JACKSON NATIONAL SEPARATE ACCOUNT I
485BPOS, 1996-04-30
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<PAGE>   1
                                                     1933 Act File No:  33-82080
                                                     1940 Act File No:  811-8664

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549

                                  FORM N-4


REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
     Pre-Effective Amendment No.                                    [ ]
                                    ------
     Post-Effective Amendment No.     3                             [X]
                                    ------

                                     and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
     Amendment No.       5                                          [X]
                       ------



                    Jackson National Separate Account - I
     ------------------------------------------------------------
                         (Exact Name of Registrant)
                   Jackson National Life Insurance Company
     ------------------------------------------------------------
                             (Name of Depositor)
               5901 Executive Drive, Lansing, Michigan   48911
     ------------------------------------------------------------
            (Address of Depositor's Principal Executive Offices)
             Depositor's Telephone Number, including Area Code:
                                (517) 394-3400
     ------------------------------------------------------------

                                             With a copy to:
     Thomas J. Meyer                         Judith A. Hasenauer
     Vice Pres. & General Counsel            Principal
     Jackson National Life                   Blazzard, Grodd &
       Insurance Company                       Hasenauer, P.C.
     5901 Executive Dr.                      P.O. Box 5108
     Lansing, MI  48911                      Westport, CT  06881

                   (Name and Address of Agent for Service)


It is proposed that this filing will become effective
            immediately upon filing pursuant to paragraph (b)
     -----
       X    on May 1, 1996 pursuant to paragraph (b)
     -----
            60 days after filing pursuant to paragraph (a)(1)
     -----
            on (date) pursuant to paragraph (a)(1)
     -----


If appropriate, check the following box:

     -----  This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

Calculation of Registration Fee Under the Securities Act of 1933

The Registrant has registered an indefinite number of securities in accordance
with Rule 24f-2 under the Investment Company Act of 1940.  Registrant's Rule
24f-2 notice for its fiscal year ended December 31, 1995, was filed on or about
February 28, 1996.

<PAGE>   2



                    JACKSON NATIONAL SEPARATE ACCOUNT - I
                   REFERENCE TO ITEMS REQUIRED BY FORM N-4


<TABLE>
<CAPTION>

N-4 Item                                          Caption in Prospectus or
                                                  Statement of Additional
                                                  Information relating to
                                                  each Item
                                                  ------------------------

Part A.   Information Required in a Prospectus    Prospectus
- --------  ------------------------------------    -----------------------------
<S>       <C>                                     <C>

1.        Cover Page                              Cover Page

2.        Definitions                             Definitions

3.        Synopsis                                Fee Tables; Underlying
                                                  Fund Expenses; Highlights

4.        Condensed Financial Information         Condensed Financial
                                                  Information; Advertising

5.        General Description of Registrant,      Description of the
          Depositor and Portfolio Companies       Company and the Separate
                                                  Account; Separate
                                                  Account Investments;
                                                  Appendix B;
                                                  Administration

6.        Deductions                              Contract Charges;
                                                  Purchases, Withdrawals
                                                  and Contract Value

7.        General Description of Variable         Description of the
          Annuity Contracts                       Contracts; Purchases,
                                                  Withdrawals and Contract
                                                  Value; Administration

8.        Annuity Period                          Annuity Period; Annuity
                                                  Payments

9.        Death Benefit                           Death Benefit; Annuity
                                                  Period

10.       Purchases and Contract Value            Purchases, Withdrawals
                                                  and Contract Value 
</TABLE>

<PAGE>   3

<TABLE>
<S>       <C>                                     <C>
11.       Redemptions                             Purchases, Withdrawals
                                                  and Contract Value;
                                                  Highlights

12.       Taxes                                   Taxes

13.       Legal Proceedings                       Legal Proceedings

14.       Table of Contents of the Statement of   Table of Contents of
          Additional Information                  Statement of Additional
                                                  Information


          Information Required in a Statement of  Statement of
Part B.   Additional Information                  Additional Information
- --------  ----------------------------------      -----------------------------

15.       Cover Page                              Cover Page

16.       Table of Contents                       Table of Contents

17.       General Information and History         General Information
                                                  and History

18.       Services                                Services

19.       Purchase of Securities Being Offered    Purchase of Securities
                                                  Being Offered

20.       Underwriters                            Underwriters

21.       Calculation of Performance Data         Calculation of
                                                  Performance

22.       Annuity Payments                        Annuity Payments; Net
                                                  Investment Factor

23.       Financial Statements                    Financial Statements
</TABLE>


Part C.

Information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C of this Amendment to Registration
Statement.


<PAGE>   4

                                           [LOGO]
                                           PERSPECTIVE
                                           FIXED AND VARIABLE ANNUITY





                                               PROSPECTUS 
                                               MAY 1, 1996


              Issued by Jackson National Life Insurance Company
                5901 Executive Drive, Lansing, Michigan 48911
<PAGE>   5
 
- --------------------------------------------------------------------------------
            INDIVIDUAL DEFERRED FIXED AND VARIABLE ANNUITY CONTRACTS
- --------------------------------------------------------------------------------
 
    Issued By Jackson National Life Insurance Company in connection with the
Jackson National Separate Account -- I
 
    Annuity Service Center:
    P.O. Box 30389
    Lansing, MI 48909-7889
    Telephone Number: 1 (800) 766-4683

    The Individual Deferred Fixed and Variable Annuity Contracts ("Contract(s)")
offered by this Prospectus are flexible premium contracts. Reference throughout 
this Prospectus to Contracts shall also mean certificates issued under Group 
Deferred Fixed and Variable Annuity Contracts. The Contracts are available for 
retirement plans which may or may not qualify for Federal tax advantages 
available under the Internal Revenue Code. Annuity payments under the Contracts 
are deferred until a selected later date.
 
    Premiums are allocated to the Jackson National Separate Account -- I
("Separate Account"), a separate account of Jackson National Life Insurance
Company ("Company"), and the General Account, as directed by the Owner. The
Separate Account uses its assets to purchase shares of one or more of the
following Series of mutual fund(s):
 
                              JNL(R) SERIES TRUST
 
                JNL AGGRESSIVE GROWTH SERIES
                JNL CAPITAL GROWTH SERIES
                JNL GLOBAL EQUITIES SERIES
                JNL/ALGER GROWTH SERIES
                JNL/PHOENIX INVESTMENT COUNSEL BALANCED SERIES
                JNL/PHOENIX INVESTMENT COUNSEL GROWTH SERIES
                PPM AMERICA/JNL HIGH YIELD BOND SERIES
                PPM AMERICA/JNL MONEY MARKET SERIES
                PPM AMERICA/JNL VALUE EQUITY SERIES
                SALOMON BROTHERS/JNL GLOBAL BOND SERIES
                SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES
                T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
                T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
                T. ROWE PRICE/JNL MID-CAP GROWTH SERIES
 
    The value of the Separate Account will vary in accordance with the
investment performance of the underlying mutual funds. Therefore, the Owner
bears the investment risk under this Contract for all amounts allocated to the
Separate Account. Amounts allocated to the General Account are guaranteed by the
Company and will earn a specified rate of interest declared periodically.
 
   
    A Statement of Additional Information dated May 1, 1996, containing further
information about the Contracts and the Separate Account has been filed with the
Securities and Exchange Commission, and is available without charge upon request
from the Company at its Annuity Service Center at the address and telephone
number given above. The Statement of Additional Information, dated May 1, 1996,
is incorporated herein by reference. The Table of Contents for the Statement of
Additional Information appears on Page 30 of the Prospectus.
    
 
    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.
 
    Please read this Prospectus carefully and retain it for your future
reference. The Prospectus sets forth the information about the Contracts and
Separate Account that the investor should know before investing. The Contracts
offered by this Prospectus are not available in all states.
 
   
    An interest in the Contract is not a deposit or obligation of, or
guaranteed or endorsed by any bank or financial institution, nor is the Contract
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency. Investment in a Contract is subject to
investment risk, including the possible loss of principal.
    
 
   
    This Prospectus is dated May 1, 1996.
    
 
                                        1
<PAGE>   6
 
- --------------------------------------------------------------------------------
                               TABLE OF CONTENTS
- --------------------------------------------------------------------------------
 
   
<TABLE>
<S>                                                                                                                     <C>
DEFINITIONS..........................................................................................................     3
FEE TABLES...........................................................................................................     5
  Owner Transaction Expenses.........................................................................................     5
  Separate Account Expenses..........................................................................................     5
UNDERLYING FUND EXPENSES.............................................................................................     6
HIGHLIGHTS...........................................................................................................     8
CONDENSED FINANCIAL INFORMATION......................................................................................     9
  Accumulation Unit Values...........................................................................................     9
  Financial Statements...............................................................................................    10
DESCRIPTION OF THE COMPANY AND THE SEPARATE ACCOUNT..................................................................    11
SEPARATE ACCOUNT INVESTMENTS.........................................................................................    12
  Underlying Fund....................................................................................................    12
  Voting Rights......................................................................................................    12
  Substitution of Securities.........................................................................................    12
CONTRACT CHARGES.....................................................................................................    13
  Mortality and Expense Risk Charge..................................................................................    13
  Contract Maintenance Charge........................................................................................    13
  Administration Charge..............................................................................................    13
  Transfer Fee.......................................................................................................    13
  Withdrawal Charge..................................................................................................    14
  Premium Taxes......................................................................................................    14
  Deduction for Separate Account Income Taxes........................................................................    15
  Other Expenses.....................................................................................................    15
  Reduction of Charges for Sales to Certain Groups...................................................................    15
DESCRIPTION OF THE CONTRACTS.........................................................................................    15
  Summary............................................................................................................    15
  Owner..............................................................................................................    15
  Annuitant..........................................................................................................    15
  Modification of the Contract.......................................................................................    15
  Assignment.........................................................................................................    15
DEATH BENEFIT........................................................................................................    16
  Death of Contract Owner Before the Annuity Date....................................................................    16
  Death Benefit Amount Before the Annuity Date.......................................................................    16
  Death Benefit Options Before the Annuity Date......................................................................    16
  Death of Contract Owner After the Annuity Date.....................................................................    17
  Death of Annuitant.................................................................................................    17
  Beneficiary........................................................................................................    17
PURCHASES, WITHDRAWALS AND CONTRACT VALUE............................................................................    17
  Premiums...........................................................................................................    17
  Automatic Payment Plan.............................................................................................    17
  Automatic Dollar Cost Averaging Program............................................................................    17
  Rebalancing........................................................................................................    18
  Allocation of Premiums.............................................................................................    18
  Transfer During Accumulation Period................................................................................    18
  Separate Account Accumulation Unit Value...........................................................................    19
  Distribution of Contracts..........................................................................................    19
  Withdrawals (Redemptions)..........................................................................................    19
  Systematic Withdrawal Program......................................................................................    20
  ERISA Plans........................................................................................................    20
  Minimum Contract Value.............................................................................................    20
ANNUITY PERIOD.......................................................................................................    21
  Annuity Date.......................................................................................................    21
  Annuity Options....................................................................................................    21
ANNUITY PAYMENTS.....................................................................................................    23
  Initial Monthly Annuity Payment....................................................................................    23
  Subsequent Monthly Payments........................................................................................    23
  Annuity Unit Value.................................................................................................    23
ADMINISTRATION.......................................................................................................    23
  Statements and Reports.............................................................................................    23
  Market Timing and Asset Allocation Services........................................................................    24
TAXES................................................................................................................    24
  General............................................................................................................    24
  Withholding Tax on Distributions...................................................................................    24
  Diversification -- Separate Account Investments....................................................................    25
  Multiple Contracts.................................................................................................    26
  Contracts Owned by Other than Natural Persons......................................................................    26
  Tax Treatment of Assignments.......................................................................................    26
  Qualified Plans....................................................................................................    26
  Tax Treatment of Withdrawals.......................................................................................    26
ADVERTISING..........................................................................................................    28
LEGAL PROCEEDINGS....................................................................................................    29
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION.............................................................    30
APPENDIX A...........................................................................................................   A-1
APPENDIX B...........................................................................................................   B-1
APPENDIX C...........................................................................................................   C-1
</TABLE>
    
 
                                        2
<PAGE>   7
 
   
- --------------------------------------------------------------------------------
    
                                  DEFINITIONS
- --------------------------------------------------------------------------------
 
     The following terms, as used in this Prospectus, have the indicated
meanings:
 
     ACCUMULATION PERIOD. The period between the Issue Date and the Annuity
Date; the build-up phase under the Contract.
 
     ACCUMULATION UNIT. A unit of measurement which the Company uses to
calculate the Separate Account Contract Value during the Accumulation Period.
 
   
     ANNUITY SERVICE CENTER. The address and telephone number are: P.O. Box
30389, Lansing, Michigan 48909-7889, (800) 766-4683. The Company will notify
Contract Owners of any change in address or telephone number.
    
 
     ANNUITANT. The natural person on whose life the annuity benefit for this
Contract is based.
 
     ACCOUNT VALUE. An accounting maintained by the Company indicating an
Owner's Contract Value under a Contract.
 
     ANNUITIZATION. The process by which an Annuitant converts from the
Accumulation Period to the Annuity Period. Upon Annuitization, the Contract is
converted from the build-up phase to the phase during which the Annuitant or
other payee(s) receive periodic annuity payments.
 
     ANNUITY DATE. The date on which annuity payments are to begin.
 
     ANNUITY PERIOD. The period beginning on the Annuity Date.
 
     ANNUITY UNIT. A unit of measurement which the Company uses to calculate the
amount of Variable Annuity payments.
 
     BENEFICIARY(IES). The person(s) designated to receive any benefits under a
Contract upon the death of the Owner.
 
     CODE. The Internal Revenue Code of 1986, as amended, or as the same may be
amended or superseded.
 
     CONTRACT VALUE. The Contract Value is the sum of: (1) the Separate Account
Contract Value; and (2) the General Account Contract Value.
 
     CONTRACT YEAR. A year starting from the Issue Date in one calendar year and
ending on the anniversary of the Issue Date in the succeeding calendar year.
 
     DEFERRED ANNUITY. An annuity contract under which the start of annuity
payments is deferred to a future date.
 
     DUE PROOF OF DEATH. A certified copy of a death certificate, a certified
copy of a decree of a court of competent jurisdiction as to the finding of
death, and any other proof or documentation required by the Company.
 
     FIXED ANNUITY. An Annuity providing for a series of payments which are
guaranteed by the Company as to dollar amount during annuitizations.
 
     FUND. A collective term used to represent an investment entity which may be
selected to be an underlying investment of the Contract.
 
     GENERAL ACCOUNT. This General Account is made up of all assets under the
Contract, other than those in the Separate Account.
 
     GENERAL ACCOUNT CONTRACT VALUE. This will be: (1) the sum of all amounts
credited to the General Account under the Contract; less (2) any amounts
cancelled or withdrawn for charges, deductions, surrenders, or transfers.
 
     HOME OFFICE. The Company's headquarters is located at 5901 Executive Drive,
Lansing, Michigan 48911.
 
     ISSUE DATE. The date a Contract is issued.
 
   
     LATEST ANNUITY DATE. The date on which the Owner attains age 90 under a
Non-Qualified Plan Contract or such earlier date as required by the applicable
Qualified Plan, unless otherwise approved by the Company.
    
 
     NON-QUALIFIED PLAN. A retirement plan which does not receive favorable tax
treatment under Section 401, 403, 408 or 457 of the Code.
 
   
     OWNER ("YOU," "YOUR"). The person or entity named in the application who is
entitled to exercise all rights and privileges under this Contract. Usually, but
not always, the Owner is also the Annuitant. If Joint Owners are named, the
Joint Owner must be the spouse of the other Joint Owner. Joint Owners share
ownership in all respects.
    
 
     PORTFOLIO. A subdivision of the Separate Account invested wholly in shares
of one of the corresponding Series of the Underlying Funds.
 
     PREMIUM. Amounts paid to the Company for the Contract by or on behalf of an
Owner.
 
                                        3
<PAGE>   8
 
     QUALIFIED PLAN. A retirement plan which receives favorable tax treatment
under Sections 401, 403, 408 or 457 of the Code.
 
     SEPARATE ACCOUNT. A segregated asset account of the Company, named "Jackson
National Separate Account -- I," consisting of several Portfolios, each
investing in a corresponding Series of the Funds.
 
     SEPARATE ACCOUNT CONTRACT VALUE. The Separate Account Contract Value is the
sum of the value of all Portfolio Accumulation Units under this Contract.
 
     SERIES. A separate investment portfolio of a Fund which has distinct
investment objectives. Each Series serves as an underlying investment medium for
Premiums and allocations made to one of the Portfolios of the Separate Account.
 
     UNDERLYING FUND(S). The underlying entities in which the Portfolios invest.
 
     VALUATION DATE. Each day the New York Stock Exchange ("NYSE") is open for
business.
 
     VALUATION PERIOD. The period commencing at the close of normal trading on
the NYSE (currently 4:00 p.m. Eastern time) on each Valuation Date and ending at
the close of the NYSE on the next succeeding Valuation Date.
 
     VARIABLE ANNUITY. A series of payments made during the Annuity Period to a
payee under a Contract which vary in amount in accordance with the investment
experience of the Portfolios to which Contract Values have been allocated.
 
     WITHDRAWAL CHARGE (CONTINGENT DEFERRED SALES CHARGE). A charge which may be
imposed upon certain withdrawals.
 
     WITHDRAWAL VALUE. The Contract Value minus any premium tax payable and
minus any applicable Contract charges.
 
                                        4
<PAGE>   9
 
   
- --------------------------------------------------------------------------------
    
                                   FEE TABLES
- --------------------------------------------------------------------------------
 
OWNER TRANSACTION EXPENSES
- --------------------------------------------------------------------------------
 
Contingent Deferred Sales Charge (Withdrawal Charge) (as a percentage of
Premiums)
 
<TABLE>
<CAPTION>
          NUMBER OF COMPLETE CONTRACT YEARS
        SINCE PREMIUM BEING WITHDRAWN WAS MADE
- ------------------------------------------------------
<S>                                                      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
Year..................................................    0      1      2      3      4      5      6     7+
Applicable Charge:....................................   7%     6%     5%     4%     3%     2%     1%     0%
Annual Contract Maintenance Charge...........................................................................    $35.00
Transfer Fee (Applies solely to transfers in excess of 15 in a Contract Year)................................    $25.00
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
 
SEPARATE ACCOUNT EXPENSES
- --------------------------------------------------------------------------------
 
(As an annual percentage of average net asset value. The daily equivalent is
deducted from each of the Portfolios of the Separate Account.)
- --------------------------------------------------------------------------------
 
   
<TABLE>
<S>                                                                                             <C>
Mortality and Expense Risk Charges..........................................................    1.25%
Administration Charge.......................................................................     .15%
                                                                                                -----
  Total Separate Account Annual Expenses....................................................    1.40%
</TABLE>
    
 
                                        5
<PAGE>   10
 
- --------------------------------------------------------------------------------
                            UNDERLYING FUND EXPENSES
- --------------------------------------------------------------------------------
 
JNL SERIES TRUST
(As an annual percentage of average net assets based on estimates for fiscal
year.)
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                   OTHER
                                                                                  EXPENSES
                                                                 MANAGEMENT        (AFTER          TOTAL FUND
                                                                    FEE        REIMBURSEMENT)    ANNUAL EXPENSES
- ----------------------------------------------------------------------------------------------------------------
<S>                                                              <C>           <C>               <C>
JNL Aggressive Growth Series..................................       .95%           .15%              1.10%
JNL Capital Growth Series.....................................       .95%           .15%              1.10%
JNL Global Equities Series....................................      1.00%           .15%              1.15%
JNL/Alger Growth Series.......................................      .975%           .15%             1.125%
JNL/Phoenix Investment Counsel Balanced Series................       .90%           .15%              1.05%
JNL/Phoenix Investment Counsel Growth Series..................       .90%           .15%              1.05%
PPM America/JNL High Yield Bond Series........................       .75%           .15%               .90%
PPM America/JNL Money Market Series...........................       .60%           .15%               .75%
PPM America/JNL Value Equity Series...........................       .75%           .15%               .90%
Salomon Brothers/JNL Global Bond Series.......................       .85%           .15%              1.00%
Salomon Brothers/JNL U.S. Government & Quality Bond Series....       .70%           .15%               .85%
T. Rowe Price/JNL Established Growth Series...................       .85%           .15%              1.00%
T. Rowe Price/JNL International Equity Investment Series......      1.10%           .15%              1.25%
T. Rowe Price/JNL Mid-Cap Growth Series.......................       .95%           .15%              1.10%
</TABLE>
 
- --------------------------------------------------------------------------------
 
   
     The expenses shown above are assessed at the Underlying Fund level and are
not direct charges against Separate Account assets or reductions from Contract
Values. These expenses are taken into consideration in computing each Series'
net asset value, which is the share price used to calculate the Portfolio's unit
value. Currently, all expenses (excluding Management Fees) in excess of .15% are
reimbursed. Prior to reimbursement Total Fund Annual Expenses as a percentage of
net assets are expected to be 2.77%; 2.08%; 2.25%; 1.89%; 3.71%; 5.38%; 1.50%;
1.30%; 2.28%; 2.14%; 2.53%; 2.09%; 2.14%; and 2.10%; respectively. Voluntary
reimbursements to these Series may be modified or discontinued at any time.
    
 
EXAMPLE --
 
     If you surrender your contract at the end of the applicable time period:
 
     You would pay the following expenses on a $1,000 investment, assuming 5%
annual return on assets:
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                          1 YEAR    3 YEARS
- -----------------------------------------------------------------------------------------------------------
<S>                                                                                       <C>       <C>
JNL Aggressive Growth Portfolio........................................................    $ 97      $ 134
JNL Capital Growth Portfolio...........................................................      97        134
JNL Global Equities Portfolio..........................................................      98        136
JNL/Alger Growth Portfolio.............................................................      98        135
JNL/Phoenix Investment Counsel Balanced Portfolio......................................      97        133
JNL/Phoenix Investment Counsel Growth Portfolio........................................      97        133
PPM America/JNL High Yield Bond Portfolio..............................................      95        128
PPM America/JNL Money Market Portfolio.................................................      94        123
PPM America/JNL Value Equity Portfolio.................................................      95        128
Salomon Brothers/JNL Global Bond Portfolio.............................................      96        131
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio..........................      95        126
T. Rowe Price/JNL Established Growth Portfolio.........................................      96        131
T. Rowe Price/JNL International Equity Investment Portfolio............................      99        139
T. Rowe Price/JNL Mid-Cap Growth Portfolio.............................................      97        134
</TABLE>
 
- --------------------------------------------------------------------------------
 
                                        6
<PAGE>   11
 
   
     If you do not surrender or if you annuitize your contract at the end of the
applicable time period:
    
 
     You would pay the following expenses on a $1,000 investment, assuming 5%
annual return on assets:
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                          1 YEAR    3 YEARS
- -----------------------------------------------------------------------------------------------------------
<S>                                                                                       <C>       <C>
JNL Aggressive Growth Portfolio........................................................    $ 27       $84
JNL Capital Growth Portfolio...........................................................      27        84
JNL Global Equities Portfolio..........................................................      28        86
JNL/Alger Growth Portfolio.............................................................      28        85
JNL/Phoenix Investment Counsel Balanced Portfolio......................................      27        83
JNL/Phoenix Investment Counsel Growth Portfolio........................................      27        83
PPM America/JNL High Yield Bond Portfolio..............................................      25        78
PPM America/JNL Money Market Portfolio.................................................      24        73
PPM America/JNL Value Equity Portfolio.................................................      25        78
Salomon Brothers/JNL Global Bond Portfolio.............................................      26        81
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio..........................      25        76
T. Rowe Price/JNL Established Growth Portfolio.........................................      26        81
T. Rowe Price/JNL International Equity Investment Portfolio............................      29        89
T. Rowe Price/JNL Mid-Cap Growth Portfolio.............................................      27        84
</TABLE>
 
- --------------------------------------------------------------------------------
 
EXPLANATION OF FEE TABLES AND EXAMPLES
 
1. The purpose of the foregoing table and examples is to assist an investor in
   understanding the various costs and expenses that he or she will bear
   directly or indirectly by investing in the Separate Account. For additional
   information see "Contract Charges," beginning on Page 12 of this Prospectus;
   see also the sections relating to management of the Underlying Funds in their
   respective prospectuses. The examples do not illustrate the tax consequences
   of surrendering a Contract.
 
2. The examples assume that there were no transactions which would result in the
   imposition of the Transfer Fee. The amount of the Transfer Fee is $25, except
   that the first 15 transfers per Contract Year are not subject to the fee.
   Premium taxes, which range from 0% to 4% of Premiums, are not reflected.
 
3. For purposes of the amounts reported in the examples, the Contract
   Maintenance Charge is reflected by applying a percentage equivalent charge,
   obtained by dividing the total amount of such charges anticipated to be
   collected during the year by the total estimated average net assets of the
   Portfolios attributable to the Contracts.
 
4. A Withdrawal Charge is imposed upon annuitizations which occur within one
   year of the Issue Date.
 
5. NEITHER THE FEE TABLES NOR THE EXAMPLES ARE REPRESENTATIONS OF PAST OR FUTURE
   EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
 
                                        7
<PAGE>   12

- --------------------------------------------------------------------------------
   
                                   HIGHLIGHTS
    
- --------------------------------------------------------------------------------
 
   
     This Prospectus contains information about the Contract, which provides
variable and fixed benefits. It describes the uses, costs and objectives of the
Contract, and the rights and privileges of the Owner. It also provides
information about the Company and the Separate Account.
    
 
   
     Premiums for the Contracts may be allocated to one or more Portfolios of
the Separate Account, and/or the General Account under the Contracts. The
Separate Account invests in shares of the corresponding Series of the Underlying
Fund:
    
 
   
                                JNL SERIES TRUST
    
 
   
                    JNL Aggressive Growth Series
                    JNL Capital Growth Series
                    JNL Global Equities Series
                    JNL/Alger Growth Series
                    JNL/Phoenix Investment Counsel Balanced Series
                    JNL/Phoenix Investment Counsel Growth Series
                    PPM America/JNL High Yield Bond Series
                    PPM America/JNL Money Market Series
                    PPM America/JNL Value Equity Series
                    Salomon Brothers/JNL Global Bond Series
                    Salomon Brothers/JNL U.S. Government & Quality Bond Series
                    T. Rowe Price/JNL Established Growth Series
                    T. Rowe Price/JNL International Equity Investment Series
                    T. Rowe Price/JNL Mid-Cap Growth Series
    
 
   
     The Individual Deferred Fixed and Variable Annuity Contracts offered by
this Prospectus are flexible premium contracts. The Contracts can be purchased
on a non-tax qualified basis ("Non-Qualified Plan Contract") or in connection
with certain plans qualifying for favorable federal income tax treatment
("Qualified Plan Contract"). This Prospectus describes only the variable portion
of the Contract.
    
 
   
     A Withdrawal Charge may be imposed upon withdrawals from the Contract.
Withdrawal Charges will vary in amount depending upon the number of completed
years in the Contract from the date of Premium deposit at the time of its
withdrawal. The Withdrawal Charge is found in the Fee Tables. The maximum
Withdrawal Charge is 7%. (See "Withdrawal Charge".)
    
 
   
     For purposes of determining federal income tax liability, withdrawals are
deemed to be interest and earnings, first-out basis, which means taxable income
is withdrawn first. There is a 10% penalty tax on the taxable amount of any
premature distribution from Non-Qualified and certain Qualified Plan Contracts.
The penalty tax generally applies to any distribution made prior to the Owner
attaining age 59 1/2. (See "Taxes".)
    
 
   
     Withdrawals of amounts attributable to contributions made pursuant to a
salary reduction agreement (as defined in Section 403(b)(11) of the Code) are 
limited to circumstances only when the Owner attains age 59 1/2, separates from 
service, dies, becomes disabled (within the meaning of Section 72(m)(7) of the
Code), or in the case of hardship. Hardship withdrawals do not include any 
earnings on salary reduction contributions. Owners should consult their tax 
adviser regarding the consequences of withdrawals or distributions.
    
 
   
     The initial Premium must be at least $5,000 for Non-Qualified Plan
Contracts and $2,000 for Qualified Plan Contracts. Subsequent Premiums must be
at least $500 ($50 if made in connection with an Automatic Payment Plan). The
cumulative total of all Premiums under a Contract may not exceed $1,000,000
without the prior consent of the Company. (See "Purchases, Withdrawals and
Contract Value".) The Company may waive any of these minimums or maximums at any
time.
    
 
   
     To be sure that the Owner is satisfied with the Contract, the Owner has a
ten day free look (or longer if required by state law). Within ten days of the
day the Contract is received, it may be returned to the Company's Annuity
Service Center, at the address shown on page 1 of this Prospectus. When the
Contract is received by the Company, the Company will void the Contract and
refund the Contract Value in full unless otherwise required by state and/or
federal law.
    
                                        8

<PAGE>   13
 
- --------------------------------------------------------------------------------
   
                        CONDENSED FINANCIAL INFORMATION
    
- --------------------------------------------------------------------------------
 
   
ACCUMULATION UNIT VALUES
    
 
   
     The following table presents Accumulation Unit values at the commencement
of operations of the Separate Account and end of the Separate Account's fiscal
year as well as ending Accumulation Units outstanding under each Portfolio of
the Separate Account. This data has been taken from the Separate Account's
financial statements. The Separate Account's financial statements for the period
have been audited by Price Waterhouse LLP, independent accountants. This
information should be read in conjunction with the Separate Account's financial
statements and related notes thereto.
    
 
   
<TABLE>
<CAPTION>
- ------------------------------------------------------------
                                        DECEMBER 31,
             PORTFOLIOS                   1995(A)
- ------------------------------------------------------------
<S>                                     <C>
JNL Aggressive Growth Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.20
 Accumulation units outstanding at
  the end of period                         4,008
JNL Capital Growth Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.34
 Accumulation units outstanding at
  the end of period                         1,587
JNL Global Equities Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.48
 Accumulation units outstanding at
  the end of period                         4,778
JNL/Alger Growth Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $ 9.93
 Accumulation units outstanding at
  the end of period                        12,285
JNL/Phoenix Investment Counsel
  Balanced Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.34
 Accumulation units outstanding at
  the end of period                        12,871
<CAPTION>
- ------------------------------------------------------------
                                        DECEMBER 31,
             PORTFOLIOS                   1995(A)
- ------------------------------------------------------------
<S>                                       <C>
JNL/Phoenix Investment Counsel
  Growth Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.58
 Accumulation units outstanding at
  the end of period                           571
PPM America/JNL High Yield Bond
  Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.11
 Accumulation units outstanding at
  the end of period                           100
PPM America/JNL Money Market
  Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.03
 Accumulation units outstanding at
  the end of period                        14,608
PPM America/JNL Value Equity
  Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.59
 Accumulation units outstanding at
  the end of period                         3,944
Salomon Brothers/JNL Global Bond
  Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.41
 Accumulation units outstanding at
  the end of period                         3,128
</TABLE>
    
 
   
(a) The Separate Account commenced operations on October 16, 1995.
    
 
                                        9
<PAGE>   14
 
   
<TABLE>
<CAPTION>
- ------------------------------------------------------------
                                        DECEMBER 31,
             PORTFOLIOS                   1995(A)
- ------------------------------------------------------------
<S>                                       <C>
Salomon Brothers/JNL U.S. Government
  & Quality Bond Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.21
 Accumulation units outstanding at
  the end of period                         1,275
T. Rowe Price/JNL Established Growth
  Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.36
 Accumulation units outstanding at
  the end of period                        10,564
<CAPTION>
- ------------------------------------------------------------
                                        DECEMBER 31,
             PORTFOLIOS                   1995(A)
- ------------------------------------------------------------
<S>                                       <C>
T. Rowe Price/JNL International
  Equity Investment Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.49
 Accumulation units outstanding at
  the end of period                         3,096
T. Rowe Price/JNL Mid-Cap Growth
  Portfolio
 Accumulation unit value:
  Beginning of period                      $10.00
  End of period                            $10.37
 Accumulation units outstanding at
  the end of period                         5,120
</TABLE>
    
 
   
(a) The Separate Account commenced operations on October 16, 1995.
    
 
   
FINANCIAL STATEMENTS
    
 
   
     The full financial statements of the Separate Account, the financial
statements of the Company and the auditor's report thereon are contained in the
Statement of Additional Information.
    
 
                                       10
<PAGE>   15
 
- --------------------------------------------------------------------------------
              DESCRIPTION OF THE COMPANY AND THE SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
 
COMPANY
 
     The Company is a stock life insurance company organized under the laws of
the state of Michigan in June 1961. Its legal domicile and principal business
address is 5901 Executive Drive, Lansing, Michigan 48911. The Company is a
wholly-owned subsidiary of Prudential Corporation, plc, London, England.
 
   
     The Company is admitted to conduct life insurance and annuity business in
the District of Columbia and all states except New York. It intends to market
the Contract in all jurisdictions in which it is admitted to conduct variable
annuity business. The Contracts offered by this Prospectus are issued by the
Company and will be funded by the Separate Account.
    
 
SEPARATE ACCOUNT
 
     The Separate Account was originally established by the Company on June 14,
1993, pursuant to the provisions of Michigan law, as a segregated asset account
of the Company. The Separate Account meets the definition of a "separate
account" under the Federal securities laws and is registered with the Securities
and Exchange Commission as a unit investment trust under the Investment Company
Act of 1940. This registration does not involve supervision of the management of
the Separate Account or the Company by the Securities and Exchange Commission.
 
     The assets of the Separate Account are the property of the Company.
However, the assets of the Separate Account, equal to its reserves and other
Contract liabilities, are not chargeable with liabilities arising out of any
other business the Company may conduct. Income, gains, and losses, whether or
not realized, from assets allocated to the Separate Account are credited to or
charged against the Separate Account without regard to other income, gains, or
losses of the Company.
 
   
     The Separate Account is divided into Portfolios, with the assets of each
Portfolio pertaining to Account Value invested in the shares of the
corresponding Series of the Underlying Fund. The Company does not guarantee the
investment performance of the Separate Account, its Portfolios or the Series of
the Underlying Fund. Values allocated to the Separate Account and the amount of
Variable Annuity payments will vary with the values of shares of the Underlying
Fund, and are also reduced by Contract charges. The Separate Account may also
fund other contracts issued by the Company, which will be accounted for
separately from the Contracts.
    
 
   
     The basic objective of a variable annuity contract is to provide payments
which will be to some degree responsive to changes in the economic environment,
including inflationary forces and changes in rates of return available from
various types of investments. However, the Owner bears the entire investment
risk that the basic objective of the Contract may not be realized, and that the
adverse effects of inflation may not be lessened. There can be no assurance that
the aggregate amount of variable annuity payments will equal or exceed the
Premiums made with respect to a Contract.
    
 
                                       11
<PAGE>   16
 
- --------------------------------------------------------------------------------
                          SEPARATE ACCOUNT INVESTMENTS
- --------------------------------------------------------------------------------
 
   
UNDERLYING FUND
    
 
     Each of the Portfolios of the Separate Account invests in the shares of one
of the following corresponding Series, which are separate investment series of
an open-end management investment company registered under the Investment
Company Act of 1940 (commonly known as a "mutual fund"):
 
                                JNL SERIES TRUST
 
                     JNL Aggressive Growth Series
                     JNL Capital Growth Series
                     JNL Global Equities Series
                     JNL/Alger Growth Series
                     JNL/Phoenix Investment Counsel Balanced Series
                     JNL/Phoenix Investment Counsel Growth Series
                     PPM America/JNL High Yield Bond Series
                     PPM America/JNL Money Market Series
                     PPM America/JNL Value Equity Series
                     Salomon Brothers/JNL Global Bond Series
                     Salomon Brothers/JNL U.S. Government & Quality Bond Series
                     T. Rowe Price/JNL Established Growth Series
                     T. Rowe Price/JNL International Equity Investment Series
                     T. Rowe Price/JNL Mid-Cap Growth Series
 
     A summary description of the investment objectives of the Series of the
Underlying Fund in which the Portfolios invest is contained in Appendix B to
this Prospectus. However, there is no assurance that the investment objective of
any of the Series will be met. Contract Owners bear the complete investment risk
for Premiums allocated to a Portfolio. Contract Values will fluctuate in
accordance with the investment performance of the Portfolio(s) to which Premiums
are allocated, and in accordance with the imposition of the fees and charges
assessed under the Contracts.
 
     DETAILED INFORMATION ABOUT THE JNL SERIES TRUST IS CONTAINED IN ITS
ACCOMPANYING CURRENT PROSPECTUS. AN INVESTOR SHOULD CAREFULLY REVIEW THE TRUST'S
PROSPECTUS BEFORE ALLOCATING AMOUNTS TO BE INVESTED IN THE PORTFOLIOS OF THE
SEPARATE ACCOUNT.
 
VOTING RIGHTS
 
   
     To the extent required by applicable law, the Company will vote the shares
of the Underlying Fund held in the Separate Account at meetings of the
shareholders of the Underlying Funds in accordance with instructions received
from persons having the voting interest in the corresponding Portfolios. The
Company will vote shares for which it has not received instructions in the same
proportion as it votes shares for which it has received instructions.
    
 
   
     The number of shares which a person has a right to vote will be determined
as of a date to be chosen by the Trust not more than 60 days prior to the
meeting of the respective Underlying Fund's shareholders. Voting instructions
will be solicited by written communication in advance of such meeting. Except as
may be limited by the terms of the retirement plan pursuant to which the
Contract was issued, the person having such voting rights will be the Owner
before the Annuity Date; thereafter the payee entitled to receive payments under
the Contract.
    
 
SUBSTITUTION OF SECURITIES
 
     If the shares of any of the Series should no longer be available for
investment by the Separate Account or if, in the judgment of the Company's Board
of Directors, further investment in the shares of a Series is no longer
appropriate in view of the purposes of the Contract, the Company may substitute
shares of another mutual fund (or Series thereof) for Underlying Fund shares
already purchased and/or to be purchased in the future by Premiums under the
Contract. No such substitution of securities may take place without prior
approval of the Securities and Exchange Commission and under such requirements
as the Commission may impose.
 
                                       12
<PAGE>   17
 
- --------------------------------------------------------------------------------
                                CONTRACT CHARGES
- --------------------------------------------------------------------------------
 
MORTALITY AND EXPENSE RISK CHARGE
 
   
     The Company deducts a Mortality and Expense Risk Charge from each Portfolio
during each Valuation Period. The aggregate Mortality and Expense Risk Charge is
equal, on an annual basis, to 1.25% of the daily net asset value of each
Portfolio. The mortality risks assumed by the Company arise from its contractual
obligations: (1) to make annuity payments after the Annuity Date for the life of
the Annuitant(s); (2) to waive the Withdrawal Charge in the event of the death
of the Owner; and (3) to provide both a standard and an enhanced Death Benefit
prior to the Annuity Date. A detailed explanation of the standard and Enhanced
Death Benefits may be found under "Death Benefit."
    
 
     The expense risk assumed by the Company is that the costs of administering
the Contracts and the Separate Account will exceed the amount received from the
Administration Charge and the Contract Maintenance Charge. The Expense Risk
Charge is guaranteed by the Company and cannot be increased. The Mortality and
Expense Risk Charge is assessed during both the Accumulation Period and the
Annuity Period.
 
CONTRACT MAINTENANCE CHARGE
 
   
     An annual Contract Maintenance Charge of $35 is charged against each
Contract. The amount of this charge is guaranteed and cannot be increased by the
Company. This charge reimburses the Company for expenses incurred in
establishing and maintaining records relating to a Contract. The Contract
Maintenance Charge will be assessed on each anniversary of the Contract Date
that occurs on or prior to the Annuity Date. In the event that a total surrender
of the Contract Value is made, the Charge will be assessed as of the date of
surrender without proration. This charge is not assessed during the Annuity
Period.
    
 
     The total Contract Maintenance Charge is allocated between the Portfolio(s)
and the General Account in proportion to the respective Contract Values
similarly allocated. The Contract Maintenance Charge is at cost with no margin
included for profit. The Company will monitor this charge to ensure that it does
not exceed annual administrative expenses. This charge may be a lesser amount
where required by state law.
 
ADMINISTRATION CHARGE
 
     The Company assesses an Administration Charge equal, on an annual basis, to
0.15% of the daily net asset value of the Separate Account. The Administration
Charge is designed only to reimburse the Company for administrative expenses
related to the Separate Account and the issuance and maintenance of the
Contract, and the Company will monitor this charge to ensure that it does not
exceed annual administration expenses.
 
TRANSFER FEE
 
     A Transfer Fee of $25.00 will apply to transfers in excess of 15 in a
Contract Year. The Company may waive the Transfer Fee in connection with
pre-authorized automatic transfer programs, or in those states where a lesser
fee is required.
 
     This fee will be deducted from Contract Values which remain in the
Portfolio(s) from which the transfer was made. If such remaining Contract Value
is insufficient to pay the Transfer Fee, then the fee will be deducted from
transferred Contract Values.
 
                                       13
<PAGE>   18
 
WITHDRAWAL CHARGE
 
   
     Federal tax law places a number of constraints on withdrawals from annuity
contracts. Subject to those limitations, the Contract Value may be withdrawn at
any time during the Accumulation Period. Owners should consult their own tax
counsel or other tax advisers regarding any withdrawals. (See "Withdrawals").
    
 
     A contingent deferred sales charge, which is referred to as the Withdrawal
Charge, may be imposed upon certain withdrawals. Withdrawal Charges will vary in
amount depending upon the number of completed years in the Contract from the
date of Premium deposit at the time of withdrawal in accordance with the
Withdrawal Charge table shown below.
 
WITHDRAWAL CHARGE TABLE
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                         NUMBER OF COMPLETE CONTRACT YEARS                            APPLICABLE WITHDRAWAL
                      SINCE PREMIUM BEING WITHDRAWN WAS MADE                            CHARGE PERCENTAGE
<S>                                                                                   <C>
- -----------------------------------------------------------------------------------------------------------
Zero...............................................................................        7%
First..............................................................................        6%
Second.............................................................................        5%
Third..............................................................................        4%
Fourth.............................................................................        3%
Fifth..............................................................................        2%
Sixth..............................................................................        1%
Seventh and later..................................................................        0%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
 
     The Withdrawal Charge is deducted from the remaining Contract Value so that
the actual reduction in Contract Value as a result of the withdrawal will be
greater than the withdrawal amount requested and paid. For purposes of
determining the Withdrawal Charge, withdrawals will be allocated first to
earnings, if any (which may generally be withdrawn free of Withdrawal Charge),
and then to Premium on a first-in, first-out basis so that all withdrawals are
allocated to Premium to which the lowest (if any) Withdrawal Charge applies.
 
     Premiums that are no longer subject to the Withdrawal Charge (and not
previously withdrawn), plus earnings in the Owner's Account may be withdrawn
free of Withdrawal Charges at any time ("Initial Free Withdrawal").
 
     Further, there may be an additional free withdrawal amount for the first
withdrawal during a Contract Year ("Additional Free Withdrawal"). The Additional
Free Withdrawal amount is equal to 10% of Premium that remains subject to the
Withdrawal Charge, less earnings in the Owner's account. An Owner will not
receive the benefit of an Additional Free Withdrawal in a full surrender. For an
example of the Additional Free Withdrawal calculation see Appendix C.
 
     If the withdrawal request does not specify from which Portfolio(s) the
withdrawal is to be made, the request will be processed by reducing the Contract
Values in each Portfolio in proportion to their allocations.
 
     The Company will waive the Withdrawal Charge on any withdrawal necessary to
satisfy the minimum distribution
requirements of the Code. In addition, where legally permitted, the Withdrawal
Charge may be eliminated when a Contract is issued to an agent, officer,
director or employee of the Company or its affiliates.
 
     The amounts obtained from the Withdrawal Charge will be used to pay sales
commissions and other promotional or distribution expenses associated with the
marketing of the Contracts. To the extent that the Withdrawal Charge is
insufficient to cover all sales commissions and other promotional or
distribution expenses, the Company may use any of its corporate assets,
including potential profit which may arise from the Mortality and Expense Risk
Charge, to make up any difference.
 
PREMIUM TAXES
 
     The Company will charge against the Contract Value the amount of any
premium taxes levied by a state or any other governmental entity upon Premiums
received by the Company. To the best of the Company's present knowledge, premium
taxes currently imposed by certain jurisdictions range from 0% to 4.0%. This
range is subject to change. The method used to recoup premium tax expense will
be determined by the Company at its sole discretion and in compliance with
applicable state law. The Company may deduct such charges from an Owner's
Contract Value either: (1) at the time the Contract is surrendered, (2) at
Annuitization, or (3) in those states which require, at the time Premiums are
made to the Contract.
 
                                       14
<PAGE>   19
 
DEDUCTION FOR SEPARATE ACCOUNT INCOME TAXES
 
     While the Company is not currently maintaining a provision for taxes, the
Company has reserved the right to establish such a provision for taxes in the
future if it determines, in its sole discretion, that it will incur a tax as a
result of the operation of the Separate Account. The Company will deduct for any
taxes incurred by it as a result of the operation of the Separate Account
whether or not there was a provision for taxes and whether or not it was
sufficient.
 
OTHER EXPENSES
 
   
     The charges and expenses applicable to the various Series of the Underlying
Funds are borne indirectly by Owners having Contract Values allocated to the
Portfolios that invest in the respective Series. For a summary of current
estimates of those charges and expenses, see "Fee Tables."
    
 
REDUCTION OF CHARGES FOR SALES TO CERTAIN GROUPS
 
   
     The Company may reduce the Withdrawal and/or Administration charges on
Contracts sold to certain groups or individuals, or to a trustee, employer or 
other entity representing a group, where it is expected that such sales will 
result in savings of sales or administrative expenses. The entitlement to such
reductions will be determined by the Company by considering the following 
factors: (1) the size of the group; (2) the total amount of Premiums expected 
to be received; (3) the nature of the group for which the Contracts are 
purchased, and the persistency expected in that group; (4) the purpose for 
which the Contracts are purchased and whether that purpose makes it likely that
expenses will be reduced; and (5) any other circumstances which the Company 
believes to be relevant in determining whether reduced sales or administrative
expenses may be expected. None of the reductions in charges for such sales is 
contractually guaranteed. Such reductions may be withdrawn or modified by the 
Company on a uniform basis. The Company's reductions in charges for such sales
will not be unfairly discriminatory to the interests of any Owners.
    
 
- --------------------------------------------------------------------------------
                          DESCRIPTION OF THE CONTRACTS
- --------------------------------------------------------------------------------
 
SUMMARY
 
   
     The Contracts provide for the accumulation of Contract Values during the
Accumulation Period. Upon Annuitization, benefits are payable under the
Contracts in the form of an annuity, either for the life of the Annuitant or for
a fixed number of years, as permitted by state law. (See "Annuity Period --
Annuity Options.")
    
 
OWNER
 
     The Owner is the person who is entitled to exercise all rights and
privileges of ownership under the Contract.
 
   
     If Joint Owners are named, the Joint Owner must be the spouse of the other
Joint Owner. The Joint Owner will possess an undivided interest in the Contract.
The Contract Owner retains sole rights in the Contract upon the other's death
prior to the Annuity Date. Unless otherwise provided, when Joint Owners are
named, the exercise of any ownership right in the Contract shall require a
written indication of an intent to exercise that right, which must be signed by
both Owners. Upon the death of a Joint Contract Owner, the surviving Joint
Owner, if any, will be treated as the primary Beneficiary. Any other Beneficiary
designation on record at the time of death will be treated as a contingent
Beneficiary.
    
 
ANNUITANT
 
     The Annuitant is the person on whose life annuity payments under a Contract
depend. (In the case of a Contract issued in connection with a plan qualified
under Section 403(b) or 408 of the Code, the Owner is the Annuitant.)
 
MODIFICATION OF THE CONTRACT
 
     Only the Company's President, a Vice President, Secretary or Assistant
Secretary may approve a change or waive any provisions of the Contract. Any
change or waiver must be in writing. No agent has the authority to change or
waive the provisions of the Contract.
 
     The Company reserves the right to change the terms of the Contract as may
be necessary to comply with changes in applicable law, or otherwise deemed
necessary by the Company.
 
ASSIGNMENT
 
     Where permitted, the Owner may assign the Contract at any time during the
lifetime of the Annuitant. Such assignment will take effect upon receipt by the
Company of written notice thereof executed by the Owner. The Company assumes no
responsibility for the validity or sufficiency of any assignment. The Company
shall not be liable as to any payment or other settlement made by the
 
                                       15
<PAGE>   20
 
Company before receipt of the assignment. Qualified Plan Contracts may not be 
assigned,  pledged or otherwise transferred except under such conditions as may 
be allowed by applicable law.
 
     If this Contract is a Non-Qualified Plan Contract, any portion which is
pledged or assigned shall be treated as a distribution and shall be included in
gross income to the extent that the cash value exceeds the investment in the
Contract, for the taxable year in which the assignment or pledge occurs. In
addition, any portion assigned may, under certain conditions, be subject to a
tax penalty equal to 10% of the amount which is included in gross income.
 
   
- --------------------------------------------------------------------------------
    
   
                                 DEATH BENEFIT
    
- --------------------------------------------------------------------------------
 
   
DEATH OF CONTRACT OWNER BEFORE THE ANNUITY DATE
    
 
   
     Upon the death of the Owner, or any Joint Contract Owner, before the
Annuity Date, the death benefit will be paid to the Beneficiary(ies) designated
by the Owner. Upon the death of a Joint Contract Owner, the surviving Joint
Contract Owner, if any, will be treated as the primary Beneficiary. Any other
Beneficiary designation on record at the time of death will be treated as a
contingent Beneficiary.
    
 
   
DEATH BENEFIT AMOUNT BEFORE THE ANNUITY DATE
    
 
   
     The standard death benefit is equal to the greater of:
    
 
   
          1. the Contract Value at the end of the Valuation Period during which
     due proof of death and an election of the type of payment to the
     Beneficiary is received by the Company, at the Home Office, or
    
 
   
          2. the total Premiums paid prior to the death of the Owner, minus the
     sum of:
    
 
   
               a) the total withdrawals and any Withdrawal Charges assessed; and
    
 
   
               b) premium taxes incurred.
    
 
   
     In addition, where permitted by state law, the Company will provide an
enhanced death benefit. The enhanced death benefit is determined by (A)
re-computing the standard death benefit by accumulating all amounts under (2)
above annually at 5% (4% if the Owner was age 70 or older on the Issue Date) to
the date of death, and (B) paying the greater of the amount so determined and
the following amount, which is deemed to be $0 if the Owner dies prior to the
seventh Contract Year:
    
 
   
          the Contract Value at the seventh Contract Year, plus any Premiums
     paid since that time and prior to death, minus the sum of:
    
 
   
               a) total withdrawals and any Withdrawal Charges assessed since
          such seventh Contract Year; and
    
 
   
               b) premium taxes incurred since the seventh Contract Year,
    
 
   
          all accumulated annually at 5% (4% if the Owner was age 70 or older on
     the Issue Date) to the date of death.
    
 
   
     The enhanced death benefit shall never exceed 250% of all Premiums paid to
the Contract, reduced by the amount of any withdrawals.
    
 
   
          NOTE: The portion of the Mortality and Expense Risk Charge
     attributable to the enhanced death benefit will be assessed against
     Separate Account allocations pursuant to all Contracts issued, whether or
     not applicable state laws permit the Contract to offer the enhanced death
     benefit.
    
 
   
DEATH BENEFIT OPTIONS BEFORE THE ANNUITY DATE
    
 
   
     In the event of the death of the Owner, or any Joint Contract Owner, before
the Annuity Date, a Beneficiary must request that the death benefit be paid
under one of the Death Benefit Options below. In addition, if the Beneficiary is
the spouse of the Contract Owner, he or she may elect to continue the Contract
at the then Contract Value in his or her own name and exercise all the Contract
Owner's rights under the Contract. The following are the Death Benefit Options:
    
 
   
          Option 1 -- lump sum payment of the death benefit; or
    
 
   
          Option 2 -- the payment of the entire death benefit within 5 years of
     the date of the death of the Contract Owner or any Joint Contract Owner; or
    
 
   
          Option 3 -- payment of the death benefit under an Annuity Option over
     the lifetime of the Beneficiary or over a period not extending beyond the
     life expectancy of the Beneficiary with distribution beginning within one
     year of the date of Your death or any Joint Contract Owner.
    
 
                                       16
<PAGE>   21
 
   
     Any portion of the death benefit not applied under Option 3 within one year
of the date of a Contract Owner's death, must be distributed within five years
of the date of death.
    
 
   
     If a lump sum payment is requested, the amount will be paid within seven
(7) days of receipt of proof of death and the election, unless the Suspension or
Deferral of Payments Provision is in effect.
    
 
   
     Payment to the Beneficiary, other than in a single sum, may only be elected
during the sixty-day period beginning with the date of receipt of proof of
death.
    
 
   
DEATH OF CONTRACT OWNER AFTER THE ANNUITY DATE
    
 
   
     If the Owner, or any Joint Contract Owner, dies after the Annuity Date, and
the Owner is not an Annuitant, any remaining payments under the Annuity Option
elected will continue at least as rapidly as under the method of distribution in
effect at such Contract Owner's death. Upon Your death after the Annuity Date,
the Beneficiary becomes the Contract Owner.
    
 
   
DEATH OF ANNUITANT
    
 
   
     Upon the death of an Annuitant, who is not a Contract Owner, before the
Annuity Date, the Owner may designate a new Annuitant, subject to the Company's
underwriting rules then in effect. If no designation is made within 30 days of
the death the Annuitant, You will become the Annuitant. If the Contract Owner is
a non-natural person, the death of the Annuitant will be treated as the death of
the Contract Owner and a new Annuitant may not be designated.
    
 
   
     Upon the death of the Annuitant after the Annuity Date, the death benefit,
if any, will be as specified in the Annuity Option elected. Death benefits will
be paid at least as rapidly as under the method of distribution in effect at the
Annuitant's death.
    
 
BENEFICIARY
 
     The Owner may designate the Beneficiary(ies) to receive any amount payable
on Owner's death. The original Beneficiary(ies) will be named in the
application. If two or more persons are named, those surviving the Owner will
share equally unless otherwise stated. The Owner may change the Beneficiary(ies)
by filing a written request with the Company at its Annuity Service Center,
unless an irrevocable Beneficiary(ies) designation was previously filed. Any
change will take effect when recorded by the Company. The Company is not liable
for any payment made or action taken before it records the change.
 
- --------------------------------------------------------------------------------
                   PURCHASES, WITHDRAWALS AND CONTRACT VALUE
- --------------------------------------------------------------------------------
 
PREMIUMS
 
   
     Premiums are flexible. This means that the Owner, subject to Company
declared minimums and maximums, may change the amounts, frequency or timing of
Premiums. The initial Premium must be at least $5,000 for Non-Qualified Plan
Contracts and $2,000 for Qualified Plan Contracts. Subsequent Premiums must be
at least $500 ($50 if made in connection with an Automatic Payment Plan). Total
Premiums under a Contract may not exceed $1,000,000 without the prior consent of
the Company. The Company will not issue a Contract to an individual under a
Non-Qualified Plan who is age 80 or older or under a Qualified Plan who is age
70 1/2 or older, without prior Company approval. The Company may waive any of
the maximums or minimums contained in this Section.
    
 
     The Company reserves the right to refuse any Premium at any time.
 
AUTOMATIC PAYMENT PLAN
 
     Automatic bank drafts through the Company's Automatic Payment Plan for
scheduled subsequent Premiums may be made at a minimum of $50 or more per month.
An enrollment form for this program is available through the Company's Annuity
Service Center.
 
AUTOMATIC DOLLAR COST AVERAGING PROGRAM
 
     Units of the Portfolios may be purchased over a period of time through the
Automatic Dollar Cost Averaging ("DCA") Program. Under this Program, the Owner
may authorize the automatic transfer of a fixed dollar amount ($100 minimum) of
his or her choice at regular intervals from a source account to one or more of
the Portfolios (other than the source account) at the unit values determined on
the dates of the transfers. Currently, all Portfolios are available as source
accounts. The
 
                                       17
<PAGE>   22
 
intervals between transfers may be monthly, quarterly, semi-annually or
annually, at the option of the Owner. This service is intended to allow the
Owner to utilize DCA, a long-term investment program which provides for regular,
level investments over time. The Company makes no guarantees that DCA will
result in a profit or protect against loss in a declining market. To qualify for
the DCA Program, there must be a minimum total Contract Value of $15,000, unless
such minimum is waived by the Company.
 
     Another option under the DCA Program is the periodic transfer of a selected
percentage of the value of the source account to one of the Portfolios (other
than the source account). A third option is to transfer the entire Contract
Value in the source account in a stated number of transfers as selected by the
Owner. Although the various options under the DCA Program will allow transfers
to be made from any of the Portfolios, the Owner must elect to have the
transfers made exclusively from one of these source accounts.
 
     A written election of this service, on a form provided by the Company, must
be completed by the Contract Owner in order to begin transfers. Once elected,
transfers from the source account will be processed periodically until either
the value of the source account is completely depleted or the Contract Owner
instructs the Company in writing to cancel the transfers. The Company also
reserves the right to assess a processing fee for this service.
 
REBALANCING
 
     A Contract Owner may elect, on a form provided by the Company, to have
his/her Separate Account Value reallocated among Portfolios in designated
percentages on a periodic basis (monthly, quarterly, semi-annual or annual
basis, or at such other time interval as approved by the Company). The Company
reserves the right to assess a processing fee for this service.
 
ALLOCATION OF PREMIUMS
 
     Premiums are allocated to the Portfolio(s) selected by the Owner. Owners
making initial Premiums should specify their allocations on the application for
a Contract. If the application is in good order, the Company will apply the
initial Premium to the Portfolio(s), as selected, and credit the Contract with
Accumulation Units within two business days of receipt at the Annuity Service
Center. The number of Accumulation Units in a Portfolio attributable to a
Premium is determined by dividing that portion of the Premium which is allocated
to the Portfolio by that Portfolio's Accumulation Unit value as of the end of
the Valuation Period when the allocation occurs.
 
     IF THE APPLICATION DOES NOT SPECIFY AN ALLOCATION, THE APPLICATION IS NOT
IN GOOD ORDER. If the application for a Contract is not in good order, the
Company will attempt to rectify it within five business days of its receipt at
the Annuity Service Center. The Company will credit the initial Premium within
two business days after the application has been rectified. Unless the
prospective Owner consents otherwise, the application and the initial Premium
will be returned if the application cannot be put in good order within five
business days of such receipt.
 
     Just like initial Premiums, Owners making subsequent Premium payments
should specify how they want their Premiums allocated. Otherwise the Company
will automatically process the Premium based on the most recent allocation on
record with the Company.
 
TRANSFER DURING ACCUMULATION PERIOD
 
     During the Accumulation Period, the Owner may transfer Contract Values
among Portfolios, by written request or if the Owner makes such an election on
the Contract application, by telephone authorization. The Company has in place
procedures which are designed to provide reasonable assurance that telephone
authorizations are genuine, including tape recording of telephone communications
and requesting identifying information. Accordingly, the Company and its
affiliates disclaim all liability for any claim, loss or expense resulting from
any alleged error or mistake in connection with a telephone transfer which was
not properly authorized by the Owner. However, if the Company fails to employ
reasonable procedures to ensure that all telephone transfers are properly
authorized, the Company may be held liable for such losses. The Company reserves
the right to modify or discontinue at any time and without notice the use of
telephone transfers and accepting transfer instructions from someone other than
the Owner.
 
     Telephone calls authorizing transfers must be completed by the close of
regular trading on the NYSE (normally 4:00 p.m. Eastern time) on a Valuation
Date in order to be effected at the price determined on such date. Transfer
authorizations, whether written or by telephone, which are received after such
close of regular trading will be processed as of the next Valuation Date.
 
   
     A Transfer Fee may be assessed (See "Transfer Fee".) This transfer
privilege may be suspended, modified or terminated at any time without notice.
    
 
     The minimum partial transfer amount is $100. Also, no partial transfer may
be made if the value of the Owner's interest in the Portfolio from which a
transfer is being
 
                                       18
<PAGE>   23
 
made would be less than $100 after the transfer. The Company may waive the 
minimum partial transfer amount in connection with pre-authorized automatic 
transfer programs.
 
SEPARATE ACCOUNT ACCUMULATION UNIT VALUE
 
     Accumulation Unit value is determined Monday through Friday on each day
that the NYSE is open for business.
 
     A separate Accumulation Unit value is determined for each Portfolio. If the
Company elects or is required to assess a charge for taxes, a separate
Accumulation Unit value may be calculated for Contracts issued in connection
with Non-Qualified and Qualified Plans, respectively, within each Portfolio.
 
   
     The Accumulation Unit value for each Portfolio will vary with the price of
a share in the corresponding Series and in accordance with the Mortality and
Expense Risk Charge, Administration Charge, and any provision for taxes.
Assessments of Withdrawal Charges, Transfer Fees and Contract Maintenance
Charges are effected by redemption of Accumulation Units and do not affect
Accumulation Unit value.
    
 
   
     The Accumulation Unit Value of a Portfolio for any Valuation Period is
calculated by subtracting (2) from (1) and dividing the result by (3) where:
    
 
   
          1) is the total value at the end of the given Valuation Period of the
     assets attributable to the Accumulation Units of the Portfolio minus the
     total liabilities;
    
 
   
          2) is the cumulative unpaid charge for assumptions of Mortality and
     Expense Risk Charge, and for Administration Charge; and
    
 
   
          3) is the number of Accumulation Units outstanding at the end of the
     given Valuation Period.
    
 
   
DISTRIBUTION OF CONTRACTS
    
 
   
     Contracts are sold by registered representatives of broker-dealers who are
licensed insurance agents of the Company, either individually or through an
incorporated insurance agency. Commissions may vary, but are not anticipated to
exceed 8.00% of any Premium (including any promotional and sales incentives).
Under certain circumstances, certain sellers of the Contracts may be paid
persistency incentives which will take into account, among other things, the
length of time Premiums have been held under a Contract, and Contract Values. A
persistency incentive is not anticipated to exceed 1.50%, on an annual basis, of
the Contract Values considered in connection with the incentive. All such
commissions and incentives are paid by the Company.
    
 
     Jackson National Financial Services, Inc., located at 5901 Executive Drive,
Lansing, Michigan 48911, serves as distributor of the Contract. Jackson National
Financial Services, Inc. is a wholly owned subsidiary of the Company and is
registered as a broker-dealer under the Securities Exchange Act of 1934, as
amended, and is a member of the National Association of Securities Dealers, Inc.
 
WITHDRAWALS (REDEMPTIONS)
 
     Except as explained below, an Owner may redeem a Contract for all or a
portion of its Contract Value during the Accumulation Period. Withdrawal Charges
may be applicable, however, which would reduce the Contract Value upon
redemption.
 
   
     Withdrawals and distributions from Contracts issued in connection with
certain Qualified Plans may be subject to a mandatory 20% withholding
requirement, in addition, certain tax withdrawal penalties may apply (see
"Taxes").
    
 
   
     Withdrawals of amounts attributable to contributions made pursuant to a
salary reduction agreement (in accordance with Section 403(b)(11) of the Code)
are limited to the following: when the Owner attains age 59 1/2, separates from
service, dies, becomes disabled (within the meaning of Section 72(m)(7) of the
Code), or in the case of hardship. Hardship withdrawals do not include any
earnings on salary reduction contributions. These limitations on withdrawals
apply to: (1) salary reduction contributions made after December 31, 1988; (2)
income attributable to such contributions; and (3) income attributable to
amounts held as of December 31, 1988. The limitations on withdrawals do not
affect rollovers or exchanges between certain Qualified Plans. Tax penalties may
also apply. While the foregoing limitations only apply to certain Contracts
issued in connection with Section 403(b) Qualified Plans, all Owners should seek
competent tax advice regarding any withdrawals or distributions.
    
 
   
     Except in connection with a Systematic Withdrawal Program, described below,
the minimum partial withdrawal amount is $500, or, if less, the Owner's entire
interest in the Portfolio from which a withdrawal is requested. The Owner's
interest in the Portfolio from which the withdrawal is requested must be at
least $100 after the withdrawal is completed.
    
 
     A written withdrawal request or Systematic Withdrawal Program enrollment
form, as the case may be, must be sent to the Company at its Annuity Service
Center. The required program form will not be in good
 
                                       19
<PAGE>   24
 
order unless it includes the Owner's Tax I.D. Number (e.g., Social Security 
Number) and provides instructions regarding withholding of income taxes. The 
Company provides the required forms.
 
     The Company may also accept telephone requests for certain partial
withdrawals from Owners who elect this option either through the Contract
application or by completing a Telephone Redemption Authorization Form provided
by the Company. The Company reserves the right to impose maximum withdrawal
amounts and procedural requirements regarding this privilege. The proceeds of a
telephone withdrawal will be sent by check to the Owner at the address of record
only. Telephone calls authorizing withdrawals must be completed by the close of
regular trading on the NYSE (normally 4:00 p.m. Eastern time) on a Valuation
Date in order to be effected at the price determined on such date. The Company
reserves the right to terminate or modify the telephone withdrawal service at
any time.
 
     If the request is for total withdrawal, the Contract, or a Lost Contract
Affidavit, must be submitted as well. The Withdrawal Value is determined on the
basis of the Contract Values next computed following receipt of a request in
proper order. The Withdrawal Value will normally be paid within seven days after
the day a proper request is received by the Company at its Annuity Service
Center. However, the Company may suspend the right of withdrawal from the
Separate Account or delay payment for such withdrawal more than seven days: (1)
during any period when the NYSE is closed (other than customary weekend and
holiday closings); (2) when trading on the NYSE is restricted or an emergency
exists as determined by the Securities and Exchange Commission so that disposal
of the Separate Account's investments or determination of Accumulation Unit
value is not reasonably practicable; or (3) for such other periods as the
Securities and Exchange Commission, by order, may permit for protection of
Owners.
 
SYSTEMATIC WITHDRAWAL PROGRAM
 
   
     A Contract Owner may elect in writing on a form provided by the Company to
take Systematic Withdrawals by surrendering a specified dollar amount (of at
least $50) on a monthly, quarterly, semiannual, or annual basis. Unless
otherwise directed by the Contract Owner, the Company will process the
withdrawals by surrendering on a pro-rata basis Accumulation Units from all
Portfolios in which the Contract Owner has an interest. A Withdrawal Charge may
apply to Systematic Withdrawals in accordance with the considerations under
"Withdrawal Charge." Each Systematic Withdrawal is subject to federal income
taxes on the taxable portion. In addition, a 10% federal penalty tax may be
assessed on Systematic Withdrawals if the Contract Owner is under age 59 1/2. If
directed by the Contract Owner, the Company will withhold federal taxes from
each Systematic Withdrawal. The Contract Owner may discontinue Systematic
Withdrawals at any time by notifying the Company in writing.
    
 
     The Company reserves the right to discontinue offering Systematic
Withdrawals upon 30 days' written notice to Contract Owners; however, any such
discontinuation would not affect Systematic Withdrawal programs already
commenced. The Company also reserves the right to assess a processing fee for
this service.
 
ERISA PLANS
 
     Spousal consent may be required when a married Owner seeks a distribution
from a Contract that has been issued in connection with a Qualified Plan (or a
Non-Qualified Plan that is subject to Title 1 of ERISA). Owners should obtain
competent legal and/or tax advice.
 
MINIMUM CONTRACT VALUE
 
     If the Contract Value is less than $500 and no Premiums have been made
during the previous three full calendar years, the Company reserves the right,
after 60 days' written notice to the Owner, to terminate the Contract and
distribute its Withdrawal Value to the Owner. This privilege will be exercised
only if the Contract Value has been reduced to less than $500 as a result of
withdrawals, and state law permits. In no instance shall such termination occur
if the value has fallen below $500 due to either decline in Accumulation Unit
value or the imposition of fees and charges.
 
                                       20
<PAGE>   25
 
- --------------------------------------------------------------------------------
                                 ANNUITY PERIOD
- --------------------------------------------------------------------------------
 
ANNUITY DATE
 
     The Owner selects an Annuity Date (the date on which annuity payments are
to begin) at the time of application. In selecting an Annuity Date, the Owner
may wish to consider the applicability of a Withdrawal Charge, which is imposed
upon Annuitizations which occur within one year of the Issue Date. Annuity
payments will begin no later than the Latest Annuity Date. If no Annuity Date is
selected, the Annuity Date will be the Latest Annuity Date. The Owner may change
the Annuity Date, at any time at least seven days prior to the Annuity Date then
indicated on the Company's records, by written notice to the Company at its
Annuity Service Center.
 
ANNUITY OPTIONS
 
     The Owner, or any Beneficiary who is so entitled, may elect to receive a
lump sum at the end of the Accumulation Period. However, a lump sum distribution
may be deemed to be a withdrawal, and at least a portion of it may be subject to
applicable Contract charges and income tax. Alternatively, an Annuity Option may
be elected. The Owner may, upon prior written notice to the Company, elect an
Annuity Option at any time prior to the Annuity Date.
 
     A change of Annuity Option is permitted if made at least 7 days before the
Annuity Date. If no other Annuity Option is elected, monthly annuity payments
will be made in accordance with Option 3 below, a Life annuity with a 120-month
period certain. Annuity payments will be made in monthly, quarterly, semi-annual
or annual installments as selected by the Owner. However, if the amount
available to apply under an Annuity Option is less than $5,000, and state law
permits, the Company has the right to pay the annuity in one lump sum. In
addition, if the first payment provided would be less than $50, and state law
permits, the Company shall have the right to require the frequency of payments
be at quarterly, semi-annual or annual intervals so as to result in an initial
payment of at least $50.
 
     NO WITHDRAWALS OF CONTRACT VALUE ARE PERMITTED DURING THE ANNUITY PERIOD
FOR ANY ANNUITY OPTION UNDER WHICH PAYMENTS ARE BEING MADE PURSUANT TO LIFE
CONTINGENCIES.
 
     The following Annuity Options are generally available under the Contract.
However, there may be restrictions in the retirement plan pursuant to which a
Contract has been purchased.
 
  OPTION 1 -- LIFE INCOME
 
     An annuity payable monthly during the lifetime of the Annuitant. Under this
Option, no further payments are payable after the death of the Annuitant and
there is no provision for a death benefit payable to the Beneficiary. Therefore,
it is possible under Option 1 for the payee to receive only one monthly annuity
payment under this Contract.
 
  OPTION 2 -- JOINT AND SURVIVOR ANNUITY
 
     An annuity payable monthly while both the Annuitant and a designated second
person are living. Upon the death of either person, the monthly income payable
will continue during the lifetime of the survivor at either the full amount
previously payable or as a percentage (either one-half or two-thirds) of the
full amount, as chosen at the time of election of this Option.
 
                                       21
<PAGE>   26
 
     Annuity payments terminate automatically and immediately upon the death of
the surviving person without regard to the number or total amount of payments
received.
 
     There is no minimum number of guaranteed payments and it is possible to
have only one annuity payment if both the Annuitant and the designated second
person die before the due date of the second payment.
 
  OPTION 3 -- LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED
 
     An annuity payable monthly during the lifetime of the Annuitant, with the
guarantee that if, at the death of the Annuitant, payments have been made for
fewer than the guaranteed 120 or 240 monthly periods, as elected by the Owner,
the balance of the guaranteed number of payments will be made to the
Beneficiary.
 
  OPTION 4 -- INCOME FOR A SPECIFIED PERIOD
 
   
     Under this Option, as permitted by state law, a payee can elect an annuity
payable monthly for any period of years from 5 to 30. This election must be made
for full 12 month periods. In the event the payee dies before the specified
number of payments has been made, the Beneficiary may elect to continue
receiving the scheduled payments or may alternatively elect to receive the
discounted present value of any remaining guaranteed payments in a lump sum.
    
 
  OTHER OPTIONS
 
   
     At the sole discretion of the Company, other annuity options may be made
available. However, to the extent that Withdrawal Charges would otherwise apply
to a withdrawal or termination, the identical Withdrawal Charge may apply with
respect to any additional options.
    
 
                                       22
<PAGE>   27
 
- --------------------------------------------------------------------------------
                                ANNUITY PAYMENTS
- --------------------------------------------------------------------------------
 
INITIAL MONTHLY ANNUITY PAYMENT
 
     The initial annuity payment attributable to investment in a Portfolio is
determined by taking the Contract Value allocated to that Portfolio, less any
premium tax and any applicable Contract changes, and then applying it to the
annuity table specified in the Contract. Those tables are based on a set amount
per $1,000 of proceeds applied. The appropriate rate must be determined by the
sex (except where, as in the case of certain Qualified Plans and other
employer-sponsored retirement plans, such classification is not permitted) and
age of the Annuitant and designated second person, if any.
 
     The dollars applied are then divided by 1,000 and the result multiplied by
the appropriate annuity factor appearing in the table to compute the amount of
the first monthly annuity payment. That amount is divided by the value of an
Annuity Unit as of the Annuity Date to establish the number of Annuity Units
representing each Variable Annuity payment. The number of Annuity Units
determined for the first Variable Annuity payment remains constant for the
second and subsequent monthly Variable Annuity payments, assuming that no
reallocation of Contract Values is made. The total Variable Annuity payment is
equal to the sum of the annuity payments as determined above for each Portfolio
to which Contract Value is allocated on the Annuity Date.
 
SUBSEQUENT MONTHLY PAYMENTS
 
     The amount of the second and each subsequent monthly Variable Annuity
payment is determined by multiplying the number of Annuity Units, as determined
in connection with the determination of the initial monthly payment, above, by
the Annuity Unit Value as of the Valuation Period next preceding the date on
which each annuity payment is due.
 
ANNUITY UNIT VALUE
 
     The initial value of an Annuity Unit of each Portfolio was set when the
Portfolios were established. The value may increase or decrease from one
Valuation Period to the next. The annuity tables contained in the Contract are
based on a 3.0% per annum assumed investment rate. If the actual net investment
rate experienced by a Portfolio exceeds 3.0%, Variable Annuity payments derived
from allocations to that Portfolio will increase over time. Conversely, if the
actual rate is less than 3.0%, Variable Annuity payments will decrease over
time. If the net investment rate equals 3.0%, the Variable Annuity payments will
remain constant. If a higher assumed investment rate had been used, the initial
monthly payment would be higher, but the actual net investment rate would also
have to be higher in order for annuity payments to increase (or not to
decrease).
 
     The payee receives the value of a fixed number of Annuity Units each month.
The value of a fixed number of Annuity Units will reflect the investment
performance of the Portfolios elected, and the amount of each annuity payment
will vary accordingly.
 
     For each Portfolio, the value of an Annuity Unit for any Valuation Period
is determined by multiplying the Annuity Unit Value for the immediately
preceding Valuation Period by the Net Investment Factor for the Valuation Period
for which the Annuity Unit Value is being calculated. The result is then
multiplied by a second factor which offsets the effect of the assumed net
investment rate of 3.0% per annum which is assumed in the annuity tables
contained in the Contract. The Net Investment Factor, which reflects changes in
the net asset value of the shares of the Series in which the Portfolio invests,
is described in greater detail in the Statement of Additional Information.
 
- --------------------------------------------------------------------------------
                                 ADMINISTRATION
- --------------------------------------------------------------------------------
 
     Please direct all service inquiries to the Company at (800) 766-4683. Be
sure to provide the policy number and Owner's name.
 
STATEMENTS AND REPORTS
 
     The Company will mail to Contract Owners, at their last known address of
record, any statements and reports required by applicable law or regulation.
Contract Owners should therefore give the Company prompt notice of any address
change. The Company will send a confirmation statement to Contract Owners each
time a transaction is made affecting the Owner's Contract Value, such as making
additional Premiums, transfers, exchanges or withdrawals. Quarterly statements
are also mailed detailing the Contract activity during the calendar quarter.
Instead of
 
                                       23
<PAGE>   28
 
receiving an immediate confirmation of transactions made pursuant to some 
types of periodic payment plans (such as a Dollar Cost Averaging Program) or 
salary reduction arrangement, the Contract Owner may receive confirmation of 
such transactions in their quarterly statements. The Contract Owner should 
review the information in these statements carefully. All errors or corrections 
must be reported to the Company immediately to assure proper crediting to the 
Owner's Contract. The Company will assume all transactions are accurate unless
the Contract Owner notifies the Company otherwise within thirty (30) days after 
receipt of the statement. The Company will also send to Contract Owners such 
additional reports and information as may be required by Federal securities 
laws.
 
   
MARKET TIMING AND ASSET ALLOCATION SERVICES
    
 
   
     Certain third parties offer market timing and asset allocation services in
connection with the Contracts. In certain situations, the Company will honor
transfer instructions from such third parties provided such market timing and
asset allocation services comply with the Company's administrative systems,
rules and procedures, which may be modified by the Company at any time. PLEASE
NOTE that fees and charges assessed for such market timing and asset allocation
services are separate and distinct from the Contract fees and charges set forth
herein. The Company neither recommends nor discourages such market timing and
asset allocation services.
    
 
- --------------------------------------------------------------------------------
                                     TAXES
- --------------------------------------------------------------------------------
 
     NOTE: INFORMATION CONTAINED HEREIN SHOULD NOT BE SUBSTITUTED FOR THE ADVICE
OF A PERSONAL TAX ADVISER. THE COMPANY DOES NOT MAKE ANY GUARANTEE REGARDING THE
TAX STATUS OF ANY CONTRACT OR ANY TRANSACTION INVOLVING THE CONTRACTS.
 
GENERAL
 
     Section 72 of the Code governs taxation of annuities in general. An
individual Owner is not taxed on increases in the value of a Contract until
distribution occurs, either in the form of a non-annuity distribution or as
annuity payments under the Annuity Option elected. For a lump sum payment
received as a total surrender (total redemption), the recipient is taxed on the
portion of the payment that exceeds the cost basis of the Contract. For a
payment received as a withdrawal (partial redemption), Federal tax liability is
determined on a last-in, first-out basis, meaning taxable income is withdrawn
before the cost basis of the Contract is withdrawn. For Contracts issued in
connection with Non-Qualified Plans, the cost basis is generally the Premiums,
while for Contracts issued in connection with Qualified Plans there may be no
cost basis. The taxable portion of the lump sum payment is taxed at ordinary
income tax rates. Tax penalties may also apply.
 
   
     For annuity payments, a portion of each payment in excess of an exclusion
amount is includable in taxable income. The exclusion amount for payments based
on a fixed annuity option is determined by multiplying the payment by the ratio
that the cost basis of the Contract (adjusted for any period certain or refund
feature) bears to the expected return under the Contract. The exclusion amount
for payments based on a variable annuity option is determined by dividing the
cost basis of the Contract (adjusted for any period certain or refund guarantee)
by the number of years over which the annuity is expected to be paid. Payments
received after the investment in the Contract has been recovered (i.e. when the
total of the excludable amounts equal the investment in the Contract) are fully
taxable. The taxable portion is taxed at ordinary income tax rates. Owners,
Annuitants and Beneficiaries under the Contracts should seek competent financial
advice about the tax consequences of distributions under the retirement plan for
which the Contracts are purchased.
    
 
     Generally, the amount of any payment of interest to a non-resident alien of
the United States shall be subject to withholding of a tax equal to thirty (30%)
percent of such amount or, if applicable, a lower treaty rate. A payment may not
be subject to withholding where the recipient sufficiently establishes that such
payment is effectively connected to the recipient's conduct of a trade or
business in the United States and such payment is included in recipient's gross
income.
 
     The Company is taxed as a life insurance company under the Code. For
Federal income tax purposes, the Separate Account is not a separate entity from
the Company and its operations form a part of the Company.
 
WITHHOLDING TAX ON DISTRIBUTIONS
 
     The Code generally requires the Company (or, in some cases, a plan
administrator) to withhold tax on the taxable portion of any distribution or
withdrawal from a Contract. For "eligible rollover distributions" from Contracts
issued under certain types of Qualified Plans, 20% of
 
                                       24
<PAGE>   29
 
the distribution must be withheld, unless the payee elects to have the 
distribution "rolled over" to another eligible plan in a direct transfer. 
This requirement is mandatory and cannot be waived by the Owner. Withholding 
on other types of distributions can be waived.
 
   
     An "eligible rollover distribution" is the estimated taxable portion of any
amount received by a covered employee from a plan qualified under Section 401(a)
or 403(a) of the Code, or from a tax sheltered annuity qualified under Section
403(b) of the Code (other than (1) annuity payments for the life (or life
expectancy) of the employee, or joint lives (or joint life expectancies) of the
employee and his or her designated beneficiary, or for a specified period of ten
years or more; and (2) minimum distributions required to be made under the
Code). Failure to "rollover" the entire amount of an eligible rollover
distribution (including an amount equal to the 20% portion of the distribution
that was withheld) could have adverse tax consequences, including the imposition
of a penalty tax on premature withdrawals, described later in this section.
    
 
     Withdrawals or distributions from a Contract other than eligible rollover
distributions are also subject to withholding on the estimated taxable portion
of the distribution, but the Owner may elect in such cases to waive the
withholding requirement. If not waived, withholding is imposed (1) for periodic
payments, at the rate that would be imposed if the payments were wages, or (2)
for other distributions, at the rate of 10%. If no withholding exemption
certificate is in effect for the payee, the rate under (1) above is computed by
treating the payee as a married individual claiming 3 withholding exemptions.
 
DIVERSIFICATION -- SEPARATE ACCOUNT INVESTMENTS
 
     Section 817(h) of the Code imposes certain diversification standards on the
underlying assets of variable annuity contracts. The Code provides that a
variable annuity contract will not be treated as an annuity contract for any
period (and any subsequent period) for which the investments are not adequately
diversified, in accordance with regulations prescribed by the United States
Treasury Department ("Treasury Department"). Disqualification of the Contract as
an annuity contract would result in imposition of Federal income tax to the
Owner with respect to earnings allocable to the Contract prior to the receipt of
payments under the Contract. The Code contains a safe harbor provision which
provides that annuity contracts such as the Contracts meet the diversification
requirements if, as of the close of each calendar quarter, the underlying assets
meet the diversification standards for a regulated investment company, and no
more than 55% of the total assets consist of cash, cash items, U.S. government
securities and securities of other regulated investment companies.
 
     The Treasury Department has issued Regulations establishing diversification
requirements for the investment portfolios underlying variable contracts such as
the Contract. The Regulations amplify the diversification requirements for
variable contracts set forth in the Code and provide an alternative to the safe
harbor provision described above. Under the Regulations, an investment portfolio
will be deemed adequately diversified if (1) no more than 55% of the value of
the total assets of the portfolio is represented by any one investment; (2) no
more than 70% of the value of the total assets of the portfolio is represented
by any two investments; (3) no more than 80% of the value of the total assets of
the portfolio is represented by any three investments; and (4) no more than 90%
of the value of the total assets of the portfolio is represented by any four
investments.
 
     The Company intends that each Series of the Underlying Funds will be
managed by its respective investment adviser in such a manner as to comply with
these diversification requirements.
 
   
     The Treasury Department has indicated that the diversification Regulations
do not provide guidance regarding the circumstances in which Contract Owner
control of the investments of the Separate Account will cause the Contract Owner
to be treated as the owner of the assets of the Separate Account, thereby
resulting in the loss of favorable tax treatment for the Contract. At this time
it cannot be determined whether additional guidance will be provided and what
standards may be contained in such guidance.
    
 
   
     The amount of Contract Owner control which may be exercised under the
Contract is different in some respects from the situations addressed in
published rulings issued by the Internal Revenue Service in which it was held
that the policy owner was not the owner of the assets of the separate account.
It is unknown whether these differences, such as the Contract Owner's ability to
transfer among investment choices or the number and type of investment choices
available, would cause the Contract Owner to be considered as the owner of the
assets of the Separate Account resulting in the imposition of federal income tax
to the Contract Owner with respect to earnings allocable to the Contract prior
to receipt of payments under the Contract.
    
 
   
     In the event any forthcoming guidance or ruling is considered to set forth
a new position, such guidance or ruling will generally be applied only
prospectively.
    
 
                                       25
<PAGE>   30
 
   
However, if such ruling or guidance was not considered to set forth a new 
position, it may be applied retroactively resulting in the Contract Owner being 
retroactively determined to be the owner of the assets of the Separate Account.
    
 
   
     Due to the uncertainty in this area, the Company reserves the right to
modify the Contract in any attempt to maintain favorable tax treatment.
    
 
MULTIPLE CONTRACTS
 
     The Code provides that multiple annuity contracts which are issued within a
calendar year to the same contract owner by one company or its affiliates are
treated as one annuity contract for purposes of determining the tax consequences
of any distribution. Such treatment may result in adverse tax consequences
including more rapid taxation of the distributed amounts from such multiple
contracts. The Company believes that Congress intended to affect the purchase of
multiple deferred annuity contracts which may have been purchased to avoid
withdrawal income tax treatment. Owners should consult a tax adviser prior to
purchasing more than one annuity contract in any calendar year.
 
   
CONTRACTS OWNED BY OTHER THAN NATURAL PERSONS
    
 
   
     Under Section 72(u) of the Code, the investment earnings on premiums for
Contracts will be taxed currently to the Contract Owner if the Owner is a
non-natural person, e.g., a corporation or certain other entities. Such
Contracts generally will not be treated as annuities for federal income tax
purposes. However, this treatment is not applied to Contracts held by a trust or
other entity as an agent for a natural person nor to Contracts held by Qualified
Plans. Purchasers should consult their own tax counsel or other tax adviser
before purchasing a Contract to be owned by a non-qualified person.
    
 
TAX TREATMENT OF ASSIGNMENTS
 
     An assignment of a Contract may have tax consequences, and may also be
prohibited by ERISA in some circumstances. Owners should, therefore, consult
competent legal advisers should they wish to assign their Contracts.
 
QUALIFIED PLANS
 
     The Contracts offered by this Prospectus are designed to be suitable for
use under various types of Qualified Plans. Taxation of Owners in each Qualified
Plan varies with the type of plan and terms and conditions of each specific
plan. Owners, Annuitants and Beneficiaries are cautioned that benefits under a
Qualified Plan may be subject to the terms and conditions of the plan,
regardless of the terms and conditions of the contracts issued to fund the plan.
For a more detailed description of the various types of plans under which the
Contracts may be purchased, see the Statement of Additional Information.
 
TAX TREATMENT OF WITHDRAWALS
 
QUALIFIED PLANS
 
     Section 72(t) of the Code imposes a 10% penalty tax on the taxable portion
of any early distribution from qualified retirement plans, including contracts
issued and qualified under Code Sections 401 (H.R. 10 and Corporate Pension and
Profit Sharing Plans), 403(b) (tax-sheltered annuities) and 408(b) (IRAs).
 
     The tax penalty will not apply to the following distributions: (1) if
distribution is made on or after the date on which the Owner or Annuitant (as
applicable) reaches age 59 1/2; (2) distributions following the death or
disability of the Owner or Annuitant (as applicable) (for this purpose
"disability" is defined in Section 72(m)(7) of the Code); (3) distributions that
are part of substantially equal periodic payments made not less frequently than
annually for the life (or life expectancy) of the Owner or Annuitant (as
applicable) or the joint lives (or joint life expectancies) of such Owner or
Annuitant (as applicable) and his or her designated beneficiary; (4)
distributions to an Owner or Annuitant (as applicable) who has separated from
service after he has attained age 55; (5) distributions made to the Owner or
Annuitant (as applicable) to the extent such distributions do not exceed the
amount allowable as a deduction under Code Section 213 to the Owner or Annuitant
(as applicable) for amounts paid during the taxable year for medical care; and
(6) distributions made to an alternate payee pursuant to a qualified domestic
relations order.
 
     The exceptions stated in items (4), (5) and (6) above do not apply in the
case of an IRA.
 
   
     Limitations imposed by the Code on withdrawals from tax-sheltered annuities
are described above under "Purchases, Withdrawals and Contract Value --
Withdrawals (Redemptions)."
    
 
   
     The taxable portion of a withdrawal or distribution from Contracts issued
under certain types of plans may, under some circumstances, be "rolled over"
into another eligible plan so as to continue to defer income tax on the taxable
portion. Effective January 1, 1993, such treatment is available for any
"eligible rollover distribution" made by certain types of plans (as described
above under "Taxes -- Withholding Tax on Distributions") that is transferred
    
 
                                       26
<PAGE>   31
 
   
within 60 days of receipt into a plan qualified under section 401(a) or 403(a)
of the Code, a tax-sheltered annuity, an IRA, or an individual retirement 
account described in section 408(a) of the Code. Plans making such eligible 
rollover distributions are also required, with some exceptions specified in the 
Code, to provide for a direct transfer of the distribution to the transferee 
plan designated by the recipient.
    
 
     Amounts received from IRAs may also be rolled over into other IRAs,
individual retirements accounts or certain other plans, subject to limitations
set forth in the Code.
 
NON-QUALIFIED PLANS
 
   
     Section 72 of the Code governs treatment of distributions from annuity
contracts. It provides that if the Contract Value exceeds the aggregate Premiums
made, any amount withdrawn not in form of an annuity payment will be treated as
coming first from the earnings and then, only after the income portion is
exhausted, as coming from the principal. Withdrawn earnings are included in a
taxpayer's gross income. Section 72 further provides that a 10% penalty will
apply to the income portion of any distribution. The penalty is not imposed on
amounts received: (1) after the taxpayer reaches 59 1/2; (2) upon the death of
the Owner; (3) if the taxpayer is totally disabled as defined in Section
72(m)(7); (4) in a series of substantially equal periodic payments made at least
annually for the life of the taxpayer or for the joint lives of the taxpayer and
his Beneficiary; (5) under an immediate annuity; or (6) which are allocable to
premium payments made prior to August 14, 1982.
    
 
                                       27
<PAGE>   32
 
- --------------------------------------------------------------------------------
                                  ADVERTISING
- --------------------------------------------------------------------------------
 
     The Company may from time to time advertise several types of historical
performance for the Portfolios of the Separate Account.
 
     The Company may advertise for the Portfolios standardized "average annual
total return", calculated in a manner prescribed by the Securities and Exchange
Commission, and non-standardized "total return". "Average annual total return"
will show the percentage rate of return of a hypothetical initial investment of
$1,000 for at least the most recent one, five and ten year period, or for a
period covering the time the mutual fund held in the Portfolio has been in
existence, if the Portfolio has not been in existence for one of the prescribed
periods. This calculation reflects the deduction of all applicable charges made
to the Contracts except for premium taxes, which may be imposed by certain
states.
 
   
     Nonstandardized total return may be for periods other than those required
to be presented or may otherwise differ from standardized total return.
    
 
   
     If a Series or mutual fund has been in existence for a longer period of
time than the corresponding Portfolio, the standardized average annual total
return and non-standardized total return quotations will show the investment
performance such Series or mutual fund would have achieved (reduced by the
applicable charges) had they been held in a Portfolio for the period quoted.
    
 
   
     A "yield" may also be advertised for a Portfolio (other than the PPM
America/JNL Money Market Portfolio). "Yield" refers to the annualized income
generated by an investment in the Portfolio over a specified thirty-day period.
The "yield" is calculated by assuming that the income generated by the
investment during that thirty-day period is generated each thirty-day period
over a twelve-month period and is shown as a percentage of the investment.
    
 
     A "yield" and "effective yield" may also be advertised for the PPM
America/JNL Money Market Portfolio. "Yield" is a measure of the net dividend and
interest income earned over a specific seven-day period (which period will be
stated in the advertisement) expressed as a percentage of the offering price of
the Portfolio's units. Yield is an annualized figure, which means that it is
assumed that the Portfolio generates the same level of net income over a 52-week
period. The "effective yield" is calculated under rules prescribed by the
Securities and Exchange Commission and assumes a weekly reinvestment of income
earned. The effective yield will be slightly higher than the yield due to this
compounding effect.
 
   
     The Company may also from time to time advertise the performance of the
Portfolios of the Separate Account relative to the performance of variable
annuities or mutual funds of other companies with similar or different
objectives, or the investment industry as a whole. Other investments to which
the Portfolios may be compared include, but are not limited to: precious metals;
real estate; stocks and bonds; closed-end funds; CD's; bank money market deposit
accounts and passbook savings; and the Consumer Price Index.
    
 
     The Portfolios of the Separate Account may also be compared to certain
market indexes, which may include, but are not limited to: S&P 500;
Shearson/Lehman Intermediate Government/Corporate Bond Index; Shearson/Lehman
Long-Term Government/Corporate Bond Index; Donoghue Money Fund Average; U.S.
Treasury Note Index; Bank Rate Monitor National Index of 2 1/2 Year CD Rates;
and Dow Jones Industrial Average.
 
     Normally these rankings and ratings are published by independent tracking
services and publications of general interest including, but not limited to:
Lipper Analytical Services, Inc., CDA Technologies, Morningstar, Donoghue's,
Weisenberger; magazines such as Money, Forbes, Kiplinger's Personal Finance
Magazine, Financial World, Consumer Reports, Business Week, Time, Newsweek, U.S.
News & World Report, National Underwriter; rating services such as LIMRA, Value,
Best's Agent Guide, Western Annuity Guide, Comparative Annuity Reports; and
other publications such as the Wall Street Journal, Barron's, Investor's Daily,
and Standard & Poor's Outlook. In addition, Variable Annuity Research & Data
Service (The VARDS Report) is an independent rating service that ranks over 500
variable annuity funds based upon total return performance. These rating
services and publications rank the performance of the Series against all funds
over specified periods and against funds in specified categories. The rankings
may or may not include the effects of sales or other charges.
 
     The Company is also ranked and rated by independent financial rating
services, among which are Standard & Poor's, A. M. Best Company and Duff &
Phelps. The purpose of these ratings is to reflect the financial strength or
claims-paying ability of the Company. The ratings are not intended to reflect
the investment experience or financial strength of the Separate Account. The
 
                                       28
<PAGE>   33
 
Company may advertise these ratings from time to time. In addition, the Company
may include in certain advertisements, endorsements in the form of a list of
organizations, individuals or other parties which recommend the Company or the
Contracts. Furthermore, the Company may occasionally include in advertisements
comparisons of currently taxable and tax deferred investment programs, based on
selected tax brackets, or discussions of alternative investment vehicles and
general economic conditions. All performance information and comparative
material advertised by the Company is historical in nature and is not intended
to represent or guarantee future results. A CONTRACT OWNER'S CONTRACT VALUE AT
REDEMPTION MAY BE MORE OR LESS THAN ORIGINAL COST.
 
- --------------------------------------------------------------------------------
                               LEGAL PROCEEDINGS
- --------------------------------------------------------------------------------
 
     There are no material legal proceedings, other than ordinary routine
litigation incidental to the business to which the Company and the Separate
Account are parties or to which any of their property is the subject.
 
     The General Distributor, Jackson National Financial Services, Inc., is not
engaged in any litigation of any material nature.
 
                                       29
<PAGE>   34
 
- --------------------------------------------------------------------------------
            TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
 
   
<TABLE>
<CAPTION>
                                                                                                   PAGE
                                                                                                   ----
<S>                                                                                                <C>
General Information and History.................................................................     2
Services........................................................................................     2
Purchase of Securities Being Offered............................................................     2
Underwriters....................................................................................     2
Calculation of Performance......................................................................     2
Additional Tax Information......................................................................     6
Annuity Payments; Net Investment Factor.........................................................     8
Financial Statements............................................................................    10
- -------------------------------------------------------------------------------------------------------
</TABLE>
    
 
                                       30
<PAGE>   35
 
- --------------------------------------------------------------------------------
                                   APPENDIX A
- --------------------------------------------------------------------------------
 
                                GENERAL ACCOUNT
 
     Because of exemptive and exclusionary provisions, interests in the General
Account have not been registered under the Securities Act of 1933 ("1933 Act"),
nor is the General Account registered as an investment company under the
Investment Company Act of 1940 ("1940 Act"). Accordingly, neither the General
Account nor any interest therein is generally subject to the provisions of the
1933 or 1940 Acts, and the staff of the Securities and Exchange Commission,
typically, does not review the disclosures in a prospectus which relate to the
General Account portion. Disclosures regarding the General Account portion of
the Contract may be subject to certain generally applicable provisions of the
Federal securities laws relating to accuracy and completeness of statements made
in prospectuses.
 
   
     Investors should review Jackson National Life Insurance Company's Contract
for a full description of the General Account portion of the Contract. Any
questions regarding these Contracts should be directed to the Company's Annuity
Service Center.
    
 
                                       A-1
<PAGE>   36
 
                      [This Page Intentionally Left Blank]
<PAGE>   37
 
- --------------------------------------------------------------------------------
                                   APPENDIX B
- --------------------------------------------------------------------------------
 
     Below are the investment objectives of each Series of the Underlying Funds
available through the Separate Account. There can be no assurance that any
Series will achieve its investment objectives.
 
                                JNL SERIES TRUST
 
   
     The JNL Series Trust (the "Trust") is an open-end management investment
company created under the laws of Massachusetts, by a Declaration of Trust,
dated June 1, 1994. Shares of the Trust will be sold primarily to life insurance
companies to fund the benefits under variable insurance or annuity policies.
Jackson National Financial Services, Inc. ("JNFSI"), a wholly owned subsidiary
of Jackson National Life Insurance Company, serves as investment adviser for all
the Series of the Trust. Janus Capital Corporation ("Janus Capital") serves as
sub-adviser for JNL Aggressive Growth, JNL Capital Growth and JNL Global
Equities Series; Fred Alger Management, Inc. ("Alger Management") serves as
sub-adviser for the JNL/Alger Growth Series; Phoenix Investment Counsel, Inc.
("PIC") serves as sub-adviser for the JNL/Phoenix Investment Counsel Balanced
and JNL/Phoenix Investment Counsel Growth Series; PPM America, Inc. ("PPM")
serves as sub-adviser for the PPM America/JNL High Yield Bond, PPM America/JNL
Money Market and PPM America/JNL Value Equity Series; Salomon Brothers Asset
Management Inc ("Salomon Brothers") serves as sub-adviser for the Salomon
Brothers/JNL Global Bond and Salomon Brothers/JNL U.S. Government & Quality Bond
Series; T. Rowe Price Associates, Inc. ("T. Rowe") serves as sub-adviser for the
T. Rowe Price/JNL Established Growth and T. Rowe Price/JNL Mid-Cap Growth
Series; and Rowe Price-Fleming International, Inc. ("Price-Fleming") serves as
sub-adviser for the T. Rowe Price/JNL International Equity Investment Series.
    
 
     JNL AGGRESSIVE GROWTH SERIES is a non-diversified Series that seeks as its
investment objective long-term growth of capital by investing primarily in
common stocks of issuers of any size, including larger, well-established
companies and smaller, emerging growth companies.
 
     JNL CAPITAL GROWTH SERIES is a non-diversified Series that seeks as its
investment objective long-term growth of capital by emphasizing investments in
common stocks of companies with an average market capitalization between $1
billion and $5 billion. Although the Series expects to emphasize such
securities, it may also invest in smaller or larger companies.
 
     JNL GLOBAL EQUITIES SERIES seeks as its investment objective long-term
growth of capital by investing primarily in common stocks of foreign and
domestic issuers of any size. This Series normally invests in issuers from at
least five different countries including the United States.
 
     JNL/ALGER GROWTH SERIES seeks as its investment objective long-term capital
appreciation by investing in a diversified, actively managed portfolio of equity
securities, primarily of companies with total market capitalization of $1
billion or greater.
 
     JNL/PHOENIX INVESTMENT COUNSEL BALANCED SERIES seeks as its investment
objective reasonable income, long-term capital growth and preservation of
capital. It is intended that this Series will invest in common stocks and fixed
income securities, with emphasis on income-producing securities which appear to
have some potential for capital enhancement.
 
     JNL/PHOENIX INVESTMENT COUNSEL GROWTH SERIES seeks as its investment
objective long-term appreciation of capital. Since income is not an objective,
any income generated by the investment of this Series' assets will be incidental
to its objective. It is intended that this Series will invest primarily in the
common stocks of companies believed by the sub-adviser to have appreciation
potential.
 
     PPM AMERICA/JNL HIGH YIELD BOND SERIES seeks as its investment objective a
high level of current income; its secondary investment objective is capital
appreciation by investing in fixed-income securities, with emphasis on
higher-yielding, higher-risk, lower-rated or unrated corporate bonds.
 
     PPM AMERICA/JNL MONEY MARKET SERIES seeks as its investment objective as
high a level of current income as is consistent with the preservation of capital
and maintenance of liquidity by investing in high quality, short-term money
market instruments.
 
     PPM AMERICA/JNL VALUE EQUITY SERIES seeks as its investment objective a
high total return by investing in common stocks which the sub-adviser believes
to be undervalued relative to the stock market in general at the time of
purchase.
 
                                       B-1
<PAGE>   38
 
     SALOMON BROTHERS/JNL GLOBAL BOND SERIES seeks as its investment objective a
high level of current income. As a secondary objective, the Series will seek
capital appreciation. The Series seeks to achieve its objectives by investing in
a globally diverse portfolio of fixed income investments and by giving the
sub-adviser broad discretion to deploy the Series assets among certain segments
of the fixed income market that the sub-adviser believes will best contribute to
achievement of the Series' investment objectives. In pursuing its investment
objectives, the Series reserves the right to invest predominantly in securities
rated in medium or lower rated categories or as determined by the sub-adviser to
be of comparable quality. Although the Series has the ability to invest up to
100% of the Series' assets in lower-rated securities, the Series does not
anticipate investing in excess of 75% of the Series' assets in such securities.
 
     SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES seeks as its
investment objective a high level of current income, by investing primarily in
debt obligations and mortgage-backed securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities including collateralized mortgage
obligations backed by such securities. The Series may also invest a portion of
its assets in investment-grade bonds.
 
   
     T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES seeks as its investment
objective long-term growth of capital and increasing dividend income through
investment primarily in common stocks of well-established growth companies.
    
 
   
     T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES seeks as its
investment objective long-term growth of capital through investments primarily
in common stocks of established, non-U.S. companies.
    
 
   
     T. ROWE PRICE/JNL MID-CAP GROWTH SERIES seeks as its investment objective
long-term growth of capital by investing primarily in the common stock of
companies with medium-sized market capitalizations ("mid-cap") and the potential
for above average growth.
    
 
                                       B-2
<PAGE>   39
 
- --------------------------------------------------------------------------------
                                   APPENDIX C
- --------------------------------------------------------------------------------
 
EXAMPLES OF CALCULATION OF WITHDRAWAL CHARGE
 
     EXAMPLE 1 -- Assume a single premium of $50,000 is paid into the contract,
no transfers are made, no additional premiums are paid and there are no partial
withdrawals. The table below illustrates three examples of the Withdrawal
Charges that would be imposed if the contract is completely surrendered, based
on hypothetical contract values.
 
<TABLE>
<CAPTION>
- ---------------------------------------------------------
                                            WITHDRAWAL
COMPLETE     HYPOTHETICAL                     CHARGES
CONTRACT       CONTRACT        PREMIUMS   ---------------
 YEARS          VALUE         LIQUIDATED  PERCENT  AMOUNT
- ---------------------------------------------------------
<S>          <C>              <C>         <C>      <C>
   1           $ 55,000        $ 50,000(1)   6%    $3,000
   4             45,000          50,000(2)   3%     1,500
   7             70,000          50,000      0%(3)      0
- ---------------------------------------------------------
</TABLE>
 
   
NOTES:
    
 
   
(1) Earnings are withdrawn free of Withdrawal Charge.
    
 
   
(2) On full surrender, premium payments are fully liquidated, even if the
    contract value is less than unliquidated premiums.
    
 
   
(3) There is no Withdrawal Charge on any premiums liquidated that have been in
    the Contract for at least seven years.
    
 
- --------------------------------------------------------------------------------
 
     EXAMPLE 2 -- Assume a single premium of $50,000 is paid into the contract,
no transfers are made, no additional premiums are paid and that there are a
series of four partial withdrawals of $2,000, $7,000, $4,000 and $10,000 made
mid-year in the second, third, fourth and seventh contract years. The table
below illustrates the Withdrawal Charges that would be imposed based on
hypothetical contract values.
 
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
COMPLETE     HYPOTHETICAL                                       PARTIAL          FREE                       WITHDRAWAL CHARGE
CONTRACT       CONTRACT       UNLIQUIDATED     EARNINGS(6)     WITHDRAWAL     WITHDRAWAL      PREMIUMS      ------------------
 YEARS          VALUE           PREMIUM          (LOSS)        REQUESTED        AMOUNT       LIQUIDATED     PERCENT     AMOUNT
- ------------------------------------------------------------------------------------------------------------------------------
<S>          <C>              <C>              <C>             <C>            <C>            <C>            <C>         <C>
   2           $ 65,000         $ 50,000         $15,000        $  2,000       $ 15,000(1)     $    0          5%        $  0(2)
   3             54,000           50,000           4,000           7,000          5,000(3)      2,000(4)       4%          80(5)
   4             47,000           48,000          (1,000)          4,000          4,800             0          3%           0(7)
   7             50,000           48,000           2,000          10,000          2,000(8)      8,000          0%(9)        0
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
 
NOTES:
 
(1) Earnings exceed 10% of unliquidated premium, accordingly there was no
    Additional Free Withdrawal amount.
 
(2) Earnings could be withdrawn free of Withdrawal Charges.
 
(3) The Additional Free Withdrawal amount is 10% of unliquidated premium
    ($5,000) less earnings ($4,000), giving a total Free Withdrawal amount of
    $5,000.
 
(4) The Additional Free Withdrawal amount is treated as an advance of earnings,
    accordingly only $2,000 is liquidated.
 
(5) The Withdrawal Charge is liquidated premium multiplied by the Withdrawal
    Charge.
 
(6) Earnings is the difference between the Contract Value and unliquidated
    premium.
 
(7) If the contract was fully surrendered shortly after the partial withdrawal,
    then the Withdrawal Charge would be 3% of $4,800 ($144).
 
(8) There were no premium payments made in the last seven years, accordingly
    there would be no Additional Free Withdrawal amount.
 
(9) There is no Withdrawal Charge on premium payments made over seven years ago.
 
                                       C-1
<PAGE>   40



                      STATEMENT OF ADDITIONAL INFORMATION
   
                                  MAY 1, 1996
    

            INDIVIDUAL DEFERRED FIXED AND VARIABLE ANNUITY CONTRACTS
              ISSUED BY THE JACKSON NATIONAL SEPARATE ACCOUNT - I
                   OF JACKSON NATIONAL LIFE INSURANCE COMPANY

   
     This Statement of Additional Information is not a prospectus.  It contains
information in addition to and more detailed than set forth in the Prospectus
and should be read in conjunction with the Prospectus dated  May 1, 1996.  The
Prospectus may be obtained from Jackson National Life Insurance Company by
writing P. O. Box 30389 Lansing, MI 48909-7889, or calling 1-800-766-4683.
    

                               TABLE OF CONTENTS

   
<TABLE>
<CAPTION>
                                            PAGE
  <S>                                       <C>
  General Information and History            2
  Services                                   2
  Purchase of Securities Being Offered       2
  Underwriters                               2
  Calculation of Performance                 2
  Additional Tax Information                 6
  Annuity Payments; Net Investment Factor    8
  Financial Statements                       10

</TABLE>
    



GENERAL INFORMATION AND HISTORY

   
     The Jackson National Separate Account - I ("Separate Account") is a
separate investment account of Jackson National Life Insurance Company
("Company").  The Company is a wholly-owned subsidiary of Brooke Life Insurance
Company, and is ultimately a wholly-owned subsidiary of Prudential Corporation,
plc, London, England.
    

SERVICES

     The Company, which has responsibility for administration of the Contracts
and the Separate Account, maintains records of the name, address, taxpayer
identification number, and other pertinent information for each Contract Owner
and the number and type of Contract issued to each Contract Owner, and records
with  respect  to the Contract Value of each  Contract.

   
     The Custodian of the assets of the Separate Account is the Company.  The
Company  maintains a record of all purchases and redemptions of shares of the
underlying mutual funds.
    



                                       1


<PAGE>   41

   
    

   
     Price Waterhouse LLP, 100 East Wisconsin Avenue, Milwaukee, Wisconsin
53202, audits and reports on the Company's financial statements, including the
financial statements of the Separate Account, and perform other professional
accounting, auditing and advisory services when engaged to do so by the
Company.
    

PURCHASE OF SECURITIES BEING OFFERED

     The Contracts will be sold by licensed insurance agents in the states
where the Contracts may be lawfully sold.  Such agents will be registered
representatives of broker-dealers registered under the Securities Exchange Act
of 1934 who are members of the National Association of Securities Dealers,
Inc., ("NASD").

UNDERWRITERS

   
     The Contracts, which are offered continuously, are distributed by Jackson
National Financial Services, Inc. ("JNFSI"), 5901 Executive Drive, Lansing,
Michigan  48911, a subsidiary of the Company.
    

CALCULATION OF PERFORMANCE

   
     All performance advertising (except for performance advertising
pertaining to the PPM America/JNL Money Market Portfolio) will include
quotations of standardized total return, calculated in accordance with standard
methods prescribed by rules of the Securities and Exchange Commission, to
facilitate comparison with standardized total return advertised by other
variable annuity separate accounts.  Standardized total return advertised for a
specific period is found by first taking a hypothetical $1,000 investment in
each of the Portfolios' units on the first day of the period at the offering
price, which is the Accumulation Unit value per unit ("initial investment") and
computing the ending redeemable value ("redeemable value") of that investment
at the end of the period.  The redeemable value is then divided by the initial
investment which is then expressed as a percentage, carried to at least the
nearest hundredth of a percent.  Standardized total return reflects the
deduction of a Contract Maintenance Charge and a Mortality
    

   
                                       2
    


<PAGE>   42




   
and Expense Risk and Administration Charge.  The redeemable value also reflects
the effect of any applicable Withdrawal Charge that may be imposed at the end
of the period.  No deduction is made for premium taxes which may be assessed by
certain states. The standardized total return for each Portfolio (except the
PPM America/JNL Money Market Portfolio) for the period from commencement of 
operations of the corresponding Series of the JNL Series Trust to December 31, 
1995, is as follows:
    

   
<TABLE>
<S>                                                            <C>
JNL Aggressive Growth Portfolio*                                 15.62%
JNL Capital Growth Portfolio*                                    25.07%
JNL Global Equities Portfolio*                                   20.79%
JNL/Alger Growth Portfolio**                                     -9.39%
JNL/Phoenix Investment Counsel Balanced Portfolio*                7.13%
JNL/Phoenix Investment Counsel Growth Portfolio*                 19.02%
PPM America/JNL High Yield Bond Portfolio*                       -1.82%
PPM America/JNL Value Equity Portfolio*                          14.42%
Salomon Brothers/JNL Global Bond Portfolio*                      -0.97%
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio*   -1.13%
T. Rowe Price/JNL Established Growth Portfolio*                  13.09%
T. Rowe Price/JNL International Equity Investment Portfolio*     -1.05%
T. Rowe Price/JNL Mid-Cap Growth Portfolio*                      20.60%
</TABLE>
    

   
*  Corresponding Series of JNL Series Trust commenced operations on May 15,
   1995.
    

   
** Corresponding Series of JNL Series Trust commenced operations on October 16,
   1995.
    

   
     Nonstandardized total return may also be advertised.  Nonstandardized
total return may be for periods other than those required to be presented or
may otherwise differ from standardized total return.  Because the Contract is
designed for long term investment, nonstandardized total return that does not
reflect the deduction of the Withdrawal Charge may be advertised.  Reflecting
the deduction of the Withdrawal Charge decreases the level of performance
advertised.  Nonstandardized total return may also assume a larger initial
investment which more closely approximates the size of a typical Contract. The
nonstandardized total return for each Portfolio (except the PPM America/JNL
Money Market Portfolio), calculated in a manner similar to standardized
total return but assuming a hypothetical initial investment of $10,000,
deducting a maximum $35 Contract Maintenance Charge, and without deducting the
Withdrawal Charge, for the period from 


    
   
                                       3
    


<PAGE>   43




   
commencement of operations of the Corresponding Series of the JNL Series Trust
to December 31, 1995, is as follows:
    


   
<TABLE>
<S>                                                            <C>
JNL Aggressive Growth Portfolio*                                22.92%
JNL Capital Growth Portfolio*                                   32.31%
JNL Global Equities Portfolio*                                  28.05%
JNL/Alger Growth Portfolio**                                    -2.26%
JNL/Phoenix Investment Counsel Balanced Portfolio*              14.42%
JNL/Phoenix Investment Counsel Growth Portfolio*                26.19%
PPM America/JNL High Yield Bond Portfolio*                       5.27%
PPM America/JNL Value Equity Portfolio*                         21.54%
Salomon Brothers/JNL Global Bond Portfolio*                      6.16%
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio*   5.96%
T. Rowe Price/JNL Established Growth Portfolio*                 20.40%
T. Rowe Price/JNL International Equity Investment Portfolio*     6.21%
T. Rowe Price/JNL Mid-Cap Growth Portfolio*                     28.01%
</TABLE>
    

   
*  Corresponding Series of the JNL Series Trust commenced operations on May 15,
   1995.
    

   
** Corresponding Series of the JNL Series Trust commenced operations on October
   16, 1995.
    

   
     The standardized total return quotations will be current to
the last day of the calendar quarter preceding the date on which an
advertisement is submitted for publication.  Both the standardized 
total return and the nonstandardized total return will be based on the
rolling calendar quarters and will cover at least periods of one, five, and ten
years, or a period covering the time the Portfolio has been in existence, if it
has not been in existence for one of the prescribed periods.  If a Series has
been in existence for longer than the corresponding Portfolio, the standardized 
total return and nonstandardized total return quotations will show the
investment performance such Series would have achieved (reduced by the
applicable charges) had they been held in a Portfolio for the period quoted.
    

   
     Quotations of standardized total return and nonstandardized total return 
are based upon historical earnings and will fluctuate.  Any quotation of 
performance, therefore, should not be considered a guarantee of future 
performance.  Factors affecting the performance of a Series include general 
market conditions, operating expenses and investment management.  A Contract 
Owner's withdrawal value upon surrender of a Contract may be more or less than
original cost.
    

   
     The current annualized yield for 30-day periods may also be advertised for
the JNL/Phoenix Investment Counsel Balanced Portfolio, the PPM America/JNL High
Yield Bond Portfolio, the Salomon Brothers/JNL Global Bond Portfolio and the
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio.  The annualized
yield of a Portfolio refers to the income generated by the Portfolio over a
specified 30-day period.  Because this yield is annualized, the yield generated
by a Portfolio during the 30-day period is assumed to be generated each 30-day
period.  The yield is computed by dividing the net investment income per
accumulation unit earned during the period by the price per unit on the last
day of the period, according to the following formula:
    


   
                                       4
    


<PAGE>   44





   
                           6 
YIELD  =  2[ ((a - b) +  1)  - 1]
           ----------             
                 cd
    

   
 Where:
    

   
   a    = net investment income earned during the period by the Series.
    

   
   b    = expenses for the Portfolio accrued for the period (net of
          reimbursements).
    

   
   c    = the average daily number of shares outstanding during the period.
    

   
   d    = the maximum offering price per share on the last day of the
          period.
    

   
     Net investment income will be determined in accordance with rules
established by the Securities and Exchange Commission.  Accrued expenses will
include all recurring fees that are charged to all Contracts.
    

   
     The yield for the 30-day period ended December 31, 1995, for each of the
above-referenced Portfolios is as follows:
    

   
<TABLE>
<S>                                                            <C>
JNL/Phoenix Investment Counsel Balanced Portfolio              0.83%
PPM America/JNL High Yield Bond Portfolio                      7.61%
Salomon Brothers/JNL Global Bond Portfolio                     7.81%
Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio  4.87%
</TABLE>
    

   
     Because of the charges and deductions imposed by the Separate Account, the
yield for the Portfolio will be lower than the yield for the corresponding
Series.  The yield on amounts held in the Portfolios normally will fluctuate
over time.  Therefore, the disclosed yield for any given period is not an
indication or representation of future yields or rates of return.  A
Portfolio's actual yield will be affected by the types and quality of portfolio
securities held by the Series and its operating expenses.
    

   
     Any current yield quotations of the PPM America/JNL Money Market
Portfolio, subject to Rule 482 of the Securities Act of 1933, shall consist of
a seven calendar day historical yield, carried at least to the nearest
hundredth of a percent.  The yield shall be calculated by determining the net
change, exclusive of capital changes, in the value of a hypothetical
pre-existing account having a balance of one accumulation unit at the beginning
of the base period, subtracting a hypothetical charge reflecting deductions
from Contract Owner Accounts, and dividing the net change in account value by
the value of the account at the beginning of the
    

   
                                       5
    


<PAGE>   45



   
period to obtain a base period return and multiplying the base period return by
(365/7).  The PPM America/JNL Money Market Portfolio's yield and effective
yield is computed similarly but includes the effect of assumed compounding on
an annualized basis of the current yield quotations of the Portfolio.  The PPM
America/JNL Money Market Portfolio's yield and effective yield for the seven
day period ended December 31, 1995 were 2.91% and 2.95%, respectively.
    

     The PPM America/JNL Money Market Portfolio's yield and effective yield
will fluctuate daily.  Actual yields will depend on factors such as the type of
instruments in the Series' portfolio, portfolio quality and average maturity,
changes in interest rates, and the Series' expenses.  Although the
corresponding Portfolio determines its yield on the basis of a seven calendar
day period, it may use a different time period on occasion.  The yield quotes
may reflect the expense limitations described in the Series' Prospectus or
Statement of Additional Information.  There is no assurance that the yields
quoted on any given occasion will be maintained for any period of time and
there is no guarantee that the net asset values will remain constant.  It
should be noted that neither a Contract Owner's investment in the PPM
America/JNL Money Market Portfolio nor that Portfolio's investment in the PPM
America/JNL Money Market Series, is guaranteed or insured.  Yield of other
money market funds may not be comparable if a different base or another method
of calculation is used.

ADDITIONAL TAX INFORMATION

   
     The following are general descriptions of the types of Qualified Plans
with which the Contracts may be used.  Such descriptions are not exhaustive and
are for general information purposes only.  The tax rules regarding Qualified
Plans are very complex and will have differing applications depending on
individual facts and circumstances.  Each purchaser should obtain competent tax
advice prior to purchasing a Contract issued under a Qualified Plan.
    

     Contracts issued pursuant to Qualified Plans include special provisions
restricting Contract provisions that may otherwise be available and described
in this Prospectus. Generally, Contracts issued pursuant to Qualified Plans are
not transferable except upon surrender or annuitization.  Various penalty and
excise taxes may apply to contributions or distributions made in violation of
applicable limitations.  Furthermore, certain withdrawal penalties and
restrictions may apply to surrenders from Qualified Plan Contracts.

     (A) H.R. 10 PLANS

           Section 401 of the Code permits self-employed individuals to
      establish Qualified Plans for themselves and their employees, commonly
      referred to as "H.R. 10" or "Keogh" Plans.  Contributions made to the
      Plan for the benefit of the employees will not be included in the gross
      income of the employees until distributed from the Plan. The tax
      consequences to Owners may vary depending upon the particular Plan
      design. However, the Code places limitations and restrictions on all
      Plans on such items as: amounts of


   
                                       6
    


<PAGE>   46




      allowable contributions; form, manner and timing of distributions;
      vesting and non-forfeitability of interests; nondiscrimination in
      eligibility and participation; and the tax treatment of distributions,
      withdrawals and surrenders.  Purchasers of Contracts for use with an H.R.
      10 Plan should obtain competent tax advice as to the tax treatment and
      suitability of such an investment.

      (B) TAX-SHELTERED ANNUITIES

           Section 403(b) of the Code permits the purchase of "tax-sheltered
      annuities" by public schools and certain charitable, educational and
      scientific organizations described in Section 501(c) (3) of the Code.
      These qualifying employers may make contributions to the Contracts for
      the benefit of their employees. Such contributions are not included in
      the gross income of the employee until the employee receives
      distributions from the Contract.  The amount of contributions to the
      tax-sheltered annuity is limited to certain maximums imposed by the Code.
      Furthermore, the Code sets forth additional restrictions governing such
      items as transferability, distributions, non-discrimination and
      withdrawals.  Any employee should obtain competent tax advice as to the
      tax treatment and suitability of such an investment.

      (C) INDIVIDUAL RETIREMENT ANNUITIES

           Section 408(b) of the Code permits eligible individuals to
      contribute to an individual retirement program known as an "Individual
      Retirement Annuity" ("IRA"). Under applicable limitations, certain
      amounts may be contributed to an IRA which will be deductible from the
      individual's gross income.  These IRAs are subject to limitations on
      eligibility, contributions, transferability and distributions.  Sales of
      Contracts for use with IRAs are subject to special requirements imposed
      by the Code, including the requirement that certain informational
      disclosure be given to persons desiring to establish an IRA.  Purchasers
      of Contracts to be qualified as IRAs should obtain competent tax advice
      as to the tax treatment and suitability of such an investment.

      (D) CORPORATE PENSION AND PROFIT-SHARING PLANS

           Sections 401(a) and 401(k) of the Code permit corporate employers to
      establish various types of retirement plans for employees. These
      retirement plans may permit the purchase of the Contracts to provide
      benefits under the plan. Contributions to the plan for the benefit of
      employees will not be included in the gross income of the employee until
      distributed from the plan. The tax consequences to Owners may vary
      depending upon the particular plan design.  However, the Code places
      limitations on all plans on such items as amount of allowable
      contributions; form, manner and timing of distributions; vesting and
      non-forfeitability of interests; nondiscrimination in eligibility and
      participation; and the tax treatment of distributions, withdrawals and
      surrenders.  Purchasers of Contracts


   
                                       7
    


<PAGE>   47



      for use with corporate pension or profit sharing plans should obtain
      competent tax advice as to the tax treatment and suitability of such an
      investment.

      (E) NON-QUALIFIED DEFERRED COMPENSATION PLANS -- SECTION 457

           Under Section 457 of the Code, governmental and certain other
      tax-exempt employers may establish, for the benefit of their employees,
      deferred compensation plans which may invest in annuity contracts. The
      Code, as in the case of qualified plans, establishes limitations and
      restrictions on eligibility, contributions and distributions. Under these
      plans, contributions made for the benefit of the employees will not be
      included in the employees' gross income until distributed from the plan.
      However, under a 457 plan all the plan assets shall remain solely the
      property of the employer, subject only to the claims of the employer's
      general creditor until such time as made available to an Owner or a
      Beneficiary.

   
ANNUITY PAYMENTS; NET INVESTMENT FACTOR
    

   
     See "Annuity Payments" on page 20 of the Prospectus.
    

   
     The Net Investment Factor is an index applied to measure the net
investment performance of a Portfolio from one Valuation Date to the next.
Since the Net Investment Factor may be greater or less than or equal to one,
and the factor that offsets the 3% investment rate assumed is slightly less
than one, the value of an Annuity Unit (which changes with the product of that
factor) and the net investment may increase, decrease or remain the same.
    

     The Net Investment Factor for any Portfolio for any Valuation Period is
determined by dividing (a) by (b) and then subtracting (c) from the result
where:

     (a) is the net result of:

            (1)  the net asset value of a Series share held in the
                 Portfolio determined as of the Valuation Date at the end of
                 the Valuation Period, plus

            (2)  the per share amount of any dividend or other
                 distribution declared by the Series if the "ex-dividend" date
                 occurs during the Valuation Period, plus or minus

            (3)  a per share credit or charge with respect to any
                 taxes paid or reserved for by the Company during the Valuation
                 Period which are determined by the Company to be attributable
                 to the operation of the Portfolio (no federal income taxes are
                 applicable under present law );


   
                                      8
    

<PAGE>   48


      (b)  is the net asset value of the Series share held in the
           Portfolio determined as of the Valuation Date at the end of the
           preceding Valuation Period; and

      (c)  is the asset charge factor determined by the Company for the
           Valuation Period to reflect the charges for assuming the mortality
           and expense risks and the administration charge.






   
                                      9
    



<PAGE>   49
JACKSON NATIONAL
SEPARATE ACCOUNT - I

FINANCIAL STATEMENTS

DECEMBER 31, 1995

<PAGE>   50

   
                      REPORT OF INDEPENDENT ACCOUNTANTS
    


   
TO JACKSON NATIONAL LIFE INSURANCE COMPANY AND
CONTRACT OWNERS OF JACKSON NATIONAL SEPARATE ACCOUNT - I
    


   
IN OUR OPINION, THE ACCOMPANYING STATEMENT OF ASSETS AND LIABILITIES, INCLUDING
THE SCHEDULE OF INVESTMENTS, AND THE RELATED STATEMENTS OF OPERATIONS AND
CHANGES IN NET ASSETS PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL
POSITION OF JACKSON NATIONAL SEPARATE ACCOUNT - I AND THE JNL AGGRESSIVE GROWTH
DIVISION, JNL CAPITAL GROWTH DIVISION, JNL GLOBAL EQUITIES DIVISION, JNL/ALGER
GROWTH DIVISION, JNL/PHOENIX INVESTMENT COUNSEL BALANCED DIVISION, JNL/PHOENIX
INVESTMENT COUNSEL GROWTH DIVISION, PPM AMERICA/JNL HIGH YIELD BOND DIVISION,
PPM AMERICA/JNL MONEY MARKET DIVISION, PPM AMERICA/JNL VALUE EQUITY DIVISION,
SALOMON BROTHERS/JNL GLOBAL BOND DIVISION, SALOMON BROTHERS/JNL U.S. GOVERNMENT
& QUALITY BOND DIVISION, T. ROWE PRICE/JNL ESTABLISHED GROWTH DIVISION, T. ROWE
PRICE/JNL INTERNATIONAL EQUITY INVESTMENT DIVISION AND T. ROWE PRICE/JNL
MID-CAP GROWTH DIVISION THEREOF AT DECEMBER 31, 1995, THE RESULTS OF THEIR
OPERATIONS AND THE CHANGES IN THEIR NET ASSETS FOR THE PERIOD OCTOBER 16, 1995
(COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1995 IN CONFORMITY WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.  THESE FINANCIAL STATEMENTS ARE THE
RESPONSIBILITY OF JACKSON NATIONAL LIFE INSURANCE 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
    

   
FEBRUARY 22, 1996
    


<PAGE>   51
   
                    JACKSON NATIONAL SEPARATE ACCOUNT - I
    

   
                     STATEMENT OF ASSETS AND LIABILITIES
                              December 31, 1995
    

   
<TABLE>
<CAPTION>
                                                                            Division
                                          ------------------------------------------------------------------------------------
                                                                                         JNL/Phoenix   JNL/Phoenix     PPM
                                             JNL         JNL         JNL                 Investment    Investment  America/JNL
                                          Aggressive   Capital     Global    JNL/Alger    Counsel       Counsel    High Yield
                                            Growth     Growth     Equities    Growth      Balanced      Growth        Bond  
                                          ----------  ---------  ----------  ---------   -----------   -----------  ----------
<S>                                       <C>         <C>        <C>         <C>         <C>           <C>          <C>
ASSETS:                                     
   Investments in JNL Series Trust,      
     at market value                     
     (See schedule of investments)         $ 39,018   $ 14,665    $ 50,054   $122,027     $133,052       $  6,042     $  1,011
                                           --------   --------    --------   --------     --------       --------     --------
     Due from Jackson National Life      
       Insurance Company                      1,850      1,750         -         -             -               -            -
                                           --------   --------    --------   --------     --------       --------     --------
            Total assets                     40,868     16,415      50,054    122,027      133,052          6,042        1,011
                                         
LIABILITIES:                             
                                         
   Due to Jackson National Life          
     Insurance Company                            1          1           2          5            5            -             -
                                           --------   --------    --------   --------     --------       --------     --------
NET ASSETS                                 $ 40,867   $ 16,414    $ 50,052   $122,022     $133,047       $  6,042     $  1,011
                                           ========   ========    ========   ========     ========       ========     ========
Number of units outstanding                   4,008      1,587       4,778     12,285       12,871            571          100
                                           ========   ========    ========   ========     ========       ========     ========
Unit value (net assets divided by        
   units outstanding)                      $  10.20   $  10.34    $  10.48   $   9.93     $  10.34       $  10.58     $  10.11
                                           ========   ========    ========   ========     ========       ========     ========
                                         
<CAPTION>                                
                                         
                                                                            Division
                                          ------------------------------------------------------------------------------------
                                                                               Salomon   
                                             PPM         PPM      Salomon     Brothers/      T. Rowe       T. Rowe      T. Rowe
                                          America/     America/   Brothers/      JNL        Price/         Price/       Price/ 
                                            JNL          JNL         JNL     U.S. Gov't.       JNL            JNL          JNL  
                                            Money        Value     Global    & Quality     Established  International  Mid-Cap 
                                            Market      Equity      Bond       Bond          Growth         Equity      Growth 
                                          ----------  ---------  ----------  -----------   -----------   -----------  ----------
<S>                                       <C>         <C>        <C>         <C>           <C>           <C>          <C>
ASSETS:                                     
   Investments in JNL Series Trust,      
     at market value                     
     (See schedule of investments)         $109,323   $ 41,762    $ 32,557   $ 13,023       $109,472       $ 32,488     $ 49,496
                                          ----------  ---------  ----------  -----------   -----------   -----------  ----------
     Due from Jackson National Life                                                                                             
       Insurance Company                     37,260         -          -         -               -               -         3,600
                                          ----------  ---------  ----------  -----------   -----------   -----------  ----------
            Total assets                    146,583     41,762      32,557     13,023        109,472         32,488       53,096
                                                                                                                                
LIABILITIES:                                                                                                                    
                                                                                                                                
   Due to Jackson National Life                                                                                                 
     Insurance Company                            4          2           1          1              4              1            2
                                          ----------  ---------  ----------  -----------   -----------   -----------  ----------
NET ASSETS                                 $146,579   $ 41,760    $ 32,556   $ 13,022       $109,468       $ 32,487     $ 53,094
                                          ==========  =========  ==========  ===========   ===========   ===========  ==========
Number of units outstanding                  14,608      3,944       3,128      1,275         10,564          3,096        5,120
                                          ==========  =========  ==========  ===========   ===========   ===========  ==========
Unit value (net assets divided by                                                                                               
   units outstanding)                      $  10.03   $  10.59    $  10.41   $  10.21       $  10.36       $  10.49     $  10.37
                                          ==========  =========  ==========  ===========   ===========   ===========  ==========
</TABLE>                                  
    
                                          
                                          

   
The accompanying notes are an integral part of the financial statements.
    





<PAGE>   52
   
                     JACKSON NATIONAL SEPARATE ACCOUNT - I
    

   
                            STATEMENT OF OPERATIONS
 For the Period from October 16, 1995 (commencement of operations) to December
                                   31, 1995
    


   
<TABLE>
<CAPTION>         
                                                                                 Divisions
                                            ----------------------------------------------------------------------------------------
                                                                                            JNL/Phoenix    JNL/Phoenix      PPM     
                                             JNL         JNL         JNL                     Investment    Investment   America/JNL 
                                          Aggressive    Capital     Global      JNL/Alger      Counsel      Counsel     High Yield  
                                            Growth      Growth     Equities      Growth       Balanced       Growth         Bond
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
<S>                                     <C>           <C>         <C>        <C>            <C>           <C>          <C>
NET REALIZED GAIN/(LOSS) ON                                                                                                   
  INVESTMENTS:                                                                                                                  
    Proceeds from sales                  $   8,031     $   11     $    23       $   9,873     $   4,945     $     15     $      1 
    Cost of investments sold                 7,815         11          22           9,672         4,950           15            1 
                                         ---------     -------    --------      ---------     ---------     --------     --------
    Net realized gain/(loss) on                                                                                                   
      investments                              216        -             1             201            (5)         -            -   
                                                                                                                                
                                                                                                                                
NET UNREALIZED GAIN                                                                                                             
  ON INVESTMENTS:                                                                                                               
    Unrealized gain/(loss) 
      beginning of year                         -           -           -              -             -            -            -   
    Unrealized gain end of year                620         554         891          2,552         1,640          301           12 
                                         ---------     -------    --------      ---------     ---------     --------     --------
    Net unrealized gain on                                                                                                          
      investments                              620         554         891          2,552         1,640          301           12 
                                         ---------     -------    --------      ---------     ---------     --------     --------
                                                                                                                               
NET GAIN ON INVESTMENTS                        836         554         892          2,753         1,635          301           12 
                                                                                                                               
                                                                                                                               
EXPENSES:                                                                                                                      
    Administrative charge                        3           1           3              6             5            1           - 
    Mortality and expense charge                25           5          22             49            46            7            1 
                                         ---------     -------    --------      ---------     ---------     --------     --------
    Total expenses                              28           6          25             55            51            8            1 
                                         ---------     -------    --------      ---------     ---------     --------     --------
                                                                                                                                
Increase in net assets                                                                                                          
    resulting from operations            $     808     $   548    $    867      $   2,698     $   1,584     $    293     $     11 
                                         =========     =======    ========      =========     =========     ========     ========

<CAPTION>                                
                                                                                 Divisions
                                            ----------------------------------------------------------------------------------------
                                            PPM          PPM       Salomon      Salomon       T. Rowe      T. Rowe        T. Rowe
                                         America/JNL America/JNL Brothers/JNL Brothers/JNL   Price/JNL    Price/JNL      Price/JNL
                                           Money        Value      Global     U.S. Gov't &  Established  International    Mid-Cap
                                           Market       Equity       Bond     Quality Bond    Growth        Equity         Growth
                                         ----------- ----------- ------------ ------------  -----------  -------------   ----------
<S>                                     <C>           <C>         <C>        <C>            <C>           <C>          <C>
NET REALIZED GAIN/(LOSS) ON              
  INVESTMENTS:                                                                                                        
    Proceeds from sales                  $  50,018     $ 1,252    $  1,029      $       9     $   3,109     $     20     $     27
    Cost of investments sold                50,018       1,246       1,017              9         3,105           20           27
                                         ---------     -------    --------      ---------     ---------     --------     --------
    Net realized gain/(loss) on                                                                                       
      investments                              -             6          12            -               4          -            - 
                                                                                                                      
NET UNREALIZED GAIN                                                                                                   
  ON INVESTMENTS:                                                                                                     
    Unrealized gain/(loss) 
      beginning of year                        -           -           -              -             -            -            -  
    Unrealized gain end of year                393       1,099         494            111         3,012          671        1,039
                                         ---------     -------    --------      ---------     ---------     --------     --------
    Net unrealized gain on                                                                                            
      investments                              393       1,099         494            111         3,012          671        1,039
                                         ---------     -------    --------      ---------     ---------     --------     --------
                                                                                                                      
NET GAIN ON INVESTMENTS                        393       1,105         506            111         3,016          671        1,039
                                                                                                                      
                                                                                                                      
EXPENSES:                                                                                                             
    Administrative charge                       11           4           2              1             8            2            3
    Mortality and expense charge                90          34          13              9            68           19           26
                                         ---------     -------    --------      ---------     ---------     --------     --------
    Total expenses                             101          38          15             10            76           21           29
                                         ---------     -------    --------      ---------     ---------     --------     --------
                                                                                                                      
Increase in net assets                                                                                                
    resulting from operations            $     292     $ 1,067    $    491      $     101     $   2,940     $    650     $  1,010
                                         =========     =======    ========      =========     =========     ========     ========
</TABLE>                                        
    
                                         
                                         

   
   The accompanying notes are an integral part of the financial statements.
    

<PAGE>   53
   
                     JACKSON NATIONAL SEPARATE ACCOUNT - I
    

   
                       STATEMENT OF CHANGES IN NET ASSETS
 For the Period from October 16, 1995 (commencement of operations) to December
31, 1995
    


   
<TABLE>
<CAPTION>         
                                                                                 Divisions
                                            ----------------------------------------------------------------------------------------
                                                                                            JNL/Phoenix    JNL/Phoenix      PPM     
                                             JNL         JNL         JNL                     Investment    Investment   America/JNL 
                                          Aggressive    Capital     Global      JNL/Alger      Counsel      Counsel     High Yield  
                                            Growth      Growth     Equities      Growth       Balanced       Growth         Bond
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
<S>                                     <C>           <C>         <C>        <C>            <C>           <C>          <C>
OPERATIONS:
   Net realized gain/(loss) on                                                                                                     
     investments                         $     216     $  -       $      1      $     201     $      (5)    $    -       $    -    
   Net unrealized gain on investments          620        554          891          2,552         1,640          301           12  
   Administrative charge                        (3)        (1)          (3)            (6)           (5)          (1)         -    
   Mortality and expense charge                (25)        (5)         (22)           (49)          (46)          (7)          (1) 
                                         ---------     -------    --------      ---------     ---------     --------     --------  
                                                                                                                                   
INCREASE IN NET ASSETS                                                                                                             
   RESULTING FROM OPERATIONS                   808        548          867          2,698         1,584          293           11  
                                                                                                                                   
NET DEPOSITS INTO SEPARATE ACCOUNT                                                                                                 
  (NOTE 6)                                  40,059     15,866       49,185        119,324       131,463        5,749        1,000  
                                         ---------     -------    --------      ---------     ---------     --------     --------  
                                                                                                                                   
   Increase in net assets                   40,867     16,414       50,052        122,022       133,047        6,042        1,011  
                                                                                                                                   
NET ASSETS:                                                                                                                        
BEGINNING OF PERIOD                            -          -            -              -             -            -            -    
                                         ---------     -------    --------      ---------     ---------     --------     --------  
                                                                                                                                   
END OF PERIOD                            $  40,867     $16,414    $ 50,052      $ 122,022     $ 133,047     $  6,042     $  1,011  
                                         =========     =======    ========      =========     =========     ========     ========  
                                                                                                                                   

<CAPTION>                                
                                                                                 Divisions
                                            ----------------------------------------------------------------------------------------
                                            PPM          PPM       Salomon      Salomon       T. Rowe      T. Rowe        T. Rowe
                                         America/JNL America/JNL Brothers/JNL Brothers/JNL   Price/JNL    Price/JNL      Price/JNL
                                           Money        Value      Global     U.S. Gov't &  Established  International    Mid-Cap
                                           Market       Equity       Bond     Quality Bond    Growth        Equity         Growth
                                         ----------- ----------- ------------ ------------  -----------  -------------   ----------
<S>                                     <C>           <C>         <C>        <C>            <C>           <C>          <C>
OPERATIONS:
   Net realized gain/(loss) on           
     investments                         $     -       $     6    $     12      $     -       $       4     $    -       $    -
                                         ---------     -------    --------      ---------     ---------     --------     --------  
   Net unrealized gain on investments          393       1,099         494            111         3,012          671        1,039
   Administrative charge                       (11)         (4)         (2)            (1)           (8)          (2)          (3)
   Mortality and expense charge                (90)        (34)        (13)            (9)          (68)         (19)         (26)
                                         ---------     -------    --------      ---------     ---------     --------     --------  
                                         
INCREASE IN NET ASSETS                   
    RESULTING FROM OPERATIONS                  292       1,067         491            101         2,940          650        1,010
                                         
NET DEPOSITS INTO SEPARATE ACCOUNT       
  (NOTE 6)                                 146,287      40,693      32,065         12,921       106,528       31,837       52,084
                                         ---------     -------    --------      ---------     ---------     --------     --------  
                                         
   Increase in net assets                  146,579      41,760      32,556         13,022       109,468       32,487       53,094
                                         
NET ASSETS:                              
BEGINNING OF PERIOD                            -           -           -              -             -            -            -
                                         ---------     -------    --------      ---------     ---------     --------     --------  
                                         
END OF PERIOD                            $ 146,579     $41,760    $ 32,556      $  13,022     $ 109,468     $ 32,487     $ 53,094
                                         =========     =======    ========      =========     =========     ========     ========  
                                         

</TABLE>
    

                                         
   
        The accompanying notes are an integral part of the financial statements.
    


<PAGE>   54
   
                     JACKSON NATIONAL SEPARATE ACCOUNT - I
    

   
                            SCHEDULE OF INVESTMENTS
                               December 31, 1995
    


   
<TABLE>
<CAPTION>
                                                                            NUMBER                       MARKET
                                                                           OF SHARES        COST          VALUE
                                                                           ---------   -------------   -----------
<S>                                                                       <C>          <C>             <C>
JNL Series Trust:                                                                                                     
                                                                                                                      
        JNL Aggressive Growth Portfolio                                      3,252     $    38,398     $   39,018     
        JNL Capital Growth Portfolio                                         1,172          14,111         14,665     
        JNL Global Equities Portfolio                                        3,985          49,163         50,054     
        JNL/Alger Growth Portfolio                                          12,401         119,475        122,027     
        JNL/Phoenix Investment Counsel Balanced Portfolio                   12,030         131,412        133,052     
        JNL/Phoenix Investment Counsel Growth Portfolio                        523           5,741          6,042     
        PPM America/JNL High Yield Bond Portfolio                              100             999          1,011     
        PPM America/JNL Money Market Portfolio                             109,322         108,930        109,323     
        PPM America/JNL Value Equity Portfolio                               3,498          40,663         41,762     
        Salomon Brothers/JNL Global Bond Portfolio                           3,217          32,063         32,557     
        Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio        1,263          12,912         13,023     
        T. Rowe Price/JNL Established Growth Portfolio                      10,174         106,460        109,472     
        T. Rowe Price/JNL International Equity Investment Portfolio          3,031          31,817         32,488     
        T. Rowe Price/JNL Mid-Cap Growth Portfolio                           3,995          48,457         49,496     
                                                                                                                      
</TABLE>   
    
           


   
See Accompanying Notes to Financial Statements
    


<PAGE>   55
   
                     JACKSON NATIONAL SEPARATE ACCOUNT - I
                         NOTES TO FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
    

   
NOTE 1 - ORGANIZATION
    

   
Jackson National Life Insurance Company (JNL) established Jackson National
Separate Account - I (the Separate Account) on October 16, 1995, pursuant to
the laws of the State of Michigan.  The Separate Account commenced operations
on October 16, 1995 and is registered under the Investment Company Act of 1940
as a unit investment trust.  The Separate Account receives and invests net
premiums for individual flexible premium variable annuity contracts issued by
JNL.  The contracts can be purchased on a non-tax qualified basis or in
connection with certain plans qualifying for favorable federal income tax
treatment.  The Separate Account contains fourteen Divisions, each of which
invests in the following corresponding portfolios of the JNL Series Trust (the
Funds):
    

   
     JNL Aggressive Growth Portfolio
     JNL Capital Growth Portfolio
     JNL Global Equities Portfolio
     JNL/Alger Growth Portfolio
     JNL/Phoenix Investment Counsel Balanced Portfolio
     JNL/Phoenix Investment Counsel Growth Portfolio
     PPM America/JNL High Yield Bond Portfolio
     PPM America/JNL Money Market Portfolio
     PPM America/JNL Value Equity Portfolio
     Salomon Brothers/JNL Global Bond Portfolio
     Salomon Brothers/JNL U.S. Government & Quality Bond Portfolio
     T. Rowe Price/JNL Established Growth Portfolio
     T. Rowe Price/JNL International Equity Investment Portfolio
     T. Rowe Price/JNL Mid-Cap Growth Portfolio
    


   
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
    

   
The following is a summary of significant accounting policies followed by the
Separate Account in the preparation of its financial statements.  The policies
are in conformity with generally accepted accounting principles.
    

   
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and
    

<PAGE>   56
   
                                    - 2 -
    



   
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.
    


   
     Investments
    

   
The Separate Account's investments in the Funds of the JNL Series Trust are
stated at the net asset values of the respective Funds.  The average cost
method is used in determining the cost of the shares sold on withdrawals by the
Separate Account.  Fund share transactions are recorded on trade date (same as
settlement date).  The Funds follow the accounting practice known as consent
dividending, whereby all of its net investment income and realized gains are
treated as being distributed daily to the Separate Account and are immediately
reinvested in the Funds.
    

   
     Federal Income Taxes
    

   
The operations of the Separate Account are included in the federal income tax
return of JNL, which is taxed as a "life insurance company" under the
provisions of the Internal Revenue Code.  JNL anticipates no tax liability
resulting from the operations of the Separate Account.  Therefore, no federal
income tax has been provided.
    


   
NOTE 3 - POLICY CHARGES
    

   
Charges are deducted from the Separate Account to compensate JNL for providing
the insurance benefits set forth in the contracts, administering the contracts,
distributing the contracts and  assuming certain risks in connection with the
contract.
    

   
     Contract Maintenance Charge
    

   
An annual contract maintenance charge of $35 is charged against each contract
to reimburse JNL for expenses incurred in establishing and maintaining records
relating to the contract.  The contract maintenance charge is assessed on each
anniversary of the contract date that occurs on or prior to the annuity date.
The charge is deducted by redeeming shares.  For the period ended December 31,
1995, no contract maintenance charges were assessed.
    

<PAGE>   57
   
                                    - 3 -
    


   
     Transfer Fee Charge
    

   
A transfer fee of $25 will apply to transfers in excess of 15 transfers in a
contract year.  JNL may waive the transfer fee in connection with
pre-authorized automatic transfer programs, or in those states where a lesser
fee is required.
    

   
This fee will be deducted from contract values which remain in the portfolio(s)
from which the transfers were made.  If such remaining contract value is
insufficient to pay the transfer fee, then the fee will be deducted from
transferred contract values.  For the period ended December 31, 1995, no
transfer fees were assessed.
    

   
     Surrender or Contingent Deferred Sales Charge
    

   
During the first contract years, certain contracts include a provision for a
charge upon  the surrender or partial surrender of the contract.  The amount
assessed under the contract terms, if any, depends upon the cost associated
with distributing the particular contracts.  The amount, if any, depends on a
number of factors, including the amount withdrawn, the contract year of
surrender, or the number and amount of withdrawals in a calendar year. For the
period ended December 31, 1995, no contracts were assessed this charge.
    

   
     Administration Charge
    

   
JNL deducts a daily charge for administrative expenses from the net assets of
the Separate Account equivalent to an annual rate of  0.15%.  The
administration charge is designed to reimburse JNL for administrative expenses
related to the Separate Account and the issuance and maintenance of contracts.
    

   
     Mortality and Expense Charge
    

   
A daily charge is made for the mortality and expense risks assumed by JNL.  JNL
deducts a daily charge from the net assets of the Separate Account equivalent
to an annual rate of  1.25% for the assumption of mortality and expense risks.
The mortality risk assumed by JNL is that the insured may receive benefits
greater than those anticipated by JNL.  The expense risk assumed by JNL is that
the costs of administering the contracts of the Separate Account will exceed
the amount received from the administration charge and the contract maintenance
charge.
    

<PAGE>   58
   
                                    - 4 -
    



   
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
    

   
During the period October 16, 1995 (commencement of operations) to December 31,
1995, purchases and proceeds from sales of investments in the JNL Series Trust
were as follows:
    


   
<TABLE>
<CAPTION>
          Division                                 Purchases  Sales
          ---------------------------------------  ---------  ----- 
          <S>                                      <C>       <C>

          JNL Aggressive Growth                     $46,213    $8,031
          JNL Capital Growth                         14,122        11
          JNL Global Equities                        49,185        23
          JNL/Alger Growth                          129,147     9,873
          JNL/Phoenix Investment Counsel Balanced   136,362     4,945
          JNL/Phoenix Investment Counsel Growth       5,756        15
          PPM America/JNL High Yield Bond             1,000         1
          PPM America/JNL Money Market              158,948    50,018
          PPM America/JNL Value Equity               41,909     1,252
          Salomon Brothers/JNL Global Bond           33,080     1,029
          Salomon Brothers/JNL U.S. Government
           & Quality Bond                            12,921         9
          T. Rowe Price/JNL Established Growth      109,565     3,109
          T. Rowe Price/JNL International Equity
            Investment                               31,837        20
          T. Rowe Price/JNL Mid-Cap Growth           48,484        27
</TABLE>
    



   
NOTE 5 - ACCUMULATION OF UNIT ACTIVITY
    

   
The following is a reconciliation of the accumulation of unit activity for the
period October 16, 1995 (commencement of operations) to December 31, 1995:
    


   
<TABLE>
<CAPTION>
                               Units                          Units
                               Outstanding  Units   Units     Outstanding
                               at 10/16/95  Issued  Redeemed  at 12/31/95
                               -----------  ------  --------  -----------
       <S>                     <C>          <C>     <C>       <C>

       JNL Aggressive Growth   -             4,794     (786)        4,008
       JNL Capital Growth      -             1,587         -        1,587
       JNL Global Equities     -             4,778         -        4,778
       JNL/Alger Growth        -            13,268     (983)       12,285
       JNL/Phoenix Investment

</TABLE>
    

<PAGE>   59
   
                                    - 5 -
    

   
<TABLE>
       <S>                     <C>          <C>     <C>       <C>
        Counsel Balanced       -            13,361     (490)       12,871
       JNL/Phoenix Investment
        Counsel Growth         -               572       (1)          571
       PPM America/JNL High
        Yield Bond             -               100         -          100
       PPM America/JNL Money
        Market                 -            19,600   (4,992)       14,608
       PPM America/JNL Value
        Equity                 -             4,064     (120)        3,944
       Salomon Brothers/JNL
        Global Bond            -             3,226      (98)        3,128
       Salomon Brothers/JNL
        U.S. Government
        & Quality Bond         -             1,275         -        1,275
       T. Rowe Price/JNL
        Established Growth     -            10,866     (302)       10,564
       T. Rowe Price/JNL
        International Equity
        Investment             -             3,096         -        3,096
       T. Rowe Price/JNL
        Mid-Cap Growth         -             5,120         -        5,120

</TABLE>
    


<PAGE>   60
   
                                           JACKSON NATIONAL SEPARATE ACCOUNT - I
    



   
NOTE 6 - RECONCILIATION OF GROSS AND NET DEPOSITS INTO THE SEPARATE ACCOUNT
    

   
Deposits into the Separate Account purchase shares of the JNL Series Trust. Net
deposits represent the amounts available for investment in such shares after
the deduction of applicable policy charges.  The following is a summary of net
deposits made for the period October 16, 1995 (commencement of operations) to
December 31, 1995:
    


   
<TABLE>
<CAPTION>
                                                                                 Divisions
                                            ----------------------------------------------------------------------------------------
                                                                                            JNL/Phoenix    JNL/Phoenix      PPM     
                                             JNL         JNL         JNL                     Investment    Investment   America/JNL 
                                          Aggressive    Capital     Global      JNL/Alger      Counsel      Counsel     High Yield  
                                            Growth      Growth     Equities      Growth       Balanced       Growth         Bond
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
<S>                                     <C>           <C>         <C>        <C>            <C>           <C>          <C>        
Proceeds from units issued               $  48,063     $15,872    $ 49,185      $ 129,147     $ 136,362     $  5,756     $  1,000 
Value of units redeemed                     (8,004)         (6)        -           (9,823)       (4,899)          (7)         -   
Transfers between funds and                                                                                                       
    general account                            -           -           -              -             -            -            -   
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
                                                                                                                                  
Total gross deposits net of                                                                                                       
   transfers to general account             40,059      15,866      49,185        119,324       131,463        5,749        1,000 
                                                                                                                                  
DEDUCTIONS:                                                                                                                       
Policyholder charges                          -           -           -              -             -            -            -    
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
                                                                                                                                  
Total deductions                              -           -           -              -             -            -            -    
                                                                                                                                  
Net deposits from policyholders          $  40,059     $15,866    $ 49,185      $ 119,324     $ 131,463     $  5,749     $  1,000 
                                          ==========    =======    ========     =========   ===========   ============  ============

<CAPTION>                                
                                                                                 Divisions
                                            ----------------------------------------------------------------------------------------
                                            PPM          PPM       Salomon      Salomon       T. Rowe      T. Rowe        T. Rowe
                                         America/JNL America/JNL Brothers/JNL Brothers/JNL   Price/JNL    Price/JNL      Price/JNL
                                           Money        Value      Global     U.S. Gov't &  Established  International    Mid-Cap
                                           Market       Equity       Bond     Quality Bond    Growth        Equity         Growth
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
<S>                                     <C>           <C>         <C>        <C>            <C>           <C>          <C>
Proceeds from units issued               $ 196,208     $41,909    $ 33,080      $  12,921     $ 109,565     $ 31,837     $ 52,084 
Value of units redeemed                    (49,921)     (1,216)     (1,051)           -          (3,037)         -            -   
Transfers between funds and                                                                                                       
    general account                            -           -           -              -             -            -            -   
                                         ---------     -------    --------      ---------     ---------     --------     -------- 
                                                                                                                                  
Total gross deposits net of                                                                                                       
   transfers to general account            146,287      40,693      32,065         12,921       106,528       31,837       52,084 
                                                                                                                                  
                                                                                                                                  
DEDUCTIONS:                                                                                                                       
Policyholder charges                          -           -           -              -             -            -            -    
                                          ----------    -------    --------     ---------   -----------   ------------  ------------
                                                                                                                                  
Total deductions                              -           -           -              -             -            -            -    

                                                                                                                                  
Net deposits from policyholders          $ 146,287     $40,693    $ 32,065      $  12,921     $ 106,528     $ 31,837     $ 52,084   
                                         =========     =======    ========      =========     =========     ========     ======== 

</TABLE>
    
                                         

<PAGE>   61





   
                   JACKSON NATIONAL LIFE INSURANCE COMPANY
    

   
                              AND SUBSIDIARIES
    




   
                        [JACKSON NATIONAL LIFE LOGO]

    
   








    
   
                       CONSOLIDATED FINANCIAL STATEMENTS
    


   
                               DECEMBER 31, 1995
    



<PAGE>   62
   
                       REPORT OF INDEPENDENT ACCOUNTANTS
    


   
To the Board of Directors and Stockholder of
     Jackson National Life Insurance Company
    

   
In our opinion, the accompanying consolidated balance sheet and the related
consolidated statements of operations, of stockholder's equity and of cash
flows present fairly, in all material respects, the financial position of
Jackson National Life Insurance Company and subsidiaries (the "Company") at
December 31, 1995 and 1994, and the results of their operations and their cash
flows for each of the three years in the period ended December 31, 1995, 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 audits.  We conducted our audits 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 audits provide a reasonable basis for the
opinion expressed above.
    

   
As discussed in Note 2 to the financial statements, effective January 1, 1994
the Company adopted Statement of Financial Accounting Standards (SFAS) No. 115,
Accounting for Certain Investments in Debt and Equity Securities.
    


   
/s/  Price Waterhouse LLP
    

   
February 21, 1996
    

<PAGE>   63
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                       CONSOLIDATED FINANCIAL STATEMENTS
    


   
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
    

   
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
                                                                                    DECEMBER 31,
ASSETS                                                                             1995         1994
                                                                               -----------  -----------
<S>                                                                            <C>          <C>
  Fixed maturities held to maturity, at amortized cost
      (market value: 1995, $4,199,528; 1994, $3,125,866)                       $ 4,118,883  $ 3,353,067
  Investments available for sale, at market value:
      Fixed maturities (amortized cost: 1995, $18,248,600; 1994, $16,767,035)   19,252,534   15,774,009
      Equities (cost: 1995, $191,908; 1994, $183,719)                              236,095      193,292
  Short-term investments                                                            64,406      261,702
  Mortgage loans, net of reserves                                                  174,463       37,936
  Policy loans                                                                     527,041      437,690
  Other invested assets                                                             45,567       48,475
                                                                               -----------  -----------
      Total investments                                                         24,418,989   20,106,171

  Cash                                                                              23,682       19,342
  Accrued investment income                                                        327,022      311,553
  Deferred policy acquisition costs                                                891,355    1,686,725
  Fixed assets, at cost less accumulated depreciation                               30,981       22,820
  Reinsurance recoverable                                                            5,143        2,675
  Value of acquired insurance in force                                             196,563      208,942
  Deferred income taxes                                                             63,287      451,192
  Other assets and receivables                                                      37,642       35,794
                                                                               -----------  -----------
      Total assets                                                             $25,994,664  $22,845,214
                                                                               ===========  ===========

LIABILITIES AND STOCKHOLDER'S EQUITY
  LIABILITIES
  Policy reserves and liabilities:
      Reserves for future policy benefits                                      $   490,142  $   446,462
      Deposits on investment contracts                                          22,827,836   20,875,785
      Other policyholder funds                                                      20,215       26,855
      Guaranteed interest contracts                                                100,080
      Claims payable                                                               130,067       94,640
  Payable for securities purchased                                                       -      108,893
  Commissions payable                                                                7,034        9,849
  General expense and administrative fees payable                                   27,548       12,986
  Liability for guaranty fund assessments                                           94,853       71,143
  Income taxes currently payable to Parent                                         102,047       43,375
  Other liabilities                                                                301,607      242,663
                                                                               -----------  -----------
      Total liabilities                                                         24,101,429   21,932,651
                                                                               -----------  -----------
  Contingencies

  STOCKHOLDER'S EQUITY
  Capital stock, $1.15 par value; authorized 50,000 shares;
      outstanding 12,000 shares                                                     13,800       13,800
  Additional paid-in capital                                                       603,982      603,982
  Net unrealized gain(loss) on debt and equity securities available for sale,
      net of tax of $209,937 in 1995 and ($190,447) in 1994                        389,883     (353,692)
  Retained earnings                                                                885,570      648,473
                                                                               -----------  -----------
  Total stockholder's equity                                                     1,893,235      912,563
                                                                               -----------  -----------
      Total liabilities and stockholder's equity                               $25,994,664  $22,845,214
                                                                               ===========  ===========
</TABLE>
    



   
         See accompanying notes to consolidated financial statements.
    

   
    

<PAGE>   64
   
           JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                      CONSOLIDATED FINANCIAL STATEMENTS
    

   
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS)
________________________________________________________________________________
    


   
<TABLE>
<CAPTION>
                                                                     YEAR ENDED DECEMBER 31,                  
                                                                 1995         1994        1993                
                                                               ---------  ----------   ----------             
<S>                                                            <C>        <C>         <C>                     
REVENUES                                                                                                      
  Premiums and other considerations                           $  310,231   $  303,759  $  305,713             
                                                                                                              
  Net investment income                                        1,836,372    1,617,557   1,527,332             
                                                                                                              
  Net realized investment gain (loss)                             84,626      (18,820)    156,996             
                                                                                                              
  Fee income on interest sensitive products:                                                                  
      Mortality charges                                          128,695      115,460     108,981             
      Expense charges                                             20,308       20,349      19,546             
      Surrender charges                                           54,380       42,168      38,830             
                                                              ----------   ----------  ----------             
         Total fee income                                        203,383      177,977     167,357             
                                                                                                              
  Other income                                                        40          214       2,918             
                                                              ----------   ----------  ----------             
                                                                                                              
      Total revenues                                           2,434,652    2,080,687   2,160,316             
                                                              ----------   ----------  ----------             
                                                                                                              
BENEFITS AND EXPENSES                                                                                         
  Death benefits                                                 281,011      247,310     229,351             
  Interest credited on deposit liabilities                     1,379,435    1,266,497   1,311,527             
  Increase in reserves                                            43,680       62,206      62,556             
  Other policyholder benefits                                     17,511       11,496       9,788             
  Commissions                                                    209,694      225,097     192,990             
  General and administrative expenses                            122,658       90,878      85,826             
  Taxes, licenses and fees                                        56,472       45,334      29,902             
  Deferral of policy acquisition costs                          (227,093)    (220,633)   (181,790)            
  Amortization of policy acquisition costs                       142,308      144,506     113,144             
  Amortization of insurance in force                              12,379       11,464      10,469             
                                                              ----------   ----------  ----------             
      Total benefits and expenses                              2,038,055    1,884,155   1,863,763             
                                                              ----------   ----------  ----------             
      Income before income tax expense                           396,597      196,532     296,553             
  Income tax expense                                             140,000       41,450     100,700             
                                                              ----------   ----------  ----------             
                                                                                                              
      Net income                                              $  256,597   $  155,082  $  195,853             
                                                              ==========   ==========  ==========             
</TABLE>
    


   
         See accompanying notes to consolidated financial statements.
    


   
    

<PAGE>   65
   
           JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                      CONSOLIDATED FINANCIAL STATEMENTS
    


   
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
(IN THOUSANDS)
________________________________________________________________________________

    

   
<TABLE>
<CAPTION>
                                                                   DECEMBER 31,
                                                          1995         1994       1993
                                                       ----------   ----------  ---------
<S>                                                    <C>         <C>         <C>        
                                                                     
CAPITAL STOCK, beginning and end of year               $   13,800   $   13,800  $   13,800
                                                       ----------   ----------  ----------
                                                                                 
ADDITIONAL PAID-IN CAPITAL, beginning and end of year     603,982      603,982     603,982
                                                       ----------   ----------  ----------
                                                                                 
UNREALIZED GAIN (LOSS) ON INVESTMENTS                                            
Beginning of year                                        (353,692)      22,027      13,867
  Net effect of adoption of SFAS 115 (See Note 2)               -      321,547           -
  Unrealized gain (loss) on securities                                           
      available for sale net of taxes and                                        
      related deferred acquisition costs                  743,575     (697,266)          -
  Net unrealized gains on equity securities                     -            -       8,160
                                                       ----------   ----------  ----------
End of year                                               389,883     (353,692)     22,027
                                                       ----------   ----------  ----------
                                                                                 
RETAINED EARNINGS                                                                
Beginning of year                                         648,473      512,891     336,538
  Net income                                              256,597      155,082     195,853
  Dividends paid to stockholder                           (19,500)     (19,500)    (19,500)
                                                       ----------   ----------  ----------
End of year                                               885,570      648,473     512,891
                                                       ----------   ----------  ----------
                                                                                 
                                                                                 
                                                                                 
Total stockholder's equity                             $1,893,235   $  912,563  $1,152,700
                                                       ==========   ==========  ==========
</TABLE>
    




   
         See accompanying notes to consolidated financial statements.
    


   
    

<PAGE>   66
   
           JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                      CONSOLIDATED FINANCIAL STATEMENTS
    


   
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS)
________________________________________________________________________________
    


   
<TABLE>
<CAPTION>
                                                                  YEAR ENDED DECEMBER 31,
                                                              1995          1994         1993
                                                           -----------    ----------   ---------
  <S>                                                     <C>           <C>           <C>           
  CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                              $   256,597  $   155,082   $  195,853
   Adjustments to reconcile net income to net cash
    provided by operating activities:
     Net realized investment (gains) losses                    (84,626)      18,820     (156,996)
     Interest credited on deposit liabilities                1,379,435    1,266,497    1,311,527
     Other charges                                            (203,383)    (177,977)    (167,357)
     Amortization of discount and premium on investments       (32,261)     (32,411)     (33,348)
     Change in:
        Deferred income taxes                                     (364)       6,105      (30,128)
        Accrued investment income                              (15,469)     (12,634)     (13,871)
        Deferred policy acquisition costs                      (84,785)     (76,127)     (68,646)
        Value of acquired insurance in force                    12,379       11,464       10,469
        Income taxes currently payable to Parent                58,672      (52,997)     (23,656)
        Other assets and liabilities, net                      (46,171)      74,612          264
                                                           -----------  -----------  -----------

     NET CASH PROVIDED BY OPERATING ACTIVITIES               1,240,024    1,180,434    1,024,111
                                                           -----------  -----------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash from investments sold or matured:
  Sales of:
     Fixed maturities and equities available for sale        2,994,755    4,438,513            -
     Fixed maturities held to maturity                               -            -    2,146,719
  Principal repayments, maturities, calls and redemptions
     available for sale                                        257,793    1,725,628            -
  Principal repayments, maturities, calls and redemptions
     held to maturity                                          289,266      211,878    4,195,573
  Purchases of:
     Fixed maturities and equities available for sale       (4,782,081)  (6,947,423)           -
     Fixed maturities held to maturity                      (1,050,039)  (1,666,194)  (8,575,620)
  Short-term investments, net                                  197,296     (244,472)     121,152
                                                           -----------  -----------  -----------

     NET CASH USED IN INVESTING ACTIVITIES                  (2,093,010)  (2,482,070)  (2,112,176)
                                                           -----------  -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Policyholders account balances:
     Deposits                                                2,589,863    2,491,506    1,974,791
     Withdrawals                                            (1,713,037)  (1,159,070)    (881,795)
  Payment of cash dividends to Parent                          (19,500)     (19,500)     (19,500)
                                                           -----------  -----------  -----------

     NET CASH PROVIDED BY FINANCING ACTIVITIES                 857,326    1,312,936    1,073,496
                                                           -----------  -----------  -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS             4,340       11,300      (14,569)

CASH AND CASH EQUIVALENTS, beginning of period                  19,342        8,042       22,611
                                                           -----------  -----------  -----------
CASH AND CASH EQUIVALENTS, end of period                   $    23,682   $   19,342  $     8,042
                                                           ===========  ===========  ===========
</TABLE>
    





   
         See accompanying notes to consolidated financial statements.
    


   
    

<PAGE>   67
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    


   
1. DESCRIPTION OF THE BUSINESS
    

   
   Jackson National Life Insurance Company, Inc. ("the Company" or "JNL") is a
   wholly-owned subsidiary of Brooke Life Insurance Company ("Brooke Life" or
   the "Parent") and is ultimately a wholly-owned subsidiary of Prudential
   Corporation, plc ("Prudential"), London, England.  JNL is licensed to sell
   individual annuity products and individual life insurance products in 48
   states and the District of Columbia.
    

   
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    

   
   PRINCIPLES OF CONSOLIDATION
   Effective December 31, 1995, Jackson National Life Insurance Company of
   Michigan ("JNL-M"), a former wholly-owned subsidiary, was merged into its
   parent, Jackson National Life Insurance Company.
    

   
   The accompanying consolidated financial statements include JNL and its
   wholly-owned subsidiaries, Chrissy Corporation, an advertising agency;
   Jackson National Financial Services, Inc., an investment advisor and broker
   dealer, and Jackson National Life Distributors, Inc., a limited broker
   dealer.  The Company also consolidates Jackson National Compania De Seguros
   De Vida S.A. ("Argentina"), a Life Insurance Company of which the Company
   retains 90% of the common stock.  All significant intercompany accounts and
   transactions have been eliminated.
    

   
   BASIS OF PRESENTATION
   The accompanying consolidated financial statements have been prepared in
   accordance with generally accepted accounting principles ("GAAP") which
   differ in some respects from statutory accounting practices required by
   regulatory authorities for life insurance companies.
    

   
   USE OF ESTIMATES
   The preparation of the financial statements in conformity with generally
   accepted accounting principles requires management to make estimates and     
   assumptions that affect the reported amounts of assets and liabilities and
   disclosures of contingent assets and liabilities at the date of the
   financial statements and the reported amounts of revenue and expense during
   the reporting period.  Actual results may differ from those estimates.
    
   
   
   INVESTMENTS
   The Company adopted Statement of Financial Accounting Standards ("SFAS") No.
   115, "Accounting for Certain Investments in Debt and Equity Securities," as
   of January 1, 1994.  The cumulative effect of implementing SFAS 115 was to
   report appreciation on available for sale fixed maturities of $887,174, less
   the effect on related deferred policy acquisition costs of $(392,486) and
   deferred income taxes of $(173,141), for a net increase to stockholder's
   equity of $321,547.
    

   
   Fixed maturities, (including bonds, redeemable preferred stocks, and
   mortgage-backed securities) which the Company has the positive intent and
   ability to hold to maturity are classified as held to maturity and are
   reported at amortized cost.  Fixed maturities classified as available for
   sale and all equity securities (common and nonredeemable preferred stocks)
   are carried at estimated market value, with changes in unrealized gains and
   losses recorded directly to stockholder's equity, net of applicable income
   taxes and related deferred acquisition costs.  As of December 31, 1995, the
   Company had no trading portfolio.
    

   
   Fixed maturities, whether available for sale or held to maturity, are
   reduced to estimated net realizable value for declines in market value
   considered to be other than temporary. Gains or losses on the sale of
   securities are computed on the specific identification method.  Fixed
   maturity purchase premiums and discounts are amortized to call or maturity
   dates.
    


   
    
<PAGE>   68
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    



   
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
    

   
   Mortgage loans and policy loans are carried at the unpaid principal balance
   less unamortized discounts and net of valuation reserves.  Real estate owned
   is carried at cost less allowances for impairment in value.  Limited
   partnership investments are carried using the equity method of accounting.
   Short-term investments are stated at cost which approximates market value.
    

   
   DERIVATIVES
   The Company hedges certain portions of its exposure to fluctuations in
   interest rate risks by entering into interest rate swap and put-swaption
   transactions.  With the use of put-swaptions, JNL obtains the right, but not
   the obligation to require the writers to pay JNL the present value of a ten
   year swap.  As consideration for this right, JNL pays a premium.  The net
   differential to be paid or received on interest rate swaps is recognized
   over the lives of the agreements and is classified as investment income in
   the statement of operations.  The premium on the put-swaptions is amortized
   ratably into investment income over the term of the options.  Both interest
   rate swaps and put-swaptions are held for purposes other than trading and
   hedge fixed maturity available for sale securities, and are carried at fair
   value with the change in fair value reflected in stockholder's equity.  The
   fair value is based on estimates received from financial institutions.
   Realized gain (loss) from the settlement or termination of the interest rate
   swaps are deferred and amortized over the life of the specific hedged assets
   as an adjustment to the yield.  Realized gain (loss) from the settlement of
   the put-swaptions is included in realized gain (loss) in the statement of
   operations in the period of settlement.
    

   
   DEFERRED POLICY ACQUISITION COSTS
   Certain costs of acquiring new business, principally commissions and certain
   costs associated with policy issue and underwriting which vary with and are
   primarily related to the production of new business, have been capitalized
   as deferred policy acquisition costs.  Deferred policy acquisition costs are
   increased by interest thereon and amortized in proportion to anticipated
   premium revenues for traditional life policies and in proportion to
   estimated gross profits for annuities and interest-sensitive life products.
   As certain debt and equity securities are carried at aggregate fair value,
   an adjustment is made to deferred policy acquisition costs equal to the
   change in amortization that would have occurred if such securities had been
   sold at their stated aggregate fair value and the proceeds reinvested at
   current yields.  At December 31, 1995 and 1994, deferred acquisition costs
   have been decreased by $440.8 million and increased $439.3 million,
   respectively, to reflect this change.
    

   
   VALUE OF ACQUIRED INSURANCE IN FORCE AT ACQUISITION DATE
   The value of acquired insurance in force at acquisition date ("VOB")
   represents the present value of anticipated profits of the business in force
   on November 25, 1986 (the date the Company was acquired by Prudential) net
   of amortization.  The VOB is being amortized in proportion to anticipated
   premium revenues for traditional life insurance contracts and estimated
   gross profits for annuities and interest-sensitive life products over a
   period of 20 years.
    

   
   FEDERAL INCOME TAXES
   The Company provides deferred income taxes on the temporary differences
   between the tax and financial statement basis of assets and liabilities as
   required by SFAS No. 109, "Accounting for Income Taxes".
    

   
   JNL files a consolidated federal income tax return with Brooke Life.  The
   non-life insurance company subsidiaries file separate federal income tax
   returns.  Income tax expense is calculated on a separate company basis.
    


   
    

<PAGE>   69
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    



   
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
    

   
   POLICY RESERVES AND LIABILITIES
   For traditional life insurance contracts, reserves for future policy
   benefits are determined using the net level premium method and assumptions
   as to mortality, interest, policy lapsation and expenses.  Mortality
   assumptions, based upon the 1975-1980 Basic Select and Ultimate tables,
   range from 59% to 90% depending on underwriting classification and policy
   duration.  Interest rate assumptions range from 6.0% to 9.5%.  Lapse and
   expense assumptions are based on Company experience.
    

   
   For the Company's universal life-type contracts, reserves approximate the
   policyholder's accumulation account.  For deferred annuity and other
   investment contracts, the reserve is the policyholder's account value.
    

   
   SEPARATE ACCOUNTS
   The Company established Jackson National Separate Account - I (the "Separate
   Account") which commenced operations on October 16, 1995, and is registered
   under the Investment Company Act of 1940 as a unit investment trust.  The
   Separate Account receives and invests net premiums for individual flexible
   premium annuity contracts issued by JNL.  Separate account assets and
   separate account liabilities total $.8 million and are included in other
   assets and liabilities at December 31, 1995.  Investment income and gains
   and losses of the Separate Accounts accrue directly to the contractholders
   and are, therefore, not included in the Company's consolidated statement of
   operations.
    

   
   REVENUE AND EXPENSE RECOGNITION
   Premiums for traditional life insurance are reported as revenues when due.
   Benefits, claims and expenses are associated with earned revenues in order
   to recognize profit over the lives of the contracts.  This association is
   accomplished by provisions for future policy benefits and the deferral and
   amortization of deferred policy acquisition costs.
    

   
   Deposits on interest sensitive life products are credited to the
   policyholder account.  Revenues consist of amounts assessed against the
   policyholder's account value, including mortality, contract initiation and
   administration (expense charges) and surrender charges.  Surrender benefits
   are treated as repayments of the policyholder account.  Death benefits, net
   of the policyholder account, are recognized as an expense when incurred.
   Expenses are associated with gross profit in order to recognize profit over
   the life of the business.  This is accomplished by deferral and amortization
   of policy acquisition costs.
    

   
   Deposits on investment contracts, principally deferred annuities, are
   treated as policyholder deposits and excluded from revenue.  Revenues
   consist primarily of the investment income earned on those deposits.
   Benefit payments for such contracts are treated as reductions to the
   policyholder account.  Expenses consist primarily of the interest credited
   to the policyholder deposit.
    

   
3. FAIR VALUE OF FINANCIAL INSTRUMENTS
    

   
   The following summarizes the basis used by the Company in estimating its
   fair value disclosures for financial instruments:
    

   
   FIXED MATURITIES AND EQUITY SECURITIES - Fair values are based upon quoted
   market prices, if available.  For securities not actively traded, fair
   values are estimated using independent pricing services or analytically
   determined values.
    

   
   POLICY LOANS - The carrying amount reported in the balance sheet
   approximates fair value since policy loans reduce the amount payable at
   death or at surrender of the contract.
    

   
   SHORT-TERM INVESTMENTS, CASH AND ACCRUED INVESTMENT INCOME - The carrying
   amounts reported in the balance sheet approximate fair value.
    



   
    

<PAGE>   70
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    


   
3. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)
    

   
   SEPARATE ACCOUNT ASSETS - Separate account assets are carried at the market
   value of the underlying securities.
    

   
   ANNUITY RESERVES (without mortality features) - Fair values for immediate
   and deferred annuities are derived by discounting the future estimated cash
   flows using current interest rates with similar maturities.
   At December 31, 1995, the carrying value and fair value of such annuities
   approximated $18.2 billion and $17.2 billion, respectively, and $16.4
   billion and $15.4 billion, respectively, at December 31, 1994.
    

   
   GUARANTEED INTEREST CONTRACTS RESERVES - Fair value is based on the
   present value of future cash flows at current pricing rates.
    

   
   LIABILITY FOR GUARANTEE FUND ASSESSMENTS - It is not practical to estimate   
   the fair value of liabilities for guarantee fund assessments.  Such
   liabilities are based on current estimates of the Company's portion of the
   undiscounted liability at the time of a known insolvency.
    

   
   OTHER LIABILITIES - Payables for securities purchased, commissions   
   payable, general expense and administrative fees payable and other
   liabilities represent net transactions of a short term nature for which the
   carrying amounts reported in the balance sheet approximate fair value.
    

   
   SEPARATE ACCOUNT LIABILITIES - Fair value of contracts in the accumulation   
   phase are based on net surrender values.  Fair values of contracts in the
   payout phase are based on the present value of future cash flows at assumed
   investment rates.  At December 31,1995, all separate account contracts are
   in the accumulation phase.
    

   
4. INVESTMENTS
    

   
   Investments are comprised primarily of fixed-interest securities, primarily
   publicly-traded industrial, mortgage-backed, utility and government bonds.
   The Company generates the vast majority of its premium from
   interest-sensitive individual annuity and life insurance products, on which
   it has committed to pay a declared rate of interest.  The Company's strategy
   of investing in fixed-interest securities aims to ensure matching of the
   asset yield with the interest-sensitive insurance liabilities and to earn a
   stable return on its investments.
    

   
   The Company's holdings of non-investment grade bonds at December 31, 1995
   constituted approximately 9% of total assets.  Approximately 2% of its total
   assets are invested in common stocks or commercial real estate and
   mortgages. Approximately 69% of the Company's investment grade bonds have
   Standard and Poors ("S&P") ratings of A and higher, while 19% is rated BBB.
   The fixed-interest portfolio has a weighted average S&P rating of AA-.
    

   
   The amortized cost and estimated market value of fixed maturity investments
   held to maturity are as follows (dollars in thousands):
    


   
<TABLE>
<CAPTION>
                                                      GROSS         GROSS      ESTIMATED  
                                        AMORTIZED   UNREALIZED   UNREALIZED      MARKET   
   DECEMBER 31, 1995                      COST        GAINS         LOSSES       VALUE    
                                        ----------  ----------  -------------  ---------- 
   <S>                                  <C>         <C>         <C>            <C>        
   U.S. Government agencies                                                               
    and foreign governments             $  134,893  $      839         $2,233  $  133,499 
   Corporate securities                    809,925      15,108          3,029     822,005 
   Collateralized mortgage obligations   3,174,065      76,362          6,403   3,244,024 
                                        ----------  ----------        -------  ---------- 
                                                                                          
   Total                                $4,118,883     $92,309        $11,665  $4,199,528 
                                        ==========  ==========        =======  ========== 
</TABLE>
    


   
    

<PAGE>   71
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    



   
4. INVESTMENTS (CONTINUED)
    


   
<TABLE>
<CAPTION>
                                                                GROSS         GROSS         ESTIMATED
                                                   AMORTIZED  UNREALIZED    UNREALIZED       MARKET
   DECEMBER 31, 1994                                 COST       GAINS         LOSSES          VALUE
                                                  ----------- ----------    ----------     -----------
   <S>                                            <C>          <C>          <C>            <C>
   U.S. Government agencies                          
     and foreign governments                       $1,239,102     $  -        $144,697       $1,094,405
   Corporate securities                               670,835       17           3,511          667,341
   Collateralized mortgage obligations              1,443,130        7          79,017        1,364,120
                                                   ----------      ---        --------       ----------

   Total                                           $3,353,067      $24        $227,225       $3,125,866
                                                   ==========      ===        ========       ==========
   
</TABLE>
    


   
The amortized cost and estimated market value of fixed maturity investments 
available for sale are as follows (dollars in thousands):
    

   
<TABLE>
<CAPTION>
                                                             GROSS              GROSS           ESTIMATED
                                         AMORTIZED        UNREALIZED         UNREALIZED          MARKET 
   DECEMBER 31, 1995                        COST             GAINS             LOSSES            VALUE
                                         ---------    -------------------   ------------   ----------------
   <S>                                  <C>          <C>                   <C>            <C>    
   U.S. Treasury securities             $   354,506                $3,136        $     2        $   357,640
   U.S. Government agencies
    and foreign governments               1,543,055                68,360            940          1,610,475
   Public utilities                         954,297                59,767          5,441          1,008,623
   Corporate securities                   9,013,057               699,519         27,386          9,685,190
   Collateralized mortgage obligations    6,383,685               239,881         32,960          6,590,606
                                        -----------            ----------        -------        -----------
     
   Total                                $18,248,600            $1,070,663        $66,729        $19,252,534
                                        ===========            ==========        =======        ===========
<CAPTION>
   
                                                            GROSS              GROSS          ESTIMATED
                                         AMORTIZED       UNREALIZED          UNREALIZED         MARKET
   DECEMBER 31, 1994                        COST            GAINS              LOSSES            VALUE
                                        -----------  --------------------  -------------  -----------------
   <S>                                  <C>          <C>                   <C>            <C>    
   U.S. Treasury securities              $  368,134              $      6     $    8,089       $    360,051
   U.S. Government agencies
     and foreign governments              1,703,266                 7,147         90,628          1,619,785
   Public utilities                         947,588                17,993         41,769            923,812
   Corporate securities                   8,317,602                96,893        466,939          7,947,556
   Collateralized mortgage obligations    5,430,445                12,750        520,390        $ 4,922,805
                                        -----------              --------     ----------        -----------
        
   Total                                $16,767,035              $134,789     $1,127,815        $15,774,009
                                        ===========              ========     ==========        ===========
</TABLE>
    
     
     
     
   
   Gross unrealized gains pertaining to equity securities at December 31, 1995
   were $51.2 million and $19.7 million, respectively.  Gross unrealized losses
   at December 31, 1995 and 1994 were $7.0 million and $10.1 million,
   respectively. 
    
     


   
    

<PAGE>   72
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    



   
4. INVESTMENTS (CONTINUED)
    

   
   The amortized cost and estimated market value of fixed maturities at 
   December 31, 1995, by contractual maturity, are shown below.  Expected
   maturities will differ from contractual maturities because borrowers may
   have the right to call or prepay obligations with or without call or
   prepayment penalties.
    
   
   
   Fixed maturities held to maturity (dollars in thousands):
    
   
   
<TABLE>
<CAPTION>
                                                                   AMORTIZED        ESTIMATED
                                                                      COST         MARKET VALUE
                                                                -----------------  ------------
   <S>                                                          <C>                <C>
   
   Due after 1 year through 5 years                                    $  393,820    $  405,900
   Due after 5 years through 10 years                                     416,105       416,104
   Mortgage-backed securities                                           3,308,958     3,377,524
                                                                       ----------    ----------
   
   Total                                                               $4,118,883    $4,199,528
                                                                       ==========    ==========
</TABLE>
    

   
   Fixed maturities available for sale (dollars in thousands):
    

   
<TABLE>
<CAPTION>
                                                                    AMORTIZED        ESTIMATED 
                                                                       COST        MARKET VALUE
                                                                -----------------  ------------
   <S>                                                          <C>                <C>         
   Due within 1 year or less                                          $   187,355   $   188,750
   Due after 1 year through 5 years                                     2,708,297     2,915,856
   Due after 5 years through 10 years                                   3,836,308     4,055,629
   Due after 10 years through 20 years                                  1,255,804     1,386,772
   Due after 20 years                                                   2,578,495     2,770,406
   Mortgage-backed securities                                           7,682,341     7,935,121
                                                                       ----------   -----------
                                                                                               
   Total                                                              $18,248,600   $19,252,534
                                                                      ===========   ===========
</TABLE>
    


   
   Discounts and premiums on collateralized mortgage obligations are amortized
   over the estimated redemption period using the effective interest method.
   Yields which are used to calculate premium/discount amortization are
   adjusted periodically for prepayments.
    

   
   At December 31, 1995, fixed maturities with a carrying value of $5.3 million
   were on deposit with regulatory authorities as required by law in various
   states in which the insurance operations conduct business.
    

   
   At December 31, 1995, New American Holdings with a carrying value and
   estimated market value of $192.8 million and $218.7 million, respectively,
   was the only entity (other than the United States government agencies and
   authorities) in which the Company's investment exceeded ten percent of
   stockholder's equity.  The security was rated a Class 2 by the National
   Association of Insurance Commissioners ("NAIC") and a "BBB" by S&P.
    

   
   The Company held two types of derivative instruments at December 31, 1995;
   interest rate swaps and put-swaptions.  At December 31, 1995, the notional
   amount of the interest rate swaps outstanding was $1.0 billion, with
   unexpired terms of these agreements varying from 32 to 111 months and
   interest rates ranging from 6.25% to 8.59%.  The fair value of the swap
   agreements was $68.0 million.  During 1995, the Company recorded $14.4
   million in net interest income from swaps.  The termination of swaps in 1994
   resulted in a $18.3 million loss (net of tax) which was to be amortized over
   the remaining life of the underlying assets being hedged.  During 1995, the
   Company recognized $5.6 million in losses relating to those swaps.
    



   
    

<PAGE>   73
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    



   
5. INVESTMENT INCOME AND REALIZED GAINS AND LOSSES
    

   
   The Company entered into six put-swaption agreements during 1995.  These
   swaptions were entered into as a hedge against significant upward
   fluctuations in interest rates.  The notional amount of these securities at
   December 31, 1995 was $12 billion, with a fair value of $7.3 million.  The
   unexpired terms of these agreements vary from 23 to 47 months.
    

   
   The Company has entered into a securities lending agreement whereby large
   blocks of securities are loaned to third parties, primarily major brokerage
   firms.  As of December 31, 1995 the estimated fair value of loaned
   securities was $572.6 million.  The Company's policy requires a minimum of
   102 percent of the fair value of the loaned securities as collateral,
   calculated on a daily basis.  The collateral and related amounts due to
   counterparties are not reflected in the consolidated balance sheet.  To
   further minimize the credit risks related to this program, the financial
   condition of counterparties are monitored on a regular basis.
    

   
   Major categories of investment income are summarized below (dollars in
   thousands):
    


   
<TABLE>
<CAPTION>
                                     YEAR ENDED DECEMBER 31,
                                  1995        1994         1993
                               ----------  ----------  -----------  
   <S>                         <C>         <C>         <C>
                                           
   Fixed maturities            $1,766,654  $1,550,367  $1,458,918
   Other investment income         82,614      79,802      78,974
                               ----------  ----------  ----------
     Total investment income    1,849,268   1,630,169   1,537,892
   Less - investment expenses      12,896      12,612      10,560
                               ----------  ----------  ----------
                                           
    Net investment income      $1,836,372  $1,617,557  $1,527,332
                               ==========  ==========  ==========
</TABLE>
    



   
   Proceeds from principal payments and maturities of fixed maturities held to
   maturity were $.3 billion and $.2 billion in 1995 and 1994, respectively.    
   Proceeds from sales, principal payments and maturities of fixed maturities
   available for sale were $3.3 billion and $6.2 billion in 1995 and 1994,
   respectively.
    

   
   Net realized investment gains (losses) are as follows (dollars in
   thousands):
    


   
<TABLE>
<CAPTION>
                                     YEAR ENDED DECEMBER 31,
                                 1995        1994          1993
                               --------  ------------  ------------
   <S>                         <C>       <C>           <C>
   Sales of fixed maturities
     Gross gains               $101,682     $ 131,620      $197,008
     Gross losses               (27,897)     (200,135)      (18,851)
   Sales of equity securities
     Gross gains                 47,883        58,270        18,192
     Gross losses                (1,576)       (6,082)       (2,947)
   Impairment losses            (29,824)         (123)      (35,276)
   Other invested assets, net    (5,642)       (2,370)       (1,130)
                               --------  ------------  ------------
   
     Total                     $ 84,626     $ (18,820)     $156,996
                               ========  ============  ============
</TABLE>
    









   
    

<PAGE>   74
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________

    


   
6. VALUE OF ACQUIRED INSURANCE IN FORCE
    

   
   The VOB was determined by using assumptions as to interest, persistency and
   mortality.  Profits were then discounted to arrive at the value of the
   insurance in force.
    

   
   The balances and amortization of insurance in force are summarized as
   follows (dollars in thousands):
    




   
<TABLE>
<CAPTION>
                                                                      YEAR ENDED DECEMBER 31,
                                                                       1995          1994
                                                                   -----------    -----------
<S>                                                                <C>             <C>
   Balance, beginning of year                                      $   208,942     $   220,406
   Amortization, net of interest                                       (12,379)        (11,464)
                                                                   -----------     -----------
                                                                                 
   Balance, end of year                                            $   196,563      $  208,942
                                                                   ===========      ==========
</TABLE>
    

   
   The VOB is expected to be amortized as follows (dollars in thousands):

    

   
<TABLE>
                             <S>                                               <C>
                              1996                                             $      13,000
                              1997                                                    14,000
                              1998                                                    15,000
                              1999                                                    16,000
                              Thereafter                                             138,563
                                                                               -------------
                                                                                  
                                                                               $     196,563
                                                                               =============
</TABLE>
    



   
7.   POLICY RESERVES AND LIABILITIES
    

   
     A summary of the components of policy reserves and liabilities is as
     follows (dollars in thousands):
    


   
<TABLE>
<CAPTION>
                                                    YEAR ENDED DECEMBER 31,  
                                                      1995            1994     
                                                 -------------   -------------- 
     <S>                                         <C>              <C>  
     Term life and other traditional life        $     490,142    $     446,462 
     Interest sensitive life                         4,323,805        4,091,546 
     Deferred and immediate annuities               18,504,031       16,784,239 
     Guaranteed interest contracts                     100,080                - 
                                                 -------------    ------------- 
       Subtotal                                     23,418,058       21,322,247 
     Claims payable and other policyholder                                    
       funds                                           150,282          121,495 
                                                 -------------    ------------- 
                                                                              
       Total                                     $  23,568,340    $  21,443,742 
                                                 =============    ============= 
</TABLE>
    



   
8.   REINSURANCE
    

   
     The Company assumes and cedes reinsurance from and to other insurance
     companies in order to limit losses from large exposures; however, if the
     reinsurer is unable to meet its obligations, the originating issuer of the
     coverage assumes the liability.  The maximum amount of life insurance risk
     retained by the Company on any one life is generally $1.5 million.  Amounts
     not retained are ceded to other companies on a yearly renewable-term or a
     coinsurance basis.
    



   
    

<PAGE>   75
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    


   
8.   REINSURANCE (CONTINUED)
    

   
     Policy reserves and liabilities are stated net of reinsurance ceded to
     other companies.  At December 31, 1995 and 1994, reserves were reduced by
     approximately $163.2 million and $157.7 million, respectively, of which
     $18.5 million and $16.9 million, respectively, was reinsured with
     Mercantile and General Reinsurance Company, a wholly-owned subsidiary of
     Prudential. Additionally $91.6 million and $93.0 million was reinsured
     through Brooke Life at December 31, 1995 and 1994, respectively.
    

   
     Premiums and other considerations are stated net of premiums on    
     reinsurance assumed from and ceded to other companies.  Net premiums ceded
     during 1995 and 1994 approximated $62.5 million and $65.0 million,
     respectively.
    

   
9.   FEDERAL INCOME TAXES
    

   
     The components of the provision for federal income taxes as computed in
     accordance with SFAS 109 are as follows (dollars in thousands):
    




   
<TABLE>
<CAPTION>
                                                      YEAR ENDED DECEMBER 31,
                                                 1995          1994           1993
                                              -----------    ----------    ------------
     <S>                                      <C>            <C>           <C>
      Current tax expense                     $  152,480     $  26,835     $   135,545
      Deferred tax expense (benefit)             (12,480)       14,615         (34,845)
                                              ----------     ---------     -----------
      Provision for income taxes              $  140,000     $  41,450     $   100,700
                                              ==========     =========     ===========
</TABLE>
    

   
The federal income tax provisions differ from the amounts determined by
multiplying pre-tax income by the statutory federal income tax rate of 35% for
1995, 1994 and 1993 as follows (dollars in thousands):
    



   
<TABLE>
<CAPTION>

                                                      YEAR ENDED DECEMBER 31,
                                                  1995          1994           1993
                                              ------------   ----------    ------------
    <S>                                       <C>            <C>            <C>
      Income taxes at statutory rate          $   138,809    $  68,786     $    103,794
      Increase (reduction) in taxes
       resulting from:
         Release of accrued Federal tax due
         to IRS settlement                             -       (27,000)              -
      Enacted rate changes                             -           -              (7,178)
      Other                                         1,191         (336)            4,084
                                              ------------   ----------    -------------

      Provision for income taxes              $   140,000    $   41,450    $     100,700
                                              ============   ==========    =============

      Effective tax rate                            35.3%         21.1%            34.0%
                                                   ======        ======           ======
</TABLE>
    

  
   
      The Company made income tax payments of $116.1 million in 1995, $79.9
      million in 1994 and $159.2 million in 1993.
    




   
    

<PAGE>   76
   
            JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 1995
________________________________________________________________________________
    


   
9.   FEDERAL INCOME TAXES (CONTINUED)
    

   
     The significant temporary differences included in the deferred tax asset
     as of December 31, 1995 and 1994 are as follows (dollars in thousands):
    


   
<TABLE>
<CAPTION>
                                                                               DECEMBER 31,       
                                                                        1995                1994     
                                                                     ----------        --------------  
     <S>                                                             <C>              <C>         
     GROSS DEFERRED TAX ASSET                                                                     
     Policy reserves and other insurance items                       $  669,247        $     644,999  
     Difference between financial reporting and                                                   
       the tax basis of:                                                                            
       Assets acquired                                                   17,483               17,597  
       Insolvency fund assessments                                       32,483               23,251  
       Other, net                                                        12,688               11,086  
     Net unrealized losses on available for sale securities                   -              344,209  
                                                                     ----------        -------------  
         Total deferred tax asset                                    $  731,901        $   1,041,142  
                                                                     ----------        -------------  
                                                                                                  
     GROSS DEFERRED TAX LIABILITY                                                                 
     Deferred policy acquisition costs                                 (216,636)            (507,155)  
     Difference between financial reporting and the tax                                           
      basis of the value of the insurance in-force                      (68,797)             (69,296)  
     Difference between financial reporting and                                                   
      the tax basis of other assets                                      (7,468)              (9,444)  
     Net unrealized gains on available for sale securities             (364,116)                  -  
     Other, net                                                         (11,597)              (4,055)  
                                                                     ----------        -------------  
         Total deferred tax liability                                  (668,614)            (589,950)  
                                                                     ----------        -------------  
                                                                                                  
         Net deferred tax asset                                      $   63,287        $     451,192  
                                                                     ==========        =============  
</TABLE>      
    



   
      In 1994, the Company reached settlements with the Internal Revenue Service
      ("IRS") under which the IRS agreed to changes in the Company's federal
      income tax liability for the tax years through 1990. Based on these and
      subsequent settlements, federal income tax returns are closed to further
      assessment through 1991.
    


   
10.   CONTINGENCIES
    

   
      The Company and its subsidiaries are involved in litigation arising in the
      ordinary course of business.  It is the opinion of management that the
      ultimate disposition of such litigation will not have a material adverse
      affect on the Company's financial condition or results of operations.
    

   
      During 1994, the Company undertook an initiative to improve the quality of
      service to policyholders.  The Company expects to incur approximately $31
      million in costs associated with this project, of which $19 million was
      incurred through 1995.  The remaining expense is expected to be incurred
      in 1996.
    


   
    

<PAGE>   77
   
           JACKSON NATIONAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    

   
DECEMBER 31, A
    





   
11.   STOCKHOLDER'S EQUITY
    

   
      DIVIDEND RESTRICTIONS
      Under Michigan State Insurance Law, dividends on capital stock can only be
      distributed out of earned surplus.  Furthermore, without the prior
      approval of the Commissioner, dividends cannot be declared or distributed
      which exceed the greater of 10% of the Company's statutory surplus as of 
      December 31 next preceding or the Company's statutory net gain from
      operations for such period.  On January 1, 1996 the maximum amount of
      dividends that can be paid by the Company without prior approval of the
      Commissioner under this limitation approximated $156.6 million.
    

   
      Statutory capital and surplus of the Company at December 31, 1995 and 1994
      was $1,196.1 million and $1,050.8 million, respectively.  Statutory net
      income of the Company was $156.6 million, $125.3 million and $149.2
      million in 1995, 1994 and 1993, respectively.
    

   
12.   RELATED PARTY TRANSACTIONS
    

   
      The Company's investment portfolio is managed by PPM America ("PPM"), a
      registered investment advisor and a wholly-owned subsidiary of Prudential.
      The Company paid $6.8 million, $5.8 million and $4.9 million to PPM for
      investment advisory services during 1995, 1994, and 1993, respectively.
    
 
   
      On August 26, 1987, Brooke Life issued a ten-year $180 million note to
      Prudential as part of an exchange whereby 100% of the common stock of JNL
      was transferred to Brooke Life.  On December 28, 1988, Brooke Life issued
      an additional ten-year $20 million note to Prudential.  Each note contains
      repayment options and accrues interest at 12% per annum.  On October 31,
      1991, Brooke Life issued an additional $200 million note to Prudential
      Finance BV, a Prudential subsidiary, due October 31, 2001 with interest of
      9.75% payable on October 31 of each year.  In 1995, 1994, and 1993, JNL
      made dividend payments to Brooke Life of $19.5 million to pay down the
      accrued interest on the notes.  At December 31, 1995, the amount
      outstanding on these notes was as follows (in millions):
    


   
<TABLE>
       <S>                                     <C>
       Principal                               $ 400
       Accrued interest                          155
                                               -----
                            
       Total                                   $ 555
                                               =====
</TABLE>
    



   
13.  BENEFIT PLANS
    

   
     The Company has a defined contribution plan covering substantially all
     employees.  To be eligible, an employee must have attained the age of 21
     and completed at least 1,000 hours of service in a 12-month period.  The
     Company's annual contributions, as declared by the board of directors, are
     based on a percentage of covered compensation paid to participating
     employees during the year.  The Company expensed $2.3 million related to
     this plan during 1995 and $2.2 million during both 1994 and 1993.
    



   
    


<PAGE>   78
PART C.  OTHER INFORMATION

Item 24.  Financial Statements and Exhibits

     (a) Financial Statements:
         (1)  Financial statements and schedules included in
              Part A:

              Condensed Financial Information

         (2)  Financial statements and schedules included in
              Part B:

              Jackson National Separate Account - I:
                   Report of Independent Accountants
                   Statement of Assets and Liabilities as of
                        December 31, 1995
                   Statement of Operations for the Period from
                        October 16, 1995 (commencement of
                        operations) to December 31, 1995
                   Statement of Changes in Net Assets for the
                        period from October 16, 1995
                        (commencement of operations) to December
                        31, 1995
                   Schedule of Investments as of December 31,
                        1995
                   Notes to Financial Statements

               Jackson National Life Insurance Company:
                    Report of Independent Accountants
                    Consolidated Balance Sheet at December 31,
                         1995 and 1994
                    Consolidated Statement of Operations for the
                         years ended December 31, 1995, 1994 and
                         1993
                    Consolidated Statement of Stockholder's
                         Equity for the years ended December 31,
                         1995, 1994 and 1993
                    Consolidated Statement of Cash flows for the
                         years ended December 31, 1995, 1994 and
                         1993
                    Notes to Consolidated Financial Statements

   
    




                                       1

<PAGE>   79
   
Item 24.(b)  Exhibits
    


Exhibit
No.         Description                                        
- ----        -----------                                        
                                                               
                                                               
1.          Resolution of Depositor's Board of Directors       
            authorizing the establishment of the Registrant,   
            attached hereto (refiling by EDGAR)                
                                                               
2.          Not Applicable                                     
                                                               
3.          Distribution Agreement dated May 24,1995, attached 
            hereto (refiling by EDGAR)                         
                                                               
4.          Form of the Perspective Fixed and Variable Annuity 
            Contract, attached hereto (refiling by EDGAR)      
                                                               
5.          Form of the Perspective Fixed and Variable Annuity 
            Application, attached hereto (refiling by EDGAR)   
                                                               
6.a.        Articles of Incorporation of Depositor,  attached  
            hereto (refiling by EDGAR)                         
                                                               
  b.        Bylaws of Depositor, attached hereto (refiling by  
            EDGAR)                                             
                                                               
7.          Not Applicable                                     
                                                               
8.          Not Applicable                                     
                                                               
9.          Opinion and Consent of Counsel, attached hereto    
                                                               
10.         Consent of Independent Accountants, attached       
            hereto                                             
                                                               
11.         Not Applicable                                     
                                                               
12.         Not Applicable                                     
                                                               
13.         Schedule of Computation of Performance, attached   
            hereto                                             
                                                               

27.         Financial Data Schedule, attached hereto           
                                                               
   
    

                                       2

<PAGE>   80
   
Item 25.    Directors and Officers of the Depositor            
    


<TABLE>
<CAPTION>
            Name and Principal             Positions and Offices
            Business Address               with Depositor
        -----------------------------  --------------------------------
        <S>                            <C>
            Carla J. Beatty            Vice President - Telephone
            5901 Executive Drive       Service Center
            Lansing, Michigan  48911

            Alan R. Cook               Senior Vice President -
            5901 Executive Drive       Operations
            Lansing, Michigan 48911

            Peter Davis                Chairman and Director
            142 Holborn Bars
            London, England  EC1N 2NH

            Connie J. Dalton           Vice President -
            5901 Executive Drive       Variable Annuity
            Lansing, Michigan 48911    Administration

            Gerald W. Decius           Vice President - Life Client
            5901 Executive Drive       Services
            Lansing, Michigan 48911

            Lisa C. Drake              Vice President & Actuary
            5901 Executive Drive
            Lansing, Michigan 48911

            Jay A. Elliott             Senior Vice President -
            5901 Executive Drive       National Sales Manager
            Lansing, Michigan  48911

            Robert A. Fritts, CPA      Vice President &
            5901 Executive Drive       Controller - Financial
            Lansing, Michigan 48911        Operations

            William A. Gray            Senior Vice President -
            5901 Executive Drive       Corporate Communications
            Lansing, Michigan 48911

            Alan C. Hahn               Senior Vice President -
            5901 Executive Drive       Deal Direct Marketing
            Lansing, Michigan  48911

            Andrew B. Hopping          Senior Vice President -
            5901 Executive Drive       Reengineering


</TABLE>

                                       3

<PAGE>   81


<TABLE>
            <S>                        <C>
            Lansing, Michigan 48911

            Victor Gallo               Vice President -
            5901 Executive Drive       Group Pension
            Lansing, Michigan 48911

            Terry R. Johns             Vice President -
            5901 Executive Drive       Systems & Programming
            Lansing, Michigan 48911

            Brion S. Johnson           Vice President -
            5901 Executive Drive       Financial Operations
            Lansing, Michigan 48911

            Larry C. Jordan, FLMI      Vice President and Asst.
            5901 Executive Drive       Secretary
            Lansing, Michigan 48911

            John A. Knutson            Senior Vice President, Chief
            5901 Executive Drive       Operating Officer and Director
            Lansing, Michigan 48911

            Everett W. Kunzelman       Vice President - Underwriting
            5901 Executive Drive
            Lansing, Michigan 48911

            David B. LeRoux            Senior Vice President -
            5901 Executive Drive       Guaranteed Investment
            Lansing, Michigan 48911    Contracts

            Lynn W. Lopes              Vice President - Guaranteed
            5901 Executive Drive       Investment Contracts
            Lansing, Michigan 48911

            Clark P. Manning           Senior Vice President -
            5901 Executive Drive       Chief Actuary
            Lansing, Michigan 48911

            Thomas J. Meyer            Secretary, Vice President
            5901 Executive Drive       and General Counsel
            Lansing, Michigan 48911
    
            J. George Napoles          Senior Vice President and
            5901 Executive Drive       Chief Information Officer
            Lansing, Michigan 48911

</TABLE>


                                       4

<PAGE>   82


<TABLE>
          <S>                      <C>
          Paul (Pete) B. Pheffer   Senior Vice President, Chief
          5901 Executive Drive     Financial Officer and
          Lansing, Michigan 48911  Treasurer

          Lee Pledger              Vice President - Planning &
          5901 Executive Drive     Human Resources
          Lansing, Michigan 48911

          Bradley J. Powell        Vice President - Institutional
          5901 Executive Drive     Marketing Group
          Lansing, Michigan 48911
 
          Robert P. Saltzman       President, Chief Executive 
          5901 Executive Drive     Officer and Director
          Lansing, Michigan 48911

          Robert M. Tucker         Vice President - Technical
          5901 Executive Drive     Support
          Lansing, Michigan 48911
</TABLE>


Item 26.  Persons Controlled by or Under Common Control with the
     Depositor or Registrant.


<TABLE>
<CAPTION>
                     State of           Control/
     Company         Organization       Ownership       Principal Business
     --------------  -------------   -----------------  -------------------
     <S>             <C>             <C>                <C>
     Brooke          Delaware           100%            Organized for the
     Holdings, Inc.                     Prudential      purpose of acquiring
                                        Corporation     holding,
                                        Holdings        encumbering,
                                        Limited         transferring, or
                                                        otherwise disposing
                                                        of shares, bonds,
                                                        and other evidences
                                                        of indebtedness,
                                                        securities, and
                                                        contracts of other
                                                        persons,
                                                        associations,
                                                        corporations,
                                                        domestic or foreign
                                                        and to form or
                                                        acquire the control
                                                        of other
</TABLE>


                                       5

<PAGE>   83

   
<TABLE>
<S>                  <C>                <C>             <C>
                                                        corporations.

     Brooke Life     Michigan           100% Brooke     Life Insurance
     Insurance                          Holdings, Inc.
     Company

     Bucyrus-Erie    Delaware           42% Jackson     Steel Company
                                        National Life
                                        Insurance
                                        Company

     Carolina        North              95% Jackson     Steel Company
     Steel           Carolina           National Life
                                        Insurance
                                        Company

     Chrissy         Delaware           100% Jackson    Advertising Agency
     Corporation                        National Life
                                        Insurance
                                        Company

     First Jackson   New York           100% Jackson    Life Insurance
     National Life                      National Life
     Insurance                          Insurance
     Company                            Company

     Jackson         Massachusetts      Common Law      Investment Company
     National                           Trust with
     Capital                            Contractual
     Management                         association
     Funds                              with Jackson
                                        National Life
                                        Insurance
                                        Company

     Jackson         Argentina          90% Jackson     Life Insurance
     National                           National
     Compania de                        Life Insurance
     Sequiros de                        Company
     VIDA S.A.

     Jackson         Delaware           100% Jackson    Investment Adviser
     National                           National Life   and Broker/Dealer
     Financial                          Insurance
     Services, Inc.                     Company


</TABLE>
    



                                       6

<PAGE>   84

   
<TABLE>
<S>                  <C>                <C>             <C>
     Jackson         Delaware           100% Jackson    Advertising/
     National                           National Life   Marketing
     Life                               Insurance       Corporation
     Distributors,                      Company
     Inc.

     Jackson         Michigan           100% Brooke     Life Insurance
     National                           Life
     Life Insurance                     Insurance
     Company                            Company

     JNL Series      Massachusetts      Common Law      Investment Company
     Trust                              Trust with
                                        contractual
                                        association
                                        with Jackson
                                        National Life
                                        Insurance
                                        Company

     Prudential      United             100%            Holding Company
     Corporation     Kingdom            Prudential
     Holdings                           Corporation
     Limited                            PLC

     Prudential      United             Publicly        Financial
     Corporation     Kingdom            Traded          Institution
     PLC

     Peebles, Inc.   Virginia           20% Jackson     Manufacturing
                                        National Life   Corporation
                                        Insurance
                                        Company
</TABLE>
    


Item 27.  Number of Contract Owners as of March 31, 1996.

          922

Item 28.  Indemnification

     Provision is made in the Company's Amended By-Laws for indemnification by
the Company of any person who was or is a party or is threatened to be made a
party to civil, criminal, administrative or investigative action by reason of
the fact that

                                       7

<PAGE>   85

such person is or was a director, officer or employee of the Company, against
expenses, including attorneys' fees, judgments, fines and amounts paid in
settlement actually and reasonably incurred by such person in connection with
such action, suit or proceedings, to the extent and under the circumstances
permitted by the General Corporation Law of the State of Michigan.

     Insofar as indemnification for liabilities arising under the Securities
Act of 1933 ("Act") may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise, the
Company has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Act and is, therefore, unenforceable.  In the event that a claim for
indemnification against liabilities (other than the payment by the Company of
expenses incurred or paid by a director, officer or controlling person of the
Company in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the
securities being registered, the Company will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.

Item 29.  Principal Underwriter

     (a) Jackson National Financial Services, Inc. acts as general distributor
for the Jackson National Separate Account - I.

     Jackson National Financial Services, Inc. also acts as investment adviser
and principal underwriter for the Jackson National Capital Management Funds,
and investment adviser for the JNL Series Trust.

     (b) Directors and Officers of Jackson National Financial Services, Inc.:



<TABLE>
<CAPTION>
                 Name and                Positions and Offices
                 Business Address        with Underwriter
                 ------------------  --------------------------
                 <S>                 <C>
                 Larry C. Jordan     Chief Operating Officer,

</TABLE>



                                      8
<PAGE>   86

   
<TABLE>
                <S>                      <C>
                 5901 Executive Dr.      Treasurer and Director
                 Lansing, MI  48911

                 John A. Knutson         President, Chief
                 5901 Executive Dr.      Financial Officer
                 Lansing, MI  48911      and Director

                 Thomas J. Meyer         Secretary, Chief
                 5901 Executive Dr.      Legal Officer and
                 Lansing, MI  48911      Director


        (c)

</TABLE>
    


   
<TABLE>
<CAPTION>
                      Net Underwriting     Compensation on
Name of Principal     Discounts and         Redemption or         Brokerage
Underwriter           Commissions           Annuitization        Commissions           Compensation
- --------------------  --------------------  --------------------  --------------------  ------------
<S>                   <C>                   <C>                   <C>                   <C>
Jackson
National Financial
Services, Inc.        Not Applicable        Not Applicable        Not Applicable        Not Applicable
</TABLE>
    


Item 30.  Location of Accounts and Records

          Jackson National Life Insurance Company
          5901 Executive Drive
          Lansing, Michigan 48911

Item 31.  Management Services

          Not Applicable

Item 32.  Undertakings

          Not Applicable




                                       9
<PAGE>   87




                                   SIGNATURES

     As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant certifies that it meets the requirements of Securities
Act Rule 485(b) for effectiveness of this Post-Effective Amendment to its
Registration Statement, and has caused this Post-Effective Amendment to be
signed on its behalf, in the City of Lansing, and State of Michigan, on this
26th day of April, 1996.

                         Jackson National Separate Account - I
                         ------------------------------------------
                         (Registrant)

                         Jackson National Life Insurance Company
                         ------------------------------------------
                         (Depositor)

     
                         By:    /s/  Thomas J. Meyer
                            ---------------------------------------
                              Thomas J. Meyer
                              Vice President and General Counsel

     As required by the Securities Act of 1933, this Post-Effective Amendment
to the Registration Statement has been signed by the following persons in the
capacities indicated.


<TABLE>
     <S>                                         <C>
     /s/  Peter Davis by Thomas J. Meyer         April 26, 1996
     ------------------------------------------  -------------------------
     Peter Davis, Chairman and Director

     /s/  John A. Knutson by Thomas J. Meyer     April 26, 1996
     ------------------------------------------  -------------------------
     John A. Knutson, Senior Vice President,
     Chief Operating Officer and Director

     /s/  Paul B. Pheffer by Thomas J. Meyer     April 26, 1996
     ------------------------------------------  -------------------------
     Paul B. Pheffer, Senior Vice President,
     Chief Financial Officer and Treasurer

     /s/  Robert P. Saltzman by Thomas J. Meyer  April 26, 1996
     ------------------------------------------  -------------------------
     Robert P. Saltzman, President, Chief
     Executive Officer and Director

     /s/ Thomas J. Meyer                         April 26, 1996
     ------------------------------------------  -------------------------
     Thomas J. Meyer, Attorney-in-Fact
</TABLE>




<PAGE>   88
                               POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as directors
and/or officers of JACKSON NATIONAL LIFE INSURANCE COMPANY, a Michigan
corporation, which has filed or will file with the Securities and Exchange
Commission under the provisions of the Securities Act of 1933 and Investment
Company Act of 1940, as amended, various Registration Statements and amendments
thereto for the registration under said Acts of the sale of Individual Deferred
Fixed and Variable Annuity Contracts in connection with the Jackson National
Separate Account - I and other separate accounts of Jackson National Life
Insurance Company, hereby constitute and appoint John A. Knutson, Thomas J.
Meyer and Robert P. Saltzman, his attorney, with full power of substitution and
resubstitution, for and in his name, place and stead, in any and all capacities
to approve and sign such Registration Statements and any and all amendments
thereto, with power where appropriate to affix the corporate seal of said
corporation thereto and to attest with seal and to file the same, with all
exhibits thereto and other granting unto said attorneys, each of them, full
power and authority to do and perform all and every act and thing requisite to
all intents and purposes as he might or could do in person, hereby ratifying
and confirming that which said attorneys, or any of them, may lawfully do or
cause to be done by virtue hereof.  This instrument may be executed in one or
more counterparts.

IN WITNESS WHEREOF, the undersigned have herewith set their names as of the
dates set forth below.


/s/  Peter Davis                         August 11, 1995
- ---------------------------------------  ------------------
Peter Davis, Chairman and Director       Date

/s/  John A. Knutson                     August 15, 1995
- ---------------------------------------  ------------------
John A. Knutson, Senior Vice President,  Date
Chief Operating Officer and Director
                                         
/s/  Pete Pheffer                        August 15, 1995
- ---------------------------------------  ------------------
Paul (Pete) B. Pheffer, Senior Vice      Date
President, Chief Financial Officer and
Treasurer

/s/  Robert P. Saltzman                  August 15, 1995
- ---------------------------------------  ------------------
Robert P. Saltzman, President, Chief     Date
Executive Officer and Director


<PAGE>   89
                                  EXHIBIT LIST



Exhibit
Number   Description
- -------  -----------

  1.     Resolution of Depositor's Board of Directors                      
         authorizing the establishment of the Registrant,                  
         attached hereto as EX-99.B1-resol                                 
                                                                           
  3.     Distribution Agreement dated May 24, 1995, attached                
         hereto as EX-99.B3-dist                                           
                                                                           
  4.     Form of the Perspective Fixed and Variable Annuity                
         Contract, attached hereto as EX-99.B4-policy                      
                                                                           
  5.     Form of the Perspective Fixed and Variable Annuity                
         Application, attached hereto as EX-99.B5-app                      
                                                                           
6.a.     Articles of Incorporation of Depositor, attached                 
         hereto as EX-99.B6-art                                           
                                                                           
6.b.     Bylaws of Depositor, attached hereto as                          
         EX-99.B6-bylaws                                                  
                                                                           
  9.     Opinion and Consent of Counsel, attached hereto as EX-99.B9-blazz 
                                                                           
 10.     Consent of Independent Accountants, attached                      
         hereto as EX-99.B10-pricew                                        
                                                                           
 13.     Schedule of Computation of Performance, attached                  
         hereto as EX-99.B13-perf                                          
                                                                           
 27.     Financial Data Schedule, attached hereto as                       
         EX-27.B14-fds                                                     


<PAGE>   1
                                                       EXHIBIT-99.B1-resol

                            CERTIFICATE OF SECRETARY
                    JACKSON NATIONAL LIFE INSURANCE COMPANY


     I, Larry C. Jordan, do hereby certify that I am the duly elected and
qualified Assistant Secretary of Jackson National Life Insurance Company, a
Michigan insurance corporation ("Corporation') and am the keeper of its records
and corporate seal and that the following is a true and complete copy of a
resolution unanimously adopted at a meeting of the Board of Directors of said
Corporation, duly convened and held in accordance with the By-Laws of said
Corporation, at which meeting a majority and quorum of the Board of Directors
were present, on the 14th day of June, 1993:

             RESOLVED: That the Company take all steps necessary
             to develop and offer for sale variable annuities and
             that the Company's officers are directed to take all
             steps, including establishment of the necessary
             separate accounts, necessary to do so in full
             compliance with all federal and state laws.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate
seal of said Corporation this 12th day of July, 1993.



     (Corporate Seal)

                                            /s/ Larry C. Jordan
                                            -----------------------
                                            Larry C. Jordan
                                            Assistant Secretary


<PAGE>   1
                                                            EXHIBIT-99.B3-dist

                         GENERAL DISTRIBUTOR AGREEMENT


     IT IS HEREBY AGREED by and between JACKSON NATIONAL LIFE INSURANCE COMPANY
("COMPANY") and JACKSON NATIONAL FINANCIAL SERVICES, INC. ("JNFSI") as follows:

                                       I

     COMPANY proposes to issue and sell certain annuity contracts ("Annuity
Contracts") to the public through JNFSI.  JNFSI agrees to provide sales
services subject to the terms and conditions hereof.  Annuity Contracts to be
sold hereunder are the Jackson National Variable and Fixed Annuity Contracts
and such other contracts as may hereafter be agreed upon by the parties.  Such
Annuity Contracts will be issued by COMPANY and the Jackson National Separate
Account - I (the "Separate Account").  JNFSI is registered as a broker-dealer
under the Securities Exchange Act of 1934, as amended, and is a member of the
National Association of Securities Dealers, Inc.

                                       II

     COMPANY grants to JNFSI the right, during the term of this Agreement,
subject to registration requirements of the relevant Federal securities laws,
to be the distributor of Annuity Contracts referred to above.  JNFSI will
distribute Annuity Contracts at a price to be set by COMPANY and will make such
distributions to purchasers permitted to buy such Annuity Contracts as
specified in the prospectus.

                                     III


                                      1
<PAGE>   2


     JNFSI is hereby authorized, subject to disapproval by COMPANY, to enter
into separate agreements with broker-dealers registered under the Securities
Exchange Act of 1934, as amended, and members of the National Association of
Securities Dealers, Inc., to participate in the distribution of Annuity
Contracts as JNFSI shall deem appropriate.  COMPANY reserves the right to
review and accept or reject all applications for Annuity Contracts.  All
premium payments for such Annuity Contracts shall be sent to the office
designated for such by COMPANY.

                                       IV

     COMPANY shall furnish JNFSI with copies of such information, financial
statements and other documents requested by JNFSI for use in connection with
the distribution of Annuity Contracts, as may be deemed by reasonable by
COMPANY.  COMPANY shall provide to JNFSI such number of copies of the currently
effective prospectus as JNFSI and COMPANY shall agree upon from time to time.

                                       V

     JNFSI is not authorized to give any information, or to make any
representations concerning the Separate Account or COMPANY, other than as
contained in the current registration statement or prospectus filed with the
Securities and Exchange Commission or such sales literature as may be
authorized by COMPANY.

                                       VI

     Both parties to this Agreement agree to keep necessary records as
indicated by applicable state and federal law and to render the necessary
assistance to one another for the accurate and timely preparation of such
records.


                                      2

<PAGE>   3


                                      VII

     Commissions payable with respect to Annuity Contracts shall be paid by
COMPANY, and nothing herein shall obligate JNFSI to pay any commissions or
other remuneration to the registered representatives selling the Annuity
Contracts or to reimburse such registered representatives for expenses incurred
by them, nor shall JNFSI have any interest whatsoever in any commissions or
other remuneration payable to registered representative by COMPANY.

                                      VIII

     Each party (the "Indemnifying Party") hereby agrees to release, indemnify,
and hold harmless the other party, its officers, directors, employees, agents,
servants, predecessors or successors from any claims or liability arising out
of the breach of this Agreement by the Indemnifying Party or arising out of
acts or omissions of the Indemnifying Party or its agents, appointees,
independent contractors or employees not authorized by this Agreement,
including the violation of the federal and state securities laws and ERISA or
arising from acts of misrepresentation or false declaration concerning the
products sold hereunder.

                                       IX

     This Agreement shall remain in effect unless terminated as hereinafter
provided.  This Agreement shall automatically terminate in the event of its
assignment by JNFSI.  This Agreement may at any time be terminated by either
party hereto upon not less than 60 days' written notice to the other party.


                                      3
<PAGE>   4


                                       X

     All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been given on the
date of service if served personally on the party to whom notice is to be
given, or on the date of mailing if sent by first class mail, registered or
certified, postage prepaid and properly addressed as follows:

     TO COMPANY:
     Jackson National Life Insurance Company
     5901 Executive Drive
     Lansing, Michigan  48911

     Attention:  John A. Knutson

     TO JNFSI:
     Jackson National Financial Services, Inc.
     5901 Executive Drive
     Lansing, Michigan  48911

     Attention:  Larry C. Jordan

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
signed on their behalf by their respective officers thereunto duly authorized.

     This Agreement is effective as of the 24th day of May, 1995.

                              JACKSON NATIONAL LIFE INSURANCE COMPANY

                              By: /s/  John A. Knutson
                                  ---------------------
                                    John A. Knutson
                              Its: Sr. Vice President & Chief Operating Officer


                              JACKSON NATIONAL FINANCIAL SERVICES, INC.

                              By:  /s/  Larry C. Jordan
                                   ----------------------
                                      Larry C. Jordan
                              Its: Chief Operating Officer




                                      4

<PAGE>   1
                                                          EXHIBIT-99B.4-policy


      JACKSON NATIONAL LIFE INSURANCE COMPANY ("the Company" or Jackson
      National) agrees to provide benefits to the Contract Owner subject to the
      provisions set forth in this Contract and in consideration of the
      application and Premiums We receive.

      THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE
      ACCUMULATION AND ANNUITY PERIODS IS NOT GUARANTEED AND MAY INCREASE OR
      DECREASE BASED UPON THE INVESTMENT EXPERIENCE OF THE FUND UNDERLYING THE
      SEPARATE ACCOUNT.  INFORMATION ON VARIABLE BENEFITS MAY BE FOUND ON PAGE
      8-13.

      THE GUARANTEED ACCOUNT OPTIONS ARE SUBJECT TO AN INTEREST RATE ADJUSTMENT
      WHICH MAY INCREASE OR DECREASE AMOUNTS PAYABLE OR WITHDRAWN, BUT THE
      GUARANTEED ACCOUNT CONTRACT VALUE WILL NEVER DECREASE TO LESS THAN THE
      GUARANTEED ACCOUNT MINIMUM VALUE.

                  NOTICE OF TWENTY-DAY RIGHT TO EXAMINE POLICY

      YOU MAY RETURN THIS CONTRACT TO THE SELLING AGENT OR JACKSON NATIONAL
      WITHIN 20 DAYS AFTER YOU RECEIVE IT.  THE COMPANY WILL REFUND THE
      CONTRACT VALUE FOR THE VALUATION PERIOD IN WHICH THE CONTRACT IS
      RECEIVED.  UPON SUCH REFUND, THE CONTRACT SHALL BE VOID.


             THIS IS A LEGAL CONTRACT BETWEEN YOU AND THE COMPANY.
                         READ YOUR CONTRACT CAREFULLY.

                  EXECUTED FOR THE COMPANY ON THE ISSUE DATE.



INDIVIDUAL DEFERRED VARIABLE AND FIXED         THIS CONTRACT IS SIGNED AT THE
ANNUITY CONTRACT (FLEXIBLE PREMIUM).           HOME OFFICE OF JACKSON
MONTHLY INCOME AT MATURITY.                    NATIONAL LIFE, LANSING,
DEATH BENEFIT PRIOR TO MATURITY.               MICHIGAN
NON-PARTICIPATING.

                                               /S/ ROBERT P. SALTZMAN
                                               PRESIDENT

                                               /S/  THOMAS J. MEYER
                                               SECRETARY

<PAGE>   2


                               TABLE OF CONTENTS


                                                                  PAGE

CONTRACT DATA PAGE ..............................................    2

PREMIUM ALLOCATION ..............................................    3

DEFINITIONS .....................................................    4

GENERAL PROVISIONS ..............................................    6

CHARGES AND DEDUCTIONS ..........................................    7

ACCUMULATION PROVISIONS .........................................    8

TRANSFER PROVISIONS..............................................    9

WITHDRAWAL PROVISIONS ...........................................   10

DEATH BENEFIT PROVISIONS ........................................   11

ANNUITY PROVISIONS ..............................................   12

ANNUITY OPTIONS .................................................   12

TABLE OF ANNUITY OPTIONS ........................................   14

<PAGE>   3


                               CONTRACT DATA PAGE

Contract Number:

Annuitant:

Owner:

Issue Date:                                      Issue State:
                                               
Annuity Date:                                    First Premium:

Annual Contract Maintenance Charge: $35.00  Subsequent Guaranteed Rate:   3%

Separate Account:                       Jackson National Separate Account - I

Expense Risk Charge:                    On an annual basis, this charge equals
                                        0.23% of the daily net asset value of
                                        the Portfolios.

Administration Charge:                  On an annual basis, this charge equals
                                        0.15% of the daily net asset value of
                                        the Portfolios.

Mortality Risk Charge:                  On an annual basis, this charge equals
                                        0.9% of the daily net asset value of
                                        the Portfolios.

Enhanced Death Benefit Charge:          On an annual basis, the charge equals
                                        0.12% of the daily net asset value of
                                        the Portfolios.


<TABLE>
<CAPTION>
Contingent Deferred Sales Charge:        CONTRIBUTION YEAR        PERCENT
                                         -----------------        -------
                                                <S>                 <C>
                                                 0                   7
                                                 1                   6
                                                 2                   5
                                                 3                   4
                                                 4                   3
                                                 5                   2
                                                 6                   1
                                                 7                   0

</TABLE>

  Home Offices:
  Jackson National Life Insurance Company       Annuity Service Center:
  5901 Executive Drive                          P.O. Box 30389
  Lansing, Michigan 48911                       Lansing, Michigan 48909-7889
  517/394-3400                                  800/766-4683



All payments and values in the Guaranteed Account are subject to an Interest
Rate Adjustment, the calculation of which may result in an increase or decrease
in amounts payable.  In no event will the values be less than the Guaranteed
Account Minimum Value.


<PAGE>   4


                               PREMIUM ALLOCATION



     PORTFOLIO OPTIONS
     ______________________________________________________________










     GUARANTEED ACCOUNT OPTIONS
     ______________________________________________________________


<PAGE>   5


                                  DEFINITIONS

ACCUMULATION UNIT.  A unit of measurement used to compute the Contract Value
prior to the Annuity Date.

ANNUITY SERVICE CENTER.  The address and telephone number are as specified on
the Contract Data Page.  The Company will notify Contract Owners of any change
in address or telephone number.

ANNUITANT.  The natural person on whose life the annuity benefit for this
Contract is based.

ANNUITY DATE.  The date on which annuity payments are to start.  The latest
possible Annuity date will be set by us.

ANNUITY UNIT.  A unit of measurement used to compute the amount of Variable
Annuity payments.

BENEFICIARY(IES).  The person(s) designated to receive any benefits under a
contract upon the death of the Annuitant.

CODE.  The Internal Revenue Code of 1986, as amended, or as the same may be
amended or superseded.

CONTRACT VALUE.  The sum of  the Separate Account Contract Value and the
Guaranteed Account Contract Value.

CONTRACT YEAR.  A year starting from the Issue Date in one calendar year and
ending on the Issue Date in the succeeding calendar year.

CONTRIBUTION YEAR.  A year beginning from the date of the payment of a Premium
in one calendar year and ending on the anniversary of such date in the
succeeding calendar year.  The Contribution Year in which a Premium is made is
"Contribution Year 0."  Subsequent Contribution Years are successively numbered
beginning with Contribution Year 1.

CURRENT INTEREST RATE.  The rate of interest established by the Company for a
specified Guaranteed Period.  In no event will the Current Interest Rate be
less than the Subsequent Guaranteed Rate shown on the Contract Data Page.

DEFERRED ANNUITY.  An annuity contract under which the start of annuity
payments is deferred to a future date.

FIXED ANNUITY.  A series of periodic payments made during the annuity period to
a payee under the Contract that are fixed in amount.

FUND.  A collective term used to represent an investment entity which may be
selected to be an underlying investment of the Contract.

GUARANTEED ACCOUNT.  Contract Values allocated to one or more of the Guaranteed
Account Options under the Contract.

GUARANTEED ACCOUNT CONTRACT VALUE.  The sum of all amounts credited to the
Guaranteed Account Options under the Contract, less any amounts canceled or
withdrawn for charges, deductions, surrenders or transfers.

GUARANTEED ACCOUNT MINIMUM VALUE.  Premiums, less premium tax, and transfers
allocated to the Guaranteed Account, less Withdrawal Amounts and associated
Withdrawal Charges from the Guaranteed Account, accumulated at 3%, less any
Withdrawal Charge or Premium Tax due.

GUARANTEED ACCOUNT OPTION.  A Premium or transfer allocated to a subaccount of
the Guaranteed Account for a specific Guaranteed Period and associated
expiration date.

GUARANTEED PERIOD.  A period for which the Current Interest Rate is credited.
The available Guaranteed Periods are listed on the Contract application.

HOME OFFICE.  The address and telephone number are as specified on the Contract
Data Page.

INTEREST RATE ADJUSTMENT.  An adjustment applied, with certain exceptions, to
amounts withdrawn, transferred or annuitized from the Guaranteed Account prior
to the end of the applicable Guaranteed Account Option.

ISSUE DATE.  The date Your Contract is issued, shown on the Contract Data Page.

<PAGE>   6


LATEST ANNUITY DATE.  The date on which the Owner attains age 90 under a
Non-Qualified Plan Contract, or age 70 1/2 under a Qualified Plan Contract,
unless otherwise approved by the Company.

NONQUALIFIED PLAN.  A retirement plan which does not receive favorable tax
treatment under Section 401, 403, 408 or 457 of the Internal Revenue Code.

OWNER ("YOU," "YOUR").  The person or entity named in the application who is
entitled to exercise all rights and privileges under this Contract.  Usually,
but not always, the Owner is also the Annuitant.  The Owner is responsible for
taxes, regardless of who receives annuity benefits.  IF JOINT OWNERS ARE NAMED,
THE JOINT OWNER MUST BE A SPOUSE.  Joint Owners share ownership in all
respects.

PAYEE.  Any person receiving payment of annuity benefits under this Contract
during the Annuity Period.

PORTFOLIO.  A subdivision of the Separate Account invested wholly in shares of
one of the investment series of the Underlying Funds.

PREMIUMS.  Payments made by or on behalf of the Owner to the Company for the
Contract.

QUALIFIED PLAN.  A retirement plan which receives favorable tax treatment under
Section 401, 403, 408 or 457 of the Internal Revenue Code.

SEPARATE ACCOUNT.  A segregated asset account named on the Contract Data Page,
established by the Company in accordance with Michigan law.  The Separate
Account consists of several Portfolios, each investing in a separate series of
the Underlying Funds.  The Prospectus should be read for complete details
regarding the Separate Account and Contracts.

SEPARATE ACCOUNT CONTRACT VALUE.  The sum of the value of all Portfolio
Accumulation Units under the Contract.

SUBSEQUENT GUARANTEED RATE.  The rate of interest established by the Company
for the applicable subsequent Guaranteed Period, but in not event less than the
rate set forth on the Contract Date Page.

UNDERLYING FUNDS(S).  The underlying entities in which the Portfolios invest.

VALUATION DATE.  Each day of the New York Stock Exchange is open for business.

VALUATION PERIOD.  The period beginning at the close of business of the New
York Stock Exchange (NYSE) on each Valuation Date and ending at the close of
the NYSE on the next succeeding Valuation Date.

VARIABLE ANNUITY.  A series of periodic payments which vary in amount according
to the investment experience of the Portfolios to which Contract Values have
been allocated.

WE, OUR, US, THE COMPANY.  Jackson National Life Insurance Company.

WITHDRAWAL AMOUNT.  The amount transferred to a Guaranteed Account Option or
Portfolio in the event of a transfer or the amount paid to a Contract Owner in
the event of a withdrawal, annuitization or death.

WITHDRAWAL CHARGE.  The Contingent Deferred Sales Charge assessed against
certain withdrawals.

WITHDRAWAL VALUE.  The Contract Value, less any premium tax payable, minus any
applicable Contract charges, including the Interest Rate Adjustment.

<PAGE>   7


                               GENERAL PROVISION

ASSIGNMENT.  The Owner may assign this Contract before the Annuity Date, but we
will not be bound by an assignment unless it is in writing and has been
recorded at our Annuity Service Center.  We are not responsible for any
payments made before an assignment is recorded.  The Owner may exercise these
rights subject to the interest of any assignee or irrevocable beneficiary.  We
assume no responsibility for  the validity or tax consequences of any
assignment.  If the Contract is issued pursuant to a Qualified Plan (or a
Nonqualified Plan that is subject to ERISA), it may not be assigned except
under such conditions as may be allowed under applicable law.

CONFORMITY WITH STATE LAWS.  This Contract will be interpreted under the law of
the state in which it is issued.  Any provision which, on the Issue Date, is in
conflict with the law of such state, is amended to conform to the minimum
requirements of such law.

CREDITING OF INTEREST.  Interest will be credited to the Guaranteed Account
Contract Value during the Guaranteed Period from the date premium is received
by the Company.  The rate of interest for the Guaranteed Period selected will
be as declared in advance by the Company's Board of Directors.  The rate of
interest will never be less than the rate shown on the Contract Data Page.

DEFERMENT OF PAYMENTS.  We may defer making payments from the Guaranteed
Account for up to 6 months.  Interest, subject to state requirements, will be
credited during the deferral period.

ENTIRE CONTRACT.  The policy is a Contract.  The Contract, Contract Data Page,
application and any applicable endorsements together make up the entire
Contract.

MISSTATEMENT OF AGE.  If the age of the Annuitant has been misstated, the
benefits will be those which the Premiums paid would have purchased at the
correct age.

Any underpayments will be made up immediately by the Company.  Overpayments
will be deducted from future payments.

MODIFICATION OF CONTRACT.  Any change or waiver of the provisions of this
Contract must be in writing and signed by the President, a Vice President, the
Secretary or Assistant Secretary or the Company.  No agent has authority to
change or waive any provision of this Contract.

NONPARTICIPATING.  This Contract does not share in our surplus or earnings.

PREMIUMS.  Premiums are flexible.  This means that you, subject to Company
declared minimums and maximums, may change the amounts, frequency or timing of
Premiums.  The initial Premium must be at least $5,000 for Nonqualified Plan
Contracts and $2,000 for Qualified Plan Contracts.  Subsequent Premiums must be
at least $500 ($50 if made in connection with an automatic payment plan).
Total Premiums under a contract may not exceed $1,000,000.  The Company may
waive the minimums or maximums at any time.

Premiums may be allocated among one or more of the Guaranteed Account Options
and one or more of the Portfolios of the Separate Account in accordance with
instructions from you.  Such election may be made in any percent from 0% to
100% in whole percentages.  The minimum that may be allocated to a Guaranteed
Account Option or a Portfolio under the Contract is $100.

PREMIUM TAXES.  The Company may deduct from the Contract Value any premium
taxes or other taxes payable to a state or other government entity.  Should we
advance any amount so due, we are not waiving any right to collect such amounts
at a later day.  The Company will deduct any withholding taxes required by
applicable law.

PROOF OF AGE OR SURVIVAL.  The Company may require satisfactory proof of
correct age upon annuitization.  If any payment under this Contract depends on
the Annuitant being alive, the Company may require satisfactory proof of
survival.

QUARTERLY REPORTS.  The Company will furnish each Owner with a statement of the
Contract Value and Portfolio balances at least quarterly.

<PAGE>   8


SEPARATE ACCOUNT.  The Separate Account is a Separate investment account of the
Company.  It is shown on the Contract Data Page.  The assets of the Separate
Account are the property of the Company.  However, they are not credited with
earnings or chargeable with liabilities arising out of any other business the
Company may conduct.  Each Portfolio is not chargeable with liabilities arising
out of any other Portfolio.

SUSPENSION OF PAYMENTS.  We may suspend or postpone any payments from the
Portfolios if any of the following occur:

a)   The New York Stock Exchange is closed.
b)   Trading on the New York Stock Exchange is restricted.
c)   An emergency exists such that it is not reasonably practical to dispose
     of securities in the Separate Account or to determine the value of its
     assets, or
d)   The Securities and Exchange Commission, by order, so permits the
     protection of security holders.

SUBSTITUTION OF FUND.  If the shares of any of the Funds or any series of the
Fund should no longer be available for investment by the Separate Account or
if, in the judgment of the Company's Board of Directors, further investment in
the shares of a Fund is no longer appropriate in view of the purpose of the
Contract, the Company may substitute shares of another mutual fund or series
within a mutual fund for Fund shares already purchased or to be purchased in
the future by Premiums under the Contract.  No substitution of securities may
take place without prior approval of the Securities and Exchange Commission and
under such requirements as it may impose.

WRITTEN NOTICE.  Any notice we send to the Owner will be sent to the Owner's
address shown in the application unless the Owner requests otherwise.  Any
written request or notice to us must be sent to our Annuity Service Center.


                             CHARGES AND DEDUCTIONS


We will deduct the following charges from the Contract:

ADMINISTRATION CHARGE.  The charge specified on the Contract Data Page.  This
charge is to compensate Us for all administrative expenses associated with the
Contract.

ANNUAL CONTRACT MAINTENANCE CHARGE.  The charge specified on the Contract Data
Page will be deducted on each Contract anniversary that occurs on or prior to
the Annuity Date.  It will also be deducted when the Contract Value is
withdrawn in full if withdrawal is not on a Contract anniversary.  We reserve
the right to assess a charge on a class basis which is less than the charge
specified on the Contract Data Page.

CONTINGENT DEFERRED SALES CHARGE.  This charge may be deducted upon withdrawal
of the Contract Value, in whole or in part.  See WITHDRAWAL PROVISIONS.

ENHANCED DEATH BENEFIT CHARGE.  The charge specified on the Contract Data Page.
This charge is to compensate Us for the risk assumed as a result of
contractual obligations to provide an Enhanced Death Benefit prior to the
Annuity Date.  This charge is applicable in all states.

EXPENSE RISK CHARGE.  The charge specified on the Contract Data Page.  This
charge is to compensate Us for assuming the expense risks under the Contract.

INTEREST RATE ADJUSTMENT.  See INTEREST RATE ADJUSTMENT section.

MORTALITY RISK CHARGE.  The charge specified on the Contract Data Page.  This
charge is to compensate Us for assuming the mortality risks under the Contract.

TRANSFER FEE.  A transfer fee of $25.00 will apply to transfers in excess of 15
in a Contract Year.  The Company may waive the transfer fee in connection with
preauthorized automatic transfer programs.

<PAGE>   9



                            ACCUMULATION PROVISIONS


ACCUMULATION UNIT VALUE (AUV).  Accumulation Unit Value is determined Monday
through Friday on each day that the New York Stock Exchange is open for
business.

A separate Accumulation Unit Value is determined for each Portfolio.  If the
Company elects or is required to assess a charge for taxes, a separate
Accumulation Unit Value may be calculated for Contracts issued in connection
with Nonqualified and Qualified Plans, respectively, within each Portfolio.

The Accumulation Unit Value for each Portfolio will vary with the price of a
share in the Underlying Fund and in accordance with the Mortality (including
the Enhanced Death Benefit Charge) and Expense Risk Charge, Administration, and
any provision for taxes.

Assessments of Withdrawal Charges, Transfer Fees and Contract Maintenance
Charges are effected by redemption of Accumulation Units and do not affect
Accumulation Unit Value.

The Accumulation Unit Value of a Portfolio for any Valuation Period is
calculated by subtracting (2) from (1) and dividing the result by (3) where:

1)   is the total value at the end of the given Valuation Period of the assets
     attributable to the Accumulation Units of the Portfolio minus the total
     liabilities;
2)   is the cumulative unpaid charge for assumptions of Mortality and Expense
     Risk Charge, and for Administration Charge; and
3)   is the number of Accumulation Units outstanding at the end of the given
     Valuation Period.

GUARANTEED ACCOUNT CONTRACT VALUE.  The Guaranteed Account Value under the
contract shall be the sum of all monies allocated or transferred to the
Guaranteed Account, reduced by any applicable premium taxes, plus all interest
credited to the Guaranteed Account during the period that the Contract has been
in effect.  This amount shall be adjusted for withdrawals, annuitizations,
transfers, and charges.

GUARANTEED ACCOUNT OPTIONS. For any amounts allocated to the Guaranteed
Account, the Owner will select the duration of the Guaranteed Account Option
from those made available by the Company.  Such amounts will earn interest at
the Current Interest Rate for the chosen duration, compounded annually during
the entire Guaranteed Period.  In no event will the Current Interest Rate be
less than the Subsequent Guaranteed Rate specified on the Contract Data Page.

You may allocate Premiums, or make transfers from the Portfolios, to the
Guaranteed Account at any time prior to the latest Annuity Date.  However, no
Guaranteed Period other than one year may be chosen which extends beyond the
latest Annuity Date.  Withdrawals from a Guaranteed Account Options may take
place thirty (30) days following the end of the corresponding Guaranteed Period
without being subject to an Interest Rate Adjustment.

If the Owner does not specify a Guaranteed Period at the time of renewal, We
will select the same Guaranteed Period as has just expired, so long as such
Guaranteed Period does not extend beyond the Annuity Date.  If such Guaranteed
Period does extend beyond the Annuity Date, We will choose the longest period
that will not extend beyond such date.  If a renewal occurs within one year of
the Annuity Date, We will credit interest up to the Annuity Date at the then
Current Interest Rate for the one-year Guaranteed Period.

INTEREST RATE ADJUSTMENT.  Except in the 30-day period following the end of a
Guaranteed Period, any amount withdrawn or transferred from a Guaranteed
Account Option will be subject to an Interest Rate Adjustment.  The Interest
Rate Adjustment will be calculated by multiplying the amount withdrawn,
transferred or annuitized by the formula described below:

                                [1 + I](m/12)      -1
                                -------
                                [1 + J](m/12)


<PAGE>   10

where:
I =     The base rate credited to the current Guaranteed Period.
J =     The base rate that would be credited to the Guaranteed Account Option
        of the same duration at the time of withdrawal or transfer, increased
        by 0.5%.  When no Guaranteed Account Option of the same duration is
        available, the rate will be established by linear interpolation.
M =     The number of complete months remaining to the end of the Guaranteed
        Account Option.


There will be no Interest Rate Adjustment when J is greater than 1 but by less
than 0.5%.

In addition, the Interest Rate Adjustment will be be applied to amounts
withdrawn for:
a)   the payment of death benefit proceeds,
b)   the payment of charges or fees; or
c)   transfers relating to Dollar Cost Averaging from the one-year Guaranteed
     Account Option.

In no event will the total Withdrawal Amount available be less than the
Guaranteed Account Minimum Value.


                              TRANSFER PROVISIONS

TRANSFERS.  Transfers between Portfolios and Guaranteed Account Options may be
made as described below.  Such transfers are not subject to Withdrawal Charges.
Transfers from the Guaranteed Account will be subject to applicable Interest
Rate Adjustments.

The minimum transfer amount is $100.  The remaining Contract Value of a
Portfolio or Guaranteed Account Option after a transfer must be at least $100.
If a transfer would cause a remaining value to be less than $100, all of the
value must be transferred, or no transfer can take place.  The Company reserves
the right to waive the minimum transfer amount in connection with preauthorized
automatic transfer programs.

FROM PORTFOLIO TO PORTFOLIO.  Both prior to and after the Annuity Date, You may
transfer all or a portion of Your investment in one Portfolio to another
Portfolio.  A transfer will result in the purchase of Accumulation Units in a
Portfolio and redemption of Accumulation Units in the other Portfolio.
Transfers will be effected at the end of the Valuation Period in which We
receive Your request for the transfer.

FROM PORTFOLIO TO THE GUARANTEED ACCOUNT.  Prior to the Annuity Date, You may
transfer all or a portion of the value of Your Portfolio(s) to a Guaranteed
Account Option.  This will result in the redemption of Accumulation Units and
will be effected at the end of the Valuation Period in which We receive Your
request for transfer.


FROM GUARANTEED ACCOUNT TO GUARANTEED ACCOUNT OR PORTFOLIO.  Other than on
renewal of a Guaranteed Account Option (see GUARANTEED ACCOUNT OPTIONS),
transfers made between Guaranteed Account Options or from a Guaranteed Account
Option to a Portfolio are subject to an Interest Rate Adjustment.

<PAGE>   11


                             WITHDRAWAL PROVISIONS


Prior to the Annuity Date, you may withdraw all or part of the Contract Value
amounts under this Contract by informing us at our Annuity Service Center.  For
full withdrawal, this Contract, or a Lost Contract Affidavit, must be returned
to Our Annuity Service Center.

Except in connection with a systematic withdrawal program, the minimum partial
withdrawal amount is $500, or if less, the Owner's entire interest in the
Portfolio or Guaranteed Account Option from which a withdrawal is requested.
The Owner's interest in the Portfolio or Guaranteed Account Option from which
the withdrawal is requested must be at least $100 after the withdrawal is
completed if anything is left in that Portfolio or Guaranteed Account Option.

Absent written notification to the contrary, withdrawals and any applicable
charge will be deducted from the Contract Value in proporation to their
allocation among the Portfolios and Guaranteed Account Options.  Withdrawals
will be based on values at the end of the Valuation Period in which the request
for withdrawal and the Contract, or a Lost Contract Affidavit, (in a case of a
full withdrawal), are received at the Annuity Service Center.  Withdrawals are
subject to applicable Interest Rate Adjustments.

CONTINGENT DEFERRED SALES CHARGE.  A Contingent Deferred Sales Charge, which is
referred to as the Withdrawal Charge, may be imposed upon certain withdrawals.
Withdrawal Charges will vary in amount depending upon the Contribution Year of
the Premium at the time of withdrawal in accordance with the Withdrawal Charge
table shown below.

The Withdrawal Charge schedule is:


CONTRIBUTION YEAR  PERCENT
        0             7
        1             6
        2             5
        3             4
        4             3
        5             2
        6             1
        7             0

The Withdrawal Charge is deducted from the remaining Contract Value so that the
actual reduction in Contract Value as a result of the withdrawal will be
greater than the withdrawal amount requested and paid.  For purposes of
determining the Withdrawal Charge, withdrawals will be allocated first to
earnings, if any (which may be withdrawn free to Withdrawal Charge), and then
to Premium on a first-in, first-out basis so that all withdrawals are allocated
to Premium to which the lower (if any) Withdrawal Charge applies.

Premiums that are no longer subject to the Withdrawal Charge (and not
previously withdrawn), plus earnings in the Owner's account may be withdrawn
free of Withdrawal Charges at any time.

In addition, there may be a free withdrawal amount for the first withdrawal
during a Contract Year ("Additional Free Withdrawal").  The Additional Free
Withdrawal amount is equal to 10% of Premium that remains subject to the
Withdrawal Charge and that has not previously been withdrawn, less earnings in
the Owner's account.  Although Additional Free Withdrawal amounts reduce
principal in an Owner's account, they do not reduce Premium for purposes of
calculating the Withdrawal Charge.  As a result, an Owner will not receive the
benefit of an Additional Free Withdrawal in a full surrender.

If the withdrawal request does not specify from which Portfolio(s) or
Guaranteed Account Option(s) the withdrawal is to be made, the request will be
processed by making withdrawals from each Portfolio and each Guaranteed Account
Option in proportion to their allocations.  In no event shall the amount
withdrawn exceed the Withdrawal Value.

The Company will waive the Withdrawal Charge on any withdrawal necessary to
satisfy the minimum distribution requirements of the Code.

In addition to a Withdrawal Charge, a withdrawal from the Guaranteed Account
may also incur an Interest Rate Adjustment.  See INTEREST RATE ADJUSTMENT for
further details.

<PAGE>   12


                            DEATH BENEFIT PROVISIONS

DEATH OF CONTRACT OWNER BEFORE THE ANNUITY DATE:  Upon Your death, or the death
of any Joint Contract Owner, before the Annuity Date, the Death Benefit will be
paid to the Beneficiary(ies) designated by You.  Upon the death of a Joint
Contract Owner, the surviving Joint Contract Owner, if any, will be treated as
the primary Beneficiary.  Any other Beneficiary designation on record at the
Company's Home Office at the time of death will be treated as a contingent
Beneficiary

DEATH BENEFIT AMOUNT BEFORE THE ANNUITY DATE:  The standard Death Benefit is
equal to the greater of:
1)   the Contract Value at the end of the Valuation Period during which due
     proof of death and an election of the type of payment to the Beneficiary
     is received by the Company, at Home Office; or
2)   the total Premiums paid prior to the death of the Owner, minus the sum
     of:
     a)   the total withdrawals and any Withdrawal Charges assessed;
          and
     b)   premium taxes incurred.

In addition, where permitted by state law, the Company will provide an Enhanced
Death Benefit.  The Enhanced Death Benefit is determined by (A) recomputing the
standard Death Benefit by accumulating all amounts under (2) above annually at
5% (4% if the Owner was age 70 or older on the Issue Date) to the date of
death, and (B) paying the greater of the amount so determined and the following
amount, which is deemed to be $0 if the Owner dies prior to the seventh
Contract Year:
      The Contract Value at the seventh Contract Year, plus any Premiums paid
      since that time and prior to death, minus the sum of:
      a)   total withdrawals and any Withdrawal Charges assessed since
           such seventh Contract Year; and
      b)   premium taxes incurred since the seventh Contract Year,

      all accumulated annually at 5% (4% if the Owner was age 70 or older on
      the Issue Date) to the date of death.

The Enhanced Death Benefit shall never exceed 250% of all Premiums paid to the
Contract, reduced by the amount of any withdrawals.

DEATH BENEFIT OPTIONS BEFORE ANNUITY DATE:  In the event of Your death or any
Joint Contract Owner's death before the Annuity Date, a Beneficiary must
request that the Death Benefit be paid under one of the Death Benefit Options
below.  In addition, if the Beneficiary is the spouse of the Contract Owner, he
or she may elect to continue the Contract, at the then Contract Value, in his
or her own name and exercise all the Contract Owner's rights under the
Contract.  The following are the Death Benefit Options:

*    Option 1 - lump-sum payment of the Death Benefit; or
*    Option 2 - the payment of the entire Death Benefit within 5 years of the
     date of the death of the Contract Owner or any Joint Contract Owner; or
*    Option 3 - payment of the Death Benefit under an Annuity Option over the
     lifetime of the Beneficiary or over a period not extending beyond the life
     expectancy of the Beneficiary, with distribution beginning within one year
     of the date of Your death or the death of any Joint Contract Owner.


Any portion of the death benefit not applied under Option 3 within one year of
the date of a Contract Owner's death, must be distributed within five years of
the date of death.

If a lump-sum payment is requested, the amount will be paid within seven (7)
days of receipt of proof of death and the election unless the Suspension or
Deferral of Payments Provision is in effect.

Payment to the Beneficiary, other than in a single sum, may only be elected
during the sixty-day period beginning with the date of receipt of proof of
death.

DEATH OF CONTRACT OWNER AFTER THE ANNUITY DATE:  If You, or any Joint Contract
Owner, die after the Annuity Date, and You are not an Annuitant, any remaining
payments under the Annuity Option elected will continue at least as rapidly as
under the method of distribution in effect at the Contract Owner's death.  Upon
Your death after the Annuity Date, the Beneficiary becomes the Contract Owner.

<PAGE>   13


DEATH OF ANNUITANT:  Upon the death of an Annuitant, who is not a Contract
Owner, before the Annuity Date, You may designate a new Annuitant, subject to
the Company's underwriting rules then in effect.  If no designation is made
within 30 days of the death of the Annuitant, You will become the Annuitant.
If the Contract Owner is a non-natural person, the death of the Annuitant will
be treated as the death of the Contract Owner and a new Annuitant may not be
designated.

Upon the death of the Annuitant after the Annuity Date, the death benefit, if
any, will be as specified in the Annuity Option elected.  Death benefits will
be paid at least as rapidly as under the method of distribution in effect at
the Annuitant's death.

<PAGE>   14


                               ANNUITY PROVISIONS

ANNUITY DATE.  The date on which annuity payments are to begin.  In selecting
an Annuity Date, the Owner may wish to consider the applicability of a
Withdrawal Charge, which is imposed upon annuitizations which occur within one
year of the Issue Date.  Annuity payments will begin no later than the Latest
Annuity Date.  If no Annuity Date is selected, the Annuity Date will be the
Latest Annuity Day.  The Owner may change the Annuity Date at any time, at
least seven days prior to the Annuity Date then indicated on the Company's
records, by written notice to the Company at its Annuity Service Center.

ANNUITY OPTIONS.  The Owner, or any Beneficiary who is so entitled, may elect
to receive a lump sum at the end of the accumulation period.  However, a
lump-sum distribution may be deemed to be a withdrawal, and at least a portion
of it may be subject to income tax.  Alternatively, an Annuity Option may be
elected.  The Owner may, upon prior written notice to the Company at its
Annuity Service Center, elect an Annuity Option at any time prior to the
Annuity Date.

A change of Annuity Options is permitted if made at least 7 days before the
Annuity Date.  If no other Annuity Option is elected, monthly annuity payments
will be made in accordance with Option 3 below, a Life annuity with 120-month
period certain.  Annuity payments will be made in monthly, quarterly,
semi-annual or annual installments as selected by the Owner.  However, if the
amount available to apply under an Annuity Option is less than $5,000, and
state law permits, the Company has the right to pay the annuity in one lump
sum.  In addition, if the first payment provided would be less than $50, and
state law permits, the Company shall have the right to require the frequency of
payments be at quarterly, semiannual or annual intervals so as to result in an
initial payment of at least $50.

NO WITHDRAWALS OF CONTRACT VALUE ARE PERMITTED DURING THE ANNUITY PERIOD FOR
ANY ANNUITY OPTION UNDER WHICH PAYMENTS ARE BEING MADE PURSUANT TO LIFE
CONTINGENCIES.

Upon written election filed with The Company at its Annuity Service Center, all
of the Contract Value will be applied to provide one of the following Annuity
Options.  The portion of the Contract Value which is in the Guaranteed Account
immediately prior to the Annuity Date, applied to an Annuity Option, will be
subject to applicable Interest Rate Adjustments.

OPTION 1 - LIFE INCOME  An annuity payable monthly during the lifetime of the
Annuitant.  Under this option, no further payments are payable after the death
of the Annuitant, and there is not provision for a death benefit payable to the
Beneficiary.  Therefore, it is possible under Option 1 for the payee to receive
only one monthly annuity payment under this Contract.

OPTION 2 - JOINT AND SURVIVOR  An annuity payable monthly while both the
Annuitant and a designated second person are living.  Upon the death of either
person, the monthly income payable will continue during the lifetime of the
survivor.  If a reduced payment to the survivor is desired, variable annuity
payments will be determined using either one-half or two-thirds of the number
of each type of Annuity Unit credited.  Fixed payments will be equal to either
one-half or two-thirds of the fixed payment payable during the joint life of
the Annuitant and the designated second person.

Annuity payments terminate automatically and immediately upon the death of the
surviving person without regard to the number or total amount of payments
received.

There is no minimum number of guaranteed payments, and it is possible to have
only one annuity payment if both the Annuitant and the designated second person
die before the due date of the second payment.

OPTION 3 - LIFE ANNUITY WITH 120 OR 240 MONTH PAYMENTS GUARANTEED  An annuity
payable monthly during the lifetime of the Annuitant with the guarantee that
if, at the death of the Annuitant, payments have been made for fewer than the
guaranteed 120 or 240 monthly periods, as elected by the Owner, the balance of
the guaranteed number of payments will be made to the Beneficiary.

<PAGE>   15


OPTION 4 - INCOME FOR A SPECIFIED PERIOD  Under this option, a payee can elect
an annuity payable monthly for any period of years from 5 to 30.  This election
must be made for full 12-month periods.  In the event the payee dies before the
specified number of payments has been made, the Beneficiary may elect to
continue receiving the scheduled payments or may alternatively elect to receive
the discounted present value of any remaining guaranteed payments in a lump
sum.

ADDITIONAL OPTIONS.  Other Annuity Options may be made available by the
Company.

FIXED ANNUITY PAYMENTS.   To the extent a fixed Annuity Option has been
elected, the proceeds payable under this Contract, less any applicable premium
taxes, shall be applied to the payment of the Annuity Option elected at
whichever of the following is more favorable to the Payee; (a) the annuity
rates based upon the applicable tables in the contract; (b) the then current
rates provided by the Company on contracts of this type on the Annuity Date.
In no event will the Fixed Annuity payments be changed once they begin.

AMOUNT OF FIXED ANNUITY PAYMENTS.  The amount of each Fixed Annuity payment
will be determined by applying the portion of the Contract Value allocated by
Fixed Annuity payments less any applicable premium taxes, charges and any
Interest Rate Adjustment that may apply in the case of premature
annuitizations, to the annuity table applicable to the Annuity Option chosen.

AMOUNT OF VARIABLE ANNUITY PAYMENTS.  First Variable Payment.  The dollar
amount of the first monthly annuity payment will be determined by applying the
portion of the Contract Value allocated to Variable Annuity payments, less any
applicable premiums taxes, to the annuity table applicable to the Annuity
Option chosen.  Those tables are based on a set amount per $1,000 of proceeds
applied.

The dollars applied are then divided by 1,000 and the result multiplied by the
appropriate annuity factor appearing in the table to compute the amount o the
First monthly annuity payment.  That amount is divided by the value of an
Annuity Unit as the Annuity Date to establish the number of Annuity Units
representing each Variable Annuity payment.  The number of Annuity Units
determined for the first Variable Annuity payment remains constant for the
second and subsequent monthly Variable Annuity payments, assuming that no
reallocation of Contract Values is made.  The total Variable Annuity payment is
equal to the sum of the annuity payments as determined above for each Portfolio
to which the Contract Value is allocated on the Annuity Date.

Number of Variable Units.  The number of Annuity Units for each applicable
Portfolio is the amount of the first annuity payment attributable to that
Portfolio divided by the value of the applicable Annuity Unit for that
Portfolio as of the Annuity Date.  The number will not change as a result of
investment experience.

Annuity Unit Value.  The initial value of an Annuity Unit of each Portfolio was
set when the Portfolios were established.  The value may increase or decrease
from one Valuation Period to the next.  For any Valuation Period, the value of
an Annuity Unit of a particular Portfolio is the value of that Annuity Units.
during the last Valuation Period multiplied by the net investment factor for
that Portfolio for the current Valuation Period.

The Net Investment Factor for any Portfolio for any Valuation Period is
determined by dividing (a) by (b) and then subtracting (c) from the result
where:

a)    is the net result of:
      1)   the net asset value of the Fund share held in the Portfolio
           determined as of the end of the Valuation Period, plus
      2)   the per share amount of any dividend or other distribution
           declared by the Fund on the shares held in the Portfolio if the
           "ex-dividend" date occurs during the Valuation Period, plus or minus
      3)   a per share credit or charge with respect to any taxes paid
           or reserved for by the Company during the Valuation Period which are
           determined by the Company to be attributable to the operation of the
           Portfolio.  (No federal income taxes are applicable under present
           law.)

<PAGE>   16


b)   is the net asset value of the Fund share  held in the Portfolio
     determined as of the end of the preceding Valuation Period; and
c)   is the asset charge factor determined by the Company for the Valuation
     Period to reflect the Expense Risk Charge, Administration Charge, Mortality
     Risk Charge and Enhanced Death Benefit Charge.

The result is then multiplied by a factor that neutralizes the assumed
investment rate.

Subsequent Variable Annuity Payments.  After the first Variable Annuity
payment, payments will vary in amount according to the investment performance
of the applicable Portfolios.  The amount may change from month to month.  The
amount of each subsequent payment is the sum of:

The number of Annuity Units for each Portfolio as determined for the first
annuity payment, multiplied by the value of an Annuity Unit for that Portfolio
at the end of the Valuation Period immediately preceding in which payment is
due.

The Company guarantees that the amount of each Variable Annuity payment will
not be affected by variations in expenses or mortality experience.

BASIS OF COMPUTATION.  The actuarial basis for the Table of Guaranteed Annuity
Rates is the 1983a Annuity Mortality Table, without projection with interest at
3.0%.  The Table of Guaranteed Annuity Rates does not include any applicable
premium tax.

<PAGE>   17



                            TABLE OF ANNUITY OPTIONS

The following table is for a contract whose net proceeds are $1,000, and will
apply pro rata to the amount payable under this contract.


<TABLE>
<CAPTION>


 UNDER OPTION 4                                MONTHLY INSTALLMENT UNDER OPTIONS 1 or 3
- ----------------           --------------------------------------------------------------------------------------------------------
No. of             Age of     No. of Mos.      Age of        No. of Mos.     Age of       No. of Mos.   Age of      No. of Mos. 
Monthly  Monthly   Payee        Certain        Payee           Certain       Payee          Certain     Payee         Certain   
Install- Install-        --------------------           --------------------         -----------------         ------------------
ments      ments   Male  Life    120    240    Male    Life    120     240   Female  Life   120    240  Female  Life   120   240 
- -----------------------------------------------------------------------------------------------------------------------------------
<S>      <C>        <C>    <C>    <C>    <C>     <C>    <C>     <C>     <C>     <C>    <C>    <C>    <C>   <C>   <C>    <C>   <C>
   60    17.95      40     3.67   3.66   3.61    70     7.28    6.64    5.28    40     3.44   3.43   3.42   70    6.29   5.99  5.14
   74    15.17      41     3.72   3.71   3.68    71     7.56    6.82    5.33    41     3.48   3.47   3.45   71    6.52   6.17  5.20
   84    13.19      42     3.77   3.76   3.70    72     7.86    7.00    5.36    42     3.52   3.51   3.48   72    6.78   6.35  5.24
   96    11.71      43     3.82   3.81   3.74    73     8.19    7.17    5.39    43     3.56   3.55   3.52   73    7.02   6.54  5.30
  108    10.56      44     3.89   3.86   3.79    74     8.52    7.35    5.41    44     3.60   3.59   3.56   74    7.31   6.73  5.34
  120     9.64      45     3.95   3.92   3.83    75     8.90    7.53    5.43    45     3.64   3.63   3.60   75    7.82   6.92  5.37
  132     8.89      46     4.00   3.98   3.89    76     9.30    7.71    5.45    46     3.70   3.69   3.64   76    7.96   7.12  5.40
  144     8.26      47     4.07   4.04   3.94    77     9.71    7.89    5.47    47     3.75   3.74   3.69   77    8.32   7.33  5.43
  156     7.73      48     4.14   4.10   3.99    78    10.71    8.05    5.48    48     3.80   3.79   3.74   78    8.72   7.53  5.45
  168     7.28      49     4.21   4.17   4.04    79    10.66    8.21    5.49    49     3.86   3.84   3.79   79    9.16   7.73  5.46
  180     6.88      50     4.28   4.24   4.10    80    11.19    8.37    5.50    50     3.92   3.91   3.83   80    9.62   7.93  5.48
  192     6.55      51     4.37   4.31   4.16    81    11.75    8.51    5.50    51     3.98   3.96   3.89   81   10.13   8.11  5.49
  204     6.25      52     4.45   4.39   4.22    82    12.34    8.65    5.51    52     4.05   4.02   3.95   82   10.68   8.30  5.50
  216     5.97      53     4.53   4.47   4.27    83    12.97    8.77    5.51    53     4.11   4.09   4.00   83   11.28   8.47  5.50
  228     5.74      54     4.63   4.55   4.33    84    13.65    8.90    5.52    54     4.20   4.17   4.06   84   11.93   8.83  5.51
  240     5.52      55     4.72   4.65   4.40    85    14.36    9.00    5.52    55     4.27   4.24   4.13   85   12.64   8.77  5.51
  252     5.34      56     4.83   4.74   4.47    86    15.11    9.10    5.52    56     4.36   4.31   4.19   86   13.39   8.91  5.52
  264     5.16      57     4.94   4.84   4.53    87    15.91    9.19    5.52    57     4.44   4.40   4.25   87   14.20   9.02  5.52
  288     5.00      58     5.05   4.94   4.60    88    16.74    9.26    5.52    58     4.53   4.49   4.31   88   15.07   9.13  5.52
  300     4.86      59     5.18   5.05   4.68    89    17.84    9.34    5.52    59     4.64   4.57   4.39   89   15.99   9.21  5.52
          4.72      60     5.31   5.17   4.73    90    18.59    9.39    5.52    60     4.74   4.68   4.45   90   16.96   9.30  5.52
                    61     5.45   5.28   4.79    91    19.61    9.44    5.52    61     4.86   4.78   4.52   91   17.97   9.36  5.52
                    62     5.61   5.42   4.86    92    20.71    9.49    5.52    62     4.97   4.89   4.60   92   19.04   9.41  5.52
                    63     5.77   5.56   4.92    93    21.89    9.52    5.52    63     5.10   5.00   4.67   93   20.15   9.46  5.52
                    64     5.94   5.69   4.98    94    23.16    9.56    5.52    64     5.23   5.12   4.74   94   21.31   9.50  5.52
                    65     6.13   5.84   5.04    95    24.55    9.58    5.52    65     5.38   5.25   4.81   95   22.51   9.54  5.52
                    66     6.33   5.98   5.10    96    26.07    9.60    5.52    66     5.54   5.38   4.88   96   23.78   9.57  5.52
                    67     6.55   6.14   5.15    97    27.73    9.62    5.52    67     5.70   5.52   4.95   97   25.14   9.59  5.52
                    68     6.78   6.31   5.20    98    29.58    9.62    5.52    68     5.88   5.67   5.01   98   26.62   9.61  5.52
                    69     7.02   6.48   5.24    99    31.63    9.63    5.52    69     6.08   5.83   5.08   99   28.27   9.62  5.52
</TABLE>   

<PAGE>   18


                            TABLE OF ANNUITY OPTIONS

 The following table is for this contract whose net proceeds are $1,000, and
        will apply pro rata to the amount payable under this contract.




<TABLE>
<CAPTION>
 UNDER OPTION 4                                MONTHLY INSTALLMENT UNDER OPTIONS 1 or 3
- ----------------           ------------------------------------------------------------------------------------
No. of   No. of               No. of Mos.                    No. of Mos.                     No. of Mos.      
Monthly  Monthly                Certain                        Certain                         Certain           
Install- Install-  Age of  --------------------  Age of   --------------------   Age of   ---------------------
ments      ments    Payee  Life     120     240   Payee   Life     120     240   Payee    Life     120     240
- ---------------------------------------------------------------------------------------------------------------
<S>      <C>        <C>    <C>    <C>     <C>     <C>    <C>      <C>     <C>     <C>    <C>      <C>     <C>
 60       17.95      40    3.53    3.52    3.50    60     4.97     4.88    4.57    80     10.23    8.11    5.49
 72       15.17      41    3.57    3.56    3.53    61     5.10     4.99    4.64    81     10.77    8.29    5.50
 84       13.91      42    3.62    3.61    3.57    62     5.23     5.11    4.71    82     11.33    8.45    5.50
 96       11.71      43    3.67    3.66    3.61    63     5.37     5.23    4.78    83     11.95    8.61    5.51
 108      10.56      44    3.72    3.71    3.66    64     5.52     5.36    4.85    84     12.61    8.74    5.51
 120       9.64      45    3.77    3.75    3.70    65     5.68     5.49    4.91    85     13.31    8.88    5.52
 132       8.89      46    3.82    3.80    3.75    66     5.86     5.63    4.98    86     14.07    8.99    5.52
 144       8.26      47    3.89    3.86    3.79    67     6.04     5.79    5.04    87     14.87    9.10    5.52
 156       7.73      48    3.94    3.92    3.84    68     6.23     5.93    5.10    88     15.73    9.18    5.52
 168       7.28      49    4.00    3.98    3.90    69     6.45     6.10    5.16    89     16.65    9.26    5.52
 180       6.88      50    4.07    4.04    3.95    70     6.68     6.27    5.20    90     17.61    9.34    5.52
 192       6.55      51    4.14    4.10    4.00    71     6.92     6.44    5.25    91     18.63    9.40    5.52
 204       6.25      52    4.21    4.18    4.06    72     7.20     6.62    5.30    92     19.71    9.45    5.52
 216       5.97      53    4.29    4.25    4.11    73     7.48     6.80    5.34    93     20.85    9.49    5.52
 228       5.74      54    4.37    4.32    4.18    74     7.79     6.99    5.37    94     22.05    9.52    5.52
 240       5.52      55    4.46    4.41    4.24    75     8.13     7.19    5.40    95     23.33    9.56    5.52
 252       5.34      56    4.54    4.49    4.30    76     8.48     7.37    5.42    96     24.69    9.59    5.52
 264       5.16      57    4.65    4.57    4.37    77     8.87     7.56    5.45    97     26.17    9.60    5.52
 276       5.00      58    4.74    4.67    4.44    78     9.30     7.75    5.46    98     27.79    9.62    5.52
 288       4.86      59    4.86    4.77    4.50    79     9.74     7.94    5.48    99     29.61    9.63    5.52
 300       4.72                                                           
</TABLE>


<PAGE>   1
                                                               EXHIBIT 99.B5-app


                                                 APPLICATION FOR THE PERSPECTIVE
                                                      FIXED AND VARIABLE ANNUITY
[LOGO] 
                                                               USE DARK INK ONLY

PERSPECTIVE 
FIXED AND VARIABLE ANNUITY

[GRAPHIC] ANNUITANT INFORMATION

________________________________________________________________________
Name (Print as desired in policy)

________________________________________________________________________
Social Security Number/Federal I.D.
________________________________________________________________________
Date of Birth                           Age                   Sex
________________________________________________________________________
Address (Number and Street)
________________________________________________________________________
City                                    State          ZIP
________________________________________________________________________
Phone
________________________________________________________________________
Employer
________________________________________________________________________
Policy Number (Home Office Use Only)

[GRAPHIC] JOINT ANNUITANT

________________________________________________________________________
Name 

________________________________________________________________________
Social Security Number/Federal I.D.
________________________________________________________________________
Date of Birth                           Relationship


THE OWNER  (if other than Proposed Annuitant)

________________________________________________________________________
Name
________________________________________________________________________
Social Security Number/Federal I.D.     Date of Birth
________________________________________________________________________
Address (Number and Street)
________________________________________________________________________
City                                    State          ZIP


CONTINGENT OWNER  / /         JOINT OWNER  / /

________________________________________________________________________
Name
________________________________________________________________________
Social Security Number/Federal I.D.                  Date of Birth


[GRAPHIC] THE BENEFICIARY

________________________________________________________________________
PRIMARY NAME
________________________________________________________________________
Date of Birth                         Relationship
________________________________________________________________________
CONTINGENT NAME                
________________________________________________________________________
Date of Birth                         Relationship
                               
[GRAPHIC]  PREMIUM ALLOCATION (whole percentages)
           (Must total 100%)

JNL Capital Growth                      _______%
JNL Aggressive Growth                   _______%
JNL/Alger Growth                        _______%
JNL Global Equities                     _______%
JNL/Phoenix Growth                      _______%
JNL/Phoenix Balanced                    _______%
PPM/JNL Value Equity                    _______%
PPM/JNL Money Market                    _______%
PPM/JNL High Yield Bond                 _______%
T. Rowe Price/JNL Established Growth    _______%
T. Rowe Price/JNL Mid-Cap Growth        _______%
T. Rowe Price/JNL Internat'l Equity     _______%
Salomon Bros/JNL Global Bond            _______%
Salomon Bros/JNL US Gov't & Qlty Bond   _______%
Guaranteed Options
     1 year _______%   5 year _______%
     3 year _______%   7 year _______%

CAPITAL PROTECTION PROGRAM

If a Guaranteed Option was selected, is this selection intended as part
of the Capital Protection Program?    / /  Yes   / /  No
If more than one Guaranteed Option is indicated.
Which Guaranteed Period do you intend for the Capital Protection
Program?    / /  1 year   / /  3 Year    / /  5 Year    / /  7 Year

[GRAPHIC]  PREMIUM PAYMENT

Initial Premium With Application                 $___________________

________________________________________________________________________

Will this annuity replace any existing life insurance or annuity?
/ /   Yes    / / No      Details:

Company ________________________________________________________________

Policy No. _____________________________________________________________

[GRAPHIC]  ANNUITY TYPE   TAX YEAR ______
           IRC 1035 Exchange?     / / Yes   / / No

/ / Non Tax Qualified

/ / 408 Individual Retirement Annuity

    / / Regular     / / Rollover       / / Transfer
    / / Direct Rollover    / / Rollover

/ / 401(k) Qualified Savings Plan

/ / Other ______________________________________________________________

________________________________________________________________________

<PAGE>   2

[GRAPHIC]  TELEPHONE TRANSFER/WITHDRAWAL PRIVILEGE

             I (We) authorize and direct Jackson National Life Insurance 
             Company (JNL(R)) to act on instructions given by telephone from 
any person who can furnish proper identification. Telephone 
transfers/withdrawals are subject to  the terms and provisions in the
         Prospectus. Neither JNL nor its agents or representatives who act on 
         its behalf shall be subject to any claim, loss, liability, cost or 
INITIAL  expense in connection with a telephone transfer/withdrawal if JNL or 
         such other person acted on telephone  instructions in good faith in 
         reliance on this authorization.


[GRAPHIC]  REBALANCING

/ / I (We) request the accounts be REBALANCED as designated on the application.
/ / monthly         / /  quarterly       / / semiannually     / /  annually

[GRAPHIC]  PRE-AUTHORIZED CHECK
           (attach voided check)

I authorize JNL to withdraw $ _________________________ starting __________
(month), 19 ______  from my checking account for future premiums to the
Contract with the following frequency:

    / / Monthly   / / 5th    or    / / 20th
    / / Quarterly (20th of January, April, July and October)

LIST OF ADDITIONAL FORMS:

V2310: Request for tax-free Funds Transfer/Rollover/Exchange
V2401: Dollar-cost Averaging, Rebalancing, Transfer
V2410: Surrender Request
V2411: Service Request (change in: ownership, beneficiary, address, 
       name; partial withdrawal, withholding)
V2480: Systematic Withdrawal

IMPORTANT:  MAKE ALL CHECKS PAYABLE ONLY TO JACKSON NATIONAL LIFE INSURANCE CO.

1. I hereby represent to the best of my knowledge that each of the statements
   and answers contained above are full, complete and true.

2. The taxpayer identification number shown above is certified to be correct.

3. I KNOW THAT ANNUITY PREMIUMS AND SURRENDER VALUES, IF ANY, WHEN BASED ON THE
   INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT OF JNL ARE VARIABLE, AND DOLLAR
   AMOUNTS ARE NOT GUARANTEED.

4. I have been given a current Prospectus for this variable annuity and for
   each Series listed above.

5. The Contract I (we) have applied for is suitable for my (our) insurance
   investment objective, financial situation and needs.


<TABLE>
<S><C>
Agent statement. To the best of my knowledge, this application        _____________________________________________________________
/ / WILL    / / WILL NOT                                              Signature of Annuitant
replace any life insurance or annuities. I have complied with         _____________________________________________________________
requirements for disclosure and/or replacement as necessary.          Signature of Owner if other than Annuitant           Title
                                                                      _____________________________________________________________
Dated and signed                                                      Joint Owner or Joint Annuitant    

at ______________________________________ on ____________ 19 ________
                 City           State

REGISTERED REPRESENTATIVE STATEMENT
I certify that I am authorized and qualified to discuss the Contract herein applied for.
___________________________________________________________________________________________________________________________________
Agent/Representative's Full Name (Please Print)                                           Phone No.
___________________________________________________________________________________________________________________________________
Signature of Agent/Representative                                                         Date
___________________________________________________________________________________________________________________________________
Broker/Dealer Name and No.

</TABLE>

                                                [JACKSON NATIONAL LOGO]
                                        Jackson National Life Insurance Company
                                        ---------------------------------------
                                          Insuring your financial future.(TM)

                                           Home Office: Lansing, Michigan


                                   P.O. Box 30389, Lansing, Michigan 48909-7889
                                                    1/800/766-4683








<PAGE>   1
                                                               EXHIBIT 99.B6-art

                           ARTICLES OF INCORPORATION

                                     OF THE

                             JACKSON NATIONAL LIFE
                               INSURANCE COMPANY

     We, the undersigned, desiring to become incorporated under the provisions
of Act No. 218 of the Public Acts of 1956, "The Insurance Code," do hereby
make, execute, and adopt the following Articles of Association, to-wit:

                                   ARTICLE I.

     The names of the incorporators and their respective places of residence
are as follows:



<TABLE>
<CAPTION>
===============================================================================

     NAME                            PLACE OF RESIDENCE
- -------------------------------------------------------------------------------
<S>                   <C>
A. J. Pasant          3226 Hartzell, Evanston, Illinois
Leslie W. Scott       304 W. Washington, Ilinsdale, Illinois
Charles H. Bruce      3445 W. 97th St., Evergreen Park, Illinois
Herbert J. Schoen     9520 Central Park, Evanston, Illinois
Joseph J. Pernick     19801 Monte Vista, Detroit, Michigan
Solomon A. Weisgal    3222, Hartzell, Evanston,
John G. Schafer       43 Beaconhill, Grosse Pointe, Michigan
Philip J. May         829 Southlawn, East Lansing, Michigan
Jordan J. Popkin      1500 W. Hillsdale, Lansing, Michigan
Jane B. Hart          Mackinac Island, Michigan
Frank H. Lindquist    3128 N. Ernst St., Franklin Post, Illinois
Bert Nielsen          14018 Stahelin Avenue, Detroit, Michigan
Ira L. Grinnell       1195 Haslett Road, Williamston, Michigan
Morrice Henderson     533 Grove Street, East Lansing, Michigan
Edgar L. Harden       537 W. Kaye Avenue, Marquette, Michigan
Maurus J. Schumacher  164 Ridgemont Rd., Grosse Pte Farms, Michigan
Howard J. Grimes      403 Southlawn, East Lansing, Michigan
Richard A. McNichol   92 Shadywood Lane, Battle Creek, Michigan
Raymond Crouse        2626 Court Street, Saginaw, Michigan
Erik G. Dall          Route #2, Berrien Springs, Michigan
Peter F. Hurst        5500 Browns Lake Road, Jackson, Michigan
John J. Collins       2339 Jefferson Road, Clarklake, Michigan
Apex Investment Co.   3001 Cadillac Tower, Detroit, Michigan
- -------------------------------------------------------------------------------
</TABLE>



<PAGE>   2



                                  ARTICLE II.

     The name assumed by this Corporation and by which it shall be known in law
is JACKSON NATIONAL LIFE INSURANCE COMPANY and its principal office for the
transaction of business shall be in the City of Lansing, State of Michigan.

                                  ARTICLE III.

     This corporation is organized for the following purposes, as authorized by
Chapter 6, Act No. 218 of the Public Acts of 1956, as amended, namely:

     To make insurance upon the lives and health of persons and every insurance
pertaining thereto, and to grant, purchase or dispose of annuities and
endowments of every kind and description whatsoever and to reinsure any risk
authorized to be undertaken by it and to grant reinsurance upon any similar
risk undertaken by any other insurer.

     To make insurance upon any person against bodily injury or death by
accident or against disability on account of sickness or accident, including
also the granting of specific hospital benefits and medical surgical and sick
care benefits to any person, family or group, subject to such limitations as
may be prescribed with respect thereto, and to reinsure any risk authorized to
be undertaken by it and to grant reinsurance upon any similar risk undertaken
by any other insurer.

     The corporation may issue Founders Policies not to exceed an aggregate
face amount of $30,000,000 to be held by not more than 3,000 holders.  The
corporation shall not issue any of the aforementioned Founders Policies after
five (5) years from the date the corporation receives its certificate of
authority.  The Founders Policies are subject to the rights and provisions
hereinafter set forth.

     The corporation may issue participating and non-participating policies or
contracts provided that any participating policy or contract to be issued by
the corporation shall, by its terms, give the right to participate in the
divisible surplus earnings of the corporation as provided by law and as more
particularly provided by Section 4020 of The Insurance Code of 1956.

                                  ARTICLE IV.

     The term of existence of the corporation shall be perpetual.

                                   ARTICLE V.

     The annual meeting of the Shareholders shall be held each year at a time
and place as the Board of Directors deems advisable.


<PAGE>   3



                                  ARTICLE VI.

     The capital stock of the corporation shall be Fifty Seven Million Five
Hundred Thousand ($57,500,000.00) Dollars, divided into fifty million
(50,000,000) shares of Common Stock, one dollar and fifteen cents ($1.15) per
value per share.

                                 VOTING RIGHTS

     Each holder of Common Stock of the Corporation shall be entitled to one
vote for each share of Common Stock standing in his name on the books of the
Corporation and may vote the same in person or by proxy.

                             NO PRE-EMPTIVE RIGHTS

     No holder of the Common Stock shall have any pre-emptive or preferential
right of subscription to any shares of stock of this Corporation heretofore or
hereafter authorized or to any obligations convertible into stock issued or
sold, and the Board of Directors may issue stock of this Corporation or
obligations convertible into stock without offering such issue of stock either
in whole or in part to the holders of the Common Stock of this Corporation,
upon such terms and conditions as the Board of Directors shall prescribe:
provided, however, that any offering of shares of stock not be at a price per
share less than the par value thereto.

                                  ARTICLE VII.

     1.     In each and every calendar year commencing with the calendar year
1965, an amount equal to twenty-five (25%) per cent of the net gain from
operations before dividends to policyholders and excluding capital gains and
losses of the corporation for such year, after making provisions for all taxes
and after deduction of the sum of Fifty-Six Thousand ($56,000.00) Dollars, all
as reflected in the annual statement for such year filed by the Corporation with
the Insurance Department of the State of Michigan, shall be set aside and make
available to eligible Founders Policyholders for the purpose and subject to the
limitation hereinafter set forth.

     1.01    Eligible Founders Policyholders shall be holders of such Founders
Policies as may be sold and issued by the Corporation from time to time, who
shall have currently paid premiums on their respective Founders Policies for
the current year and who shall have paid in full all premiums on their
respective Founders Policies for the preceding three (3) years.

     1.02    Each eligible Founders Policyholder shall be entitled to receive a
proportion of the amount allocated as provided in paragraph 1 hereof, which
proportion shall be the proportion which the amount of the annual premium for
said individual Founders Policy shall be the total amount of the annual
premiums for all Founders 

<PAGE>   4
Policies, except those Founders Policies on which premiums have not
been paid for three (3) full years, at any time issued by the Corporation;
provided, however, that no eligible Founders Policyholder shall be entitled to
receive in any one year an amount in excess of the amount of the annual premium
for said Founders Policy. 

                                 ARTICLE VIII.

     The corporate powers of the Corporation shall be exercised by a Board of
Directors consisting of not less than three (3), and at least one (1) members
of the Directors shall be a resident of the State of Michigan.

                                  ARTICLE IX.

     The Directors shall hold a meeting immediately following the Annual
Shareholders Meeting in each year; at which time they shall elect from their
membership a President and may elect a Chairman of the Board of Directors.  At
such meeting, the Directors shall also elect one or more Vice Presidents, a
Secretary, a Treasurer, and such other officers and committees as the By-Laws
may require, none of whom need be Directors of the corporation, and whose
appointments shall be during the pleasure of the Board.  The President shall be
the Chief Executive Officer of the corporation and the duties and
responsibilities of all other officers shall be such as may be assigned to them
from time to time by the Chief Executive Officer, or the Board of Directors in
accordance with the By-Laws of the corporation.

                                   ARTICLE X.

     The time for holding the annual meeting of the corporation shall be as
above provided and notice of all meetings of the shareholders shall be given by
mailing to each shareholder a copy of such notice, postage prepaid, directed to
his last known place of residence, at least twenty-one (21) days prior to the
time fixed for such meeting.  Such notice shall state the time and place, and
if it be a Special Meeting, the purpose of such meeting.

                                  ARTICLE XI.

     The Directors may adopt By-Laws and amend the same from time to time for
the proper conduct and operation of the business of the corporation not
inconsistent with these Articles of Incorporation.




<PAGE>   1
                                                            EXHIBIT 99.B6-bylaws

                                   BY-LAWS
                                   OF THE
                   JACKSON NATIONAL LIFE INSURANCE COMPANY
      (Enacted 8/61; Amended 8/64, 9/64, 2/70, 1/71, 4/72, 2/73, 4/76)

                                  ARTICLE I

                                  Meetings

     Section 1.    Place of Meeting.  The meetings of the shareholders and of
the Board of Directors of this corporation shall be held at the principal
office of the corporation, in the City of Jackson, Michigan, and such other
places as the Board of Directors may from time to time determine.

     Section 2.    Annual Meeting of Shareholders.  The annual meeting of the
shareholders shall be held in each year on the fourth Wednesday of April, at
10:30 o'clock in the morning, one of purposes of which shall be the election of
a Board of Directors.  The first annual meeting shall be held in 1962.

     Section 3.    Notice of Annual Meeting of Shareholders.  At least
twenty-one (21) days prior to the date fixed by Section 2 of this Article for
the holding of the annual meeting of shareholders, written notice of the time,
place and purpose of such meeting shall be mailed, as hereinafter provided, to
each shareholder entitled to vote at such meeting.

     Section 4.    Delay Annual Meeting.  If for any reason the annual meeting
of the shareholders shall not be held on the day designated in Section 2 of this
Article, such meeting may be called and held as a special meeting, and the same
proceedings may be had thereat as at the annual meeting; provided, however,
that the notice of such meeting shall be the same herein required for the
annual meeting, namely, not less than a twenty-one (21) day notice.

     Section 5.    Order of Business at Annual Meeting.  At all meetings of
shareholders the order of business shall first be the calling of the roll, and
if a quorum is found to be present, the order of business shall then continue
and  be observed as follows, as far as applicable and consistent with the
purposes of the meeting; viz:

     (a)   Report of notice of meeting              
     (b)   Reading minutes of preceding meeting     
     (c)   Report of President                      
     (d)   Report of Secretary                      
     (e)   Report of Treasurer                      
     (f)   Report of Committees                     
                                                    
                                                    
<PAGE>   2
                                                    
                                                    
     (g)   Election of Directors                    
     (h)   Unfinished Business                      
     (i)   New Business                             
     (j)   Adjournment                              

provided that in the absence of any objection the presiding officer may vary
the order of business at his discretion.

     Section 6.    Special Meeting of Shareholders.  A special meeting of the
shareholders may be called at any time by the President, or by a majority of
the Board of Directors, or by shareholders entitled to vote upon not less that
an aggregate of twenty (20%) per cent of outstanding shares of the corporation
having the right to vote at such special meeting.  The method by which such
meeting may be called is as follows:  Upon receipt of a specification in
writing setting forth the date and objects of such proposed special meeting,
signed by the President, or by a majority of the Board of Directors, or by
shareholders as above provided, the notices requisite to such meeting.

     Section 7.    Notice of Special Meeting of Shareholders.  At least
twenty-one (21) days prior to the date fixed for the holding of any special
meeting of shareholders, written notice of the time, place and purposes of such
meeting shall be mailed, as hereinafter provided, to each shareholder entitled
to vote at such meeting.  No business not mentioned in the notice shall be
transacted at the meeting.

     Section 8.    Organization Meeting of the Board.  At the place of holding
the annual meeting of shareholders, and immediately following the same, the
Board of Directors as constituted upon final adjournment of such annual meeting
shall convene for the purpose of electing officers and transacting any other
business properly brought before it.

     Section 9.    Regular Meetings of the Board.  Regular meetings of the Board
of Directors may be held at such times and places as the Board of Directors
shall from time to time determine.  No notice of regular meetings of the Board
shall be required.

     Section 10.   Special Meetings of the Board.  The special meetings of the
Board of Directors may be called by the President at any time and shall be
called by the President upon the written request of three members of the Board
of Directors.  At least three days written notice setting forth the time, place
and purpose of the meeting shall be mailed to each Director, but action taken
at any such time shall not be invalid for want of notice if such notice shall
be waived as hereinafter provided.

     Section 11.   Notices and Mailing.  All notices required to be given by any
provision of these By-Laws shall state the authority pursuant to which they are
issued (as "by order of the President," or "by order of the Board of
Directors," or "by order of the shareholders," as the case may be)  and shall
bear the written or printed signature of the Secretary.  Every notice shall be
deemed duly served when the same has been deposited


<PAGE>   3

in the United States mail, with postage full prepaid, plainly addressed to the
sendee at his, her or its last address appearing upon the original or duplicate
stock ledger of this corporation at its registered office in Michigan.

     Section 12.   Waiver of Notice.  Notice of the time, place and purpose of
any meeting of the Board of Directors, may be waived by telegram, radiogram,
cablegram, or other writing, either before or after such meeting has been held.

                                 ARTICLE II

                                   Quorum

     Section 1.    Quorum of Shareholders.  A majority of the outstanding shares
of this corporation entitled to vote, present by the record holders thereof in
person or by proxy, shall constitute a quorum at any meeting of the
shareholders.  In case there is no quorum present on the day fixed for the
meeting, the shareholders present may adjourn said meeting from time to time
without further notice until said quorum is obtained, or may adjourn Sine Die.

     Section 2.    Quorum of Directors.  A majority of the Directors shall
constitute a quorum for the transaction of business.

                                 ARTICLE III

                        Voting, Elections and Proxies

     Section 1.    Who Entitled to Vote.  Except as the Articles of Association,
or amendment or amendments thereto otherwise provide, each shareholder of this
corporation shall at every meeting of the shareholders be entitled to one vote
in person or by proxy for each share of Common Stock of this corporation, held
by such shareholder, subject, however, to the full effect of the limitations
imposed by a fixed record date for determination of shareholders set forth in
Section 2 of this Article III.

     Section 2.    Record Date for Determination of Shareholders.  The Board of
Directors in each instance shall fix a date preceding (a) the date of any
meeting of shareholders, (b) the date for the payment of any dividends, (c) the
date for the allotment of rights, (d) the date when any change or conversion or
exchange of stock shall go into effect as the record date for the determination
of the shareholders entitled to notice of and to vote at any such meeting, or
entitled to receive payment of any such dividend, or to any such allotment of
rights, or to exercise the rights in respect of any such change, conversion or
exchange of common stock and in such case shareholders and only such
shareholders as shall be shareholders of record on the date so fixed shall be
entitled to such notice of, and to vote at, such meeting, or to receive payment
of such dividend, or to receive such allotment of rights, or exercise such
rights, as the case may be,


<PAGE>   4

notwithstanding any transfer of any stock on the books of the corporation or
otherwise after any such record date fixed as after any such record date fixed
as aforesaid.

     Section 3.    Proxies.  No proxy shall be deemed operative unless and until
signed by the shareholder and filed with the corporation.

     Section 4. Vote by Shareholder Corporation.  Any other corporation owning
voting share in this corporation may vote upon such shares, or by proxy
appointed by it, unless some other person shall be appointed to vote upon such
shares by resolution of the Board of Directors of such shareholder corporation.

     Section 5.    Inspectors of Election.  Whenever any person entitled to vote
at a meeting of the shareholders shall request the appointment of inspectors, a
majority of the shareholders present at such meeting and entitled to vote
thereat shall appoint not more than three inspectors, who need not be
shareholders.  If the right of any person to vote at such meeting shall be
challenged, the inspectors shall determine such right.  The inspectors shall
receive and count the vote either upon an election or for the decision of any
question and shall determine the result.  Their certificate of any vote shall
be prima facie evidence thereof.

                                 ARTICLE IV

                             Board of Directors

     Section 1.    Number and Term of Directors.  The business property and
affairs of this corporation shall be managed by a Board of Directors composed
of not less than seven (7), nor more than twenty-five (25) members.  No person
shall be eligible to the office of Director who is not the owner in his own
right of at least ten (10) shares of the capital stock of the corporation.  At
least a majority of the Directors shall be residents of the State of Michigan.

     Section 2.    Vacancies.  Any vacancy in the Board of Directors shall be
filled by appointment made by the remaining Directors, except that any vacancy
caused by reason of an increase in the number of Directors shall be filled by
the shareholders at an annual meeting, or at a special meeting called for that
purpose.  Each person so elected to fill a vacancy shall remain a Director
until his successor has been elected by the shareholders, who may make such
election at their next annual meeting or at a special meeting duly called for
that particular purpose held prior thereto.

     Section 3.    Action by Unanimous Written Consent.  If and when the
Directors shall severally or collectively consent in writing to any action to
be taken by the corporation, such action shall be as valid corporate action as
though it has been authorized at a meeting of the Board of Directors.


<PAGE>   5


     Section 4.    Power to Make By-Laws.  Subject to the provisions of the
Articles of Association, the Board of Directors shall have power to make and
alter any By-Laws or By-Law, including the fixing and altering of the number of
the Directors, provided that the Board shall not make or alter any By-Law or
By-Laws fixing the qualifications, classifications, or term of office of any
member or members of the then existing Board.

     Section 5.    Power to Elect Officers.  At the organization meeting of the
Board, provided for in Article I, Section 8 hereof, the Board of Directors
shall elect from their membership a President and may elect a Chairman of the
Board of Directors.  At such meeting, the Directors shall also elect one or
more Vice Presidents, a Secretary, and a Treasurer.  No officer except the
Chairman of the Board and the President need be a member of the Board of
Directors, but a Vice President who is not a Director shall not succeed to, nor
fill, the office of President.

     Section 6.    Power to Appoint Other Officers and Agents.  The Board of
Directors shall have power to appoint such other officers and agents as the
Board may deem necessary for transaction of the business of the corporation.

     Section 7.    Removal of Officers and Agents.  Any officer or agent may be
removed by the Board of Directors whenever in the judgement of the Board the
business interests of the corporation will be served thereby.

     Section 8.    Power to Fill Vacancies.  The Board shall have power to fill
any vacancy in any office occurring from any reason whatsoever.

     Section 9.    Delegation of Powers.  For any reason deemed sufficient by
the Board of Directors, whether occasioned by absence or otherwise, the Board
may delegate all or any of the powers and duties of any officer to any other
officer or Director, but no officer or Directors shall execute, acknowledge, or
verify any instrument in more one capacity.

     Section 10.   Power to Appoint Executive Committee.  The Board of Directors
shall have power to appoint by resolution an executive committee composed of
two or more Directors who, to the extent provided in such resolution, shall
have and exercise the authority of the Board of Directors in the management of
the business of the corporation between meetings of the Board.

     Section 11.   Power to Require Bonds.  The Board of Directors may require
any officer or agent to file with the corporation a satisfactory bond
conditioned for faithful performance of his duties.

     Section 12.   Compensation.  The Board of Directors shall fix the salaries
of all officers of the corporation.



<PAGE>   6


                                  ARTICLE V

                                  Officers

     Section 1.    Chairman of the Board.  The Board of Directors may select a
Chairman of the Board, who shall be selected by and from the membership of the
Board of Directors, and shall preside at all meetings of the shareholders,
directors, and the executive committee.  He shall also perform such other
duties as may be delegated to him from time to time by the Board of Directors
or the Executive Committee.

     Section 2.    President.  The President shall be selected by and from the
membership of the Board of Directors.  He shall be the Chief Executive Officer
of the corporation, and shall see that all orders and resolutions of the Board
are carried into effect.  He shall be ex-officio a member of all standing
committees, and shall have the general powers and duties of supervision and
management usually vested in the office of President and Chief Executive
Officer of a corporation.

     Section 3.    Vice President.  There shall be such Vice Presidents as shall
be chosen from time to time by the Board.  At least one Vice President shall be
chosen from the membership of the Board, who shall succeed to the office of
President in case of vacancy of such office.  Other Vice Presidents may be
selected by the Board from time to time with such authority and duties as shall
be prescribed by the Board.

     Section 4.    Secretary.  The Secretary shall attend all meetings of the
shareholders and of the Board of Directors, and of the executive committee, and
shall preserve in books of the corporation true minutes of the proceedings of
all such meetings.  He shall safely keep in his custody the seal of the
corporation and shall have authority to affix the same to all instruments where
its use is required.  He shall give all notices required by statue, By-Law, or
resolution.  He shall perform such other duties as may be delegated to him by
the Board of Directors or by the executive committee.

     Section 5.    Treasurer.  The Treasurer shall have custody of all corporate
funds and securities and shall keep in books belonging to the corporation full
and accurate accounts of all receipts and disbursements; he shall deposit all
moneys, securities and other valuable effects in the name of the corporation in
such depositories as may be ordered by the Board, taking proper vouchers for
such disbursements, and shall render to the President and Directors at the
regular meetings of the Board, and whenever requested by them, an account of
all his transactions as Treasurer and of the financial condition of the
corporation.  If required by the Board, he shall deliver to the President of
the corporation, and shall keep in force, a bond in form, amount and with a
surety or sureties satisfactory to the Board, conditioned for faithful
performance of the duties of his office, and for restoration to the corporation
in case of his death, resignation, retirement, or removal from office, of all
books, papers, vouchers, money and property of whatever kind in his possession
or under his control belonging to the corporation.



<PAGE>   7


     Section 6.    Assistant Secretary and Assistant Treasurer.  The Assistant
Secretary, in the absence or disability of the Secretary, shall perform the
duties and exercise the powers of the Secretary.  The Assistant Treasurer, in
the absence or disability of the Treasurer, shall perform the duties and
exercise the powers of the Treasurer.

     Section 7.    Other Officers.  Any other officers appointed by the Board of
Directors pursuant to Section 6 of Article IV hereof shall have such power and
perform such duties as shall be delegated to them by the Board of Directors.

                                 ARTICLE VI

                            Shares and Transfers

     Section 1.    Certificates for Shares.  Every shareholder shall be entitled
to a certificate of his shares signed by the President or a Vice President and
the Secretary or the Treasurer, or by the Assistant Secretary or the Assistant
Treasurer, under the seal of the corporation, certifying the number and class
of shares represented by such certificates; provided, that where such
certificate is signed (1) by a transfer agent or an assistant transfer agent or
(2) by a transfer clerk acting on behalf of the corporation, and a registrar,
the signature of any such President, Vice President, Secretary, Assistant
Secretary, Treasurer, or Assistant Treasurer, and the seal of the corporation,
may be a facsimile.

     Section 2.    Transfers of Stock.  Transfers of stock shall be made on the
books of the corporation only by the person named in certificate or by attorney
lawfully constituted in writing and upon surrender of the certificate therefor.

     Section 3.    Registered Shareholders.  The corporation shall have the
right to treat the registered holder of any share as the absolute owner
thereof, and shall not be bound to recognize any equitable or other claim to,
or interest in, such share on the part of any other person, whether or not the
corporation shall have express or other notice thereof save as may be otherwise
provided by the Statutes of Michigan.

     Section 4.    Lost Certificates.  In case of loss or destruction of any
certificate of stock, the owner shall not be entitled to receive a new
certificate in lieu thereof until proof satisfactory to the Secretary of such
loss or destruction is made and ample indemnity, by bond or otherwise, as the
President and Secretary may prescribe has been given to the company.  At the
option of the company, a new certificate may not be issued until sixty days
after notice of loss is received.  Any such new certificate, issued in lieu of
one lost or destroyed, shall be marked "Duplicate" on its face.

     Section 5.    Transfer Agent and Registrar.  The Board of Directors may
appoint a transfer agent and a registrar of transfers and may require all
certificates of shares to bear the signature of such transfer agent and of such
registrar of transfers, or as the Board may otherwise direct.



<PAGE>   8


     Section 6.    Regulations.  The Board of Directors shall have power and
authority to make all such rules and regulations as the Board shall deem
expedient regulating the issue, transfer and registration of certificates for
shares in this corporation.

                                 ARTICLE VII

                           Dividends and Reserves

     Section 1.    Sources of Dividends.  The Board of Directors shall have
power and authority to declare dividends from any source permitted by law.  In
determining earned surplus the judgment of the Board shall be conclusive in the
absence of bad faith or gross negligence.

     Section 2.    Manner of Payment of Dividend.  Dividends may be paid in
cash, in property, in obligations of the corporation, or in shares of the stock
of the corporation.

     Section 3.    Reserves.  The Board of Directors shall have power and
authority to set apart, out of any funds available for dividends, such reserve
or reserves, for any proper purpose, as the Board in its discretion shall
approve and the Board shall have power and authority to abolish any reserve
created by the Board.

                                ARTICLE VIII

                             Right of Inspection

     Section 1.    Inspection of List of Shareholders.  At least ten (10) days
before every election of Directors a complete list of shareholders entitled to
vote at such election shall be open to examination by any registered
shareholder entitled to vote at such election, provided that no shareholder
holding less than two (2%) per cent of the outstanding common stock of the
corporation shall be entitled to exercise such privilege of inspection in
advance of such meeting.

     Section 2.    Inspection of Books of Account and Stock Books.  The books of
account and stock books of this corporation shall be open to inspection at all
reasonable times and for any proper purpose by the shareholders, provided that
no shareholder holding of record in the aggregate less than two (2%) per cent
of the outstanding shares of such class of the stock of this corporation, and
no person, whatever his or her holdings, who has not been a shareholder of
record of this corporation for at least three (3) months prior to making such
application, shall be permitted to exercise such privilege of inspection,
except pursuant to resolution of the Board of Directors.


<PAGE>   9



                                 ARTICLE IX

                          Execution of Instruments

     Section 1.    Checks, Etc.  All checks, drafts, and orders for payment of
money shall be signed in the name of the corporation by such officers or agents
as the Board of Directors shall from time to time designate for that purpose.

     Section 2.    Contracts, Conveyances, Etc.  When the execution of any
contract, conveyance, or other instrument has been authorized without
specification of the executing officers, the President, or any Vice President,
and the Secretary, or Assistant Secretary, may execute the same in the name and
behalf of this corporation any may affix the corporate seal thereto.  The Board
of Directors shall have the power to designate the officers and agents who
shall have authority to execute any instrument in behalf of this corporation.

                                  ARTICLE X

                                    Seal

     The seal of this corporation shall be the seal, an imprint of which is
affixed to the margin of these Articles.

                                 ARTICLE XI

                  Indemnification of Directors and Officers

     This Corporation shall indemnify to the full extent permitted by law any
person who was or is a party or is threatened to be made a party to civil,
criminal, administrative or investigative, by reason of the fact that he or she
is or was a director, officer, employee or agent of the Corporation, or is or
was serving at the request of the Corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement actually and reasonably believed to be in or not
opposed to the best interests of the Corporation or its shareholders, and with
respect to any criminal action or proceeding, had no reasonable cause to
believe his or her contract was unlawful.  The foregoing right of
indemnification shall not be exclusive of other rights to which such person may
be entitled.


<PAGE>   10



                                  ARTICLE XII

                              Amendment of By-Laws

     These By-Laws may be amended, altered, changed, added to, or repealed, by
the majority vote of the Board of Directors.

                                ARTICLE XIII

                                 Fiscal Year

     The Fiscal Year of the corporation shall be determined and fixed from time
to time by the Board of Directors.





<PAGE>   1


                                                                  EX-99.B9-blazz

Blazzard, Grodd & Hasenauer, P.C.


ATTORNEYS AT LAW                 
                                  943 POST ROAD EAST * P.O. BOX 5108
NORSE N. BLAZZARD                 WESTPORT, CONNECTICUT 06881-5108
LESLIE E. GRODD                   TELEPHONE (203) 226-7866
JUDITH A. HASENAUER               FACSIMILE (203) 454-4206
WILLIAM E. HASENAUER           
RAYMOND A. O'HARA III             SUITE 213, OCEANWALK MALL
LYNN KORMAN STONE                 101 NORTH OCEAN DRIVE
                                  HOLLYWOOD, FLORIDA  33019
                                  TELEPHONE (305) 920-4004
                                  FACSIMILE (305) 920-6902
           
           
           
                                  April 25, 1996


Board of Directors
Jackson National Life Insurance Company
5901 Executive Drive
Lansing, MI  48911

     Re: Opinion of Counsel - Jackson National Separate Account - I

Gentlemen:

You have requested our Opinion of Counsel in connection with the filing with
the Securities and Exchange Commission of a Post-Effective Amendment to a
Registration Statement on Form N-4 for the Individual Deferred Fixed and
Variable Annuity Contracts (the "Contracts") to be issued by Jackson National
Life Insurance Company and its separate account, Jackson National Separate
Account - I.

We have made such examination of the law and have examined such records and
documents as in our judgment are necessary or appropriate to enable us to
render the opinions expressed below.

We are of the following opinions:

<PAGE>   2

     1.  Jackson National Life Insurance Company is a valid and existing stock
life insurance company of the state of Michigan.

     2.  Jackson National Separate Account - I is a separate investment account
of Jackson National Life Insurance Company created and validly existing
pursuant to the Michigan Laws and the Regulations thereunder.

     3.  Upon the acceptance of purchase payments made by an Owner pursuant to
a Contract issued in accordance with the Prospectus contained in the
Registration Statement and upon compliance with applicable law, such an Owner
will have a legally issued, fully paid, non-assessable contractual interest
under such Contract.

You may use this opinion letter, or a copy thereof, as an exhibit to the
Registration Statement.

We consent to the reference to our Firm under the caption "Legal Opinions"
contained in the Statement of Additional Information which forms a part of the
Registration Statement.

                                      Sincerely,
                                 
                                      BLAZZARD, GRODD & HASENAUER, P.C.
                                 
                                 
                                      By:   /s/ Judith A. Hasenauer
                                         -------------------------------
                                            Judith A. Hasenauer
                                 
                                 
                                 
                                 
                                 
                                 
                                 
                                 

<PAGE>   1
                                                           EXHIBIT 99B.10-pricew


                      CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 3 to the registration
statement on Form N-4 (the "Registration Statement") of our report dated
February 21, 1996, relating to the financial statements of Jackson National
Life Insurance Company, and of our report dated February 22, 1996, relating to
the financial statements of Jackson National Separate Account - I, which appear
in such Statement of Additional Information, and to the incorporation by
reference of our report into the Prospectus which constitutes part of this
Registration Statement.  We also consent to the reference to us under the
heading "Services" in such Statement of Additional Information and to the
reference to us under the heading "Condensed Financial Information" in such
Prospectus.


/s/ Price Waterhouse

PRICE WATERHOUSE LLP
Milwaukee, Wisconsin
April 25, 1996

<PAGE>   1
   
                                                            EXHIBIT 99.B13-perf
    


                    JACKSON NATIONAL SEPARATE ACCOUNT - I
                    SCHEDULE OF CALCULATION OF PERFORMANCE


   
<TABLE>
<S>                                                                                                 <C>
Yield:

PPM America/JNL Money Market Portfolio
This example illustrates the yield quotation for the PPM America/JNL Money
Market Portfolio for the seven-day period ended December 31, 1995:
Value of hypothetical pre-existing account with exactly one Accumulation
     Unit at the beginning of the period  ........................................                  $1.02292
Value of same account (excluding capital changes)
     at the end of the seven-day period  .........................................                  $1.02349
Net change in account value  .....................................................                  $0.00057
Base Period Return:
     Net change in account value divided by beginning account value                                 0.055723% 
Annualized Current Yield [0.055723% X (365/7) ....................................                      2.91%
                              365/7
Effective Yield (0.055723% +1)     -1  ...........................................                      2.95%


Other Portfolios
The following example illustrates the annualized current yield calculation for
the Salomon Brothers/JNL Global Bond Portfolio for the 30 day base period ended
December 31, 1995:
Dividends and interest earned by the Salomon Brothers/JNL Global Bond Series
     during the base period  .....................................................                  $43,136
Expenses accrued for the base period  ............................................                  $ 4,879
                                                                                                    -------

                                                                                                    $38,257(A)
                                                                                                    =======
Product of the maximum public offering price on the last day of the 
     base period and the average daily number of Shares outstanding 
     during the base period that were entitled to receive dividends 
     ($10.13 X 501,173.9218 Shares)= .............................................                  $5,076,892(B)
                                                                                                    ==========

Quotient of dividends and interest earned minus expenses accrued 
     divided by product of maximum public offering price 
     multiplied by average Shares outstanding (A divided by B) =                                    .7535587%(C)
                                                     6
Adding one and raising total to the 6th power (C + 1)  = .........................                  1.0460474(D)


Annualized current yield [2(D -1) X 100] = .......................................                       9.21%
Reducing the yield by the annual effective Mortality and Expense Charge 
     and the Administrative Charge (1.40%)  ......................................                       7.81%

</TABLE>
    

<PAGE>   2
Total Return:

   
Standardized
The following example illustrates the total return for the JNL Capital Growth
Portfolio of a hypothetical Contract invested in the JNL Capital Growth Series
of the JNL Series Trust from the date the Series was first available for
investment through December 31, 1995:
    
Hypothetical $1,000 initial investment on May 15, 1995................. $ 1,000
Ending redeemable value of the investment on December 31, 1995
       (after deferred sales charge and contract maintenance charge)    $ 1,251
Total return for the period is the difference between the ending
       redeemable value and the hypothetical $1,000 initial
       investment divided by the hypothetical $1,000 initial
       investment; the result is expressed in terms of a percentage
       (For example, 2 equals 200%)....................................   25.07%


Non Standardized
The following example illustrates the total return for the JNL Capital Growth
Portfolio of a hypothetical Contract invested in the JNL Capital Growth Series
of the JNL Series Trust from the date the Series was first available for
investment through December 31, 1995:
Hypothetical $10,000 initial investment on May 15, 1995................ $10,000
Ending redeemable value of the investment on December 31, 1995
       (after contract maintenance charge)............................. $13,231
Total return for the period is the difference between the ending
       redeemable value and the hypothetical $10,000 initial
       investment divided by the hypothetical $10,000 initial
       investment; the result is expressed in terms of a percentage
       (For example, 2 equals 200%)....................................   32.31%

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 1
   <NAME> JNL AGGRESSIVE GROWTH DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           38,398
<INVESTMENTS-AT-VALUE>                          39,018
<RECEIVABLES>                                    1,850
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  40,868
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            1
<TOTAL-LIABILITIES>                                  1
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    40,867
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      28
<NET-INVESTMENT-INCOME>                           (28)
<REALIZED-GAINS-CURRENT>                           216
<APPREC-INCREASE-CURRENT>                          620
<NET-CHANGE-FROM-OPS>                              808
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         48,063
<NUMBER-OF-SHARES-REDEEMED>                    (8,004)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                          40,867
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               10.2
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 2
   <NAME> JNL CAPITAL GROWTH DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           14,111
<INVESTMENTS-AT-VALUE>                          14,665
<RECEIVABLES>                                    1,750
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  16,415
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            1
<TOTAL-LIABILITIES>                                  1
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    16,414
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                       6
<NET-INVESTMENT-INCOME>                            (6)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                          554
<NET-CHANGE-FROM-OPS>                              548
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         15,872
<NUMBER-OF-SHARES-REDEEMED>                        (6)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                          16,414
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.34
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 3
   <NAME> JNL GLOBAL EQUITIES DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           49,163
<INVESTMENTS-AT-VALUE>                          50,054
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  50,054
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            2
<TOTAL-LIABILITIES>                                  2
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    50,052
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      25
<NET-INVESTMENT-INCOME>                           (25)
<REALIZED-GAINS-CURRENT>                             1
<APPREC-INCREASE-CURRENT>                          891
<NET-CHANGE-FROM-OPS>                              867
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         49,185
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                          50,052
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.48
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 4
   <NAME> JNL/ALGER GROWTH DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                          119,475
<INVESTMENTS-AT-VALUE>                         122,027
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 122,027
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            5
<TOTAL-LIABILITIES>                                  5
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   122,022
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      55
<NET-INVESTMENT-INCOME>                           (55)
<REALIZED-GAINS-CURRENT>                           201
<APPREC-INCREASE-CURRENT>                        2,552
<NET-CHANGE-FROM-OPS>                            2,698
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        129,147
<NUMBER-OF-SHARES-REDEEMED>                    (9,823)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         122,022
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               9.93
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 5
   <NAME> JNL/PHOENIX INVESTMENT COUNSEL BALANCED DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                          131,412
<INVESTMENTS-AT-VALUE>                         133,052
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 133,052
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            5
<TOTAL-LIABILITIES>                                  5
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   133,047
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      51
<NET-INVESTMENT-INCOME>                           (51)
<REALIZED-GAINS-CURRENT>                           (5)
<APPREC-INCREASE-CURRENT>                        1,640
<NET-CHANGE-FROM-OPS>                            1,584
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        136,362
<NUMBER-OF-SHARES-REDEEMED>                    (4,899)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         133,047
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.34
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 6
   <NAME> JNL/PHOENIX INVESTMENT COUNSEL GROWTH DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                            5,741
<INVESTMENTS-AT-VALUE>                           6,042
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                   6,042
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            0
<TOTAL-LIABILITIES>                                  0
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                     6,042
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                       8
<NET-INVESTMENT-INCOME>                            (8)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                          301
<NET-CHANGE-FROM-OPS>                              293
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          5,756
<NUMBER-OF-SHARES-REDEEMED>                        (7)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                           6,042
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.58
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 7
   <NAME> PPM AMERICA/JNL HIGH YIELD BOND DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                              999
<INVESTMENTS-AT-VALUE>                           1,011
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                   1,011
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            0
<TOTAL-LIABILITIES>                                  0
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                     1,011
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                       1
<NET-INVESTMENT-INCOME>                            (1)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                           12
<NET-CHANGE-FROM-OPS>                               11
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          1,000
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                           1,011
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.11
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 8
   <NAME> PPM AMERICA/JNL MONEY MARKET DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                          108,930
<INVESTMENTS-AT-VALUE>                         109,323
<RECEIVABLES>                                   37,260
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 146,583
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            4
<TOTAL-LIABILITIES>                                  4
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   146,579
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                     101
<NET-INVESTMENT-INCOME>                          (101)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                          393
<NET-CHANGE-FROM-OPS>                              292
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        196,208
<NUMBER-OF-SHARES-REDEEMED>                   (49,921)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         146,579
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.03
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 9
   <NAME> PPM AMERICA/JNL VALUE EQUITY DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           40,663
<INVESTMENTS-AT-VALUE>                          41,762
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  41,762
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            2
<TOTAL-LIABILITIES>                                  2
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    41,760
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      38
<NET-INVESTMENT-INCOME>                           (38)
<REALIZED-GAINS-CURRENT>                             6
<APPREC-INCREASE-CURRENT>                        1,099
<NET-CHANGE-FROM-OPS>                            1,067
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         41,909
<NUMBER-OF-SHARES-REDEEMED>                    (1,216)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                          41,760
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.59
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 10
   <NAME> SALOMON BROTHERS/JNL GLOBAL BOND DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           32,063
<INVESTMENTS-AT-VALUE>                          32,557
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  32,557
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            1
<TOTAL-LIABILITIES>                                  1
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    32,556
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      15
<NET-INVESTMENT-INCOME>                           (15)
<REALIZED-GAINS-CURRENT>                            12
<APPREC-INCREASE-CURRENT>                          494
<NET-CHANGE-FROM-OPS>                              491
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         33,080
<NUMBER-OF-SHARES-REDEEMED>                    (1,015)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                          32,556
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.41
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 11
   <NAME> SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           12,912
<INVESTMENTS-AT-VALUE>                          13,023
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  13,023
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            1
<TOTAL-LIABILITIES>                                  1
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    13,022
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      10
<NET-INVESTMENT-INCOME>                           (10)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                          111
<NET-CHANGE-FROM-OPS>                              101
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         12,921
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                          13,022
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                      0
<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.21
<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 12
   <NAME> T. ROWE PRICE/JNL ESTABLISHED GROWTH DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                          106,460
<INVESTMENTS-AT-VALUE>                         109,472
<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 109,472
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            4
<TOTAL-LIABILITIES>                                  4
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   109,468
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      76
<NET-INVESTMENT-INCOME>                           (76)
<REALIZED-GAINS-CURRENT>                             4
<APPREC-INCREASE-CURRENT>                        3,012
<NET-CHANGE-FROM-OPS>                            2,940
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        109,565
<NUMBER-OF-SHARES-REDEEMED>                    (3,037)
<SHARES-REINVESTED>                                  0
<NET-CHANGE-IN-ASSETS>                         109,468
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
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<PER-SHARE-NAV-BEGIN>                            10.00
<PER-SHARE-NII>                                      0
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<EXPENSE-RATIO>                                      0
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 13
   <NAME> T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENTS DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                           31,817
<INVESTMENTS-AT-VALUE>                          32,488
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<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  32,488
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                            1
<TOTAL-LIABILITIES>                                  1
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    32,487
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      21
<NET-INVESTMENT-INCOME>                           (21)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                          671
<NET-CHANGE-FROM-OPS>                              650
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         31,837
<NUMBER-OF-SHARES-REDEEMED>                          0
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<NET-CHANGE-IN-ASSETS>                          32,487
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
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<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                            10.00
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<EXPENSE-RATIO>                                      0
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<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<SERIES>
   <NUMBER> 14
   <NAME> T. ROWE PRICE/JNL MID-CAP GROWTH DIVISION
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             OCT-16-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                           48,457
<INVESTMENTS-AT-VALUE>                          49,496
<RECEIVABLES>                                    3,600
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<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    53,094
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                      29
<NET-INVESTMENT-INCOME>                           (29)
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                        1,039
<NET-CHANGE-FROM-OPS>                            1,010
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         52,084
<NUMBER-OF-SHARES-REDEEMED>                          0
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<NET-CHANGE-IN-ASSETS>                          53,094
<ACCUMULATED-NII-PRIOR>                              0
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<OVERDISTRIB-NII-PRIOR>                              0
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<PER-SHARE-NAV-BEGIN>                            10.00
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<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                            0
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<EXPENSE-RATIO>                                      0
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</TABLE>


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