS OF EXCLUSION.--We will pay the limited payment we describe below, and
not what we would otherwise pay, if the Insured's death results from any one or
more of the following causes: (1) war; (2) any act of war; or (3) the special
hazards due to service in the armed forces of any countrv(ies).
But this Exclusion will not apply unless all these conditions exist: (1) The
cause of death occurs while the Insured is in the armed forces of any
country(ies) at war. (2) The cause of death occurs while the Insured is outside
the Home Areas. (3) The death occurs (a) outside the Home Areas, or (b) within
six months after the Insured's return to the Home Areas while in such forces or
within six months after the end of service in such forces, whichever is earlier.
As used here, the word war means declared or undeclared war and includes
resistance to armed aggression. The phrase Home Areas means the fifty states of
the United States of America, the District of Columbia, The Commonwealth of
Puerto Rico, the Virgin Islands of the United States, or Canada.
LIMITED PAYMENT.--The limited payment will be (1) the sum of the premiums that
became due and were paid for the insurance on the Insured's life, minus (2) any
contract debt. But if the reserve for the insurance on the Insured's life, when
computed as we state under Reserves, is more than the amount we determine in
(1), we will use that reserve in place of that amount. Also, the limited payment
will never be more than what we would have paid if this Exclusion were not in
the contract.
The limited payment will be payable to the beneficiary for insurance otherwise
payable upon the Insured's death.
REDUCED PAID-UP, EXTENDED AND OTHER INSURANCE ON THE INSURED'S LIFE.--This
Exclusion also applies to any reduced paid-up or extended insurance that might
be in force under the Contract Value Options, if any. We will put the Exclusion
in any contract on the Insured's life to which you change, or for which you
exchange, this contract or any of its benefits.
PAID-UP INSURANCE ON OTHER PERSONS.--This contract might include insurance on
the life of someone other than the Insured. And it might have a provision that
makes that insurance paid-up if the Insured dies. This Exclusion will not affect
any such provision.
EFFECT OF INCONTESTABILITY.--In any case where this Exclusion applies, the
Incontestability provision of this contract will not be deemed to make us pay
more than as we state under Limited Payment.
RESERVES.--We might have to compute a reserve to find the limited payment. If
so, we will use the same table and rate(s) that we use to compute net values for
the insurance on the Insured's life, as we describe under Basis of Computation
in this contract.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Signed for the Company,
By /s/ SPECIMEN
--------------------
Secretary
- ----------
PLY 28--82 Printed in U.S.A.
- ----------
II-164
EXHIBIT 1.A.(13)(hh)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe xx xxx xxx
- ------------------------------------------ -----------------------------------
This contract is issued as a conversion from an earlier contract.
The period we state under Incontestability in this contract will start on the
most recent date coverage of this Insured began under the earlier(est) contract
to which this one relates. But if any such earlier contract was reinstated after
that date but before the date of this contract, for each reinstatement we will
have the right to use as a basis for a contest of this contract the statements
that were made to us at the time. The period during which we will have that
right will be the period we state under Incontestability in this contract; it
will start on the date of the reinstatement.
The period we state under Suicide Exclusion in this contract will start on the
date coverage of this Insured began under the earlier(est) contract to which
this one relates.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
------------------------
Secretary
- ----------
PLY 34--82 Printed in U.S.A.
- ----------
II-165
EXHIBIT 1.A.(13)(ii)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- -------------------------------------------- -----------------------------------
This contract is issued as a conversion from an earlier contract.
The period we state under Incontestability in this contract will start on the
most recent date coverage of this Insured began under the earlier(est) contract
to which this one relates. But if any such earlier contract was reinstated after
that date but before the date of this contract, for each reinstatement we will
have the right to use as a basis for a contest of this contract the statements
that were made to us at the time. The period during which we will have that
right will be the period we state under Incontestability in this contract; it
will start on the date of the reinstatement.
The period we state under Suicide Exclusion in this contract will start on the
date coverage of this Insured began under the earlier(est) contract to which
this one relates.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Signed for the Company,
By /s/ SPECIMEN
-----------------------
Secretary
- -----------
PLIY 35--82 Printed in U.S.A
- -----------
II-166
EXHIBIT 1.A.(13)(jj)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe xx xxx xxx
- ------------------------------------------ -----------------------------------
This rider applies only if the Insured dies by suicide within two years from the
issue date end our liability is limited as we state for suicide in the General
Provisions. If this occurs, any provision for paid-up insurance on the life of
any other person who was, until the Insured died, insured under this contract
will not apply.
Instead, any such person will then have the right to buy a new oontract of life
insurance either from us or from an affiliate of ours. The new contract will be
aubject to conditions and charges that are then determined, in accord with
regular rules in effect at the time. Its amount will not be less than the
greater of (1) the amount of insurance on that person's life under this
contract, and (2) the lowest amount offered for the plan of insurance to be
provided by the new contract. And proof that the person is insurable will not be
required. unless the new contract is to provide either an increased amount of
insurance or a benefit that did not apply to that parson under this contmct.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
-------------------------
Secretary
Date December 31, 1982 Attest M. Smith
----------------------------------------------
- ----------
PLY 31--82 Printed in U.S.A.
- ----------
II-167
EXHIBIT 1.A.(13)(kk)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provision of this policy entitled "Ownership and Control" is replaced
at issue by the following:
Ownership and Control.--Unless we endorse this contract to say otherwise, while
the Insured is living and less than 21 years of age the owner of the contract is
the applicant for it. But if the applicant is not living the owner, except as we
state below, is the beneficiary(ies) who at the time would be entitled to any
proceeds arising from the Insured's death. If there is no such beneficiary at
the time, the owner is the Insured. A beneficiary named by the Insured will not
replace the Insured as owner.
After the Insured is 21 years of age, the owner is the Insured.
While the Insured is living the owner alone is entitled to any contract benefit
and value, and to the exercise of any right and privilege granted by the
contract or by us. This includes, but is not limited to, these rights: (1) to
assign the contract; and (2) to change any subsequent owner. A request for such
a change must be in writing to us at our Service Office and in a form which
meets our needs. The change will take effect only when we endorse the contract
to show it.
If the owner is the Insured, but he or she (1) is not able, due to age, to
exercise rights, and (2) has no legal guardian to do so, we have the right to
let a person who appears to us to be responsible for the Insured's support or
welfare, act for the Insured. We will not do so unless the action appears to us
to be for the Insured's benefit.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------------
Secretary
- ----------
PLY 36--84 Printed in U.S.A.
- ----------
II-168
EXHIBIT 1.A.(13)(ll)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provision of this policy entitled "Ownership and Control" is replaced
at issue by the following:
Ownership and Control.--Unless we endorse this contract to say otherwise, while
the Insured is living and less than 21 years of age the owner of the contract is
the applicant for it. But if the applicant is not living the owner, except as we
state below, is the beneficiary(ies) who at the time would be entitled to any
proceeds arising from the Insured's death. If there is no such beneficiary at
the time, the owner is the Insured. A beneficiary named by the Insured will not
replace the Insured as owner.
After the Insured is 21 years of age, the owner is the Insured.
While the Insured is living the owner alone is entitled to any contract benefit
and value, and to the exercise of any right and privilege granted by the
contract or by us. This includes. but is not limited to, these rights: (1) to
assign the contract: and (2) to change any subsequent owner. A request for such
a change must be in writing to us at our Service Office and in a form which
meets our needs. The change will take effect only when we endorse the contract
to show it.
If the owner is the Insured, but he or she (1) is not able, due to age, to
exercise rights, and (2) has no legal guardian to do so, we have the right to
let a person who appears to us to be responsible for the Insured's support or
welfare, act for the Insured. We will not do so unless the action appears to us
to be for the Insured's benefit.
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
--------------------------
Secretary
- -----------
PLIY 38--84 Printed in U.S.A.
- ----------
II-169
EXHIBIT 1.A.(13)(mm)
RIDER FOR
APPLICANT'S WAIVER OF PREMIUM BENEFIT
Read the list of Supplementary Benefits on the Contract Data page(s). This
Benefit is a part of this contract only if it is listed there.
DEATH PROVISION
DEATH BENEFIT.--We will waive those contract premiums that fall due after the
applicant's death but before the benefit termination date which we show on the
Contract Data page(s). For us to do so, we must receive due proof that he or she
died (1) before that date and (2) while this contract is in force with no
premium in default past its days of grace. But this promise is subject to all
the provisions of this Benefit and of the rest of this contract.
SUICIDE EXCLUSION.--If the applicant, whether sane or insane, dies by suicide
within the period that we state in the Suicide Exclusion on page 5, we will not
waive, under this Benefit, the premiums we describe above. Instead, we will
return the sum of the premiums paid for the Benefit.
DISABILITY PROVISION
TOTAL DISABILITY BENEFIT.--Before the benefit termination date, we will waive
contract premiums that fall due while the applicant is totally disabled. But
this is subject to all the provisions of this Benefit and of the rest of this
contract.
DISABILITY DEFINED.--When we use the words disability and disabled in this
Benefit we mean total disability and totally disabled. Here is how we define
them: (1) until the applicant has stayed disabled for two years, we mean that he
or she cannot, due to sickness or injury, engage in any occupation for
remuneration or profit or do any of the duties of his or her regular occupation;
but (2) after the applicant has stayed disabled for two years, we mean that he
or she cannot, due to sickness or injury, do any gainful work for which he or
she is reasonably fitted by education, training, or experience.
Except for what we state in the next sentence. we will at no time regard an
applicant as disabled who is doing gainful work for which he or she is
reasonably fitted by education, training, or experience. We will regard an
applicant as disabled, even if working or able to work, if he or she incurs,
during a period in which premiums are eligible to be waived as we describe
below, one of the following: (1) permanent and complete blindness of both eyes;
or (2) severance of both hands at or above the wrists or both feet at or above
the ankles; or (3) severance of one hand at or above the wrist and one foot at
or above the ankle.
PREMIUMS ELIGIBLE TO BE WAIVED.--If the applicant becomes disabled before the
first contract anniversary after his or her 65th birthday, we will waive only
those premiums that fall due (1) while he or she stays disabled; and (2) before
the benefit termination date.
If the applicant becomes disabled on or after (1) the first contract anniversary
after his or her 65th birthday, or (2) the benefit termination date, we will not
waive any premium that falls due in that period of disability.
CONDITIONS.--Both of these conditions must be met: (1) The applicant must become
disabled while this contract is in force with no premium in default past its
days of grace. (2) The applicant must stay disabled for a period of at least six
months while living.
EXCEPTIONS.--We will not waive any premium if the applicant becomes disabled
from: (1) an injury he causes to himself, or she causes to herself, on purpose;
or (2) sickness or injury due to service on or after the contract date in the
armed forces of any country(ies) at war. The word war means declared or
undeclared war and includes resistance to armed aggression.
SUCCESSIVE DISABILITIES.--Here is what happens if the applicant has at least one
premium waived while disabled, then gets well so that premium payment resumes,
and then becomes disabled again. In this case, we will not apply the six-month
period that would otherwise be required by Condition (2) and will consider the
second period of disability to be part of the first period unless (1) the
applicant has done gainful work, for which he or she is reasonably fitted, for
at least six months between the periods; or (2) the applicant became disabled
the second time from an entirely different cause.
If we do not apply the six-month period required by Condition (2), we also will
not count the days when there was no disability as part of the two year period
when disability means the applicant cannot do any of the duties of his or her
regular occupation.
(Continued on Next Page)
VL 150 Y
II-170
<PAGE>
(Continued from Preceding Page)
NOTICE AND PROOF OF CLAIM.--Notice and proof of any claim must be given to us
while the applicant is living and disabled, or as soon as reasonably possible
thereafter. If notice or proof is not given as soon as reasonably possible, we
will not waive any premium due more than one year before the date the notice or
proof is given to us. We may require proof at reasonable times that the
applicant is still disabled. After he or she has been disabled for two years, we
will not ask for proof more than once a year. As a part of any proof, we have
the right to require that the applicant be examined at our expense by doctors of
our choice.
RECOVERY FROM DISABILITY.--We will stop waiving premiums if (1) disability ends;
or (2) we ask for proof that the applicant is disabled and we do not receive it;
or (3) we require that the applicant be examined and he or she fails to do so.
MISCELLANEOUS PROVISIONS
REINSTATEMENT.--If this contract is reinstated, it will not include this Benefit
on the life of the applicant unless we are given any facts we need to satisfy us
that he or she is insurable for the Benefit.
MISSTATEMENT OF AGE OR SEX.--The first paragraph under Misstatement of Age or
Sex on page 6 is changed to: If the Insured's stated age or sex or both are not
correct, or if the applicant's stated age or sex or both are not correct, here
is what we will do. We will change each benefit and any amount to be paid under
this contract to what the premium would have bought for the correct age and sex.
General.--Any premiums that fall due are payable until we approve a claim. We
will refund any premium paid that is later waived. But we will not, of course,
refund any premium or part of a premium that was or is to be returned in accord
with the Premium Adjustment provision in this contract.
There might be unpaid premiums that fall due (1) after disability starts; but
(2) more than, one year before we have notice of claim at our Service Office. Or
disability might start in the days of grace of an unpaid premium. In either
case, if we are otherwise able to approve a claim, those unpaid premiums that we
do not waive will be due us with compound interest at 8% a year. If we do not
receive them, we will deduct them with interest from any amount we pay under the
contract.
Any premium we waive will be at the frequency in effect when the applicant
becomes disabled. The provisions of this Benefit, and those of any other benefit
in the contract for waiving premiums in the event of disability, will not cause
any premium to be waived more than once.
If we waive premiums, the effect on this contract will be the same as if the
premiums had been paid in cash. But the Premium Adjustment provision will not
apply to any premium that was not paid because it was waived under this Benefit.
BENEFIT PREMIUMS.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the earlier of (1) the first contract anniversary after
the Insured's 24th birthday, and (2) the last contract anniversary before the
one at the end of the premium period.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day that is the last premium due date before the benefit
termination date we show on the Contract Data page(s);
3. the date the contract is surrendered under its Cash Value Option, if it has
one; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
----------------------------
Secretary
VL 150 Y Printed in U.S.A.
II-171
EXHIBIT 1.A.(13)(nn)
RIDER FOR
APPLICANT'S WAIVER OF PREMIUM BENEFIT
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
DEATH PROVISION
DEATH BENEFIT.--We will waive those contract premiums that fall due after the
applicant's death but before the benefit termination date which we show on the
Contract Data page(s). For us to do so, we must receive due proof that he or she
died (1) before that date and (2) while this contract is in force with no
premium in default past its days of grace. But this promise is subject to all
the provisions of this Benefit and of the rest of this contract.
SUICIDE EXCLUSION.--If the applicant, whether sane or insane, dies by suicide
within the period that we state in the Suicide Exclusion on page 5, we will not
waive, under this Benefit, the premiums we describe above. Instead, we will
return the sum of the premiums paid for the Benefit.
DISABILITY PROVISION
TOTAL DISABILITY BENEFIT.--Before the benefit termination date, we will waive
contract premiums that fall due while the applicant is totally disabled. But
this is subject to all the provisions of this Benefit and of the rest of this
contract.
DISABILITY DEFINED.--When we use the words disability and disabled in this
Benefit we mean total disability and totally disabled. Here is how we define
them: (1) until the applicant has stayed disabled for two years, we mean that he
or she cannot, due to sickness or injury, do any of the duties of his or her
regular occupation; but (2) after the applicant has stayed disabled for two
years, we mean that he or she cannot, due to sickness or injury, do any gainful
work for which he or she is reasonably fitted by education, training, or
experience.
Except for what we state in the next sentence, we will at no time regard an
applicant as disabled who is doing gainful work for which he or she is
reasonably fitted by education, training, or experience. We will regard an
applicant as disabled, even if working or able to work, if he or she incurs,
during a period in which premiums are eligible to be waived as we describe
below, one of the following: (1) permanent and complete blindness of both eyes;
or (2) severance of both hands at or above the wrists or both feet at or above
the ankles; or (3) severance of one hand at or above the wrist and one foot at
or above the ankle.
PREMIUMS ELIGIBLE TO BE WAIVED.--If the applicant becomes disabled before the
first contract anniversary after his or her 65th birthday, we will waive only
those premiums that fall due (1) while he or she stays disabled; and (2) before
the benefit termination date.
If the applicant becomes disabled on or after (1) the first contract anniversary
after his or her 65th birthday, or (2) the benefit termination date, we will not
waive any premium that falls due in that period of disability.
CONDITIONS.--Both of these conditions must be met: (1) The applicant must become
disabled while this contract is in force with no premium in default past its
days of grace. (2) The applicant must stay disabled for a period of at least six
months while living.
EXCEPTIONS.--We will not waive any premium if the applicant becomes disabled
from: (1) an injury he causes to himself, or she causes to herself, on purpose;
or (2) sickness or injury due to service on or after the contract date in the
armed forces of any country(ies) at war. The word war means declared or
undeclared war and includes resistance to armed aggression.
SUCCESSIVE DISABILITIES.--Here is what happens if the applicant has at least one
premium waived while disabled, then gets well so that premium payment resumes,
and then becomes disabled again. In this case, we will not apply the six-month
period that would otherwise be required by Condition (2) and will consider the
second period of disability to be part of the first period unless (1) the
applicant has done gainful work, for which he or she is reasonably fitted, for
at least six months between the periods; or (2) the applicant became disabled
the second time from an entirely different cause.
If we do not apply the six-month period required by Condition (2), we also will
not count the days when there was no disability as part of the two year period
when disability means the applicant cannot do any of the duties of his or her
regular occupation.
(Continued on Next Page)
VL 150 N
II-172
<PAGE>
(Continued from Preceding Page)
NOTICE AND PROOF OF CLAIM.--Notice and proof of any claim must be given to us
while the applicant is living and disabled, or as soon as reasonably possible.
If notice or proof is not given as soon as reasonably possible, we will not
waive any premium due more than one year before the date the notice or proof is
given to us. We may require proof at reasonable times that the applicant is
still disabled. After he or she has been disabled for two years, we will not ask
for proof more than once a year. As a part of any proof, we have the right to
require that the applicant be examined at our expense by doctors of our choice.
RECOVERY FROM DISABILITY.--We will stop waiving premiums if (1) disability ends;
or (2) we ask for proof that the applicant is disabled and we do not receive it;
or (3) we require that the applicant be examined and he or she fails to do so.
MISCELLANEOUS PROVISIONS
REINSTATEMENT.--If this contract is reinstated, it will not include this Benefit
on the life of the applicant unless we are given any facts we need to satisfy
us that he or she is insurable for the Benefit.
MISSTATEMENT OF AGE OR SEX.--The first paragraph under Misstatement of Age or
Sex on page 6 is changed to: If the Insured's stated age or sex or both are not
correct, or if the applicant's stated age or sex or both are not correct, here
is what we will do. We will change each benefit and any amount to be paid under
this contract to what the premium would have bought for the correct age and sex.
General.--Any premiums that fall due are payable until we approve a claim. We
will refund any premium paid that is later waived. But we will not, of course,
refund any premium or part of a premium that was or is to be returned in accord
with the Premium Adjustment provision in this contract.
There might be unpaid premiums that fall due (1) after disability starts; but
(2) more than one year before we have notice of claim at our Service Office. Or
disability might start in the days of grace of an unpaid premium. In either
case, if we are otherwise able to approve a claim, those unpaid premiums that we
do not waive will be due us with compound interest at 6% a year. If we do not
receive them, we will deduct them with interest from any amount we pay under the
contract.
Any premium we waive will be at the frequency in effect when the applicant
becomes disabled. The provisions of this Benefit, and those of any other
benefit in the contract for waiving premiums in the event of disability, will
not cause any premium to be waived more than once.
If we waive premiums, the effect on this contract will be the same as if the
premiums had been paid in cash. But the Premium Adjustment provision will not
apply to any premium that was not paid because it was waived under this Benefit.
BENEFIT PREMIUMS.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the earlier of (1) the first contract anniversary after
the Insured's 24th birthday, and (2) the last contract anniversary before the
one at the end of the premium period.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the day that is the last premium due date before the benefit
termination date we show on the Contract Data page(s);
3. the date the contract is surrendered under its Cash Value Option, if it has
one; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey.
By /s/ SPECIMEN
-------------------------
Secretary
VL 150 N
II-173
EXHIBIT 1.A.(13)(oo)
RIDER FOR
LEVEL TERM INSURANCE BENEFIT ON LIFE OF INSURED
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
BENEFIT.--We will pay an amount under this Benefit if we receive due proof that
the Insured died (1) (in the term period for the Benefit; and (2) whiie this
contract is in force with no premium in default past its days of grace. Any
proceeds under this contract that may arise from the Insured's death will
include this amount. But our payment is subject to all the provisions of the
Benefit and of the rest of this contract.
We show the amount of term insurance on the Contract Data page(s). We also show
the term period for the Benefit there. It starts on the contract date, which we
show on the first page. The anniversary at the end of the term period is part of
that period.
CONVERSION TO ANOTHER PLAN OF INSURANCE
RIGHT TO CONVERT.--You may be able to exchange this Benefit for a new contract
of life insurance on the Insured's life in either this company or The Prudential
Insurance Company of America. In any of these paragraphs. when we use the phrase
the company we mean whichever of these companies may issue the new contract. And
where we use the phrase new contract we mean the contract for which the Benefit
may be exchanged. You will not have to prove that the Insured is insurable.
CONDITIONS.--Your right to make this exchange is subject to all these
conditions: (1) You must ask for the exchange in writing and in a form that
meets our needs. (2) You must send this contract to us to be endorsed. (3) We
must have your request and the contract at our Service Office while the Benefit
is in force and before the end of its term period.
The new contract will not take effect unless the premium for it is paid while
the Insured is living and within 31 days after its contract date. If the premium
is paid as we state, it will be deemed that: (1) the insurance under the new
contract took effect on its contract date; and (2) this Benefit ended just
before that contract date. We will return that part, if any, of the last premium
paid for the Benefit that is more than was needed to pay premiums to that
contract date.
CONTRACT DATE.--The date of the new contract will be the date you ask for in
your request. But it may not be after the date to which premiums are paid for
this Benefit. It may not be after the end of the term period for the Benefit.
And it may not be more than 31 days before we have your request at our Service
Office.
CONTRACT SPECIFICATIONS.--The new contract will be in the same rating class as
this contract. The company will set the issue age and the premiums for the new
contract in accord with its regular rules in use on the date of the new
contract.
The new contract may call for annual premiums. If the company agrees, you will
be able to have premiums fall due more often.
The contract may be any one of the following:
1. A Life Paid Up at Age 85 plan. In this case the new contract will be issued
by The Prudential Insurance Company of America. Its face amount will be the
amount you ask for in your request. But it cannot be less than $10,000 or more
than the amount of term insurance for this Benefit.
2. A Variable Life contract if Pruco Life Insurance Company of New Jersey is
regularly issuing such contracts at that time. Its face amount will be the
amount you ask for in your request. But it cannot be less than $25,000 or more
than the amount of term insurance for this Benefit.
3. An Appreciable Life or Variable Appreciable Life contract, if Pruco Life
lnsurance Company of New Jersey is regularly issuing such contracts at that
time. Its face amount will be the amount you ask for in your request. But it
cannot be less than $50,000 or more than the amount of term insurance for this
Benefit.
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next two paragraphs. If this contract has a benefit for
waiving premiums in the event of disability and the company would include that
kind of benefit in other contracts like the new contract, the company will put
the benefit in the new contract. The benefit, if any, in the new contract will
be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan and for the same rating class, amount, issue age and sex.
(Continued on Next Page)
VL 131 N
II-174
<PAGE>
CONVERSION TO ANOTHER PLAN OF INSURANCE (Continued)
A benefit for waiving premiums that would have been allowed under this contract,
and that would otherwise be allowed under the new contract, will not be denied
just because disability started before the contract date of the new contract.
But any premium to be waived for that disability under the new contract must be
at the frequency that was in effect for this contract when the disability
started.
No premium will be waived under the new contract unless it has a benefit for
waiving premiums in the event of disability. This will be so even if premiums
have been waived under this contract.
CHANGES.--You may be able~to have this Benefit changed to a new contract of life
insurance other than in accord with the requirements for exchange that we state
above. But any change may be made only if the company consents, and will be
subject to conditions and charges that are then determined.
MISCELLANEOUS PROVISIONS
BENEFIT PREMIUMS.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the contract anniversary at the end of the term period
for the Benefit.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the last day before the contract date of any other contract (a)
for which the Benefit is exchanged, or (b) to which the Benefit is changed;
3. the date the contract is surrendered under its Cash Value Option, if it has
one: and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
----------------------------
Secretary
VL 131 N
II-175
EXHIBIT 1.A.(13)(pp)
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
Insured Rider for Policy No.
SPECIAL PREMIUM REMITTANCE PLAN
Premiums are due monthly. They may be less than the smallest premium we normally
permit; they are being paid under a special plan. If they are no longer to be
paid under such a plan, we have the right to require that they be paid less
often. If we do so: (1) we will apply the rules which we would have used had
there been no special plan; and (2) we will give written notice.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
---------------------------
Secretary
PLY 40--84
II-176
EXHIBIT 1.A.(13)(qq)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provisions of this policy entitled "Loan Value", "Interest Charge" and
"Effect of a Loan" are replaced at issue by the following:
LOAN VALUE.--During the first contract year the loan value is zero. After the
first contract year, it is 90% of the sum of the net cash value and any existing
contract debt.
If the difference between the loan value and any existing contract debt is $500
or more, ycu may borrow any amount from $500 up to that difference. If the
difference is less than $500, you may not borrow any amount unless it is to pay
premiums on this contract.
Example 1: Suppose the net cash value is $8,000. You borrowed $1,500 a few
months ago. Suppose also that now there is interest of $40 charged but not yet
due. The contract debt is now $1,540, which is made up of the $1,500 loan and
the $40 interest.
Example 2: Suppose, in example 1, you want to borrow all that you can. The loan
value is $8,586; to compute it we add the net cash value ($8,000) to the
contract debt ($1,540) and take 90% of the sum. We will lend you $7,046 which is
the difference between the $8,586 loan value and the $1,540 contract debt. This
will increase the contract debt to $8,586. We will add the new amount borrowed
to the existing loan and will charge interest on it, too.
There are three exceptions to the above definition of loan value. The first is
that in the days of grace of a premium in default, the loan value is what it was
on the due date of that premium, plus 90% of the excess investment return since
that date. The second is that if the contract is in force as reduced paid-up
insurance we use anniversaries and not premium due dates to find the loan value
since there are no more of those due dates. The third is that if the contract is
in force as reduced paid-up insurance, the loan value is the amount that would
grow with interest to equal the net single premium on the next anniversary.
INTEREST CHARGE.--We will charge interest daily on any loan. Interest is due on
each contract anniversary, or when the loan is paid back if that comes first. If
interest is not paid when due, it will become part of the loan. Then we will
start to charge interest on it, too.
The loan interest rate is the annual rate we set from time to time. The rate
will never be greater than is permitted by law. It will change only on a
contract anniversarv.
Before the start of each contract year, we will determine the loan interest rate
we can charge for that contract year. To do this, we will first find the rate
that is the greater of (1) The Published Monthly Average (which we describe
below) for the calendar month ending two months before the calendar month of the
contract anniversary; and (2) the assumed rate of return for this contract,
plus 1%.
If that greater rate is at least 1/2% more than the loan interest rate we had
set for the current contract year, we have the right to increase the loan
interest rate by at least 1/2%, up to that greater rate. If it is at least 1/2%
less, we will decrease the loan interest rate to be no more than the greater
rate. We will not change the loan interest rate by less than 1/2%.
When you make a loan we will tell you the initial interest rate for the loan. We
will send you a notice if there is to be an increase in the rate.
The Published Monthly Average means:
1. Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published
by Moody's Investors Service, Inc. or any successor to that service; or
2. If that average is no longer published, a substantially similar average,
established by the insurance regulator where this contract is delivered.
Example 3: Suppose the contract date is in 1987. Six months before the
anniversary in 1996 you borrow $1,000 out of a $4,000 loan value. Assume we
charge 8% a year. Three months later, but still three months before the
anniversary, we will have charged about $20 interest. This amount will be a few
cents more or less than $20 since some months have more days than others. The
interest will not be due until the anniversary unless the loan is paid back
sooner. The loan will still be $1,000. The contract debt will be $1,020, since
contract debt includes interest charged but not yet due. On the anniversary in
1996 we will have charged about $40 interest. The interest will then be due.
Example 4: Suppose the $40 interest in example 3 is paid on the anniversary.
The loan and contract debt will each become $1,000 right after the payment.
Example 5: Suppose the $40 interest in example 3 is not paid on the anniversary.
The interest will become part of the loan, and we will begin to charge interest
on it, too. The loan and contract debt will each become $1,040.
(Continued on Next Page)
PLY 42--84
II-177
<PAGE>
ALTERATION OF TEXT (Continued)
EFFECT OF A LOAN.--When vou take a loan, we will reduce the investment base by
the amount you borrow, We will also reduce the investment base by interest that
becomes part of the loan because it is not paid when due. When you repay part or
all of a loan we will increase the investment base by the amount you repay. We
will not increase the investment base by interest that is paid before we make it
part of the loan. We will allocate loans and repayments among the subaccounts
in proportion to the investment base in each subaccount as of the date of the
loan or repayment. Only the amount of the investment base will reflect the
investment results of the subaccounts. The amount of the loan will be credited
with a rate which is 1% less than the loan interest rate for the contract year.
Since the amount you borrow is removed from the investment base, a loan will
have a permanent effect on the death benefit and net cash value of this
contract. The longer the loan is outstanding, the greater this effect is likely
to be.
Example 6: Suppose the contract's investment base is $15,000 and that $10,000 is
in subaccount A and $5,000 is in subaccount B. If you make a $9,000 loan we will
reduce the amount in subaccount A by $6,000 and the amount in subaccount B by
$3,000.
Suppose that sometime later, when the investment base in each of the two
subaccounts is the same, you choose to repay the $9,000 loan. We will add $4,500
to the amount in each subaccount.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT ON THE
CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
PLY 42--84 Printed in U.S.A.
II-178
EXHIBIT 1.A.(13)(rr)
[ ] Pruco Life Insurance Company
[ ] Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
_____________________________________ ______________________________________
SPECIAL PREMIUM REMITTANCE PLAN
Premiums are due monthly. They may be less than the smallest premium we
normally permit; they are being paid under a special plan. If they are no longer
to be paid under such a plan, we have the right to require that they be paid
less often. If we do so: (1) we will apply the rules which we would have used
had there been no special plan; and (2) we will give written notice.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
Signed for the Company,
By /s/ SPECIMEN
-------------------
Secretary
- -----------
PLIY 40--84 Printed in U.S.A.
- -----------
II-179
EXHIBIT 1.A.(13)(ss)
ENDORSEMENTS
(Only we can endorse this contract.)
ALTERATION OF TEXT
The provisions of this policy entitled "Loan Value", "Interest Charge" and
"Effect of a Loan" are replaced at issue by the following:
LOAN VALUE.--During the first contract year the loan value is zero. After the
first contract year, it is 90% of the sum of the net cash value and any existing
contract debt.
If the difference between the loan value and any existing contract debt is $500
or more, you may borrow any amount from $500 up to that difference. If the
difference is less than $500, you may not borrow any amount unless it is to pay
premiums on this contract.
Example 1: Suppose the net cash value is $8,000. You borrowed $1,500 a few
months ago. Suppose also that now there is interest of $40 charged but not yet
due. The contract debt is now $1,540, which is made up of the $1,500 loan and
the $40 interest.
Example 2: Suppose, in example 1, you want to borrow all that you can. The loan
value is $8,586; to compute it we add the net cash value ($8,000) to the
contract debt ($1,540) and take 90% of the sum. We will lend you $7,046 which is
the difference between the $8,586 loan value and the $1,540 contract debt. This
will increase the contract debt to $8,586. We will add the new amount borrowed
to the existing loan and will charge interest on it, too.
There are three exceptions to the above definition of loan value. The first is
that in the days of grace of a premium in default, the loan value is what it was
on the due date of that premium, plus 90% of the excess investment return since
that date. The second is that if the contract is in force as reduced paid-up
insurance we use anniversaries and not premium due dates to find the loan value
since there are no more of those due dates. The third is that if the contract is
in force as reduced paid-up insurance, the loan value is the amount that would
grow with interest to equal the net single premium on the next anniversary.
INTEREST CHARGE.--We will charge interest daily on any loan. Interest is due on
each contract anniversary, or when the loan is paid back if that comes first. If
interest is not paid when due, it will become part of the loan. Then we will
start to charge interest on it, too.
The loan interest rate is the annual rate we set from time to time. The rate
will never be greater than is permitted by law. It will change only on a
contract anniversary.
Before the start of each contract year, we will determine the loan interest rate
we can charge for that contract year.
To do this, we will first find the rate that is the greater of (1) The Published
Monthly Average (which we describe below) for the calendar month ending two
months before the calendar month of the contract anniversary; and (2) the
assumed rate of return for this contract, pIus 1%.
If that greater rate is at least 1/2% more than the loan interest rate we had
set for the current contract year, we have the right to increase the loan
interest rate by at least 1/2%, up to that greater rate. If it is at least 1/2%
less, we will decrease the loan interest rate to be no more than the greater
rate. We will not change the loan interest rate by less than 1/2%.
When you make a loan we will tell you the initial interest rate for the loan. We
will send you a notice if there is to be an increase in the rate.
The Published Monthly Average means:
1. Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published
by Moody's Investors Service, Inc. or any successor to that service; or
2. If that average is no longer published, a substantially similar average,
established by the insurance regulator where this contract is delivered.
Example 3: Suppose the contract date is in 1987. Six months before the
anniversary in 1996 you borrow $1,000 out of a $4,000 loan value. Assume we
charge 8% a year. Three months later, but still three months before the
anniversary, we will have charged about $20 interest. This amount will be a few
cents more or less than $20 since some months have more days than others. The
interest will not be due until the anniversary unless the loan is paid back
sooner. The loan will still be $1,000. The contract debt will be $1,020, since
contract debt includes interest charged but not yet due. On the anniversary in
1996 we will have charged about $40 interest. The interest will then be due.
Example 4: Suppose the $40 interest in example 3 is paid on the anniversary. The
loan and contract debt will each become $1,000 right after the payment.
Example 5: Suppose the $40 interest in example 3 is not paid on the anniversary.
The interest will become part of the loan, and we will begin to charge interest
on it, too. The loan and contract debt will each become $1,040.
(Continued on Next Page)
- ----------
PLIY 43-84
- ----------
II-180
<PAGE>
ALTERATION OF TEXT (Continued)
EFFECT OF A LOAN.--When you take a loan, we will reduce the investment base by
the amount you borrow. We will also reduce the investment base by interest that
becomes part of the loan because it is not paid when due. When you repay part
or all of a loan we will increase the investment base by the amount you repay.
We will not increase the investment base by interest that is paid before we make
it part of the loan. We will allocate loans and repayments among the subaccounts
in proportion to the investment base in each subaccount as of the date of the
loan or repayment. Only the amount of the investment base will reflect the
investment results of the subaccounts. The amount of the loan will be credited
with a rate which is 1% less than the loan interest rate for the contract year.
Since the amount you borrow is removed from the investment base, a loan will
have a permanent effect on the death benefit and net cash value of this
contract. The longer the loan is outstanding, the greater this effect is likely
to be.
Example 6. Suppose the contract's investment base is $15,000 and that $10,000 is
in subaccount A and $5,000 is in subaccount B. If you make a $9,000 loan we will
reduce the amount in subaccount A by $6,000 and the amount in subaccount B by
$3,000.
Suppose that sometime later, when the investment base in each of the two
subaccounts is the same, you choose to repay the $9,000 loan. We will add $4,500
to the amount in each subaccount.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT ON THE
CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By SPECIMEN
----------
Secretary
- ----------
PLIY 43-84 Printed in U.S.A.
- ----------
II-181
EXHIBIT 1.A.(13)(tt)
RIDER FOR TERM INSURANCE BENEFIT
ON LIFE OF INSURED--DECREASING AMOUNT AFTER THREE YEARS
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
BENEFIT.--We will pay an amount under this Benefit if we receive due proof that
the Insured died (1) in the term period for the Benefit; and (2) while this
contract is in force with no premium in default past its days of grace. Any
proceeds under this contract that may arise from the Insured's death will
include this amount. But our payment is subject to all the provisions of the
Benefit and of the rest of this contract.
We will use the table below to compute the amount we will pay. We show the
Initial Amount of Term Insurance under this Benefit on the Contract Data
page(s). We also show the term period for the Benefit there. It starts on the
contract date, which we show on the first page. The anniversary at the end of
the term period is part of that period.
TABLE OF AMOUNTS OF INSURANCE
AMOUNTS PAYABLE.--We show here the amount we will pay, based on the Insured's
issue age, for each $1,000 of Initial Amount of Term Insurance if death occurs
in the contract year ending with the anniversary shown.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 18 19 20 21 22 23 24 25 26 27 28
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 978 977 977 976 976 975 974 974 973 972 971
5 956 955 953 952 951 950 949 947 946 944 943
6 933 932 930 929 927 925 923 921 919 917 914
7 911 909 907 905 902 900 897 895 892 889 886
8 889 886 884 881 878 875 872 868 865 861 857
9 867 864 860 857 854 850 846 842 838 833 829
10 844 841 837 833 829 825 821 816 811 806 800
11 822 818 814 810 805 800 795 789 784 778 771
12 800 795 791 786 780 775 769 763 757 750 743
13 778 773 767 762 756 750 744 737 730 722 714
14 756 750 744 738 732 725 718 710 703 694 686
15 733 727 721 714 707 700 692 684 676 667 657
16 711 705 698 690 683 675 667 658 649 639 629
17 689 682 674 667 659 650 641 632 622 611 600
18 667 659 651 643 634 625 615 605 595 583 571
19 644 636 628 619 610 600 590 579 568 556 543
20 622 614 605 595 585 575 564 553 540 528 514
21 600 591 581 571 561 550 538 526 513 500 486
22 578 568 558 548 537 525 513 500 486 472 457
23 556 545 535 524 512 500 487 474 459 444 429
24 533 523 512 500 488 475 462 447 432 417 400
25 511 500 488 476 463 450 436 421 405 389 371
26 489 477 465 452 439 425 410 395 378 361 343
27 467 454 442 429 415 400 385 368 351 333 314
28 445 432 419 405 390 375 359 342 324 306 286
29 422 409 395 381 366 350 333 316 297 278 257
30 400 386 372 357 341 325 308 289 270 250 229
31 378 364 349 333 317 300 282 263 243 222 200
32 356 341 325 310 293 275 256 237 216 200 200
33 333 318 302 286 268 250 231 210 200 200 200
34 311 295 279 262 244 225 205 200 200 200 200
35 289 273 256 238 220 200 200 200 200 200 200
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Table Continued on Next Page)
VL 136 N
II-182
<PAGE>
<TABLE>
<CAPTION>
(Table Continued from Preceding Page)
- ------------------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 18 19 20 21 22 23 24 25 26 27 28
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
36 $267 $250 $232 $214 $200 $200 $200 $200 $200 $200 $200
37 245 227 209 200 200 200 200 200 200 200 200
38 222 204 200 200 200 200 200 200 200 200 *
39 200 200 200 200 200 200 200 200 200 *
40 200 200 200 200 200 200 200 200 *
41 200 200 200 200 200 200 200 *
42 200 200 200 200 200 200 *
43 200 200 200 200 200 *
44 200 200 200 200 *
45 200 200 200 *
46 200 200 *
47 200 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 29 30 31 32 33 34 35 36 37 38 39 40 41 42
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 971 970 969 968 967 966 964 963 962 960 958 957 955 952
5 941 939 938 935 933 931 929 926 923 920 917 913 909 905
6 912 909 906 903 900 897 893 889 885 880 875 870 864 857
7 882 879 875 871 867 862 857 852 846 840 833 826 818 810
8 853 849 844 839 833 828 821 815 808 800 792 783 773 762
9 824 818 813 806 800 793 786 778 769 760 750 739 727 714
10 794 788 781 774 767 759 750 741 731 720 708 696 682 667
11 765 758 750 742 733 724 714 704 692 680 667 652 636 619
12 735 727 719 710 700 690 679 667 654 640 625 609 591 571
13 706 697 688 677 667 655 643 630 615 600 583 565 546 524
14 676 667 656 645 663 621 607 593 577 560 542 522 500 476
15 647 636 625 613 600 586 571 556 538 520 500 478 455 429
16 618 606 594 581 567 552 536 518 500 480 458 435 409 381
17 588 576 563 548 533 517 500 481 462 440 417 391 364 333
18 559 546 531 516 500 483 464 444 423 400 375 348 318 286
19 529 515 500 484 467 448 429 407 385 360 333 304 273 238
20 500 485 469 452 433 414 393 370 346 320 292 261 227 200
21 471 455 438 419 400 379 357 333 308 280 250 217 200 200
22 441 424 406 387 367 345 322 296 269 240 208 200 200 200
23 412 394 375 355 333 310 286 259 231 200 200 200 200 200
24 382 364 344 323 300 276 250 222 200 200 200 200 200 *
25 353 333 313 290 267 241 200 200 200 200 200 200 *
26 324 303 281 258 233 207 200 200 200 200 200 *
27 294 273 250 226 200 200 200 200 200 200 *
28 265 243 219 200 200 200 200 200 200 *
29 235 212 200 200 200 200 200 200 *
30 206 200 200 200 200 200 200 *
31 200 200 200 200 200 200 *
32 200 200 200 200 200 *
33 200 200 200 200 *
34 200 200 200 *
35 200 200 *
36 200 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Table Continued on Next Page)
VL 136 N
II-183
<PAGE>
(Table Continued from Preceding Page)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- --------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 43 44 45 46 47 48 49 50 51 52 53 54 55
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 950 947 944 941 938 933 929 923 917 909 900 889 875
5 900 895 889 882 875 867 857 846 833 818 800 778 750
6 850 842 833 824 813 800 786 769 750 727 700 667 625
7 800 789 778 765 750 733 714 692 667 636 600 556 500
8 750 737 722 706 688 667 643 615 583 545 500 444 375
9 700 684 667 647 625 600 571 538 500 455 400 333 250
10 650 632 611 588 563 533 500 462 417 364 300 222 200
11 600 579 556 529 500 467 429 385 333 273 200 200 *
12 550 526 500 471 438 400 357 308 250 200 200 *
13 500 474 444 412 375 333 286 231 200 200 *
14 450 421 389 353 313 267 214 200 200 *
15 400 368 333 294 250 200 200 200 *
16 350 316 278 235 200 200 200 *
17 300 263 222 200 200 200 *
18 250 211 200 200 200 *
19 200 200 200 200 *
20 200 200 200 *
21 200 200 *
22 200 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
CONVERSION TO ANOTHER PLAN OF INSURANCE
RIGHT TO CONVERT.--You may be able to exchange this Benefit for a new contract
of life insurance on the Insured's life in either this company or The Prudential
Insurance Company of America. In any of these paragraphs, when we use the phrase
the company we mean whichever of these companies may issue the new contract. And
where we use the phrase new contract we mean the contract for which the Benefit
may be exchanged. You will not have to prove that the Insured is insurable.
CONDITIONS.--Your right to make this exchange is subject to all these
conditions: (1) The amount we would have paid under this Benefit if the Insured
had died just before the contract date of the new contract must be large enough
to meet the minimum for a new contract, as we describe under Contract
Specifications. (2) You must ask for the exchange in writing and in a form that
meets our needs. (3) You must send this contract to us to be endorsed. (4) We
must have your request and the contract at our Service Office while the Benefit
is in force and at least five years before the end of its term period. The new
contract will not take effect unless the premium for it is paid while the
Insured is living and within 31 days after its contract date. If the premium is
paid as we state, it will be deemed that: (1) the insurance under the new
contract took effect on its contract date; and (2) this Benefit ended just
before that contract date. We will return that part, if any, of the last premium
paid for the Benefit that is more than was needed to pay premiums to that
contract date.
CONTRACT DATE.--The date of the new contract will be the date you ask for in
your request. But it may not be after the date to which premiums are paid for
this Benefit. It may not be less than five years before the end of the term
period for the Benefit. And it may not be more than 31 days before we have your
request at our Service Office.
CONTRACT SPECIFICATIONS.--The new contract will be in the same rating class as
this contract. The company will set the issue age and the premiums for the new
contract in accord with its regular rules in use on the date of the new contact.
(Continued on Next Page)
VL 136 N
II-184
<PAGE>
(Continued from Preceding Page)
The new contract may call for annual premiums. If the company agrees you will be
able to have premiums fall due more often.
The contract may be either one of the following:
1. A Life Paid Up at Age 85 plan. In this case the new contract will be issued
by The Prudential Insurance Company of America. Its face amount will be the
amount you ask for in your request. But it cannot be less than $10,000 or more
than 80% of the amount we would have paid under this Benefit if the Insured had
died just before the contract date of the new contract. (Since $10,000 is 80%
of $12,500, the amount we would have paid must be at least $12,500 for this
exchange to be possible.)
2. A contract like the one to which this Benefit is attached. Its face amount
will be the amount you ask for in your request. But it cannot be less than
$25,000 or more than 80% of the amount we would have paid under the Benefit if
the Insured had died just before the contract date of the new contract. (Since
$25,000 is 80% of $31,250, the amount we would have paid must be at least
$31,250 for this exchange to be possible.)
3. A contract of life insurance of a kind regularly being issued by Pruco Life
Insurance Company of New Jersey at that time for $50,000 or more. Its face
amount will be the amount you ask for in your request. But it cannot be less
than $50,000 or more than 80% of the amount we would have paid under the Benefit
if the Insured had died just before the contract date of the new contract.
(Since $50,000 is 80% of $62,500, the amount we would have paid must be at least
$62,500 for this exchange to be possible.)
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next two paragraphs. If this contract has a benefit for
waiving premiums in the event of disability and the company would include that
kind of benefit in other contracts like the new contract, the company will put
the benefit in the new contract. The benefit, if any, in the new contract will
be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan and for the same rating class, amount, issue age and sex.
A benefit for waiving premiums that would have been allowed under this contract,
and that would otherwise be allowed under the new contract, will not be denied
just because disability started before the contract date of the new contract.
But any premium to be waived for that disability under the new contract must be
at the frequency that was in effect for this contract when the disability
started.
No premium will be waived under the new contract unless it has a benefit for
waiving premiums in the event of disability. This will be so even if premiums
have been waived under this contract.
CHANGES.--You may be able to have this Benefit changed to a contract of life
insurance other than in accord with the requirements for exchange that we state
above. But any change may be made only if the company consents, and will be
subject to conditions and charges that are then determined.
MISCELLANEOUS PROVISIONS
BENEFIT PREMIUMS.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the contract anniversary at the end of the term period for
the Benefit.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract:
2. the end of the last day before the contract date of any other contract (a)
for which the Benefit is exchanged, or (b) to which the Benefit is changed;
3. the date the contract is surrendered under its Cash Value Option, if it has
one; and
4. the date the contract ends for any reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
VL 136 N
II-185
EXHIBIT 1.A.(13)(uu)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
- ------------------------------------ --------------------------------------
VARIABLE REDUCED PAID-UP INSURANCE
This contract is no longer in force on a premium paying basis. It is being kept
in force as variable reduced paid-up insurance on the Insured's life, as we
state under Contract Value Options in the contract.
The new amount of insurance and its effective date are shown in the attached
Table of Values. Unless otherwise stated in the Table, any contract debt was
deducted when we computed the net cash value that was used to provide the
variable reduced paid-up insurance.
The cash value of the variable reduced paid-up insurance will continue to vary
according to the investment results in the separate account. There is no
guaranteed minimum cash value under this option.
The death benefit under this option may change from day to day, but it will
never be less than the amount determined as of the day of default. The death
benefit will increase if investment results are in excess of the assumed rate or
mortality charges lower than the maximum rate. The death benefit will decrease
if investment results are less than the assumed rate, but it will not decrease
below the amount determined on the day of default.
As of the effective date shown in the Table each of these items no longer
applies: (1) the Tabular Cash Values shown on page 4 in the contract; (2) any
Supplementary Benefits or other extra benefits that were made a part of the
contract by rider or endorsement; and (3) any provisions of the contract that do
not apply to the variable reduced paid-up insurance.
If this contract is reinstated, the net cash value fund that applies upon
reinstatement is as we state under Premium Payment and Reinstatement.
The attached Table shows values at the ends of contract years. If we need to
compute values at some time during a contract year, we will count the time since
the start of the year. We will let you know the values for other durations if
you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey
By /s/ SPECIMEN
Secretary
Date July 25, 1988 Attest M. Smith
PLIY 58-85
II-186
EXHIBIT 1.A.(13)(vv)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
- ------------------------------------ --------------------------------------
VARIABLE REDUCED PAID-UP INSURANCE
This contract is no longer in force on a premium paying basis. It is being kept
in force as variable reduced paid-up insurance on the Insured's life, as we
state under Contract Value Options in the contract.
The new amount of insurance and its effective date are shown in the attached
Table of Values. Unless otherwise stated in the Table, any contract debt was
deducted when we computed the net cash value that was used to provide the
variable reduced paid-up insurance.
The cash value of the variable reduced paid-up insurance will continue to vary
according to the investment results in the separate account. There is no
guaranteed minimum cash value under this option.
The death benefit under this option may change from day to day, but it will
never be less than the amount determined as of the day of default. The death
benefit will increase if investment results are in excess of the assumed rate or
mortality charges lower than the maximum rate. The death benefit will decrease
if investment results are less than the assumed rate, but it will not decrease
below the amount determined on the day of default.
As of the effective date shown in the Table each of these items no longer
applies: (1) the Tabular Cash Values shown on page 4 in the contract; (2) any
Supplementary Benefits or other extra benefits that were made a part of the
contract by rider or endorsement; and (3) any provisions of the contract that do
not apply to the variable reduced paid-up insurance.
If this contract is reinstated, the net cash value fund that applies upon
reinstatement is as we state under Premium Payment and Reinstatement.
The attached Table shows values at the ends of contract years. If we need to
compute values at some time during a contract year, we will count the time since
the start of the year. We will let you know the values for other durations if
you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Pruco Life Insurance Company of New Jersey
By /s/ SPECIMEN
Secretary
Date July 25, 1988 Attest M. Smith
PLY 60-85
II-187
EXHIBIT A(13)(ww)
RIDER FOR
TERM INSURANCE BENEFIT ON LIFE OF INSURED SPOUSE
DECREASING AMOUNT AFTER THREE YEARS
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
BENEFIT.--We will pay an amount under this benefit if we receive due proof that
the insured spouse died: (1) in the term period for the benefit; and (2) while
this contract is in force with no premium in default past its days of grace. We
will pay this amount to the beneficiary for insurance payable upon the insured
spouse's death. But our payment is subject to all the provisions of the Benefit
and of the rest of this contract. The phrase insured spouse means the Insured's
spouse named in the application for this contract.
We will use the table below to compute the amount we will pay. We show the
Initial Amount of Term Insurance under this Benefit on the Contract Data
page(s). We also show the term period for the Benefit there. It starts on the
contract date, which we show on the first page. The anniversary at the end of
the term period is part of that period.
TABLE OF AMOUNTS OF INSURANCE
AMOUNTS PAYABLE.--We show here the amount we will pay, based on the insured
spouse's issue age, for each $1,000 of Initial Amount of Term Insurance if death
occurs in the contract year ending with the anniversary shown.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 18 19 20 21 22 23 24 25 26 27 28 29 30 31
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 978 977 977 976 976 975 974 974 973 972 971 971 970 969
5 956 955 953 952 951 950 949 947 946 944 943 941 939 938
6 933 932 930 929 927 925 923 921 919 917 914 912 909 906
7 911 909 907 905 902 900 897 895 892 889 886 882 879 875
8 889 886 884 881 878 875 872 868 865 861 857 853 849 844
9 867 864 860 857 854 850 846 842 838 833 829 824 818 813
10 844 841 837 833 829 825 821 816 811 806 800 794 788 781
11 822 818 814 810 805 800 795 789 784 778 771 765 758 750
12 800 795 791 786 780 775 769 763 757 750 743 735 727 719
13 778 773 767 762 756 750 744 737 730 722 714 706 697 688
14 756 750 744 738 732 725 718 710 703 694 686 676 667 656
15 733 727 721 714 707 700 692 684 676 667 657 647 636 625
16 711 705 698 690 683 675 667 658 649 639 629 618 606 594
17 689 682 674 667 659 650 641 632 622 611 600 588 576 563
18 667 659 651 643 634 625 615 605 595 583 571 559 546 531
19 644 636 628 619 610 600 590 579 568 556 543 529 515 500
20 622 614 605 595 585 575 564 553 540 528 514 500 485 469
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Table Continued on Next Page)
VL 181 Y
II-188
<PAGE>
(Table Continued from Preceding Page)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 18 19 20 21 22 23 24 25 26 27 28 29 30 31
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
21 $600 $591 $581 $571 $561 $550 $538 $526 $513 $500 $486 $471 $455 $438
22 578 568 558 548 537 525 513 500 486 472 457 441 424 406
23 556 545 535 524 512 500 487 474 459 444 429 412 394 375
24 533 523 512 500 488 475 462 447 432 417 400 382 364 344
25 511 500 488 476 463 450 436 421 405 389 371 353 333 313
26 489 477 465 452 439 425 410 395 378 361 343 324 303 281
27 467 454 442 429 415 400 385 368 351 333 314 294 273 250
28 445 432 419 405 390 375 359 342 324 306 286 265 243 219
29 422 409 395 381 366 350 333 316 297 278 257 235 212 200
30 400 386 372 357 341 325 308 289 270 250 229 206 200 200
31 378 364 349 333 317 300 282 263 243 222 200 200 200 200
32 356 341 325 310 293 275 256 237 216 200 200 200 200 200
33 333 318 302 286 268 250 231 210 200 200 200 200 200 200
34 311 295 279 262 244 225 205 200 200 200 200 200 200 200
35 289 273 256 238 220 200 200 200 200 200 200 200 200 *
36 267 250 232 214 200 200 200 200 200 200 200 200 *
37 245 227 209 200 200 200 200 200 200 200 200 *
38 222 204 200 200 200 200 200 200 200 200 *
39 200 200 200 200 200 200 200 200 200 *
40 200 200 200 200 200 200 200 200 *
41 200 200 200 200 200 200 200 *
42 200 200 200 200 200 200 *
43 200 200 200 200 200 *
44 200 200 200 200 *
45 200 200 200 *
46 200 200 *
47 200 *
48 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 32 33 34 35 36 37 38 39 40 41 42 43 44 45
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 968 967 966 964 963 962 960 958 957 955 952 950 947 944
5 935 933 931 929 926 923 920 917 913 909 905 900 895 889
6 903 900 897 893 889 885 880 875 870 864 857 850 842 833
7 871 867 862 857 852 846 840 833 826 818 810 800 789 778
8 839 833 828 821 815 808 800 792 783 773 762 750 737 722
9 806 800 793 786 778 769 760 750 739 727 714 700 684 667
10 774 767 759 750 741 731 720 708 696 682 667 650 632 611
11 742 733 724 714 704 692 680 667 652 636 619 600 579 556
12 710 700 690 679 667 654 640 625 609 591 571 550 526 500
13 677 667 655 643 630 615 600 583 565 546 524 500 474 444
14 645 633 621 607 593 577 560 542 522 500 476 450 421 389
15 613 600 586 571 556 538 520 500 478 455 429 400 368 333
16 581 567 552 536 518 500 480 458 435 409 381 350 316 278
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Table Continued on Next Page)
VL 181 Y
II-189
<PAGE>
(Table Continued from Preceding Page)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 32 33 34 35 36 37 38 39 40 41 42 43 44 45
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
17 $548 $533 $517 $500 $481 $462 $440 $417 $391 $364 $333 $300 $263 $222
18 516 500 483 464 444 423 400 375 348 318 286 250 211 200
19 484 467 448 429 407 385 360 333 304 273 238 200 200 200
20 452 433 414 393 370 346 320 292 261 227 200 200 200 200
21 419 400 379 357 333 308 280 250 217 200 200 200 200 *
22 387 367 345 322 296 269 240 208 200 200 200 200 *
23 355 333 310 286 259 231 200 200 200 200 200 *
24 323 300 276 250 222 200 200 200 200 200 *
25 290 267 241 214 200 200 200 200 200 *
26 258 233 207 200 200 200 200 200 *
27 226 200 200 200 200 200 200 *
28 200 200 200 200 200 200 *
29 200 200 200 200 200 *
30 200 200 200 200 *
31 200 200 200 *
32 200 200 *
33 200 *
34 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
ISSUE AGE
- ---------------------------------------------------------------------------------------
ANNIVER-
SARY 46 47 48 49 50 51 52 53 54 55
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 941 938 933 929 923 917 909 900 889 875
5 882 875 867 857 846 833 818 800 778 750
6 824 813 800 786 769 750 727 700 667 625
7 765 750 733 714 692 667 636 600 556 500
8 706 688 667 643 615 583 545 500 444 375
9 647 625 600 571 538 500 455 400 333 250
10 588 563 533 500 462 417 364 300 222 200
11 529 500 467 429 385 333 273 200 200 *
12 471 438 400 357 308 250 200 200 *
13 412 375 333 286 231 200 200 *
14 353 313 267 214 200 200 *
15 294 250 200 200 200 *
16 235 200 200 200 *
17 200 200 200 *
18 200 200 *
19 200 *
20 *
*NO AMOUNT PAYABLE IF DEATH OCCURS
IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- ---------------------------------------------------------------------------------------
</TABLE>
(Continued on Next Page)
VL 181 Y
II-190
<PAGE>
(Continued from Preceding Page)
PAID-UP INSURANCE
PAID-UP INSURANCE ON LIFE OF INSURED SPOUSE.--The Insured might die (1 in the
term period for this Benefit; (2) while this contract is in force with no
premium in default past its days of grace; and (3) while the insured spouse is
living. In this case, the insurance on the life of the insured spouse under the
Benefit will become paid-up term insurance for decreasing amounts. We will
compute these amounts from the Table of Amounts of Insurance. While the paid-up
insurance is in effect, the contract will remain in force until the end of the
term period for the Benefit. The paid-up insurance will have cash values but no
loan value.
If this Benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance.
But, within 30 days after a contract anniversary, the net cash value will not be
less than it was on that anniversary. We base this net cash value on the insured
spouse's age and sex. The insured spouse's age at any time will be his or her
age last birthday on the contract date plus the length of time since that date.
We use the Commissioners 1980 Standard Ordinary Mortality Table. We use
continuous functions based on age last birthday. We use an effective interest
rate of 4% a year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days, we will pay
interest at the rate of 3% a year. If we are asked for the values which apply,
we will furnish them.
CONVERSION TO ANOTHER PLAN OF INSURANCE
RIGHT TO CONVERT.--While the Insured is living, you may be able to exchange this
Benefit for a new contract of life insurance on the life of the insured spouse
in either this company or The Prudential Insurance Company of America. In any of
these paragraphs, when we use the phrase the company we mean whichever of these
companies may issue the new contract. And where we use the phrase new contract
we mean the contract for which the Benefit may be exchanged. You will not have
to prove that the insured spouse is insurable.
CONDITIONS.--Your right to make this exchange is subject to all these
conditions: (1) The amount we would have paid under this Benefit if the insured
spouse had died just before the contract date of the new contract must be large
enough to meet the minimum for a new contract, as we describe under Contract
Specifications. (2) You must ask for the exchange in writing and in a form that
meets our needs. (3) You must send this contract to us to be endorsed. (4) We
must have your request and the contract at our Service Office while the Benefit
is in force and at least five years before the end of its term period.
The new contract will not take effect unless the premium for it is paid while
the insured spouse is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that: (1) the insurance under the
new contract took effect on its contract date; and (2) this Benefit ended just
before that contract date. We will return that part, if any, of the last premium
paid for the Benefit that is more than was needed to pay premiums to that
contract date.
CONTRACT DATE.--The date of the new contract will be the date you ask for in
your request. But it may not be after the date to which premiums are paid for
this Benefit. It may not be less than five years before the end of the term
period for the Benefit. And it may not be more than 31 days before we have your
request at our Service Office.
CONTRACT SPECIFICATIONS.--The new contract will be in the standard rating class.
The company will set the issue age and the premiums for the new contract in
accord with its regular rules in use on the date of the new contract. The new
contract may call for annual premiums. If the company agrees, you will be able
to have premiums fall due more often.
The contract may be either one of the following:
1. A Life Paid Up at Age 85 plan. In this case the new contract will be issued
by The Prudential Insurance Company of America. Its face amount will be the
amount you ask for in your request. But it cannot be less than $10,000 or more
than 80% of the amount we would have paid under this Benefit if the insured
spouse had died just before the contract date of the new contract. (Since
$10,000 is 80% of $12,500, the amount we would have paid must be at least
$12,500 for this exchange to be possible.)
2. A contract like the one to which this Benefit is attached. Its face amount
will be the amount you ask for in your request. But it cannot be less than
$25,000 or more than 80% of the amount we would have paid under the Benefit if
the insured spouse had died just before the contract date of the new contract.
(Since $25,000 is 80% of $31,250, the amount we would have paid must be at least
$31,250 for this exchange to be possible.)
(Continued on Next Page)
VL 181 Y
II-191
<PAGE>
(Continued from Preceding Page)
3. An Appreciable Life or Variable Appreciable Life Contract, if Pruco Life
Insurance Company is regularly issuing such contracts at that time. Its face
amount will be the amount you ask for in your request. But it cannot be less
than $50,000 or more than 80% of the amount we would have paid under the Benefit
if the insured spouse had died just before the contract date of the new
contract. (Since $50,000 is 80% of $62,500 for this exchange to be possible.)
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next paragraph. If the company would include in other
contracts like the new contract a benefit for waiving premiums in the event of
disability, here is what the company will do. Even though this contract does not
have that benefit on the life of the insured spouse, the company will put it in
the new contract on his or her life. The benefit, if any, in the new contract
will be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan and for the same rating class, amount, issue age and sex.
No premium will be waived under the new contract unless the disability started
on or after its contract date. And no premium will be waived under a new
contract unless it has a benefit for waiving premiums in the event of
disability. This will be so even if premiums have been waived under this
contract.
CHANGES.--You may be able to have this Benefit changed to a new contract of life
insurance other than in accord with the requirements for exchange that we state
above. But any change may be made only if the company consents, and will be
subject to conditions and charges that are then determined.
MISCELLANEOUS PROVISIONS
OWNERSHIP AND CONTROL.--Unless we endorse this contract to say otherwise, while
the Insured is living the owner alone may exercise all ownership and control of
this contract. This includes, but is not limited to, these rights: (1) to assign
the contract; and (2) to change any subsequent owner. A request for such a
change must be in writing to us at our Service Office and in a form that meets
our needs. The change will take effect only when we endorse the contract to show
it.
Unless we endorse this contract to say otherwise: (1) while any insurance is in
force after the Insured's death, the owner of the contract will be the insured
spouse; and (2) the owner alone will be entitled to (a) any contract benefit and
value, and (b) the exercise of any right and privilege granted by the contract
or by us. But any insurance payable upon the Insured's death will be payable to
the beneficiary for that insurance.
BENEFICIARY.--The word beneficiary where we use it in this contract without
qualification means the beneficiary for insurance payable upon the death of the
Insured.
Unless we endorse this contract to say otherwise, the beneficiary for insurance
payable upon the death of the insured spouse will be the Insured if living,
otherwise the estate of the insured spouse.
The beneficiary for insurance payable upon the death of the insured spouse may
be changed. The request must be in writing and in a form that meets our needs.
It will take effect only when we file it at our Service Office; this will be
after the contract is sent to us to be endorsed, if we ask for it. Then any
previous beneficiary's interest in such insurance will end as of the date of the
request. It will end then even if the insured spouse is not living when we file
the request. Any beneficiary's interest is subject to the rights of any assignee
of whom we know. When a beneficiary is designated, any relationship shown is to
the Insured, unless otherwise stated.
MISSTATEMENT OF AGE OR SEX.--If the insured spouse's stated age or sex or both
are not correct, we will change each benefit and any amount payable to what the
premium would have bought for the correct age and sex.
The Schedule of Premiums may show that premiums change or stop on a certain
date. We may have used that date because the insured spouse would attain a
certain age on that date. If we find that the issue age for the insured spouse
was wrong, we will correct that date.
SUICIDE EXCLUSION.--If the insured spouse dies by suicide within the period
which we state in the Suicide Exclusion under General Provisions, we will not
pay the amount we describe under Benefit above. Instead, we will pay no more
than the sum of the premiums paid for this Benefit. We will make that payment in
one sum.
REINSTATEMENT.--If this contract is reinstated, it will not include the
insurance that we provide under this Benefit on the life of the insured spouse
unless we are given any facts we need to satisfy us that the insured spouse is
insurable for the Benefit.
(Continued on Next Page)
VL 181 Y
II-192
<PAGE>
(Continued from Preceding Page)
CONTRACT VALUE OPTIONS.--If this contract has a Contract Value Options provision
it will apply only during the insured's lifetime. Any extended or reduced
paid-up insurance that may be described there is on the life of the Insured
only.
CONTRACT LOANS.--lf this contract has a Loans provision, we will not consider
any contract debt when we determine the amount payable, if any, at the death of
the insured spouse.
INCONTESTABILITY.--Except for non-payment of premium, we will not contest this
Benefit after it has been in force during the insured spouse's lifetime for two
years from the issue date.
BENEFIT PREMIUMS.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the earliest of (1) the death of the Insured, (2) the
death of the insured spouse, and (3) the contract anniversary at the end of the
term period for the Benefit.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the last day before the contract date of any other contract (a)
for which the Benefit is exchanged, or (b) to which the Benefit is changed;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the Benefit is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
VL 181 Y
II-193
EXHIBIT A.(13)(xx)
RIDER FOR
TERM INSURANCE BENEFIT ON LIFE OF INSURED SPOUSE
DECREASING AMOUNT AFTER THREE YEARS
Read the list of Supplementary Benefits on the Contract Data page(s).
This Benefit is a part of this contract only if it is listed there.
BENEFIT.--We will pay an amount under this Benefit if we receive due proof that
the insured spouse died: (1) in the term period for the benefit; and (2) while
this contract is in force with no premium in default past its days of grace. We
will pay this amount to the beneficiary for insurance payable upon the insured
spouse's death. But our payment is subject to all the provisions of the Benefit
and of the rest of this contract. The phrase insured spouse means the Insured's
spouse named in the application for this contract.
We will use the table below to compute the amount we will pay. We show the
Initial Amount of Term Insurance under this Benefit on the Contract Data
Page(s). We also show the term period for the Benefit there. It starts on the
contract date, which we show on the first page. The anniversary at the end of
the term period is part of that period.
TABLE OF AMOUNTS OF INSURANCE
AMOUNTS PAYABLE.--We show here the amount we will pay, based on the insured
spouse's issue age, for each $1,000 of Initial Amount of Term Insurance if death
occurs in the contract year ending with the anniversary shown.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 18 19 20 21 22 23 24 25 26 27 28 29 30 31
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 978 977 977 976 976 975 974 974 973 972 971 971 970 969
5 956 955 953 952 951 950 949 947 946 944 943 941 939 938
6 933 932 930 929 927 925 923 921 919 917 914 912 909 906
7 911 909 907 905 902 900 897 895 892 889 886 882 879 875
8 889 886 884 881 878 875 872 868 865 861 857 853 849 844
9 867 864 860 857 854 850 846 842 838 833 829 824 818 813
10 844 841 837 833 829 825 821 816 811 806 800 794 788 781
11 822 818 814 810 805 800 795 789 784 778 771 765 758 750
12 800 795 791 786 780 775 769 763 757 750 743 735 727 719
13 778 773 767 762 756 750 744 737 730 722 714 706 697 688
14 756 750 744 738 732 725 718 710 703 694 686 676 667 656
15 733 727 721 714 707 700 692 684 676 667 657 647 636 625
16 711 705 698 690 683 675 667 658 649 639 629 618 606 594
17 689 682 674 667 659 650 641 632 622 611 600 588 576 563
18 667 659 651 643 634 625 615 605 595 583 571 559 546 531
19 644 636 628 619 610 600 590 579 568 556 543 529 515 500
20 622 614 605 595 585 575 564 553 540 528 514 500 485 469
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Table Continued on Next Page)
VL 181 N
II-194
<PAGE>
(Table Continued from Preceding Page)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 18 19 20 21 22 23 24 25 26 27 28 29 30 31
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
21 $600 $591 $581 $571 $561 $550 $538 $526 $513 $500 $486 $471 $455 $438
22 578 568 558 548 537 525 513 500 486 472 457 441 424 406
23 556 545 535 524 512 500 487 474 459 444 429 412 394 375
24 533 523 512 500 488 475 462 447 432 417 400 382 364 344
25 511 500 488 476 463 450 436 421 405 389 371 353 333 313
26 489 477 465 452 439 425 410 395 378 361 343 324 303 281
27 467 454 442 429 415 400 385 368 351 333 314 294 273 250
28 445 432 419 405 390 375 359 342 324 306 286 265 243 219
29 422 409 395 381 366 350 333 316 297 278 257 235 212 200
30 400 386 372 357 341 325 308 289 270 250 229 206 200 200
31 378 364 349 333 317 300 282 263 243 222 200 200 200 200
32 356 341 325 310 293 275 256 237 216 200 200 200 200 200
33 333 318 302 286 268 250 231 210 200 200 200 200 200 200
34 311 295 279 262 244 225 205 200 200 200 200 200 200 200
35 289 273 256 238 220 200 200 200 200 200 200 200 200 *
36 267 250 232 214 200 200 200 200 200 200 200 200 *
37 245 227 209 200 200 200 200 200 200 200 200 *
38 222 204 200 200 200 200 200 200 200 200 *
39 200 200 200 200 200 200 200 200 200 *
40 200 200 200 200 200 200 200 200 *
41 200 200 200 200 200 200 200 *
42 200 200 200 200 200 200 *
43 200 200 200 200 200 *
44 200 200 200 200 *
45 200 200 200 *
46 200 200 *
47 200 *
48 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 32 33 34 35 36 37 38 39 40 41 42 43 44 45
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 968 967 966 964 963 962 960 958 957 955 952 950 947 944
5 935 933 931 929 926 923 920 917 913 909 905 900 895 889
6 903 900 897 893 889 885 880 875 870 864 857 850 842 833
7 871 867 862 857 852 846 840 833 826 818 810 800 789 778
8 839 833 828 821 815 808 800 792 783 773 762 750 737 722
9 806 800 793 786 778 769 760 750 739 727 714 700 684 667
10 774 767 759 750 741 731 720 708 696 682 667 650 632 611
11 742 733 724 714 704 692 680 667 652 636 619 600 579 556
12 710 700 690 679 667 654 640 625 609 591 571 550 526 500
13 677 667 655 643 630 615 600 583 565 546 524 500 474 444
14 645 633 621 607 593 577 560 542 522 500 476 450 421 389
15 613 600 586 571 556 538 520 500 478 455 429 400 368 333
16 581 567 552 536 518 500 480 458 435 409 381 350 316 278
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Table Continued on Next Page)
VL 181 N
II-195
<PAGE>
(Table Continued from Preceding Page)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ISSUE AGE
- ------------------------------------------------------------------------------------------------------------------------
ANNIVER-
SARY 32 33 34 35 36 37 38 39 40 41 42 43 44 45
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
17 $548 $533 $517 $500 $481 $462 $440 $417 $391 $364 $333 $300 $263 $222
18 516 500 483 464 444 423 400 375 348 318 286 250 211 200
19 484 467 448 429 407 385 360 333 304 273 238 200 200 200
20 452 433 414 393 370 346 320 292 261 227 200 200 200 200
21 419 400 379 357 333 308 280 250 217 200 200 200 200 *
22 387 367 345 322 296 269 240 208 200 200 200 200 *
23 355 333 310 286 259 231 200 200 200 200 200 *
24 323 300 276 250 222 200 200 200 200 200 *
25 290 267 241 214 200 200 200 200 200 *
26 258 233 207 200 200 200 200 200 *
27 226 200 200 200 200 200 200 *
28 200 200 200 200 200 200 *
29 200 200 200 200 200 *
30 200 200 200 200 *
31 200 200 200 *
32 200 200 *
33 200 *
34 *
*NO AMOUNT PAYABLE IF DEATH OCCURS IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
ISSUE AGE
- ---------------------------------------------------------------------------------------
ANNIVER-
SARY 46 47 48 49 50 51 52 53 54 55
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
2 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
3 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
4 941 938 933 929 923 917 909 900 889 875
5 882 875 867 857 846 833 818 800 778 750
6 824 813 800 786 769 750 727 700 667 625
7 765 750 733 714 692 667 636 600 556 500
8 706 688 667 643 615 583 545 500 444 375
9 647 625 600 571 538 500 455 400 333 250
10 588 563 533 500 462 417 364 300 222 200
11 529 500 467 429 385 333 273 200 200 *
12 471 438 400 357 308 250 200 200 *
13 412 375 333 286 231 200 200 *
14 353 313 267 214 200 200 *
15 294 250 200 200 200 *
16 235 200 200 200 *
17 200 200 200 *
18 200 200 *
19 200 *
20 *
*NO AMOUNT PAYABLE IF DEATH OCCURS
IN THIS CONTRACT YEAR OR ANY LATER CONTRACT YEAR.
- ---------------------------------------------------------------------------------------
</TABLE>
(Continued on Next Page)
VL 181 N
II-196
<PAGE>
(Continued from Preceding Page)
PAID-UP INSURANCE
PAID-UP INSURANCE ON LIFE OF INSURED SPOUSE.--The Insured might die (1) in the
term period for this Benefit; (2) while this contract is in force with no
premium in default past its days of grace; and (3) while the insured spouse is
living. In this case, the insurance on the life of the insured spouse under the
Benefit will become paid-up term insurance for decreasing amounts. We will
compute these amounts from the Table of Amounts of Insurance. While the paid-up
insurance is in effect, the contract will remain in force until the end of the
term period for the Benefit. The paid-up insurance will have cash values but no
loan value.
If this Benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance.
But, within 30 days after a contract anniversary, the net cash value will not be
less than it was on that anniversary. We base this net cash value on the insured
spouse's age and sex. The insured spouse's age at any time will be his or her
age last birthday on the contract date plus the length of time since that date.
We use the Commissioners 1980 Standard Ordinary Mortality Table. We use
continuous functions based on age last birthday. We use an effective interest
rate of 4% a year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days, we will pay
interest at the rate of 3% a year. If we are asked for the values which apply,
we will furnish them.
CONVERSION TO ANOTHER PLAN OF INSURANCE
RIGHT TO CONVERT.--While the Insured is living, you may be able to exchange this
Benefit for a new contract of life insurance on the life of the insured spouse
in either this company or The Prudential Insurance Company of America. In any of
these paragraphs, when we use the phrase the company we mean whichever of these
companies may issue the new contract. And where we use the phrase new ontract we
mean the contract for which the Benefit may be exchanged. You will not have to
prove that the insured spouse is insurable.
CONDITIONS.--Your right to make this exchange is subject to all these
conditions: (1) The amount we would have paid under this Benefit if the insured
spouse had died just before the contract date of the new contract must be large
enough to meet the minimum for a new contract, as we describe under Contract
Specifications. (2) You must ask for the exchange in writing and in a form that
meets our needs. (3) You must send this contract to us to be endorsed. (4) We
must have your request and the contract at our Service Office while the Benefit
is in force and at least five years before the end of its term period.
The new contract will not take effect unless the premium for it is paid while
the irsured spouse is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that: (1) the insurance under the
new contract took effect on its contract date; and (2) this Benefit ended just
before that contract date. We will return that part, if any, of the last premium
paid for the Benefit that is more than was needed to pay premiums to that
contract date.
CONTRACT DATE.--The date of the new contract will be the date you ask for in
your request. But it may not be after the date to which premiums are paid for
this Benefit. It may not be less than five years before the end of the term
period for the Benefit. And it may not be more than 31 days before we have your
request at our Service Office.
CONTRACT SPECIFICATIONS.--The new contract will be in the standard rating class.
The company will set the issue age and the premiums for the new contract in
accord with its regular rules in use on the date of the new contract.
The new contract may call for annual premiums. If the company agrees, you will
be able to have premiums fall due more often.
The contract may be either one of the following:
1. A Life Paid Up at Age 85 plan. In this case the new contract will be issued
by The Prudential Insurance Company of America. Its face amount will be the
amount you ask for in your request. But it cannot be less than $10,000 or more
than 80% of the amount we would have paid under this Benefit if the insured
spouse had died just before the contract date of the new contract. (Since
$10,000 is 80% of $12,500, the amount we would have paid must be at least
$12,500 for this exchange to be possible.)
2. A contract like the one to which this Benefit is attached. Its face amount
will be the amount you ask for in your request. But it cannot be less than
$25,000 or more than 80% of the amount we would have paid under the Benefit if
the insured spouse had died just before the contract date of the new contract.
(Since $25,000 is 80% of $31,250, the amount we would have paid must be at least
$31,250 for this exchange to be possible.)
(Continued on Next Page)
VL 181 N
II-197
<PAGE>
(Continued from Preceding Page)
3. An Appreciable Life or Variable Appreciable Life Contract, if Pruco Life
Insurance Company is regularly issuing such contracts at that time. Its face
amount will be the amount you ask for in your request. But it cannot be less
than $50,000 or more than 80% of the amount we would have paid under the Benefit
if the insured spouse had died just before the contract date of the new
contract. (Since $50,000 is 80% of $62,500 for this exchange to be possible.)
The new contract will not have Supplementary Benefits other than as we describe
in this and in the next paragraph. If the company would include in other
contracts like the new contract a benefit for waiving premiums in the event of
disability, here is what the company will do. Even though this contract does not
have that benefit on the life of the insured spouse, the company will put it in
the new contract on his or her life. The benefit, if any, in the new contract
will be the same one, with the same provisions, that the company puts in other
contracts like it on its contract date. In this paragraph, when we use the
phrase other contracts like it, we mean contracts the company would regularly
issue on the same plan and for the same rating class, amount, issue age and sex.
No premium will be waived under the new contract unless the disability started
on or after its contract date. And no premium will be waived under a new
contract unless it has a benefit for waiving premiums in the event of
disability. This will be so even if premiums have been waived under this
contract.
CHANGES.--You may be able to have this Benefit changed to a new contract of life
insurance other than in accord with the requirements for exchange that we state
above. But any change may be made only if the company consents, and will be
subject to conditions and charges that are then determined.
MISCELLANEOUS PROVISIONS
OWNERSHIP AND CONTROL.--Unless we endorse this contract to say otherwise, while
the Insured is living the owner alone may exercise all ownership and control of
this contract. This includes, but is not limited to, these rights: (1) to assign
the contract; and (2) to change any subsequent owner. A request for such a
change must be in vriting to us at our Service Office and in a form that meets
our needs. The change will take effect only when we endorse the contract to show
it.
Unless we endorse this contract to say otherwise: (1) while any insurance is in
force after the Insured's death, the owner of the contract will be the insured
spouse; and (2) the owner alone will be entitled to (a) any contract benefit and
value, and (b) the exercise of any right and privilege granted by the contract
or by us. But any insurance payable upon the Insured's death will be payable to
the beneficiary for that insurance.
BENEFICIARY.--The word beneficiary where we use it in this contract without
qualification means the beneficiary for insurance payable upon the death of the
Insured.
Unless we endorse this contract to say otherwise, the beneficiary for insurance
payable upon the death of the insured spouse will be the Insured if living,
otherwise the estate of the insured spouse.
The beneficiary for insurance payable upon the death of the insured spouse may
be changed. The request must be in writing and in a form that meets our needs.
It will take effect only when we file it at our Service Office; this will be
after the contract is sent to us to be endorsed, if we ask for it. Then any
previous beneficiary's interest in such insurance will end as of the date of the
request. It will end then even if the insured spouse is not living when we file
the request. Any beneficiary's interest is subject to the rights of any assignee
of whom we know.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
MISSTATEMENT OF AGE OR SEX.--If the insured spouse's stated age or sex or both
are not correct, we will change each benefit and any amount payable to what the
premium would have bought for the correct age and sex.
The Schedule of Premiums may show that premiums change or stop on a certain
date. We may have used that date because the insured spouse would attain a
certain age on that date. If we find that the issue age for the insured spouse
was wrong, we will correct that date.
SUICIDE EXCLUSION.--If the insured spouse, whether sane or insane, dies by
suicide within the period which we state in the Suicide Exclusion under General
Provisions, we will not pay the amount we describe under Benefit above. Instead,
we will pay no more than the sum of the premiums paid for this Benefit. We will
make that payment in one sum.
(Continued on Next Page)
VL 181 N
II-198
<PAGE>
(Continued from Preceding Page)
REINSTATEMENT.--If this contract is reinstated, it will not include the
insurance that we provide under this Benefit on the life of the insured spouse
unless we are given any facts we need to satisfy us that the insured spouse is
insurable for the Benefit.
CONTRACT VALUE OPTIONS.--If this contract has a Contract Value Options provision
it will apply only during the insured's lifetime. Any extended or reduced
paid-up insurance that may be described there is on the life of the Insured
only.
CONTRACT LOANS.--lf this contract has a Loans provision, we will not consider
any contract debt when we determine the amount payable, if any, at the death of
the insured spouse.
INCONTESTABILITY.--Except for non-payment of premium, we will not contest this
Benefit after it has been in force during the insured spouse's lifetime for two
years from the issue date.
BENEFIT PREMIUMS.--We show the premiums for this Benefit on the Contract Data
page(s). They stop on the earliest of (1) the death of the Insured, (2) the
death of the insured spouse, and (3) the contract anniversary at the end of the
term period for the Benefit.
TERMINATION.--This Benefit will end on the earliest of:
1. the end of the last day of grace of a premium in default; it will not
continue if a benefit takes effect under any contract value options provision
that may be in the contract;
2. the end of the last day before the contract date of any other contract (a)
for which the Benefit is exchanged, or (b) to which the Benefit is changed;
3. the date the contract is surrendered under its Cash Value Option, if it has
one, or the paid-up insurance, if any, under the Benefit is surrendered; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
Benefit as of the date to which premiums are paid. Contract premiums due then
and later will be reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER
ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
Secretary
VL 181 N
II-199
EXHIBIT 1.A.(13)(yy)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- --------------------------------------------------- -----------------------
ALTERATION OF TEXT
The provisions of this policy entitled "Loan Value", "Interest Charge" and
"Effect of a Loan" are replaced at issue by the following:
LOAN VALUE.--During the first contract year the loan value is zero. After the
first contract year, it is 90% of the sum of the net cash value and any existing
contract debt.
If the difference between the loan value and any existing contract debt is $500
or more, you may borrow any amount from $500 up to that difference. If the
difference is less than $500, you may not borrow any amount unless it is to pay
premiums on this contract.
Example 1: Suppose the net cash value is $8,000. You borrowed $7,500 a few
months ago. Suppose also that now there is interest of $40 charged but not yet
due. The contract debt is now $1,540, which is made up of the $7,500 loan and
the $40 interest.
Example 2: Suppose, in example 1, you want to borrow all that you can. The loan
value is $8,586; to compute it we add the net cash value ($8,000) to the
contract debt ($1,540) and take 90% of the sum. We will lend you $7,046 which is
the difference between the $8,566 loan value and the $1,540 contract debt. This
will increase the contract debt to $8,586. We will add the new amount borrowed
to the existing loan and will charge interest on it, too.
There are three exceptions to the above definition of loan value. The first is
that in the days of grace of a premium in default, the loan value is what it was
on the due date of that premium, plus 90% of the excess investment return since
that date. The second is that if the contract is in force as reduced paid-up
insurance we use anniversaries and not premium due dates to find the loan value
since there are no more of those due dates. The third is that if the contract is
in force as reduced paid-up insurance, the loan value is the amount that would
grow with interest to equal the net single premium on the next anniversary.
INTEREST CHARGE.--We will charge interest daily on any loan. Interest is due on
each contract anniversary, or when the loan is paid back if that comes first. If
interest is not paid when due, it will become part of the loan. Then we will
start to charge interest on it, too.
The loan interest rate is the annual rate we set from time to time. The rate
will never be greater than is permitted by law. It will change only on a
contract anniversary.
Before the start of each contract year, we will determine the loan interest rate
we can charge for that contract year.
To do this, we will first find the rate that is the greater of (1) The Published
Monthly Average (which we describe below for the calendar month ending two
months before the calendar month of the contract anniversary; and (2) the
assumed rate of return for this contract, plus 1%.
If that greater rate is at least 1/2% more than the loan interest rate we had
set for the current contract year, we have the right to increase the loan
interest rate by at least 1/2%, up to that greater rate. If it is at least 1/2%
less, we will decrease the loan interest rate to be no more than the greater
rate. We will not change the loan interest rate by less than 1/2%.
When you make a loan we will tell you the initial interest rate for the loan. We
will send you a notice if there is to be an increase in the rate.
The Published Monthly Average means:
1. Moody's Corporate Bond Yield Average--Monthly Average Corporates, as
published by Moody's Investors Service, Inc. or any successor to that service;
or
2. If that average is no longer published, a substantially similar average,
established by the insurance regulator where this contract is delivered.
Example 3: Suppose the contract date is in 1987. Six months before the
anniversary in 1996 you borrow $1,000 out of a $4,000 loan value. Assume we
charge 8% a year. Three months later, but still three months before the
anniversary, we will have charged about $20 interest. This amount will be a few
cents more or less than $20 since some months have more days than others. The
interest will not be due until the anniversary unless the loan is paid back
sooner. The loan will still be $1,000. The contract debt will be $1,020, since
contract debt includes interest charged but not yet due. On the anniversary in
1996 we will have charged about $40 interest. The interest will then be due.
(Continued on Next Page)
PLIY 56--85
II-200
<PAGE>
ALTERATION OF TEXT (Continued)
Example 4: Suppose the $40 interest in example 3 is paid on the anniversary. The
loan and contract debt will each become $1,000 right after the payment.
Example 5: Suppose the $40 interest in example 3 is not paid on the anniversary.
The interest will become part of the loan, and we will begin to charge interest
on it, too. The loan and contract debt will each become $1,040.
EFFECT OF A LOAN.--When you take a loan, we will reduce the investment base by
the amount you borrow. We will also reduce the investment base by interest that
becomes part of the loan because it is not paid when due. When you repay part or
all of a loan we will increase the investment base by the amount you repay. We
will not increase the investment base by interest that is paid before we make it
part of the loan. We will allocate loans and repayments among the subaccounts in
proportion to the investment base in each subaccount as of the date of the loan
or repayment. Only the amount of the investment base will reflect the investment
results of the subaccounts. The amount of the loan will be credited with a rate
which is 1% less than the loan interest rate for the contract year. Since the
amount you borrow is removed from the investment base, a loan will have a
permanent effect on the death benefit and net cash value of this contract. The
longer the loan is outstanding, the greater this effect is likely to be.
Example 6: Suppose the contract's investment base is $15,000 and that $10,000 is
in subaccount A and $5,000 is in subaccount B. If you make a $9,000 loan we will
reduce the amount in subaccount A by $6,000 and the amount in subaccount B by
$3,000.
Suppose that sometime later, when the investment base in each of the two
subaccounts is the same, you choose to repay the $9,000 loan. We will add $4,500
to the amount in each subaccount.
This endorsement is in effect because we were asked to make it so. You have the
right to decide whether or not you want it to be in effect at any time. If you
change your mind, you must ask us in writing; your new request will take effect
as soon as we have it at our Service Office.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
Secretary
Date Attest
PLIY 56--85
II-201
EXHIBIT 1.A.(13)(zz)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
Jobn Doe XX XXK XXX
ALTERATION OF TEXT
The provisions of this policy entitled "Loan Value", "Interest Charge" and
"Effect of a Loan" are replaced by the following:
LOAN VALUE.--During the first contract year the loan value is zero. After the
first contract year, it is 90% of the sum of the net cash value and any existing
contract debt.
If the difference between the loan value and any existing contract debt is $500
or more, you may borrow any amount from $500 up to that difference. If the
difference is less than $500, you may not borrow any amount unless it is to pay
premiums on this contract.
Example 1: Suppose the net cash value is $8,000. You borrowed $1,500 a few
months ago. Suppose also that now there is interest of $40 charged but not yet
due. The contract debt is now $1,540, which is made up of the $1,500 loan and
the $40 interest.
Example 2: Suppose, in example 1, you want to borrow all that you can. The loan
value is $8,586; to compute it we add the net cash value ($8,000) to the
contract debt ($1,540) and take 90% of the sum. We will lend you $7,046 which is
the difference between the $8,586 loan value and the $1,540 contract debt. This
will increase the contract debt to $8,586. We will add the new amount borrowed
to the existing loan and will charge interest on it, too.
There are three exceptions to the above definition of loan value. The first is
that in the days of grace of a premium in default, the loan value is what it was
on the due date of that premium, plus 90% of the excess investment return since
that date. The second is that if the contract is in force as reduced paid-up
insurance we use anniversaries and not premium due dates to find the loan value
since there are no more of those due dates. The third is that if the contract is
in force as reduced paid-up insurance, the loan value is the amount that would
grow with interest to equal the net single premium on the next anniversary.
INTEREST CHARGE.--We will charge interest daily on any loan. Interest is due on
each contract anniversary, or when the loan is paid back if that comes first. If
interest is not paid when due, it will become part of the loan. Then we will
start to charge interest on it, too.
The loan interest rate is the annual rate we set from time time. The rate will
never be greater than is permitted by law. It will change only on a contract
anniversary.
Before the start of each contract year, we will determine the loan interest rate
we can charge for that contract year.
To do this, we will first find the rate that is the greater of (1) The Published
Monthly Average (which we describe below) for the calendar month ending two
months before the calendar month of the contract anniversary; and (2) the
assumed rate of return for this contract, plus 1%.
If that greater rate is at least 1/2% more than the loan interest rate we had
set for the current contract year, we have the right to increase the loan
interest rate by at least 1/2%, up to that greater rate. If it is at least 1/2%
less, we will decrease the loan interest rate to be no more than the greater
rate. We will not change the loan interest rate by less than 1/2%.
When you make a loan we will tell you the initial interest rate for the loan. We
will send you a notice if there is to be an increase in the rate.
The Published Monthly Average means:
1. Moody's Corporate Bond Yield Average--Monthly Average Corporates, as
published by Moody's Investors Service, Inc. or any successor to that service
or
2. If that average is no longer published, a substantially similar average,
established by the insurance regulator where this contract is delivered.
Example 3: Suppose the contract date is in 1987. Six months before the
anniversary in 1996 you borrow $1,000 out of a $4,000 loan value. Assume we
charge 8% a year. Three months later, but still three months before the
anniversary, we will have charged about $20 interest. This amount will be a few
cents more or less than $20 since some months have more days than others. The
interest will not be due until the anniversary unless the loan is paid back
sooner. The loan will still be $1,000. The contract debt will be $1,020, since
contract debt includes interest charged but not yet due. On the anniversary in
1996 we will have charged about $40 interest. The interest will then be due.
(Continued on Next Page)
PLY 55-85
II-202
<PAGE>
ALTERATION OF TEXT (Continued)
Example 4: Suppose the $40 interest in example 3 is paid on the anniversary. The
loan and contract debt will each become $1,000 right after the payment.
Example 5: Suppose the $40 interest in example 3 is not paid on the
anniversary. The interest will become part of the loan, and we will begin to
charge interest on it, too. The loan and contract debt will each become $1,040.
EFFECT OF A LOAN.--When you take a loan, we will reduce the investment base by
the amount you borrow. We will also reduce the investment base by interest that
becomes part of the loan because it is not paid when due. When you repay part or
all of a loan we will increase the investment base by the amount you repay. We
will not increase the investment base by interest that is paid before we make it
part of the loan. We will allocate loans and repayments among the subaccounts in
proportion to the investment base in each subaccount as of the date of the loan
or repayment. Only the amount of the investment base will reflect the investment
results of the subaccounts. The amount of the loan will be credited with a rate
which is 1% less than the loan interest rate for the contract year. Since the
amount you borrow is removed from the investment base, a loan will have a
permanent effect on the death benefit and net cash value of this contract. The
longer the loan is outstanding, the greater this effect is likely to be.
Example 6: Suppose the contract's investment base is $15,000 and that $10,000 is
in subaccount A and $5,000 is in subaccount B. If you make a $9,000 loan we will
reduce the amount in subaccount A by $6,000 and the amount in subaccount B by
$3,000.
Suppose that sometime later, when the investment base in each of the two
subaccounts is the same, you choose to repay the $9,000 loan. We will add $4,500
to the amount in each subaccount.
This endorsement is in effect because we were asked to make it so. You have the
right to decide whether or not you want it to be in effect at any time. If you
change your mind, you must ask us in writing; your new request will take effect
as soon as we have it at our Service Office.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company
By [SPECIMEN]
Secretary
Date June 10, 1985 Attest M. Smith
PLY 55--85 Printed in U.S.A.
II-203
EXHIBIT 1.A.(13)(aaa)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
John Doe XX XXX XXX
ALTERATION OF TEXT
The provision of this policy entitled "CONTRACT VALUE OPTIONS" is replaced by
the following:
BENEFIT AFTER THE GRACE PERIOD.--If a premium is in default past its days of
grace and if the net cash value (which we describe under Cash Value Option) is
more than zero, we will use that value to keep the contract in force as one of
three kinds of insurance. One kind is extended insurance; another kind is
reduced paid-up insurance; and the third kind is variable reduced paid-up
insurance. We describe them below. You will find under Automatic Benefit which
kind it will be. Any extra benefit(s) will, of course, end as soon as a premium
is in default past its days of grace unless the form that describes it states
otherwise.
EXTENDED INSURANCE.--This will be term insurance on the Insured's life. We will
pay the amount of term insurance if the Insured dies in the term we describe
below. Before the end of the term there will be cash values but no loan value.
The amount of term insurance will be equal to the insurance amount on the due
date of the premium in default, minus any contract debt. The amount of the
insurance will not vary. The term is a period of time that will start on the due
date of the premium in default. The length of the term will be what is provided
when we use the net cash value as a net single premium for extended term
insurance. The length of the term will depend on the net cash value, the amount
of insurance, the Insured's issue age and sex, and on the length of time since
the contract date. (The net single premiums that we refer to here are not those
we show on the Contract Data page(s). The ones we show there are used to compute
the variable insurance amount.)
Example: Suppose the face amount is $50,000. On the day a premium is due, the
variable insurance amount is $5,140. There is contract debt of $1,300. If the
premium due is not paid at the end of its days of grace, the amount of term
insurance will be $53,840. This comes from the insurance amount of $55,140 (the
face amount of $50,000 plus the variable insurance amount $5,140) minus the
$1,300 contract debt. The term insurance will last as long as the net cash value
will provide it.
There may be extra days of term insurance. This will occur if, on the due date
of the premium in default, the term of extended insurance provided by the net
cash value does not exceed 90 days, or the number of days for which premiums
have been paid, if less. The number of extra days will be (1) 90, or the number
of days for which premiums have been paid, if less, minus (2) the number of days
of extended insurance that would be provided by the net cash value, if there
were no contract debt. The extra days, if any, start on the day after the last
day of term insurance provided by the net cash value, if any. If there is no
such term insurance, they start on the due date of the premium in default. The
term insurance for the extra days has no cash value. There will be no extra days
if you replace the extended insurance with reduced paid-up insurance or variable
reduced paid-up insurance or; you surrender the contract before the extra days
start.
REDUCED PAID-UP INSURANCE.--This will be paid-up life insurance on the Insured's
life. We will pay the amount of this insurance when the Insured dies. There will
be cash values and loan values. The amount of this insurance will be what is
provided when we use the net cash value at the net single premium rate. This
rate depends on the Insured's issue age and sex and on the length of time since
the contract date. The amount of this insurance will not vary.
VARIABLE REDUCED PAID-UP INSURANCE.--This will be paid-up variable life
insurance on the Insured's life. The death benefit may change from day to day,
as we explain below, but if there is no contract debt, it will not be less than
a minimum guaranteed amount determined as of the day when the contract went into
default. There will be cash values and loan values.
The minimum guaranteed amount of insurance will be computed by using the net
cash value at the net single premium rate. The net single premium rate depends
on the Insured's issue age and sex and on the length of time since the contract
date. The amount payable in event of death thereafter will be the greater of (a)
the minimum guaranteed amount and (b) the investment base divided by the net
single premium at the Insured's attained age. In either case the amount will be
adjusted for any contract debt.
Except when it is provided as the automatic benefit, (see below) the Variable
Reduced Paid Up Insurance Option will be available only when the guaranteed
death benefit under the option will be $5,000 or more.
(Continued on Next Page)
PLIY 63-85
II-204
<PAGE>
ALTERATION OF TEXT (Continued)
COMPUTATIONS.--We will make all computations for any of these benefits as of the
due date of the premium in default. But we will consider any loan you take out
or pay back in the days of grace of that premium.
AUTOMATIC BENEFIT.--When a premium is in default past its days of grace, the
contract will stay in force as extended insurance. But it will stay in force as
variable reduced paid-up insurance if either of these statements applies: (1) We
issued the contract in a rating class for which we do not provide extended
insurance; in this case the phrase No Extended Insurance is in the Rating Class
on page 3. (2) The amount of variable reduced paid-up insurance would be at
least as great as the amount of extended insurance.
OPTIONAL BENEFIT.--You may choose to replace any extended insurance that has a
cash value by either variable reduced paid-up insurance or reduced paid-up
insurance. To make this choice, you must do so in writing to us and in a form
that meets our needs, not more than three months after the due date of the
premium in default. You must also send the contract to us to be endorsed.
CASH VALUE OPTION.--You may surrender this contract for its net cash value, if
this value is more than zero. If this value is less than zero, the proceeds on
surrender will be equal to zero. To do so, you must ask us in writing and in a
form that meets our needs. You must also send the contract to us. Here is how we
will compute the net cash value:
1. On a Monthly Date if no premium is in default: The net cash value on a
Monthly Date will be equal to (a) the tabular cash value on that date; plus (b)
the net single premium at the Insured's then attained age for the variable
insurance amount that applies on that date; minus (c) if that date is a premium
due date, and the premium has not been paid, the net premium that applies on
that date; minus (d) any contract debt; minus (e) in the first contract year,
any issue charge instalments that have not yet been paid. The amount of (b) will
be less than zero if the variable insurance amount is less than zero.
2. On any other date if no premium is in default: The net cash value on a date
other than a Monthly Date will be equal to (a) the tabular cash value on that
date; plus (b) the net single premium at the Insured's then attained age for the
variable insurance amount that applies on that date; plus (c) the excess
investment return since the last Monthly Date; minus (d) any contract debt;
minus (e) in the first contract year, any issue charge instalments that have not
yet been paid. The amount of (b) will be less than zero if the variable
insurance amount is less than zero.
3. During the days of grace of a premium in default: The net cash value on any
date will be the net cash value as of the due date of the first unpaid premium
plus the excess investment return since that due date. But we will adjust this
value for any loan you took out or paid back since that due date.
4. After the days of grace of a premium in default: The net cash value as of any
date will be the net value on that date of whichever of these benefits is then
in force: extended insurance; reduced paid-up insurance; or variable reduced
paid-up insurance, less any contract debt. However, within 30 days after an
anniversary, the net cash value will not be less than it was on that
anniversary. We will, of course, adjust it for any loan you took out or paid
back since that anniversary.
If the due date of a paid premium is on or after the date a contract value
option takes effect, we will pay that premium to you in cash.
If all due premiums have been paid, or during the days of grace of a premium in
default, or if the contract is in force as variable reduced paid-up insurance,
we will usually pay any cash value within 7 days after we receive your request
and the contract at our Service Office. But we have the right to defer payment
if (1) the New York Stock Exchange is closed; or (2) the SEC requires that
trading be restricted or declares an emergency; or (3) the SEC lets us defer
payments to protect our contract owners.
If a premium is in default past its days of grace, we have the right to postpone
paying a cash value for up to six months. If we do so for more than 30 days, we
will pay interest at the rate of 3% a year.
TABULAR VALUES.--In the table on page 4 we show tabular values at the ends of
contract years. The tabular value at the beginning of the first contract year is
the net premium then due. If we need to compute tabular values at some time
during a contract year, we will count the time since the start of the year and
any premiums paid for the year. We will let you know the tabular values for
other durations if you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company
By /s/ [SPECIMEN]
Secretary
Date July 25, 1985 Attest M. Smith
PLIY 63--85
II-205
EXHIBIT 1.A.(13)(bbb)
Pruco Life Insurance Company of New Jersey
Insured Rider for Policy No.
- ------------------------------------------ --------------------------------
ALTERATION OF TEXT
The provision of this policy entitled "CONTRACT VALUE OPTIONS" is replaced by
the following:
BENEFIT AFTER THE GRACE PERIOD.--If a premium is in default past its days of
grace and if the net cash value (which we describe under Cash Value Option) is
more than zero, we will use that value to keep the contract in force as one of
three kinds of insurance. One kind is extended insurance; another kind is
reduced paid-up insurance; and the third kind is variable reduced paid-up
insurance. We describe them below. You will find under Automatic Benefit which
kind it will be. Any extra benefit(s) will, of course, end as soon as a premium
is in default past its days of grace unless the form that describes it states
otherwise.
EXTENDED INSURANCE.--This will be term insurance on the Insured's life. We will
pay the amount of term insurance if the Insured dies in the term we describe
below. Before the end of the term there will be cash values but no loan value.
The amount of term insurance will be equal to the insurance amount on the due
date of the premium in default, minus any contract debt. The amount of the
insurance will not vary. The term is a period of time that will start on the
due date of the premium in default. The length of the term will be what is
provided when we use the net cash value as a net single premium for extended
term insurance. The length of the term will depend on the net cash value, the
amount of insurance, the Insured's issue age and sex, and on the length of time
since the contract date. (The net single premiums that we refer to here are not
those we show on the Contract Data page(s). The ones we show there are used to
compute the variable insurance amount.)
Example: Suppose the face amount is $50,000. On the day a premium is due, the
variable insurance amount is $5,140. There is contract debt of $1,300. If the
premium due is not paid at the end of its days of grace, the amount of term
insurance will be $53,840. This comes from the insurance amount of $55,140 (the
face amount of $50,000 plus the variable insurance amount $5,140, minus the
$1,300 contract debt. The term insurance will last as long as the net cash
value will provide it.
There may be extra days of term insurance. This will occur if, on the due date
of the premium in default, the term of extended insurance provided by the net
cash value does not exceed 90 days, or the number of days for which premiums
have been paid, if less. The number of extra days will be (1) 90, or the number
of days for which premiums have been paid, if less, minus (2) the number of days
of extended insurance that would be provided by the net cash value, if there
were no contract debt. The extra days, if any, start on the day after the last
day of term insurance provided by the net cash value, if any. If there is no
such term insurance, they start on the due date of the premium in default. The
term insurance for the extra days has no cash value. There will be no extra days
if you replace the extended insurance with reduced paid-up insurance or variable
reduced paid-up insurance or if you surrender the contract before the extra days
start.
REDUCED PAID-UP INSURANCE.--This will be paid-up life insurance on the Insured's
life. We will pay the amount of this insurance when the Insured dies. There will
be cash values and loan values. The amount of this insurance will be what is
provided when we use the net cash value at the net single premium rate. This
rate depends on the Insured's issue age and sex and on the length of time since
the contract date. The amount of this insurance will not vary.
VARIABLE REDUCED PAID-UP INSURANCE.--This will be paid-up variable life
insurance on the Insured's life. The death benefit may change from day to day,
as we explain below, but if there is no contract debt, it will not be less than
a minimum guaranteed amount determined as of the day when the contract went into
default. There will be cash values and loan values.
The minimum guaranteed amount of insurance will be computed by using the net
cash value at the net single premium rate. The net single premium rate depends
on the Insured's issue age and sex and on the length of time since the contract
date. The amount payable in event of death thereafter will be the greater of (a)
the minimum guaranteed amount and (b) the investment base divided by the net
single premium at the Insured's attained age. In either case the amount will be
adjusted for any contract debt.
Except when it is provided as the automatic benefit, (see below) the Variable
Reduced Paid-Up Insurance Option will be available only when the guaranteed
death benefit under the option will be $5,000 or more.
(Continued on Next Page)
PLY 62-85
II-206
<PAGE>
ALTERATION OF TEXT (Continued)
COMPUTATIONS.--We will make all computations for any of these benefits as of the
due date of the premium in default. But we will consider any loan you take out
or pay back in the days of grace of that premium.
AUTOMATIC BENEFIT.--When a premium is in default past its days of grace, the
contract will stay in force as extended insurance. But it will stay in force as
variable reduced paid-up insurance if either of these statements applies: (1) We
issued the contract in a rating class for which we do not provide extended
insurance; in this case the phrase No Extended Insurance is in the Rating Class
on page 3. (2) The amount of variable reduced paid-up insurance would be at
least as great as the amount of extended insurance.
OPTIONAL BENEFIT.--You may choose to replace any extended insurance that has a
cash value by either variable reduced paid-up insurance or reduced paid-up
insurance. To make this choice, you must do so in writing to us and in a form
that meets our needs, not more than three months after the due date of the
premium in default. You must also send the contract to us to be endorsed.
CASH VALUE OPTION.--You may surrender this contract for its net cash value, if
this value is more than zero. If this value is less than zero, the proceeds on
surrender will be equal to zero. To do so, you must ask us in writing and in a
form that meets our needs. You must also send the contract to us. Here is how we
will compute the net cash value:
1. On a Monthly Date if no premium is in default: The net cash value on a
Monthly Date will be equal to (a) the tabular cash value on that date; plus (b)
the net single premium at the Insured's then attained age for the variable
insurance amount that applies on that date; minus (c) if that date is a premium
due date, and the premium has not been paid, the net premium that applies on
that date; minus (d) any contract debt; minus (e) in the first contract year,
any issue charge instalments that have not yet been paid. The amount of (b) will
be less than zero if the variable insurance amount is less than zero.
2. On any other date if no premium is in default: The net cash value on a date
other than a Monthly Date will be equal to (a) the tabular cash value on that
date; plus (b) the net single premium at the Insured's then attained age for the
variable insurance amount that applies on that date; plus (c) the excess
investment return since the last Monthly Date; minus (d) any contract debt;
minus (e) in the first contract year, any issue charge instalments that have not
yet been paid. The amount of (b) will be less than zero if the variable
insurance amount is less than zero.
3. During the days of grace of a premium in default: The net cash value on any
date will be the net cash value as of the due date of the first unpaid premium
plus the excess investment return since that due date. But we will adjust this
value for any loan you took out or paid back since that due date.
4. After the days of grace of a premium in default: The net cash value as of any
date will be the net value on that date of whichever of these benefits is then
in force: extended insurance; reduced paid-up insurance; Or variable reduced
paid-up insurance, less any contract debt. However, within 30 days after an
anniversary, the net cash value will not be less than it was on that
anniversary. We will, of course, adjust it for any loan you took out or paid
back since that anniversary.
If the due date of a paid premium is on or after the date a contract value
option takes effect, we will pay that premium to you in cash.
If all due premiums have been paid, or during the days of grace of a premium in
default, or if the contract is in force as variable reduced paid-up insurance,
we will usually pay any cash value within 7 days after we receive your request
and the contract at our Service Office. But we have the right to defer payment
if (1) the New York Stock Exchange is closed; or (2) the SEC requires that
trading be restricted or declares an emergency; or (3) the SEC lets us defer
payments to protect our contract owners.
If a premium is in default past its days of grace, we have the right to postpone
paying a cash value for up to six months. If we do so for more than 30 days, we
will pay interest at the rate of 3% a year.
TABULAR VALUES.--In the table on page 4 we show tabular values at the ends of
contract years. The tabular value at the beginning of the first contract year is
the net premium then due. If we need to compute tabular values at some time
during a contract year, we will count the time since the start of the year and
any premiums paid for the year. We will let you know the tabular values for
other durations if you ask for them.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
Signed for the Company,
By /s/ SPECIMEN
Secretary
Date Attest
PLY 62--85
II-207
EXHIBIT 1.A.(13)(ccc)
SETTLEMENT OPTIONS TO PROVIDE ACCELERATION OF DEATH BENEFITS
Subject to all the provisions of this rider and of the rest of the contract, we
will make available the payments described below if the Insured becomes
terminally ill or is confined to a nursing home.
This rider is non-participating. Any dividend payable under this contract will
be the same as that payable under a contract that is similar in all other
respects but does not contain the rider. The factors we use to compute the
benefit base will be set and changed only prospectively, that is, based on
future experience. We will not change these factors to recoup any prior losses
or distribute past gains under the rider.
DEFINITIONS
Convertible Proceeds.--The proceeds payable under this contract at the death of
the Insured, reduced by any contract debt, excluding any term insurance arising
from supplementary benefits (except level term insurance riders still in the
conversion period and for which we charge a premium).
Benefit Base.--The value we will use to determine the monthly benefit payable
under the terminal illness option or the nursing home option. It will be
computed based on the amount of convertible proceeds you elect to place under
the option and a reduced life expectancy. We will calculate the life expectancy,
and the resulting benefit base, using our assumptions, which we may change from
time to time. We will consider, among other things, the Insured's age and sex
and which of the options is being applied for. We will also consider, when
applicable:
1. expected future premiums;
2. future dividends according to the scale in effect when we make the
computation;
3. continuation of any reduction in guaranteed charges;
4. continuation of the current rate of any excess interest credited on contract
values; and
5. an expense charge of up to $150.
The benefit base will be at least as great as the net cash value of the contract
multiplied by the percentage of the convertible proceeds placed under the
terminal illness option or the nursing home option, whichever is elected
Eligible Nursing Home.--An institution or special nursing unit of a hospital
which meets at least one of the following requirements;
1) it is Medicare approved as a provider of skilled nursing care services; or
2) it is licensed as a skilled nursing home or as an intermediate care facility
by the state in which it is located; or
3) it meets all the requirements listed below:
a. it is licensed as a nursing home by the state in which it is located;
b. its main function is to provide skilled, intermediate, or custodial nursing
care;
c. it is engaged in providing continuous room and board accommodations to 3 or
more persons;
d. it is under the supervision of a registered nurse (RN) or licensed practical
nurse (LPN);
e. it maintains a daily medical record of each patient; and
f. it maintains control and records for all medications dispensed.
Institutions which primarily provide residential facilities are not eligible
nursing homes.
TERMINAL ILLNESS OPTION
If we receive evidence satisfactory to us, including certification by a licensed
physician, that the Insured's life expectancy is 6 months or less, you may elect
this option to provide equal monthly payments for 6 months. For each $1,000 of
benefit base, each payment will be at least $168.37, which assumes an annual
interest rate of 5%.
- -------------
0RD 87241--89 NJ
- -------------
II-208
<PAGE>
If the Insured dies before all the payments have been made, we will pay the
beneficiary in one sum the present value of the remaining payments, calculated
at the interest rate we used to determine those payments.
If you do not wish to receive monthly payments, you may elect to receive a
single sum equal to the benefit base.
NURSING HOME OPTION
If (1) the Insured is confined to an eligible nursing home and has been confined
there continuously for the preceding six months, and (2) we receive evidence
satisfactory to us, including certification by a licensed physician, that the
Insured is expected to remain in the nursing home until death, you may elect
level monthly payments for the number of years shown in the table that follows.
For each $1 ,000 of benefit base, each payment will be at least the minimum
amount shown in that table, which assumes an annual interest rate of 5%.
ATTAINED AGE PAYMENT PERIOD MINIMUM MONTHLY PAYMENT FOR
OF INSURED IN YEARS EACH $1,000 OF BENEFIT BASE
64 and under 10 $10.50
65 - 67 8 12.56
68 - 70 7 14.02
71 - 73 6 15.99
74 - 77 5 18.74
78 - 81 4 22.89
82 - 86 3 29.80
87 and over 2 43.64
If the Insured dies before all the payments have been made, we will pay the
beneficiary in one sum the present value of the remaining payments, calculated
at the interest rate we used to determine those payments.
If we agree, you may elect a longer payment period than that shown in the table;
if you do, monthly payments will be reduced so that the present value of the
monthly payments for the longer payment period is equal to the present value of
the payments for the period shown in the table, calculated at an interest rate
of at least 5%.
We reserve the right to set a maximum monthly benefit that we will pay under
this option. If we set a maximum, it will be at least $5,000; we will advise you
of the amount before the payment period begins.
If you do not wish to receive monthly payments, you may elect to receive a
single sum equal to the benefit base.
EFFECT ON CONTRACT
The convertible proceeds will be reduced by any amount converted under one of
these options.
If you convert only a portion of your convertible proceeds under one of these
options, the contract will remain in force and reduced premiums will be payable.
For insurance included in the convertible proceeds, values and the amount of
insurance will be reduced in the same proportion as the reduction in convertible
proceeds. Premiums will be payable as if the contract had been issued at the
reduced amount. Insurance not included in the convertible proceeds will be
unaffected.
If you convert only a portion of your convertible proceeds, the remaining
convertible proceeds must be at least $25,000.
If you convert all of your convertible proceeds, all other benefits under the
contract based on the Insured's life will end. Any insurance under the contract
on the life of someone other than the Insured will remain in effect and we will
waive all future premiums for this insurance.
- -------------
ORD 87241--89 NJ
- -------------
II-209
<PAGE>
CONDITIONS
Your right to receive payment under any of these options is subject to the
following conditions:
1. The contract must be in force other than as extended insurance.
2. You must elect the option in writing in a form that meets our needs.
3. The contract must not be assigned except to us as security for a loan.
4. We reserve the right to set a minimum of no more than $50,000 on the amount
of convertible proceeds you may place under an option.
5. You must send us the contract.
6. The primary purpose of life insurance is to meet your estate planning needs.
This benefit provides for the accelerated payment of life insurance proceeds
and is not intended to cause you to involuntarily invade proceeds ultimately
payable to the named beneficiary. Therefore, accelerated death benefit
proceeds will be made available to you on a voluntary basis only.
Accordingly:
(a) If you are required by law to exercise this option to satisfy the
claims of creditors, whether in bankruptcy or otherwise, you are not
eligible for this benefit.
(b) If you are required by a government agency to exercise this option in
order to apply for, obtain, or retain a government benefit or
entitlement, you are not eligible for this benefit.
RIGHT TO CANCEL
If you ask us in writing and send us the contract, we will cancel this rider.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT
ON THE CONTRACT DATE
The Prudential Insurance Company of America,
By /s/ SPECIMEN
-------------
Secretary
- -------------
ORD 87241--89 NJ
- -------------
II-210
EXHIBIT 1.A.(13)(ddd)
SETTLEMENT OPTIONS TO PROVIDE ACCELERATION OF DEATH BENEFITS
Subject to all the provisions of this rider and of the rest of the contract, we
will make the payments described below if the Insured is terminally ill or needs
an organ transplant.
This rider is non-participating. Any dividend we pay under this contract will be
the same as the one we pay under a contract that is like this one in all other
respects but that does not have this rider.
DEFINITIONS.--Convertible Proceeds--The proceeds we would pay under this
contract at the death of the Insured, less any contract debt and any term
insurance (except level term insurance still in the conversion period and for
which we charge a premium, or extended term insurance with at least one year
remaining in the term).
Benefit Base.--The amount we will pay under the terminal illness option or the
organ transplant option. It will be computed based on: (1) the amount of
convertible proceeds you place under the option, (2) a reduced life expectancy,
and (3) an interest rate no greater than the greater of:
(i) the yield on 90-day Treasury bills at the time of initial acceleration of
benefits, and
(ii) the current maximum adjustable policy loan interest rate based on the
greater of:
(a) Moody's Corporate Bond Yield Averages--Monthly Average Corporates--
published by Moody's Investors Service, Inc., or any successor thereto, that
is approved by the New York Superintendent of Insurance, for the calendar
month ending two months before the date of application for an accelerated
payment, and
(b) the policy guaranteed cash value interest rate plus one percent per annum.
When we compute the life expectancy and the benefit base, we will use our
assumptions. We may change those assumptions from time to time. We will
consider, among other things, the Insured's age and sex and which of the options
is being applied for. We will also consider, if they apply:
1. expected future premiums;
2. future dividends at the scale in effect when we make the computation;
3. continuation of any reduction in guaranteed charges;
4. continuation of the current rate of any excess interest credited on contract
values; and
5. a processing charge of up to $150.
The benefit base will be at least as great as the net cash value of the contract
multiplied by the percentage of the conventible proceeds placed under the
terminal illness option or the organ transplant option, whichever is elected
TERMINAL ILLNESS OPTION.--To choose this option, you must give us evidence that
satisfies us that the Insured's life expectancy is 6 months or less; part of
that evidence must be a certification by a licensed physician.
We will pay you the benefit base in one sum.
ORGAN TRANSPLANT OPTION.--To choose this option, you must give us evidence that
satisfies us that the Insured's life expectancy is 6 months or less unless the
Insured receives a vital organ transplant; part of that evidence must be a
certification by a licensed physician.
We will pay you the benefit base in one sum.
- ----------------
0RD 87241--91--P NY
- ----------------
II-211
<PAGE>
(Continued from Preceding Page)
EFFECT ON CONTRACT.--The convertible proceeds will be reduced by any amount
converted under one of these options.
If you convert only a part of your convertible proceeds, the contract will stay
in force and premiums will be reduced. For insurance included in the convertible
proceeds, values and the amount of insurance will be reduced in the same
proportion as the reduction in convertible proceeds. The new premiums will be
the ones that would apply if the contract had been issued at the reduced amount
and the existing provisions for premium payment will continue to apply,
insurance not included in the convertible proceeds will not be affected.
If you convert only a part of your convertible proceeds, the convertible
proceeds that remain must be at least $25,000.
If you convert all of vour convertible proceeds, all other benefits under the
contract based on the Insured's life will end. Any insurance under the contract
on the life of someone other than the Insured will stay in effect; we will waive
all future premiums for that insurance.
CONDITIONS.--Your right to be paid under one of these options is subject to the
following conditions:
1. The contract must be in force other than as extended insurance in the last
year of its term.
2. You must choose the option in writing in a form that meets our needs.
3. The contract must not be assigned except to us as security for a loan.
4. The minimum amount of convertible proceeds you may place under an option is
the amount needed to provide a benefit of either 25% of the face amount of
the contract or $50,000, whichever is less.
5. You must send us the contract.
6. The main purpose of life insurance is to meet your estate planning needs.
This benefit provides for the accelerated payment of life insurance proceeds.
It is not meant to cause you to involuntarily invade proceeds ultimately
payable to the named beneficiary. Accelerated death benefits will be made
available to you on a voluntary basis only. Therefore:
(a) If you are required by law to use this option to meet the claims of
creditors, whether in bankruptcy or otherwise, you are not eligible for this
benefit.
(b) If you are required by a government agency to use this option in order to
apply for, obtain, or keep a government benefit or entitlement, you are not
eligible for this benefit.
RIGHT TO CANCEL.--lf you ask us in writing and send us the contract, we will
cancel this rider.
RIDER ATTACHED TO AND MADE A PART OF THIS CONTRACT ON THE
CONTRACT DATE
Pruco Life Insurance Company of New Jersey,
By /s/ SPECIMEN
-------------
Secretary
- ----------------
ORD 87241--91--P NY
- ----------------
II-212
Exhibit 3
April 25, 1997
Pruco Life Insurance Company
of New Jersey
213 Washington Street
Newark, New Jersey 07102-2992
Gentlemen:
In my capacity as Chief Legal Officer and Assistant Secretary of Pruco Life
Insurance Company of New Jersey ("Pruco Life of New Jersey"), I have reviewed
the establishment of Pruco Life of New Jersey Variable Insurance Account (the
"Account") on December 29, 1982 by the Executive Committee of the Board of
Directors of Pruco Life of New Jersey as a separate account for assets
applicable to certain variable life insurance contracts, pursuant to the
provisions of Section 17B:28- 7 of the Revised Statutes of New Jersey. I was
responsible for oversight of the preparation and review of the Registration
Statement on Form S-6, as amended, filed by Pruco Life of New Jersey with the
Securities and Exchange Commission (Registration No. 2-81243) under the
Securities Act of 1933 for the registration of certain variable life insurance
contracts issued with respect to the Account.
I am of the following opinion:
(1) Pruco Life of New Jersey was duly organized under the laws of New
Jersey and is a validly existing corporation.
(2) The Account has been duly created and is validly existing as a
separate account pursuant to the aforesaid provisions of New Jersey
law.
(3) The portion of the assets held in the Account equal to the reserve
and other liabilities for variable benefits under the variable life
insurance contracts is not chargeable with liabilities arising out
of any other business Pruco Life of New Jersey may conduct.
(4) The variable life insurance contracts are legal and binding
obligations of Pruco Life of New Jersey in accordance with their
terms.
In arriving at the foregoing opinion, I have made such examination of law and
examined such records and other documents as I judged to be necessary or
appropriate.
I hereby consent to the filing of this opinion as an exhibit to the Registration
Statement.
Very truly yours,
/s/
- -----------------------
Clifford E. Kirsch
II-213
Exhibit 6
April 25, 1997
Pruco Life Insurance Company of New Jersey
213 Washington Street
Newark, New Jersey 07102-2992
To Pruco Life Insurance Company of New Jersey:
This opinion is furnished in connection with the registration by Pruco Life
Insurance Company of New Jersey of variable life insurance contracts
("Contracts") under the Securities Act of 1933. The prospectus included in
Post-Effective Amendment No. 24 to Registration Statement No. 2-81243 on Form
S-6 describes the Contracts. I have reviewed the Contract form and I have
participated in the preparation and review of the Registration Statement and
Exhibits thereto. In my opinion:
(1) The illustrations of death benefits included in the prospectus
section entitled "How a Contract's Death Benefit Will Vary", based
on the assumptions stated in the illustrations, are consistent with
the provisions of the Contract.
(2) The illustrations of cash values included in the prospectus section
entitled "How a Contract's Cash Value Will Vary", based on the
assumptions stated in the illustrations, are consistent with the
provisions of the Contract.
(3) The illustrations of cash values and death benefits included in the
section entitled "Illustrations" and in the Appendix of the
prospectus, based on the assumptions stated in the illustrations,
are consistent with the provisions of the Contract. The rate
structure of the Contract has not been designed so as to make the
relationship between premiums and benefits, as shown in the
illustrations, appear more favorable to a prospective purchaser of a
Contract for male age 25 or male age 40, than to prospective
purchasers of Contracts on males of other ages or on females.
(4) The illustration of the effect of a Contract loan on the death
benefit and cash value included in the prospectus section entitled
"Contract Loans", based on the assumptions stated in the
illustration, is consistent with the provisions of the Contract.
(5) The illustrations (with respect to a lapsed Contract) of cash
values, extended term insurance and reduced paid-up insurance which
are included in the prospectus section entitled "Options on Lapse",
based on the assumptions stated in the illustrations, are consistent
with the Contract.
I hereby consent to the use of this opinion as an exhibit to the Registration
Statement and to the reference to my name under the heading "Experts" in the
prospectus.
Very truly yours,
/s/
- -------------------------
Nancy D. Davis, FSA, MAAA
Vice President and Assistant Actuary
The Prudential Insurance Company of America
II-214
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