485BPOS 1 d915662d485bpos.htm JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H John Hancock Life Insurance Company (U.S.A.) Separate Account H
Table of Contents
As filed with the Securities and Exchange Commission on April 24, 2020
Registration No. 333-70728
811-04113
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 50
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 328
John Hancock Life Insurance Company (U.S.A.) Separate Account H
(formerly, The Manufacturers Life Insurance Company (U.S.A.) Separate Account H)
(Exact name of Registrant)
John Hancock Life Insurance Company (U.S.A.)
(formerly, The Manufacturers Life Insurance Company (U.S.A.))
(Name of Depositor)
(617) 663-3000
(Depositor’s Telephone Number Including Area Code)
Copy to:
38500 Woodward Avenue
Bloomfield Hills, Michigan 48304 		Thomas J. Loftus, Esquire
John Hancock Life Insurance Company (U.S.A.)
200 Berkeley Street
Boston, MA 02116
(Address of Depositor’s Principal Executive Offices) (Name and Address of Agent for Service)
Title of Securities Being Registered: Variable Annuity Insurance Contracts
It is proposed that this filing will become effective:
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[X] on April 27, 2020, pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[ ] On
  pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment

Table of Contents
Venture® Variable Annuity Prospectus
Previously Issued Contracts
April 27, 2020
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may no longer receive paper copies of the shareholder reports for the Portfolios offered through your John Hancock variable annuity contract unless you specifically request paper copies from John Hancock. Instead, the shareholder reports will be made available on a website, and you will be notified by mail each time reports are posted and be provided with a website link to access those reports. If you have already elected to receive shareholder reports electronically, you will not be affected by this change, and you do not need to take any action.
Alternatively, you may request to receive reports in paper, free of charge, at any time, by calling John Hancock at 800-344-1029. Your election to receive reports in paper will apply to all Portfolios offered within your variable annuity contract.

 

Venture® Variable Annuity Prospectus
Previously Issued Contracts
April 27, 2020
This Prospectus describes interests in VENTURE® flexible Purchase Payment deferred combination Fixed and Variable Annuity contracts (singly, a “Contract” and collectively, the “Contracts”) issued by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”) in all jurisdictions except New York, or by John Hancock Life Insurance Company of New York (“John Hancock New York”) in New York. Unless otherwise specified, “we,” “us,” “our,” or a “Company” refers to the applicable issuing company of a Contract. You, the Contract Owner, should refer to the first page of your Venture® Variable Annuity Contract for the name of your issuing Company. Effective October 7, 2011, the Contracts are no longer offered for sale.
Variable Investment Options. You may allocate Contract Values or Additional Purchase Payments (to the extent permitted under your Contract) to Variable Investment Options. If you do, we will measure your Contract Value (other than amounts allocated to a Fixed Investment Option) and Variable Annuity payments according to the investment performance of applicable Subaccounts of John Hancock Life Insurance Company (U.S.A.) Separate Account H or, in the case of John Hancock New York, applicable Subaccounts of John Hancock Life Insurance Company of New York Separate Account A (singly, a “Separate Account” and collectively, the “Separate Accounts”). Each Subaccount invests in one of the following Portfolios that corresponds to one of the Variable Investment Options that we make available on the date of this Prospectus.
JOHN HANCOCK VARIABLE INSURANCE TRUST
500 Index Trust1
Active Bond Trust2
American Asset Allocation Trust2
American Global Growth Trust2
American Growth Trust2
American Growth-Income Trust2
American International Trust2
Blue Chip Growth Trust2
Capital Appreciation Trust2
Capital Appreciation Value Trust2
Core Bond Trust2
Disciplined Value International Trust2,3
Emerging Markets Value Trust2
Equity Income Trust1,4
Financial Industries Trust2
Fundamental All Cap Core Trust2
Fundamental Large Cap Value Trust2
Global Trust2
Health Sciences Trust2
High Yield Trust2
JOHN HANCOCK VARIABLE INSURANCE TRUST
International Equity Index Trust2,5
International Small Company Trust2
Investment Quality Bond Trust
Lifestyle Aggressive Portfolio2
Lifestyle Balanced Portfolio
Lifestyle Conservative Portfolio
Lifestyle Growth Portfolio
Lifestyle Moderate Portfolio
Managed Volatility Aggressive Portfolio2
Managed Volatility Balanced Portfolio
Managed Volatility Conservative Portfolio
Managed Volatility Growth Portfolio
Managed Volatility Moderate Portfolio
Mid Cap Index Trust2
Mid Cap Stock Trust2
Mid Value Trust2
Money Market Trust6
Opportunistic Fixed Income Trust2,7
Real Estate Securities Trust2
Science & Technology Trust2
Select Bond Trust
JOHN HANCOCK VARIABLE INSURANCE TRUST
Short Term Government Income Trust2
Small Cap Index Trust
Small Cap Opportunities Trust2
Small Cap Stock Trust
Small Cap Value Trust2
Small Company Value Trust2
Strategic Income Opportunities Trust2
Total Bond Market Trust
Total Stock Market Index Trust2
Ultra Short Term Bond Trust
BLACKROCK VARIABLE SERIES FUNDS, INC.
BlackRock Advantage U.S. Total Market V.I. Fund6,8
BlackRock Basic Value V.I. Fund6,8
BlackRock Global Allocation V.I. Fund6,8
PIMCO VARIABLE INSURANCE TRUST
PIMCO VIT All Asset Portfolio2,6
1 Not available with Contracts issued on or after November 23, 2009.
2 Not available with Contracts issued on or after November 23, 2009, or with Ven 1 Contracts (sold from June 1985 until June 1987).
3 Formerly International Value Trust.
4 Successor to Utilities Trust.
5 Successor to International Growth Stock Trust.
6 Subject to restrictions (see “V. Description of the Contract – Accumulation Period – Purchase Payments”).
7 Formerly Global Bond Trust.
8 Not available with John Hancock USA Contracts issued on or after January 28, 2002 or with any John Hancock New York Contract.
Contracts are not deposits or obligations of, or insured, guaranteed or endorsed by, any bank, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency. Please read this Prospectus carefully and keep it for future reference. It contains information about the Separate Accounts and Variable Investment Options that you should know before investing. The Contracts have not been approved or disapproved by the Securities and Exchange Commission (“SEC”). Neither the SEC nor any state has determined whether this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK
John Hancock Annuities Service Center John Hancock Annuities Service Center
Mailing Address Overnight Mail Address Mailing Address Overnight Mail Address
P.O. Box 55444
Boston, MA 02205-5444
www.jhannuities.com 		30 Dan Road – Suite 55444
Canton, MA 02021-2809
(800) 344-1029 		P.O. Box 55445
Boston, MA 02205-5445
www.jhannuities.com 		30 Dan Road – Suite 55444
Canton, MA 02021-2809
(800) 344-1029
0420:70385 Venture ®

 

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I.  Glossary
The following terms as used in this Prospectus have the indicated meanings. We also define other terms in specific sections of this Prospectus.
1940 Act: The Investment Company Act of 1940, as amended.
Accumulation Period: The period between the issue date of the Contract and the Annuity Commencement Date.
Additional Purchase Payment: Any Purchase Payment made after the initial Purchase Payment.
Adjusted Benefit Base: The Riders’ Benefit Base immediately after we adjust it during a Contract Year to reflect the value of Additional Purchase Payments that we add to the Benefit Base. See Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits.”
Age 65 Contract Anniversary: A term used with our guaranteed minimum withdrawal benefit Riders to describe the Contract Anniversary on, or next following, the date the Owner (older Owner with GMWB joint-life Riders) turns age 65.
Age 95 Contract Anniversary: A term used with our guaranteed minimum withdrawal benefit Riders to describe the Contract Anniversary on, or next following, the date the Covered Person or the older Owner, depending on the Rider, turns age 95.
Anniversary Value: A term used with our optional Annual Step-Up Death Benefit Rider that describes one of the values we use to determine the death benefit. See Appendix B: “Optional Enhanced Death Benefits.”
Annuitant: Any natural person or persons to whom annuity payments are made and whose life is used to determine the duration of annuity payments involving life contingencies. If the Contract Owner names more than one person as an Annuitant, the second person named is referred to as co-Annuitant. The Annuitant and co-Annuitant are referred to collectively as Annuitant. The Annuitant is as designated on the Contract specification page or in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period.
Annuities Service Center: The mailing address and overnight mail address of our service office are listed on the first page of this Prospectus.
Annuity Commencement Date: The date we/you annuitize your Contract. That is, the Pay-out Period commences and we begin to make annuity payments to the Annuitant. You can change the Annuity Commencement Date to any date after the Contract Date (at least one year after the Contract Date for John Hancock New York Contracts), and prior to the Maturity Date.
Annuity Option: The method selected by the Contract Owner (or as specified in the Contract if no selection is made) for annuity payments made by us.
Annuity Unit: A unit of measure that is used after the election of an Annuity Option to calculate Variable Annuity payments.
Asset Allocation Services: Programs offered by third parties in connection with the Contracts through which the third party may transfer amounts among Investment Options from time to time on your behalf.
Beneficiary: The person, persons or entity entitled to the death benefit under the Contract upon the death of a Contract Owner or, in certain circumstances, an Annuitant. The Beneficiary is as specified in the application, unless changed.
Benefit Base: A term used with our optional guaranteed minimum withdrawal benefit Riders to describe a value we use to determine one or more guaranteed withdrawal amounts under the Rider. A Benefit Base may be referred to as a “Guaranteed Withdrawal Balance” in the Rider you purchased. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Benefit Rate: A rate we use to determine a guaranteed withdrawal amount under the guaranteed minimum withdrawal benefit Rider. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Business Day: Any day on which the New York Stock Exchange is open for business. The end of a Business Day is the close of daytime trading on the New York Stock Exchange, which generally is 4:00 p.m. Eastern Time.
Code: The Internal Revenue Code of 1986, as amended.
Company: John Hancock USA or John Hancock New York, as applicable.
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Contingent Beneficiary: The person, persons or entity to become the Beneficiary if the Beneficiary is not alive. The Contingent Beneficiary is as specified in the application for a Contract, unless changed.
Contract: The fixed and variable annuity contract described by this Prospectus. If you purchased this annuity under a group contract, a Contract means the certificate issued to you under the group contract.
Contract Anniversary: The day in each calendar year after the Contract Date, that is the same month and day as the Contract Date
Contract Date: The date of issue of the Contract.
Contract Value: The total of the Investment Account values and, if applicable, any amount in the Loan Account attributable to the Contract.
Contract Year: A period of twelve consecutive months beginning on the date as of which the Contract was issued, or any anniversary of that date.
Covered Person(s): A term used with our optional guaranteed minimum withdrawal benefit Riders to describe an individual (or individuals) whose lifetime(s) we use to determine the duration of any guaranteed lifetime income amounts under a guaranteed minimum withdrawal benefit Rider. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Credit: A term used with most of our optional guaranteed minimum withdrawal benefit Riders to describe a potential way to increase the Benefit Base that we may apply during one or more Credit Periods. A Credit may be referred to as a “Bonus” or “Target Amount” in the Rider you purchased. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Credit Period: A term used with most of our guaranteed minimum withdrawal benefit Riders to describe the period of time we use to measure the availability of Credits. A Credit Period may be referred to as a “Bonus Period,” “Lifetime Income Bonus Period,” or the period ending on a “Target Date” in the Rider you purchased. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Credit Rate: The rate that we use to determine a Credit, if any, under a guaranteed minimum withdrawal benefit Rider. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Debt: Any amounts in the Loan Account attributable to the Contract plus any accrued loan interest. The loan provision is applicable to certain Qualified Contracts only.
Excess Withdrawal: A term used with most of our optional guaranteed minimum withdrawal benefit Riders to describe a withdrawal that exceeds certain limits under the Rider. During periods of declining investment performance, Excess Withdrawals may cause substantial reductions to or loss of guaranteed minimum withdrawal benefits. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Financial Account Plan: A method of making periodic Additional Purchase Payments automatically through a bank account, brokerage account or other account you hold at a similar financial institution.
Fixed Annuity: An Annuity Option with payments for a set dollar amount that we guarantee.
Fixed Investment Option: An Investment Option in which a Company guarantees the principal value and the rate of interest credited to the Investment Account for the term of any guarantee period.
General Account: All of a Company’s assets, other than assets in its Separate Account and any other separate accounts it may maintain.
Good Order: The standard that we apply when we determine whether an instruction is satisfactory. An instruction is considered in Good Order if it is received at our Annuities Service Center: (a) in a manner that is satisfactory to us such that it is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction and it complies with all relevant laws and regulations and Company requirements; (b) on specific forms, or by other means we then permit (such as via telephone or electronic submission); and/or (c) with any signatures and dates we may require. We will notify you if an instruction is not in Good Order.
Investment Account: An account we establish for you which represents your interests in an Investment Option during the Accumulation Period.
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Investment Options: The investment choices available to Contract Owners.
John Hancock New York: John Hancock Life Insurance Company of New York.
John Hancock USA: John Hancock Life Insurance Company (U.S.A.).
Lifetime Income Amount: A term used with most of our guaranteed minimum withdrawal benefit Riders that generally describes an amount we guarantee to be available for withdrawal during the Accumulation Period based on the lives of one or more Covered Persons. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details
Lifetime Income Date: A term used with most of our guaranteed minimum withdrawal benefit Riders that generally describes the date on which we determine the initial Lifetime Income Amount. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Loan Account: The portion of our General Account that we use as collateral for a loan under certain Qualified Contracts.
Maturity Date: The latest allowable Annuity Commencement Date under your Contract. That is, the last date (unless we consent to a later date) on which the Pay-out Period commences and we begin to make annuity payments to the Annuitant. The Maturity Date is the date specified on the Contract specifications page, unless changed with our consent.
Nonqualified Contract: A Contract which is not issued under a Qualified Plan.
Owner or Contract Owner (“you”): The person, persons (co-Owners) or entity entitled to all of the ownership rights under the Contract. References in this Prospectus to Contract Owners are typically by use of “you.” The Owner has the legal right to make all changes in contractual designations where specifically permitted by the Contract. The Owner is as specified in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period.
Pay-out Period: The period when we make annuity payments to the Annuitant following the Annuity Commencement Date.
Payroll Plan: A method of making periodic Additional Purchase Payments through a payroll deduction plan.
Portfolio: A series of a registered open-end management investment company which corresponds to a Variable Investment Option.
Prospectus: This prospectus that describes interests in the Contracts.
Purchase Payment: An amount you pay to us for the benefits provided by the Contract.
Qualified Contract: A Contract issued under a Qualified Plan.
Qualified Plan: A retirement plan that receives favorable tax treatment under section 401, 403, 408 (IRAs), 408A (Roth IRAs) or 457 of the Code.
Reset: A reduction of the Benefit Base or Guaranteed Withdrawal Balance, as appropriate, if you take an Excess Withdrawal (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”).
Rider: An optional benefit that you may have elected for an additional charge.
Separate Account: John Hancock Life Insurance Company (U.S.A.) Separate Account H or John Hancock Life Insurance Company of New York Separate Account A, as applicable. Each Separate Account is a segregated asset account of a Company that is not commingled with the general assets and obligations of the Company.
Settlement Phase: A term used with our optional guaranteed minimum withdrawal benefit Riders to describe the period when your Contract Value is equal to zero and we automatically begin making payments to you under the Rider, subject to the conditions described in the Rider. During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Spouse: Any person recognized as a “spouse” in the state where the couple was legally married. The term does not include a party to a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under that state’s law.
Step-Up: A term used with some of our optional benefit Riders to describe a potential way to increase the amounts guaranteed under that Rider on certain Contract Anniversary dates when your Contract Value exceeds a previously determined amount. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details on
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Step-Ups of the Benefit Base under a guaranteed minimum withdrawal benefit Rider, and (where applicable) Appendix D: “Optional Guaranteed Minimum Income Benefits” for more details on Step-Ups of the Income Base under a guaranteed minimum income benefit Rider.
Step-Up Date: The date on which we determine whether a Step-Up could occur.
Subaccount: A separate division of the applicable Separate Account.
Unliquidated Purchase Payments: The amount of all Purchase Payments in the Contract net of any withdrawals in excess of the free Withdrawal Amount that have been taken to date.
Unpaid Loan: The unpaid amount (including any accrued interest) of loans a Qualified Contract Owner may have taken from us, using certain Contract Value as collateral.
Variable Annuity: An Annuity Option with payments which: (1) are not predetermined or guaranteed as to dollar amount, and (2) vary in relation to the investment experience of one or more specified Subaccounts.
Variable Investment Option: An Investment Option corresponding to a Subaccount of a Separate Account that invests in shares of a specific Portfolio.
Withdrawal Amount: The total amount taken from your Contract Value, including any applicable withdrawal charge, tax and proportional share of administrative fee, to process a withdrawal.
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II.  Overview
This overview tells you some key points you should know about the Contract. Because this is an overview, it does not contain all the information that may be important to you. You should read carefully this entire Prospectus, including its Appendices, and the Statement of Additional Information (“SAI”) for more detailed information.
We disclose all material features and benefits of the Contracts in this Prospectus. Insurance laws and regulations apply to us in every state in which the Contracts were sold. As a result, a Contract purchased in one state may have terms and conditions that vary from the terms and conditions of a Contract purchased in a different jurisdiction. We disclose all material variations in this Prospectus.
What kind of Contract is described in this Prospectus?
Each Contract is a flexible Purchase Payment deferred combination Fixed and Variable Annuity Contract between you and a Company. “Deferred” means payments by a Company begin on a future date under a Contract. “Variable” means amounts in a Contract may increase or decrease in value daily based upon your Contract’s Variable Investment Options. A Contract provides for the accumulation of these investment amounts and the payment of annuity benefits on a variable and/or fixed basis. Depending on state requirements, we may have issued the Contract under a master group contract.
This Prospectus primarily describes features of our previously issued versions of the Venture® Contract. We describe several versions of the Venture® Contract, which we may refer to as Venture® 2006 (available May 1, 2006 – October 7, 2011, subject to state availability), Ven 20, or Ven 22 (available May 1, 1998 – November 20, 2006, subject to state availability) and Ven 24 (available May 1999 – May 2006 in New York only). This Prospectus also describes certain older versions of the Contract, including Ven 8 (sold from September 1992 until February 1995) and Ven 9 (sold only in New York from November 1992 – May 1999), Ven 7 (sold from August 1989 until April 1999), Ven 3 (sold from November 1986 until October 1993), and Ven 1 (sold from June 1985 until June 1987). The principal differences between the recent versions of the Contract and the prior Contracts relate to the Investment Options available under the Contracts, charges we impose, death benefit provisions and, in the case of Ven 7 and Ven 8 Contracts, a minimum interest rate to be credited for any guarantee period under the fixed portion of the Contract.
Who issued my Contract?
Your Contract provides the name of the Company that issued your Contract. John Hancock USA issued the Contract in all jurisdictions except New York. John Hancock New York issued the Contract only in New York. Each Company sponsors its own Separate Account.
What are some benefits of the Contract?
The Contract offers access to Variable Investment Options, tax-deferred treatment of earnings during the Accumulation Period, and the ability to receive annuity payments at a future date. We will pay a death benefit to your Beneficiary if you die during the Accumulation Period. The amount of the death benefit will vary based on your age at death and how long the Contract has been issued to you. The death benefit amount will be less any amounts deducted in connection with any withdrawals.
We offer a variety of Fixed Annuity and Variable Annuity payment options. Periodic annuity payments begin on the Annuity Commencement Date. You select the Annuity Commencement Date, the frequency of payment and the type of annuity payment option. Annuity payments are made to the Annuitant. We provide more information about payout benefits in “V. Description of the Contract – Pay-out Period Provisions.”
In most cases, no income tax will have to be paid on your earnings under the Contract until these earnings are paid out. If you purchased a Contract for any Qualified Plan, the Contract does not provide any additional tax-deferred treatment of earnings beyond the treatment provided by the plan.
The Contract provides optional death benefits and optional guaranteed minimum withdrawal benefits, each for an additional fee. These optional benefits were available only at the time you purchased your Contract. We provide more information about these benefits under Appendix B: “Optional Enhanced Death Benefits” and Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits.”
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How does the Contract work?
Under the Contract, you make one or more Purchase Payments to the Company for a period of time, known as the Accumulation Period. During the Accumulation Period, your Purchase Payments are allocated to Investment Options. You may transfer among the Investment Options and take withdrawals. Later, beginning on the Annuity Commencement Date, the Company makes one or more annuity payments under the Contract for a period of time, known as the Pay-out Period. Your Contract Value during the Accumulation Period is variable, and the amounts of annuity payments during the Pay-out Period may either be variable or fixed, depending upon your choice.
Can I invest more money (i.e., make Additional Purchase Payments) in the Contract?
That depends. We accept Additional Purchase Payments for the Contract only in a limited number of circumstances, and you may be unable to make an Additional Purchase Payment.
Contracts with Guaranteed Minimum Withdrawal Benefit Riders. We impose restrictions on Additional Purchase Payments for Contracts issued with one of our guaranteed minimum withdrawal benefit Riders (see “V. Description of the Contract – Purchase Payments”).
Contracts without Guaranteed Minimum Withdrawal Benefit Riders. The minimum Additional Purchase Payment we accept is $30 without our prior approval. You must obtain our prior approval if an Additional Purchase Payment to any Contract would cause the Contract Value to exceed $1 million, or if your Contract Value already exceeds $1 million. All Additional Purchase Payments must be in U.S. dollars and paid to our Annuities Service Center.
Contracts Issued for Use With Tax-Qualified Retirement Plans. This is no longer the law for IRAs. Restrictions may apply for Contracts issued for use in a retirement plan intended to qualify under section 403(b) of the Code.
Annuity Pay-out Period. No Additional Purchase Payments may be made for any Contract during the Pay-out Period (see “V. Description of the Contract – Pay-out Period Provisions”).
What charges do I pay under the Contract?
Your Contract has an annual Contract fee of $30. Your Contract’s asset-based charges compensate us primarily for our administrative expenses and for the mortality and expense risks that we assume under the Contract. These charges do not apply to Contract Value you have in our Fixed Investment Option. We take the deduction proportionally from each Variable Investment Option you are then using. We make deductions for any applicable taxes based on the amount of a Purchase Payment. If you elect a Rider, we also deduct the Rider charges shown in the Fee Tables proportionally from each of your Investment Options based on your value in each.
If you withdraw some of your Purchase Payments from your Contract prior to the Annuity Commencement Date (including withdrawals under a guaranteed minimum withdrawal benefit Rider), or if you surrender your Contract in its entirety for cash prior to the Annuity Commencement Date, we may assess a withdrawal charge. The amount of this charge depends on the number of years that have passed since we received your Purchase Payments, as shown in the Fee Tables. The Fee Tables also describe charges and expenses of underlying Portfolios.
What are my investment choices?
Although your Contract allows us to offer both Fixed and Variable Investment Options, we currently offer only Variable Investment Options for Additional Purchase Payments.
Variable Investment Options. Each Variable Investment Option is a Subaccount of a Separate Account that invests solely in a corresponding Portfolio. The Portfolio prospectuses contain full descriptions of the Portfolios. The amount you’ve invested in any Variable Investment Option will increase or decrease based upon the investment performance of the corresponding Portfolio (reduced by certain charges we deduct – see “III. Fee Tables”). Your Contract Value during the Accumulation Period and the amounts of annuity payments will depend upon the investment performance of the underlying Portfolio of the Variable Investment Option you select.
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In selecting Variable Investment Options under a Contract, you should consider:
•  You bear the investment risk that your Contract Value will increase or decrease to reflect the results of your Contract’s investment in underlying Portfolios. We do not guarantee Contract Value in a Variable Investment Option or the investment performance of any Portfolio.
•  Although the Portfolios may invest directly in securities or indirectly, through other underlying funds, you will not have the ability to determine the investment decisions or strategies of the Portfolios.
Restrictions on the Money Market Investment Option. You are not permitted to make new investments in the Money Market Investment Option. Transfers of amounts from other Investment Options into the Money Market Investment Option also are not permitted. If you currently have Contract Value in the Money Market Investment Option, you may continue to keep that Contract Value in Money Market, but any transfer or withdrawal from the Money Market cannot be replaced (please refer to “V. Description of the Contract – Purchase Payments”).
Restrictions on the BlackRock and PIMCO Investment Options. You are not permitted to make new investments in the BlackRock Advantage U.S. Total Market Investment Option, BlackRock Basic Value Investment Option, BlackRock Global Allocation Investment Option, or the PIMCO VIT All Asset Portfolio Investment Option. Transfers of amounts from other Investment Options into these Investment Options also are not permitted. If you currently have Contract Value in the BlackRock Advantage U.S. Total Market Investment Option, BlackRock Basic Value Investment Option, BlackRock Global Allocation Investment Option, or the PIMCO VIT All Asset Portfolio Investment Option, you may continue to keep that Contract Value in those Investment Options, but any transfer or withdrawal from them cannot be replaced (please refer to “V. Description of the Contract – Purchase Payments”).
Fixed Investment Options. Currently, we do not make any Fixed Investment Options available for Additional Purchase Payments. However, you may previously have allocated some or all of your Contract Value to a Fixed Investment Option, and we may, in the future, make Fixed Investment Options available for Additional Purchase Payments under the Contract. Also, some Contracts may still be able to transfer existing money from their Variable Investment Options into a Fixed Investment Option. See “V. Description of the Contract – Fixed Investment Options” for additional information. Where available, Fixed Investment Options earn interest at rates we set. Interest rates depend upon the length of the guarantee periods of the Fixed Investment Options. Under a Fixed Investment Option, we guarantee the principal value of Purchase Payments and the rate of interest credited to your Investment Account for the term of any guarantee period we make available. Although we do not currently offer a DCA Fixed Investment Option, we may make one available in the future. Please see “V. Description of the Contract – Special Transfer Services – Dollar Cost Averaging” for details.
How can I change my investment choices?
Allocation of Purchase Payments. You designate how you would like your Purchase Payments to be allocated among the Variable Investment Options available under your Contract. You may change this investment allocation for Additional Purchase Payments (to the extent permitted under the Contract and not subject to restrictions) at any time.
Transfers Among Investment Options. During the Accumulation Period, you may transfer your investment amounts among Investment Options without charge, subject to certain restrictions described below and in “V. Description of the Contract –
Transfers Among Investment Options.” During the Pay-out Period, you may transfer your allocations among the Variable Investment Options, subject to certain restrictions described in “Transfers During the Pay-out Period.”
The Variable Investment Options can be a target for abusive transfer activity. To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict Owner-initiated transfers to two per calendar month per Contract, with certain exceptions described in more detail in “V. Description of the Contract – Transfers Among Investment Options.” We apply each Separate Account’s policy and procedures uniformly to all Contract Owners.
In addition to the transfer restrictions that we impose, the John Hancock Variable Insurance Trust, BlackRock Variable Series Funds, Inc. and PIMCO Variable Insurance Trust also have adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short- term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to a Portfolio upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy.
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Transfers Between Annuity Options. During the Pay-out Period, you may not transfer from a Variable Annuity Option to a Fixed Annuity Option, or from a Fixed Annuity Option to a Variable Annuity Option (see “V. Description of the Contract – Transfers During the Pay-out Period”).
How do I access my money?
During the Accumulation Period, you may withdraw all or a portion of your Contract Value. The amount you withdraw from any Investment Option must be at least $300 or, if less, your entire balance in that Investment Option. If a withdrawal plus any applicable withdrawal charge would reduce your Contract Value to less than $300, we may treat your withdrawal request as a request to withdraw all of your Contract Value. A withdrawal charge and an administration fee may apply to your withdrawal (See “VI. Charges and Deductions – Withdrawal Charges”). Withdrawals from Contracts with a guaranteed minimum withdrawal benefit Rider may affect the benefits under the Rider (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”). A withdrawal may also be subject to income tax and a 10% penalty tax.
What types of optional benefit Riders may have been available to me under the Contract?
This Prospectus provides information about optional benefit Riders that you may have elected when you purchased a Contract. These Riders may not have been available in all states, may not have been available for all versions of the Contract, and may not have been available when you purchased the Contract. If you elected any of these Riders, you pay the additional charge shown in the Fee Tables. You should review your Contract carefully to determine which of the following optional benefit Riders, if any, you purchased.
We describe the following optional benefit Riders in the Appendices to this Prospectus:
Appendix B: Optional Enhanced Death Benefits
•  Guaranteed Earnings Multiplier Death Benefit;
•  Triple Protection Death Benefit;
•  Enhanced Death Benefit (Ven 7 and Ven 8 only); and
•  Annual Step-Up Death Benefit (Venture® 2006 only).
Appendix C: Optional Guaranteed Minimum Withdrawal Benefits
•  Income Plus For Life® 1.11;
•  Income Plus For Life – Joint Life® 1.11;
•  Income Plus For Life® 5.09;
•  Income Plus For Life – Joint Life® 5.09;
•  Income Plus For Life® 12.08;
•  Income Plus For Life – Joint Life® 12.08;
•  Income Plus For Life® (Quarterly Step-Up Review);
•  Income Plus For Life – Joint Life® (Quarterly Step-Up Review);
•  Income Plus For Life® (Annual Step-Up Review);
•  Income Plus For Life – Joint Life® (Annual Step-Up Review);
•  Principal Plus;
•  Principal Plus for Life;
•  Principal Plus for Life Plus Automatic Annual Step-Up;
•  Principal Plus for Life Plus Spousal Protection; and
•  Principal Returns.
We use the term “Income Plus For Life® Series Riders” in the Prospectus to refer to all ten Income Plus For Life® Riders, i.e., Income Plus For Life® (Annual Step-Up Review); Income Plus For Life – Joint Life® (Annual Step-Up Review); Income Plus For Life® (Quarterly Step-Up Review); Income Plus For Life – Joint Life® (Quarterly Step-Up Review); Income Plus
8

 

For Life® 12.08; Income Plus For Life – Joint Life® 12.08; Income Plus For Life® 5.09; Income Plus For Life – Joint Life® 5.09; Income Plus For Life® 1.11; and Income Plus For Life – Joint Life® 1.11.
If you elected to purchase any of these guaranteed minimum withdrawal benefit Riders, you may invest your Contract Value only in the Investment Options we make available for these benefits (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”). We also reserve the right to impose additional restrictions on Investment Options at any time.
Appendix D: Optional Guaranteed Minimum Income Benefits
•  Guaranteed Retirement Income Programs – offered by John Hancock USA;
•  Guaranteed Retirement Income Programs – offered by John Hancock New York.
Payment Enhancement Rider. If you purchased your Contract in New York, John Hancock New York offered a Payment Enhancement optional benefit Rider. Under this Rider, John Hancock New York credits a Payment Enhancement equal to 4% (5% for Contracts issued between July 12 and October 30, 2004, or between October 16, 2006 and November 9, 2007) of the Purchase Payment and allocates it among Investment Options in the same proportions as your Purchase Payments. Contracts with this feature are subject to a higher withdrawal charge that applies for a longer period of time. The Payment Enhancement Rider was not available for Contracts issued before January 2001 or on or after November 12, 2007. When available, it could only be elected at Contract issue, and it cannot be revoked once elected.
What are the tax consequences of owning a Contract?
In most cases, no income tax will have to be paid on amounts you earn under a Contract until these earnings are paid out. All or part of the following distributions from a Contract may constitute a taxable payout of earnings:
•  withdrawals (including surrenders and systematic withdrawals);
•  payment of any death benefit proceeds;
•  periodic payments under one of our annuity payment options;
•  certain ownership changes; and
•  any loan, assignment or pledge of the Contract as collateral.
How much you will be taxed on distribution is based upon complex tax rules and depends on matters such as:
•  the type of the distribution;
•  when the distribution is made;
•  the nature of any Qualified Plan for which the Contract is being used; and
•  the circumstances under which the payments are made.
If your Contract was issued in connection with a Qualified Plan, all or part of your Purchase Payments may be tax-deductible or excludible from income.
A 10% penalty tax applies in many cases to the taxable portion of any distributions from a Contract before you reach age 59½. Also, most Qualified Plans require that minimum distributions from a Contract commence and/or be completed within a certain period of time. This effectively limits the period of time during which you can continue to derive tax deferral benefits from any tax-deductible or tax-deferred Purchase Payments you made or on any earnings under the Contract.
A Contract purchased as an investment vehicle for a Qualified Plan, including an IRA, does not provide any additional tax-deferral benefits beyond the treatment provided by the Qualified Plan. The favorable tax benefits available for Qualified Plans that invest in annuity contracts are also generally available if the Qualified Plan purchases other types of investments, such as mutual funds, equities and debt instruments. However, the Contract offers features and benefits that other investments may not offer, including the Investment Options and protection through living guarantees, death benefits and other benefits. Please note that federal tax law changes in the 2019 SECURE Act now limit certain annuitization and beneficiary payout options for contracts held as part of a Qualified Plan, including an IRA. Purchasers of Contracts for use with any retirement plan should consult with a qualified tax professional. We provide additional information on taxes in “VII. Federal Tax Matters.” We make no attempt to provide more than general information about use of the Contract with the various types of retirement plans.
9

 

Do I receive Transaction Confirmations?
We send you a confirmation statement for certain transactions in your Investment Accounts. Please review these transaction confirmations carefully to verify their accuracy. Please report any mistakes immediately to our Annuities Service Center (at the address or phone number shown on the first page of this Prospectus). If you fail to notify our Annuities Service Center of any mistake within 60 days of the delivery of the transaction confirmation, you will be deemed to have ratified the transaction. If you have not already done so, please register for electronic delivery of your transaction confirmations by contacting the John Hancock Annuities Service Center at the applicable telephone number or internet address shown on the first page of this Prospectus for more information on electronic transactions.
10

 

III.  Fee Tables
The following tables describe the fees and expenses applicable to buying, owning and surrendering a Venture® Contract. The tables also describe the fees and expenses for older versions of the Venture® Contracts, as well as information about optional benefit Riders that were available for certain time periods. The items listed under “Contract Owner Transaction Expenses” and “Periodic Fees and Expenses Other than Portfolio Expenses” are more completely described under “VI. Charges and Deductions.” The items listed under “Total Annual Portfolio Operating Expenses” are described in detail in the Portfolios’ prospectuses. Unless otherwise shown, the tables entitled “Contract Owner Transaction Expenses” and “Periodic Fees and Expenses Other than Portfolio Expenses” show the maximum fees and expenses (including fees deducted from Contract Value for optional benefits).
The following table describes the fees and expenses that you pay at the time you withdraw Contract Values or surrender the Contract (or potentially when you transfer Contract Value between Investment Options). State premium taxes may also be deducted.
Contract Owner Transaction Expenses1
John Hancock USA
Withdrawal Charge
(as percentage of Purchase Payments)2 		Ven 20, 22, 2006 Ven 7, Ven 8 Ven 1, Ven 3
First Year 6% 6% 5%
Second Year 6% 6% 5%
Third Year 5% 5% 5%
Fourth Year 5% 4% 5%
Fifth Year 4% 3% 5%
Sixth Year 3% 2% 0%
Seventh Year 2% 0% 0%
Thereafter 0% 0% 0%
Transfer Fee3
Maximum Fee $25 $0 $25
Current Fee $0 $0 $0
John Hancock New York
Withdrawal Charge
(as percentage of Purchase Payments)2 		Ven 24, 2006
(With Payment
Enhancement) 		Ven 24, 2006
(Without Payment
Enhancement) 		Ven 9
First Year 8% 6% 6%
Second Year 8% 6% 6%
Third Year 7% 5% 5%
Fourth Year 7% 5% 4%
Fifth Year 5% 4% 3%
Sixth Year 4% 3% 2%
Seventh Year 3% 2% 0%
Eighth Year 1% 0% 0%
Thereafter 0% 0% 0%
Transfer Fee3
Maximum Fee $25 $25 $25
Current Fee $0 $0 $0
1 State premium taxes, which currently range from 0.04% to 4.00% of each Purchase Payment (see “VI. Charges and Deductions – Premium Taxes”), may also apply to your Contract.
2 The charge is taken upon withdrawal or surrender on a first-in, first-out basis within the specified period of years measured from the date of each Purchase Payment. We calculate the amount of the withdrawal charge by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage shown above. The total withdrawal charge will be the sum of the withdrawal charges for the Purchase Payments being liquidated.
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3 This fee is not currently assessed against transfers. We reserve the right to impose a charge in the future for transfers in excess of 12 per year. The amount of this fee will not exceed the lesser of $25 or 2% of the amount transferred.
The following table describes fees and expenses that you pay periodically during the time that you own the Contract. These tables do not include annual Portfolio operating expenses.
Periodic Fees and Expenses Other than Portfolio Expenses
John Hancock USA
    Venture ® 2006   Ven 20, 22   Ven 3, Ven 7
and Ven 8 		  Ven 1  
Annual Contract Fee1   $30   $30   $30   $30  
Annual Separate Account Expenses2
(as a percentage of Contract Value in the Variable Investment Options) 		  Contract Years
1-7 		  Contract Years
8+ 		             
Mortality and Expense Risks Fee3   1.00%   0.85%   1.25%   1.25%   1.30%  
[cta:hrule]Administration Fee – asset based   0.15%   0.15%   0.15%   0.15%   0.00%  
Total Annual Separate Account Expenses2
(With No Optional Benefits Reflected) 		  1.15%   1.00%   1.40%   1.40%   1.30%  
Optional Benefits   Contract Years
1-7 		  Contract Years
8+ 		             
Fees deducted from Separate Account:                      
Optional Guaranteed Earnings Multiplier Fee   not offered   not offered   0.20%   not offered   not offered  
Optional Annual Step-Up Death Benefit Fee   0.20%   0.20%   not offered   not offered   not offered  
Total Annual Separate Account Expenses4
(With Optional Benefits reflected, as applicable) 		  1.35%   1.20%   1.60%   1.40%   1.30%  
Fees Deducted from Contract Value:                      
Optional Guaranteed Minimum Withdrawal Benefit Rider Fee (maximum)5   1.20%   1.20%   1.20%   not offered   not offered  
Optional Guaranteed Retirement Income Programs
(as a percentage of Income Base)6 		  not offered   not offered   0.50%   not offered   not offered  
Optional Triple Protection Death Benefit
(as a percentage of Triple Protection Death Benefit)7 		  not offered   not offered   0.50%   not offered   not offered  
1 The $30 annual Contract Fee will not be assessed prior to the Maturity Date under a Venture® Contract if at the time of its assessment the Contract Value is greater than or equal to $99,000. This provision does not apply to Ven 1, Ven 3, Ven 7 or Ven 8 Contracts.
2 We deduct from each of the Subaccounts a daily charge at an annual effective percentage of the Contract Value in the Variable Investment Options.
3 This charge is assessed on all active Contracts, including Contracts continued by a Beneficiary upon the death of the Contract Owner.
4 Amount shown includes the Mortality and Expense Risks Fee, Administration Fee as well as the Optional Guaranteed Earnings Multiplier Fee and the optional Annual Step-Up Death Benefit Fee, as applicable.
5 See the chart below for the current and maximum fees for each guaranteed minimum withdrawal benefit Rider. This fee is deducted from the Contract Value.
   
  This is an annual charge applied as a percentage of the Adjusted Benefit Base (for the Income Plus For Life® Series Riders), and as a percentage of the Adjusted Guaranteed Withdrawal Balance (for the Principal Plus Rider, the Principal Plus for Life Series Riders, and the Principal Returns Rider).
6 Guaranteed Retirement Income Programs could not be purchased if you elected to purchase Principal Plus or Principal Plus for Life. Availability varied by state and when you purchased your Contract. See Appendix D: “Optional Guaranteed Minimum Income Benefits” for availability.
7 Subject to state availability, the Triple Protection Death Benefit was offered from December 2003 through December 2004. This optional benefit could not be purchased, however, if you elected to purchase Principal Plus, Guaranteed Retirement Income Program, Guaranteed Retirement Income Program II, or Guaranteed Retirement Income Program III.
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John Hancock New York
    Venture ® 2006   Ven 24   Ven 9  
Annual Contract Fee1   $30   $30   $30  
Annual Separate Account Expenses2
(as a percentage of Contract Value in the Variable Investment Options) 		  Contract Years
1-7 		  Contract Years
8+ 		         
Mortality and Expense Risks Fee3   1.00%   0.85%   1.25%   1.25%  
Administration Fee – asset based   0.15%   0.15%   0.15%   0.15%  
Total Annual Separate Account Expenses2   1.15%   1.00%   1.40%   1.40%  
Optional Benefits   Contract Years
1-7 		  Contract Years
8+ 		         
Fees deducted from Separate Account:                  
Optional Annual Step-Up Death Benefit Fee   0.20%   0.20%   not offered   not offered  
Optional Payment Enhancement Fee   0.35%   0.35%   0.35%   not offered  
Total Annual Separate Account Expenses4   1.70%   1.55%   1.75%   1.40%  
Other Account Fees Deducted from Contract Value:                  
Optional Guaranteed Minimum Withdrawal Benefit Rider Fee (maximum)5   1.20%   1.20%   0.75%   not offered  
Optional Guaranteed Retirement Income Programs
(as a percentage of Income Base)6 		  not offered   not offered   0.45%   not offered  
1 The $30 annual Contract Fee will not be assessed prior to the Maturity Date under a Venture® Contract if at the time of its assessment the Contract Value is greater than or equal to $99,000. This exclusion does not apply to Ven 9 Contracts.
2 We deduct from each of the Subaccounts a daily charge at an annual effective percentage of the Contract Value in the Variable Investment Options unless otherwise noted. Please note that when the optional Payment Enhancement is chosen, the guaranteed rate applicable to any Fixed Investment Option is also reduced by 0.35%.
3 This charge is assessed on all active Contracts, including Contracts continued by a Beneficiary upon the death of the Contract Owner.
4 Amount shown includes the Mortality and Expense Risks Fee, Administration Fee as well as the Optional Guaranteed Earnings Multiplier Fee and the optional Annual Step-Up Death Benefit Fee, as applicable.
5 See the chart below for the current and maximum fees for each guaranteed minimum withdrawal benefit Rider. This fee is deducted from the Contract Value.
   
  This is an annual charge applied as a percentage of the Adjusted Benefit Base (for the Income Plus For Life® Series Riders) and as a percentage of the Adjusted Guaranteed Withdrawal Balance (for the Principal Plus Rider, the Principal Plus for Life Series Riders and the Principal Returns Rider).
6 Guaranteed Retirement Income Programs could not be purchased if you elected to purchase Principal Plus or Principal Plus for Life. Availability varied by state and when you purchased your Contract. See Appendix D: “Optional Guaranteed Minimum Income Benefits” for availability.
Other Fees deducted from Contract Value
Optional Guaranteed Minimum Withdrawal Benefit Riders
(We deduct the fee, as applicable, on an annual basis from Contract Value)
  Income
Plus For
Life®
(Annual
Step-Up
Review)1 		Income Plus
For Life –
Joint Life®
(Annual
Step-Up
Review)
(not available in
New York)1 		Income Plus
For Life®
(Quarterly
Step-Up
Review) Series
(issued outside
New York)1 		Income Plus
For Life®
(Quarterly
Step-Up
Review) Series
(issued in
New York)1 		Income Plus
For Life®
12.08 Series
(issued outside
New York)1 		Income Plus For
Life®
12.08 Series
(issued in
New York)1
Maximum Fee 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Current Fee 0.60% 0.60% 0.75% 0.70% 0.85% 0.80%
    
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  Income Plus
For Life® 5.09
Series1 		Income
Plus For
Life®
1.111
Series 		Principal Plus
for
Life Plus
Automatic
Annual
Step-Up2 		Principal
Plus for Life
Plus Spousal
Protection3 		Principal
Plus
for Life4 		Principal
Plus5 		Principal
Returns6
Maximum Fee 1.20% 1.20% 1.20% 1.20% 0.75% 0.75% 0.95%
Current Fee 0.90% 1.00% 0.70% 0.65% 0.40% 0.30% 0.50%
1 The current charge for each of the Income Plus For Life® Series Riders is a percentage of the Adjusted Benefit Base. For each Rider, we reserve the right to increase the charge to a maximum charge of 1.20% if the Benefit Base is stepped up to equal the Contract Value.
2 The current charge for the Principal Plus for Life Plus Automatic Annual Step-Up Rider is 0.70% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 1.20% if the Guaranteed Withdrawal Balance is stepped up to equal the Contract Value. For Riders issued from December 15, 2008 to April 30, 2009, the current charge is 0.70% and Total for Riders issued from June 16, 2008 to December 12, 2008, the current charge is 0.55%. For Riders issued prior to June 16, 2008, the current charge is 0.60%.
3 The current charge for the Principal Plus for Life Plus Spousal Protection Rider is 0.65% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 1.20% if the Guaranteed Withdrawal Balance is stepped up to equal the Contract Value.
4 The current charge for the Principal Plus for Life Rider is 0.40% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.75% if the Guaranteed Withdrawal Balance is stepped up to equal the Contract Value.
5 The current charge for the Principal Plus Rider is 0.30% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.75% if the Guaranteed Withdrawal Balance is stepped up to equal the Contract Value.
6 The current charge for the Principal Returns Rider is 0.50% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.95% if the Guaranteed Withdrawal Balance is stepped up to equal the Contract Value.
The next table describes the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Contract. More detail concerning each Portfolio’s fees and expenses is contained in the Portfolio’s prospectus.
Total Annual Portfolio Operating Expenses
(as a percentage of the Portfolio’s average net assets for the fiscal year ended December 31, 2019) 		Minimum 1 Maximum
Range of expenses that are deducted from Portfolio assets, including management fees, Rule 12b-1 fees, and other expenses for Contracts issued on and after May 13, 2002 0.50% 1.865%
Range of expenses that are deducted from Portfolio assets, including management fees, Rule 12b-1 fees, and other expenses for Contracts issued prior to May 13, 2002 0.30% 1.865%
1 For Contracts issued prior to May 13, 2002, the range of expenses has a lower minimum because the Separate Account invests in Class 1 Portfolio shares for certain Variable Investment Options available under those Contracts.
Examples
We provide the following examples that are intended to help you compare the costs of investing in a Contract with the costs of investing in other variable annuity contracts. The costs we show include Contract Owner expenses, Contract fees, Separate Account annual expenses and Portfolio fees and expenses.
Example 1: Venture® 2006 Contracts (issued on or after May 1, 2006)
(a)  Maximum Portfolio Operating Expenses – Contracts issued on or after November 23, 2009 with optional benefit Riders
(b)  Maximum Portfolio Operating Expenses – Contracts issued on or after July 17, 2006 with optional benefit Riders
(c)  Maximum Portfolio Operating Expenses – Contracts issued on or after May 1, 2006 with optional benefit Riders
(d)  Minimum Portfolio Operating Expenses – Contracts issued with no optional benefit Riders
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Example 2: Ven 20, 22, 24 Contracts (issued after May 13, 2002 and before May 1, 2006)
(a)  Maximum Portfolio Operating Expenses – John Hancock USA Contracts issued before May 1, 2006 with optional benefit Riders
(b)  Maximum Portfolio Operating Expenses – John Hancock USA Contracts issued before December 9, 2003 with optional benefit Riders
(c)  Maximum Portfolio Operating Expenses – John Hancock New York Contracts issued before May 1, 2006 with optional benefit Riders
(d)  Maximum Portfolio Operating Expenses – John Hancock New York Contracts issued before December 11, 2004 with optional benefit Riders
(e)  Minimum Portfolio Operating Expenses – Contracts with no optional benefit Riders
All examples assume that you invest $10,000 in a Contract and that your investment has a 5% return each year. In the “Maximum Portfolio Operating Expenses” examples, we also assume that you will pay the maximum annual Contract fee, the fees for any optional benefit Riders shown in the example and the maximum fees and expenses of any of the Portfolios. In the “Minimum Portfolio Operating Expenses” examples, we assume that you do not invest in any optional benefit Riders and that you will pay the average annual Contract fee we expect to receive for the Contracts and the minimum fees and expenses of any of the Portfolios. Please note that the Rider fees are reflected as a percentage of the Adjusted Benefit Base or Adjusted Guaranteed Withdrawal Balance, which may vary in value from the total Variable Investment Option value.
Although we provide you with examples of the costs for a Contract based on these assumptions, your actual costs may be higher or lower.
Example 1 (a): Maximum Portfolio operating expenses – Venture® 2006 Contracts issued on or after November 23, 2009 with Annual Step-Up Death Benefit and Income Plus For Life® Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $927 $1,623 $2,359 $4,163
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $371 $1,148 $1,970 $4,163
Example 1 (b): Maximum Portfolio operating expenses – Venture® 2006 Contracts issued on or after July 17, 2006 with Annual Step- Up Death Benefit and Principal Plus for Life Plus Automatic Annual Step-Up Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $957 $1,707 $2,486 $4,361
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $404 $1,237 $2,104 $4,361
Example 1 (c): Maximum Portfolio operating expenses – Venture® 2006 Contracts issued on or after May 1, 2006 with Annual Step- Up Death Benefit and Principal Plus for Life Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $910 $1,568 $2,250 $3,856
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $357 $1,093 $1,859 $3,856
Example 1 (d): Minimum Portfolio operating expenses – Venture® 2006 Contracts issued on or after May 1, 2006 with no optional benefit Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $730 $1,029 $1,311 $1,922
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $171 $529 $911 $1,922
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Example 2 (a): Maximum Portfolio operating expenses – John Hancock USA Contracts (Ven 20, 22) issued before May 1, 2006 with Guaranteed Earnings Multiplier and Principal Plus for Life Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $933 $1,637 $2,364 $4,130
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $382 $1,166 $1,979 $4,130
Example 2 (b): Maximum Portfolio operating expenses – John Hancock USA Contracts (Ven 20, 22) issued before December 9, 2003 with Guaranteed Earnings Multiplier and Guaranteed Retirement Income Program III Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $907 $1,560 $2,236 $3,875
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $355 $1,087 $1,846 $3,875
Example 2 (c): Maximum Portfolio operating expenses – John Hancock New York Contracts (Ven 24) Contracts issued before May 1, 2006 with Payment Enhancement and Principal Plus for Life Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $1,131 $1,866 $2,528 $4,263
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $397 $1,210 $2,050 $4,263
Example 2 (d): Maximum Portfolio operating expenses – John Hancock New York Contracts (Ven 24) issued before December 11, 2004 with Guaranteed Retirement Income Program II Rider
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $883 $1,492 $2,125 $3,666
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $331 $1,015 $1,730 $3,666
Example 2 (e): Minimum Portfolio operating expenses – Ven 20, 22, 24 Contracts issued after May 13, 2002 and before May 1, 2006 with no optional benefit Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $754 $1,102 $1,440 $2,245
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $196 $605 $1,040 $2,245
We include a Table of Accumulation Unit Values relating to the Contracts in Appendix U to this Prospectus.
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IV.  General Information about Us,
the Separate Accounts and the Portfolios
The Companies
Your Contract was issued by either John Hancock USA or John Hancock New York. Please refer to your Contract to determine which Company issued your Contract.
John Hancock USA, formerly known as “The Manufacturers Life Insurance Company (U.S.A.),” is a stock life insurance company originally organized under the laws of Maine on August 20, 1955, by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. John Hancock USA is authorized to transact life insurance and annuity business in all states (except New York), the District of Columbia, Guam, Puerto Rico and the Virgin Islands. Its principal office is located at 200 Berkeley Street, Boston, Massachusetts 02116. John Hancock USA also has an Annuities Service Center – its mailing address is P.O. Box 55444, Boston, MA 02205-5444; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuities.com.
John Hancock New York, formerly known as “The Manufacturers Life Insurance Company of New York,” is a wholly-owned subsidiary of John Hancock USA and is a stock life insurance company organized under the laws of New York on February 10, 1992. John Hancock New York is authorized to transact life insurance and annuity business only in the State of New York. Its principal office is located at 100 Summit Lake Drive, Valhalla, New York 10595. John Hancock New York also has an Annuities Service Center – its mailing address is P.O. Box 55445, Boston, MA 02205-5445; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuities.com.
The ultimate parent of both companies is Manulife Financial Corporation, a publicly traded company, based in Toronto, Canada. Manulife Financial Corporation is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife. The Companies changed their names to John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York, respectively, on January 1, 2005 following Manulife Financial Corporation’s acquisition of John Hancock Financial Services, Inc.
The Company incurs obligations under the Contract to guarantee certain amounts, and investors must depend on the financial strength of the Company for satisfaction of the Company’s obligations such as any Fixed Investment Option, the Lifetime Income Amount, the death benefit and any guaranteed amounts associated with our optional benefits Riders. Also, if you direct money into a DCA Fixed Investment Option that we may make available, the Company guarantees the principal value and the rate of interest credited to that Investment Option for the term of any DCA guarantee period. To the extent that the Company pays such amounts, the payments will come from the Company’s General Account assets. You should be aware that, unlike the Separate Accounts, the Company’s General Account is not segregated or insulated from the claims of the Company’s creditors. The General Account consists of securities and other investments that may decline in value during periods of adverse market conditions. The Company’s financial statements contained in the SAI include a further discussion of risks inherent within the Company’s General Account investments.
The Separate Accounts
You do not invest directly in the Portfolios made available under the Contracts. When you direct or transfer money to a Variable Investment Option, we will purchase shares of a corresponding Portfolio through one of our Separate Accounts. We hold the Portfolio’s shares in a “Subaccount” (usually with a name similar to that of the corresponding Portfolio) of the applicable Separate Account. A Separate Account’s assets (including the Portfolio’s shares) belong to the Company that maintains that Separate Account.
For Contracts issued by John Hancock USA, we purchase and hold Portfolio shares in John Hancock Life Insurance Company (U.S.A.) Separate Account H, a Separate Account under the laws of Michigan.
For Contracts issued by John Hancock New York, we purchase and hold Portfolio shares in John Hancock Life Insurance Company of New York Separate Account A, a Separate Account under the laws of New York.
The income, gains and losses, whether or not realized, from assets of a Separate Account are credited to or charged against that Separate Account without regard to a Company’s other income, gains, or losses. Nevertheless, all obligations arising
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under a Company’s Contracts are general corporate obligations of that Company. Assets of a Separate Account may not be charged with liabilities arising out of any of the respective Company’s other business.
We reserve the right, subject to compliance with applicable law: to add other Subaccounts; to eliminate existing Subaccounts; to combine Subaccounts or transfer assets in one Subaccount to another Subaccount that we, or an affiliated company, may establish; or (in states where permitted) to restrict or prohibit additional allocations to a Subaccount. We will not eliminate existing Subaccounts or combine Subaccounts without the prior approval of the appropriate state and/or federal regulatory authorities.
We registered the Separate Accounts with the SEC under the Investment Company Act of 1940, as amended (the “1940 Act”), as unit investment trusts. Registration under the 1940 Act does not involve supervision by the SEC of the management or investment policies or practices of the Separate Accounts. If a Company determines that it would be in the best interests of persons having voting rights under the Contracts it issues, that Company’s Separate Account may be operated as a management investment company under the 1940 Act or it may be deregistered if 1940 Act registration were no longer required.
The Portfolios
When you select a Variable Investment Option, we invest your money in a Subaccount of our Separate Accounts and it invests in shares of a corresponding Portfolio of:
•  the John Hancock Variable Insurance Trust; or
•  (for certain John Hancock USA Contracts issued before May 1, 2006) the PIMCO Variable Insurance Trust with respect to the “PIMCO VIT All Asset Portfolio”; or
•  (for certain John Hancock USA Contracts issued before January 28, 2002) the BlackRock Variable Series Funds, Inc. with respect to the “BlackRock Value Opportunities V.I. Fund,” the “BlackRock Basic Value V.I. Fund” and the “BlackRock Global Allocation V.I. Fund.”
The Portfolios in the Separate Account are NOT publicly traded mutual funds. The Portfolios are available to you only as Investment Options in the Contracts or, in some cases, through other variable annuity contracts or variable life insurance policies issued by us or by other life insurance companies. In some cases, the Portfolios also may be available through participation in certain tax-qualified pension, retirement or college savings plans.
Investment Management
The Portfolios’ investment advisers and managers may manage publicly traded mutual funds with similar names and investment objectives. However, the Portfolios are NOT directly related to any publicly traded mutual fund. You should not compare the performance of any Portfolio described in this Prospectus with the performance of a publicly traded mutual fund. The performance of any publicly traded mutual fund could differ substantially from that of any of the Portfolios held in our Separate Account.
Our Managed Volatility Portfolios
In selecting the Portfolios that are available as Investment Options under the Contract (or its optional benefit Riders), we may establish requirements that are intended, among other things, to mitigate market price and interest rate risk for compatibility with our obligations to pay guarantees and benefits under the Contract (and its optional benefit Riders). We seek to make available Investment Options that use strategies that are intended to lower potential volatility of returns and limit the magnitude of Portfolio losses. These include, but are not limited to, strategies that: encourage diversification in asset classes and style; combine equity exposure with exposure to fixed income securities; and allow us to effectively and efficiently manage our exposure under the Contract (and optional benefit Riders). The requirements we impose are intended to protect us from loss. They may increase a Portfolio’s transaction costs, and may otherwise lower the performance and reduce the availability of Investment Options under the Contract (and/or under optional benefit Riders).
During rising markets, the strategies employed to manage volatility could result in your Contract Value rising less than would have been the case if you had been invested in a Portfolio without the managed volatility strategy. The managed volatility strategy may also suppress the value of the guaranteed Rider benefits. On the other hand, the managed volatility strategy seeks to manage the volatility of returns and limit the magnitude of Portfolio losses during declining markets with high volatility, although there is no guarantee that it will do so.
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The five Managed Volatility Portfolios offered under the Contract have the following objectives and strategies:
Managed Volatility Aggressive Portfolio. Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 15% to 18.5%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to equity securities could be reduced to 0% and its economic exposure to cash and cash equivalents or fixed-income securities could increase to 100%. However, the subadvisor may determine in light of market or economic conditions that the limit should be exceeded to achieve the Portfolio’s objective.
Managed Volatility Balanced Portfolio. Seeks growth of capital and current income while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 8.25% to 10.25%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) normally will not exceed 100%.
Managed Volatility Conservative Portfolio. Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 5.5% to 6.5%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 22%.
Managed Volatility Growth Portfolio. Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 11% to 13%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 77%.
Managed Volatility Moderate Portfolio. Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 7% to 9%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 44%.
You can find a full description of each Portfolio, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Portfolio in the prospectus for that Portfolio.
    
The John Hancock Variable Insurance Trust is a so-called “series” type mutual fund and is registered under the 1940 Act as an open- end management investment company. John Hancock Variable Trust Advisers, LLC (“JHVTA LLC”) provides investment advisory services to the John Hancock Variable Insurance Trust and receives investment management fees for doing so. JHVTA LLC pays a portion of its investment management fees to other firms that manage the John Hancock
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Variable Insurance Trust’s Portfolios (i.e., subadvisers). JHVTA LLC is our affiliate and we indirectly benefit from any investment management fees JHVTA LLC retains.
The John Hancock Variable Insurance Trust has obtained an order from the SEC permitting JHVTA LLC, subject to approval by the Board of Trustees, to change a subadviser for a Portfolio or the fees paid to subadvisers and to enter into new subadvisory agreements from time to time without the expense and delay associated with obtaining shareholder approval of the change. This order does not, however, permit JHVTA LLC to appoint a subadviser that is an affiliate of JHVTA LLC or the John Hancock Variable Insurance Trust (other than by reason of serving as subadviser to a Portfolio) (an “Affiliated Subadviser”) or to change a subadvisory fee of an Affiliated Subadviser without the approval of shareholders.
The All Asset Portfolio of the PIMCO Trust receives investment advisory services from Pacific Investment Management Company LLC (“PIMCO”) and pays investment management fees to PIMCO.
The BlackRock Advantage U.S. Total Market V.I. Fund, the BlackRock Basic Value V.I. Fund and the BlackRock Global Allocation Fund receive investment advisory services from BlackRock Advisors, LLC. BlackRock Advisors, LLC has retained BlackRock Investment Management, LLC (“BIM”), an affiliate, to act as the investment subadviser to the BlackRock Advantage U.S. Total Market V.I. Fund, the BlackRock Basic Value V.I. Fund and the BlackRock Global Allocation V.I. Fund, and BlackRock International Limited (“BIL”), an affiliate, to act as the investment subadviser to the BlackRock Global Allocation V.I. Fund, and may pay BIM and BIL a portion of the annual management fee it receives from each respective Portfolio.
If shares of a Portfolio are no longer available for investment or in our judgment investment in a Portfolio becomes inappropriate, we may eliminate the shares of a Portfolio and substitute shares of another Portfolio, or of another open-end registered investment company. A substitution may be made with respect to both existing investments and the investment of future Purchase Payments. However, we will make no such substitution without first notifying you and obtaining approval of the SEC (to the extent required by the 1940 Act).
Portfolio Expenses
Fees and expenses of the Portfolios include investment management fees, Rule 12b-1 fees and other operating expenses. The fees and expenses are not fixed or specified under the terms of the Contracts and may vary from year to year. These fees and expenses differ for each Portfolio and reduce the investment return of each Portfolio. Therefore, they also indirectly reduce the return you might earn on any Separate Account Investment Options.
The Portfolios pay us or certain of our affiliates compensation for some of the distribution, administrative, shareholder support, marketing and other services we or our affiliates provide to the Portfolios. The amount of this compensation is based on a percentage of the assets of the Portfolio attributable to the variable insurance products that we and our affiliates issue. These percentages may differ from Portfolio to Portfolio and among classes of shares within a Portfolio. In some cases, the compensation is derived from the Rule 12b-1 fees which are deducted from a Portfolio’s assets and paid for the services we or our affiliates provide to that Portfolio. Compensation payments may be made by a Portfolio’s investment adviser or its affiliates. We pay American Funds Distributors, Inc., the principal underwriter for the American Fund Insurance Series, a percentage of some or all of the amounts allocated to the “American Fund Portfolios” of the John Hancock Variable Insurance Trust for the marketing support services it provides. None of these compensation payments results in any additional charge to you.
Funds of Funds and Master-Feeder Funds
Each of the John Hancock Variable Insurance Trust’s Lifestyle Aggressive Portfolio, Lifestyle Balanced Portfolio, Lifestyle Conservative Portfolio, Lifestyle Growth Portfolio, Lifestyle Moderate Portfolio, Managed Volatility Aggressive Portfolio, Managed Volatility Balanced Portfolio, Managed Volatility Conservative Portfolio, Managed Volatility Growth Portfolio and Managed Volatility Moderate Portfolio, and the PIMCO VIT All Asset Portfolio, is a “fund of funds” that invests in other underlying mutual funds (collectively, the “Funds of Funds”). Expenses for a fund of funds may be higher than those for other Portfolios because a fund of funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying portfolios in which it invests. The prospectus for each of the Funds of Funds contains a description of the underlying portfolios for that Portfolio, including expenses of those portfolios, associated investment risks, and deductions from and expenses paid out of the assets of the Portfolio.
Each of the John Hancock Variable Insurance Trust’s American Asset Allocation, American Global Growth, American Growth, American Growth-Income, and American International Trusts (“JHVIT American Fund Portfolios”) invests in Class
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1 shares of the corresponding investment portfolio of a “master” fund. The JHVIT American Fund Portfolios operate as “feeder funds,” which means that each Portfolio does not buy investment securities directly. Instead, it invests in a corresponding master fund which in turn purchases investment securities. Each of the JHVIT American Fund Portfolios has the same investment objective and limitations as its corresponding master fund. The prospectus for the American Fund master funds is included with the prospectuses for the JHVIT American Fund Portfolios.
Portfolio Investment Objectives
You bear the investment risk of any Portfolio you choose as a Variable Investment Option for your Contract. The following table contains a general description of the investment objectives of the Portfolios that we make available under the Contracts. You can find a full description of each Portfolio in the prospectus for that Portfolio, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Portfolio.
You can obtain a copy of a Portfolio’s prospectus (including the prospectus for a master fund for any of the Portfolios that are operated as feeder funds), without charge, by contacting us at the Annuities Service Center website, phone number or address shown on the first page of this Prospectus. Please read the Portfolio’s prospectus carefully before investing in the corresponding Variable Investment Option.
You should disregard any reference to Series I shares of the John Hancock Variable Insurance Trust if your Contract was issued after May 13, 2002. For Contracts issued prior to that date, we invest the assets of each Subaccount corresponding to a John Hancock Variable Insurance Trust Portfolio in Series I shares of that Portfolio (except in the case of Portfolios that commenced operations on or after May 13, 2002). More detail concerning each Portfolio’s fees and expenses is contained in the Portfolio’s prospectus.
The Portfolios available may be restricted if you purchased a guaranteed minimum withdrawal benefit Rider (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”).
JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
500 Index Trust
 Series I, II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a broad-based U.S. domestic equity market index.
Active Bond Trust1
 Series I, II 		Manulife Investment Management (US) LLC Seeks income and capital appreciation.
American Asset Allocation Trust
 Series I, II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term.
American Global Growth Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks long-term growth of capital.
American Growth Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks to provide growth of capital.
American Growth-Income Trust
 Series I, II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks to provide growth of capital and income.
American International Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks long-term growth of capital.
Blue Chip Growth Trust
 Series I, II 		T. Rowe Price Associates, Inc. Seeks to provide long-term growth of capital. Current income is a secondary objective.
Capital Appreciation Trust
 Series I, II 		Jennison Associates LLC Seeks long-term growth of capital.
Capital Appreciation Value Trust
 Series II 		T. Rowe Price Associates, Inc. Seeks long-term capital appreciation.
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JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
Core Bond Trust
 Series I, II 		Wells Capital Management, Incorporated Seeks total return consisting of income and capital appreciation.
Disciplined Value International Trust
(formerly International Value Trust)
 Series I, II 		Boston Partners Global Investors, Inc. Seeks long-term growth of capital.
Emerging Markets Value Trust
 Series II 		Dimensional Fund Advisors LP Seeks long-term capital appreciation.
Equity Income Trust
(successor to Utilities Trust)
 Series I, II 		T. Rowe Price Associates, Inc. Seeks substantial dividend income and also long-term growth of capital.
Financial Industries Trust
 Series I, II 		Manulife Investment Management (US) LLC Seeks growth of capital.
Fundamental All Cap Core Trust
 Series II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital.
Fundamental Large Cap Value Trust
 Series I, II 		Manulife Investment Management (US) LLC Seeks long-term capital appreciation.
Global Trust
 Series I, II 		Manulife Investment Management (US) LLC Seeks long-term capital appreciation.
Health Sciences Trust
 Series I, II 		T. Rowe Price Associates, Inc. Seeks long-term capital appreciation.
High Yield Trust2
 Series I, II 		Western Asset Management Company Seeks to realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk.
International Equity Index Trust
(successor to International Growth Stock Trust)
 Series I, II 		SSgA Funds Management, Inc. Seeks to track the performance of a broad-based equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging markets.
International Small Company Trust
 Series I, II 		Dimensional Fund Advisors LP Seeks long-term capital appreciation.
Investment Quality Bond Trust
 Series I, II 		Wellington Management Company, LLP Seeks to provide a high level of current income consistent with the maintenance of principal and liquidity.
Lifestyle Aggressive Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital.
Lifestyle Balanced Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital.
Lifestyle Conservative Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks a high level of current income with some consideration given to growth of capital.
Lifestyle Growth Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital. Current income is also a consideration.
Lifestyle Moderate Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on income.
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JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
Managed Volatility Aggressive Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Balanced Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks growth of capital and current income while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Conservative Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Growth Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Moderate Portfolio
 Series I, II 		Manulife Investment Management (US) LLC Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Mid Cap Index Trust
 Series I, II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a mid-cap U.S. domestic equity market index.
Mid Cap Stock Trust
 Series I, II 		Wellington Management Company, LLP Seeks long-term growth of capital.
Mid Value Trust
 Series I, II 		T. Rowe Price Associates, Inc. Seek long-term capital appreciation.
Money Market Trust
 Series I, II 		Manulife Investment Management (US) LLC Seeks to obtain maximum current income consistent with preservation of principal and liquidity.
Opportunistic Fixed Income Trust
(formerly Global Bond Trust)
 Series I, II 		Wellington Management Company LLP Seeks maximum total return, consistent with preservation of capital and prudent investment management.
Real Estate Securities Trust3
 Series I, II 		DWS Investment Management Americas Inc. (“DIMA”) Seeks to achieve a combination of long-term capital appreciation and current income.
Science & Technology Trust
 Series I, II 		T. Rowe Price Associates, Inc. and Allianz Global Investors U.S. LLC4 Seeks long-term growth of capital. Current income is incidental to the Portfolio’s objective.
Select Bond Trust
 Series II 		Manulife Investment Management (US) LLC Seeks income and capital appreciation.
Short Term Government Income Trust
 Series I, II 		Manulife Investment Management (US) LLC Seeks a high level of current income consistent with preservation of capital. Maintaining a stable share price is a secondary goal.
Small Cap Index Trust
 Series I, II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a small cap U.S. domestic equity market index.
Small Cap Opportunities Trust
 Series I, II 		Dimensional Fund Advisors LP (“DFA”) & Invesco Advisers, Inc. (“Invesco”)5 Seeks long-term capital appreciation.
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JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
Small Cap Stock Trust
 Series I, II 		Wellington Management Company, LLP Seeks long-term capital appreciation.
Small Cap Value Trust
 Series II 		Wellington Management Company, LLP Seeks long-term capital appreciation.
Small Company Value Trust
Series I, II 		T. Rowe Price Associates, Inc. Seeks long-term growth of capital.
Strategic Income Opportunities Trust
 Series I, II 		Manulife Investment Management (US) LLC Seeks a high level of current income.
Total Bond Market Trust
 Series II 		Manulife Investment Management (US) LLC Seeks to track the performance of the Barclays U.S. Aggregate Bond Index (which represents the U.S. investment grade bond market).
Total Stock Market Index Trust
 Series I, II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a broad-based U.S. domestic equity market index.
Ultra Short Term Bond Trust
 Series II 		Manulife Investment Management (US) LLC Seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital.
BLACKROCK VARIABLE SERIES FUNDS, INC.
BlackRock Advantage U.S. Total Market V. I. Fund6
 Series II 		BlackRock Investment Management, LLC Seeks long-term growth of capital.
BlackRock Basic Value V. I. Fund6
 Series II 		BlackRock Investment Management, LLC Seeks capital appreciation and, secondarily, income.
BlackRock Global Allocation V. I. Fund7
 Series II 		BlackRock Investment Management, LLC and BlackRock International Limited Seeks high total investment return.
PIMCO VARIABLE INSURANCE TRUST
PIMCO VIT All Asset Portfolio
 Class M 		Pacific Investment Management Company Seeks maximum real return consistent with preservation of real capital and prudent investment management.
1 The Active Bond Trust is subadvised by Declaration Management & Research LLC and Manulife Investment Management (US) LLC, with each subadviser subadvising approximately one half of the assets of the Portfolio. Since the Portfolio is only rebalanced periodically, the actual percentage of the Portfolio managed by each subadviser will vary.
2 High Yield Trust is sub-subadvised by Western Asset Management Company Limited.
3 RREEF America L.L.C. provides sub-subadvisory services to DIMA in its management of the Real Estate Securities Trust.
4 The Science and Technology Trust is subadvised by T. Rowe Price Associates, Inc. and Allianz Global Investors U.S. LLC, with each subadviser subadvising approximately one half of the assets of the Portfolio. Since the Portfolio is only rebalanced periodically, the actual percentage of the Portfolio managed by each subadviser will vary. This allocation may be changed at any time.
5 The Small Cap Opportunities Trust is subadvised by Dimensional Fund Advisors, LP and Invesco Aim Capital Management, Inc., with each subadviser subadvising approximately one half of the assets of the Portfolio. Since the Portfolio is only rebalanced periodically, the actual percentage of the Portfolio managed by each subadviser will vary.
6 The Portfolio is subadvised by BlackRock Investment Management, LLC, an affiliate, under an agreement with BlackRock Advisors, LLC.
7 The Portfolio is subadvised by BlackRock Investment Management, LLC and BlackRock International Limited, affiliates, under an agreement with BlackRock Advisors, LLC.
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Voting Interest
We will vote Portfolio shares held in a Separate Account at any Portfolio shareholder meeting in accordance with timely voting instructions received from the persons having the voting interest under the Contract. We will determine the number of Portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. We will arrange for voting materials to be distributed to each person having the voting interest under the Contract together with appropriate forms for giving voting instructions. If there are shares of a Portfolio held by a Subaccount for which we do not receive timely voting instructions, we will vote those shares in the same proportion as the total votes for all of our registered separate accounts for which we have received timely instructions, We will vote all Portfolio shares that we hold directly in our General Account in the same proportion as the total votes for all our registered separate accounts and those of any of our affiliates for which we have received timely instructions. One effect of this proportional voting is that a small number of Contract Owners can determine the outcome of a vote.
During the Accumulation Period, the Contract Owner has the voting interest under a Contract. We determine the number of votes for each Portfolio for which voting instructions may be given by dividing the value of the Investment Account corresponding to the Subaccount in which such Portfolio shares are held by the net asset value per share of that Portfolio.
During the Pay-out Period for a variable annuity option, the Annuitant has the voting interest under a Contract. We determine the number of votes as to each Portfolio for which voting instructions may be given by dividing the reserve for the Contract allocated to the Subaccount in which such Portfolio shares are held by the net asset value per share of that Portfolio. Generally, the number of votes tends to decrease as annuity payments progress because the amount of reserves attributable to a Contract will usually decrease after commencement of annuity payments.
We reserve the right to make any changes in the voting rights described above that may be permitted by the federal securities laws, regulations, or interpretations thereof.
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V.  Description of the Contract
Eligible Plans
Contracts may have been issued to fund plans qualifying for special income tax treatment under the Code, such as individual retirement accounts and annuities (“IRAs”), pension and profit-sharing plans for corporations and sole proprietorships/partnerships (“H.R. 10” and “Keogh” plans), tax-sheltered annuities, and state and local government deferred compensation plans (see “VII. Federal Tax Matters,” or you may request a copy of the SAI). The Contracts are not designed to fund a comingled account for multiple participants in a Qualified Plan. The Contracts are designed so that they may be used with nonqualified retirement plans, such as payroll savings plans and such other groups (with or without a trustee), or issued as individually owned nonqualified contracts, as may be eligible under applicable law.
Please consult with a qualified tax professional for more information if you are considering a conversion of your Qualified Contract to a Roth account. You should also consider that:
•  the Contracts are not designed to hold both Roth and non-Roth accounts; we do not separately account for any part of any Purchase Payments, Contract Value or any Annuity Payments as attributable to both a Roth account and a non-Roth account, even if permitted in your Qualified Plan, and that you or your plan administrator will be responsible for any tax related accounting required by such a split; and
•  any transfer of Contract Value from a Contract used to fund a non-Roth account to a Roth account permitted in your Qualified Plan (or from a Contract used to fund a Roth account to a non-Roth account) may incur withdrawal charges.
Please see “VII. Federal Tax Matters – General Information Regarding Qualified Contracts” for additional information about the use of the Contract in connection with Qualified Plans.
Eligibility Restrictions – Section 403(b) Plans. For information regarding Contracts issued for use in an existing retirement plan intended to qualify under section 403(b) of the Code (a “Section 403(b) Plan” or a “403(b) Plan”), please see “VII. Federal Tax Matters,” or you may request a copy of the SAI from the Annuities Service Center.
Beneficiary IRAs. For all Contracts that offered optional benefit Riders, effective February 2, 2009, we no longer allowed you to establish a new Beneficiary IRA that included any optional benefit Rider, nor do we allow anyone with an existing Beneficiary IRA that does not have an optional benefit Rider to subsequently elect any optional benefit Rider. The restriction includes all optional benefit Riders that were otherwise available under the Contract (see Appendix B: “Optional Enhanced Death Benefits,” Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits,” and Appendix D: “Optional Guaranteed Minimum Income Benefits,” to determine what optional benefit Riders, if any, were available).
We will continue to support existing Beneficiary IRAs that already include optional benefit Riders.
Eligible Groups. John Hancock USA has issued group contracts to Venture® Trust, as group holder for groups comprised of persons who have brokerage accounts with brokers having selling agreements with John Hancock Distributors LLC, the principal underwriter of the Contracts.
Accumulation Period Provisions
Purchase Payments
Restrictions on Additional Purchase Payments for Nonqualified Contracts with a Guaranteed Minimum Withdrawal Benefit Rider. Under our current administrative rules:
•  You may not make an Additional Purchase Payment, without our prior approval, after the first Contract Anniversary following the Rider Date.
•  (Contracts issued in New Jersey or Oregon) You may not make an Additional Purchase Payment, without our prior approval, if your total Additional Purchase Payments would exceed $100,000.
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Additional Purchase Payments for Nonqualified Contracts with a guaranteed minimum withdrawal benefit Rider are also subject to the following:
•  You may not make an Additional Purchase Payment, without our prior approval, if your Contract Value exceeds $1 million at the time of payment or if your Contract Value is less than $1 million and the Additional Purchase Payment would cause your Contract Value to exceed $1 million.
•  You may not make an Additional Purchase Payment if your GMWB Rider is in the Settlement Phase.
Restrictions on Additional Purchase Payments for Qualified Contracts (Including IRAs) with a Guaranteed Minimum Withdrawal Benefit Rider. Under our current administrative rules:
•  You may not make an Additional Purchase Payment, without our prior approval, at any time after the Age 65 Contract Anniversary on a Qualified Contract with a GMWB Rider.
•  (Contracts issued in New Jersey or Oregon) You may not make an Additional Purchase Payment, without our prior approval, after the later of the first Contract Anniversary following the Rider Date or the Age 65 Contract Anniversary if your total Additional Purchase Payments after the first Contract Anniversary would exceed $100,000.
Additional Purchase Payments for Qualified Contracts with a GMWB Rider are also subject to the following:
•  You may not make an Additional Purchase Payment, without our prior approval, if your Contract Value exceeds $1 million at the time of payment or if your Contract Value is less than $1 million and the Additional Purchase Payment would cause your Contract Value to exceed $1 million.
•  You may not make an Additional Purchase Payment after the oldest Covered Person becomes age 81 or if your GMWB Rider is in the Settlement Phase.
Additional Purchase Payments for Contracts Issued With or Without a Guaranteed Minimum Withdrawal Benefit Rider. Additional Purchase Payments must be at least $30, unless you purchased a Ven 1 Contract. In that case, Additional Purchase Payments must be $25 for a Ven 1 Qualified Contract and $300 for a Ven 1 Nonqualified Contract. All Additional Purchase Payments must be in U.S. dollars.
We may provide for periodic Additional Purchase Payments to be automatically paid or transferred from your bank account, brokerage account or other account you hold at a similar financial institution (“Financial Account Plan”) or deducted from your paycheck (“Payroll Plan”) on a periodic basis. If an Additional Purchase Payment would cause your contract values in this Contract plus any other variable annuity contracts with the same Owner or Annuitant, issued by us or our affiliates (your “total contract values”), to exceed $1 million, or if your total contract values already exceed $1 million, you must obtain our prior approval in order to make the Purchase Payment.
We may refuse to accept any Purchase Payment under a Ven 1 Contract in excess of $10,000 per Contract Year.
Additional Purchase Payments made through Financial Account Plans and Payroll Plans. Under our current administrative rules, you may request us to accept periodic Additional Purchase Payments under the terms of a Contract issued without a GMWB Rider that are automatically paid or transferred from your bank account, brokerage account or other account you hold at a similar financial institution (“Financial Account Plan”) or in connection with a payroll deduction plan (“Payroll Plan”). Under our current administrative rules, we will continue to accept periodic Additional Purchase Payments for a Contract with a GMWB Rider when made in connection with a Financial Account Plan or Payroll Plan if:
•  the Financial Account Plan or Payroll Plan was in effect prior to May 4, 2012;
•  no automatic withdrawal program from your Contract is in effect; and
•  your GMWB Rider is not in the Settlement Phase.
For Qualified Contracts with a GMWB Rider, you may not make an Additional Purchase Payment under a Financial Account Plan or Payroll Plan after the oldest Covered Person becomes age 81.
Contracts Issued for Use With Tax-Qualified Retirement Plans. Whether you can make regular contributions to the contract will generally depend on whether you have the necessary earned income for the year. Other restrictions may apply depending on your plan. Restrictions may apply for Contracts issued for use in a retirement plan intended to qualify under section 403(b) of the Code. Please consult with a qualified tax professional for additional information.
Initial Purchase Payments. We no longer issue the Contracts and do not accept initial Purchase Payments for new Contracts. We provide information regarding initial Purchase Payment requirements for the Contracts in the SAI.
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Approval of Additional Purchase Payment to Prevent Cancellation of Contracts. We will mail notice to you at your last known address if we intend to cancel a Contract, where permitted by state law, at the end of any two consecutive Contract Years (three for Contracts issued in New York) in which no Purchase Payments have been made, in order to allow you to make the necessary Additional Purchase Payment to keep your Contract in force.
If permitted by state law, we may cancel a Contract at the end of any two consecutive Contract Years (three for Contracts issued in New York) in which no Purchase Payments have been made, if both:
•  the total Purchase Payments made over the life of the Contract, less any withdrawals, are less than $2,000; and
•  the Contract Value at the end of such two-year period is less than $2,000.
In addition, if your account value becomes less than the annual administration and/or Rider fee amounts, we may cancel your Contract, retaining any remaining value to cover a portion of the annual fee costs. If the Contract has a Rider, we will refund the income base amount in the form of a lump sum payment.
As a matter of administrative practice, the respective Company will attempt to notify you prior to any such cancellation in order to allow you to make the necessary Additional Purchase Payment (if not otherwise restricted) to keep your Contract in force. The cancellation of Contract provisions may vary in certain states to comply with the requirements of insurance laws and regulations in such states. If we cancel your Contract, we will pay you the Contract Value computed as of the period from one Business Day to the next (the “valuation period”) during which the cancellation occurs, reduced by any Withdrawal Charges, Contract Fees and Rider Fees. For IRAs, you must be eligible to make an IRA contribution. For any IRA benefit refund amounts over $200, you must receive prior notice for federal tax withholding election (and state where applicable). The amount paid is treated as a withdrawal for federal tax purposes and thus may be subject to income tax and to a 10% penalty tax (see “VII. Federal Tax Matters”).
Allocation of Purchase Payments. You designate how your Purchase Payments are to be allocated among the Investment Options (subject to the restrictions described below). You may change the allocation of Additional Purchase Payments at any time by notifying us in writing (or by telephone or electronically if you comply with our telephone or electronic transaction procedures described in “Telephone and Electronic Transactions” in this section, below).
Restrictions on the Money Market Investment Option. You are not permitted to make new investments in the Money Market Investment Option. Transfers of amounts from other Investment Options into the Money Market Investment Option also are not permitted (please refer to “Transfers You May Make Among Investment Options” in this section, below). If you currently have Contract Value in the Money Market Investment Option, you may continue to keep that Contract Value in Money Market, but any transfer or withdrawal from Money Market cannot be replaced. However, if you are enrolled in an Asset Rebalancing Program that includes scheduled transfers of Contract Value into the Money Market Investment Option, then the program will continue to make those transfers (see “Special Transfer Services − Asset Rebalancing Program” in this section, below).
Restrictions on the BlackRock and PIMCO Investment Options. You are not permitted to make new investments in the BlackRock Advantage U.S. Total Market Investment Option, BlackRock Basic Value Investment Option, BlackRock Global Allocation Investment Option, or the PIMCO VIT All Asset Portfolio Investment Option. Transfers of amounts from other Investment Options into these Investment Options also are not permitted (please refer to “Transfers You May Make Among Investment Options” in this section, below). If you currently have Contract Value in the BlackRock Advantage U.S. Total Market Investment Option, BlackRock Basic Value Investment Option, BlackRock Global Allocation Investment Option, or the PIMCO VIT All Asset Portfolio Investment Option, you may continue to keep that Contract Value in those Investment Options, but any transfer or withdrawal from them cannot be replaced. However, if you are enrolled in an Asset Rebalancing Program that includes scheduled transfers of Contract Value into any of these Investment Options, then the program will continue to make those transfers (see “Special Transfer Services − Asset Rebalancing Program” in this section, below).
Modification of Additional Purchase Payment Requirements. We may modify, suspend, waive or terminate our restrictions on Additional Purchase Payments at any time. This may include, but is not limited to, circumstances where:
•  you obtain our prior approval to make Additional Purchase Payments for Contracts with or without GMWB Riders, and we waive our restrictions; or
•  we impose additional restrictions on, or eliminate, your ability to make any Additional Purchase Payments through Financial Account Plans and/or Payroll Plans.
Maximum Number of Investment Options. There is no limit on the number of Investment Options to which you may allocate Purchase Payments.
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Payment Enhancement
The optional Payment Enhancement Rider was not available for any John Hancock USA Contract, or any John Hancock New York Contracts issued prior to January 1, 2001 or on or after November 12, 2007. The Payment Enhancement Rider was only available with Contracts issued in New York by John Hancock New York. You may only have elected the Payment Enhancement Rider at issue and, once elected, it is irrevocable. The minimum initial Purchase Payment required to elect the Payment Enhancement was $10,000. We imposed an additional fee for the Payment Enhancement Rider and Contracts with this feature are subject to a higher withdrawal charge for a longer period of time.
If you elected the Payment Enhancement Rider, we add a Payment Enhancement to your Contract when you make a Purchase Payment. The Payment Enhancement is equal to 4% of the Purchase Payment and is allocated among Investment Options in the same proportion as your Purchase Payment. For John Hancock New York Contracts issued on or after July 12, 2004 and prior to November 1, 2004, or between October 16, 2006 and April 30, 2007, the Payment Enhancement is 5%. The Payment Enhancement is funded from John Hancock New York’s General Account.
Purchase Payments Which Are Not Eligible for a Payment Enhancement. If the Owner’s Spouse is the Beneficiary, the Spouse continues the Contract as the new Owner and a death benefit is paid upon the death of the Spouse. For purposes of calculating this death benefit, the death benefit paid upon the first Owner’s death will be treated as a Purchase Payment to the Contract. Such Purchase Payment will not be eligible for a Payment Enhancement.
Tax Considerations. Payment Enhancements are not considered to be “investment in the contract” for income tax purposes (see “VII. Federal Tax Matters”).
Matters to Consider About the Payment Enhancement. There may be circumstances where you may be worse off for having purchased a Contract with a Payment Enhancement as opposed to a Contract without a Payment Enhancement. For example, the higher charges for a Contract with a Payment Enhancement may over time exceed the amount of the Payment Enhancement and any earnings thereon. Before making any allowable Additional Purchase Payments, you and your financial representative should consider:
•  The length of time that you plan to own your Contract;
•  The frequency, amount and timing of any partial surrenders; and
•  The amount and frequency of your Additional Purchase Payments.
We expect to make a profit from the Contracts. The charges used to recoup the expense of paying the Payment Enhancement include the withdrawal charge and the asset-based charges (see “VI. Charges and Deductions”).
If you are eligible and would like to make Additional Purchase Payments to a Contract in connection with certain Qualified Plans, then special considerations regarding the Payment Enhancement may apply. Corporate and self-employed pension and profit sharing plans, as well as tax-sheltered annuity plans, are subject to nondiscrimination rules. The nondiscrimination rules generally require that benefits, rights, or features of the plan not discriminate in favor of highly compensated employees. In evaluating whether Additional Purchase Payments to your Contract are suitable in connection with such a Qualified Plan, you should consider the effect of the Payment Enhancement on the plan’s compliance with the applicable nondiscrimination requirements. Violation of these nondiscrimination rules can cause loss of the plan’s tax favored status under the Code (see “VII. Federal Tax Matters”).
Additional Charges for the Payment Enhancement. If you elected the Payment Enhancement Rider, the Separate Account Annual Expenses are increased by 0.35%. The guaranteed interest rate on Fixed Investment Options is reduced by 0.35%. In addition, each Purchase Payment will be subject to a higher withdrawal charge for a longer period of time. The maximum withdrawal charge if the Payment Enhancement is elected is 8% (as opposed to 6% with no Payment Enhancement) and the withdrawal charge period is 8 years if the Payment Enhancement is elected (as opposed to 7 years with no Payment Enhancement).
Accumulation Units
During the Accumulation Period, we establish an Investment Account for you for each Variable Investment Option to which you allocate a portion of your Contract Value. We credit amounts to those Investment Accounts in the form of “accumulation units” to measure the value of the variable portion of your Contract during the Accumulation Period. We calculate and credit the number of accumulation units in each of your Contract’s Investment Accounts by dividing (i) the amount allocated to that
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Investment Account by (ii) the value of an accumulation unit for that Investment Account we next compute after a purchase transaction is complete.
We usually credit an approved Additional Purchase Payment received by mail or wire transfer that we accept on the Business Day on which it is received in Good Order at our Annuities Service Center. We will promptly return any amount that we do not accept as an Additional Purchase Payment or that is otherwise not in Good Order.
We deduct accumulation units based on the value of an accumulation unit we next compute each time you make a withdrawal or transfer amounts from an Investment Option, and when we deduct certain Contract charges, pay death benefit proceeds, or apply amounts to an Annuity Option.
Automated transactions include transfers under Dollar Cost Averaging and the Asset Rebalancing program, pre-scheduled withdrawals or Purchase Payments, Required Minimum Distributions, substantially equal periodic payments under section 72(t) or 72(q) of the Code, transactions scheduled to occur on your Contract Anniversary, and annuity payments. Automated transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Business Day. In that case the transaction will be processed and valued on the next Business Day unless, with respect to Required Minimum Distributions, substantially equal periodic payments under section 72(t) or 72(q) of the Code, and annuity payments only, the next Business Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Business Day.
Value of Accumulation Units
The value of your accumulation units will vary from one Business Day to the next depending upon the investment results of the Investment Options holding Contract assets. We arbitrarily set the value of an accumulation unit for each Subaccount on the first Business Day the Subaccount was established. We determine the value of an accumulation unit for any subsequent Business Day by multiplying (i) the value of an accumulation unit for the immediately preceding Business Day by (ii) the “net investment factor” for that Subaccount (described below) for the Business Day on which the value is being determined. We value accumulation units as of the end of each Business Day. We deem a Business Day to end, for these purposes, at the time a Portfolio determines the net asset value of its shares.
We use a Portfolio share’s net asset value at the end of a Business Day to determine the accumulation unit value for a Purchase Payment, withdrawal or transfer transaction only if:
•  your Purchase Payment transaction is complete before the close of daytime trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time) for that Business Day, or
•  we receive your request for a withdrawal or transfer of Contract Value at the Annuities Service Center before the close of daytime trading on the New York Stock Exchange for that Business Day.
Net Investment Factor
The net investment factor is an index used to measure the investment performance of a Subaccount over a valuation period. The net investment factor may be greater than, less than or equal to one; therefore, the value of an accumulation unit may increase, decrease or remain the same. The net investment factor for each Subaccount for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where:
(a)  is the net asset value per share of a Portfolio share held in the Subaccount determined at the end of the current valuation period, plus any dividends and distributions received per share during the current valuation period;
(b)  is the net asset value per share of a Portfolio share held in the Subaccount determined as of the end of the immediately preceding valuation period; and
(c)  is a factor representing the charges deducted from the Subaccount on a daily basis for Separate Account annual expenses.
Transfers You May Make Among Investment Options
During the Accumulation Period, you may transfer amounts among the Variable Investment Options, subject to the frequent trading restrictions set forth below.
You may make a transfer by providing written notice to us, by telephone or by other electronic means that we may provide through the internet (see “Telephone and Electronic Transactions,” below). We will cancel accumulation units from the
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Investment Account from which you transfer amounts and we will credit accumulation units to the Investment Account to which you transfer amounts. Your Contract Value on the date of the transfer will not be affected by a transfer. We reserve the right to require your transfers to be at least $300 or, if less, the entire value of the Investment Account. If after the transfer the amount remaining in the Investment Account is less than $100, then we may transfer the entire amount instead of the requested amount.
Currently, we do not impose a charge for transfer requests. The first twelve transfers in a Contract Year are free of any transfer charge. For each additional transfer in a Contract Year, we do not currently assess a charge but we reserve the right (to the extent permitted by your Contract) to assess a reasonable charge (not to exceed the lesser of $25 or 2% of the amount transferred) to reimburse us for the expenses of processing transfers.
Frequent Transfer Restrictions. Investment Options in variable annuity and variable life insurance products can be a target for abusive transfer activity because these products value their Investment Options on a daily basis and allow transfers among Investment Options without immediate tax consequences. As a result, some investors may seek to transfer frequently into and out of Variable Investment Options in reaction to market news or to exploit some perceived pricing inefficiency. Whatever the reason, frequent transfer activity can harm long-term investors in a Variable Investment Option because such activity may expose a Variable Investment Option’s underlying Portfolio to increased Portfolio transaction costs and/or disrupt the Portfolio manager’s ability to effectively manage a Portfolio in accordance with its investment objective and policies, both of which may result in dilution with respect to interests held for long-term investment.
To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict transfers you make to two per calendar month per Contract, with certain exceptions, and have established procedures to count the number of transfers made under a Contract. Under the current procedures of the Separate Accounts, we count all transfers made during each Business Day as a single transfer. We do not count: (a) scheduled transfers made pursuant to our Dollar Cost Averaging program or our Asset Rebalancing Program; (b) transfers from a Fixed Investment Option at the end of its guarantee period; (c) transfers made within a prescribed period before and after a substitution of underlying Portfolios; or (d) transfers made during the Pay-out Period (these transfers are subject to a 30-day notice requirement, however, as described below in “Pay-out Period Provisions – Transfers During Pay-out Period”). Under each Separate Account’s policy and procedures, a Contract Owner may transfer Contract Value to the Ultra Short Term Bond Investment Option even if the Contract Owner reaches the two-transfers-per-month limit, as long as 100% of the Contract Value in all Variable Investment Options is transferred to the Ultra Short Term Bond Investment Option. If such a transfer to the Ultra Short Term Bond Investment Option is made, for a 30-calendar day period after such transfer, a Contract Owner may not make any subsequent transfers from the Ultra Short Term Bond Investment Option to another Variable Investment Option. We apply each Separate Account’s policy and procedures uniformly to all Contract Owners.
In addition to the transfer restrictions that we impose, the John Hancock Variable Insurance Trust, BlackRock Variable Series Funds, Inc. and PIMCO Variable Insurance Trust also have adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short- term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to a Portfolio upon request which it may use to identify any pattern or frequency of activity that violates its short-term trading policy.
We reserve the right to take other actions to restrict trading, including, but not limited to:
•  restricting the number of transfers made during a defined period;
•  restricting the dollar amount of transfers;
•  restricting the method used to submit transfers (e.g., requiring transfer requests to be submitted in writing via U.S. mail); and
•  restricting transfers into and out of certain Subaccount(s).
In addition, we reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the Portfolios (see “Withdrawals” in this section, below, for details on what suspensions of redemptions may be permissible). We also reserve the right to modify or terminate the transfer privilege at any time (to the extent permitted by applicable law).
While we seek to identify and prevent disruptive frequent trading activity, it is not always possible to do so. Therefore, we cannot provide assurance that the restrictions we impose will be successful in restricting disruptive frequent trading activity and avoiding harm to long-term investors.
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Additional Transfer Requirements for Ven 1 Contracts. Under the Ven 1 Contract, a Contract Owner may transfer prior to the Maturity Date amounts among Investment Accounts of the Contract without charge, but such transfers cannot be made on more than two occasions in any Contract Year. After annuity payments have been made for at least 12 months under a Ven 1 Contract, all or a portion of the Contract Value held in a Subaccount with respect to the Contract may be transferred by the Annuitant to one or more other Subaccounts. Such transfers can be made only once each 12 months upon notice to us at least 30 days before the due date of the first annuity payment to which the change will apply.
Telephone and Electronic Transactions
We permit you to request transfers by telephone. You may also apply to request withdrawals by telephone. We additionally encourage you to access information about your Contract, request transfers and perform some transactions electronically through the internet. If you have not done so, we encourage you to register for electronic delivery of your transaction confirmations. Please contact us at the telephone number or internet address shown on the first page of this Prospectus for more information on electronic transactions.
To access information and perform electronic transactions through our website, you will be required to create an account with a username and password, and maintain a valid e-mail address. You may also authorize other people to make certain transaction requests by telephone by sending us instructions in a form acceptable to us. If you register for electronic delivery, we keep your personal information confidential and secure, and we do not share this information with outside marketing agencies.
We are not liable for following instructions communicated by telephone or electronically that we reasonably believe to be genuine. We employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require you to provide information to verify your identity when you call us and we record all conversations with you. When someone contacts us by telephone and follows our procedures, we assume that you are authorizing us to act upon those instructions. For electronic transactions through the internet, you need to provide your username and password. You are responsible for keeping your password confidential and must notify us of:
•  any loss or theft of your password; or
•  any unauthorized use of your password.
We may be liable for any losses due to unauthorized or fraudulent instructions only where we fail to employ our procedures properly.
All transaction instructions we receive by telephone or electronically will be followed by either a hardcopy or electronic delivery of a transaction confirmation. Transaction instructions we receive by telephone or electronically before the close of any Business Day will usually be effective at the end of that day. Your ability to access or transact business electronically may be limited due to circumstances beyond our control, such as system outages, or during periods when our telephone lines or our website may be busy. We may, for example, experience unusual volume during periods of substantial market change.
We may suspend, modify or terminate our telephone or electronic transaction procedures at any time. We may, for example, impose limits on the maximum Withdrawal Amount available to you through a telephone transaction. Also, as stated earlier in this Prospectus, we have imposed restrictions on transfers and reserve the right to take other actions to restrict trading, including the right to restrict the method used to submit transfers (e.g., by requiring transfer requests to be submitted in writing via U.S. mail). We also reserve the right to suspend or terminate the transfer privilege altogether with respect to anyone who we feel is abusing the privilege to the detriment of others.
Special Transfer Services – Dollar Cost Averaging Program
We administer a Dollar Cost Averaging (“DCA”) program. If you entered into a DCA agreement, you may have elected, at no cost, to automatically transfer on a monthly basis a predetermined dollar amount from any Variable Investment Option, or, if available, from a Fixed Investment Option we permitted for this purpose (the “DCA Source Investment Option”), to other Variable Investment Options (the “Destination Investment Options”), until the amount in the DCA Source Investment Option is exhausted. You may make Additional Purchase Payments (if not otherwise restricted) while you are enrolled in a DCA program. If you do not provide us with express written allocation instructions for these Additional Purchase Payments, no amounts will be allocated into your DCA Source Investment Option. Instead, they will be allocated among the Destination Investment Options according to the allocation you selected upon enrollment in the DCA program.
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The DCA program allows investments to be made in equal installments over time in an effort to reduce the risk posed by market fluctuations. Therefore, you may achieve a lower purchase price over the long-term by purchasing more accumulation units of a particular Subaccount when the unit value is low, and less when the unit value is high. However, the DCA program does not guarantee profits or prevent losses in a declining market and requires regular investment regardless of fluctuating price levels. In addition, the DCA program does not protect you from market fluctuations in your DCA Source Investment Option. If you are interested in the DCA program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. You may elect out of the DCA program at any time. There is no charge for participation in the DCA program.
Please consult with your financial representative to assist you in determining whether the DCA program is suited for your financial needs and investment risk tolerance.
Special Transfer Services − Asset Rebalancing Program
We administer an Asset Rebalancing Program which enables you to specify the allocation percentage levels you would like to maintain in particular Investment Options. We automatically rebalance your Contract Value pursuant to the schedule described below to maintain the indicated percentages by transfers among the Investment Options. (Fixed Investment Options are not eligible for participation in the Asset Rebalancing Program.) You must include your entire value in the Variable Investment Options in the Asset Rebalancing Program. Other investment programs, such as the DCA program, or other transfers or withdrawals may not work in concert with the Asset Rebalancing Program. Therefore, you need to monitor your use of these other programs and any other transfers or withdrawals while the Asset Rebalancing Program is being used. If you are interested in the Asset Rebalancing Program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in the Asset Rebalancing Program.
For rebalancing programs begun on or after October 1, 1996, we permit asset rebalancing only on the following time schedules:
•  quarterly on the 25th day of the last month of the calendar quarter (or the next Business Day if the 25th is not a Business Day);
•  semi-annually on June 25th and December 26th (or the next Business Day if these dates are not Business Days); or
•  annually on December 26th (or the next Business Day if December 26th is not a Business Day).
Rebalancing will continue to take place on the last Business Day of every calendar quarter for rebalancing programs begun prior to October 1, 1996.
Withdrawals
During the Accumulation Period, you may withdraw all or a portion of your Contract Value upon written request (complete with all necessary information) to the Annuities Service Center. You may make withdrawals by telephone, as described above under “Telephone and Electronic Transactions.” For certain Qualified Contracts, exercise of the withdrawal right may require the consent of the Qualified Plan participant’s Spouse under the Code. See the SAI for further information regarding the impact of withdrawals from section 403(b) Qualified Contracts. In the case of a total withdrawal, we will pay the Contract Value as of the date of receipt of the request at our Annuities Service Center, minus any Unpaid Loans and any applicable withdrawal charge, Rider charge, administrative fee, or tax. We will then cancel the Contract. In the case of a withdrawal, we will pay the amount requested and cancel accumulation units credited to each Investment Account equal in value to the Withdrawal Amount from that Investment Account.
When making a withdrawal, you may specify the Investment Options from which the withdrawal is to be made. The Withdrawal Amount requested from an Investment Option may not exceed the value of that Investment Option minus any applicable withdrawal charge. If you do not specify the Investment Options from which a withdrawal is to be taken, we take the withdrawal proportionally from all of your Variable Investment Options until exhausted, and then from the Fixed Investment Options beginning with the shortest guarantee period first and ending with the longest guarantee period last. For rules governing the order and manner of withdrawals from the Fixed Investment Options, see “Fixed Investment Options.”
We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. If you want to use a part of your Contract Value to purchase an immediate annuity contract, you must make a withdrawal request, which will be subject to any applicable withdrawal charge. Such a withdrawal may also have tax consequences.
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There is no limit on the frequency of withdrawals; however, the amount withdrawn must be at least $300 or, if less, the entire balance in the Investment Option. If after the withdrawal (and deduction of any applicable withdrawal charge) the amount remaining in the Investment Option is less than $100, we reserve the right to treat the withdrawal as a withdrawal of the entire amount held in the Investment Option. If the Withdrawal Amount would reduce the Contract Value to less than $300 or the remaining withdrawal charge, if greater, we generally treat the withdrawal as a total withdrawal of the Contract Value. We currently enforce these Contract minimum restrictions only for Contracts that do not have a guaranteed minimum withdrawal benefit Rider or, where applicable, a guaranteed minimum income benefit Rider. We reserve the right to enforce these restrictions for other Contracts in the future.
When we receive a withdrawal request in Good Order at our Annuities Service Center, we will pay the amount of any withdrawal from the Variable Investment Options promptly, and in any event within seven calendar days of receipt of the request. We reserve the right to defer the right of withdrawal or postpone payments for any period when:
•  the New York Stock Exchange is closed (other than customary weekend and holiday closings);
•  trading on the New York Stock Exchange is restricted;
•  an emergency exists, as determined by the SEC, as a result of which disposal of securities held in a Separate Account is not reasonably practicable or it is not reasonably practicable to determine the value of the Separate Accounts’ net assets;
•  pursuant to SEC rules, the Money Market Subaccount suspends payment of redemption proceeds in connection with a liquidation of the underlying Portfolio; or
•  the SEC, by order, so permits for the protection of security holders.
Applicable rules and regulations of the SEC shall govern as to whether trading is restricted or an emergency exists.
Impact of Divorce. In the event that you and your Spouse become divorced, we will treat any request to reduce or divide benefits under a Contract as a request for a withdrawal of Contract Value. The transaction may be subject to any applicable tax or withdrawal charge. Also, for Contracts issued with an optional guaranteed minimum withdrawal benefit Rider, your guarantee may be reduced.
Tax Considerations. Withdrawals from the Contract may be subject to income tax and a 10% penalty tax. Withdrawals are permitted from Contracts issued in connection with Section 403(b) Plans only under limited circumstances (see “VII. Federal Tax Matters – Other Qualified Plans”).
Signature Guarantee Requirements for Surrenders and Withdrawals
(Not applicable to Contracts issued in New Jersey*)
We may require that you provide a signature guarantee on a withdrawal or surrender request in the following circumstances:
•  you have no signed application on file with us; or
•  you are requesting that we mail the amount withdrawn to an alternate address; or
•  you have changed your address within 30 days of the withdrawal or surrender request; or
•  you are requesting a withdrawal or surrender in the amount of $250,000 or greater.
We must receive the original signature guarantee on your withdrawal or surrender request. We do not accept copies or faxes of a signature guarantee. You may obtain a signature guarantee at most banks, financial institutions or credit unions. A notarized signature is not the same as a signature guarantee and does not satisfy this requirement. There may be circumstances, of which we are not presently aware, in which we would not impose a signature guarantee on a surrender or withdrawal as described above.
*For New Jersey residents, we do not require a signature guarantee to process a withdrawal and send to the address of record, but we will not send the withdrawal payment via EFT unless we receive a signature guarantee.
Special Withdrawal Services – The Income Plan
We administer an Income Plan (“IP”) that permits you to pre-authorize a periodic exercise of the Contractual withdrawal rights described above. After entering into an IP agreement, you may instruct us to withdraw a level dollar amount from specified Investment Options on a periodic basis. We limit the total of IP withdrawals in a Contract Year to not more than 10% of the Purchase Payments made (to ensure that no withdrawal or market value charge, where applicable, will ever apply to an IP withdrawal). If additional withdrawals outside the IP program are taken from a Contract in the same Contract Year in
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which an IP program is in effect, IP withdrawals after the withdrawal charge-free Withdrawal Amount has been exceeded are subject to a withdrawal charge, where applicable. The IP is not available to Contracts for which Purchase Payments are being automatically deducted from a bank account on a periodic basis. IP withdrawals will be free of market value charges, where applicable. We reserve the right to suspend your ability to make Additional Purchase Payments while you are enrolled in an IP. IP withdrawals, like other withdrawals, may be subject to income tax and a 10% penalty tax. If you are interested in an IP, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in the IP program.
Special Withdrawal Services – The Income Made Easy Program
Our Income Made Easy Program provides you with an automatic way to access guaranteed withdrawal amounts if you purchased a GMWB Rider with a Contract. There is no charge for participation in this program. Please read “Pre-authorized Withdrawals – The Income Made Easy Program” in Appendix C for more information.
Optional Guaranteed Minimum Withdrawal Benefits
Please see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for a general description of the Income Plus For Life® Series, Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up, Principal Plus for Life Plus Spousal Protection, and Principal Returns (where available) optional benefit Riders that may provide guaranteed minimum withdrawal benefits under the Contract you purchased. Under these optional benefit Riders, we guarantee that you may withdraw a percentage of your investment each year, even if your Contract Value reduces to zero. We increase the amounts we guarantee by a Credit (also referred to as a “Bonus”) if you choose not to make any withdrawals at all during certain Contract Years. Depending on market performance, you may also be able to increase or “step up” the amounts we guarantee on certain dates. If you withdraw more than a guaranteed annual amount, however, we reduce the amounts we guarantee for future withdrawals.
Death Benefit During Accumulation Period
The Contracts described in this Prospectus generally provide for distribution of death benefits if the Owner dies before the Annuity Commencement Date.
We use the term Owner-driven when we describe death benefits under some versions of the Contracts (Venture® 2006, Ven 24, Ven 22 and Ven 20), where we determine a death benefit upon the death of the Owner during the Accumulation Period. Under these versions, we do not pay a death benefit upon the death of an Annuitant before the Maturity Date, unless:
•  You, the Owner, are the Annuitant, or
•  We issued your Contract to an Owner that is not an individual (for example the Owner is a trust) and we deem the Annuitant to be the Owner for purposes of determining the death benefit.
We use the term Annuitant-driven when we describe death benefits under other versions of the Contracts (Ven 9, Ven 8, Ven 7, Ven 3 and Ven 1), where we determine a death benefit on the Annuitant’s death, instead of the Owner’s death, if the Annuitant predeceases the Owner during the Accumulation Period. Even under Annuitant-driven Contracts, however, we will make a distribution of Contract Value if you are the Owner, but not the Annuitant, and you predecease the Annuitant during the Accumulation Period. For purposes of determining the amount of any death benefits, we treat the Annuitant as an Owner under Nonqualified Contracts where the Owner is not an individual (for example, the Owner is a corporation or a trust). We treat a change in the Annuitant or any co-Annuitant under this type of Annuitant-driven Contract as the death of the Owner, and we distribute the Contract Value. In cases where a change in the Annuitant (or co-Annuitant) results in a distribution, we reduce the amount by charges which would otherwise apply upon withdrawal. If a Nonqualified Contract has both an individual and a non-individual Owner, we determine death benefits as provided in the Contract upon the death of the Annuitant or any individual Owner, whichever occurs earlier.
The death benefit under Owner-driven and Annuitant-driven Contracts is the greater of:
•  the Contract Value; or
•  the respective minimum death benefit described below.
The minimum death benefits provided under both Owner-driven and Annuitant-driven Contracts differ, depending on when you purchased a Contract, our maximum limits on death benefits at that time, the jurisdiction in which we issued a Contract,
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and the age of the oldest Owner (or Annuitant) on the date of issue. In addition, you may have purchased a Contract with an optional benefit Rider that will enhance the amount of death benefit.
Please read your Contract carefully to determine the minimum death benefit under your Contract and any enhanced death benefit payable during the Accumulation Period.
We decrease the death benefit by the amount of any Debt under a Contract (including any unpaid interest), and adjust the death benefit if you make withdrawals. We increase the death benefit by any optional enhanced death benefits that you may have purchased.
Minimum Death Benefit – Owner-driven Contracts. We describe principal features of the applicable minimum death benefit on Owner-driven Contracts in the text below each of the following tables.
Contract Version Availability 1 Death Benefit based on
Venture ® 2006 May 2006 – October 2011 Owner
1 Subject to availability in each state.
Minimum Death Benefit Limits: Adjustment for withdrawals. The minimum death benefit equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals. We reduce the minimum death benefit proportionally in connection with withdrawals.
Contract Version Availability 1 Death Benefit based on
Ven 20, 22 May 1998 – May 2006 Oldest Owner
Ven 24 (NY Only) May 1999 – May 2006 Oldest Owner
1 Subject to availability in each state.
Minimum Death Benefit Limits: Adjustment for withdrawals. We limit the minimum death benefit on this type of Ven 20 and Ven 22 Contract to $10 million, except for (a) Contracts issued in HI, MA, MN, NY & VT; (b) Contracts issued prior to July 25, 2003 in IL & PA; and (c) Contracts issued prior to June 2, 2003 in all other states. We also reduce the minimum death benefit proportionally in connection with withdrawals. For Contracts issued prior to January 1, 2003, however, the amount deducted in connection with withdrawals is the dollar amount of the withdrawal.
Principal Features – Oldest Owner less than age 81 at issue. During the first Contract Year, the minimum death benefit equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals.
The minimum death benefit during any Contract Year after the first Contract Year equals the greater of (i) or (ii), where:
(i)  equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals; and
(ii)  is the greatest Anniversary Value prior to the oldest Owner's turning age 81. “Anniversary Value” is the Contract Value on a Contract Anniversary, increased by all Purchase Payments made, less any amount deducted in connection with withdrawals, since that Contract Anniversary.
Principal Features – Oldest Owner age 81 or more at issue. The minimum death benefit equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals.
Contract Version Availability 2 Death Benefit based on
Ven 20, 22 May 1994 – May 1998 Oldest Owner
2 See state availability chart below.
Principal Features. Oldest Owner less than 81 at issue and Owner dies prior to his or her 85th birthday. During the first Contract Year, the minimum death benefit on this type of Ven 20 and Ven 22 Contract is the sum of all Purchase Payments made, less any amounts deducted in connection with withdrawals.
During any subsequent Contract Year, the minimum death benefit is the death benefit on the last day of the previous Contract Year, plus any Purchase Payments made and less any amounts deducted in connection with withdrawals since then. If any Owner dies after his or her 85th birthday, however, the minimum death benefit is the sum of all Purchase Payments made, less any amounts deducted in connection with withdrawals.
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Principal Features. Oldest Owner age 81 or more at issue. The minimum death benefit is the Contract Value less any applicable withdrawal charge at the time of payment of benefits. For Contracts issued on or after October 1, 1997, we will waive any withdrawal charges applied against the death benefit.
The amount deducted in connection with withdrawals is the dollar amount of the withdrawal. Withdrawal charges are not applied on payment of the death benefit (whether taken through a partial or total withdrawal or applied under an Annuity Option).
Limited Availability. We issued this version of the Ven 20 and Ven 22 Contracts in Puerto Rico, and in these other jurisdictions during the periods shown below:
From August 15, 1994 to: In the states of:
May 1, 1998 Alaska, Alabama, Arizona, Arkansas, California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming
June 1, 1998 Connecticut
July 1, 1998 Minnesota, Montana, District of Columbia
October 1, 1998 Texas
February 1, 1999 Massachusetts
March 15, 1999 Florida, Maryland, Oregon
November 1, 1999 Washington
Minimum Death Benefit – Annuitant-driven Contracts. We describe principal features of the applicable minimum death benefit on Annuitant-driven Contracts in the following sub-sections and in the text under each of the tables below.
Death of Annuitant who is not the Owner. We will pay the applicable minimum death benefit, less any Debt, to the Beneficiary upon the death of the Annuitant if the Owner is not the Annuitant and the Annuitant dies before the Owner and before the Annuity Commencement Date. If there is more than one such Annuitant, the minimum death benefit will be paid on the death of the last surviving co-Annuitant, if any, if death occurs before the Owner’s death and before the Annuity Commencement Date. The death benefit will be paid either as a lump sum or in accordance with any of the distribution options available under the Contract. Ven 7, Ven 8 and Ven 9: An election to receive the death benefit under an Annuity Option must be made within 60 days after the date on which the death benefit first becomes payable. Ven 7, Ven 8 and Ven 9: Rather than receiving the minimum death benefit, the Beneficiary may elect to continue the Contract as the new Owner. (In general, a Beneficiary who makes such an election will nonetheless be treated for federal income tax purposes as if he or she had received the minimum death benefit.)
Death of Annuitant who is the Owner. We will pay the applicable minimum death benefit, less any Debt, to the Beneficiary if the Owner is the Annuitant, dies before the Annuity Commencement Date and is not survived by a co-Annuitant. Ven 7, Ven 8 and Ven 9: If the Contract is a Nonqualified Contract, and a co-Annuitant survives the Owner, instead of a minimum death benefit, we will distribute an amount equal to the amount payable on total withdrawal without reduction for any withdrawal charge to the successor Owner (the person, persons or entity to become the Owner) instead of the Beneficiary. Ven 3: If the Contract is a Nonqualified Contract, and a co-Annuitant survives the Owner, instead of a minimum death benefit, we will distribute an amount equal to the amount payable on total withdrawal without reduction for any withdrawal charge to the successor Owner or to the Contract Owner’s estate. Ven 1: The Contract does not provide for co-Annuitants or successor Owners.
Death of Owner who is not the Annuitant. Ven 7, Ven 8 and Ven 9: If the Owner is not the Annuitant and dies before the Annuity Commencement Date and before the Annuitant, the successor Owner becomes the Owner of the Contract. If the Contract is a Nonqualified Contract, we will distribute an amount equal to the amount payable upon total withdrawal, without reduction for any withdrawal charge, to the successor Owner. If a Nonqualified Contract has more than one individual Owner, the distribution will be made to the remaining individual Owner(s) instead of a successor Owner. Ven 3: If the Contract is a Nonqualified Contract, instead of a minimum death benefit, we will distribute an amount equal to the amount payable on
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total withdrawal without reduction for any withdrawal charge to the successor Owner or to the Contract Owner’s estate. Ven 1: If the Contract is a Nonqualified Contract, instead of a minimum death benefit, we will distribute an amount equal to the amount payable on total withdrawal without reduction for any withdrawal charge to the Contract Owner’s estate.
Contract Version Availability Death Benefit based on
Ven 7 August 1989 – April 1999 Any Annuitant
Ven 8 September 1992 – February 1999 Any Annuitant
Ven 9 (NY Only) March 1992 – May 1999 Any Annuitant
Principal Features of Minimum Death Benefit. During the first six Contract Years, the minimum death benefit on Ven 7, Ven 8 and Ven 9 Contract equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals.
During any subsequent six Contract Year period, the minimum death benefit is the death benefit as of the last day of the previous six Contract Year period plus any Purchase Payments made and less any amount deducted in connection with withdrawals since then.
If death occurs after the first of the month following the decedent’s 85th birthday, the minimum death benefit is the Contract Value on the date due proof of death and all required claim forms are received at our Annuities Service Center.
Contract Version Availability Death Benefit based on
Ven 3 November 1986 – October 1993 Any Annuitant
Ven 1 June 1985 – June 1987 Any Annuitant
Principal Features of Minimum Death Benefit. During the first five Contract Years, the minimum death benefit on Ven 3 and Ven 1 Contracts equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals.
During any subsequent five Contract Year period:
•  For Ven 3, the minimum death benefit is the death benefit as of the last day of the previous five Contract Year period plus any Purchase Payments made and less any amount deducted in connection with withdrawals since then;
•  For Ven 1, the minimum death benefit equals the total amount of Purchase Payments less any amounts deducted in connection with withdrawals.
Payment of Death Benefit. The determination of the death benefit will be made, for both Owner-driven and Annuitant-driven Contracts, on the date we receive written notice and “proof of death,” as well as all required claims forms in Good Order from all Beneficiaries, at our Annuities Service Center. No one is entitled to the death benefit until this time. Proof of death occurs when we receive one of the following at our Annuities Service Center:
•  a certified copy of a death certificate; or
•  a certified copy of a decree of a court of competent jurisdiction as to the finding of death; or
•  any other proof satisfactory to us.
If any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant.
Distribution of Death Benefits. The following discussion applies principally to distribution of death benefits upon the death of an Owner under Contracts that were not issued in connection with Qualified Plans, i.e., Nonqualified Contracts. Tax law requirements applicable to Qualified Plans, including IRAs, and the tax treatment of amounts held and distributed under such plans, are quite complex. Accordingly, if your Contract is used in connection with a Qualified Plan, please seek competent legal and tax advice regarding requirements governing the distribution of benefits, including death benefits, under the plan.
In designating Beneficiaries you may impose restrictions on the timing and manner of payment of death benefits. The description of death benefits in this Prospectus does not reflect any of the restrictions that could be imposed, and it should be understood as describing what will happen if the Contract Owner chooses not to restrict death benefits under the Contract. If the Contract Owner imposes restrictions, those restrictions will govern payment of the death benefit to the extent permitted by the Code and by Treasury Department regulations.
Except as otherwise stated above for certain Annuitant-driven Contracts, we will pay the death benefit to the Beneficiary if any Contract Owner dies before the earlier of the Maturity Date or the Annuity Commencement Date. If there is a surviving
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Contract Owner, that Contract Owner will be deemed to be the Beneficiary. No death benefit is payable on the death of any Annuitant, except that if any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant.
Upon request, the death benefit proceeds may be taken in the form of a lump sum. In that case, we will pay the death benefits within seven calendar days of the date that we determine the amount of the death benefit, subject to postponement under the same circumstances for which payment of withdrawals may be postponed (see “Withdrawals” above). Beneficiaries who opt for a lump sum payout of their portion of the death benefit may choose to receive the funds either in a single check or wire transfer or in a John Hancock Safe Access Account (“JHSAA”). Similar to a checking account, the JHSAA provides the Beneficiary access to the payout funds via a checkbook, and account funds earn interest at a variable interest rate. Any interest paid may be taxable. The Beneficiary can obtain the remaining death benefit proceeds in a single sum at any time by cashing one check for the entire amount. The Beneficiary may draw a check on the JHSAA that is payable to himself/herself as well as to other persons or parties. Note, however, that a JHSAA is not a true checking account, but is solely a means of distributing the Contract’s death benefit. The Beneficiary can make only withdrawals, and not deposits. The JHSAA is part of our General Account; it is not a bank account and it is not insured by the FDIC or any other government agency. As part of our General Account, it is subject to the claims of our creditors. We receive a benefit from all amounts left in the JHSAA.
If the Beneficiary does not choose a form of payment, or the death benefit payable upon the death of an Owner is not taken immediately, the Contract continues, subject to the following and as may be stated otherwise above for certain Annuitant-driven Contracts:
•  The Beneficiary becomes the Owner.
•  We allocate any excess of the death benefit over the Contract Value to the Owner’s Investment Accounts in proportion to their relative values on the date of receipt by us of due proof of the Owner’s death.
•  No Additional Purchase Payments may be made (even if the Beneficiary is a surviving Spouse).
•  We waive withdrawal charges for all future distributions.
•  If the Beneficiary is the deceased Owner’s Spouse, he or she may continue the Contract as the new Owner without triggering adverse federal tax consequences. In such a case, the distribution rules applicable when a Contract Owner dies will apply when the Spouse, as the Owner, dies. In addition, a death benefit will be paid upon the death of the Spouse. For purposes of calculating the death benefit payable upon the death of the Spouse (excluding any optional benefits), we will treat the death benefit paid upon the first Owner’s death as a Purchase Payment to the Contract. In addition, all Purchase Payments made and all amounts deducted in connection with withdrawals prior to the date of the first Owner’s death will be excluded from consideration in the determination of the Spouse’s death benefit.
•  If the Beneficiary is not the deceased Owner’s Spouse, distribution of the Owner’s entire interest in the Contract must be made within five years of the Owner’s death, or alternatively, an individual Beneficiary may take distributions as an annuity, under one of the Annuity Options described below, which begins within one year after the Owner’s death and is payable over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary (see “Annuity Options” below). Note: we continue to assess the mortality and expense risks charge during this period, even though we bear only the expense risk and not any mortality risk (see “VI. Charges and Deductions – Mortality and Expense Risks Fee”). If distribution is not made within five years and the Beneficiary has not specified one of the above forms of payment, we will distribute a lump sum cash payment of the Beneficiary’s portion of the death benefit. Also, if distribution is not made as an annuity, upon the death of the Beneficiary, any remaining death benefit proceeds will be distributed immediately in a single sum cash payment.
•  Alternatively, if the Contract is not a Qualified Contract, an individual Beneficiary may take distribution of the Owner’s entire interest in the Contract as a series of withdrawals over the Beneficiary’s life expectancy, beginning one year after the Owner’s death. If this form of distribution is selected, the Beneficiary may not reduce or stop the withdrawals but may in any year withdraw more than the required amount for that year. If life expectancy withdrawals have been selected and the initial Beneficiary dies while value remains in the Contract, a successor Beneficiary may either take a lump sum distribution of the remaining balance or continue periodic withdrawals according to the original schedule based on the initial Beneficiary’s life expectancy.
We may change the way we calculate the death benefit if you substitute or add any Contract Owner. If we do, the new death benefit will equal the Contract Value as of the date of the ownership change. We will also treat the Contract Value on the date of the change as a “Purchase Payment” made on that date for any subsequent calculations on the death benefit prior to the
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Annuity Commencement Date, and we will not consider any Purchase Payments made and any amounts deducted in connection with withdrawals prior to the date of the ownership change in our determination of the death benefit. We will not change the way we calculate the death benefit if the person whose death will cause the death benefit to be paid is the same after the ownership change or if you transfer ownership to the Owner’s Spouse.
A change of Contract Owner may be a taxable event if the Owner or co-Owner before the change is an individual and the new Owner or co-Owner is not a Spouse of the previous Owner (or co-Owner). Please consult with your own qualified tax professional for further information relevant to your situation.
Optional Enhanced Death Benefits
Please see Appendix B: “Optional Enhanced Death Benefits” for a general description of the following optional benefit Riders that may enhance death benefits under the Contract you purchased. For Contracts issued in connection with a Qualified Plan, including an IRA, the Internal Revenue Code may now limit the availability of certain “Optional Enhanced Death Benefits” for certain classes of Beneficiaries.
Annual Step-Up Death Benefit. For Contracts issued after June 2010 (dates may vary by state) with an Annual Step-Up Death Benefit Rider, the Company guarantees a minimum death benefit up to the Maturity Date based on the Contract’s highest “Anniversary Value” that may be achieved up to the Contract Anniversary on or after the date you (or any joint Owner) reach 75 years old. The Annual Step-Up Death Benefit was only available if you (and every joint Owner) were under age 75 when we issued the Contract.
For all Contracts issued prior to June 2010 (dates may vary by state) with an Annual Step-Up Death Benefit Rider, the Company guarantees a minimum death benefit up to the Maturity Date based on the Contract’s highest “Anniversary Value” that may be achieved before you (or any joint Owner) reach 81 years old. The Annual Step-Up Death Benefit was only available if you (and every joint Owner) were under age 80 when we issued the Contract. The Annual Step-Up Death Benefit was only available at Contract issue and cannot be revoked once elected.
Guaranteed Earnings Multiplier Death Benefit. (Not available in New York and Washington.) John Hancock USA offered the Guaranteed Earnings Multiplier Death Benefit Rider between July 2001and May 2006, subject to state availability. Under the Guaranteed Earnings Multiplier Rider, John Hancock USA guarantees that upon the death of any Contract Owner prior to the Maturity Date, John Hancock USA will increase the death benefit otherwise payable under the Contract by a percentage of earnings, up to a maximum amount. Under Guaranteed Earnings Multiplier, John Hancock USA increases the death benefit by 40% of the appreciation in the Contract Value upon the death of any Contract Owner if you (and every joint Owner) were less than 70 years old when we issued a Contract, and by 25% of the appreciation in the Contract Value if you (or any joint Owner) were 70 or older at issue. John Hancock USA reduces the “appreciation in the Contract Value” proportionally in connection with withdrawals of Contract Value and, in the case of certain Qualified Contracts, by the amount of any Unpaid Loans under a Contract. Guaranteed Earnings Multiplier was available only at Contract issue and cannot be revoked once elected.
Triple Protection Death Benefit. (Not available in New York and Washington) John Hancock USA offered the Triple Protection Death Benefit Rider between December 2003 and December 2004. Triple Protection Death Benefit provides a guaranteed death benefit amount which can be increased or decreased as provided in the Rider. The Triple Protection Death Benefit replaces any other death benefit under the Contract. The Triple Protection Death Benefit Rider was available only at Contract issue. It cannot be revoked if you elected it. Once Triple Protection Death Benefit is elected, the Owner may only be changed to an individual who is the same age or younger than the oldest current Owner.
Pay-out Period Provisions
General
Generally, the Contracts contain provisions for the commencement of annuity payments to the Annuitant up to the Contract’s Maturity Date (the “Annuity Commencement Date” is the first day of the Pay-out Period). The Maturity Date is the date shown on your Contract’s specifications page, unless we have approved a change. For John Hancock USA Contracts, there is no contractual limit on when the earliest Annuity Commencement Date may be set. For John Hancock New York Contracts, the earliest allowable Annuity Commencement Date is one year from the Contract Date. If no date is specified, the Maturity Date is the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary (“Default Maturity Date”). You may request a different Maturity Date at any time, by written request or by
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telephone at the number listed on the first page of this Prospectus, at least one month before both the current and new Maturity Dates. You may also be able to change your Maturity Date on our website, www.jhannuities.com, if:
•  you are registered on the website, and
•  your Contract is active, and not owned by a custodian or continued by a surviving Spouse or Beneficiary.
Under our current administrative procedures, the new Maturity Date may not be later than the Default Maturity Date unless we consent otherwise.
Annuity Commencement and Maturity Dates which occur when the Annuitant is at an advanced age, e.g., past age 90, may have adverse income tax consequences. Please consult with your own qualified tax professional for information about potential adverse tax consequences for such Maturity Dates. For Qualified Contracts, distributions may be required before the Maturity Date (see “VII. Federal Tax Matters – General Information Regarding Qualified Contracts”).
Notice of Maturity Date. We will send you one or more notices at least 30 days before your scheduled Maturity Date and request that you verify information we currently have on file. If you do not choose an Annuity Option, do not make a total withdrawal of the Surrender Value, or do not ask us to change the Maturity Date to a later date, we will provide as a default an Annuity Option in the form of a life annuity with monthly payments guaranteed for ten years, as described in “Annuity Options offered in the Contract” below. The Annuity Commencement Date will be the Maturity Date. However, if the Contract Value on the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value in one lump sum to the Annuitant.
A Contract issued in New York by John Hancock New York has as its Maturity Date the date the oldest Annuitant turns age 90, unless the Contract’s specifications page states otherwise or you later change the date.
When John Hancock USA issued a Contract outside New York:
•  the Maturity Date for Contracts issued prior to May 1, 2006 is the first day of the month following the later of the 85th birthday of the oldest Annuitant or the tenth Contract Anniversary (6th Contract Anniversary for Ven 7 and Ven 8 Contracts), and
•  the Maturity Date for Contracts issued on and after May 1, 2006 is the first of the month following the 90th birthday of the oldest Annuitant or, in some cases, the tenth Contract Anniversary, if later, unless the Contract’s specifications page states otherwise or you later change the date.
    
Please review your Contract carefully to determine the Maturity Date applicable to your Contract.
You may select the frequency of annuity payments. However, if the Contract Value at the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value, minus any Unpaid Loans, in one lump sum to the Annuitant on the Annuity Commencement Date.
For Contracts offered through authorized representatives of certain selling firms, you cannot change either the Maturity Date or the Annuity Commencement Date to a date beyond the 95th birthday of the oldest Annuitant if the Contract is either:
•  a Nonqualified Contract, or
•  a Qualified Contract, unless the selling firm or an affiliate of the selling firm sponsors the Qualified Plan or serves as a custodian to the Qualified Plan.
Annuity Options
Annuity payments are available under the Contract on a fixed, variable, or combination fixed and variable basis. At any time during the Accumulation Period (after the first Contract Year in New York), you may select one or more of the Annuity Options described below on a fixed and/or variable basis or choose an alternate form of payment acceptable to us. A Beneficiary may also elect to apply the Death Benefit to an Annuity Option. We apply your entire Contract Value or the Beneficiary’s entire portion of the Death Benefit proceeds to the Annuity Option(s) selected. We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. If you request to use a part of your Contract Value to purchase an immediate annuity contract, we will treat the request as a withdrawal request, subject to any applicable withdrawal charge. Such a withdrawal may also have tax consequences. You may select the frequency of annuity payments. However, if the Contract Value at the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value in one lump sum to the Annuitant on the Annuity Commencement Date. We deduct a pro rata portion of the administration fee from each annuity payment.
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We determine annuity payments based on the Investment Account value of each Investment Option at the Annuity Commencement Date. If you do not select an Annuity Option, we will provide as a default a combination fixed and variable Annuity Option in the form of a life annuity with payments guaranteed for ten years. The Internal Revenue Code or the United States Treasury Regulations may preclude the availability of certain Annuity Options in connection with certain Qualified Contracts.
Once annuity payments commence:
•  you are no longer permitted to make any withdrawals under the Contract;
•  you are no longer permitted to make or receive any withdrawals under a guaranteed minimum withdrawal benefit Rider;
•  we may not change the Annuity Option or the form of settlement; and
•  your Guaranteed Minimum Death Benefit terminates.
Please read the description of each Annuity Option carefully. In general, a non-refund life annuity provides the highest level of payments. However, because there is no guarantee that any minimum number of payments will be made, an Annuitant might receive only one payment if the Annuitant dies prior to the date the second payment is due. You may also elect annuities with payments guaranteed for a certain number of years but the amount of each payment will be lower than that available under the non-refund life Annuity Option.
Annuity Options offered in the Contract. The Contracts guarantee the availability of the following Annuity Options:
Option 1(a): Non-Refund Life Annuity – An annuity with payments during the lifetime of the Annuitant. No payments are due after the death of the Annuitant. Because we do not guarantee that we will make any minimum number of payments, an Annuitant might receive only one payment if the Annuitant dies prior to the date the second payment is due.
Option 1(b): Life Annuity with Payments Guaranteed for 10 Years – An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if the Annuitant dies prior to the end of the tenth year.
Option 2(a): Joint & Survivor Non-Refund Life Annuity – An annuity with payments during the lifetimes of the Annuitant and a designated co-Annuitant. No payments are due after the death of the last survivor of the Annuitant and co-Annuitant. Because we do not guarantee that we will make any minimum number of payments, an Annuitant or co-Annuitant might receive only one payment if the Annuitant and co-Annuitant die prior to the date the second payment is due.
Option 2(b): Joint & Survivor Life Annuity with Payments Guaranteed for 10 Years – An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetimes of the Annuitant and a designated co-Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if both the Annuitant and the co-Annuitant die prior to the end of the tenth year.
Additional Annuity Options. When you annuitize, we may offer one or more Annuity Options in addition to the ones we are contractually obligated to make available.
Additional Annuity Options for Contracts with a Guaranteed Minimum Withdrawal Benefit Rider. When you annuitize, we may make one or more additional Annuity Options available to a Contract with one of our guaranteed minimum withdrawal benefit (“GMWB”) Riders (i.e., an Income Plus For Life® Series, Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Spousal Protection, Principal Plus for Life Plus Automatic Annual Step-Up, or Principal Returns optional benefit Rider, as described in Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”). If you purchased a Contract with a GMWB Rider, you may select the additional Annuity Options shown below. Unless we permit otherwise, these additional Annuity Options are only available for Maturity Dates that coincide with the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary.
GMWB Alternate Annuity Option 1: Lifetime Income Amount with Cash Refund – This Annuity Option is available if you purchased a Contract with one of the Income Plus For Life® Series Riders. For each of the Income Plus For Life – Joint Life® Riders, this Annuity Option is available only if one Covered Person, not two, remains on the Rider at the Annuity Commencement Date. Under this option, we will make annuity payments during the lifetime of the Annuitant. After the death of the Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the
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election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of:
•  the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the GMWB Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under a life with cash refund annuity.
GMWB Alternate Annuity Option 2: Joint & Survivor Lifetime Income Amount with Cash Refund – This Annuity Option is available if you purchased a Contract with one of the Income Plus For Life – Joint Life® Riders and both Covered Persons remain on the Rider at the Annuity Commencement Date. Under this option, we will make annuity payments during the joint lifetimes of the co-Annuitants. After the death of the last surviving Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of:
•  the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the GMWB Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under a joint life with cash refund annuity.
GMWB Alternate Annuity Option 3: Fixed Annuity with Period Certain – This Annuity Option is available if you purchased a Contract with the Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up or Principal Returns optional benefit Rider. If you purchased a Contract with a Principal Plus for Life Plus Spousal Protection Rider, this Annuity Option is available only if one Covered Person, not two, remains under the Rider at the Annuity Commencement Date. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetime of a single Annuitant. We determine the certain period by dividing the Benefit Base (may be referred to as the “Guaranteed Withdrawal Balance” in your Rider) at the Annuity Commencement Date by the amount of the annual annuity payment we determine for this option. This period will be rounded to the next higher month.
We determine the annual amount of Fixed Annuity payments under this option as the greater of:
•  the Lifetime Income Amount on the Maturity Date, if any, as provided by the GMWB Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 1(a): Non- Refund Life Annuity.
GMWB Alternate Annuity Option 4: Spousal LIA Fixed Annuity with Period Certain – This Annuity Option is available if you purchased a Contract with the Principal Plus for Life Plus Spousal Protection Rider, and both Covered Persons remain under the Rider at the Annuity Commencement Date. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetimes of the Annuitant and co-Annuitant. If you elect this option, we will make payments for a certain period and after that during the joint lifetimes of the Annuitant and Co-Annuitant. Payments will then continue during the remaining lifetime of the survivor. No payments are due after the death of the last surviving Annuitant or, if later, the end of the certain period. We determine the certain period by dividing the Benefit Base (may be referred to as the “Guaranteed Withdrawal Balance” in your Rider) at the Annuity Commencement Date by the amount of the annual annuity payment we determine for this option. This period will be rounded to the next higher month.
We determine the annual amount of Fixed Annuity payments under this option as the greater of:
•  the Lifetime Income Amount, if any, as provided by the Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 2(a): Joint and Survivor Non-Refund Life Annuity.
GMWB Alternate Annuity Option 5: Fixed Period Certain Only – This Annuity Option is available only if:
•  you purchased a Contract with a Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Spousal Protection, Principal Plus for Life Plus Automatic Annual Step-Up, or a Principal Returns optional benefit Rider; and
•  there is no Lifetime Income Amount remaining (or none has been determined) at the Annuity Commencement Date.
This Annuity Option provides a Fixed Annuity with payments guaranteed for a certain period and no payments thereafter. Under this option, we determine the certain period by dividing the Benefit Base (may be referred to as the “Guaranteed
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Withdrawal Balance” in your Rider) at the Maturity Date by the Guaranteed Withdrawal Amount at the Annuity Commencement Date. This period will be rounded to the next higher month. (If the period certain is less than 5 years, we may pay the benefit as a lump sum equal to the present value of the annuity payments at the rate of interest for Annuity Options as described in the Contract.) We determine the annual amount of Fixed Annuity payments under this option as the greater of:
•  the Guaranteed Withdrawal Amount on the Annuity Commencement Date as provided by the Rider that you purchased with your Contract; or
•  the annual amount for a Fixed Annuity with the same period certain that we determine for this option, but based on the interest rate for Annuity Options described in your Contract.
Fixed Annuity Options. Upon death (subject to the distribution of death benefits provisions; see “Death Benefit During Accumulation Period”), withdrawal or the Maturity Date of the Contract, the proceeds may be applied to a Fixed Annuity Option.
We determine the amount of each Fixed Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase the Fixed Annuity to the appropriate annuity factor table in the Contract. If the table we are currently using is more favorable to you, we will substitute that table. If you choose an Annuity Option that is not guaranteed in the Contract, we will use the appropriate table that we are currently offering. We guarantee the dollar amount of Fixed Annuity payments.
We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. If you request to use a part of your Contract Value to purchase an immediate annuity contract, we will treat the request as a withdrawal request, subject to any applicable withdrawal charge. Such a withdrawal may also have tax consequences.
Determination of Amount of the First Variable Annuity Payment
We determine the first Variable Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase a Variable Annuity to the annuity factor tables contained in the Contract. If the table we are currently using is more favorable to you, we will substitute that table. We will determine the amount of the Contract Value as of the date not more than ten Business Days prior to the Annuity Commencement Date. We will reduce Contract Value used to determine annuity payments by any applicable premium taxes.
The rates contained in the annuity tables vary with the Annuitant’s sex and age and the Annuity Option selected. However, we may not use sex-distinct tables for Contracts issued in connection with certain employer-sponsored retirement plans, with Contracts issued to residents of Massachusetts on or after January 1, 2009, or with Contracts issued in Montana. The longer the life expectancy of the Annuitant under any life Annuity Option or the longer the period for which payments are guaranteed under the option, the smaller the amount of the first monthly Variable Annuity payment will be.
Annuity Units and the Determination of Subsequent Variable Annuity Payments
We base Variable Annuity payments after the first one on the investment performance of the Subaccounts selected during the Pay-out Period. The amount of a subsequent payment is determined by dividing the amount of the first annuity payment from each Subaccount by the Annuity Unit value of that Subaccount (as of the same date the Contract Value to effect the annuity was determined) to establish the number of Annuity Units which will thereafter be used to determine payments. This number of Annuity Units for each Subaccount is then multiplied by the appropriate Annuity Unit value as of a uniformly applied date not more than ten Business Days before the annuity payment is due, and the resulting amounts for each Subaccount are then totaled to arrive at the amount of the annuity payment to be made. The number of Annuity Units generally remains constant throughout the Pay-out Period (assuming no transfer is made).
We charge the same Annual Separate Account Expenses during the annuitization period as we do during the Accumulation Period. We determine the “net investment factor” for an Annuity Unit in the same manner as we determine the net investment factor for an accumulation unit (see “Value of Accumulation Units” and “Net Investment Factor” in this section, above). The value of an Annuity Unit for each Subaccount for any Business Day is determined by multiplying the Annuity Unit value for the immediately preceding Business Day by the net investment factor for that Subaccount (see “Net Investment Factor”) for the valuation period for which the Annuity Unit value is being calculated and by a factor to neutralize the assumed interest rate.
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Generally, if the net investment factor is greater than the assumed interest rate, the payment amount will increase. If the net investment factor is less than the assumed interest rate, the payment amount will decrease.
We build a 3% assumed interest rate into the annuity tables in the Contract used to determine the first Variable Annuity payment. (For Ven 1, Ven 3, Ven 7, Ven 8 and Ven 9 Contracts, the assumed interest is 4%.) The smallest annual rate of investment return which is required to be earned on the assets of the Separate Account so that the dollar amount of Variable Annuity payments will not decrease is shown in the following table:
Contract Version Rate
Venture ® 2006 4.04%
Ven 20, 22, and 24 4.45%
Ven 3, 7, 8 and 9 5.47%
Ven 1 5.36%
Transfers During the Pay-out Period
Once Variable Annuity payments have begun, you may transfer all or part of the investment upon which those payments are based from one Subaccount to another. You must submit your transfer request to our Annuities Service Center at least 30 days before the due date of the first annuity payment to which your transfer will apply. We make transfers after the Annuity Commencement Date by converting the number of Annuity Units being transferred to the number of Annuity Units of the Subaccount to which the transfer is made, so that the next annuity payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the Annuity Units for the new Subaccount selected. We reserve the right to limit, upon notice, the maximum number of transfers a Contract Owner may make to four per Contract Year. Once annuity payments have commenced, a Contract Owner may not make transfers from a Fixed Annuity Option to a Variable Annuity Option or from a Variable Annuity Option to a Fixed Annuity Option. In addition, we reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of a Portfolio. We also reserve the right to modify or terminate the transfer privilege at any time in accordance with applicable law.
Surrenders
Full Surrenders During the Pay-out Period. You may surrender your Contract, after the Pay-out Period has begun, only if, at the time you annuitized, we offered and you selected a variable pay-out under a period certain only Annuity Option for 10, 15, or 20 years. Under this option, we will pay you the present value of any remaining guaranteed annuity payments (“Commuted Value”) of your Contract. The Commuted Value is determined on the day we receive your written request for surrender. We determine the Commuted Value by:
•  multiplying the number of Annuity Units we currently use to determine each payment by the respective Annuity Unit value on the last payment date (see “Annuity Units and the Determination of Subsequent Variable Annuity Payments” below for a description of an “Annuity Unit”);
•  assuming that the net investment factor for the remainder of the guarantee period will equal the assumed interest rate of 3%, resulting in level annuity payments; and
•  calculating the present value of these payments at the assumed interest rate of 3%.
If you elect to take the entire Commuted Value of the remaining annuity payments due in the Period Certain, no future annuity payments will be made.
Partial Surrenders During the Pay-out Period. We permit partial surrenders after the Pay-out Period has begun, only if, at the time you annuitized, we offered and you selected a variable pay-out under a period certain only Annuity Option for 10, 15, or 20 years. You may take partial surrenders of amounts equal to the Commuted Value of the payments that we would have made during the Period Certain. The Commuted Value is determined in the manner described above on the day we receive your written request for surrender.
If you elect to take only the Commuted Value of some of the remaining annuity payments due in the Period Certain, we will reduce the remaining annuity payments during the remaining Period Certain by reducing the number of Annuity Units used to determine payments (see “Annuity Units and the Determination of Subsequent Variable Annuity Payments” in this section, below, for how we determine the initial number of Annuity Units used to determine payments). Since there will be fewer
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Annuity Units, your remaining payments will be reduced. The new number of Annuity Units used to determine future payments after an amount is commuted will equal a × {1 – ((b ÷ c) ÷ d)}, where:
a  equals the number of Annuity Units used to determine future payments before the commutation;
b  equals the dollar amount requested to be paid out as part of the commutation;
c   equals the present value of all Annuity Units to be paid out if there were no commutation, where the interest rate used to present value the Annuity Units is the assumed interest rate of 3%; and
d  equals the Annuity Unit value on the day the commutation is executed.
For example, assume that before you request a partial Commuted Value, you will receive 400 units a year for 10 years. You request $20,000 in Commuted Value. Since you are receiving those 400 units for 10 years, c equals the present value of 400 units for 10 years starting the end of this year at a rate of an assumed interest rate of 3%. This value is 3,412.08 units. Assuming the annuity unit value on the day the commutation is executed is $12.50, after the commutation you will receive 400 × {1 – (($20,000 ÷ 3412.08) ÷ $12.50)} = 212.43 units a year for 10 years.
Once annuity payments begin under an Annuity Option, you cannot make any additional withdrawals under a Contract with a GMWB Rider
Death Benefit During the Pay-out Period
If an Annuity Option providing for payments for a guaranteed period has been selected, and the Annuitant dies during the Pay-out Period, we make the remaining guaranteed payments to the Beneficiary. We make any remaining payments as rapidly as under the method of distribution being used as of the date of the Annuitant’s death. If no Beneficiary is living, we commute any unpaid guaranteed payments to a single sum (on the basis of the interest rate used in determining the payments) and pay that single sum to the estate of the last to die of the Annuitant and the Beneficiary.
We do not make any payments to a Beneficiary, however, if the last surviving Covered Person dies while we are making payments under an Annuity Option providing only for payments for life, or payments during the Settlement Phase under an optional GMWB Rider. Please read Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for additional information.
Optional Guaranteed Minimum Income Benefits
Please see Appendix D: “Optional Guaranteed Minimum Income Benefits” for a general description of the Optional Guaranteed Retirement Income Program Riders that may enhance guaranteed income benefits under the Contract you purchased. These optional benefit Riders guarantee a minimum lifetime fixed income benefit in the form of fixed monthly annuity payments. We base the guarantee on an amount called the “Income Base,” which can be increased or decreased as provided in the Riders. The Guaranteed Retirement Income Program Riders were available only at Contract issue. The Riders cannot be revoked once elected.
Other Contract Provisions
Ownership
Prior to the Maturity Date, the Contract Owner is the person(s) designated in the specifications page or as subsequently named. On and after the Annuity Commencement Date, the Annuitant is the Contract Owner. If amounts become payable to any Beneficiary under the Contract, the Beneficiary is the Contract Owner.
You must make any requests to change ownership in writing and we must receive such written change at the Annuities Service Center. We reserve the right to approve or disapprove any change.
Before requesting a change of ownership or making an assignment of your Contract, please consider the following:
•  A change of ownership or a collateral assignment may be treated as a distribution from the Contract and subject to tax. We consider a collateral assignment to be a distribution from the Contract, and we will report any taxable amounts as may be required.
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•  In states where permitted, a change of ownership may result in termination of any applicable minimum withdrawal benefit guarantee. (If you purchased a GMWB Rider, you can get more information from Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits.”)
•  An addition of any Contract Owner may result in a reduction of the death benefit. We may reset the death benefit to an amount equal to the Contract Value as of the date of the change of ownership, and treat that amount as a “Purchase Payment” made on the same date for purposes of computing further adjustments to the amount of the death benefit.
•  In states where permitted, a substitution of any Contract Owner may result in a reduction of the death benefit. We may reset the death benefit to an amount equal to the Contract Value.
•  A change of ownership (or collateral assignment) is subject to the rights of any irrevocable Beneficiary.
•  You may not change ownership or make a collateral assignment after the earlier of the Maturity Date or the Annuity Commencement Date.
•  Contracts issued to a Qualified Plan may be subject to restrictions on transferability. For example, Qualified Contracts generally may not be transferred except by the trustee of an exempt employees’ trust which is part of a retirement plan qualified under section 401 of the Code or as otherwise permitted by applicable Treasury Department regulations. You may not be able to sell, assign, transfer, discount or pledge (as collateral for a loan or as security for the performance of an obligation, or for any other purpose) a Qualified Contract to any person other than us.
We assume no liability for any payments made or actions taken before a change is approved or an assignment is received or accepted (as applicable in the state where your Contract was issued). We assume no responsibility for the validity or sufficiency of any assignment. An absolute assignment or ownership change will revoke the interest of any revocable Beneficiary. Any resulting “Purchase Payment” will not be included in cumulative Purchase Payments and is not eligible for a Payment Enhancement, where available.
Group Contracts (John Hancock USA Contracts only). An eligible member of a group to which a group contract has been issued may have become an Owner under the Contract by submitting a completed application, if required by us, and a minimum Purchase Payment. If so, we issued a Contract summarizing the rights and benefits of that Owner under the group contract, or we issued an individual Contract to an applicant acceptable to us. We reserved the right to decline to issue a Contract to any person in our sole discretion. All rights and privileges under the Contract may be exercised by each Owner as to his or her interest unless expressly reserved to the group holder. However, provisions of any plan in connection with which the group contract was issued may restrict an Owner’s ability to exercise such rights and privileges.
In the case of a group annuity contract, we may not modify the group contract or any Contract without consent of the group holder or the Owner, as applicable, except to make it conform to any law or regulation or ruling issued by a governmental agency. However, on 60 days’ notice to the group holder, we may change the administration fees, mortality and expense risk charges, annuity purchase rates and the market value charge (where applicable) as to any Contract issued after the effective date of the modification. All Contract rights and privileges not expressly reserved to the group holder may be exercised by each Owner as to his or her interests as specified in his or her Contract.
Acceptance of Contracts. John Hancock USA has discontinued new applications and issuance of new group contracts.
Annuitant
The Annuitant is any natural person or persons whose life is used to determine the duration of annuity payments involving life contingencies. The Annuitant is entitled to receive all annuity payments under the Contract. If the Contract Owner names more than one person as an Annuitant, the second person named shall be referred to as “co-Annuitant.” The Annuitant is as designated on the Contract specifications page or in the application, unless changed. You must make any change of Annuitant in writing in a form acceptable to us and the change must be received at our Annuities Service Center. We must approve any change.
On the death of the Annuitant prior to the Annuity Commencement Date, the co-Annuitant, if living, becomes the Annuitant. If there is no living co-Annuitant, the Owner becomes the Annuitant (the Owner may name a new Annuitant). In the case of certain Qualified Contracts, there are limitations on the ability to designate and change the Annuitant and the co-Annuitant. The Annuitant becomes the Owner of the Contract on the Annuity Commencement Date.
If any Annuitant is changed and any Contract Owner is not a natural person, we normally distribute the entire interest in the Contract to the Contract Owner within five years. We reduce the amount distributed by charges that would otherwise apply upon withdrawal.
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Beneficiary
The Beneficiary is the person, persons or entity designated in your specifications page (or as subsequently changed). However, if there is a surviving Contract Owner, we treat that person as the Beneficiary. You may change the Beneficiary subject to the rights of any irrevocable Beneficiary. You must make any change in writing and the change must be received at our Annuities Service Center. We must approve any change. If approved, we effect such change as of the date on which it was written. We assume no liability for any payments made or actions taken before the change is approved. If no Beneficiary is living, any designated Contingent Beneficiary becomes the Beneficiary. The interest of any Beneficiary is subject to that of any assignee. If no Beneficiary or Contingent Beneficiary is living, the Beneficiary is the estate of the deceased Contract Owner. In the case of certain Qualified Contracts, Treasury Department regulations may limit designations of Beneficiaries.
For Ven 1, Ven 3, Ven 7, Ven 8 and Ven 9 Contracts only, the Beneficiary is initially designated in the application. You may change the Beneficiary during the lifetime of the Annuitant subject to the rights of any irrevocable Beneficiary. You must make any change in writing and the change must be received at our Annuities Service Center. We must approve any change. If approved, we will effect such change as of the date on which written. We assume no liability for any payments made or actions taken before the change is approved. Prior to the Maturity Date, if no Beneficiary survives the Annuitant, the Contract Owner or the Contract Owner’s estate will be the Beneficiary. The interest of any Beneficiary is subject to that of any assignee. In the case of certain Qualified Contracts, regulations promulgated by the Treasury Department prescribe certain limitations on the designation of a Beneficiary and the Code may limit the payout options available for certain classes of Beneficiaries.
Modification
We may not modify your Contract or certificate without your consent, except to the extent required to make it conform to any law or regulation or ruling issued by a governmental agency.
Code Section 72(s)
In order for our Nonqualified Contracts (i.e., Contracts not purchased to fund an IRA or other Qualified Plan) to be treated as annuities under the Code, we will interpret the provisions of the Contract so as to comply with the requirements of section 72(s) of the Code, which prescribes certain provisions governing distributions after the death of the Owner.
Misstatement and Proof of Age, Sex or Survival
We normally require proof of age, sex (where permitted by state law) or survival of any person upon whose age, sex or survival any payment depends. If the age or sex of the Annuitant has been misstated, the benefits will be those that would have been provided for the Annuitant’s correct age and sex. If we have made incorrect annuity or benefit payments under the Contract, the amount of any underpayment will be paid immediately and the amount of any overpayment will be deducted from future annuity or benefit payments.
Fixed Investment Options
Interests in a Fixed Investment Option are not registered under the Securities Act of 1933, as amended (the “1933 Act”), and each Company’s General Account is not registered as an investment company under the 1940 Act. Neither interests in a Fixed Investment Option nor a General Account are subject to the provisions or restrictions of the 1933 Act or the 1940 Act. Nonetheless, federal securities laws may require disclosures relating to interests in a Fixed Investment Option and a General Account to be accurate.
Interest Rates and Availability. Currently, we do not make any Fixed Investment Options available for Additional Purchase Payments. However, you may previously have allocated some or all of your Contract Value to a Fixed Investment Option, and we may, in the future, make Fixed Investment Options available under the Contract, including a DCA Fixed Investment Option under the DCA program (see “Special Transfer Services – Dollar Cost Averaging Program” for details). A Fixed Investment Option provides for the accumulation of interest on Purchase Payments at guaranteed rates for the duration of the guarantee period. We determine the guaranteed interest rates on amounts allocated or transferred to a Fixed Investment Option from time-to-time. In no event will the guaranteed rate of interest be less than guaranteed minimum interest rate stated in your Contract. Once an interest rate is guaranteed for a Fixed Investment Option, it is guaranteed for the duration of the guarantee period, and we may not change it.
When you purchased the Contract, certain Fixed Investment Options may have been available to you as detailed below.
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John Hancock USA Contracts:
Fixed Investment Options under Ven 7 and Ven 8 Contracts. For these Contracts, 1, 3 and 6 year Fixed Investment Options may have been available at issue. As of October 7, 2002, new Purchase Payments may not be allocated to the 1 and 3 year Fixed Investment Options and as of December 30, 2002, new Purchase Payments may not be allocated to the 6 year Fixed Investment Option.
Fixed Investment Options under Ven 20 and Ven 22 Contracts. For these Contracts, 1 and 3 year Fixed Investment Options were available for Contracts issued prior to October 7, 2002. New Purchase Payments under these Contracts may not be allocated to the 1 or 3 year Fixed Investment Options, but transfers from the Variable Investment Options will be permitted. For Contracts issued on and after October 7, 2002, Purchase Payments and transfers to the 1 and 3 year Fixed Investment Options are not allowed.
In addition, 5 and 7 year Fixed Investment Options were available for Contracts issued prior to December 30, 2002. New Purchase Payments under these Contracts may not be allocated to the 5 or 7 year Fixed Investment Options, but transfers from the Variable Investment Options will be permitted. For Contracts issued on and after December 2002, Purchase Payments and transfers to the 5 and 7 year Fixed Investment Options are not allowed.
Fixed Investment Options under Venture® Contracts (Venture® 2006). Currently, we do not make any Fixed Investment Options available.
No Fixed Investment Options for Ven 1 and Ven 3 Contracts. These Contracts do not provide for a fixed-dollar accumulation prior to the Maturity Date. You should disregard the description in this Prospectus of the Fixed Investment Options, Loans and the transfer and Dollar Cost Averaging provisions, to the extent that they relate to the Fixed Investment Options.
John Hancock New York Contracts:
Fixed Investment Options under Ven 9 Contracts. For these Contracts, 1, 3 and 6 year Fixed Investment Options may have been available at issue.
Fixed Investment Options under Venture® Contracts (Ven 24). For these Contracts, 1, 3, 5 and 7 year Fixed Investment Options may have been available at issue. If you purchased your Contract on or after March 24, 2003, you may not make Purchase Payments or transfers to the Fixed Investment Options. However, if you purchased your Contract prior to March 24, 2003 and elected any of the available Fixed Investment Options, you may be able to make Additional Purchase Payments and transfer money from the Variable Investment Options to the Fixed Investment Options available under your Contract.
Fixed Investment Options under Venture® Contracts (Venture® 2006). Currently, we do not make any Fixed Investment Options available.
Certain states may impose restrictions on the availability of Fixed Investment Options under your Contract.
Transfers. During the Accumulation Period, you normally may transfer amounts from a Fixed Investment Option to the Variable Investment Options only at the end of a guaranteed period. You may, however, transfer amounts from Fixed to Variable Investment Options prior to the end of the guarantee period pursuant to the DCA program (when available). Where there are multiple Investment Accounts within a Fixed Investment Option, amounts must be transferred from that Fixed Investment Option on a first-in-first-out basis.
You may also make transfers from Variable Investment Options to a Fixed Investment Option, if available, at any time prior to the Annuity Commencement Date, as permitted by applicable law. We establish a separate Investment Account each time you allocate or transfer amounts to a Fixed Investment Option, except that for amounts allocated or transferred the same day, we will establish a single Investment Account. You may not allocate amounts to a Fixed Investment Option that would extend the guarantee period beyond the Annuity Commencement Date.
Subject to certain regulatory limitations, we may determine to restrict payments and transfers to Fixed Investment Options at any time the declared interest rate in effect equals the minimum interest rate specified in your Contract.
Renewals. At the end of a guarantee period, you may establish a new Investment Account with the same guarantee period at the then current interest rate, if available, or transfer the amounts to a Variable Investment Option, all without the imposition of any charge. In the case of renewals in the last year of the Accumulation Period, the only Fixed Investment Option available
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is to have interest accrued for the remainder of the Accumulation Period at the then current interest rate for one-year guarantee period. If you do not specify a renewal option, we will select the one-year Fixed Investment Option.
Market Value Charge. Any amount withdrawn, transferred or borrowed from a Fixed Investment Account prior to the end of the guarantee period may be subject to a market value charge. A market value charge is assessed only when current interest rates are higher than the guaranteed interest rate on the account. The charge compensates us for our investment losses on amounts withdrawn, transferred or borrowed prior to the Maturity Date. The formula for calculating this charge is set forth in your Contract. A market value charge will be calculated separately for each Investment Account affected by a transaction to which a market value charge may apply. The market value charge for an Investment Account will be calculated by multiplying the amount withdrawn or transferred from the Investment Account by the adjustment factor described below.
For most Venture® Contracts, the adjustment factor is determined by the following formula: 0.75 × (B-A) × C/12 where:
A =  The guaranteed interest rate on the Investment Account.
B =  The guaranteed interest rate available, on the date the request is processed, for amounts allocated to a new Investment Account with the same length of guarantee period as the Investment Account from which the amounts are being withdrawn.
C =  The number of complete months remaining to the end of the guarantee period.
For purposes of applying this calculation, the maximum difference between “B” and “A” will be 3%. The adjustment factor may never be less than zero.
For Ven 7, Ven 8 and Ven 9 Contracts, however, the maximum difference between “B” and “A” will be 3%. The adjustment factor will never be greater than 2 × (A – 4%) and never less than zero. (“A” is the guaranteed interest rate on the Investment Account. “B” is the guaranteed interest rate available, on the date the request is processed, for amounts allocated to a new Investment Account with the same length of guarantee period as the Investment Account from which the amounts are being withdrawn).
The total market value charge will be the sum of the market value charges for each Investment Account being withdrawn. Where the guaranteed rate available on the date of the request is less than the rate guaranteed on the Investment Account from which the amounts are being withdrawn (B – A in the adjustment factor is negative), there is no market value charge. There is only a market value charge when interest rates have increased (B – A in the adjustment factor is positive).
We make no market value charge on withdrawals from the Fixed Investment Options in the following situations:
•  death of the Owner (death of Annuitant under Ven 7, Ven 8 and Ven 9 Contracts);
•  amounts withdrawn to pay fees or charges;
•  amounts applied at the Maturity Date to purchase an annuity at the guaranteed rates provided in the Contract;
•  amounts withdrawn from Investment Accounts within one month prior to the end of the guarantee period (applicable only to 3- and 6-year Fixed Investment Options for Ven 7, Ven 8 and Ven 9 Contracts);
•  amounts withdrawn from a one-year Fixed Investment Account (not applicable under Ven 7, Ven 8 and Ven 9 Contracts); and
•  amounts withdrawn in any Contract Year that do not exceed 10% of (i) total Purchase Payments less (ii) any prior withdrawals in that Contract Year.
In no event will the market value charge:
•  (for Ven 7, Ven 8 and Ven 9 contracts) be greater than the earnings attributable to the amount withdrawn or transferred from an Investment Account;
•  (for Ven 20, Ven 22 and Ven 24 contracts) be greater than the amount by which the earnings attributable to the amount withdrawn or transferred from an Investment Account exceed an annual rate of 3%;
•  together with any withdrawal charges for an Investment Account be greater than 10% of the amount transferred or withdrawn; or
•  reduce the amount payable on withdrawal or transfer below the amount required under the non-forfeiture laws of the state with jurisdiction over the Contract.
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The cumulative effect of the market value and withdrawal charges could result in a Contract Owner receiving total withdrawal proceeds of less than the Contract Owner’s Purchase Payments.
Withdrawals. You may make total and partial withdrawals of amounts held in a Fixed Investment Option at any time during the Accumulation Period. Withdrawals from a Fixed Investment Option will be made in the same manner and be subject to the same limitations as set forth under “Withdrawals” above.
We reserve the right to defer payment of amounts withdrawn from a Fixed Investment Option for up to six months from the date we receive the written withdrawal request. If a withdrawal is deferred for more than 30 days pursuant to this right, we will pay interest on the amount deferred at a rate not less than 3% per year (or a higher rate if required by applicable law).
If you do not specify the Investment Options from which a withdrawal is to be taken, the withdrawal will be taken from the Variable Investment Options until exhausted and then from the Fixed Investment Options. Such withdrawals will be made from the Investment Options beginning with the shortest guarantee period. Within such a sequence, where there are multiple Investment Accounts within a Fixed Investment Option, withdrawals will be made on a first-in-first-out basis. For this purpose, the DCA Fixed Investment Option is considered to have a shorter guarantee period than the one-year Fixed Investment Option.
The market value charge described above may apply to withdrawals from any Investment Option except for a one-year Fixed Investment Option. If a market value charge applies to a withdrawal from a Fixed Investment Option, it will be calculated with respect to the full amount in the Investment Option and deducted from the amount payable in the case of a total withdrawal. In the case of a partial withdrawal, the market value charge will be calculated on the amount requested and deducted, if applicable, from the remaining Investment Account value.
Withdrawals from the Contract may be subject to income tax and a 10% penalty tax. Withdrawals are permitted from Contracts issued in connection with Section 403(b) Plans only under limited circumstances. See “VII. Federal Tax Matters.”
Loans. We offer a loan privilege only to Owners of Contracts issued prior to November 12, 2007, in connection with Section 403(b) Plans that are not subject to Title I of ERISA. If you own such a Contract, you may borrow from us, using your Contract as the only security for the loan, in the same manner and subject to the same limitations as described under “VII. Federal Tax Matters – Qualified Contracts – Loans.” The market value charge described above may apply to amounts transferred from the Fixed Investment Accounts to the Loan Account in connection with such loans and, if applicable, will be deducted from the amount so transferred. The loan privilege is not available if you elected any optional guaranteed minimum withdrawal benefit Rider.
Charges. No asset based charges are deducted from Fixed Investment Options.
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VI.  Charges and Deductions
We assess charges and deductions under the Contracts against Purchase Payments, Contract Values, or withdrawal or annuity payments. Currently, there are no deductions made from Purchase Payments. In addition, there are deductions from and expenses paid out of the assets of the Portfolios that are described in the Portfolio prospectuses. For information on the optional benefit fees, please see the Fee Tables and the following Appendices: “Optional Enhanced Death Benefits,” “Optional Guaranteed Minimum Withdrawal Benefits” and/or “Optional Guaranteed Minimum Income Benefits.”
We may charge a separate fee for certain requested services (e.g., electronic fund transfers, providing replacement contracts, etc.).
Withdrawal Charges
If you make a withdrawal from your Contract during the Accumulation Period, we may assess a withdrawal charge. We base the withdrawal charge on the length of time a Purchase Payment has been in your Contract, and the amount of the withdrawal we attribute to unliquidated Purchase Payments.
Amounts to Which Withdrawal Charges Do Not Apply. We do not assess a withdrawal charge with respect to: (i) earnings accumulated in the Contract; (ii) Payment Enhancements (where applicable) and any earnings attributable to Payment Enhancements; (iii) certain other “free Withdrawal Amounts,” described below; (iv) distributions required to satisfy federal income tax minimum distribution requirements attributable to this Contract; or (v) Purchase Payments that are no longer subject to a withdrawal charge as described in the table below. A market value charge may apply to these transactions (see “V. Description of the Contract – Market Value Charge”).
We do not impose a withdrawal charge on amounts allocated to a “free Withdrawal Amount.” In any Contract Year, (except for Ven 1 and Ven 3 Contracts) the free Withdrawal Amount for that year is the greater of:
•  10% of total Purchase Payments (less all prior withdrawals in that Contract Year); and
•  the accumulated earnings of the Contract (i.e., the excess of the Contract Value on the date of withdrawal over unliquidated Purchase Payments).
See below for a description of the Ven 1 and Ven 3 free Withdrawal Amounts.
Amounts to Which Withdrawal Charges Do Apply. We first allocate a withdrawal to any free Withdrawal Amount and second to “unliquidated Purchase Payments” (i.e., the amount of all Purchase Payments in the Contract net of any withdrawals of Purchase Payments in excess of the free Withdrawal Amount that have been taken to date).
Withdrawals of up to the free Withdrawal Amount may be withdrawn without the imposition of a withdrawal charge. If the amount of a withdrawal exceeds the free Withdrawal Amount, the excess will be allocated to Purchase Payments which will be “liquidated” on a first-in first-out basis. On any withdrawal request, we will liquidate Purchase Payments equal to the amount of the withdrawal request which exceeds the free Withdrawal Amount in the order the Purchase Payments were made: the oldest unliquidated Purchase Payment first, the next Purchase Payment second, etc., until all Purchase Payments have been liquidated.
Upon a full surrender of a Contract, we will liquidate the excess of all unliquidated Purchase Payments over the free Withdrawal Amount for purposes of calculating the withdrawal charge.
How We Determine the Withdrawal Charge. We deduct from the amount paid to the Contract Owner as a result of the withdrawal, any applicable withdrawal charge, Contract and Rider fees, and any taxes. In the case of a withdrawal, the amount requested from an Investment Account may not exceed the value of that Investment Account less any applicable fees and charges.
There is generally no withdrawal charge on distributions made as a result of the death of the Contract Owner or, if applicable, the Annuitant, and we impose no withdrawal charges on the Annuity Commencement Date if the Contract Owner annuitizes as provided in the Contract.
Withdrawal charges help to compensate us for the cost of selling the Contracts. The amount of the charges in any Contract Year does not specifically correspond to sale expenses for that year. We expect to recover our total sales expenses over the life of the Contracts. To the extent that the withdrawal charges do not cover total sales expenses, the sales expenses may be recovered from other sources, including gains from the asset-based risk charge and other gains with respect to the Contracts,
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or from general assets. Similarly, administrative expenses not fully recovered by the administration fees may also be recovered from such other sources.
For examples of calculation of the withdrawal charge, see Appendix A: “Examples of Calculation of Withdrawal Charge.” Withdrawals from the Fixed Investment Options may be subject to a market value charge in addition to the withdrawal charge.
Ven 1 Withdrawal Charge. The withdrawal charge (may also be referred to as “surrender charge”) assessed under the Ven 1 Contract is 5% of the lesser of (1) the amount surrendered or (2) the total of all Purchase Payments made within the sixty months immediately preceding the date of surrender. The charge is deducted from the Contract Value remaining after the Contract Owner is paid the amount requested, except in the case of a complete surrender when it is deducted from the amount otherwise payable. After the first Contract Year, no withdrawal charge will be made on that part of the first surrender in any Contract Year which does not exceed 10% of the Contract Value computed as of the date of such surrender. The right to surrender up to 10% of the Contract Value free of any withdrawal charge does not apply to Contracts issued in connection with Section 403(b) Plans. There is no withdrawal charge on distributions made as a result of the death of the Annuitant or Contract Owner. Under no circumstances will the total of all withdrawal charges exceed 5% of total Purchase Payments. The amount of the withdrawal charge is calculated by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage as shown in the Fee Table.
Ven 3 Withdrawal Charge. The withdrawal charge assessed under the Ven 3 Contract is 5%. The free Withdrawal Amount in any Contract Year is the greater of: (1) 10% of the Contract Value at the beginning of the Contract Year, or (2) 10% of the total Purchase Payments made in the current Contract Year and the preceding 4 Contract Years plus the amount of all unliquidated Purchase Payments made 5 or more Contract Years prior to the current Contract Year. Therefore, no withdrawal charge will apply to any Purchase Payment that has been in the Contract for at least 5 years. After all Purchase Payments have been liquidated, any accumulated earnings (i.e., the excess of the Contract Value on the date of the withdrawal over the unliquidated Purchase Payments) may be withdrawn free of charge. Under no circumstances will the total of all withdrawal charges exceed 5% of total Purchase Payments. The amount of the withdrawal charge is calculated by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage as shown in the Fee Table.
Ven 7, Ven 8 and Ven 9 Withdrawal Charge. In no event will the total withdrawal charges exceed 6% of the total Purchase Payments. The amount of the withdrawal charge is calculated by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage as shown in the Fee Table.
Ven 20, 22, 24 and Venture® 2006 Withdrawal Charge. We do not impose a withdrawal charge on amounts allocated to a free Withdrawal Amount, and in no event will the total withdrawal charges exceed 6% (8% if you elected the Payment Enhancement Rider in New York) of the total Purchase Payments. Upon a full surrender of a Venture® Contract issued on and after April 1, 2003, John Hancock USA will liquidate the excess of all unliquidated Purchase Payments over the free Withdrawal Amount for purposes of calculating the withdrawal charge. Upon full surrender of a John Hancock USA Contract issued before April 1, 2003, and for all John Hancock New York Contracts, we will liquidate the excess of the Contract Value over the free Withdrawal Amount, if lower.
Each Purchase Payment or portion thereof liquidated in connection with a withdrawal request is subject to a withdrawal charge based on the length of time the Purchase Payment has been in the Contract. We calculate the amount of the withdrawal charge by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage shown below. The total withdrawal charge will be the sum of the withdrawal charges for the Purchase Payments being liquidated.
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John Hancock USA Contracts – Withdrawal Charges
(as percentage of Purchase Payments*)
  Ven 20
Ven 22
Venture® 2006 		Ven 7
Ven 8 		Ven 1
Ven 3
First Year 6% 6% 5%
Second Year 6% 6% 5%
Third Year 5% 5% 5%
Fourth Year 5% 4% 5%
Fifth Year 4% 3% 5%
Sixth Year 3% 2% 0%
Seventh Year 2% 0% 0%
Thereafter 0% 0% 0%
John Hancock New York Contracts – Withdrawal Charges
(as percentage of Purchase Payments*)
  Ven 24
Venture® 2006
(With Payment
Enhancement) 		Ven 24
Venture® 2006
(Without Payment
Enhancement) 		Ven 9
First Year 8% 6% 6%
Second Year 8% 6% 6%
Third Year 7% 5% 5%
Fourth Year 7% 5% 4%
Fifth Year 5% 4% 3%
Sixth Year 4% 3% 2%
Seventh Year 3% 2% 0%
Eighth Year 1% 0% 0%
Thereafter 0% 0% 0%
Waiver of Applicable Withdrawal Charge – Confinement to Eligible Nursing Home
(John Hancock USA Contracts only; not available in MA and NY)
For Contracts issued on or after May 1, 2002 (in states where approved), any applicable withdrawal charge will be waived on a total withdrawal prior to the Maturity Date if all of the following apply:
•  the Owner has been confined to an “Eligible Nursing Home” for at least 180 days (the waiver does not apply to the confinement of any Annuitant unless the Owner is a non-natural person);
•  the confinement began at least one year after the Contract Date;
•  confinement was prescribed by a “Physician”;
•  both the Owner and the Annuitant are alive as of the date we pay the proceeds of such total withdrawal; and
•  the request for a total withdrawal and “Due Proof of Confinement” are received by us, in Good Order, no later than 90 days after discharge.
An “Eligible Nursing Home” is a licensed “Long Term Care Facility” or “Hospital” providing medically necessary inpatient care that is prescribed in writing by a licensed “Physician” and is based on physical limitations which requires daily living in an institutional setting. A “Long Term Care Facility” is a facility which: (a) is located in the United States or its territories; (b) is licensed by the jurisdiction in which it is located; (c) provides custodial care under the supervision of a registered nurse (R.N.); and (d) can accommodate three or more persons. A “Hospital” is a facility which: (a) is licensed as a Hospital by the jurisdiction in which it is located; (b) is supervised by a staff of licensed “Physicians”; (c) provides nursing services 24 hours a day by, or under the supervision of, a registered nurse (R.N.); (d) operates primarily for the care and treatment of sick or injured persons as inpatients for a charge; and has access to medical, diagnostic and major surgical facilities.
A “Physician” is a person other than you, the Annuitants(s) or a member of your or the Annuitant’s families who is a licensed medical doctor (M.D.) or a licensed doctor of osteopathy (D.O.), practicing within the scope of that license.
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“Due Proof of Confinement” is a letter signed by a Physician containing: (a) the date the Owner was confined, (b) the name and location of the Eligible Nursing Home, (c) a statement that the confinement was medically necessary in the judgment of the Physician, and (d) if applicable, the date the Owner was released from the Eligible Nursing Home.
The waiver described above is only applicable for total withdrawals and does not apply to partial withdrawals. The waiver is not available in all states and was not available for Contracts issued prior to May 1, 2002. Certain terms may vary depending on the state of issue as noted in your Contract. Withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”). Please consult with your own qualified tax professional before requesting the waiver.
There are or may be situations other than those described above or elsewhere in the Prospectus (see, e.g., “Reduction or Elimination of Charges and Deductions,” below) that merit waiver of withdrawal charges, which we may consider on a case-by-case basis.
Annual Contract Fee
We deduct each year an annual Contract fee of $30 as partial compensation for the cost of providing all administrative services attributable to the Contracts and the operations of the Separate Account and the Company in connection with the Contracts. However, if prior to the Maturity Date the Contract Value is equal to or greater than $99,000 at the time of the fee’s assessment, the fee will be waived. (There is no provision for waiver under Ven 1, Ven 3, Ven 7, Ven 8 and Ven 9 Contracts.) We deduct this administration fee on the Contract Anniversary during the Accumulation Period. It is withdrawn from each Investment Option in the same proportion that the value of such Investment Option bears to the Contract Value. If you withdraw the entire Contract Value on a day other than the Contract Anniversary, we will deduct the $30 Contract fee from the amount paid. During the Pay-out Period, we deduct the fee on a pro-rata basis from each annuity payment.
Asset-Based Charges
We deduct asset-based charges daily to compensate us primarily for our administrative and distribution expenses, and for the mortality and expense risks we assume under the Contracts. We do not assess asset-based charges against Fixed Investment Options.
Administration Fee
We allocate a portion of the asset-based charges, as shown in “III. Fee Tables,” to help cover our administrative expenses. We deduct from each of the Subaccounts a daily charge, at an annual effective rate of 0.15% of the value of each corresponding Variable Investment Option, to reimburse us for administrative expenses. The charge will be reflected in the Contract Value as a proportionate reduction in the value of each Variable Investment Option. Even though administrative expenses may increase, we guarantee that it will not increase the administration fee. (We do not separately identify an administration fee for Ven 1 Contracts.)
Mortality and Expense Risks Fee
The mortality risk we assume is the risk that Annuitants may live for a longer period of time than we estimate. We assume this mortality risk by virtue of annuity payment rates incorporated into the Contract which cannot be changed. This assures each Annuitant that his or her longevity will not have an adverse effect on the amount of annuity payments. We also assume mortality risks in connection with our guarantee that, if the Contract Owner dies during the Accumulation Period, we will pay a death benefit (see “V. Description of the Contract – Death Benefit During Accumulation Period”). The expense risk we assume is the risk that any of the following, where applicable, may be insufficient to cover actual expenses: the annual fee, administration charges, distribution charge, or withdrawal charge.
To compensate us for assuming these risks, we deduct from each of the Subaccounts a daily charge at the annual effective rate of 1.25% of the value of the Variable Investment Options for all Contracts except Ven 1 and Venture® 2006 Contracts, 1.30% for Ven 1 Contracts, and 1.00% for the first 7 Contract Years (8 Contract Years if you elect the Payment Enhancement Rider) and 0.85% thereafter for Venture® 2006 Contracts. The rate of the mortality and expense risks charge cannot be increased. The charge is assessed on all active Contracts, including Contracts continued by a Spousal Beneficiary upon the death of the Contract Owner or continued under any Annuity Option payable on a variable basis. If the asset-based charges are insufficient to cover the actual cost of the mortality and expense risks assumed, we bear the loss. Conversely, if the charges prove more than sufficient, the excess will be profit to us and will be available for any proper corporate purpose including, among other
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things, payment of distribution expenses. In cases where no death proceeds are payable (e.g., for Contracts continued by a non-Spousal Beneficiary upon the death of the Owner), or under the Period Certain Only Annuity Option, if you elect benefits payable on a variable basis, we continue to assess the Contractual mortality and expense risks charge, although we bear only the expense risk and not any mortality risk.
Reduction or Elimination of Charges and Deductions
(Not available in New York)
We may have reduced or eliminated the amount of the charges and deductions for certain Contracts where permitted by state law. These Contracts would involve sales to individuals or to a group of individuals in a manner that resulted in savings of sales or maintenance expenses or that we expected to result in reduction of other risks that are normally associated with the Contracts. We determined entitlement to such a reduction in the charges or deductions in the following manner:
•  We considered the size and type of group to which sales are made. Generally, per Contract sales expenses for a larger group are smaller than for a smaller group because of the ability to implement large numbers of Contracts with fewer sales contacts;
•  We considered the total amount of Purchase Payments to be received. Per-dollar sales expenses are likely to be less on larger Purchase Payments than on smaller ones;
•  We considered the nature of the group or class for which the Contracts were purchased including the expected persistency, mortality or morbidity risks associated with the group or class of Contracts;
•  We considered any prior or existing relationship with us. Per-Contract sales expenses were likely to be less when there was a prior or existing relationship because of the likelihood of implementing the Contract with fewer sales contacts;
•  We considered the level of commissions paid to selling broker-dealers. Certain broker-dealers may have offered the Contract in connection with financial planning programs offered on a fee-for-service basis. In view of the financial planning fees, such broker-dealers may have elected to receive lower commissions for sales of the Contracts, thereby reducing our sales expenses; and
•  There may have been other circumstances that resulted in reduced expenses.
If after consideration of the foregoing factors, we determined that there would be a reduction in expenses, we provided a reduction in the charges or deductions. In the case of group contracts, we may have issued Contracts with a mortality and expense risks charge at rates less than those set out above, if we concluded that the mortality or expense risks of the groups involved were less than the risks determined for persons for whom the Contracts have been generally designed. In no event did we permit reduction or elimination of the charges or deductions where that reduction or elimination was unfairly discriminatory to any person. We reserve the right to modify, suspend or terminate any reductions or waivers of charges at any time.
We eliminated the withdrawal charge when a Contract was issued to officers, trustees, directors or employees (or a relative thereof) of ours, of any of our affiliates, or of the John Hancock Variable Insurance Trust.
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Premium Taxes
We make deductions for any applicable premium or similar taxes. Currently, certain jurisdictions assess a tax of up to 4% of each Purchase Payment.
In most cases, and subject to applicable law, we deduct a charge in the amount of the tax from the total value of the Contract only at the time of annuitization, death, surrender, or withdrawal. We reserve the right, however, to deduct the charge from each Purchase Payment at the time it is made. We compute the amount of the charge by multiplying the applicable premium tax percentage by the amount subject to tax under the applicable state law.
  Premium Tax Rate1
State or Territory Qualified Contracts Nonqualified Contracts
CA 0.50% 2.35%
GUAM 4.00% 4.00%
ME 2 0.00% 2.00%
NV 0.00% 3.50%
PR 1.00% 1.00%
SD 2 0.00% 1.25% 3
TX 4 0.04% 0.04%
WV 1.00% 1.00%
WY 0.00% 1.00%
1 Based on the state of residence at the time the tax is assessed.
2 We pay premium tax upon receipt of Purchase Payment.
3 0.08% on Purchase Payments in excess of $500,000.
4 Referred to as a “maintenance fee.”
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VII.  Federal Tax Matters
Introduction
The following discussion of the federal income tax treatment of the Contract is not exhaustive, does not purport to cover all situations, and is not intended as tax advice. The federal income tax treatment of a Contract is quite complex; please consult your own qualified tax professional with regard to the application of the law to your circumstances. This discussion is based on the Code, Treasury Department regulations, and Internal Revenue Service (“IRS”) rulings and interpretations existing on the date of this Prospectus. These authorities, however, are subject to change by Congress, the Treasury Department and judicial decisions.
This discussion does not address state or local tax consequences associated with a Contract. Further, this discussion also does not address the potential tax and withholding rules that might apply to a Contract held by, or distributions paid to, any foreign person, including any foreign financial institution, other entity or individual. Please consult with your tax professional if there is a possibility that a Contract might be held by, or payable to, a foreign person. In addition, we make no guarantee regarding any tax treatment – federal, state, or local – of any Contract or of any transaction involving a Contract.
Our Tax Status
We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of a Separate Account in our taxable income and take deductions for investment income credited to our “policyholder reserves.” We are also required to capitalize and amortize certain costs instead of deducting those costs when they are incurred. We do not currently charge a Separate Account for any resulting income tax costs. We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the Portfolios. These benefits can be material. We do not pass these benefits through to a Separate Account, principally because: (i) the deductions and credits are allowed to the Company and not the Contract Owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on Separate Account assets that is passed through to Contract Owners.
The Contracts permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the Contracts or a Separate Account. Currently, we do not anticipate making a charge for such taxes. If the level of the current taxes increases, however, or is expected to increase in the future, we reserve the right to make a charge in the future. (Please note that this discussion applies to federal income tax but not to any state and local taxes.)
Special Considerations for Optional Benefits
At present, the IRS has not provided guidance as to the tax treatment of charges for optional benefits to an annuity contract. The IRS might take the position that each charge associated with these optional benefits is deemed a withdrawal from the contract subject to current income tax to the extent of any gains and, if applicable, a 10% penalty tax for premature withdrawals. We do not currently report charges for optional benefits as withdrawals, but we may do so in the future if we believe that the IRS would require us to report them as such.
If the Contract you purchased is not intended for use with a tax-qualified retirement plan or as an IRA (a “Nonqualified Contract”):
•  Any withdrawal you take ordinarily is taxable as ordinary income to the extent of any gain in the Contract at the time of the withdrawal.
•  Under current IRS guidance, we expect to determine gain on a withdrawal, including withdrawals during the “Settlement Phase” using the Contract Value. It is possible, however, that the IRS may take the position that the value of amounts guaranteed to be available in the future should also be taken into account in computing the taxable portion of a withdrawal. In that event, you may be subject to a higher amount of tax on a withdrawal.
•  Any annuity payments that you receive under an Annuity Option will be taxed in the manner described in “Taxation of Annuity Payments” below.
If the Contract you purchased is intended for use with a tax-qualified retirement plan or as an IRA (a “Qualified Contract”):
•  Please see “Roth IRAs – Conversions and Rollovers to Roth IRAs” below for additional information on the tax impact of optional benefit Riders on a conversion to a Roth IRA.
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•  The amount of any required minimum distributions may be increased under federal tax rules if your Contract has an optional death benefit or other optional benefit Rider. See “General Information Regarding Qualified Contracts” below.
You should consult with your own qualified tax professional for information on any optional benefit Rider.
General Information Regarding Nonqualified Contracts
(Contracts Not Purchased to Fund an IRA or Other Qualified Plan)
Tax Deferral During Accumulation Period
Except where the Owner is not an individual, we expect our Contracts to be considered annuity contracts under section 72 of the Code. This means that, ordinarily, federal income tax on any gains in your Contract will be deferred until we actually make a distribution to you or you assign or pledge an interest in your Contract.
However, a Contract held by an Owner other than a natural person (for example, a corporation, partnership, limited liability company, trust, or other such entity) does not generally qualify as an annuity contract for tax purposes. Any increase in value therefore would constitute ordinary taxable income to such an Owner in the year earned. Notwithstanding this general rule, a Contract will ordinarily be treated as held by a natural person if the nominal Owner is a trust or other entity which holds the Contract as an agent for a natural person. This exception does not apply in the case of any employer which is the nominal owner of an annuity contract under a nonqualified deferred compensation arrangement for its employees.
In addition to the foregoing, if the Contract’s Maturity Date occurs, or is scheduled to occur, at a time when the Annuitant is at an advanced age, such as over age 95, it is possible that the Owner will be taxed currently on the annual increase in the Contract Value.
The remainder of this discussion assumes that the Contract will constitute an annuity for federal tax purposes.
Aggregation of Contracts
In certain circumstances, the IRS may determine the portion of a withdrawal from a contract that is includible in income by combining some or all of the annuity contracts owned by an individual which are not issued in connection with a Qualified Plan.
For example, if you purchase two or more deferred annuity contracts from the same insurance company (or its affiliates) during any calendar year, all such contracts will be treated as one contract for purposes of determining whether any payment not received as an annuity (including withdrawals prior to the Maturity Date) is includible in income. Thus, if during a calendar year you bought two or more of the Contracts offered by this Prospectus (which might be done, for example, in order to purchase different guarantees and/or benefits under different contracts), all of such Contracts would be treated as one Contract in determining whether withdrawals from any of such Contracts are includible in income. The IRS may also require aggregation in other circumstances. Please consult with your own qualified tax professional if you own or intend to purchase more than one annuity contract.
The effects of such aggregation are not always clear and depend on the circumstances. However, aggregation could affect the amount of a withdrawal that is taxable and the amount that might be subject to the 10% penalty tax described below.
Exchanges of Annuity Contracts
We may have issued the Contract in exchange for all or part of another annuity contract that you owned. Such an exchange would be tax free if certain requirements were satisfied. If you satisfied these requirements, your investment in the Contract immediately after the exchange is generally the same as that of the annuity contract you exchanged, increased by any Additional Purchase Payment you made as part of the exchange. Your investment in the Contract may be more, less or the same as the Contract Value immediately after the exchange. If your Contract Value exceeds your investment in the Contract, that excess represents gain in the Contract. You have to include that gain in your gross income if you subsequently take a withdrawal or distribution from the Contract (e.g., as a partial surrender, full surrender, annuity payment, or death benefit), or are deemed to receive a distribution (e.g., through a collateral assignment) from the Contract.
In Revenue Procedure 2011-38, the IRS amended the tax rules applicable to the partial exchange of an annuity contract for another annuity contract, effective for partial exchanges that occur after October 23, 2011. If you exchange part of an existing Contract after that date, and within 180 days of the exchange you receive a payment (e.g., you make a withdrawal) from either
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contract, all or a portion of the amount received could be includible in your income and also subject to a 10% penalty tax. The IRS has announced that it will apply general tax principles to determine the consequences of receiving such a payment. For example, the IRS could treat the payment as taxable only to the extent of the gain in the particular contract from which the payment was received. Alternatively, the IRS could determine that the payment was an integrated part of the exchange. In that case, the payment would be taxable to the extent of all the gain accumulated in the original Contract at the time of the partial exchange, regardless of whether the payment came from the existing Contract or from the contract received in the exchange. Application of general tax principles is dependent on the facts and circumstances of each case. However, amounts received as an annuity during the 180-day period are not subject to the new rules, provided that the annuity payments will be made for a period of at least 10 years or for a life or joint lives.
EXAMPLE: An annuity Contract had $100,000 of Contract Value, of which $56,000 was gain and $44,000 was the Owner’s investment in the Contract, or “cost basis.” After October 23, 2011, the Owner did a partial exchange of 25% of the Contract Value for a new annuity contract. Of the $25,000 transferred to the new contract, $14,000 represents gain and $11,000 represents cost basis transferred from the original Contract. Two months after the partial exchange, the Owner takes a withdrawal from the new contract in the amount of $17,000. If the IRS treats the withdrawal as a distribution from the new contract, only $14,000 will be taxable as a distribution of income ($25,000 of contract value – $11,000 of cost basis in the new contract). If instead the IRS determines that the withdrawal is part of the exchange, the entire $17,000 is taxable as income because there was $56,000 of gain in the original Contract at the time of the exchange.
Please consult with your own qualified tax professional in connection with an exchange of all or part of a Contract for another annuity contract, especially if you make a withdrawal from either contract after the exchange. The date a partial exchange occurs will be a factor in determining the tax treatment of subsequent withdrawals and other distributions from either contract.
Loss of Interest Deduction Where Contracts are Held by or for the Benefit of Certain Non-Natural Persons
In the case of Contracts issued after June 8, 1997 to a non-natural taxpayer (such as a corporation or a trust), or held for the benefit of such an entity, a portion of otherwise deductible interest may not be deductible by the entity, regardless of whether the interest relates to debt used to purchase or carry the Contract. However, this interest deduction disallowance does not affect Contracts where the income on such Contracts is treated as ordinary income that is received or accrued by the Owner during the taxable year. Entities that have purchased the Contract, or entities that will be Beneficiaries under the Contract, should consult a qualified tax professional.
Taxation of Annuity Payments
When we make payments under a Nonqualified Contract in the form of an annuity, normally a portion of each annuity payment is taxable as ordinary income. The taxable portion of an annuity payment is equal to the excess of the payment over the exclusion amount.
In the case of Variable Annuity payments, the exclusion amount is the investment in the Contract when payments begin to be made divided by the number of payments expected to be made (taking into account the Annuitant’s life expectancy and the form of annuity benefit selected). In the case of Fixed Annuity payments, the exclusion amount is based on the investment in the Contract and the total expected value of Fixed Annuity payments for the term of the Contract (determined under Treasury Department regulations). In general, your investment in the Contract equals the aggregate amount of premium payments you have made over the life of the Contract, reduced by any amounts previously distributed from the Contract that were not subject to income-tax. A simplified method of determining the taxable portion of annuity payments applies to Contracts issued in connection with certain Qualified Plans other than IRAs.
Once you have recovered your total investment in the Contract tax-free, further annuity payments will be fully taxable. If annuity payments cease because the Annuitant dies before all of the investment in the Contract is recovered, the unrecovered amount generally will be allowed as a deduction on the Annuitant’s last tax return or, if there is a Beneficiary entitled to receive further payments, will be distributed to the Beneficiary as described more fully below under “Taxation of Death Benefit Proceeds.”
Section 72(a)(2) of the Code permits partial annuitization of an annuity contract and specifies that the cost basis, or investment in the contract, be allocated pro rata between the portion of the contract being annuitized and the portion of the contract remaining deferred. We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. Accordingly, any portion of your Contract that you withdraw to be annuitized will be
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reported to the IRS as a taxable distribution unless you transfer it into another contract in a partial exchange conforming to the rules of section 1035 of the Code and Rev. Proc. 2011-38. Any such withdrawal, whether carried out as a tax-deferred partial exchange or as a taxable withdrawal, will be subject to withdrawal charges.
Surrenders, Withdrawals, Transfers and Death Benefits
When we make a single sum payment consisting of the entire value of your Contract, you have ordinary taxable income to the extent the payment exceeds your investment in the Contract (discussed above). Such a single sum payment can occur, for example, if you surrender your Contract before the Maturity Date or if you or your Beneficiary do not select an extended payment option for a death benefit payment.
When you take a withdrawal from a Contract before the Maturity Date (or Annuity Commencement Date, if earlier), including a payment under a systematic withdrawal plan or guaranteed minimum withdrawal benefit, all or part of the payment may constitute taxable ordinary income to you. If, on the date of withdrawal, the total value of your Contract exceeds the investment in the Contract, the excess will be considered gain and the withdrawal will be taxable as ordinary income up to the amount of such gain. If a withdrawal exceeds the gain in your Contract, the excess amount is a tax-free return of your investment in the Contract. If you have recovered your entire investment in the Contract, any additional withdrawals based upon a Rider guarantee will be subject to income tax. If you assign or pledge any part of your Contract Value, the value so pledged or assigned is taxed the same as an actual withdrawal.
For purposes of determining the amount of taxable income resulting from a single sum payment or a withdrawal, all nonqualified annuity contracts issued by us or our affiliates to the Owner within the same calendar year will be treated as if they were a single contract. Taxable withdrawals may also be subject to a penalty tax for premature withdrawals as explained below.
When an individual Owner transfers ownership of a Contract issued after April 22, 1987 without receiving full and adequate consideration, the transfer is taxed like a surrender. The transferor must include in gross income the amount by which the cash surrender value exceeds any investment in the Contract. The amount included in income may also be subject to a penalty tax for premature withdrawals as explained below. The new Owner's investment in the Contract is increased by the amount included in the transferor's gross income as a result of the transfer. These tax issues may apply, for example, in situations where the Owner and Annuitant are not the same person and are not married to each other. A qualified tax professional should be consulted in those situations. However, these tax rules do not apply to a transfer between Spouses or a transfer to a former Spouse incident to a divorce under Code section 1041.
Taxation of Death Benefit Proceeds
All or part of any death benefit proceeds may constitute a taxable payout of earnings. A death benefit payment generally results in taxable ordinary income to the extent of gain in the Contract.
Amounts may be distributed from a Contract because of the death of an Owner or the Annuitant. During the Accumulation Period, death benefit proceeds are includible in income as follows:
•  if distributed in a single sum payment under our current administrative procedures, they are taxed in the same manner as a full withdrawal, as described above; or
•  if distributed under an Annuity Option, they are taxed in the same manner as annuity payments, as described above; or
•  if distributed as a series of withdrawals over the Beneficiary’s life expectancy, they are taxable to the extent there is gain in the Contract.
After a Contract matures and annuity payments begin, if the Contract guarantees payments for a stated period and the Annuitant dies before the end of that period, payments made to the Beneficiary for the remainder of that period are includible in the Beneficiary’s income as follows:
•  if received in a single sum, they are includible in income to the extent that they exceed the unrecovered investment in the Contract at that time; or
•  if distributed in accordance with an existing Annuity Option other than a Period Certain Only Annuity Option, they are fully excludible from income until the remaining investment in the Contract has been recovered, and all annuity benefit payments thereafter are fully includible in income; or
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•  if distributed in accordance with an existing Period Certain Only Annuity Option, the payments are taxed the same as the annuity payments made before death. A portion of each annuity payment is includible in income and the remainder is excluded from income as a return of the investment in the Contract.
Penalty Tax on Premature Distributions
There is a 10% penalty tax on the taxable portion of any payment from a Nonqualified Contract. Exceptions to this penalty tax include distributions:
•  received on or after the date on which the Contract Owner reaches age 59½;
•  attributable to the Contract Owner becoming disabled (as defined in the tax law);
•  made to a Beneficiary on or after the death of the Contract Owner or, if the Contract Owner is not an individual, on or after the death of the primary Annuitant;
•  made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Contract Owner or for the joint lives (or joint life expectancies) of the Contract Owner and a designated Beneficiary;* or
•  made with respect to certain annuities issued in connection with structured settlement agreements.
* You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments (Life Expectancy Distribution) and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59½ and the passage of five years after the date of the first payment.
Diversification Requirements
Your Contract will not qualify for the tax benefits of an annuity contract unless the Separate Account follows certain rules requiring diversification of investments underlying the Contract. In addition, the rules require that the Contract Owner not have “investment control” over the underlying assets.
In certain circumstances, the Owner of a variable annuity contract may be considered the Owner, for federal income tax purposes, of the assets of the separate account used to support the contract. In those circumstances, income and gains from the separate account assets would be includible in the Contract Owner's gross income. The IRS has stated in published rulings that a variable Contract Owner will be considered the owner of separate account assets if the Contract Owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. A Treasury Decision issued in 1986 stated that guidance would be issued in the form of regulations or rulings on the “extent to which Policyholders may direct their investments to particular subaccounts of a separate account without being treated as owners of the underlying assets.” As of the date of this Prospectus, no comprehensive guidance on this point has been issued. In Rev. Rul. 2003-91, however, the IRS ruled that a contract holder would not be treated as the owner of assets underlying a variable annuity contract despite the owner’s ability to allocate funds among as many as twenty subaccounts.
The ownership rights under your Contract are similar to, but different in certain respects from, those described in IRS rulings in which the IRS determined that Contract Owners were not owners of separate account assets. Since you have greater flexibility in allocating premiums and Contract Value than was the case in those rulings, it is possible that you would be treated as the owner of your Contract’s proportionate share of the assets of the Separate Account.
We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that an underlying Portfolio will be able to operate as currently described in its prospectus, or that a Portfolio will not have to change any of its investment objectives and policies. We have reserved the right to modify your Contract if we believe doing so will prevent you from being considered the owner of your Contract’s proportionate share of the assets of the Separate Account, but we are under no obligation to do so.
Medicare Tax on Unearned Income
A Medicare tax applies to certain unearned income at a maximum rate of 3.8% for taxable years beginning after December 31, 2012. Also referred to as the Net Investment Income tax, the tax is imposed on an amount equal to the lesser of (a) “net investment income” or (b) the excess of the taxpayer’s modified adjusted gross income over a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 for everyone else). “Net investment income,” for these purposes, includes the excess (if any) of gross income from annuities, interest, dividends, royalties and rents, and certain net gain, over allowable deductions, as such terms are defined in the Code or as may be
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defined in future Treasury Regulations or IRS guidance. The term “net investment income” does not include any distribution from a plan or arrangement described in Code sections 401(a), 403(a), 403(b), 408 (i.e., IRAs), 408A (i.e., Roth IRAs) or 457(b).
Please consult your own qualified tax professional for further information about the impact of the additional Medicare Tax on your individual circumstances.
Puerto Rico Nonqualified Contracts
Distributions from Puerto Rico annuity contracts issued by us are subject to federal income taxation, withholding and reporting requirements as well as Puerto Rico tax laws. Both jurisdictions impose a tax on distributions. Under federal requirements, distributions are deemed to be income first. Under the Puerto Rico tax laws, however, distributions from a Contract not purchased to fund a Qualified Plan (“Nonqualified Contract”) are generally treated as a nontaxable return of principal until the principal is fully recovered. Thereafter, all distributions under a Nonqualified Contact are fully taxable. Puerto Rico does not currently impose an early withdrawal penalty tax on premature distributions from a Nonqualified Contract. The Code, however, does impose such a penalty and bases it on the amount that is taxable under federal rules.
Annuitized distributions under a Nonqualified Contract are treated as part taxable income and part non-taxable return of principal. With annuitization, the annual amount excluded from gross income under Puerto Rico tax law is equal to the amount of the distribution in excess of 3% of the total Purchase Payments paid, until an amount equal to the total Purchase Payments paid has been excluded. Thereafter, the entire distribution from a Nonqualified Contract is included in gross income. For federal income tax purposes, however, the portion of each annuity payment that is subject to tax is computed on the basis of investment in the Contract and the expected payout. Generally Puerto Rico does not require income tax to be withheld from distributions of income from Nonqualified Contracts. Although Puerto Rico allows a credit against its income tax for taxes paid to the federal government, you may not be able to use the credit fully.
General Information Regarding Qualified Contracts
(Contracts Purchased to Fund an IRA or Other Qualified Plan)
Numerous special tax rules apply to the participants in certain types of retirement plans that receive favorable treatment under the Code (“Qualified Plans”), and to the Contracts used in connection with these plans. We provide a brief description of types of Qualified Plans in this Prospectus and in the SAI, but make no attempt to provide more than general information in this Prospectus and the SAI about use of Contracts with the various types of Qualified Plans.
When we issued a Contract in connection with a Qualified Plan (“Qualified Contract”), we may have amended the Contract as necessary to conform to the requirements of the Code. We have no responsibility, however, for determining whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code, or whether a particular employee is eligible for inclusion under a plan. Your rights to any benefits under the plan may be subject to the terms and conditions of the plan itself, regardless of the terms and conditions of the Contracts.
Please consult your own qualified tax professional for specific information about the impact of tax rules and plan requirements on your particular facts and circumstances.
Additional Purchase Payments to Qualified Contracts
You may make Additional Purchase Payments to a Qualified Contract, subject to our requirements and limitations for Additional Purchase Payments (see “V. Description of the Contract – Purchase Payments” for information on our Additional Purchase Payment requirements and limitations):
•  as a transfer from a traditional IRA to a Contract issued as a traditional IRA;
•  as a direct or indirect rollover* from a retirement plan qualified under sections 401(a), 403(a) or 403(b) of the Code or a governmental deferred compensation plan described in section 457 of the Code to a Contract issued either as a traditional IRA or as a Roth IRA; or
•  by making annual contributions to the extent permitted under the Code.
* We use the term “direct rollovers” to refer to amounts that a Qualified Plan remits directly to us as an Additional Purchase Payment. We use the term “indirect rollovers” to refer to amounts that you may receive from a Qualified Plan, and then remit to us as an Additional
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  Purchase Payment. The Code permits an indirect rollover to be tax-deferred if it is contributed to an IRA within 60 days of receipt. Note that an individual can make only one indirect rollover from his IRA(s) during any 12-month period. The tax law does not limit the number of indirect rollovers from other Qualified Plans to an IRA.
Distribution Requirements
The Code imposes requirements on Qualified Plans to comply with minimum distribution requirements. We provide general information, below, on minimum distribution requirements for traditional IRAs, Roth IRAs and certain other Qualified Plans.
Traditional IRAs
Section 408 of the Internal Revenue Code (“Code”) permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (“IRA”) or traditional IRA (to distinguish it from the Roth IRA discussed below). Contracts issued as traditional IRAs are subject to limits on the amounts that may be contributed, the persons who may be eligible and the time when distributions may commence. Under the tax rules, the Owner and the Annuitant may not be different individuals. If a co-Annuitant is named, all distributions made while the Annuitant is alive must be made to the Annuitant. The Contract does not qualify for use in connection with an Education IRA under section 530 of the Code.
The Contract may be issued with a death benefit or certain benefits provided by an optional Rider. The presence of such benefits may increase the amount of any required minimum distributions for IRAs and other Contracts subject to the Required Minimum Distribution (“RMD”) rules.
Under our administrative rules beginning February 2009, we do not permit a Beneficiary of a Contract intended for use as a traditional IRA to purchase a new optional benefit Rider if the Beneficiary elected to maintain it as an inherited IRA or an inherited Roth IRA.
Contributions to a Traditional IRA
Eligible rollover distributions from certain types of qualified retirement plans may be rolled over on a tax-deferred basis into a traditional IRA by former participants in the plans. For these purposes, eligible rollover distributions include lump sum amounts payable from the plan upon termination of employment, termination of the plan, disability or retirement. Eligible rollover distributions do not include (i) required minimum distributions as described in section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments,” and (iii) if applicable, certain hardship withdrawals.
If you are the surviving Spouse and “designated beneficiary” (as defined in the tax law) of a participant in a tax-qualified retirement account, you may make a direct rollover contribution as an Additional Purchase Payment to a Contract issued as a traditional IRA to the extent permitted. See “V. Description of the Contract – Purchase Payments” for information on our Purchase Payment requirements.
Distributions from a Traditional IRA
In general, unless you rolled over non-deductible contributions from any other Qualified Plan or made non-deductible contributions to your Contract, all amounts paid out from a traditional IRA Contract (in the form of an annuity, a single sum, death benefits or partial withdrawal), are taxable as ordinary income to you or to your beneficiary for payments made after your death. You may incur an additional 10% penalty tax if you surrender the Contract or make a withdrawal before you reach age 59½, unless certain exceptions apply as specified in section 72(t) of the Code. If any part of your direct rollover from a tax-qualified retirement plan includes after-tax contributions to the plan, or if you have made any non-deductible contributions to a Contract issued as a traditional IRA, part of any withdrawal or surrender distribution, single sum, death proceeds or annuity payment from the Contract may be excluded from taxable income when received.
You may make tax-deferred direct transfers from a Contract held as a Traditional IRA to another Traditional IRA. If instead you take a withdrawal with the intent to roll the proceeds to another IRA as an indirect rollover, you should be aware of certain limitations under the tax law. You must complete any indirect rollover within 60 days of receiving the withdrawal. Moreover, during any 12- month period, you can make only one indirect rollover, with respect to all IRAs you own including Roth IRAs. Any additional indirect rollover attempted during the 12-month period will be treated as a distribution, subject to income tax and potentially the 10% penalty tax.
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A Beneficiary who is not your Spouse may make a direct transfer to an inherited IRA of the amount otherwise distributable to him or her under a Contract issued as a traditional IRA.
Required Minimum Distributions from a Traditional IRA
Note: Under the federal CARES Act, the obligation to take any required minimum distribution during 2020 is waived.
Treasury Department regulations prescribe required minimum distribution (“RMD”) rules governing the time at which distributions from a traditional IRA to the Owner and Beneficiary must commence and the form in which the distributions must be paid. These special rules may also require the length of any guarantee period to be limited. They also affect the restrictions that the Owner may impose on the timing and manner of payment of death benefits to a Beneficiary or the period of time over which a Beneficiary may extend payment of the death benefits under the Contract. In addition, the presence of the death benefit or a lifetime income benefit feature may affect the amount of the RMD that must be made under the Contract. Failure to comply with RMD requirements will result in the imposition of an excise tax, generally 50% of the amount by which the amount required to be distributed exceeds the actual distribution. In the case of IRAs (other than Roth IRAs), distributions of minimum amounts (as specified in the tax law) to the Owner must generally commence by April 1 of the calendar year following the calendar year in which the Owner turns age 70½, for those Contract Owners born before July 1, 1949. For Contract Owners born after June 30, 1949, distributions of minimum amounts must commence by April 1 of the calendar year following the calendar year in which the Owner turns age 72. The amount that must be distributed each year is computed on the basis of the Owner’s age, the value of the Contract (taking into account both the account balance and the actuarial present value of other benefits provided under the Contract), and the value of all other traditional IRAs owned by the taxpayer.
Distributions made from traditional IRAs (and Roth IRAs) after the Owner’s death must also comply with RMD requirements. Different rules governing the timing and the manner of payments apply, depending on whether the designated beneficiary is an individual and, if so, the Owner’s Spouse, or an individual other than the Owner’s Spouse. If you wish to impose restrictions on the timing and manner of payment of death benefits to your designated beneficiary or if your Beneficiary wishes to extend over a period of time the payment of the death benefits under your Contract, please consult your own qualified tax professional.
If you make a direct transfer of all the value from a traditional IRA to any other traditional IRA, the minimum distribution requirements (and taxes on the distributions) apply to amounts withdrawn from the other traditional IRA.
Penalty Tax on Premature Distributions from a Traditional IRA
A 10% penalty tax may be imposed on the taxable amount of any payment from a traditional IRA. The penalty tax does not apply to a payment:
•  received on or after the date on which the Contract Owner reaches age 59½;
•  received on or after the Contract Owner’s death or because of the Contract Owner’s disability (as defined in the tax law); or
•  made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Contract Owner or for the joint lives (or joint life expectancies) of the Contract Owner and designated beneficiary.*
* You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59½ and the passage of five years after the date of the first payment.
In addition, the penalty tax does not apply to certain distributions from IRAs that are used for first time home purchases or for higher education expenses, or to distributions made to certain eligible individuals called to active duty after September 11, 2001. Special conditions must be met to qualify for these three exceptions to the penalty tax. If you wish to take a distribution from a traditional IRA for these purposes, please consult with your own qualified tax professional.
Exceptions from the penalty tax also apply to certain distributions taken for qualified birth or adoption expenses, certain qualified disaster distributions, as well as certain coronavirus-related distributions made during calendar year 2020. The Code also provides for the opportunity to repay such distributions to an eligible retirement plan, including an IRA. Please consult with your own qualified tax professional to determine whether you qualify for any of these exceptions and what tax treatment will apply to the distribution and any repayment.
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If you roll over a Contract issued as a traditional IRA to a Roth IRA by surrendering the Contract and purchasing a Roth IRA, you may be subject to federal income taxes, including withholding taxes. Please read “Conversion or Rollover to a Roth IRA,” below, for more information.
Roth IRAs
Section 408A of the Code permits eligible individuals to contribute to a type of IRA known as a Roth IRA. Roth IRAs are generally subject to the same rules as traditional IRAs, but they differ in certain significant ways with respect to the taxation of contributions and distributions.
Contributions to a Roth IRA
Unlike a traditional IRA, contributions to a Roth IRA are not deductible. As with a traditional IRA, eligible rollover distributions from certain types of qualified retirement plans may be directly rolled over into a Roth IRA by former participants in the plan. For these purposes, eligible rollover distributions include lump sum amounts payable from the plan upon termination of employment, termination of the plan, disability or retirement. Eligible rollover distributions do not include: (i) required minimum distributions as described in section 401(a)(9) of the Code; (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments;” and (iii) if applicable, certain hardship withdrawals.
Federal income tax will apply to direct rollovers from “non-Roth” accounts in retirement plans described in sections 401(a), 403(a), 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code to Contracts issued as Roth IRAs. Please read “Rollover to a Roth IRA,” below, for more information. Under current rules, direct rollovers from “Roth” accounts in a 401(k) retirement plan to Contracts issued as Roth IRAs generally are not subject to federal income tax.
Distributions from a Roth IRA
Unlike a traditional IRA, distributions from Roth IRAs need not commence after the Owner turns age 70½ or 72. Distributions must, however, begin after the Owner’s death. Distributions after the Owner’s death must comply with the minimum distribution requirements described above for traditional IRAs. (Note: Under the federal CARES Act, the obligation to take any required minimum distribution during 2020 is waived.) Different rules governing the timing and the manner of payments apply, depending on whether the designated beneficiary is an individual and, if so, the Owner’s Spouse, or an individual other than the Owner’s Spouse.
If you wish to impose restrictions on the timing and the manner of payment of death proceeds to your designated beneficiary or if your Beneficiary wishes to extend payment of the Contract death proceeds over a period of time, please consult your own qualified tax professional. Under our administrative rules beginning February 2009, we do not permit a Beneficiary of a Contract intended for use as a Roth IRA to purchase a new optional benefit Rider if the Beneficiary elected to maintain it as a Roth IRA.
Qualified distributions from a Roth IRA are excluded from income. A qualified distribution for these purposes is a distribution that satisfies two requirements. First, the distribution must be made in a taxable year that is at least five years after the first taxable year for which a contribution to any Roth IRA established for the Contract Owner was made. Second, the distribution must be:
•  made after the Owner turns age 59½;
•  made after the Owner’s death;
•  attributable to the Owner being disabled; or
•  a qualified first-time homebuyer distribution within the meaning of section 72(t)(2)(F) of the Code.
A direct transfer from a Contract issued as a Roth IRA to another Roth IRA is not subject to income tax. However, during any 12- month period, you can make only one indirect rollover with respect to all IRAs you own, including Roth IRAs.
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Penalty Tax on Premature Distributions from a Roth IRA
Taxable distributions before age 59½ may also be subject to a 10% penalty tax. This early distribution penalty may also apply to amounts converted to a Roth IRA that are subsequently distributed within a 5-taxable year period beginning in the year of conversion. Please read “Penalty Tax on Premature Distributions from a Traditional IRA,” above, for more information.
The state tax treatment of a Roth IRA may differ from the federal income tax treatment of a Roth IRA. You should seek independent tax advice if you intend to use the Contract in connection with a Roth IRA.
Conversion or Rollover to a Roth IRA
You can convert a traditional IRA to a Roth IRA. You also can initiate a direct rollover distribution from a retirement plan described in sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code to a Roth IRA Contract. The Roth IRA annual contribution limit does not apply to conversion or rollover amounts, but you must satisfy our requirements for Additional Purchase Payments. See “V. Description of the Contract – Purchase Payments” for additional information.
You must pay tax on any portion of a conversion or rollover amount that would have been taxed if you had not converted or rolled over to a Roth IRA. If you convert a Contract issued as a traditional IRA to a Roth IRA, the amount deemed to be the conversion amount for tax purposes may be higher than the Contract Value because of the deemed value of guarantees. If you convert a Contract issued as a traditional IRA to a Roth IRA, you may instruct us not to withhold any of the conversion amount for taxes and remittance to the IRS. If you do instruct us to withhold for taxes when converting a Contract issued as a traditional IRA to a Roth IRA, we will treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal and a reduction in the benefit value of any elected optional guarantee Rider, in a proportion determined by the Rider. Please read Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more information about the impact of withdrawals.
If you direct the sponsor or administrator to transfer a rollover amount from your “non-Roth” Qualified Plan to a Roth IRA Contract, there is no mandatory tax withholding that applies to the rollover amount. A direct rollover to a Roth IRA is not subject to mandatory tax withholding, even though the distribution is includible in gross income.
Current tax law no longer imposes a restriction based on adjusted gross income on a taxpayer’s ability to convert a traditional IRA or other qualified retirement accounts to a Roth IRA. Accordingly, taxpayers with more than $100,000 of adjusted gross income may now convert such assets to a Roth IRA. Generally, the amount converted to a Roth IRA is included in ordinary income for the year in which the account was converted. Given the taxation of Roth IRA conversions and the potential for an early distribution penalty tax, you should consider the resources that you have available, other than your retirement plan assets, for paying any taxes that would become due the year of any such conversion or a subsequent year. You should seek independent qualified tax advice if you intend to use the Contract in connection with a Roth IRA.
You are not subject to federal income tax on a direct rollover of distributions from a Roth account in another Qualified Plan permitted to be rolled over into a Contract issued as a Roth IRA, or from a Contract issued as a Roth IRA to another Roth IRA.
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Other Qualified Plans
You may have purchased a Qualified Contract for use in connection with certain retirement plans that receive favorable treatment under the Code, but are not traditional IRAs or Roth IRAs. The other types of retirement plans (“Other Qualified Plans”) include:
Other Qualified Plan Type  
SIMPLE IRA Plans In general, under Section 408(p) of the Code a small business employer may establish a SIMPLE IRA plan if the employer employed no more than 100 employees earning at least $5,000 during the preceding year. Under a SIMPLE IRA plan both employees and the employer make deductible contributions. SIMPLE IRAs are subject to various requirements, including limits on the amounts that may be contributed, the persons who may be eligible, and the time when distributions may commence. The requirements for minimum distributions from a SIMPLE IRA plan are generally the same as those discussed above for distributions from a traditional IRA. The rules on taxation of distributions are also similar to those that apply to a traditional IRA with a few exceptions.
Simplified Employee Pensions (SEP-IRAs) Section 408(k) of the Code allows employers to establish simplified employee pension plans for their employees, using the employees’ IRAs for such purposes, if certain criteria are met. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to IRAs. The requirements for minimum distributions from a SEP-IRA, and rules on taxation of distributions from a SEP-IRA, are generally the same as those discussed above for distributions from a traditional IRA.
Section 403(b) Plans or Tax-Sheltered Annuities Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations to have their employers purchase annuity contracts for them and, subject to certain limitations, to exclude the Purchase Payments from gross income for tax purposes. There also are limits on the amount of incidental benefits that may be provided under a tax-sheltered annuity. These Contracts are commonly referred to as “tax-sheltered annuities.” Please see the SAI for information on withdrawal restrictions under Section 403(b) Plans. You may request a copy of the SAI from the Annuities Service Center.
Corporate and Self-Employed Pension and Profit-Sharing Plans (H.R. 10 and Keogh) Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of tax-deferred retirement plans for employees. The Self-Employed Individuals’ Tax Retirement Act of 1962, as amended, commonly referred to as “H.R. 10” or “Keogh,” permits self-employed individuals to establish tax-favored retirement plans for themselves and their employees. Such retirement plans may permit the purchase of annuity contracts in order to provide benefits under the plans; however, there are limits on the amount of incidental benefits that may be provided under pension and profit sharing plans.
Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. A Section 457 plan must satisfy several conditions, including the requirement that it must not permit distributions prior to your separation from service (except in the case of an unforeseen emergency). When we make payments under a Section 457 Contract, the payment is taxed as ordinary income. Please see the SAI for information on restrictions under the Texas Optional Retirement Program. You may request a copy of the SAI from the Annuities Service Center.
In the case of a Contract held by the trustee of a Qualified Plan, references to the Owner in the discussion below should be read to mean the employee named as the Annuitant on the Contract.
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Collecting and Using Information
Through your participation in a Qualified Plan, the Company, your employer, your Plan administrator, and your Plan sponsor collect various types of confidential information you provide in your agreements, such as your name and the name of any Beneficiary, Social Security Numbers, addresses, and occupation information. The Company, your employer, the Plan administrator, and your Plan sponsor also collect confidential information relating to your Plan transactions, such as Contract Values, Purchase Payments, withdrawals, transfers, loans and investments. In order to comply with IRS regulations and other applicable law in servicing your Contract, the Company, your employer, the Plan administrator and the Plan sponsor may be required to share such confidential information among themselves, other current, former or future providers under your Qualified Plan, and among their employees. By maintaining a Contract for use in a Qualified Plan or by intending to make an Additional Purchase Payment, transfer of ownership, transfer, withdrawal or loan on an existing Contract used in a Section 403(b) Plan, you consent to such sharing of confidential information. The Company will not disclose any such confidential information to anyone, except as permitted by law or in accordance with your consent.
Contributions to Other Qualified Plans
You may make Additional Purchase Payments through rollovers or conversions only from certain types of Qualified Plans or by making annual contributions to the extent permitted under the Code and by us. See “V. Description of the Contract – Purchase Payments” for information on our Purchase Payment requirements.
We have no responsibility for determining whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code and the plan. In general, the Code imposes limitations on the amount of annual compensation that can be contributed into Other Qualified Plans and contains rules to limit the total amount you can contribute to all of your IRAs and Other Qualified Plans. Trustees and administrators of Other Qualified Plans may, however, generally invest and reinvest existing plan assets without regard to such Code imposed limitations on contributions. Certain distributions from Other Qualified Plans may be transferred directly to another plan, unless funds are added from other sources, without regard to such limitations.
Distributions from Other Qualified Plans
If permitted under your plan, you may take a withdrawal in the form of a distribution:
•  from a Contract intended for use with any Qualified Plan (other than a section 457 deferred compensation plan maintained by a tax-exempt organization) and make a “tax-free rollover” to a traditional IRA;
•  from a Contract intended for use with any Qualified Plan (other than a section 457 deferred compensation plan maintained by a tax-exempt organization) and make a “tax-free rollover” to a SIMPLE IRA, but only after the 2-year period beginning on the date the individual first participated in any qualified salary reduction arrangement maintained by the individual’s employer*; or
•  from a Contract intended for use with a retirement plan qualified under sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code and make a “tax-free rollover” to any such plans.
* Note that if your Contract is a SIMPLE IRA, it does not accept a rollover from any Qualified Plan other than another SIMPLE IRA.
In addition, if your Spouse is your designated beneficiary and survives you, he or she is permitted to take a distribution from a Contact intended for use with your tax-qualified retirement account and make a “tax-free rollover” to another tax-qualified retirement account in which your surviving Spouse participates, to the extent permitted by your surviving Spouse’s plan. A Beneficiary who is not your surviving Spouse may, if permitted by the plan, make a direct rollover to a traditional IRA of the amount otherwise distributable to him or her upon your death under a Contract that is held as part of a retirement plan described in sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code. The IRA is treated as an inherited IRA of the non-Spouse Beneficiary. A Spouse Beneficiary may also make a direct rollover to an inherited IRA.
You may make a “tax-free rollover” to a Roth IRA from a Contract intended for use as a Roth account in a retirement plan described in section 401(a) or section 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code.
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In lieu of taking a distribution from your plan (including a section 457 deferred compensation plan maintained by a tax-exempt organization), your plan may permit you to make a direct trustee-to-trustee transfer of a Qualified Contract from the plan.
Current Treasury Department regulations provide a simplified method to determine the taxable portion of annuity payments under Contracts issued in connection with Other Qualified Plans. Please consult with your own qualified tax professional for further information.
Required Minimum Distributions from Other Qualified Plans
Note: Under the federal CARES Act, the obligation to take any required minimum distribution is waived for 2020.
Treasury Department regulations prescribe RMD rules governing the time at which distributions from Other Qualified Plans to the Owner and Beneficiary must commence and the form in which the distributions must be paid. These rules are substantially similar to the RMD rules described above for a traditional IRA, except that distributions of required minimum amounts must generally commence by the later of two dates as described below.
For a Qualified Plan participant born before July 1, 1949, required minimum distributions must generally begin by the later of:
•  April 1 of the calendar year following the calendar year in which the Qualified Plan participant turns 70½; or
•  April 1 of the calendar year following the calendar year in which Qualified Plan participant (other than a 5% owner) retires from the employer that sponsored the Qualified Plan.
For a Qualified Plan participant born after June 30, 1949, required minimum distributions must generally begin by the later of:
•  April 1 of the calendar year following the calendar year in which the Qualified Plan participant turns 72, or
•  April 1 of the calendar year following the calendar year in which the Qualified Plan participant (other than a 5% owner) retires from the employer that sponsored the Qualified Plan.
Penalty Tax on Premature Distributions from Other Qualified Plans
A 10% penalty tax may be imposed on the taxable amount of any payment from certain Qualified Contracts (but generally not section 457 plans). (The amount of the penalty tax is 25% of the taxable amount of any payment received from a SIMPLE retirement account during the 2-year period beginning on the date the individual first participated in any qualified salary reduction arrangement maintained by the individual’s employer.) There are exceptions to this penalty tax which vary depending on the type of Qualified Plan. In the case of distributions from certain Qualified Contracts, including a SIMPLE IRA, the penalty tax does not apply to a payment:
•  received on or after the date on which the Contract Owner reaches age 59½;
•  received on or after the Contract Owner’s death or because of the Contract Owner’s disability (as defined in the tax law); or
•  made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Owner or for the joint lives (or joint life expectancies) of the Contract Owner and “designated beneficiary” (as defined in the tax law).*
* You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59½ and the passage of five years after the date of the first payment.
Exceptions from the penalty tax also apply to certain distributions taken for qualified birth or adoption expenses, certain qualified disaster distributions, as well as certain coronavirus-related distributions made during calendar year 2020. The Code also provides for the opportunity to repay such distributions to an eligible retirement plan, including an IRA. Please consult with your own qualified tax professional to determine whether you qualify for any of these exceptions and what tax treatment will apply to the distribution and any repayment.
These exceptions, as well as certain others not described herein, generally apply to taxable distributions from Other Qualified Plans (although, in the case of plans qualified under sections 401 and 403 of the Code, the exception for substantially equal periodic payments applies only if the Contract Owner has separated from service). If you wish to take a distribution and rely on an exception to the penalty tax, please consult with your own qualified tax professional.
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Withholding on Eligible Rollover Distributions
Eligible rollover distributions from a retirement plan that is qualified under sections 401(a), 403(a) or 403(b) of the Code, or from a governmental deferred compensation plan described in section 457(b) of the Code are subject to mandatory withholding. An eligible rollover distribution generally is any taxable distribution from such plans except: (i) minimum distributions required under section 401(a)(9) of the Code; (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments;” and (iii) if applicable, certain hardship withdrawals.
Federal income tax of 20% will be withheld from an eligible rollover distribution. The withholding is mandatory, and you cannot elect to have it not apply. This 20% withholding will not apply, however, if instead of receiving the eligible rollover distribution, you choose to have it directly transferred to an eligible retirement plan, including a traditional IRA, or to a Roth IRA.
If we have to withhold a portion of your distribution, we will treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal or other type of reduction in the guarantees and benefits that you may have purchased under an optional benefits Rider to your Contract.
We do not need to withhold any amounts if you provide us with information, on the forms we require for this purpose, that you wish to assign a Qualified Contract to another Qualified Plan and/or transfer amounts from that Contract directly to another Qualified Plan. Similarly, if you wish to make Additional Purchase Payments to a Qualified Contract, you may find it advantageous to instruct your existing retirement plan to transfer amounts directly to us, in lieu of making a distribution to you. You should seek independent tax advice if you intend to maintain a Contract for use with a Qualified Plan.
Designated Roth Accounts within Other Qualified Plans
The Small Business Jobs Act of 2010 authorizes: (1) participants in governmental deferred compensation plans described in section 457(b) to contribute deferred amounts to designated Roth accounts within their 457(b) plan; and (2) participants in 401(k), 403(b) and certain other plans to roll over qualified distributions into a designated Roth account within their plans, if allowed by their plans. The Contract, however, was not designed to separately account for any Contract Value in a single Contract that is split between Roth and non-Roth accounts, even if your 401(k) Plan, 403(b) Plan or 457 Plan allows you to split your account. If your plan allows it, and you split your Contract Value into Roth and non-Roth accounts, you or your plan administrator (in the case of 401(k) Plans) will be responsible for the accounting of your Contract Value for tax purposes: calculating withholding, income tax reporting, and verifying Required Minimum Distributions made under our Life Expectancy Distribution Program. We are not responsible for the calculations of any service provider that you may use to split Contract Value between Roth and non-Roth accounts. We will deny any request that would create such a split.
Rollover to a Roth IRA
Current tax law no longer imposes a restriction, based on adjusted gross income, on a taxpayer’s ability to initiate a direct rollover from a non-Roth account in a Qualified Plan to a Roth IRA. Accordingly, taxpayers with more than $100,000 of adjusted gross income may now initiate a direct rollover of a distribution from a retirement plan described in sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code to a Roth IRA. The Roth IRA annual contribution limit does not apply to rollover amounts.
You must, however, pay tax on any portion of the rollover amount that would have been taxed if you had not made a direct rollover to a Roth IRA. No similar limitations apply to rollovers to one Roth IRA from another Roth IRA or from a Roth account in a retirement plan described in section 401(a) or section 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code. Please note that the amount deemed to be the “rollover amount” for tax purposes may be higher than the Contract Value because of the deemed value of guarantees.
A 10% penalty tax for premature distributions may apply if amounts converted to a Roth IRA are distributed within the 5-taxable year period beginning in the year the conversion is made. Generally, the amount converted to a Roth IRA is included in ordinary income for the year in which the account was converted.
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If you instruct us to transfer a rollover amount from a Qualified Contract to a Roth IRA, we will assume it is permitted under your plan and you may instruct us to not withhold any of the rollover for taxes and remittance to the IRS. A direct rollover is not subject to mandatory tax withholding, even if the distribution is includible in gross income. If you instruct us to withhold taxes in connection with a direct rollover from an existing Contract to a Roth IRA, we will treat any amount we withhold as a withdrawal from your Contract. This could result in an Excess Withdrawal, or other reduction of the guarantees and benefits you may have purchased under an optional benefits Rider to your Contract. Please read Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for information about the impact of withdrawals on optional benefit Riders.
Given the taxation of direct rollovers to a Roth IRA and the potential for an early distribution penalty tax, you should consider the resources that you have available, other than your retirement plan assets, for paying any taxes that would become due the year of any such rollover or a subsequent year. You should seek independent qualified tax advice if you intend to use the Contract in connection with a Roth IRA.
Section 403(b) Plans
Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations to have their employers purchase annuity contracts for them and, subject to certain limitations, to exclude the Purchase Payments from gross income for tax purposes. If you purchased a Contract for use in a retirement plan intended to qualify under section 403(b) of the Code (a “403(b) Plan”), we may restrict your ability to make Additional Purchase Payments unless: (a) we receive the Additional Purchase Payment directly from the 403(b) Plan through your employer, the Plan’s administrator, the Plan’s sponsor or in the form of a transfer acceptable to us; (b) we have entered into an agreement with your 403(b) Plan concerning the sharing of information related to your Contract (an “Information Sharing Agreement”); and (c) unless contained in the Information Sharing Agreement, we have received a written determination by your employer, the Plan administrator or the Plan sponsor of your 403(b) Plan that the plan qualifies under section 403(b) of the Code and complies with applicable Treasury Department regulations (a “Certificate of Compliance”) (Information Sharing Agreement and Certificate of Compliance, together, the “Required Documentation”).
We may accept, reject or modify any of the terms of a proposed Information Sharing Agreement presented to us, and make no representation that we will enter into an Information Sharing Agreement with your 403(b) Plan.
Additional Purchase Payments. We will not accept Additional Purchase Payments in the form of salary reduction, matching or other similar contributions in the absence of the Required Documentation. Matching or other employer contributions to Contracts issued on or after January 1, 2009, will be subject to restrictions on withdrawals specified in the Section 403(b) Plan.
We will not knowingly accept transfers, in the absence of the Required Documentation, from another existing annuity contract or other investment under a 403(b) Plan to a previously issued Contract used in a 403(b) Plan. Subject to our receipt of the Required Documentation, such transfers shall be made directly from a Plan through an employer, a Plan administrator or a Plan sponsor, or by a transfer acceptable to us.
In the event that we do not receive the Required Documentation and you nonetheless direct us to accept a Purchase Payment, the transfer may be treated as a taxable transaction.
Please see the SAI for information regarding withdrawals under 403(b) Plans. You may request a copy of the SAI from the Annuities Service Center.
Loans under section 403(b) of the Code
You may be eligible for a loan of some or all of your Contract Value if:
•  We issued your Contract prior to November 12, 2007;
•  Your Contract does not contain a GMWB Rider;
•  Your Contract is intended for use with a retirement plan qualified under section 403(b) of the Code;
•  The retirement plan is not subject to Title 1 of ERISA; and
•  Your retirement plan permits you to request the loan.
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Loans from Qualified Contracts intended for use under retirement plans qualified under section 403(b) of the Code, where allowed, are subject to a variety of limitations, including restrictions as to the amount that may be borrowed, the duration of the loan and the manner in which the loan must be repaid.
Loans are subject to the Code, Treasury regulations, IRS rulings, and our procedures in effect at the time you apply for a loan. Because the rules governing loans under section 403(b) Contracts are complicated, please consult your own tax professional before exercising any loan privilege for which you are eligible. Failure to meet the requirements for loans may result in adverse income tax consequences to you. The loan agreement you sign will describe the restrictions and limitations applicable to the loan at the time you apply.
Federal tax law generally requires loans to be repaid within 5 years (except in cases where the loan was used to acquire the principal residence of a plan participant), with repayments made at least quarterly and in level payments over the term of the loan. Interest will be charged on your Loan Amount. Failure to make a loan repayment when due will result in adverse income tax consequences to you.
We deduct the amount of any Unpaid Loans from the death benefit otherwise payable under the Contract. In addition, loans, whether or not repaid, will have a permanent effect on the Contract Value because the investment results of the Investment Accounts will apply only to the unborrowed portion of the Contract Value. The longer a loan is unpaid, the greater the effect is likely to be. The effect could be favorable or unfavorable.
If you have a loan outstanding under a Contract intended for use with a Section 403(b) Plan, any surrender or transfer of your Contract may subject you to income taxation on the amount of the loan balance.
Puerto Rico Contracts Issued to Fund Retirement Plans
The tax laws of Puerto Rico vary significantly from the provisions of the Internal Revenue Code of the United States that are applicable to various Qualified Plans. If you purchased a Contract intended for use in connection with Puerto Rican “tax qualified” retirement plans, please note that the text of this Prospectus addresses U.S. federal tax law only and is inapplicable to the tax laws of Puerto Rico.
See Your Own Tax Professional
The foregoing description of federal income tax topics and issues is only a brief summary and is not intended as tax advice. It does not include a discussion of federal estate and gift tax or state tax consequences. The rules under the Code governing Qualified Plans are extremely complex and often difficult to understand. Changes to the tax laws may be enforced retroactively. Anything less than full compliance with the applicable rules, all of which are subject to change from time to time, can have adverse tax consequences. The taxation of an Annuitant or other payee has become so complex and confusing that great care must be taken to avoid pitfalls. For further information, please consult with your own qualified tax professional.
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VIII.  General Matters
Asset Allocation Services
We are aware that certain third parties may have offered asset allocation services (“Asset Allocation Services”) in connection with the Contracts through which a third party may transfer amounts among Investment Options from time to time on your behalf. In certain cases we have agreed to honor transfer instructions from such Asset Allocation Services where we have received powers of attorney, in a form acceptable to us, from the Contract Owners participating in the service and where the Asset Allocation Service has agreed to the trading restrictions imposed by us. These trading restrictions include adherence to a Separate Account’s policies that we have adopted to discourage disruptive frequent trading activity. (See “Transfers Among Investment Options.”) We do not endorse, approve or recommend such services in any way. If you authorize payment for such services from your Contract Value: (1) we treat the payments as withdrawals under the terms described earlier in this Prospectus; and (2) any such withdrawals may incur a withdrawal charge or other fee under the terms described in this Prospectus, which would be separate and in addition to any other charges and fees you may pay for other withdrawals. (See “V. Description of the Contract – Accumulation Period Provisions – Withdrawals” for information about the treatment of withdrawals under the Contract. You should also refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits,” or Appendix D: “Optional Guaranteed Minimum Income Benefits,” if you purchased one of our optional benefit Riders, for information about the impact of withdrawals on the Rider’s benefits.)
Distribution of Contracts
John Hancock Distributors, LLC (“JH Distributors”), a Delaware limited liability company that we control, is the principal underwriter and distributor of the Contracts offered through this Prospectus and of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of the John Hancock Variable Insurance Trust, whose securities are used to fund certain Variable Investment Options under the Contracts and under other annuity and life insurance products we offer.
JH Distributors’ principal address is 200 Berkeley Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934 (the “1934 Act”) and is a member of the Financial Industry Regulatory Authority (“FINRA”).
We offered the Contracts for sale through broker-dealers that had entered into selling agreements with JH Distributors. Broker-dealers sold the Contracts through their registered representatives who were appointed by us to act as our insurance agents. JH Distributors may also have offered the Contracts directly to potential purchasers.
JH Distributors may continue to pay compensation to broker-dealers for the promotion, sale and servicing of the Contracts. Contract Owners do not pay this compensation directly. These payments are made from JH Distributors’ and our own revenues, profits or retained earnings, which may be derived from a number of sources, such as fees received from a Portfolio’s distribution plan (“12b-1 fees”), the fees and charges imposed under the Contract, and other sources, including distribution plans of the underlying portfolios of a Portfolio that is a fund of funds.
The individual representative who sold you a Contract may receive a portion of the compensation that we pay for servicing an existing Contract, or that we pay upon receipt of an Additional Purchase Payment, under the representative’s own arrangement with his or her broker-dealer. We may also continue to pay commissions or overrides to a limited number of broker-dealers that provided marketing support and training services to the broker-dealers that sold and service the Contracts.
Standard Compensation
The amount and timing of compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement, but compensation with respect to Contracts sold through broker-dealers (inclusive of wholesaler overrides and expense allowances) and paid to broker-dealers is not expected to exceed 8% of Purchase Payments. In addition, beginning one year after each Purchase Payment, JH Distributors may pay ongoing compensation at an annual rate of up to 1.20% of the values of the Contracts attributable to such Purchase Payments. The greater the amount of compensation paid by JH Distributors at the time you make a Purchase Payment, the less it will pay as ongoing compensation. This compensation is not paid directly by Contract Owners. JH Distributors pays the compensation from its assets but expects to recoup it through the fees and charges imposed under the Contract (see “VI. Charges and Deductions”).
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Revenue Sharing and Additional Compensation
In addition to standard compensation arrangements and to the extent permitted by SEC and FINRA rules and other applicable laws and regulations, we, either directly or through JH Distributors, may have entered into special compensation or reimbursement arrangements (“revenue sharing”) with selected broker-dealers (“firms”). We determined which firms to support and the extent of the payments that we made and may continue to make. Under these arrangements, the form of payment may have been any one or a combination of a flat fee, a percentage of the assets we hold that are attributable to Contract allocations, a percentage of sales revenues, reimbursement of administrative expenses (including ticket charges), conference fees, or some other type of compensation.
In consideration of these arrangements, a firm may have given us preferential access to members of its sales force. In addition, the firm may have agreed to participate in our marketing and on-going training and servicing activities by allowing JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm’s sales force.
These arrangements were not offered to all firms, and the terms of such arrangements differed between firms. During 2012, we terminated these revenue sharing arrangements with broker-dealers with respect to the sale of the Contracts, although a small number of firms continue to receive revenue sharing payments in accordance with the terms of agreements entered into with those particular firms. We provide additional information on special compensation or reimbursement arrangements in the SAI, which is available upon request. Any such compensation, which may have been significant at times, does not result in any additional direct charge to you by us.
Broker-dealers may receive or may have received additional payments from us, either directly or through JH Distributors, in the form of cash, other special compensation or reimbursement of expenses. These additional compensation or reimbursement payments may have included, for example, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payments for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public, advertising and sales campaigns regarding the Contract, and payments to assist a firm in connection with its marketing expenses and/or other events or activities sponsored by the firms. We may have contributed to, as well as sponsored, various educational programs, sales promotions and/or contests in which participating firms and their sales persons may have received gifts and prizes such as merchandise, cash, or other awards, as may be permitted by applicable FINRA rules and other applicable laws and regulations.
Differential Compensation
Compensation negotiated and paid by JH Distributors pursuant to a selling agreement with a broker-dealer may differ from compensation levels that the broker-dealer receives for selling or servicing other variable contracts. The compensation and revenue sharing arrangements may have given us benefits such as greater access to registered representatives. In addition, under their own arrangements, broker-dealer firms may pay a portion of any amounts received from us under standard or additional compensation or revenue sharing arrangements to their registered representatives. The additional compensation and revenue sharing arrangements may have given us benefits such as greater access to registered representatives. As a result, registered representatives may have been motivated to recommend one of our contracts over another issuer’s contract.
For sales representatives of certain affiliates, the amount of additional compensation paid was based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by us or our affiliates. The managers who supervised these sales representatives may also have been entitled to additional cash compensation based on the sale of proprietary products sold by their representatives. Because the additional cash compensation paid to these sales representatives and their managers was primarily based on sales of proprietary products, these sales representatives and their managers had an incentive to favor the sale of proprietary products over other products issued by non-affiliates.
Contracts Sold Directly Without Payment of Any Sales Compensation
(John Hancock USA Contracts only; not available in NY)
The Contract may have been sold directly to certain individuals under various circumstances that did not involve payment of any sales compensation to a registered representative. The following classes of individuals are eligible for this waiver:
•  officers, directors, trustees or employees (or a relative thereof) of John Hancock USA, Manulife, the John Hancock Variable Insurance Trust or any of their affiliates; and
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•  employees and registered representatives (and their immediate families) of registered broker-dealers (or their financial institutions) that: (1) have a sales agreements with John Hancock USA and its principal underwriter, JH Distributors, to sell the Contracts; and (2) have approved the payment of the credit to their employees and registered representatives.
Transaction Confirmations
We send you confirmation statements for certain transactions in your Investment Accounts. You should carefully review these transaction confirmations to verify their accuracy. You should report any mistakes immediately to our Annuities Service Center. If you fail to notify our Annuities Service Center of any mistake within 60 days of the delivery of the transaction confirmation, we will deem you to have ratified the transaction. We encourage you to register for electronic delivery of your transaction confirmations. Please contact the John Hancock Annuities Service Center at the applicable telephone number or internet address shown on the first page of this Prospectus for more information on electronic transactions.
Reinsurance Arrangements
From time to time, we may utilize reinsurance as part of our risk management program. Under any reinsurance agreement, we remain liable for the contractual obligations of the Contracts’ guaranteed benefits, and the reinsurer(s) agree to reimburse us for certain amounts and obligations in connection with the risks covered in the reinsurance agreements. The reinsurer’s contractual liability runs solely to us, and no Contract Owner shall have any right of action against any reinsurer. In evaluating reinsurers, we consider the financial and claims paying ability ratings of the reinsurer. Our philosophy is to minimize incidental credit risk. We do so by engaging in secure types of reinsurance transactions with high quality reinsurers and diversifying reinsurance counterparties to limit concentrations. Some of the benefits that may be reinsured include living benefits, guaranteed death benefits, Fixed Investment Option guarantees or other obligations.
Statements of Additional Information
Our Statements of Additional Information provide additional information about the Contracts, including the optional benefit Riders, and the Separate Accounts, including information on our history, services provided to the Separate Accounts and legal and regulatory matters. We filed the Statements of Additional Information with the SEC on the same date as this Prospectus, and incorporate them herein by reference. You may obtain a copy of the current Statements of Additional Information without charge upon request by contacting us at the Annuities Service Center shown on the first page of this Prospectus. The SEC also maintains a website (http://www.sec.gov) that contains the Statements of Additional Information and other information about us, the Contracts and the Separate Accounts. We list the Table of Contents of the Statements of Additional Information below.
John Hancock Life Insurance Company (U.S.A.) Separate Account H
Statement of Additional Information
Table of Contents
General Information and History
Accumulation Unit Value Tables
Services
        Independent Registered Public Accounting Firm
        Servicing Agent
        Principal Underwriter
        Special Compensation and Reimbursement Arrangements
Additional Information on Section 403(b) Plans or Tax-Sheltered Annuities
Additional Information on Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations
Legal and Regulatory Matters
Appendix A: Audited Financial Statements
John Hancock Life Insurance Company of New York Separate Account A
Statement of Additional Information
Table of Contents
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General Information and History
Accumulation Unit Value Tables
Services
        Independent Registered Public Accounting Firm
        Servicing Agent
        Principal Underwriter
        Special Compensation and Reimbursement Arrangements
Additional Information on Section 403(b) Plans or Tax-Sheltered Annuities
Additional Information on Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations Legal and Regulatory Matters
Appendix A: Audited Financial Statements
Financial Statements
The Statements of Additional Information also contain the Company’s financial statements for the years ended December 31, 2019 and 2018, and its Separate Account financial statements for the year ended December 31, 2019 (the “Financial Statements”). Our Financial Statements provide information on our financial strength as of December 31, 2019, including information on our General Account assets that were available at that time to support our guarantees under the Contracts and any optional benefit Riders. The Company’s General Account consists of securities and other investments, the value of which may decline during periods of adverse market conditions.
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Appendix A: Examples of Calculation of Withdrawal Charge
(for Ven 20, 22, 24 and Venture® 2006 Contracts)
The following examples do not illustrate withdrawal charges applicable to Ven 7, Ven 8, Ven 9, Ven 3 or Ven 1 Contracts. The length and duration of these withdrawal charges for these versions of the Contract differs as shown in the Fee Tables.
Example 1. Assume a single payment of $50,000 is made into the Contract, no transfers are made, no Additional Purchase Payments are made, there are no withdrawals, and the Payment Enhancement is not elected. The table below illustrates five examples of the withdrawal charges that would be imposed if the Contract is completely withdrawn, based on hypothetical Contract Values. During any Contract Year the free Withdrawal Amount is the greater of accumulated earnings, or 10% of the total payments made under the Contract less any prior withdrawals in that Contract Year.
Contract Year Hypothetical
Contract Value 		Free
Withdrawal
Amount 		Payments
Liquidated 		Withdrawal Charge
Percent Amount
2 $55,000 $ 5,0001 $ 50,000 6% $3,000
4 $50,500 $ 5,0002 $ 45,500 5% $2,275
6 $60,000 $10,000 3 $ 50,000 3% $1,500
7 $35,000 $ 5,0004 $45,000 4 2% $ 900
8 $70,000 $20,000 5 $ 50,000 0% $ 0
1 In the second Contract Year the earnings under the Contract and 10% of payments both equal $5,000. Consequently, on total withdrawal $5,000 is withdrawn free of the withdrawal charge, the entire $50,000 payment is liquidated and the withdrawal charge is assessed against such liquidated payment (Contract Value less free Withdrawal Amount).
2 In the example for the fourth Contract Year, the accumulated earnings of $500 is less than 10% of payments, therefore the free Withdrawal Amount is equal to 10% of payments ($50,000 × 10% = $5,000) and the withdrawal charge is only applied to payments liquidated (Contract Value less free Withdrawal Amount).
3 In the example for the sixth Contract Year, the accumulated earnings of $10,000 is greater than 10% of payments ($5,000), therefore the free Withdrawal Amount is equal to the accumulated earnings of $10,000 and the withdrawal charge is applied to the payments liquidated (Contract Value less free Withdrawal Amount).
4 In the example for the seventh Contract Year, the Contract has negative accumulated earnings ($35,000 – $50,000), so the free Withdrawal Amount is equal to 10% of payments ($50,000 × 10% = $5,000) and the withdrawal charge is applied to total payments less the free Withdrawal Amount. This calculation only applies to Contracts issued on or after April 1, 2003. For John Hancock USA Contracts issued prior to April 1, 2003 and for any John Hancock New York Contract, the withdrawal charge would be applied to the lesser of the total payments or the Contract Value, less the free Withdrawal Amount. In this example, the payments liquidated would be $30,000 ($35,000 – $5,000).
5 There is no withdrawal charge on any payments liquidated that have been in the Contract for at least 7 years.
Example 2. Assume a single payment of $50,000 is made into the Contract, no transfers are made, no Additional Purchase Payments are made, the Payment Enhancement is not elected, and there are a series of four withdrawals made during the second Contract Year of $2,000, $5,000, $7,000 and $8,000.
The free Withdrawal Amount during any Contract Year is the greater of the Contract Value less the unliquidated payments (accumulated earnings), or 10% of payments less 100% of all prior withdrawals in that Contract Year.
Hypothetical
Contract Value 		Withdrawal
Requested 		Free
Withdrawal
Amount 		Payments
Liquidated 		Withdrawal Charge
Percent Amount
$65,000 $2,000 $15,000 1 $ 0 5% $ 0
$49,000 $5,000 $ 3,0002 $2,000 5% $100
$52,000 $7,000 $ 4,0003 $3,000 5% $150
$44,000 $8,000 $ 04 $8,000 5% $400
1 For the first example, accumulated earnings of $15,000 is the free Withdrawal Amount since it is greater than 10% of payments less prior withdrawals ($5,000 – 0). The amount requested ($2,000) is less than the free Withdrawal Amount so no payments are liquidated and no withdrawal charge applies.
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2 The Contract has negative accumulate earnings ($49,000 – $50,000), so the free Withdrawal Amount is limited to 10% of payments less all prior withdrawals. Since $2,000 has already been withdrawn in the current Contract Year, the remaining free Withdrawal Amount during the third Contract Year is $3,000. The $5,000 withdrawal will consist of $3,000 free of withdrawal charge, and the remaining $2,000 will be subject to a withdrawal charge and result in payments being liquidated. The remaining unliquidated payments are $48,000.
3 The Contract has increased in value to $52,000. The unliquidated payments are $48,000 so the accumulated earnings are $4,000, which is greater than 10% of payments less prior withdrawals ($5,000 – $2,000 – $5,000 <0). Hence the free withdrawal amount is $4,000. Therefore, $3,000 of the $7,000 withdrawal will be subject to a withdrawal charge and result in payments being liquidated. The remaining unliquidated payments are $45,000.
4 The free Withdrawal Amount is zero since the Contract has negative accumulated earnings ($44,000 – $45,000) and the full 10% of payments ($5,000) has already been withdrawn. The full amount of $8,000 will result in payments being liquidated subject to a withdrawal charge. At the beginning of the next Contract Year the full 10% of payments would be available again for withdrawal requests during that year.
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Appendix B: Optional Enhanced Death Benefits
This Appendix provides a general description of the optional enhanced death benefits that may have been available at the time you purchased a Venture® Contract. If you purchased an optional enhanced death benefit Rider, you pay the charge shown in the Fee Tables for that benefit as long as it is in effect.
You should carefully review your Contract, including any attached Riders, for complete information on benefits, conditions and limitations of any enhanced death benefit Riders applicable to your Contract. You should also carefully review “VII. Federal Tax Matters” for information about taxes applicable to optional benefit Riders.
The following is a list of the various optional enhanced death benefit Riders that you may have had available to you at issue. Not all Riders were available at the same time or in all states.
•  Guaranteed Earning Multiplier Death Benefit (Not offered in New York or Washington)
•  Triple Protection Death Benefit (Not offered in New York or Washington)
•  Enhanced Death Benefit (Ven 7 and Ven 8 Contracts only)
•  Annual Step-Up Death Benefit (Venture® 2006 Contracts only)
Guaranteed Earnings Multiplier
(Not offered in New York or Washington)
Depending on availability, you may have elected the optional Guaranteed Earnings Multiplier benefit for an additional charge of 0.20% of the value of the Variable Investment Options. With this benefit, on the death of any Contract Owner prior to the Maturity Date, John Hancock USA will pay the death benefit otherwise payable under the Contract plus the benefit payable under the Guaranteed Earnings Multiplier. Election of the Guaranteed Earnings Multiplier may only be made at issue, is irrevocable, and it may only be terminated as described below.
Subject to the maximum amount described below, the Guaranteed Earnings Multiplier provides a payment equal to 40% of the appreciation in the Contract Value (as defined below) upon the death of any Contract Owner if the oldest Owner is 69 or younger at issue, and 25% if the oldest Owner is 70 or older at issue.
The appreciation in the Contract Value is defined as the Contract Value less the sum of all Purchase Payments, reduced proportionally by any amount deducted in connection with withdrawals. The death benefit will also be reduced by the amount of any Unpaid Loans under a Contract in the case of certain Qualified Contracts.
If the oldest Owner is 69 or younger at issue, the maximum amount of the Guaranteed Earnings Multiplier benefit is equal to 40% of the sum of all Purchase Payments, less any amounts deducted in connection with withdrawals. If the oldest Owner is 70 or older at issue, the maximum amount of the Guaranteed Earnings Multiplier benefit is equal to 25% of the sum of all Purchase Payments, less any amounts deducted in connection with withdrawals.
The amount deducted in connection with withdrawals will be on a pro rata basis and will be equal to (i) multiplied by (ii) where:
(i)  is equal to the Guaranteed Earnings Multiplier benefit prior to the withdrawal; and
(ii)  is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
If the Beneficiary under the Contract is the deceased Owner’s Spouse and elects not to take the death benefit as a lump sum, upon the death of any Owner the Contract and Guaranteed Earnings Multiplier will continue with the surviving Spouse as the new Contract Owner. In this case, upon the death of the surviving Spouse prior to the Maturity Date, a second Guaranteed Earnings Multiplier benefit will be paid and the entire interest in the Contract must be distributed to the new Beneficiary.
For purposes of calculating the Guaranteed Earnings Multiplier benefit payable on the death of the surviving Spouse, the Guaranteed Earnings Multiplier benefit will be equal to zero on the date of the first Contract Owner’s death and the death benefit payable upon the first Contract Owner’s death will be treated as a Purchase Payment. In addition, all Purchase Payments made, and all amounts deducted in connection with withdrawals prior to the date of the first Contract Owner’s death, will not be considered in determining the Guaranteed Earnings Multiplier benefit.
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Termination of the Guaranteed Earnings Multiplier
Guaranteed Earnings Multiplier will terminate upon the earliest to occur of: (a) the date the Contract terminates; (b) the Maturity Date; or (c) the date on which the Guaranteed Earnings Multiplier benefit is paid. However, as noted in the paragraph above, if the deceased Owner’s Spouse is the Beneficiary, the Spouse may elect to continue the Contract (including Guaranteed Earnings Multiplier) as the new Owner.
Guaranteed Earnings Multiplier Fee
A daily charge at an annual effective rate of 0.20% of the value of each Variable Investment Option is deducted from each Subaccount for the Guaranteed Earnings Multiplier.
The election of Guaranteed Earnings Multiplier on a Contract may not always be in your interest since an additional fee is imposed for this benefit.
Triple Protection Death Benefit
(Not offered in New York or Washington)
Depending on availability, you may have elected the Triple Protection Death Benefit, which provides a death benefit upon the death of any Owner prior to the Maturity Date. Under Triple Protection Death Benefit, no death benefit is payable on the death of any Annuitant, except that if any Contract Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. This benefit was available for Contracts issued between December 2003 and December 2004.
Once the Triple Protection Death Benefit is elected, it is irrevocable. If the Triple Protection Death Benefit is elected, the death benefit paid under the Triple Protection Death Benefit replaces any death benefit paid under the terms of the Contract. An additional annual fee of 0.50% (as a percentage of the Triple Protection Death Benefit) is imposed for the Triple Protection Death Benefit (see “Triple Protection Death Benefit Fee” below). Once the Triple Protection Death Benefit is elected, the Owner may only be changed to an individual that is the same age or younger than the oldest current Owner.
The death benefit paid under the Triple Protection Death Benefit is determined as of the date on which written notice and proof of death and all required forms are received in good order at our Annuities Service Center. The amount of the Triple Protection Death Benefit is equal to the “‘Enhanced Earnings Death Benefit’ Factor”* plus the greatest of:
•  the Contract Value;
•  the Return of Purchase Payments Death Benefit Factor*;
•  the Annual Step-Up Death Benefit Factor*; or
•  the Graded Death Benefit Factor*.
(*defined below)
We may offer other optional Riders whose benefits and the names of such benefits are similar to the Triple Protection Death Benefit Factor. These other optional Riders are separate and distinct from the Triple Protection Death Benefit Factor; they contain separate optional Rider charges and their benefits and limitations may be different.
If there is any Debt under the Contract, the Triple Protection Death Benefit equals the amount described above less the Debt amount.
If the Beneficiary is the deceased Owner’s Spouse, and the Triple Protection Death Benefit is not taken in one sum immediately, the Contract and the Triple Protection Death Benefit Rider will continue with the surviving Spouse as the new Owner. Upon the death of the surviving Spouse prior to the Maturity Date, a second Triple Protection Death Benefit will be paid and the entire interest in the Contract must be distributed to the new Beneficiary in accordance with the provisions of the Contract.
For purposes of calculating the second Triple Protection Death Benefit, payable upon the death of the surviving Spouse:
•  The Triple Protection Death Benefit paid upon the first Owner’s death (“first Triple Protection Death Benefit”) is not treated as a Purchase Payment to the Contract;
•  In determining the “Enhanced Earnings Death Benefit” Factor (see “‘Enhanced Earnings Death Benefit’ Factor” below), on the date the first Triple Protection Death Benefit was paid, the Earnings Basis is reset to equal the first Triple Protection Death Benefit. The Earnings Basis will be increased for any Purchase Payments made and decreased for any Withdrawal Reductions in connection with withdrawals taken after the date the first Triple Protection Death
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  Benefit was paid. All Purchase Payments made and all amounts deducted in connection with withdrawals prior to the date the first Triple Protection Death Benefit was paid will not be considered in the determination of the “Enhanced Earnings Death Benefit” Factor;
•  In determining other elements of the death benefit calculation (described above as (b) the Return of Purchase Payments Death Benefit Factor; (c) the Annual Step-Up Death Benefit Factor; and (d) the Graded Death Benefit Factor), all Purchase Payments and all withdrawals before and after the date the first Triple Protection Death Benefit was paid will be considered.
Return of Purchase Payments Death Benefit Factor. For purposes of the Triple Protection Death Benefit, the Return of Purchase Payments Death Benefit Factor is equal to the sum of all Purchase Payments made less the sum of all Withdrawal Reductions in connection with withdrawals (see “Withdrawal Reductions” below).
“Enhanced Earnings Death Benefit” Factor. For purposes of the Triple Protection Death Benefit, the “Enhanced Earnings Death Benefit” Factor is equal to 50% multiplied by Earnings, as defined under the “Enhanced Earnings Death Benefit” Factor calculation of the Triple Protection Death Benefit Rider. For purposes of the “Enhanced Earnings Death Benefit” Factor calculation, Earnings are equal to the Contract Value minus the Earnings Basis. The Earnings Basis is equal to 150% of each Purchase Payment made less the sum of all Withdrawal Reductions in connection with withdrawals (see “Example” and “Withdrawal Reductions” below).
The Maximum “Enhanced Earnings Death Benefit” Factor is equal to 100% of the Earnings Basis.
Example. Assume you make a single Purchase Payment of $100,000 into the Contract, you make no Additional Purchase Payments and you take no withdrawals. Also assume the Contract Value is equal to $175,000 on the date we determine the Triple Protection Death Benefit. Based on these assumptions:
•  The “Earnings Basis” is equal to 150% of $100,000, or $150,000.
•  “Earnings” are equal to $175,000 minus $150,000, or $25,000.
•  The “Enhanced Earnings Death Benefit” Factor is equal to 50% of $25,000, or $12,500.
Note that for purposes of the Triple Protection Death Benefit, “Earnings” will always be less than the excess of Contract Value over Purchase Payments. In this example, “Earnings” are less than $75,000 (or $175,000 minus $100,000).
Annual Step-Up Death Benefit Factor. For purposes of the Triple Protection Death Benefit, the Annual Step-Up Death Benefit Factor is equal to the greatest Anniversary Value since the effective date of the Triple Protection Death Benefit Rider but prior to the oldest Owner’s turning age 81. The Anniversary Value is equal to the Contract Value on a Contract Anniversary increased by all Purchase Payments made, less Withdrawal Reductions in connection with withdrawals since that Contract Anniversary (see “Withdrawal Reductions” below).
Graded Death Benefit Factor. For purposes of the Triple Protection Death Benefit, the Graded Death Benefit Factor is equal to (1) minus (2) where:
1.  is equal to the sum of each Purchase Payment multiplied by the applicable Payment Multiplier obtained from the table below:
Number of Complete Years
Payment has been in Contract 		Payment Multiplier*
0 100%
1 110%
2 120%
3 130%
4 140%
5 150%
*If a Purchase Payment is received on or after the oldest Owner’s 71st birthday, the Payment Multiplier equals 100% in all years. Thus, for Purchase Payments made on or after the oldest Owner reaches age 71, the benefit provided by the Graded Death Benefit Factor is equal to the benefit provided by the Return of Purchase Payments Death Benefit Factor.
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2.  is equal to the sum of Withdrawal Reductions in connection with withdrawals taken. Withdrawal Reductions are recalculated each time the Graded Death Benefit Factor is recalculated, based on Purchase Payment and withdrawal history.
The Graded Death Benefit Factor will never be greater than Purchase Payments less the sum of all Withdrawal Reductions in connection with withdrawals taken plus $250,000.
Withdrawal Reductions. If total withdrawals taken during a Contract Year are less than or equal to 5% of total Purchase Payments (the “Annual Withdrawal Limit”), then the Withdrawal Reductions reduce the appropriate value by the dollar amount of each withdrawal. Otherwise, Withdrawal Reductions reduce the appropriate value by the percentage reduction in the Contract Value attributed to the amount of each withdrawal.
The guaranteed death benefits provided by Triple Protection Death Benefit are adjusted at the point of each withdrawal but may be recalculated if subsequent withdrawals are taken within the same Contract Year. For example, if a withdrawal causes total withdrawals taken during that Contract Year to exceed 5% the Annual Withdrawal Limit, then all previous Withdrawal Reductions in that Contract Year will be recalculated and will reduce the appropriate value proportionally. If a subsequent Purchase Payment is made, then the Annual Withdrawal Limit will increase potentially resulting in a recalculation of previous Withdrawal Reductions within the same Contract Year.
Investment Options
We reserve the right to restrict Investment Options at any time. We will notify the Owner in writing at least 30 days prior to restricting an Investment Option. If we restrict an Investment Option, you may not be able to transfer or allocate Contract Value or Purchase Payments to the restricted Investment Option after the date of the restriction. Any amounts previously allocated to an Investment Option that is subsequently restricted will be unaffected by such restriction. Any amount previously allocated to Fixed Investment Options may be renewed subject to the terms of the Contract.
At the current time, there are no additional Investment Option restrictions imposed when the Triple Protection Death Benefit Rider is chosen.
Termination of Triple Protection Death Benefit Rider
The Owner may not terminate the Triple Protection Death Benefit Rider. However, the Triple Protection Death Benefit will terminate automatically upon the earliest of:
•  the date the Contract terminates;
•  the Maturity Date; or
•  the later of the date on which the Triple Protection Death Benefit is paid, or the date on which the second Triple Protection Death Benefit is paid, if the Contract and the Triple Protection Death Benefit Rider are continued by the surviving Spouse after the death of the original Owner.
Triple Protection Death Benefit Fee
Prior to termination of the Triple Protection Death Benefit Rider, on each Contract Anniversary, the Triple Protection Death Benefit fee is calculated by multiplying 0.50% by the Triple Protection Death Benefit payable had death occurred on that Contract Anniversary. On each Contract Anniversary, the Triple Protection Death Benefit fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
If there is a total withdrawal on any date other than a Contract Anniversary, we will deduct a pro rata portion of the Triple Protection Death Benefit fee from the amount paid upon withdrawal. The Triple Protection Death Benefit fee will be determined based on the Triple Protection Death Benefit that would have been payable had death occurred immediately prior to the total withdrawal. For purposes of determining the Triple Protection Death Benefit fee, the commencement of annuity payments shall be treated as a total withdrawal.
Enhanced Death Benefit
An Enhanced Death Benefit was available for certain Ven 7 and Ven 8 Contracts. If you purchased this optional benefit Rider, we “step up” the minimum death benefit each Contract Year instead of over the six Contract Year period described in
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the “Death Benefit During Accumulation Period” section of the Prospectus. In addition, if the Annuitant dies after the first of the month following his or her 85th birthday, the death benefit during the Accumulation Period is the greater of:
•  the Contract Value; or
•  the total amount of Purchase Payments less any amounts deducted in connection with withdrawals.
If you purchased this optional benefit, you paid the greater of: (i) at least 10% of all Purchase Payments made to the Contract through the date the Enhanced Benefit first became available in the state where your Contract was issued; or (ii) $10,000.
This Enhanced Death Benefit became available for Ven 7 and Ven 8 Contracts issued:
After: In the states of:
August 15, 1994 Florida, Maryland and Washington
October 3, 1994 Idaho, New Jersey and Oregon
January 3, 1995 California
This Enhanced Death Benefit was also available for Contracts issued prior to August 15, 1994. Contracts with a Contract Date prior to the date the Enhanced Death Benefit first became available in the state of issue may also have been exchanged for a new Contract which provides for an alternative enhanced death benefit.
Annual Step-Up Death Benefit
You may have elected the optional Annual Step-Up Death Benefit:
•  for an additional charge of 0.20% of the value of the Variable Investment Options;
•  as long as you met our issue age requirements (see below); and
•  for Contracts issued in February 2009 and later, if the Contract was not intended to be used with an IRA you inherited from someone else (sometimes referred to as a “Beneficiary IRA”), unless you are the Spouse of the decedent and own the IRA in your own name.
For Contracts issued after June 2010 (dates may vary by state), the Annual Step-Up Death Benefit was only available if you (and every joint Owner) were under age 75 when we issued the Contract.
For all Contracts issued prior to June 2010 (dates may vary by state), the Annual Step-Up Death Benefit was available only if you (and every joint Owner) were under age 80 when we issued the Contract.
The Annual Step-Up Death Benefit was only available at Contract issue and cannot be revoked once elected.
Rider Benefit
The amount of the death benefit for the Annual Step-Up Death Benefit is the greater of:
•  the death benefit described under “Death Benefit During Accumulation Period”; or
•  the Annual Step-Up Death Benefit.
For Contracts issued after June 2010 (dates may vary by state), the Annual Step-Up Death Benefit is the highest Anniversary Value that may be achieved before you (or any joint Owner) reach 75 years old.
For all Contracts issued prior to June 2010 (dates may vary by state), the Annual Step-Up Death Benefit is the highest Anniversary Value that may be achieved before you (or any joint Owner) reach 81 years old.
Anniversary Value. For purposes of the Rider, the greatest Anniversary Value is equal to the Contract Value on each Contract Anniversary, plus any subsequent Purchase Payments, less any amounts deducted in connection with withdrawals since the Contract Anniversary. The amount deducted in connection with withdrawals will be on a pro rata basis and will be equal to (a) multiplied by (b) where:
(a)  is equal to the Annual Step-Up Death Benefit prior to the withdrawal; and
(b)  is equal to the Withdrawal Amount divided by the Contract Value prior to the withdrawal.
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Additional Purchase Payments. Additional Purchase Payments, up to specified limits, can increase amounts guaranteed under the Annual Step-Up Death Benefit Rider. Our restrictions on Additional Purchase Payments, however, may prevent you from increasing the death benefit under your Contract based on Additional Purchase Payments, and may also prevent you from increasing the amounts we guarantee under an Annual Step-Up Death Benefit Rider.
Continuation of Rider upon Death of Owner. If the Beneficiary under the Contract is the Contract Owner’s surviving Spouse and elects to continue the Contract, the Contract and the Annual Step-Up Death Benefit will continue with the surviving Spouse as the new Contract Owner, subject to our issue age rules. For purposes of calculating the Annual Step-Up Death Benefit payable upon the death of the surviving Spouse, the death benefit paid upon the first Owner’s death will be treated as a payment to the Contract. In addition, all payments made and all amounts deducted in connection with withdrawals prior to the date the first death benefit is paid will be excluded from consideration in determining the Annual Step-Up Death Benefit. In determination of the Annual Step-Up Death Benefit, the Anniversary Values for all prior Contract Anniversaries are set to zero as of the date the first death benefit is paid.
Termination of the Optional Annual Step-Up Death Benefit
The Annual Step-Up Death Benefit will terminate upon the earliest to occur of:
(a)  the date the Contract terminates;
(b)  the Maturity Date;
(c)  the date on which the Annual Step-Up Death Benefit is paid; and
(d)   (for Contracts issued on or after June 18, 2010 (dates may vary by state)) the date the Owner is changed or the Contract is assigned, unless:
(i)  the new Owner is a guardian, a custodian or a trust established for the sole benefit of the previous Owner; or
(ii)  the new Owner is an individual and the previous Owner was a guardian, a custodian or a trust established for the sole benefit of that individual; or
(iii)  the change is from one guardian, custodian or trust established for the sole benefit of an individual to another guardian, custodian or trust established for the sole benefit of that individual; or
(iv)  the Ownership is transferred to the Owner’s Spouse following the death of the Owner; or
(v)  the Contract is assigned to a guardian, a custodian or a trust established for the sole benefit of the previous Owner; or
(vi)  the assignment is for purposes of a tax qualified exchange.
Annual Step-Up Death Benefit Fee
A daily charge in an amount equal to 0.20% of the value of each variable Investment Account on an annual basis is deducted from each Subaccount for the Annual Step-Up Death Benefit.
Qualified Plans
If you use your Contract in connection with a Qualified Plan, including an IRA, you should consider the effects that the death benefit provided under the Contract (with or without Annual Step-Up Death Benefit) may have on your plan. Please consult your own qualified tax professional. Federal tax law may limit the period over which the death benefit can be paid when the Beneficiary is not your surviving spouse.
The Annual Step-Up Death Benefit may not always be in your interest since an additional fee is imposed for this benefit and we provide no assurance that investment performance will be sufficient to result in an increased death benefit.
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Appendix C: Optional Guaranteed Minimum Withdrawal Benefits
This Appendix describes the following optional guaranteed minimum withdrawal benefit (“GMWB”) Riders that may be part of a previously issued Contract:
Income Plus For Life® Series Riders:
•  Income Plus For Life® 1.11 Series:
•  Income Plus For Life® 1.11
•  Income Plus For Life – Joint Life® 1.11
•  Income Plus For Life® 5.09 Series:
•  Income Plus For Life® 5.09
•  Income Plus For Life – Joint Life® 5.09
•  Income Plus For Life® 12.08 Series:
•  Income Plus For Life® 12.08
•  Income Plus For Life – Joint Life® 12.08
•  Income Plus For Life® (Quarterly Step-Up Review) Series
•  Income Plus For Life® (Quarterly Step-Up Review)
•  Income Plus For Life – Joint Life® (Quarterly Step-Up Review)
•  Income Plus For Life® (Annual Step-Up Review) Series*
•  Income Plus For Life® (Annual Step-Up Review)
•  Income Plus For Life – Joint Life® (Annual Step-Up Review)
* The Income Plus For Life® (Annual Step-Up Review) Series Riders were previously referred to as “Income Plus For Life®” and “Income Plus For Life – Joint Life®.”
Principal Plus for Life Series Riders
•  Principal Plus for Life
•  Principal Plus for Life Plus Automatic Annual Step-Up
•  Principal Plus for Life Plus Spousal Protection
Principal Plus Rider
Principal Returns Rider
These optional GMWB Riders are no longer available to be added to your Contract. If you purchased any of these Riders, you pay the charge shown in the Fee Tables for that benefit as long as it is in effect. These Riders were not available at all times we offered a Contract, nor were they available in all states. Where they were available, we only permitted one GMWB Rider to be purchased per Contract. You should review your Contract carefully to determine which of these optional benefit Riders, if any, you purchased. These Riders cannot be revoked once elected.
We describe a different type of optional benefit Rider, known as a “Guaranteed Minimum Income Benefit Rider,” in Appendix D.
General Information about Guaranteed Minimum Withdrawal Benefit Riders
This section of the Appendix provides general information about our GMWB Riders. We provide specific information about each GMWB Rider’s features in the sections that follow.
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Forms of Guaranteed Amounts
Our GMWB Riders provide two different types of benefits:
Lifetime Income Amount. This type of benefit provides a guarantee of a minimum amount available for annual withdrawals for the duration of a single lifetime, or for the duration of two (“joint”) lifetimes. Lifetime Income Amount guarantees begin on a Lifetime Income Date.
Guaranteed Withdrawal Amount. This type of benefit provides a guarantee of a minimum amount available for annual withdrawals that will last for a period of time measured by a Benefit Base (sometimes referred to as a “Guaranteed Withdrawal Balance”). Initial Guaranteed Withdrawal Amounts are generally determined on the date you purchase a Rider, but may be increased if you defer taking withdrawals and decreased if you take Excess Withdrawals.
The Rider you purchased may provide either a Lifetime Income Amount or a Guaranteed Withdrawal Amount or both types of benefits. We describe the types of benefits for each Rider in the Features section of this Appendix.
Covered Person(s)
Please review the “Features” section of the applicable Rider to determine if the Rider provides a lifetime income guarantee and, if so, whether it can be based on a single life or on joint lives.
Single Life Guarantee. For Riders that provide a lifetime income guarantee based on the life of a single Covered Person, the Covered Person is the oldest Owner at issue of the Rider. We may have waived the requirement of Contract ownership and permitted you to designate a Covered Person who is an Annuitant in situations where the Owner is not the Annuitant.
EXAMPLE: We permit the Annuitant to be a Covered Person if a custodial account owns a Qualified Contract for the benefit of an Annuitant.
The Covered Person must remain an Owner (or an Annuitant, subject to our underwriting rules) to receive benefits under the Rider.
Joint Life Guarantee. For Riders that provide a lifetime income guarantee based on the lifetime durations of two Covered Persons, we determined the Covered Persons at the time you elected the Rider. A spouse may need to qualify as a “spouse” under state law (a “Spouse”) to be treated as a Covered Person under the Contract.
For Riders issued with Nonqualified Contracts:
•  both Spouses must be named as co-Owners of the Contract; or
•  if only one Spouse is named as an Owner of the Contract (or Annuitant if the Owner is a non-natural person), the other Spouse must be designated as the Beneficiary of the Contract.
For Riders issued with Qualified Contracts:
•  one Spouse must be named as the Owner (or Annuitant if the Owner is a non-natural person); and
•  the Owner’s Spouse must be the designated Beneficiary.
A Covered Person will no longer qualify as such (i.e., that Covered Person will be removed from the Rider) if that person is no longer designated as an Owner, co-Owner, Annuitant, co-Annuitant or Beneficiary as required above. In the event that you and your Spouse become divorced after you purchased the Rider, you may not add a new Spouse as a Covered Person. If you remove your Spouse as an Owner, Beneficiary or Annuitant, that person will no longer be a Covered Person under the Rider (see “Impact of Divorce” in “V. Description of the Contract – Accumulation Period Provisions” for additional information on the impact of divorce). You may lose benefits under the Rider if a Covered Person is removed from the Rider.
Availability of Guaranteed Minimum Withdrawal Benefit Riders
You could have elected a GMWB Rider at the time you purchased a Contract. Once you elected a GMWB Rider, its effective date usually is the Contract Date (unless we permitted otherwise) and it is irrevocable. We charge an additional fee for each Rider that differs by Rider.
Changes to the Owner, Annuitant or Beneficiary designations after the Rider is issued may reduce, limit, or terminate benefits available under the Rider.
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Rider Fees
We charge an additional fee on each Contract Anniversary for a GMWB Rider, and reserve the right to increase the fee on the effective date of each Step-Up in the benefits under that Rider. We withdraw the amount of the fee from each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value. We deduct the pro rata share of the annual fee from the Contract Value:
•  on the date we determine the death benefit;
•  after the Annuity Commencement Date at the time an Annuity Option begins; or
•  at full surrender of the Contract; or
•  depending on the Rider, on the date an Excess Withdrawal reduces the Contract Value to zero.
We do not deduct any additional Rider fee during the Settlement Phase or after the Annuity Commencement Date once an Annuity Option begins.
Fee for Income Plus For Life® 1.11 Series Riders. The current fee is equal to 1.00% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change either the Income Plus For Life® 1.11 or Income Plus For Life – Joint Life® 1.11 fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Income Plus For Life® 5.09 Series Riders. The current fee is equal to 0.90% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change either the Income Plus For Life® 5.09 or Income Plus For Life – Joint Life® 5.09 fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Income Plus For Life® 12.08 Series Riders. The fee is equal to 0.85% of the Adjusted Benefit Base for Contracts issued outside of New York, and 0.80% for Contracts issued in New York. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change either the Income Plus For Life® 12.08 or Income Plus For Life – Joint Life® 12.08 fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Income Plus For Life® (Quarterly Step-Up Review) Series Riders. The fee is equal to 0.75% of the Adjusted Benefit Base for Contracts issued outside of New York, and 0.70% for Contracts issued in New York. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change either the Income Plus For Life® (Quarterly Step-Up Review) or Income Plus For Life – Joint Life® (Quarterly Step-Up Review) fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Income Plus For Life® (Annual Step-Up Review) Series Riders. The fee is equal to 0.60% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change the Income Plus For Life® (Annual Step-Up Review) or Income Plus For Life – Joint Life® (Annual Step-Up Review) fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Principal Plus for Life. The fee is equal to 0.40% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Anniversary) increased by the amount of any Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus for Life fee on the effective date of each Step-Up. In such a situation, the Principal Plus for Life fee will never exceed 0.75%.
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Fee for Principal Plus for Life Plus Automatic Annual Step-Up. The current fee is equal to 0.70% of the Adjusted Benefit Base. The fee for Riders purchased December 15, 2008 through April 30, 2009 is 0.70% of the Adjusted Benefit Base. The fee for Riders purchased June 16, 2008 through December 12, 2008 is 0.55% of the Adjusted Benefit Base. The fee for Riders purchased prior to June 16, 2008 is 0.60% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus for Life Plus Automatic Annual Step-Up Rider fee on the effective date of each Step-Up. In such a situation, the Principal Plus for Life Plus Automatic Annual Step-Up Rider fee will never exceed 1.20%.
Fee for Principal Plus for Life Plus Spousal Protection. The fee is equal to 0.65% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by any the amount of Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus for Life Plus Spousal Protection Rider fee on the effective date of each Step-Up. In such a situation, the Principal Plus for Life Plus Spousal Protection Rider fee will never exceed 1.20%.
Fee for Principal Plus. The fee is equal to 0.30% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary adjusted by the amount of any Step-Up, Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus fee on the effective date of each Step-Up. In such a situation, the Principal Plus fee will never exceed 0.75%.
Fee for Principal Returns. The fee is equal to 0.50% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Returns fee on the effective date of each Step-Up. In such a situation, the Principal Returns fee will never exceed 0.95%.
If we decide to increase the rate of a Rider fee at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the Step-Up. If you decline a scheduled Step-Up, we will not increase the Rider fee at that time. You will have the option to elect a Step-Up within 30 days of subsequent Step-Up Dates. If you decide to step-up a guaranteed amount at that time, we will thereafter resume automatic Step-Ups on each succeeding Step-Up Date.
Restrictions on Additional Purchase Payments
If you purchased a GMWB Rider, we restrict your ability to make Additional Purchase Payments to the Contract without our prior approval.
Restrictions on Additional Purchase Payments for Nonqualified Contracts. If we issued your Contract not in connection with an IRA or other Qualified Plan, we will not accept, without our prior approval:
•  (Contracts issued in states other than OR and NJ) any Additional Purchase Payment after the first Contract Anniversary; or
•  (Contracts issued in OR or NJ) any Additional Purchase Payment after the first Contract Anniversary following the Rider Date if your total Additional Purchase Payments after the first Contract Anniversary exceed $100,000.
Restrictions on Additional Purchase Payments for Qualified Contracts. If we issued your Contract in connection with a Qualified Plan, including an IRA, we will not accept, without our prior approval:
•  (Contracts issued in states other than OR and NJ) Additional Purchase Payments on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issued your Contract after you became Age 64);
•  (Contracts issued in OR or NJ) Additional Purchase Payments on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issued your Contract after you became Age 64), if your total payments after the first Contract Anniversary exceed $100,000; but
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•  (all Contracts) any Purchase Payment after the oldest Covered Person becomes age 81.
For Contracts issued with Principal Plus, we reserve the right to apply the Nonqualified Contract Additional Purchase Payment Restrictions to Qualified Contracts.
Additional Purchase Payments for both Nonqualified Contracts and Qualified Contracts are also subject to the following:
•  You may not make an Additional Purchase Payment, without our approval, if your Contract Value exceeds $1 million at the time of payment or if the Additional Purchase Payment would cause your Contract Value to exceed $1 million.
•  You may not make an Additional Purchase Payment during a Rider’s Settlement Phase (see “Settlement Phase” below).
•  Other limitations on Additional Purchase Payments may vary by state.
You should consult with a qualified tax professional regarding your GMWB Rider for further information on tax rules affecting Qualified Contracts, including IRAs.
Approval of Additional Purchase Payments through Automatic Withdrawals from Bank Accounts and Payroll Deduction Plans. We will continue to accept Additional Purchase Payments under the terms of your Contract and GMWB Rider when made in connection with an automatic withdrawal program from your bank account, brokerage account or other account you hold at a similar financial institution (“Financial Account Plan”) or in connection with a payroll deduction plan (“Payroll Plan”) if:
•  the Financial Account Plan or Payroll Plan was in effect prior to May 4, 2012,
•  no automatic withdrawal program from your Contract is in effect, and
•  your Rider is not in the Settlement Phase.
Additional Purchase Payments will be subject to our prior approval, however, if any of the following apply:
•  you make the payment under a Bank Plan and it exceeds the amount authorized on May 4, 2012 to be withdrawn periodically from your bank account and paid to us as an Additional Purchase Payment; or
•  your Contract Value exceeds $1 million at the time of payment, under either a Bank Plan or Payroll Plan; or
•  your Contract Value is less than $1 million and the Additional Purchase Payment under either a Bank Plan or Payroll Plan would cause your Contract Value to exceed $1 million; or
•  (Qualified Contracts) you make the payment after the later of the first Contract Anniversary following the Rider Date or the Age 65 Contract Anniversary and your total payments after the first Contract Anniversary exceed $100,000.
For Qualified Contracts, we will not accept an Additional Purchase Payment under a Bank Plan or Payroll Plan after the oldest Covered Person becomes age 81.
Approval of Additional Purchase Payment to Prevent Cancellation of Contracts. If (where permitted by state law) we intend to cancel a Contract at the end of any two consecutive Contract Years (three for Contracts issued in New York) in which no Purchase Payments have been made, we will mail notice to you at your last known address to allow you to make the necessary Additional Purchase Payment to keep your Contract in force.
Approval of Other Additional Purchase Payments. There may be circumstances other than as described above where we may approve Additional Purchase Payments for Contracts with GMWB Riders. We may modify, suspend, waive or terminate our restrictions on Additional Purchase Payments at any time. For further information, contact your financial representative or our Annuities Service Center.
Impact of Additional Purchase Payment Restrictions on Increases in Guaranteed Amounts. The restrictions on Additional Purchase Payments described above may prevent you from increasing the amount of any Credits or Step-Ups we would otherwise have applied to the Benefit Base based on Additional Purchase Payments, and may prevent you from increasing the amounts we guarantee under a GMWB Rider as a result of Additional Purchase Payments.
Restrictions on Investment Options Under Guaranteed Minimum Withdrawal Benefit Riders.
If you purchased any of our GMWB Riders, you must invest 100% of your Contract Value at all times in one or more of the Investment Options we make available for these Riders. Under our current rules, you must invest either:
(a)  among the currently available individual Investment Options (see “Available Individual Investment Options” below); or
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(b)  in a manner consistent with any one of the restricted Model Allocations for which you may have been eligible (see “Restricted Model Allocations” below).
Subject to our restrictions on frequent trading:
•  if you are invested in one or more of the available individual Investment Options, you may transfer Contract Value between these Investment Options; or
•  if you are invested in a restricted Model Allocation, you may transfer 100% of your Contract Value from the restricted Model Allocation to one or more of the currently available individual Investment Options.
You may not specify the Investment Option from which you wish to make a withdrawal; withdrawals are taken in accordance with our default procedures described in “V. Description of the Contract – Accumulation Period Provisions – Withdrawals.” We allocate Additional Purchase Payments in accordance with your instructions, subject to the restrictions described herein. All Investment Options may not be available through all distribution partners.
You should consult with your financial representative to assist you in determining whether investing in any individual Investment Option or Model Allocation is suitable for your financial needs and risk tolerance.
Available Individual Investment Options. If you purchased a Contract with a GMWB Rider, we limit the individual Investment Options to which you may allocate your Contract Value. The currently available individual Investment Options invest in the following Portfolios:
•  Lifestyle Balanced Portfolio
•  Lifestyle Conservative Portfolio
•  Lifestyle Growth Portfolio
•  Lifestyle Moderate Portfolio
•  Managed Volatility Balanced Portfolio
•  Managed Volatility Conservative Portfolio
•  Managed Volatility Growth Portfolio
•  Managed Volatility Moderate Portfolio
•  Total Bond Market Trust
•  Ultra Short Term Bond Trust
You may allocate your Contract Value to any combination of these Investment Options and you may also use our DCA program from your selected Source Investment Option, in connection with your selected Investment Options.
Restricted Individual Investment Options. The following individual Investment Options, which may have been available when you purchased a GMWB Rider, are currently restricted (“Restricted Options”):
•  American Asset Allocation Trust
•  Capital Appreciation Value Trust
•  Money Market Trust
If all or a portion of your Contract Value was allocated to one or more of the Restricted Options on the last day it was available, you may continue to allocate Additional Purchase Payments to that Restricted Option, except to the Money Market Investment Option. No additional amounts may be allocated to the Money Market Investment Option. Also, you will not be able to transfer amounts from another Investment Option to any of the Restricted Options. And you will no longer be able to use the Restricted Option if at any point you transfer all of your Contract Value out of that Restricted Option into any of the available individual Investment Options.
We reserve the right to restrict Investment Options in your variable Investment Account at any time. If we restrict an Investment Option, you may not be able to allocate or transfer Additional Purchase Payments (even if the Additional Purchase Payments are not otherwise restricted) or Contract Value into the Restricted Option after the date of the restriction. Any amounts you allocated to an Investment Option before we imposed restrictions will not be affected by such restrictions as long as it remains in that Investment Option.
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For more information regarding these Portfolios, including information relating to their investment objectives, policies and restrictions, and the risks of investing in such Portfolios, please see “IV. General Information about Us, the Separate Accounts and the Portfolios” as well as the prospectuses for the applicable Portfolios. You can obtain a copy of the Portfolios’ prospectuses by contacting the Annuities Service Center shown on the first page of this Prospectus. You should read a Portfolio’s prospectus carefully before investing in the corresponding Variable Investment Option.
Restricted Model Allocations. We do not currently make “Model Allocations” available. If you allocated Contract Value to one of the Model Allocations shown below in the Table of Restricted Model Allocations on or before the last day it was available, you may continue to allocate your Contract Value to that Model Allocation if: (a) you continue to allocate your entire Contract Value, including future Purchase Payments, to that Model Allocation; and (b) you rebalance your entire Contract Value to that Model Allocation on a quarterly basis. You will no longer be able to use that Model Allocation if you transfer your Contract Value to any Investment Option other than as permitted in that Model Allocation.
If you are permitted to use a restricted Model Allocation, you may also continue to use our DCA program from any available DCA Source Investment Option in connection with that restricted Model Allocation. You also authorize us to rebalance your entire Contract Value allocated to that restricted Model Allocation on a quarterly basis to the fixed percentages shown in the table for each Investment Option in that Model Allocation. In addition, you may not make any transfers to other Investment Options except to transfer 100% of your Contract Value to one or more of the available individual Investment Options.
None of the Model Allocations is a fund of funds. We do not actively manage any Model Allocation. Once you invest in a Model Allocation, we will not change the allocation percentages (except to rebalance) or component Portfolios based on changes in investment strategy, market conditions or expectations of future performance. Because a Model Allocation does not change, you should periodically consult with your financial representative to ensure that your selected Model Allocation continues to be appropriate for your needs and circumstances.
Table of Restricted Model Allocations. The following 10 Model Allocations were available with Contracts issued with GMWB Riders issued prior to May 1, 2009, and are restricted as described above. The percentages indicated in the table are the percentage allocations of each Portfolio currently within the Model Allocations.
Restricted Model Allocations:
Model Allocation Name Model Allocation Percentage Portfolio Name
Global Balanced PS
(only available to Global Balanced investors; not available after June 30, 2014) 		30%
25%
25%
20% 		Fundamental Large Cap Value Trust
American International Trust Lifestyle
Balanced Portfolio
Opportunistic Fixed Income Trust
American Global Diversification
(not available after April 30, 2009) 		65%
20%
10%
5% 		American Global Growth Trust
Select Bond Trust
High Yield Trust
Emerging Markets Value Trust
Fundamental Holdings of America
(not available after April 30, 2009) 		35%
25%
25%
15% 		Select Bond Trust
American Growth-Income Trust
American Growth Trust American
International Trust
Global Balanced
(not available after April 30, 2007) 		30%
25%
25%
20% 		Fundamental Large Cap Value Trust
American International Trust
Managed Volatility Balanced Portfolio
Opportunistic Fixed Income Trust
Blue Chip Balanced
(not available after April 30, 2007) 		40%
30%
30% 		Investment Quality Bond Trust
American Growth Trust American
Growth-Income Trust
Value Strategy
(not available after February 10, 2006) 		30%
30%
20%
20% 		Fundamental Large Cap Value Trust
Equity Income Trust
Active Bond Trust
Strategic Income Opportunities Trust
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Model Allocation Name Model Allocation Percentage Portfolio Name
Growth Blend
(not available after February 10, 2006) 		40%
20%
20%
20% 		Blue Chip Growth Trust
American Growth-Income Trust
Active Bond Trust
Strategic Income Opportunities Trust
Core Holdings of America
(not available after August 1, 2005) 		35%
25%
25%
15% 		Active Bond Trust
American Growth Trust
American Growth-Income Trust
American International Trust
Core Solution
(not available after April 30, 2005) 		34%
33%
33% 		Strategic Income Opportunities Trust
Blue Chip Growth Trust
Equity Income Trust
Value Blend
(not available after April 30, 2005) 		40%
20%
20%
20% 		Equity Income Trust
American Growth Trust
Active Bond Trust
Strategic Income Opportunities Trust
Global
(not available after April 30, 2005) 		30%
30%
20%
20% 		Disciplined Value International Trust
Opportunistic Fixed Income Trust
American Growth-Income Trust
Blue Chip Growth Trust
    
A Model Allocation may experience volatility in its investment performance or lose money, depending on the performance of the component Portfolios referenced above. Your investment in the Portfolios will fluctuate and, when redeemed, may be worth more or less than your original investment. For more information regarding each Portfolio that we permit you to invest in through a Model Allocation, including information relating to that Portfolio’s investment objectives, policies and restrictions, and the risks of investing in that Portfolio, please see “IV. General Information about Us, the Separate Accounts and the Portfolios,” as well as the Portfolio’s prospectus. You can obtain a Prospectus containing more complete information on each of the Portfolios by contacting the respective Annuities Service Center shown on the first page of this Prospectus. You should read the Portfolio’s prospectus carefully before investing in the corresponding Investment Option.
Increases in Guaranteed Amounts
We may increase the amounts we guarantee under a GMWB Rider as a result of Additional Purchase Payments that we accept (see “Restrictions on Additional Purchase Payments,” above), Credits and Step-Ups.
Additional Purchase Payments. Additional Purchase Payments, up to specified limits, can increase amounts guaranteed under the GMWB Riders. Our restrictions on Additional Purchase Payments, however, may prevent you from increasing the amounts we guarantee under a GMWB Rider.
Credits. You may be able to increase the amount we guarantee under your GMWB Rider if you defer making withdrawals during the periods described in the Rider.
Step-Ups. If your Contract experiences favorable investment performance while a GMWB Rider is in effect, you may be able to increase the amount we guarantee under your GMWB Rider on certain Anniversary Date(s) of your Contract. Step-Ups may occur only when a Rider is in effect, and before the Settlement Period for that Rider.
We describe Additional Purchase Payments, Credits and Step-Ups in the discussion of each Rider’s features in this Appendix.
Withdrawals, Distributions and Settlements under Guaranteed Minimum Withdrawal Benefit Riders
Overview. Each of our GMWB Riders permits you to withdraw a guaranteed minimum annual amount during the Accumulation Period, subject to the terms and conditions of the specific Rider you elected. We may have determined the amount of the initial guaranteed minimum annual amount after you purchased the Rider, depending on the type of guaranteed minimum withdrawal benefit you purchased.
Our Income Plus For Life® Series Riders and Principal Plus for Life Series Riders permit you to withdraw a guaranteed minimum annual amount (called the “Lifetime Income Amount”) during the Accumulation Period that begins on a Lifetime Income Date and can last for as long as a Covered Person lives. The Lifetime Income Date depends on the age of the Covered Person when we issued your Contract.
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Our Principal Plus, Principal Plus for Life Series Riders and Principal Returns Riders guarantee the return of your Purchase Payments in the Contract, regardless of market performance, as long as you limit your annual withdrawals to a guaranteed minimum amount (called the “Guaranteed Withdrawal Amount”), beginning on the date you purchased the Rider.
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. You may become ineligible for certain Credits, however, if you take withdrawals during the Rider’s Credit Period. We reduce your Contract Value and your death benefit each time you take a withdrawal.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals of more than the amount guaranteed under the terms of the Rider you select.
If you purchased an Income Plus For Life® Series Rider or a Principal Plus for Life Series Rider before the Lifetime Income Date, your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
Please refer to the “Features” section for each Rider for specific information about the amount you are permitted to withdraw without affecting future guaranteed minimum amounts.
Excess Withdrawals may reduce or eliminate future guaranteed minimum withdrawal values.
Pre-authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with a GMWB Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. The Income Made Easy Program allows you to select withdrawals under your Rider in the following ways: (A) the annual guaranteed amount (“full allowable amount”) under your Rider, which automatically increases to reflect an increase in the annual guaranteed amount under the Rider resulting from a Step-Up or an Additional Purchase Payment (where permitted – see “V. Description of the Contract – Accumulation Period Provisions – Purchase Payments”); (B) the full allowable amount and any increases in Contract Value above that amount at the end of a Contract Year resulting from investment gains in your Contract at the end of that Contract Year (this option reduces your ability to obtain Step-Ups after you enroll in the program); (C) the full allowable amount plus any amount under our Life Expectancy Distribution Program that exceeds the full allowable amount; (D) the annual amount under our Life Expectancy Distribution Program (in lieu of the full allowable amount); or (E) a specified dollar amount that is less than the full allowable amount.
Your participation in the Income Made Easy Program will be suspended (i.e., we will not process any further withdrawals under the Program until you reenroll) if:
•  you select option A, B or C above; and
•  you take an additional withdrawal outside the Income Made Easy Program in any Contract Year in which the program is in effect.
Income Made Easy withdrawals, like other withdrawals:
•  may be subject to income tax (including withholding for taxes) and, if your Rider calculates an annual guaranteed amount before you turn age 59½, a 10% penalty tax under the Code;
•  reduce the death benefit and other optional benefits;
•  cancel your eligibility to earn a Credit under the provisions of your GMWB Rider during any Contract Year in which you receive a payment under the program; and
•  may reduce your ability to obtain Step-Ups.
If you are interested in the Income Made Easy Program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in this program. We will, however, suspend your participation in the Income Plan (see “Special Withdrawal Services – The Income Plan” in “V. Description of the Contract”) if you enroll in the Income Made Easy Program.
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. If you purchased a Contract with a GMWB Rider, you may request us in writing, in a form acceptable to us and received at our Annuities Service Center, to pay you
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withdrawals that we determine to be part of a series of substantially equal periodic payments over your “life expectancy” (or, if applicable, the joint life expectancies of you and your Spouse). The Life Expectancy Distribution Program may provide one or more of the following:
•  Pre-59½ Distributions – these are payments made at the request of the Owner that are intended to comply with Code section 72(q)(2)(D) or section 72(t)(2)(A)(iv); or
•  Nonqualified Death Benefit Stretch Distributions – these are payments made to the Beneficiary that are intended to comply with and may not deviate from Code section 72(s)(2); or
•  Required Minimum Distributions and Qualified Death Benefit Stretch Distributions – these are payments we calculate to comply with Code section 401(a)(9), section 403(b)(10), section 408(a)(6), section 408(b)(3), or section 408A(c)(5). For further information on such distributions, please see “VII. Federal Tax Matters – Required Minimum Distributions.”
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. In certain instances, withdrawals under the Life Expectancy Distribution Program may reduce future guaranteed minimum withdrawal values.
If you purchased an Income Plus For Life® Series Rider or a Principal Plus for Life Series Rider before the Lifetime Income Date, and take a withdrawal before the Lifetime Income Date, we may reduce future amounts guaranteed under the Rider. If you take a withdrawal under our Life Expectancy Distribution Program on or after the Lifetime Income Date, however, we do not reduce annual withdrawal amounts under your Rider. Please refer to the “Features” section of this Appendix for more details regarding the effect that withdrawals made after the Lifetime Income Date have on the Rider’s guarantees.
The Life Expectancy Distribution Program ends when certain amounts described in the Rider are depleted to zero, or when the Contract Value is reduced to zero. We may make further distributions as part of the Settlement Phase for the Rider you purchased.
If you are interested in the Life Expectancy Distribution Program, you may obtain further information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in this program. To take withdrawals under the Life Expectancy Distribution Program, you must participate in the Income Plan (see “Special Withdrawal Services – The Income Plan” in “V. Description of the Contract”) or the Income Made Easy Program (see the preceding section).
Under our Life Expectancy Distribution Program, each withdrawal will be in an amount that we determine to be your Contract’s share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Department regulations.
We base our Life Expectancy Distribution calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59½ Distributions, Required Minimum Distributions, Nonqualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with a qualified tax professional.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a GMWB Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. The settlement amount we pay to you, and the frequency of payment available to you, will depend upon the Rider you select. Please refer to the “Features” section of each Rider for more information.
During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a GMWB Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
Additional Annuity Options
In addition to the Annuity Options we provide under the Contract, we provide Annuity Options for Contracts issued with a GMWB Rider (“GMWB Alternate Annuity Options”). These GMWB Alternate Annuity Options are only available for Annuity Commencement Dates no earlier than the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary. These GMWB Alternate Annuity Options are designed so that you will receive annuity payments that are no less than a guaranteed minimum annual withdrawal amount at the time of annuitization, but you
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could receive larger payments, depending on your investment experience prior to annuitization. The Annuity Options available to you are described in detail in “V. Description of the Contract – Pay-out Period Provisions.”
Comparison between Guaranteed Minimum Withdrawal Benefits and Annuity Payments
If you choose to take withdrawals under one of our GMWB Riders, it is not the same as receiving annuity payments upon annuitization (as described in “V. Description of the Contract – Pay-out Period Provisions”).
When you take withdrawals:
•  you have the flexibility to start and stop withdrawals;
•  you have the flexibility to choose an amount of your withdrawal that is less than or equal to your Lifetime Income Amount (without reducing your future available Lifetime Income Amount);
•  you have the ability to surrender your Contract for the cash surrender value (Contract Value minus any applicable charges and premium taxes), if any;
•  you may receive less favorable tax treatment of your withdrawals than annuity payments would provide. See “VII. Federal Tax Matters” for information on tax considerations related to optional benefit Riders; and
•  you reduce the Contract Value available for annuitization.
When you annuitize:
•  you receive annuity payments that are fixed in amount (or in the number of units paid if you choose Variable Annuity payments);
•  your annuity payments do not vary in timing once they commence (for as long as we are due to pay them to you);
•  you no longer have access to the Contract Value; and
•  your Annuity Payments may receive more favorable tax treatment than guaranteed minimum withdrawal benefits. See “VII. Federal Tax Matters” for information on tax considerations related to optional benefit Riders.
Special Considerations on Annuitization. The Contract, with or without a GMWB Rider, does not permit you to make a partial annuitization. You must apply your entire Contract Value to an Annuity Payment Option.
Tax Considerations
Withdrawals may be taxable and may be subject to a 10% penalty tax if made prior to age 59½. See “VII. Federal Tax Matters” for information on tax considerations related to optional benefit Riders.
No Loans under 403(b) Plans. The loan privilege described in the Prospectus for Contracts issued in connection with certain Section 403(b) plans is NOT available if you elected any of our GMWB Riders.
Features of Income Plus For Life 1.11 Series Riders and Income Plus For Life 5.09 Series Riders
Covered Person(s)
The Income Plus For Life® 1.11 Series Riders and Income Plus For Life® 5.09 Series Riders provide a lifetime income guarantee based on a single life (Income Plus For Life® 1.11 and 5.09) or on the lifetime duration of two Covered Persons (Income Plus For Life – Joint Life® 1.11 and 5.09).
IPFL 1.11 and 5.09 Series Rider Benefits
Lifetime Income Amount. Either Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® 1.11 or 5.09) the Covered Person remains alive and is designated as an Owner (or an Annuitant, subject to our underwriting rules) under the Contract; or
•  (for Income Plus For Life – Joint Life® 1.11 or 5.09) either Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant under the Contract.
The Rider terminates upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant.
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We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider on the Lifetime Income Date; by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE (Income Plus For Life® 1.11 or 5.09): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® 1.11 or 5.09): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000).
We increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits, and Step-Ups that we may apply to your Rider’s Benefit Base and/or Benefit Rate increases due to deferral of withdrawals after the Lifetime Income Date. Please see “Increases in Guaranteed Amounts” below for more information.
We reduce the Lifetime Income Amount if you take Excess Withdrawals. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” below for more information.
Lifetime Income Date. The Lifetime Income Amount guarantee starts on a Lifetime Income Date. The earliest Lifetime Income Date is the date you purchased a Rider (the Rider’s “effective date”) if the Covered Person (or the youngest Covered Person for Income Plus For Life – Joint Life® 1.11 or 5.09) would turn age 59½ or older during the first Contract Year.
Otherwise, the Lifetime Income Date in most cases is the Contract Anniversary immediately preceding the date the Covered Person (or youngest Covered Person for Income Plus For Life – Joint Life® 1.11 or 5.09) turns age 59½. The earliest available Lifetime Income Date in effect when we issued the Rider remains in effect for as long as the Rider remains in effect.
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and you took a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” below for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under your Rider, but you may continue to be eligible for Credits and increases in the Benefit Rate, if any, if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time for an Income Plus For Life® 1.11 or 5.09 Series Rider is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase either Rider after the first Contract Year, we may have determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base or could cause you to lose your guaranteed minimum withdrawal benefit. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” below for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
Benefit Rate by Age
Covered Person’s age on the
Contract Anniversary prior to the
first withdrawal after the Lifetime
Income Date 		Income Plus For
Life® 1.11 or 5.09 		Income Plus For
Life – Joint Life® 1.11
or 5.09
59½ – 64 4.00% 3.75%
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Benefit Rate by Age
Covered Person’s age on the
Contract Anniversary prior to the
first withdrawal after the Lifetime
Income Date 		Income Plus For
Life® 1.11 or 5.09 		Income Plus For
Life – Joint Life® 1.11
or 5.09
65 and over 5.00% 4.75%
Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life® 1.11 or 5.09 Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® 1.11 or 5.09 Rider. We will use the Benefit Rate applicable to the age of the Covered Person (youngest Covered Person under IPFL – Joint Life 1.11 or 5.09) on the first withdrawal after the Lifetime Income Date to calculate the initial Lifetime Income Amount.
EXAMPLE: Assume that you purchased a Contract with either the Income Plus For Life® 1.11 or 5.09 Rider when your age was 57 years and 7 months. Your Lifetime Income Date is the first Contract Anniversary because that is the Contract Anniversary before you turn age 59½. If you are age 61 or older at the time you take your first withdrawal after the Lifetime Income Date, we set your Benefit Rate equal to 4%. If you wait until you turn age 65 to take the first withdrawal after the Lifetime Income Date, we set your Benefit Rate equal to 5%.
With the higher Benefit Rate at older ages, if you defer taking withdrawals after the Lifetime Income Date, we will use the Benefit Rate applicable to the age of the Covered Person (youngest Covered Person under Income Plus For Life – Joint Life® 1.11 or 5.09) on the first withdrawal after the Lifetime Income Date.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® 1.11 or 5.09 Series Rider.
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept (see “Restrictions on Additional Purchase Payments,” above), up to a maximum Benefit Base of $5 million.
On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, up to a maximum Benefit Base of $5 million. The new Benefit Base is the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date; or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base;
•  the date of a reduction in the Benefit Base; or
•  the effective date of a Step-Up.
EXAMPLE: Assume you took a withdrawal of $5,000 after the Lifetime Income Date, your current Benefit Base is $100,000, and you make an Additional Purchase Payment of $15,000. Your Benefit Base will increase by $10,000, the excess of the Additional Purchase Payment over the prior withdrawal ($15,000 – $5,000). Your new Benefit Base will equal $110,000. Assume that the following year you take an Excess Withdrawal of $10,000 that reduces your Benefit Base to $105,000. If you then make an Additional Purchase Payment of $10,000, the entire $10,000 will be added to your current Benefit Base, since the Benefit Base was reduced by the previous withdrawal. The new Benefit Base will be $115,000 ($105,000 + $10,000).
Credits. We offered the Income Plus For Life® 1.11 or 5.09 Series Riders with the following Credit features:
•  Annual Credit Rate – 5%
•  Credit Period (for Annual Credits) – The initial Credit Period coincides with the first 10 Contract Years while your Rider is in effect. We will extend the Credit Period each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
Annual Credits. (We may refer to the Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit
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Period if you did not take any withdrawals during the previous Contract Year. The Credit is equal to the applicable Credit Rate multiplied by the total Purchase Payments that have been applied to the Benefit Base. If the Benefit Base has been increased by a Step-Up or decreased as a result of an Excess Withdrawal, the Credit will equal the applicable Credit Rate multiplied by the sum of (a) the Benefit Base immediately following the most recent Step-Up or decrease and (b) the total Additional Purchase Payments applied to the Benefit Base since that Step-Up or decrease.
If you take a withdrawal during a Contract Year, you will not be eligible for a Credit at the end of that Contract Year and Annual Credits for future Contract Years may be reduced, or eliminated, if the withdrawal results in a reduction of the Benefit Base.
EXAMPLE (Income Plus For Life® 1.11 and 5.09): Assume that you purchase a Contract with an Income Plus For Life® 1.11 or 5.09 Rider and you, the Covered Person, will turn age 63 during the first Contract Year. Also assume that you purchase the Contract and Rider for $100,000, you make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years. Based on your age the applicable Annual Credit Rate for those years is 5%. If you take no withdrawals during the first and second Contract Year:
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $105,000 ($100,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,250 (5% × $105,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $110,000 ($105,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,500 (5% × $110,000).
Now assume you take an Excess Withdrawal during the third Contract Year that reduces the Benefit Base to $90,000, and you take no withdrawals and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (5% × ($90,000 + $5,000) = $4,750). The Benefit Base increases to $99,750 ($90,000 + $5,000 + $4,750) and the Lifetime Income Amount increases to $4,988 (5% × $99,750).
EXAMPLE (Income Plus For Life – Joint Life® 1.11 and 5.09): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® 1.11 or 5.09 Rider when the younger Covered Person was age 65, you take no withdrawals during the first and second Contract Years and the applicable Annual Credit Rate is 5%. Also assume that you purchase the Contract and Rider for $100,000, you make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $105,000 ($100,000 + 5% × $100,000). The Lifetime Income Amount increases to $4,988 (4.75% × $105,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $110,000 ($105,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,225 (4.75% × $110,000).
Now assume you take an Excess Withdrawal during the third Contract Year that reduces the Benefit Base to $90,000, and you take no withdrawals and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (5% × ($90,000 + $5,000) = $4,750). The Benefit Base increases to $99,750 ($90,000 + $5,000 + $4,750) and the Lifetime Income Amount increases to $4,738 (4.75% × $99,750).
Step-Ups. The Income Plus For Life® 1.11 and 5.09 Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
How Step-Ups Work. If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Credit) on that date, we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also increase the Lifetime Income Amount (after the Lifetime Income Date) and the dollar amount of
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the Rider fee (see “Rider Fees” earlier in this Appendix). The new Lifetime Income Amount will equal the Benefit Base value after the Step-Up multiplied by the Benefit Rate then in effect for your Rider, and the Rider fee will be based on the increased Benefit Base.
We also reserve the right to increase the rate of the fee for the Income Plus For Life® 5.09 Series Riders, up to a maximum rate of 1.20%, on any Step-Up Date. If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up. If you decline the Step-Up, the fee rate will not be increased.
If you decline an automatic Step-Up, you will have the option to elect to step up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
EXAMPLE. Assume that you purchase a Contract with an Income Plus For Life® 1.11 or 5.09 Rider when you, the Covered Person, are 65, you take no withdrawals during the first three Contract Years and the applicable Annual Credit Rate is 5%. Also assume that you purchase the Contract and Rider for $100,000, you make no Additional Purchase Payments, and the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $115,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $6,250 (5% × $125,000).
Step-Ups may occur only while either the Income Plus For Life® 1.11 or 5.09 Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® 1.11 and 5.09 Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of each Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person (or younger Covered Person in the case of a joint-life Rider) when we issued the Contract and the type of guaranteed minimum withdrawal benefit you purchased. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal.
EXAMPLE: If you take a withdrawal of $8,000 when your Contract Value is $80,000 and your Guaranteed Minimum Death Benefit is $100,000, we reduce your Guaranteed Minimum Death Benefit on a pro rata basis. That means we reduce the Guaranteed Minimum Death Benefit by 10% ($8,000/$80,000) to $90,000 ($100,000 – 10% × $100,000).
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you select. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date; or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
An Excess Withdrawal is:
•  a withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date; or
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•  a withdrawal (including applicable withdrawal charges) you take on or after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges), exceeds the Lifetime Income Amount for that Contract Year.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
After the Lifetime Income Date, we do not consider withdrawals under our Life Expectancy Distribution Program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we generally reduce the Benefit Base on a pro rata basis. This means that we reduce the Benefit Base in the same proportion that your Contract Value is reduced by the Withdrawal Amount. We use a different method if you take a withdrawal under our Life Expectancy Distribution Program (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” below).
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 1.11 or 5.09 Series Rider that names you as the Covered Person when you are 45. Now assume that in the eighth Contract Year, when you are 53, the Contract Value is $80,000, the Benefit Base is $90,000, no withdrawal charges apply under your Contract, and you withdraw $5,000 of Contract Value.
In this case, you reduce your Contract Value by 6.25% (i.e., $5,000/$80,000) and we reduce your Benefit Base by the same percentage ($90,000 × 0.0625, or $5,625). The Benefit Base after the Excess Withdrawal is $90,000 – $5,625, or $84,375.
Note: Withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”).
Withdrawals after the Lifetime Income Date. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal(s) for that Contract Year). If so, we reduce the Benefit Base on a pro rata basis. We do this by reducing your Benefit Base in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal.
Each time we reduce the Benefit Base, we also reduce the Lifetime Income Amount. We do this by multiplying the reduced Benefit Base by the Benefit Rate in effect for your Rider. We also reduce the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
EXAMPLE (Income Plus For Life® 5.09): Assume that you purchase a Contract with an Income Plus For Life® 1.11 or 5.09 Rider. Also assume that when you are age 67, the Contract Value is $100,000, the Benefit Base is $110,000, and the Lifetime Income Amount is $5,500. If you withdraw $10,000, we first reduce your Contract Value by 10% ($10,000/ $100,000) and since this withdrawal is an Excess Withdrawal, we reduce your Benefit Base by the same percentage ($110,000 × .10 = $11,000). The Benefit Base after the Excess Withdrawal is $99,000 ($110,000 – $11,000) and the Lifetime Income Amount is $4,950 (.05 × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® 1.11 or 5.09): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® 1.11 or 5.09 Rider. Also assume that when the younger Covered Person is age 67, the Contract Value is $100,000, the Benefit Base is $110,000, the Lifetime Income Amount is $5,225 and the Benefit Rate is 4.75%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Contract Value by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,703 (4.75% × $99,000).
We do not reduce the Benefit Base and/or the Lifetime Income Amount:
•  if the withdrawals are taken under our Life Expectancy Distribution Program (as opposed to those withdrawals taken prior to the Lifetime Income Date, which do reduce the Benefit Base), or
•  if your total Withdrawal Amounts during a Contract Year are less than or equal to the Lifetime Income Amount.
The Income Plus For Life® 1.11 or 5.09 Series Rider enters the Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the
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Rider, and the Rider will not enter the Settlement Phase, if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. See “Settlement Phase” below. The Rider’s benefit terminates if both the Contract Value and Benefit Base immediately after a withdrawal are equal to zero.
If you take Excess Withdrawals from your Contract, you risk lowering the Lifetime Income Amount guaranteed for future withdrawals, or reducing the availability or amount of future Step-Ups.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® 1.11 or 5.09 Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide income payments for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with these Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. We reduce your Benefit Base proportionally by the amount of the withdrawal if you take a withdrawal under the Life Expectancy Distribution Program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution Program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution Program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® 1.11 or 5.09 Series Rider if your Contract Value reduces to zero and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
The Settlement Phase under an Income Plus For Life® 1.11 or 5.09 Series Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year; and
•  there were no Excess Withdrawals during that Contract Year; and
•  the Benefit Base is still greater than zero at the time.
There is no Settlement Phase under an Income Plus For Life® 1.11 or 5.09 Series Rider if:
•  you take any withdrawal before the earliest available Lifetime Income Date and the Contract Value declines to zero during the Contract Year of the withdrawal; or
•  you take a withdrawal on or after the earliest available Lifetime Income Date that is an Excess Withdrawal and the Contract Value declines to zero during the Contract Year of the withdrawal.
You will lose the ability to receive Lifetime Income Amounts if you withdraw more than the Lifetime Income Amount during a Contract Year and the Contract Value then declines to zero in that same Contract Year.
The settlement amount we pay to you under the Rider varies:
•  If the Settlement Phase begins after the Lifetime Income Date, at the start of the Settlement Phase we pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as a Covered Person is living.
•  If the Settlement Phase begins before the Lifetime Income Date, we begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount equals the Lifetime Income Amount (i.e., the Benefit Base at the Lifetime Income Date multiplied by the Benefit Rate then in effect).
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•  In lieu of annual payments of the settlement amount, we permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
Impact of Death Benefits
Our Income Plus For Life® 1.11 or 5.09 Series Riders end if (a) a death benefit becomes payable during the Accumulation Period (but before the Settlement Phase under the Rider), and (b) the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum. In cases where the Rider continues, we determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Income Plus For Life® 1.11 and 5.09. If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® 1.11 and 5.09:
1. Not the Covered Person - may continue if the Beneficiary elects to continue the Contract. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal the Benefit Rate then in effect multiplied by the recalculated Benefit Base and assess the Rider fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal depletes the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credits and Step-Ups, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Beneficiary to opt out of any increase in the Benefit Base (reflecting the initial death benefit or any future Step-Ups) if at the time of the increase we also increase the rate of the Rider fee.
2. The Covered Person - ends without any further benefit.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® 1.11 or 5.09 Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments.
The entire interest must be distributed within five years of the Owner’s death, except in the case where the Beneficiary is an individual. In that case, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. We continue to assess the mortality and expense risks charge during this period, even though we bear only the expense risk and not any mortality risk (see “VI. Charges and Deductions – Mortality and Expense Risks Fee”).
Income Plus For Life – Joint Life® 1.11 and 5.09. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® 1.11 or 5.09 Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary or (c) a Qualified Plan is the non-Spousal Beneficiary and the surviving Covered Person is a Spouse of the deceased Owner. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups).
If the Rider continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue periodic distributions under the Contract in lieu of receiving the Contract’s death benefit as a lump sum, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract
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continues, the Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Rider fee (see “Rider Fees” earlier in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value only to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® 1.11 or 5.09 Rider is in effect, we will reduce the Lifetime Income Amount to zero and we make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider. If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Death Benefits during the Settlement Phase. If death occurs during an Income Plus For Life – Joint Life® 1.11 or 5.09 Rider’s Settlement Phase, the only death benefit we provide is the remaining settlement payments that may become due under that Rider. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the later of the Lifetime Income Date or the date we receive notice of the death of the first Covered Person. Settlement payments will equal the Lifetime Income Amount. We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Termination of Rider
You may not terminate an Income Plus For Life® 1.11 or 5.09 Series Rider once it is in effect. However, an Income Plus For Life® 1.11 or 5.09 Series Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
•  the date the Contract Value and the Benefit Base both equal zero;
•  (for Income Plus For Life® 1.11 and 5.09) the death or removal of the Covered Person;
•  (for Income Plus For Life – Joint Life® 1.11 and 5.09) the death or removal of the last Covered Person remaining under the Rider;
•  the date a new GMWB Rider becomes effective under any exchange program that we may make available; or
•  termination of the Contract.
Features of Income Plus For Life® 12.08 Series Riders
Form of Guaranteed Amounts
The Income Plus For Life® 12.08 Series provides a lifetime income guarantee based on a single life (Income Plus For Life® 12.08) or on the lifetime durations of two Covered Persons (Income Plus For Life –Joint Life® 12.08).
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IPFL 12.08 Series Rider Benefits
Lifetime Income Amount. The Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® 12.08) the Covered Person remains alive and is designated as an Owner (or an Annuitant, subject to our underwriting rules) under the Contract; or
•  (for Income Plus For Life – Joint Life® 12.08) either Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant under the Contract.
The Rider terminates upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5% for Income Plus For Life® 12.08 and 4.75% (4.50% in New York) for Income Plus For Life – Joint Life® 12.08); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE (Income Plus For Life® 12.08): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® 12.08): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000). In New York, if the Benefit Rate is 4.50%, the Lifetime Income Amount is $4,500 (4.50% × $100,000).
The maximum Lifetime Income Amount for an Income Plus For Life® 12.08 Rider is $250,000. The maximum Lifetime Income Amount for an Income Plus For Life Joint – Life® 12.08 Rider is $237,500 ($225,000 in New York). We calculate a lower Lifetime Income Amount under the Income Plus For Life – Joint Life® 12.08 Rider because we provide our guarantee over the lifetimes of two Covered Persons under that Rider.
We reduce the Lifetime Income Amount if you take Excess Withdrawals. Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits and Step-Ups that we may apply to your Rider’s Benefit Base and/or Benefit Rate increases due to deferral of withdrawals after the Lifetime Income Date. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Lifetime Income Date. The Lifetime Income Amount guarantee starts on a Lifetime Income Date. This is the date you purchased the Rider if:
•  (for Income Plus For Life® 12.08) you were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date you turn age 58½ (age 61 in NY).
•  (for Income Plus For Life – Joint Life® 12.08) both you and your Spouse were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date the younger Spouse would turn age 58½ (age 61 in NY). (The Lifetime Income Date does not change if the younger Spouse does not survive to this date and the older Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and you take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” below for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under your Rider, but you may continue to be eligible for Credits and increases in the Benefit Rate, if any, if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
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Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase the Rider after the first Contract Year, we determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
•  Income Plus For Life® 12.08 – 5%
•  Income Plus For Life – Joint Life® 12.08 – 4.75% (4.50% in New York).
Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life® 12.08 Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® 12.08 Rider. We will use the Benefit Rate applicable to the age of the Covered Person (youngest Covered Person under IPFL – Joint Life 12.08) on the first withdrawal after the Lifetime Income Date to calculate the initial Lifetime Income Amount.
EXAMPLE: Assume that you purchased a Contract with the Income Plus For Life® 12.08 Rider when your age was 57 years and 7 months. Your Lifetime Income Date is the first Contract Anniversary since that is the Contract Anniversary before you turn age 59½. If you are age 61 or older at the time you take your first withdrawal after the Lifetime Income Date, we set your Benefit Rate equal to 4%. If you wait until you turn age 65 to take the first withdrawal after the Lifetime Income Date, we set your Benefit Rate equal to 5%.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® 12.08 Series Rider (see “Restrictions on Additional Purchase Payments,” above).
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept, subject to the maximum Benefit Base limit of $5 million. On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, subject to the maximum Benefit Base limit of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base,
•  the date of a reduction in the Benefit Base, or
•  the effective date of a Step-Up.
EXAMPLE: Assume you took a withdrawal of $5,000 after the Lifetime Income Date, your current Benefit Base is $100,000, and you make an Additional Purchase Payment of $15,000. Your Benefit Base will increase by $10,000, the excess of the Additional Purchase Payment over the prior withdrawal ($15,000 – $5,000). Your new Benefit Base will equal $110,000. Assume that the following year you take an excess withdrawal of $10,000 that reduces your Benefit Base to $105,000. If you then make an Additional Purchase Payment of $10,000, the entire $10,000 will be added to your current Benefit Base, because the Benefit Base was reduced by the previous withdrawal. The new Benefit Base will be $115,000 ($105,000 + $10,000).
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Credits. The Income Plus For Life® 12.08 Series Riders provide the following Credit features:
•  Annual Credit Rate
•  For Contracts issued outside of New York, each time you qualify, we will increase the Benefit Base by a Lifetime Income Credit equal to:
•  7% of total Purchase Payments to your Contract if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up or reduction, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  For Contracts issued in New York with Income Plus For Life® 12.08, the Credit will be equal to:
•  6% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  6% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  During the Lifetime Income Credit Period, if you take no withdrawals in a Contract Year that begins on or after you turn age 61, the Credit Rate on the following Contract Anniversary will be 7%.
•  For Contracts issued in New York with Income Plus For Life – Joint Life® 12.08, there is no Credit payable for Contract Years up to and including the Contract Year when the younger of you or your Spouse turns age 61. If you take no withdrawals in a Contract Year that begins on or after the date that the younger of you or your Spouse turns age 61, the Credit on the following Contract Anniversary will equal:
•  7% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  Credit Period (for Annual Credits) for Income Plus For Life® 12.08 and Income Plus For Life – Joint Life® 12.08 (except in New York) – The initial Credit Period coincides with the first 10 Contract Years while the Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Credit Period (for Annual Credits) for Income Plus For Life – Joint Life® 12.08 (in New York) – The initial Credit Period coincides with the first 10 Contract Years, starting on the Contract Anniversary after the youngest Covered Person turns age 61, while the Income Plus For Life – Joint Life® 12.08 Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Ten Year Credit Rate – See “Ten Year Credit” below for a description of the rate we use to calculate a Ten Year Credit.
•  Ten Year Credit Period – The Credit Period for the Ten Year Credit ends on a “Target Date” that coincides with the 10th Contract Anniversary after the effective date of the Income Plus For Life® 12.08 Rider.
Annual Credits. (We may refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits if you take no withdrawals during the previous Contract Year. The Credit is equal to the applicable Credit Rate multiplied by the total Purchase Payments that have been applied to the Benefit Base. If the Benefit Base has been increased by a Step-Up or decreased as a result of an Excess Withdrawal, the Credit will equal the applicable Credit Rate multiplied by the sum of (a) the Benefit Base immediately following the most recent Step-Up or decrease and (b) the total Additional Purchase Payments applied to the Benefit Base since that Step-Up or decrease.
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Each time you qualify, we will increase the Benefit Base by an annual Credit equal to:
•  the sum of total Purchase Payments to your Contract multiplied by the Annual Credit Rate if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  the Benefit Base immediately after the latest Step-Up or reduction multiplied by the Annual Credit Rate, and increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. We will not decrease the Annual Credit as a result of a Step-Up and will not increase the Annual Credit as a result of a reduction in the Benefit Base.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 12.08 Rider when you, the Covered Person, are 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit Rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we will apply an Annual Credit to the Benefit Base and increase it to $107,000 ($100,000 + 7% × $100,000). The Lifetime Income Amount will increase to $5,350 (5% × $107,000).
•  At the end of the second Contract Year, we will apply an Annual Credit to the Benefit Base and increase it again to $114,000 ($107,000 + 7% × $100,000). The Lifetime Income Amount will increase to $5,700 (5% × $114,000).
Now assume you take an Excess Withdrawal during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawals and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (7% × ($100,000 + $5,000) = $7,350). The Benefit Base increases to $112,350 ($100,000 + $5,000 + $7,350) and the Lifetime Income Amount increases to $5,618 (5% × $112,350).
Ten Year Credit (not available with NY Income Plus For Life® 12.08). (We may refer to the Ten Year Credit as a “Target Amount adjustment” in your Rider and in our communications.) The Ten Year Credit provides the equivalent of the first 10 Annual Credits, assuming you receive no Step-Ups, take no withdrawals of Contract Value and make no Additional Purchase Payments for 10 Contract Years following purchase of an Income Plus For Life® 12.08 Rider. (In that case, the Ten Year Credit does not provide amounts in addition to these cumulative Annual Credits.)
If you take a withdrawal prior to the Target Date, we reduce the Target Amount on a pro rata basis, and we do not apply an Annual Credit for that year. If you continue to take withdrawals prior to the Target Date, we may reduce any remaining Target Amount to zero. If you anticipate the need for liquidity during the first 10 Contract Years, you should only have purchased an Income Plus For Life® 12.08 Rider based on the value of its other features.
At the end of the Ten Year Credit Period, we calculate and, to the extent necessary, apply a Credit so that the Benefit Base equals the greater of:
•  the Benefit Base immediately preceding the Target Date, as increased by any Annual Credit or Step-Up for the Contract Year ending on the Target Date; or
•  the Target Amount.
The Target Amount is 170% of all “Adjusted Purchase Payments” made in the first Contract Year after you purchased the Rider plus 100% of all subsequent “Adjusted Purchase Payments” you make (subject to our Purchase Payment limits) up to the Target Date.
“Adjusted Purchase Payments” for these purposes means the total amount of Purchase Payments you make, subject to our Purchase Payment limits, reduced by any withdrawals you may have made. Each time you take a withdrawal, we deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the total amount of Purchase Payments you have made, up to and including the date of the withdrawal. We do this by reducing your Adjusted Purchase Payments in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal. We reduce the Target Amount if you take any withdrawals under your Contract from the effective date of the Income Plus For Life® 12.08 Rider until the applicable Target Date. We increase the Target Amount to reflect Additional Purchase Payments during that period.
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We apply Annual Credits on your Contract Anniversaries if you have taken no withdrawals during the preceding Contract Year. For additional details on how we calculate the Annual Credit, please see the Example above.
The Ten Year Credit provides the equivalent of the first 10 Annual Credits, assuming you receive no Step-Ups, take no withdrawals of Contract Value and make no Additional Purchase Payments during the Ten Year Credit Period. We do not apply any Annual Credit or Ten Year Credit to the extent it increases the Benefit Base to an amount in excess of $5 million.
Step-Ups. The Income Plus For Life® 12.08 Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
How Step-Ups Work. If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Credit) on that date, we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also increase the Lifetime Income Amount (after the Lifetime Income Date) and the dollar amount of the Rider fee (see “Rider Fees” earlier in this Appendix). The new Lifetime Income Amount will equal 5% of the Benefit Base value after the Step-Up (4.75% for Income Plus For Life – Joint Life® 12.08 Riders outside New York; 4.5% in New York), and the Rider fee will be based on the increased Benefit Base. We also reserve the right to increase the rate of the Income Plus For Life® 12.08 Rider fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up. If you decline the Step-Up, the fee rate will not be increased.
Impact of Step-Ups on Credit Period. Each time a Step-Up occurs, we extend the Credit Period for Annual Credits to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
Declination of Step-Ups. If you decline an automatic Step-Up, you have the option to elect to step up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we thereafter resume automatic Step-Ups.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 12.08 Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit Rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and that the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $121,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $8,750 (7% × $125,000).
Step-Ups may occur only while the Income Plus For Life® 12.08 Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® 12.08 Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Death Benefit During Accumulation Period” in “V. Description of the Contract”). We may reduce
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the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you select. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
For the Income Plus For Life® 12.08 Series Riders, an Excess Withdrawal is:
•  a withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date, or
•  a withdrawal (including applicable withdrawal charges) you take on and after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal.
After the Lifetime Income Date, we do not consider withdrawals under our Life Expectancy Distribution Program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we generally reduce the Benefit Base on a pro rata basis. This means that we reduce the Benefit Base in the same proportion that your Contract Value is reduced by the Withdrawal Amount. We use a different method if you take a withdrawal under our Life Expectancy Distribution Program.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 12.08 Series Rider that names you as the Covered Person when you are 45. (Since you are under age 58½, or 61 in New York, at time of purchase, the Lifetime Income Date will not coincide with the Rider’s effective date.) Now assume that in the eighth Contract Year, when you are 53, the Contract Value is $80,000, the Benefit Base is $90,000, no withdrawal charges apply under your Contract and you withdraw $5,000 of Contract Value.
In this case, you reduce your Contract Value by 6.25% (i.e., $5,000/$80,000) and we reduce your Benefit Base by the same percentage ($90,000 × 0.0625, or $5,625). The Benefit Base after the Excess Withdrawal is $90,000 – $5,625, or $84,375.
Note: withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”).
Withdrawals after the Lifetime Income Date. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal(s) for that Contract Year). If so, we reduce the Benefit Base on a pro rata basis. We do this by reducing your Benefit Base in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal that resulted in an Excess Withdrawal.
Each time we reduce the Benefit Base, we also reduce the Lifetime Income Amount to equal 5% of the new Benefit Base. We also reduce the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
EXAMPLE (Income Plus For Life® 12.08): Assume that you purchase a Contract with an Income Plus For Life® 12.08 Rider. Also assume that when you are age 62, the Contract Value is $100,000, the Benefit Base is $110,000, and the Lifetime Income Amount is $5,500. If you withdraw $10,000, we first reduce your Contract Value by 10% ($10,000/$100,000) and since this withdrawal is an Excess Withdrawal we reduce your Benefit Base by the same percentage ($110,000 × .10 =
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$11,000). The Benefit Base after the Excess Withdrawal is $99,000 ($110,000 – $11,000) and the Lifetime Income Amount is $4,950 (.05 × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® 12.08): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® 12.08 Rider. Also assume that when the younger Covered Person is age 62, the Contract Value is $100,000, the Benefit Base is $110,000, the Lifetime Income Amount is $5,225 and the Benefit Rate is 4.75%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,703 (4.75% × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® 12.08 in New York): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® 12.08 Rider in New York. Also assume that when the younger Covered Person is age 62, the Contract Value is $100,000, the Benefit Base is $110,000, the Lifetime Income Amount is $4,950 and the Benefit Rate is 4.50%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,455 (4.50% × $99,000).
We do not reduce the Benefit Base and/or the Lifetime Income Amount:
•  if the withdrawals are taken under our Life Expectancy Distribution Program (as opposed to those withdrawals taken prior to the Lifetime Income Date, which do reduce the Benefit Base), or
•  if your total Withdrawal Amounts during a Contract Year are less than or equal to the Lifetime Income Amount.
The Income Plus For Life® 12.08 Series Riders enter a Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Rider, and the Rider will not enter the Settlement Phase, if Contract Value declines to zero during the Contract Year of the Excess Withdrawal (see “Settlement Phase” in this section, below). The Income Plus For Life® 12.08 benefit terminates if both the Contract Value and Benefit Base immediately after a withdrawal are equal to zero.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® 12.08 Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Income Plus For Life® 12.08 Series Riders (see the “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. We reduce the Benefit Base by the amount of the withdrawal if you take a withdrawal under our Life Expectancy Distribution Program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution Program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution Program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® 12.08 Series Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year; and
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•  there were no Excess Withdrawals during that Contract Year; and
•  the Benefit Base is still greater than zero at the time.
There is no Settlement Phase under an Income Plus For Life® 12.08 Series Rider if:
•  you take any withdrawal before the earliest available Lifetime Income Date and the Contract Value declines to zero during the Contract Year of the withdrawal; or
•  you take a withdrawal on or after the earliest available Lifetime Income Date that is an Excess Withdrawal and the Contract Value declines to zero during the Contract Year of the withdrawal.
The settlement amount we pay to you under the Rider varies:
•  If you enter the Settlement Phase after the Lifetime Income Date, at the start of the Settlement Phase we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living.
•  If you enter the Settlement Phase before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 5% of the Benefit Base at the Lifetime Income Date).
•  In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
Impact of Death Benefits
Income Plus For Life® 12.08. If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® 12.08:
1. Not the Covered Person - may continue if the Beneficiary elects to continue the Contract within the time we permit under our administrative rules. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and assess the Rider Fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal depletes the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credit amounts and Step-Ups, and a Target Amount adjustment, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-Ups if we increase the rate of the Income Plus For Life® 12.08 fee at that time.
2. The Covered Person - ends without any further benefit.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® 12.08 Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is an individual, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Income Plus For Life – Joint Life® 12.08. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® 12.08 Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary; or (c) the surviving Covered Person is a Spouse of the deceased Owner and a tax-qualified retirement plan is the non-Spousal Beneficiary. If the death benefit is greater than the Contract Value, we will
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increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups).
If the Rider continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Income Plus For Life – Joint Life® 12.08 Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus For Life – Joint Life® 12.08 Rider fee (see “Rider Fees – Fee for Income Plus For Life® 12.08 Series Riders” earlier in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a withdrawal for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus For Life – Joint Life® 12.08 Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® 12.08 Rider is in effect we will reduce the Lifetime Income Amount to zero and we make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider. If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Death Benefits during the Settlement Phase. If death occurs during an Income Plus For Life – Joint Life® 12.08 Rider’s Settlement Phase, the only death benefit we provide is the remaining settlement payments that may become due under that Rider. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. Settlement payments will equal the Lifetime Income Amount. We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Termination of Rider
You may not terminate an Income Plus For Life® 12.08 Series Rider once it is in effect. However, an Income Plus For Life® 12.08 Series Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
•  the date the Contract Value and the Benefit Base both equal zero;
•  (for Income Plus For Life® 12.08) the death or removal of the Covered Person;
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•  (for Income Plus For Life – Joint Life® 12.08) the death or removal of the last Covered Person remaining under the Rider;
•  the date a new GMWB Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
Features of Income Plus For Life® (Quarterly Step-Up Review) Series Riders
Income Plus For Life® (Quarterly Step-Up Review) Series Definitions
The following definitions apply only to the Income Plus For Life® (Quarterly Step-Up Review) Series Riders.
Age 59 Contract Anniversary means the Contract Anniversary on, or next following, the date:
•  the Covered Person turns age 59 under an Income Plus For Life® (Quarterly Step-Up Review) Rider; or
•  the younger Covered Person turns age 59 under an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider.
Adjusted Step-Up Value: We establish tentative Step-Up values on each “Interim Review Date” (defined below) during a Contract Year, adjusted to reflect any Excess Withdrawals and Additional Purchase Payments made from the Interim Review Date to the end of that Contract Year. Then, at the end of the Contract Year, we compare each of the tentative Step-Up values (as adjusted above) for that Contract Year and select the highest Adjusted Step-Up Value. If the highest Adjusted Step-Up Value is higher than your Benefit Base (including any Credits, if applicable) on the Contract Anniversary, we will increase the Benefit Base to equal the highest Adjusted Step-Up Value.
Interim Review Date: Each of the quarterly dates on which we compare the Rider’s Benefit Base to the Contract Value during a Contract Year, up to and including the Age 95 Contract Anniversary while the Rider is in effect.
Form of Guaranteed Amounts
The Income Plus For Life® (Quarterly Step-Up Review) Series Riders provide a lifetime income guarantee based on a single life (Income Plus For Life® (Quarterly Step-Up Review)) or on the lifetime durations of two Covered Persons (Income Plus For Life – Joint Life® (Quarterly Step-Up Review)).
IPFL (Quarterly Step-Up Review) Benefits
Lifetime Income Amount. The Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® (Quarterly Step-Up Review)): the Covered Person remains alive and is designated as an Owner (or an Annuitant, subject to our underwriting rules) under the Contract, or
•  (for Income Plus For Life – Joint Life® (Quarterly Step-Up Review)): either Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant under the Contract.
The Rider terminates upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5% for Income Plus For Life® (Quarterly Step-Up Review), 4.75% for Income Plus For Life – Joint Life® (Quarterly Step-Up Review) and 4.50% for New York Income Plus For Life – Joint Life® (Quarterly Step-Up Review)); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
The maximum Lifetime Income Amount for an Income Plus For Life® (Quarterly Step-Up Review) Rider is $250,000. The maximum Lifetime Income Amount for an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider is $237,500 ($225,000 in New York). We calculate a lower Lifetime Income Amount under the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider because we provide our guarantee over the lifetimes of two Covered Persons under that Rider.
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EXAMPLE (Income Plus For Life® (Quarterly Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® (Quarterly Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000). In New York, if the Benefit Rate is 4.50%, the Lifetime Income Amount is $4,500 (4.50% × $100,000).
We reduce the Lifetime Income Amount if you take Excess Withdrawals. Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits and Step-Ups that we may apply to your Rider’s Benefit Base and/or Benefit Rate increases due to deferral of withdrawals after the Lifetime Income Date. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Lifetime Income Date. The Lifetime Income Amount guarantee starts on a Lifetime Income Date. This is the date you purchased the Rider if:
•  (for Income Plus For Life® (Quarterly Step-Up Review)) you were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date you turn age 58½ (age 61 in New York).
•  (for Income Plus For Life – Joint Life® (Quarterly Step-Up Review)) both you and your Spouse were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date the younger Spouse would turn age 58½ (age 61 in New York). (The Lifetime Income Date does not change if the younger Spouse does not survive to this date and the older Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and you take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under the Rider, but you may continue to be eligible for Credits and Step-Ups if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase the Rider after the first Contract Year, we may have determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
•  Income Plus For Life® (Quarterly Step-Up Review) – 5%
•  Income Plus For Life – Joint Life® (Quarterly Step-Up Review) – 4.75% (4.50% in New York).
Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® (Quarterly Step-Up Review) Rider.
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Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® (Quarterly Step-Up Review) Series Rider (see “Restrictions on Additional Purchase Payments,” above).
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept, subject to the maximum Benefit Base limit of $5 million.
On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, up to the maximum Benefit Base of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date; or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base;
•  the date of a reduction in the Benefit Base; or
•  the effective date of a Step-Up.
EXAMPLE: Assume you took a withdrawal of $5,000 after the Lifetime Income Date, your current Benefit Base is $100,000, and you make an Additional Purchase Payment of $15,000. Your Benefit Base will increase by $10,000, the excess of the Additional Purchase Payment over the prior withdrawal ($15,000 – $5,000). Your new Benefit Base will equal $110,000. Assume that the following year you take an excess withdrawal of $10,000 that reduces your Benefit Base to $105,000. If you then make an Additional Purchase Payment of $10,000, the entire $10,000 will be added to your current Benefit Base, since the Benefit Base was reduced by the previous withdrawal. The new Benefit Base will be $115,000 ($105,000 + $10,000).
Credits. The Income Plus For Life® (Quarterly Step-Up Review) Rider provides the following Credit features:
•  Annual Credit Rate –
•  For Contracts issued outside of New York, each time you qualify, we will increase the Benefit Base by a Lifetime Income Credit equal to:
•  7% of total Purchase Payments to your Contract if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up or reduction, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  For Contracts issued in New York with Income Plus For Life® (Quarterly Step-Up Review), the Credit will be equal to:
•  6% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  6% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  During the Lifetime Income Credit Period, if you take no withdrawals in a Contract Year that begins on or after you turn age 61, the Annual Credit Rate on the following Contract Anniversary will be 7%.
•  For Contracts issued in New York with Income Plus For Life – Joint Life® (Quarterly Step-Up Review), there is no Credit payable for Contract Years up to and including the Contract Year when the younger of you or your Spouse turns age 61. If you take no withdrawals in a Contract Year that begins on or after the younger of you or your Spouse turns age 61, the Credit on the following Contract Anniversary will equal:
•  7% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
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•  7% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  Credit Period (for Annual Credits) for Income Plus For Life® (Quarterly Step-Up Review) and Income Plus For Life – Joint Life® (Quarterly Step-Up Review) (except in New York) – The initial Credit Period coincides with the first 10 Contract Years while the Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Credit Period (for Annual Credits) for Income Plus For Life – Joint Life® (Quarterly Step-Up Review) (in New York) – The initial Credit Period coincides with the first 10 Contract Years, starting on the Contract Anniversary after the youngest Covered Person turns age 61, while the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Ten Year Credit Rate – See “Ten Year Credit” below for a description of the rate we use to calculate a Ten Year Credit.
•  Ten Year Credit Period – The Credit Period for the Ten Year Credit ends on a “Target Date” that coincides with the 10th Contract Anniversary after the effective date of the Income Plus For Life® (Quarterly Step-Up Review) Rider.
Annual Credits. (We refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits, provided you take no withdrawals during the previous Contract Year.
Each time you qualify, we increase the Benefit Base by an Annual Credit equal to:
•  the sum of total Purchase Payments to your Contract multiplied by the Annual Credit Rate if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  the Benefit Base immediately after the latest Step-Up or reduction multiplied by the Annual Credit Rate, and increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. We do not decrease the Annual Credit as a result of a Step-Up and do not increase the Annual Credit as a result of a reduction in the Benefit Base.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit Rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $107,000 ($100,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,350 (5% × $107,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $114,000 ($107,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,700 (5% × $114,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawal and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you take a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (7% × ($100,000 + $5,000) = $7,350). The Benefit Base increases to $112,350 ($100,000 + $5,000 + $7,350) and the Lifetime Income Amount increases to $5,618 (5% × $112,350).
    
We apply Annual Credits on your Contract Anniversaries if you have taken no withdrawals during the preceding Contract Year. For additional details on how we calculate the Annual Credit, please see the Example above.
We do not apply any Annual Credit to the extent it would increase the Benefit Base to an amount in excess of $5 million.
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Ten Year Credit. (not available with NY Income Plus For Life – Joint Life® (Quarterly Step-Up Review)) (We may refer to the Ten Year Credit as a “Target Amount adjustment” in your Rider and in our communications.) At the end of the Ten Year Credit Period, we make a calculation and, to the extent necessary, apply a Credit so that the Benefit Base will equal the greater of:
•  the current Benefit Base, as increased by any Annual Credit or Step-Up for the Contract Year ending on the Target Date; or
•  the “Target Amount”(see below).
The “Ten Year Credit Period” will exceed ten Contract Years if you purchased this Rider before a Covered Person turned age 59.
The Target Amount is the greater of:
•  200% of all “Adjusted Purchase Payments” (see below) made in the first Contract Year after you purchased the Rider plus 100% of all subsequent Adjusted Purchase Payments you make until the Target Date (subject to our Purchase Payment limits); or
•  the highest Target Value.
In no event, however, will we set a Target Amount in excess of $5 million.
Adjusted Purchase Payments, for these purposes, means the total amount of Purchase Payments you make, subject to our Purchase Payment limits, reduced by any withdrawals you may have made. Each time you take a withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the total amount of Purchase Payments you have made up to, and including, the date of the withdrawal. We do this by reducing your Adjusted Purchase Payments in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal.
We calculate a Target Value for each Contract Year up to the Age 59 Contract Anniversary. Target Value, for these purposes, means 200% of your Contract Value as of any Interim Review Date (up to the Age 59 Contract Anniversary), plus 100% of Purchase Payments you may have made since that Contract Anniversary, minus a pro rata reduction for any Withdrawal Amounts you may have taken since that Contract Anniversary. We do not calculate a Target Value for any Contract Year following the Age 59 Contract Anniversary.
We reduce the Target Amount if you take any withdrawals under your Contract from the effective date of the Income Plus For Life® (Quarterly Step-Up Review) Rider until the end of the Ten Year Credit Period. We increase the Target Amount to reflect Additional Purchase Payments during that period and, in some cases, we also increase the Target Amount to reflect favorable investment performance.
EXAMPLE: Assume a Contract (single life or joint life) is purchased at age 55 with an initial Purchase Payment of $100,000, there is an Additional Purchase Payment of $25,000 in the second Contract Year, and the highest Contract Value on any Interim Review Date prior to the Age 59 Contract Anniversary is $140,000 in the 4th Contract Year. The Target Amount is the greater of:
•  (200% × $100,000) + (100% × $25,000) = $225,000; or
•  200% × $140,000 = $280,000.
    
The Target Amount adjustment can provide higher lifetime income than you would otherwise achieve under this Rider. The Target Amount adjustment provides its greatest benefit if you wait until the Target Date to take your first withdrawal. If you take a withdrawal prior to the Target Date, we will reduce the Target Amount and it will not be of as much value to you. If you continue to take withdrawals prior to the Target Date, we may reduce any remaining Target Amount to zero.
Step-Ups. The Income Plus For Life® (Quarterly Step-Up Review) Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
How Step-Ups Work. We schedule Step-Up Dates starting on the first Contract Anniversary following your purchase of the Rider and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary.
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On each Step-Up Date, we compare the Benefit Base (including any applicable Annual Credit) to:
•  the Contract Value on that date; and
•  the Adjusted Step-Up Value for each Interim Review Date during the immediately preceding Contract Year.
If the Contract Value or any such Adjusted Step-Up Value on any Step-Up Date is greater than the Benefit Base (including any Annual Credit) on that date, we will automatically step up the Benefit Base to equal the greater of:
•  the Contract Value on the Contract Anniversary; or
•  the highest Adjusted Step-Up Value for any Interim Review Date, during the immediately preceding Contract Year.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit Rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and that the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $121,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% ×$125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $8,750 (7% × $125,000).
In no event, however, would we increase the Benefit Base to exceed $5 million. If we increase the Benefit Base on any Step-Up Date (after the Lifetime Income Date), we also increase the Lifetime Income Amount. The new Lifetime Income Amount equals the Benefit Rate multiplied by the new Benefit Base value after the Step-Up.
Interim Review Dates and Adjusted Step-Up Values. Under each of our Income Plus For Life® (Quarterly Step-Up Review) Series Riders, we compare the Rider’s Benefit Base to the Contract Value on a quarterly basis during each Contract Year, up to and including the Age 95 Contract Anniversary while the Rider is in effect. We call each of these dates an “Interim Review Date.”
If the Benefit Base is less than the Contract Value on any Interim Review Date, we establish a tentative Step-Up value for that date. We reduce each tentative Step-Up value on a pro rata basis to reflect any Excess Withdrawals you may have taken from the Interim Review Date to the end of that Contract Year. We increase each tentative Step-Up value by any Additional Purchase Payments (and reduce by any withdrawals) you may have made from the Interim Review Date to the end of that Contract Year. Then, at the end of the Contract Year, we compare each of the tentative Step-Up values, as adjusted to reflect Excess Withdrawals and Additional Purchase Payments (“Adjusted Step-Up Value”), for that Contract Year and select the highest Adjusted Step-Up Value. If the highest Adjusted Step-Up Value is higher than your Benefit Base (including any Credits, if applicable) on the Contract Anniversary, we will increase the Benefit Base to equal the highest Adjusted Step-Up Value.
EXAMPLE: Assume your Benefit Base at the beginning of Contract Year 2 is $100,000 and you make no Additional Purchase Payments during that year. Also assume the highest Adjusted Step-Up Value on an Interim Review Date is at the end of 6 months, when your Contract Value is $110,000. Finally, assume that you take no withdrawals during Contract Year 2 and your Contract Value at the end of the year is $105,000.
Under these assumptions for a single-life Income Plus For Life® (Quarterly Step-Up Review) Rider, we increase your Benefit Base, but not your Contract Value, to $110,000 at the end of Contract Year 2. We also increase your annual Lifetime Income Amount from $5,000 (5% of $100,000) to $5,500 (5% of $110,000). Your Contract Value equals $105,000 at the end of Contract Year 2.
Under these assumptions for an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider, we increase your Benefit Base, but not your Contract Value, to $110,000 at the end of Contract Year 2. For non-New York Contracts, we also increase your annual Lifetime Income Amount from $4,750 (4.75% of $100,000) to $5,225 (4.75% of $110,000). In New York, we increase your annual Lifetime Income Amount from $4,500 (4.5% of $100,000) to $4,950 (4.5% of $110,000). In each case, your Contract Value equals $105,000 at the end of Contract Year 2.
Impact of Step-Ups on Rider Fees. Each time we increase the Benefit Base, we also increase the dollar amount of the Rider fee. The new Rider fee is based on the new Benefit Base. We also reserve the right to increase the rates of the Income Plus For Life® (Quarterly Step-Up Review) Rider fee up to a maximum rate of 1.20%. If we decide to increase the rate at the
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effective date of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Rider Fees” earlier in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Impact of Step-Ups on Credit Period. Each time a Step-Up occurs, we extend the annual Credit Period to the lesser of 10 years from the effective date of the Step-Up Date or the Age 95 Contract Anniversary.
Declination of Step-Ups. If you decline an automatic Step-Up, you have the option to elect to Step-Up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
Step-Ups may occur only while the Income Plus For Life® (Quarterly Step-Up Review) Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® (Quarterly Step-Up Review) Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values. We reduce your Contract Value and your death benefit each time you take a withdrawal.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you selected. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
For the Income Plus For Life® (Quarterly Step-Up Review) Series Riders, an Excess Withdrawal is:
•  a withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date, or
•  a withdrawal (including applicable withdrawal charges) you take on and after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal.
After the Lifetime Income Date, we do not consider withdrawals under our Life Expectancy Distribution Program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
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If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we generally reduce the Benefit Base on a pro rata basis. This means that we reduce the Benefit Base in the same proportion that your Contract Value is reduced by the Withdrawal Amount. We use a different method if you take a withdrawal under our Life Expectancy Distribution Program.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider that named you as the Covered Person when you were 45. (Since you were under age 58½ at time of purchase, the Lifetime Income Date will not coincide with the Rider’s effective date.) Now assume that in the eighth Contract Year, when you were 53, the Contract Value was $80,000, the Benefit Base was $90,000, no withdrawal charges apply under your Contract and you withdrew $5,000 of Contract Value.
In this case, you reduce your Contract Value by 6.25% (i.e., $5,000/$80,000) and we reduce your Benefit Base by the same percentage ($90,000 × 0.0625, or $5,625). The Benefit Base after the Excess Withdrawal is $90,000 – $5,625, or $84,375.
Note: withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”).
Withdrawals after the Lifetime Income Date. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal(s) for that Contract Year). If so, we reduce the Benefit Base on a pro rata basis. We do this by reducing your Benefit Base in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal that resulted in an Excess Withdrawal.
Each time we reduce the Benefit Base, we also reduce the Lifetime Income Amount to equal 5% of the new Benefit Base. We also reduce the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
EXAMPLE (Income Plus For Life® (Quarterly Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider. Also assume that when you are age 62, the Contract Value is $100,000, the Benefit Base is $110,000, and the Lifetime Income Amount is $5,500. If you withdraw $10,000, we first reduce your Contract Value by 10% ($10,000/$100,000) and since this withdrawal is an Excess Withdrawal, we reduce your Benefit Base by the same percentage ($110,000 × .10 = $11,000). The Benefit Base after the Excess Withdrawal is $99,000 ($110,000 – $11,000) and the Lifetime Income Amount is $4,950 (.05 × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® (Quarterly Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider. Also assume that when the younger Covered Person is age 62, the Contract Value is $100,000 and the Benefit Base is $110,000. For non-New York Contracts, the Benefit Rate is 4.75% and the Lifetime Income Amount is $5,225. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,703 (4.75% × $99,000).
For New York Contracts, the Benefit Rate is 4.50% and the Lifetime Income Amount would be $4,950. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,455 (4.50% × $99,000).
The Income Plus For Life® (Quarterly Step-Up Review) Series Riders enter a Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Rider, and the Rider will not enter the Settlement Phase, if Contract Value declines to zero during the Contract Year of the Excess Withdrawal (see “Settlement Phase” in this section, below). The Income Plus For Life® (Quarterly Step-Up Review) benefit terminates if both the Contract Value and Benefit Base immediately after a withdrawal are equal to zero.
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Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Income Plus For Life® (Quarterly Step-Up Review) Series Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. We reduce the Benefit Base by the amount of the withdrawal if you take a withdrawal under our Life Expectancy Distribution Program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution Program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution Program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® (Quarterly Step-Up Review) Series Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year, and
•  there were no Excess Withdrawals during that Contract Year, and
•  the Benefit Base is still greater than zero at the time.
There is no Settlement Phase under an Income Plus For Life® (Quarterly Step-Up Review) Series Rider if you take any withdrawal before the earliest available Lifetime Income Date and the Contract Value declines to zero during the Contract Year of the withdrawal.
The settlement amount we pay to you under the Rider varies:
•  If you enter the Settlement Phase after the Lifetime Income Date, at the start of the Settlement Phase we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living.
•  If you enter the Settlement Phase before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 5% of the Benefit Base at the Lifetime Income Date).
•  In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
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Impact of Death Benefits
Income Plus For Life® (Quarterly Step-Up Review). If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® (Quarterly Step-Up Review):
1. Not the Covered Person - may continue if the Beneficiary elects to continue the Contract within the time we permit under our administrative rules. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and assess the Rider fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal depletes the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credit amounts and Step-Ups, and a Target Amount adjustment, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-Ups if we increase the rate of the Income Plus For Life® (Quarterly Step-Up Review) fee at that time.
2. The Covered Person - ends without any further benefit.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Income Plus For Life® (Quarterly Step-Up Review) continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® (Quarterly Step-Up Review) Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is an individual, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Income Plus For Life – Joint Life® (Quarterly Step-Up Review). If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary or (c) the surviving Covered Person is a Spouse of the deceased Owner and a tax-qualified retirement plan is the non-Spousal Beneficiary. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups).
If the Rider continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider fee (see “Rider Fees – Fee for Income Plus For Life® (Quarterly Step-Up Review) Series Riders” earlier in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime
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Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider is in effect we will reduce the Lifetime Income Amount to zero and we no make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see “Covered Person” in the definitions above). If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Death Benefits during the Settlement Phase. If death occurs during an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider’s Settlement Phase, the only death benefit we provide is the remaining settlement payments that may become due under that Rider. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. Settlement payments will equal the Lifetime Income Amount. We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Termination of Rider
You may not terminate an Income Plus For Life® (Quarterly Step-Up Review) Series Rider once it is in effect. However, the Income Plus For Life® (Quarterly Step-Up Review) Series Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
•  the date the Contract Value and the Benefit Base both equal zero;
•  (for Income Plus For Life® (Quarterly Step-Up Review)) the death or removal of the Covered Person;
•  (for Income Plus For Life – Joint Life® (Quarterly Step-Up Review)) the death or removal of the last Covered Person remaining under the Rider;
•  the date a new GMWB Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
Features of Income Plus For Life® (Annual Step-Up Review) Series Riders
Income Plus For Life® (Annual Step-Up Review) has previously been referred to as “Income Plus For Life®.”
Form of Guaranteed Amounts
Income Plus For Life® (Annual Step-Up Review) Series Riders provide a lifetime income guarantee based on a single life (Income Plus For Life® (Annual Step-Up Review)) or on the lifetime durations of two Covered Persons (Income Plus For Life – Joint Life® (Annual Step-Up Review)).
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IPFL (Annual Step-Up Review) Benefits
Lifetime Income Amount. The Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® (Annual Step-Up Review)) the Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant of the Contract, subject to the terms and conditions of the Rider.
•  (for Income Plus For Life – Joint Life® (Annual Step-Up Review)) at least one Covered Person remains alive and qualified as a Covered Person and is designated as an Owner, Beneficiary or Annuitant of the Contract, subject to the terms and conditions of the Rider.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5% for Income Plus For Life® (Annual Step-Up Review), 4.75% for Income Plus For Life – Joint Life® (Annual Step-Up Review)); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE (Income Plus For Life® (Annual Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® (Annual Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000).
We may reduce the Lifetime Income Amount to reflect withdrawals and Resets, and we may increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits, a Target Amount adjustment and Step-Ups as provided in the Rider.
Lifetime Income Date. The Lifetime Income Date is the date you purchased the Rider if:
•  (for Income Plus For Life® (Annual Step-Up Review)) you were age 59½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date you turn age 59½ (age 61 in New York) .
•  (for Income Plus For Life – Joint Life® (Annual Step-Up Review)) both you and your Spouse were age 59½ or older at the time; otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date the younger Spouse would turn age 59½. (The Lifetime Income Date does not change if the younger Spouse does not survive to this date and the older Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under the Rider, but you may continue to be eligible for Credits and Step-Ups if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase the Rider after the first Contract Year, we may have determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
•  Income Plus For Life® (Annual Step-Up Review) – 5%
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•  Income Plus For Life – Joint Life® (Annual Step-Up Review) – 4.75%.
Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® (Annual Step-Up Review) Rider. We will use the Benefit Rate applicable to the age of the Covered Person (youngest Covered Person under IPFL – Joint Life (Annual Step-Up Review)) on the first withdrawal after the Lifetime Income Date to calculate the initial Lifetime Income Amount.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® (Annual Step-Up Review) Series Rider.
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept (see “Restrictions on Additional Purchase Payments,” above), subject to the maximum Benefit Base limit of $5 million.
On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, up to a maximum Benefit Base of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date; or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base;
•  the date of a reduction in the Benefit Base; or
•  the effective date of a Step-Up.
Credits. The Income Plus For Life (Annual Step-Up Review) Rider provides the following Credit features:
•  Annual Credit Rate:
•  7% for Riders purchased on or after January 17, 2008 and outside of New York;
•  6% for Riders purchased before January 17, 2008 or in New York.
•  Credit Period (for Annual Credits) – The initial Credit Period coincides with the first 10 Contract Years while the Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Ten Year Credit Rate – See “Ten Year Credit” for a description of the rate we use to calculate a Ten Year Credit.
•  Ten Year Credit Period – The Credit Period for the Ten Year Credit ends on a “Target Date” that coincides with the 10th Contract Anniversary after the effective date of the Income Plus For Life (Annual Step-Up Review) Rider.
Annual Credits. (We refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits if you take no withdrawals during the previous Contract Year.
EXAMPLE (Income Plus For Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life® (Annual Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit Rate is 7% (i.e., your Rider was purchased on or after January 17, 2008 outside of New York). Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $107,000 ($100,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,350 (5% × $107,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $114,000 ($107,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,700 (5% × $114,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawal and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
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•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (7% × ($100,000 + $5,000) = $7,350). The Benefit Base increases to $112,350 ($100,000 + $5,000 + $7,350) and the Lifetime Income Amount increases to $5,618 (5% × $112,350).
EXAMPLE (Income Plus For Life – Joint Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider when the younger Covered Person is age 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit Rate is 6% (i.e., your Rider was purchased before January 17, 2008). Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $106,000 ($100,000 + 6% × $100,000). The Lifetime Income Amount increases to $5,035 (4.75% × $106,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $112,000 ($106,000 + 6% × $100,000). The Lifetime Income Amount increases to $5,320 (4.75% × $112,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawal and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (6% × ($100,000 + $5,000) = $6,300). The Benefit Base increases to $111,300 ($100,000 + $5,000 + $6,300) and the Lifetime Income Amount increases to $5,287 (4.75% × $111,300).
Ten Year Credit. (We may refer to the Ten Year Credit as a “Target Amount adjustment” in your Rider and in our communications.) If you take no withdrawals under your Contract from the effective date of the Income Plus For Life® (Annual Step-Up Review) Rider until the end of the Ten Year Credit Period, we make a calculation at that time and, to the extent necessary, apply a Credit so that the Benefit Base equals the greater of:
•  the current Benefit Base, as increased by any Annual Credit or Step-Up for the Contract Year ending on the Target Date; or
•  the Target Amount (see below).
The “Ten Year Credit Period” will exceed ten Contract Years if you purchased this Rider before a Covered Person turned age 59.
The Target Amount is 200% of all Purchase Payments made in the first Contract Year plus 100% of all Additional Purchase Payments you make prior to the Target Date (subject to our Purchase Payment limits). In no event, however, will we set a Target Amount in excess of $5 million.
We reduce the Target Amount to zero if you take any withdrawals under your Contract from the effective date of the Income Plus For Life® (Annual Step-Up Review) Rider until the end of the Ten Year Credit Period. We increase the Target Amount to reflect Additional Purchase Payments during that period and, in some cases, we also increase the Target Amount to reflect favorable investment performance.
The Ten Year Credit can provide higher lifetime income than you would otherwise receive under this Rider, as long as you wait until the end of the Target Date to take your first withdrawal.
Step-Ups. The Income Plus For Life® (Annual Step-Up Review) Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
How Step-Ups Work. We schedule Step-Up Dates starting on the first Contract Anniversary following your purchase of the Rider and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary.
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On each Step-Up Date, we compare the Benefit Base (including any applicable Annual Credit) to the Contract Value on that date. If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Annual Credit) on that date, we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also increase the Lifetime Income Amount (after the Lifetime Income Date) and the Rider fee (see “Rider Fees” earlier in this Appendix). The new Lifetime Income Amount will equal 5% of the Benefit Base value after the Step-Up, and the Rider fee will be based on the increased Benefit Base. We also reserve the right to increase the rate of the Income Plus For Life® (Annual Step-Up Review) fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Fee for Income Plus For Life® (Annual Step-Up Review) Series Riders” earlier in this Appendix). If you decline the Step-Up, the fee rate will not be increased. We schedule the Step-Up Dates starting with the first Contract Anniversary and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary.
Impact of Step-Ups on Credit Period. Each time a Step-Up occurs, we will extend the Annual Credit Period to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
Declination of Step-Ups. If you decline an automatic Step-Up, you will have the option to elect to step up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Annual Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit Rate is 7% (i.e., purchased after January 17, 2008 outside of New York). Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $121,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $8,750 (7% × $125,000).
In no event, however, will we increase the Benefit Base to exceed $5 million. If we increase the Benefit Base on any Step-Up Date (after the Lifetime Income Date), we also increase the Lifetime Income Amount. The new Lifetime Income Amount equals the Benefit Rate multiplied by the new Benefit Base value after the Step-Up.
Step-Ups may occur only while the Income Plus For Life® (Annual Step-Up Review) Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® (Annual Step-Up Review) Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
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We will reduce the death benefit on a dollar-for-dollar basis for any withdrawals you make after the Lifetime Income Date until the total amount of withdrawals during a Contract Year equals the Lifetime Income Amount. Once a withdrawal exceeds the Lifetime Income Amount, we will reduce the death benefit on a pro rata basis by the entire amount of that withdrawal.
EXAMPLE: If you take a withdrawal of $8,000 when your Contract Value is $80,000 and your Guaranteed Minimum Death Benefit is $100,000, and your Lifetime Income Amount is $5,000, we reduce your Guaranteed Minimum Death Benefit on a pro rata basis for the amount of the Excess Withdrawal. That means we reduce the Contract Value to $72,000 and the Guaranteed Minimum Death Benefit by 10% ($8,000/$80,000), to $90,000 ($100,000 – 10% × $100,000).
We reduce your Contract Value each time you take a withdrawal. We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you selected. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
For the Income Plus For Life® (Annual Step-Up Review) Series Riders, an Excess Withdrawal is:
•  any withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date that, together with all other withdrawals during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Benefit Rate of the Rider (see “Benefit Rate” above) at the prior Contract Anniversary, increased for any Additional Purchase Payments; or
•  a withdrawal (including applicable withdrawal charges) you take on and after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal.
EXAMPLE (Income Plus For Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life® (Annual Step-Up Review) Rider. Also assume that when you are age 67, the Contract Value is $90,000, the Benefit Base is $110,000, the Lifetime Income Amount is $5,500 and the Benefit Rate is 5%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we first reduce your Benefit Base to $80,000, the lesser of the Contract Value after the withdrawal ($90,000 – $10,000) or the Benefit Base after the withdrawal ($110,000 – $10,000). The new Lifetime Income Amount is $4,000 – 5% of the new Benefit Base after the withdrawal ($80,000).
EXAMPLE (Income Plus For Life – Joint Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider. Also assume that when you are age 67, the Contract Value is $90,000 and the Benefit Base is $110,000. The Benefit Rate is 4.75% and the Lifetime Income Amount is $5,225. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base to $80,000, the lesser of the Contract Value after the withdrawal ($90,000 – $10,000) or the Benefit Base after the withdrawal ($110,000 – $10,000). The new Lifetime Income Amount is $3,800 – 4.75% of the new Benefit Base after the withdrawal ($80,000).
We do not consider withdrawals under our Life Expectancy Distribution Program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we reduce the Benefit Base by the Withdrawal Amount. If, however, a withdrawal is an Excess Withdrawal, we will reset the Benefit Base to equal the lesser of:
•  the Contract Value immediately after the withdrawal; or
•  the Benefit Base minus the Withdrawal Amount.
    
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If you take withdrawals prior to the Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount on the Lifetime Income Date. You could eventually lose any benefit based on the Lifetime Income Amount if you take withdrawals in excess of an amount equal to the Benefit Rate multiplied by the Benefit Base. If Contract Value declines to zero during a Contract Year in which you have an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus For Life® (Annual Step-Up Review) Rider. (See “Settlement Phase” in this section, below.)
Withdrawals after the Lifetime Income Date. After the Lifetime Income Date, you may withdraw the guaranteed Lifetime Income Amount each Contract Year without affecting the Benefit Base. If your total withdrawals during a Contract Year exceed the Lifetime Income Amount, however, we will reset the Benefit Base and the Lifetime Income Amount.
Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal. If so, we reset the Benefit Base to equal the lesser of:
•  the Benefit Base before the withdrawal minus the entire amount of the Excess Withdrawal; or
•  the Contract Value immediately after the Excess Withdrawal.
After we reset the Benefit Base, we reset the Lifetime Income Amount to equal the Benefit Rate multiplied by the new Benefit Base. We also reset the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
The Income Plus For Life® (Annual Step-Up Review) Rider enters a Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus For Life® (Annual Step-Up Review) Rider if Contract Value declines to zero during the Contract Year of the Excess Withdrawal (see “Settlement Phase” in this section, below). The Income Plus For Life® (Annual Step-Up Review) benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero.
Effect of Withdrawals on Guaranteed Minimum Death Benefit Amount. If you purchased Income Plus For Life® (Annual Step-Up Review), we adjust the way we calculate the death benefit payable under your Contract upon the death of the Owner (or deemed Owner if the Owner is not a natural person) during the Accumulation Period. We reduce that death benefit each time you take a withdrawal. We will reduce the death benefit on a dollar for dollar basis if:
•  you limit your withdrawals (including applicable withdrawal charges) during a Contract Year to the Lifetime Income Amount; or
•  you purchased the Income Plus For Life® (Annual Step-Up Review) Rider before the Covered Person turned age 59½, and you limit your withdrawals (including applicable withdrawal charges) each Contract Year before the Lifetime Income Date to the Benefit Rate multiplied by the Benefit Base and to the Lifetime Income Amount for each Contract Year after that.
If you take an Excess Withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the Guaranteed Minimum Death Benefit under the Contract. Pro rata means we reduce the Guaranteed Minimum Death Benefit by the same percentage that the Excess Withdrawal reduces the Contract Value. That is, by an amount equal to:
•  the Guaranteed Minimum Death Benefit before the withdrawal, multiplied by an amount equal to:
•  the Excess Withdrawal amount; divided by
•  the Contract Value before the withdrawal.
We also will reduce the Guaranteed Minimum Death Benefit in the same manner for any subsequent Excess Withdrawals that you take during that Contract Year.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® (Annual Step-Up Review) Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking
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withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Income Plus For Life® (Annual Step-Up Review) Series Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. We reduce the Benefit Base by the amount of the withdrawal if you take a withdrawal under our Life Expectancy Distribution Program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution Program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution Program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® (Annual Step-Up Review) Series Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We will not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year;
•  there were no Excess Withdrawals during that Contract Year; and
•  the Benefit Base is still greater than zero at the time.
You will lose the ability to receive Lifetime Income Amounts if you withdraw more than the Lifetime Income Amount during a Contract Year and the Contract Value declines to zero.
The settlement payment we pay to you under the Rider varies:
•  If you enter the Settlement Phase after the Lifetime Income Date, at the start of the Settlement Phase we pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living.
•  If you enter the Settlement Phase before the Lifetime Income Date, we begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount equals the Lifetime Income Amount.
•  In lieu of annual payments of the settlement amount, we permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
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Impact of Death Benefits
Income Plus For Life (Annual Step-Up Review). If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® (ANNUAL STEP-UP REVIEW):
1. Not the Covered Person and the Beneficiary is the deceased Owner’s Spouse - may continue if the Beneficiary elects to continue the Contract within the time we permit under our administrative rules. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and assess the Rider fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal depletes the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credits and Step-Ups, and a Target Amount adjustment, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Spouse to opt out of an increase in the Benefit
Base, if any, to reflect the initial death benefit and any future Step-Ups if we increase the rate of the Income Plus For Life® (Annual Step-Up Review) fee at that time.
2. Not the Covered Person and the Beneficiary is not the deceased Owner’s Spouse - may continue in the same manner as 1.
- enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- does not continue to be eligible for any Credits and Step-Ups, or a Target Amount adjustment. We will permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit if we increase the rate of the Income Plus For Life® (Annual Step-Up Review) fee at that time.
3. The Covered Person and the Beneficiary is the deceased Owner’s Spouse - ends without any further benefit.
4. The Covered Person and the Beneficiary is not the deceased Owner’s Spouse - ends without any further benefit.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® (Annual Step-Up Review) Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is an individual, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Income Plus For Life – Joint Life® (Annual Step-Up Review). If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary; or (c) the surviving Covered Person is a Spouse of the deceased Owner and a tax-qualified retirement plan is the non-Spousal Beneficiary. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). If the Rider continues, we will determine the
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Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider fee (see “Fee for Income Plus For Life® (Annual Step-Up Review) Series Riders” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider is in effect we will reduce the Lifetime Income Amount to zero and we no make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider. If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Termination of Rider
You may not terminate the Income Plus For Life® (Annual Step-Up Review) Rider once it is in effect. However, the Income Plus For Life® (Annual Step-Up Review) Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
•  the date the Contract Value and the Benefit Base both equal zero;
•  the death or removal of the Covered Person; or
•  termination of the Contract.
Features of Principal Plus and Principal Plus for Life Series Riders
Forms of Guaranteed Amounts
Principal Plus and each of the Principal Plus for Life Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period that guarantees the return of your investments in the Contract, regardless of market performance, as long as you limit your annual withdrawals to the Guaranteed Withdrawal Amount.
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In addition, Principal Plus for Life, and Principal Plus for Life Plus Automatic Annual Step-Up Riders provide a lifetime income guarantee based on a single life. The Principal Plus for Life Plus Spousal Protection Rider provides a lifetime income guarantee based on the lifetime durations of two Covered Persons. Principal Plus does not provide a lifetime income guarantee.
Principal Plus and PPFL Benefits
Lifetime Income Amount (Not applicable to Principal Plus). The Principal Plus for Life Series Riders provide our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Principal Plus for Life and Principal Plus For Life Plus Automatic Annual Step-Up) the Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant under the Contract, or
•  (for Principal Plus For Life Plus Spousal Protection) either Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant under the Contract. The Lifetime Income Amount reduces to zero upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5%); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE: Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the benefit rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
The maximum Lifetime Income Amount at any time for a Principal Plus for Life Series Rider is $250,000. We will increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
We will reduce the Lifetime Income Amount if you take Excess Withdrawals. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
Lifetime Income Date (Not applicable to Principal Plus). The Lifetime Income Date is the date you purchased the Rider if:
•  (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Riders purchased outside of New York after June 16, 2008) you were age 58½ or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you turn age 58½.
•  (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Riders purchased from March 12, 2007 to June 15, 2008, or purchased in New York) you were age 59½ or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you turn age 59½.
•  (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Riders purchased before March 12, 2007) you were age 65 or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you turn age 65.
•  (for Principal Plus for Life Plus Spousal Protection) the older of you and your Spouse were age 65 or older at the time; otherwise, the Anniversary Date on, or immediately following, the date the older Spouse would turn age 65. (The Lifetime Income Date does not change if the older Spouse does not survive to this date and the younger Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under these Riders, but you may continue to be eligible for Credits and Step-Ups if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
The Riders refer to the Benefit Base as the “Guaranteed Withdrawal Balance.”
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The maximum Benefit Base at any time is $5 million. We will increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. We will reduce the Benefit Base if you take a withdrawal. We may reduce the Benefit Base to reflect the withdrawal either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
The Benefit Base we use to determine the initial Guaranteed Withdrawal Amount is equal to your initial Purchase Payment. (We do not count Purchase Payment amounts over $5 million or, for Contracts issued in New York with a Payment Enhancement Rider, any Payment Enhancement attributable to the Purchase Payment for this purpose.) If we allowed you to purchase your Rider after the first Contract Year, we may have determined the Benefit Base by using your Contract Value after the first Contract Year.
The Benefit Base we use to determine the initial Lifetime Income Amount (not applicable to Principal Plus) is equal to the Benefit Base on the Lifetime Income Date.
Benefit Rate
The Benefit Rate is:
•  Principal Plus – 5.00%
•  Principal Plus for Life – 5.00%
•  Principal Plus for Life Plus Automatic Annual Step-Up – 5.00%
•  Principal Plus for Life Plus Spousal Protection – 5.00%.
Guaranteed Withdrawal Amount
The Guaranteed Withdrawal Amount is the amount we guarantee to be available each Contract Year for you to withdraw during the Accumulation Phase until the Benefit Base is depleted. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Benefit Base. The maximum Guaranteed Withdrawal Amount at any time is $250,000 ($150,000 for Principal Plus).
Increases in Guaranteed Amounts
Additional Purchase Payments – Principal Plus Rider. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under a Principal Plus Rider (see “Restrictions on Additional Purchase Payments,” above).
We will increase the Benefit Base (i.e., the Guaranteed Withdrawal Balance in your Rider) each time you make an Additional Purchase Payment that we accept, subject to the maximum Benefit Base limit of $3 million. In addition, we recalculate the Guaranteed Withdrawal Amount and usually increase it to equal the lesser of:
•  5% of the Benefit Base immediately after the Additional Purchase Payment; or
•  the Guaranteed Withdrawal Amount immediately prior to the Additional Purchase Payment plus an amount equal to 5% of the Additional Purchase Payment.
We do not change the Guaranteed Withdrawal Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount, before the Additional Purchase Payment.
Additional Purchase Payments – Principal Plus for Life Series Riders. We will increase the Benefit Base (i.e., the Guaranteed Withdrawal Balance in your Rider) each time you make an Additional Purchase Payment, up to a maximum Benefit Base of $5 million.
In addition, we will recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount and usually increase it:
•  in the case of the Guaranteed Withdrawal Amount, to equal the lesser of:
•  5% of the Benefit Base immediately after the Additional Purchase Payment; or
•  the Guaranteed Withdrawal Amount immediately prior to the Additional Purchase Payment plus an amount equal to 5% of the Additional Purchase Payment.
•  in the case of the Lifetime Income Amount, to equal the lesser of:
•  5% of the Benefit Base immediately after the Additional Purchase Payment; or
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•  the Lifetime Income Amount immediately prior to the Additional Purchase Payment plus an amount equal to 5% of the Purchase Payment.
We do not change the Guaranteed Withdrawal Amount or the Lifetime Income Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount or Lifetime Income Amount, as the case may be, before the Additional Purchase Payment.
Credits. The Riders provide the following Credit features:
•  Credit Rate – 5%.
•  initial Credit Period
•  (for Principal Plus) – the first 5 Contract Years.
•  (for Principal Plus for Life Series Riders issued prior to May 1, 2007) – the lesser of: (a) the first 10 Contract Years or (b) each Contract Year up to the Contract Year in which the Covered Person (younger of the two Covered Persons for Principal Plus for Life Plus Spousal Protection) turns age 80. If you elected a Principal Plus for Life Plus Spousal Protection Rider when you purchased a Contract, the Credit Period is determined on the Contract Date. If you purchased a Principal Plus for Life Plus Spousal Protection Rider to replace a Principal Plus for Life Rider, and the additional Covered Person is the younger of the two Covered Persons, the initial Credit Period is based on the age of that Covered Person as of the initial Contract Date. The Credit Period does not change upon the death of either Covered Person.
•  (for Principal Plus for Life Series Riders issued on and after May 1, 2007) – the first 10 Contract Years.
•  extended Credit Period (for Principal Plus for Life Series Riders issued on and after May 1, 2007) – Each time a Step-Up occurs, we will extend the Credit Period to the lesser of: (a) 10 years from a Step-Up Date; or (b) the Age 95 Anniversary Date.
Annual Credits. (We refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits if you take no withdrawals during the previous Contract Year.
Each time you qualify for a Credit, we increase the Benefit Base:
•  by an amount equal to 5% of total Purchase Payments to the Contract if you did not previously Step-Up the Benefit Base and/or we did not previously reduce the Benefit Base (see “Withdrawals, Distributions and Settlements”); otherwise
•  by an amount equal to 5% of the Benefit Base immediately after the latest Step-Up or reduction, increased by any Purchase Payments received since such latest Step-Up or reduction.
Each time we apply a Credit to the Benefit Base, we also recalculate the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Credit or 5% of the Benefit Base after the Credit. Under Principal Plus for Life Series Riders, we will also recalculate the Lifetime Income Amount to equal the greater of the Lifetime Income Amount prior to the Credit or 5% of the Benefit Base after the Credit.
EXAMPLE: Assume that you purchase a Contract with a Principal Plus for Life Rider when you, the Covered Person, are 65, you take no withdrawals during the first and second Contract Year. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply a Credit to the Benefit Base and increase it to $105,000 ($100,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,250 (5% × $105,000).
•  At the end of the second Contract Year, we apply a Credit to the Benefit Base and increase it again to $110,000 ($105,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,500 (5% × $110,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, you take no withdrawals, and you make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
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•  At the end of the fourth Contract Year, we apply a Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (5% × ($100,000 + $5,000) = $5,250). The Benefit Base increases to $110,250 ($100,000 + $5,000 + $5,250) and the Lifetime Income Amount increases to $5,513 (5 × $110,250).
Step-Ups. The Principal Plus and Principal Plus For Life Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Credit) on that date, we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). Each time we apply a Step-Up, we also recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount (with respect to Principal Plus for Life Series Riders), and the applicable Rider fee (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). The recalculated Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Step-Up or 5% of the Benefit Base after the Step-Up, and the Lifetime Income Amount will equal the greater of the Lifetime Income Amount prior to the Step-Up or 5% of the Benefit Base after the Step-Up. We also reserve the right to increase the rate of the Rider fee up to a maximum rate of:
•  (for Principal Plus and Principal Plus for Life) 0.75%, and
•  (for Principal Plus for Life Plus Automatic Annual Step-Up and Principal Plus for Life Plus Spousal Protection) 1.20%.
If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Step-Up Dates. We schedule Step-Up Dates:
•  (for Principal Plus) – every 3rd Contract Anniversary after the Contract Date (i.e., the 3rd, 6th, 9th etc.), up to and including the 30th Contract Anniversary.
•  (for Principal Plus for Life Series Riders issued before May 1, 2007 and in a limited number of states thereafter) – the 3rd, 6th and 9th Contract Anniversary after the Contract Date and each succeeding Contract Anniversary on and after the 9th Contract Anniversary (i.e., the 10th, 11th, 12th, etc.) up to and including the 30th Contract Anniversary.
•  (for Principal Plus for Life Series Riders issued on and after May 1, 2007 (may vary by state)) – the 3rd, 6th and 9th Contract Anniversary after the Contract Date, and each succeeding Contract Anniversary on and after the 9th Contract Anniversary (i.e., the 10th, 11th, 12th, etc.) up to and including the Age 95 Contract Anniversary.
•  (for Riders issued in Oregon) – we limit the duration of Step-Up Dates to a maximum of 50 Contract Years.
•  (for Principal Plus for Life Riders with endorsement) – we issued an endorsement, in states where approved, after we issued certain Principal Plus for Life Riders. This endorsement increases Step-Up Dates to include each succeeding Contract Anniversary on and after the 9th Contract Anniversary. In such cases, an affected Owner had the option to decline the endorsement within 30 days of its issuance and, if he or she did so, we scheduled Step-Up Dates under the original schedule.
Under Principal Plus for Life Plus Automatic Annual Step-Up prior to May 1, 2007, we automatically step up the Benefit Base to equal the Contract Value on each Contract Anniversary starting with the first Contract Anniversary. We continue Step-Ups until, and including, the 30th Contract Anniversary (or when the Covered Person turns the age of 80, if earlier) while the Rider is in effect, provided the Contract Value is greater than the Benefit Base on that date. On and after May 1, 2007, we continue Step-Up’s until age 95.
EXAMPLE: Assume that you purchase a Contract with a Principal Plus for Life Plus Automatic Annual Step-Up Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit Rate is 5%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and that the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $115,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Credit on the fourth Contract Anniversary equals $6,250 (5% × $125,000).
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Election of Step-Ups under Principal Plus. Under Principal Plus, you may elect to step up the Benefit Base (and Guaranteed Withdrawal Amount, if applicable) to the recalculated value within 30 days following each Step-Up Date. Subject to state approval, however, we may have issued a special endorsement to a Principal Plus Rider after we issued the Contract. Under this special endorsement to the Principal Plus Rider, we automatically increase the Benefit Base (and Guaranteed Withdrawal Amount, if applicable) to equal a higher recalculated value. In such cases, an affected Owner may decline the endorsement within 30 days of its issuance. If so, you then need to elect a Step-Up within 30 days of the respective Step-Up Date if you choose to make the increase effective.
If you decline a scheduled Step-Up, you have the option to elect to step up the Benefit Base (as well as the Guaranteed Withdrawal Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base and the special endorsement to your Principal Plus Rider is in effect, we will thereafter resume automatic Step-Ups on each succeeding Step-Up Date.
Step-Ups under Principal Plus for Life Series Riders. We automatically step up the Benefit Base to equal the Contract Value (up to a maximum of $5 million). If you decline an automatic scheduled Step-Up, you have the option to elect to step up the Benefit Base (as well as the Guaranteed Withdrawal Amount and Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
Recalculation of Guaranteed Amounts. Each time we apply a Step-Up, we also recalculate the Guaranteed Withdrawal Amount, or Lifetime Income Amount for Principal Plus for Life Series Riders, to equal the greater of either the Guaranteed Withdrawal Amount or Lifetime Income Amount, as appropriate, prior to the Step-Up or 5% of the new Benefit Base value after the Step-Up.
Impact of Step-Ups on Rider Fees. Each time we increase the Benefit Base, we also increase the dollar amount of the Rider fee. The new Rider Fee is based on the new Benefit Base. We also reserve the right to increase the rate of the Principal Plus and Principal Plus for Life fee up to a maximum rate of 0.75%; we reserve the right to increase the rate of the Principal Plus for Life Plus Automatic Annual Step-Up and Principal Plus for Life Plus Spousal Protection fees up to a maximum rate of 1.20%. If we decide to increase the rate at the effective date of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Step-Ups may occur only while the Principal Plus or Principal Plus for Life Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Principal Plus and Principal Plus for Life Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives (does not apply to Principal Plus, which permits withdrawals until the Benefit Base is depleted to zero), subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Guaranteed Withdrawal Amount and/or Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
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We reduce your Contract Value each time you take a withdrawal. We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you selected. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
An Excess Withdrawal under Principal Plus or a Principal Plus for Life Series Rider is a withdrawal (including applicable withdrawal charges) you take that, together with all other withdrawals (including any applicable withdrawal charges) previously taken during the Contract Year of the withdrawal, exceeds the Guaranteed Withdrawal Amount at the time of withdrawal. For Principal Plus for Life Series Riders, an Excess Withdrawal also includes withdrawals (including applicable withdrawal charges) you take: (a) before the Lifetime Income Date; or (b) on or after the Lifetime Income Date that, together with all other withdrawals (including applicable withdrawal charges) taken during a Contract Year, causes total withdrawals during that Contract Year to exceed the Lifetime Income Amount at the time of withdrawal.
We do not consider withdrawals under our Life Expectancy Distribution Program to result in Excess Withdrawals with respect to the Guaranteed Withdrawal Amount unless you take additional withdrawals outside of that program. We do not consider withdrawals under our Life Expectancy Distribution Program to result in Excess Withdrawals with respect to the Lifetime Income Amount unless:(a) you take additional withdrawals outside of that program; or (b) you take a distribution under that program before the Lifetime Income Date.
Impact of Withdrawals. We decrease the Benefit Base each time you make a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we will decrease the Benefit Base by the amount of the withdrawals. If an Excess Withdrawal is the result of your total withdrawals during a Contract Year exceeding the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we will automatically recalculate and, in most cases reduce, the Benefit Base to equal the lesser of:
•  the Contract Value immediately after the withdrawal; or
•  the Benefit Base immediately prior to the withdrawal minus the amount of the withdrawal.
Each time we recalculate the Benefit Base, we also recalculate, and in most cases reduce, the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the lesser of:
•  the Guaranteed Withdrawal Amount prior to the withdrawal; or
•  5% of the greater of: (a) the Contract Value after the withdrawal or (b) the new Benefit Base value.
We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Guaranteed Withdrawal Amount and/or Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date (not applicable to Principal Plus). Under Principal Plus for Life Series Riders, we deem any withdrawal before the Lifetime Income Date to be entirely or partially an Excess Withdrawal with respect to the Lifetime Income Amount because it reduces the Benefit Base we use on the Lifetime Income Date to determine the Lifetime Income Amount. This includes reductions to the Benefit Base caused by distributions under our Life Expectancy Distribution Program before the Lifetime Income Date.
Withdrawals on and after the Lifetime Income Date (not applicable to Principal Plus). Under Principal Plus for Life Series Riders, we recalculate the Lifetime Income Amount after the Lifetime Income Date if an Excess Withdrawal is the
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result of total withdrawals during a Contract Year exceeding the Lifetime Income Amount (or if total withdrawals during a Contract Year have already exceeded the Lifetime Income Amount). In that case, the Lifetime Income Amount equals the lesser of:
•  the Lifetime Income Amount prior to the withdrawal; or
•  5% of the greater of the Contract Value immediately after the withdrawal or the new Benefit Base value.
Under Principal Plus for Life Series Riders, we do not change your Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount. Although you may continue to take withdrawals up to the Guaranteed Withdrawal Amount after the Lifetime Income Date without reduction of the Guaranteed Withdrawal Amount benefit (as long as there is a positive Benefit Base value), your Lifetime Income Amount benefit may be reduced if the amount you withdraw exceeds the Lifetime Income Amount. You could eventually lose any benefit based on the Lifetime Income Amount if you continue to take withdrawals in excess of the Lifetime Income Amount.
If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we recalculate amounts we guarantee for future withdrawals. We may recalculate and reduce the Benefit Base, Guaranteed Withdrawal Amount and, Lifetime Income Amount (under Principal Plus for Life Series Riders) values to reflect reductions that exceed the amount of your withdrawals. A recalculation and reduction also may reduce the total amount guaranteed below the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount and (under Principal Plus for Life Series Riders) Lifetime Income Amount values. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with a Principal Plus or Principal Plus for Life Series Rider, you may be able to pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with a Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up and Principal Plus for Life Plus Spousal Protection Rider to provide automatic payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. We also offer the Income Made Easy Program for Principal Plus, and the full allowable amount is based on the Guaranteed Withdrawal Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the earliest available Lifetime Income Date for your Rider (see “Pre-authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Principal Plus and Principal Plus for Life Series Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
For Principal Plus, the Company’s Life Expectancy Amount for each year is equal to the greater of:
•  the Contract Value as of the applicable date divided by the Owner’s life expectancy; or
•  the Benefit Base as of the applicable date divided by the Owner’s life expectancy.
For purposes of these Life Expectancy Amount calculations, the Owner’s life expectancy is determined using the applicable mortality tables (Uniform Table, if allowable) approved by the Internal Revenue Service for such specific purpose under the latest guidance or regulations, as of September 30, 2003, issued under the relevant section of the Code referred to above.
In the future, the requirements under tax law for such distributions may change and the Life Expectancy Amount calculation provided under Principal Plus may not be sufficient to satisfy the requirement under tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements will exceed the Life Expectancy Amount and may result in a recalculation and reduction of the Benefit Base and the Guaranteed Withdrawal Amount. Please discuss these matters with your tax professional for more information on distribution requirements under the Code.
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value.
We will not make any further withdrawals under our Life Expectancy Distribution Program if both the Contract Value and the Benefit Base are depleted to zero. Under a Principal Plus for Life Series Rider, however, we will make further distributions as part of the Settlement Phase if the Lifetime Income Amount is greater than zero and the Covered Person is living at that time.
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Settlement Phase. Principal Plus enters a Settlement Phase if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but the Benefit Base immediately after the withdrawal is greater than zero (see “Settlement Phase” below). The Principal Plus benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are both equal to zero.
The Principal Plus for Life Series Riders enters a Settlement Phase if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but either the Benefit Base or the Lifetime Income Amount immediately after the withdrawal is greater than zero. The Rider benefit terminates if the Contract Value, Benefit Base and Lifetime Income Amount immediately after a withdrawal are all equal to zero.
Settlement Payments during Principal Plus Settlement Phase. At the beginning of Principal Plus’s Settlement Phase, you may choose settlement payments that total an amount no greater than the Guaranteed Withdrawal Amount, or Life Expectancy Distributions if applicable, to be paid to you automatically each Contract Year until the Benefit Base depletes to zero (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” earlier in this Appendix). If the Guaranteed Withdrawal Amount, or the Life Expectancy Distribution if applicable, for a Contract Year exceeds the Benefit Base, however, then the settlement payment for that Contract Year will be limited to the Benefit Base. The settlement payments will be paid no less frequently than annually. If any Owner dies during Principal Plus’s Settlement Phase, remaining settlement payments will be paid to the Beneficiary and are subject to the distribution provisions of the “Death Benefit Before Maturity Date” section of the Prospectus described in “Accumulation Period Provisions.”
This provision is also applicable if the Beneficiary does not take the death benefit as a lump sum and Principal Plus continues (as described in “Impact of Death Benefits,” below) and death benefit distributions deplete the death benefit to zero. When this occurs, settlement payments made in Principal Plus’s Settlement Phase are subject to the distribution provisions of the “Death Benefit Before Maturity Date” section of the Contract described in “V. Description of the Contract – Accumulation Period Provisions – Payment of Death Benefit.”
Settlement Payments during Principal Plus for Life Series Riders Settlement Phase. At the beginning of the Settlement Phase, the settlement payment amount we permit you to choose varies:
•  You may choose an amount that is no greater than, or equal to, the Guaranteed Withdrawal Amount if the Benefit Base is greater than zero at the beginning of the Settlement Phase. We reduce any remaining Benefit Base each time we make a settlement payment, and automatically pay the settlement amount to you each Contract Year while the Covered Person is alive until the Benefit Base reduces to zero. After that, we make settlement payments to you each Contract Year during the Covered Person’s lifetime in an amount that is equal to any remaining Lifetime Income Amount value. Keep in mind that in certain circumstances the Lifetime Income Amount may be less than the Guaranteed Withdrawal Amount, and under those circumstances your choice of an amount in excess of the Lifetime Income Amount could result in a reduction of the Lifetime Income Amount.
•  You may choose to continue to receive distribution payments under the Life Expectancy Distribution Program if the program is in effect under your Contract and the Benefit Base is greater than zero at the beginning of the Settlement Phase. If you do, we reduce any remaining Benefit Base each time we make a distribution payment and automatically make distribution payments each Contract Year while the Covered Person is alive until the Benefit Base reduces to zero. After that, we make settlement payments to you each Contract Year during the Covered Person’s lifetime in an amount that is equal to any remaining Lifetime Income Amount value.
•  We make settlement payments to you each Contract Year during the Covered Person’s lifetime in an amount that is equal to the Lifetime Income Amount if there is no remaining Benefit Base at the beginning of the Settlement Phase. If the Covered Person is alive when the Benefit Base is depleted, we continue to make settlement payments each Contract Year during the Covered Person’s lifetime in an amount that is equal to the Lifetime Income Amount.
•  After the Lifetime Income Date, if you choose to receive a settlement payment that is in excess of the Lifetime Income Amount, we recalculate the Lifetime Income Amount in the same manner as a withdrawal that exceeds the Lifetime Income Amount. We do not recalculate the Lifetime Income Amount, however, if you receive distribution payments under the Life Expectancy Distribution Program.
Impact of Death Benefits. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, the Rider will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum.
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Continuation of Principal Plus. If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Beneficiary is: Then
PRINCIPAL PLUS:
1. The deceased Owner’s Spouse - Continues if the Benefit Base is greater than zero.
- Within 30 days following the date we determine the death benefit under the Contract, provides the Beneficiary with an option to elect to step up the Benefit Base if the death benefit on the date of determination is greater than the Benefit Base.
- Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Benefit Base is still greater than zero. (Death benefit distributions are treated as withdrawals. Some methods of death benefit distribution may result in distribution amounts in excess of both the Guaranteed Withdrawal Amount and the Life Expectancy Distributions. In such cases, the Benefit Base may be automatically Reset, thereby possibly reducing the guaranteed minimum withdrawal benefit provided under this Rider).
- Continues to impose the Principal Plus fee.
- Continues to be eligible for any remaining Credits and Step-Ups, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. Remaining eligible Step-Up Dates will also be measured beginning from the death benefit determination date but the latest Step-Up Date will be no later than the 30th Contract Anniversary.
2. Not the deceased Owner’s Spouse - Continues in the same manner as above, except that Principal Plus does not continue to be eligible for any remaining Credits and Step-Ups, other than the initial Step-Up of the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus continues, we determine the Adjusted Benefit Base and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Continuation of Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up. If the Beneficiary elects not to take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
PRINCIPAL PLUS FOR LIFE OR PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP:
1. The Covered Person and the Beneficiary is the deceased Owner’s Spouse - Does not continue with respect to the Lifetime Income Amount, but continues with respect to the Guaranteed Withdrawal Amount if the death benefit or the Benefit Base is greater than zero. We automatically step up the Benefit Base to equal the initial death benefit we determine, if greater than the Benefit Base prior to the death benefit.
- Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Benefit Base is still greater than zero.
- Continues to impose the Principal Plus for Life fee.
- Continues to be eligible for any remaining Credits and Step-Ups, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Spouse to opt out of the initial death benefit Step-Up, if any, and any future Step-Ups if we increase the rate of the Rider fee at that time.
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If the Deceased
Owner is: 		Then
PRINCIPAL PLUS FOR LIFE OR PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP:
2. The Covered Person and the Beneficiary is not the deceased Owner’s Spouse - Continues in the same manner as 1, except that Principal Plus for Life does not continue to be eligible for any remaining Credits and Step-Ups, other than the initial Step-Up of the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit. We permit the Beneficiary to opt out of the initial death benefit Step-Up, if any, if we increase the rate of the Rider fee at that time.
3. Not the Covered Person and the Beneficiary is the deceased Owner’s Spouse - Continues in the same manner as 1, except that the Rider continues with respect to the Lifetime Income Amount for the Beneficiary. If the Lifetime Income Amount has not been determined prior to the payment of any portion of the death benefit, we determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached his or her Lifetime Income Date.
4. Not the Covered Person and the Beneficiary is not the deceased Owner’s Spouse - Continues in the same manner as 1, except that the Rider continues with respect to the Lifetime Income Amount for the Beneficiary. If the Lifetime Income Amount has not been determined prior to the payment of any portion of the death benefit, we determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached his or her Lifetime Income Date.
- In this case, does not continue to be eligible for any remaining Credits and Step-Ups, other than the initial Step-Up of the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit. We permit the Beneficiary to opt out of the initial death benefit Step-Up, if any, if we increase the rate of the Rider fee at that time.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-Up continues, we determine the Adjusted Benefit Base and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Plus or Principal Plus for Life Rider. Under the Principal Plus for Life Series Riders, we reduce the Lifetime Income Amount to zero if the Covered Person dies during the Settlement Phase. An individual Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. An individual Beneficiary who is the deceased Owner’s surviving Spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Death of First Covered Person under Principal Plus for Life Plus Spousal Protection Rider. If the first Covered Person to die is an Owner of the Contract (or deemed to be an “Owner” if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Principal Plus for Life Plus Spousal Protection Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only on the lifetime of the surviving Covered Person and continue to charge the Principal Plus for Life Plus Spousal Protection Rider fee (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Guaranteed Withdrawal Amount, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base, the Guaranteed Withdrawal Amount and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (or is not deemed to be an “Owner” if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect, and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Principal Plus for Life
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Plus Spousal Protection Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Guaranteed Withdrawal Amount, Lifetime Income Amount, Credits or Step-Ups.
If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. At the time we compute the Lifetime Income Amount, we may permit the surviving Covered Person to receive settlement payments:
•  no greater than the Guaranteed Withdrawal Amount until the Benefit Base is depleted to zero;
•  no less than the Lifetime Income Amount during the lifetime of the surviving Covered Person (the Lifetime Income Amount may be lower than the Guaranteed Withdrawal Amount and the duration of settlement payments based on the Lifetime Income Amount may be longer or shorter than the duration of settlement payments based on the Guaranteed Withdrawal Amount); or
•  based on amounts we calculate under our Life Expectancy Distribution Program (see “Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
    
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person under Principal Plus for Life Plus Spousal Protection Rider. If the surviving Covered Person dies while the Rider is in effect and the Beneficiary does not take the death benefit under the Contract as a lump sum or as an Annuity Option, the Rider will continue if the death benefit or the Benefit Base is greater than zero at the time. We will step up the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit, and treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base and the Guaranteed Withdrawal Amount. The Rider will not continue to provide for any remaining Credits or Step-Ups, and will not continue with respect to the Lifetime Income Amount. If the Rider continues, the Rider fee will continue (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). We will permit the Beneficiary to opt out of the initial death benefit Step-Up, if any, if we increase the rate of the Rider fee at that time. The Rider will enter its Settlement Phase if the Benefit Base is still greater than zero when distributions of death benefits under a Contract deplete any remaining death benefit proceeds to zero.
If the surviving Covered Person dies during the Settlement Phase, we will reduce the Lifetime Income Amount to zero. If the Beneficiary at that time is the Spouse of the decedent, that Spouse may choose the amount of any remaining settlement payments up to the Guaranteed Withdrawal Amount. An individual Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death. When settlement payments deplete the Benefit Base to zero, the Rider terminates and we make no additional payments to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see “Covered Person” in the definitions above). If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, the Rider may continue in certain cases as described in “Death of Last Covered Person under Principal Plus for Life Plus Spousal Protection Rider” above.
Termination of Rider
You may not terminate a Principal Plus or Principal Plus for Life Series Rider once it is in effect. The respective Rider terminates automatically, however, upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; or
•  under Principal Plus, the date the Benefit Base depletes to zero; or
•  under Principal Plus for Life Series Riders, the date the Contract Value, the Benefit Base and the Lifetime Income Amount all equal zero; or
•  under Principal Plus, the Maturity Date under the Contract; or
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•  under Principal Plus for Life Series Riders, the date an Annuity Option begins; or
•  the date a new guaranteed minimum withdrawal benefit Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
Features of Principal Returns Rider
Form of Guarantee
The Principal Returns Rider provides a guaranteed minimum withdrawal benefit during the Accumulation Period that guarantees the return of initial Purchase Payments (i.e., the cumulative Purchase Payments you pay for your Contract, up to a $5 million limit, from the date the Rider goes into effect until the next following Contract Anniversary), regardless of market performance, as long as you limit your annual withdrawals to a Guaranteed Withdrawal Amount (see below).
In addition, the Rider provides our guarantee that, as long as you take no withdrawals of Contract Value during the first 10 Contract Years, your Contract Value at the end of that period will not be less than the greater of (a) the amount of your initial Purchase Payments (up to $5 million) or (b) your Contract Value plus the sum of all Principal Returns Rider fees paid to date. Please read the discussion of the Ten Year Credit, below, for more details.
The Rider does not provide a lifetime income guarantee.
Benefit Base
The Rider refers to the Benefit Base as the “Guaranteed Withdrawal Balance.” The Benefit Base we use to determine the initial Guaranteed Withdrawal Amount is equal to your initial Purchase Payments. If we allowed you to purchase the Rider after the first Contract Year, we may have determined the Benefit Base by using your Contract Value after the first Contract Year.
The maximum Benefit Base at any time is $5 million. We increase the Benefit Base to reflect Additional Purchase Payments and Step-Ups. We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
Benefit Rate
The Benefit Rate is 8%.
Guaranteed Withdrawal Amount
The Guaranteed Withdrawal Amount is the amount we guarantee to be available each Contract Year for you to withdraw during the Accumulation Phase until the Benefit Base is depleted. The initial Guaranteed Withdrawal Amount is equal to 8% of the initial Benefit Base. The maximum Guaranteed Withdrawal Amount at any time is $400,000.
Although this Rider guarantees minimum annual withdrawal amounts, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. If you take withdrawals for more than the annual amounts permitted under the terms of the Principal Returns Rider, however, we may reduce the guaranteed minimum amounts. If you take withdrawals during the first 10 Contract Years, you are no longer eligible for our tenth year Accumulation Benefit. Please read the discussion of the Ten Year Credit, below, for more details.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under the Principal Returns Rider (see “Restrictions on Additional Purchase Payments,” above).
We increase the Benefit Base (i.e., the Guaranteed Withdrawal Balance in your Rider) by the amount of each Additional Purchase Payment we accept, subject to the maximum Benefit Base limit of $5 million. In addition, we recalculate the Guaranteed Withdrawal Amount, and usually increase it, to equal the lesser of:
•  8% of the Benefit Base immediately after the Purchase Payment; or
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•  the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus an amount equal to 8% of the Additional Purchase Payment.
We do not change the Guaranteed Withdrawal Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount before the Additional Purchase Payment. Additional Purchase Payments during Contract Years Two through Ten may decrease the amount credited to your Contract Value under the Rider’s Accumulation Benefit (see following section).
Accumulation Benefit (not available for Riders issued in the state of Washington).
As long as you take no withdrawals during the first ten years that your Principal Returns Rider is in effect, we calculate and, to the extent necessary, apply a credit at the end of the period so that your Contract Value equals the greater of:
•  the amount of your initial Purchase Payments, up to $5 million; or
•  your Contract Value at the end of the ten-year period plus the sum of all Principal Returns Rider fees paid to that date.
Your initial Purchase Payments, for these purposes, means all Purchase Payments you make during the first Contract Year in which you purchased the Rider, up to $5 million. If you make any Additional Purchase Payments during Contract years two through ten, your Contract Value at the end of the Credit Period reflects these additional investments. These Additional Purchase Payments could reduce the amount that we would otherwise credit to your Contract Value, and therefore could reduce your ability to recover investment losses, if any, on your initial Purchase Payments.
If you qualify, we determine an Accumulation Benefit on your 10th Contract Anniversary and credit it to your Contract Value. We apply the Accumulation Benefit, if any, to each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value.
You are not eligible for an Accumulation Benefit if you take a withdrawal of Contract Value, including any required minimum distribution from a Qualified Contract or any withdrawal of death benefit proceeds, during the first 10 Contract Years.
Step-Ups. The Principal Returns Rider provides Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts.
We schedule Step-Up Dates for the 3rd, 6th and 9th Contract Anniversary after the Contract Date. After the 9th Contract Anniversary, we increase the schedule of Step-Up Dates to include each succeeding Contract Anniversary (i.e., the 10th, 11th, 12th, etc.) up to and including the Age 95 Contract Anniversary. You are no longer eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
On each Step-Up Date, we compare the Benefit Base to the Contract Value on that date. If the Contract Value on any Step-Up Date is greater than the Benefit Base on that date, we automatically increase the Benefit Base to equal the Contract Value (up to a maximum Benefit Base of $5 million). Each time we recalculate a Step-Up, we also recalculate the Guaranteed Withdrawal Amount. The recalculated Guaranteed Withdrawal Amount equals the greater of the current Guaranteed Withdrawal Amount or 8% of the new Benefit Base.
Impact of Step-Ups on Rider Fees. Each time we increase the Benefit Base, we also increase the dollar amount of the Rider fee. The new Rider fee will be based on the new Benefit Base. We reserve the right to increase the rate of the fee on any Step-Up Date, up to a maximum rate of 0.95%. If we decide to increase the rate at the effective date of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the Step-Up (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Declination of Step-Ups. If you decline an automatic Step-Up, you will have the option to elect to step up the Benefit Base (as well as the Guaranteed Withdrawal Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base at that time, we will thereafter resume automatic Step-Ups.
Withdrawals, Distributions and Settlements
Overview. Although the Rider guarantees a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Guaranteed Withdrawal Amount values if you take Excess Withdrawals. If you experience unfavorable investment
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performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Guaranteed Withdrawal Amount could be significantly reduced.
We reduce your Contract Value each time you take a withdrawal. We may reduce the Benefit Base and Guaranteed Withdrawal Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Guaranteed Withdrawal Amount values.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider. Your future Guaranteed Withdrawal Amount could be significantly reduced if your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
An Excess Withdrawal under a Principal Returns Rider is a withdrawal (including applicable withdrawal charges) you take that, together with all other withdrawals (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Guaranteed Withdrawal Amount at the time of the withdrawal.
We do not consider withdrawals under our Life Expectancy Distribution Program to result in Excess Withdrawals under the Rider unless you take additional withdrawals outside of that program.
Impact of Withdrawals. We decrease the Benefit Base each time you make a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we decrease the Benefit Base by the amount of the withdrawals. If an Excess Withdrawal is the result of your total withdrawals during a Contract Year exceeding the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we automatically recalculate, and in most cases reduce, the Benefit Base to equal the lesser of:
•  the Contract Value immediately after the withdrawal; or
•  the Benefit Base immediately prior to the withdrawal minus the amount of the withdrawal.
Each time we recalculate the Benefit Base, we also recalculate, and in most cases reduce, the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount equals the lesser of:
•  the Guaranteed Withdrawal Amount prior to the withdrawal; or
•  8% of the greater of: (a) the Contract Value after the withdrawal; or (b) the new Benefit Base value.
We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year.
If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we recalculate amounts we guarantee for future withdrawals. We may recalculate and reduce the Benefit Base and Guaranteed Withdrawal Amount by amounts that exceed the amount of your withdrawals. A recalculation also may reduce the total amount guaranteed to an amount less than the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount values.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with a Principal Returns Rider, you may be able to pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide automatic payment of withdrawals. The full allowable amount is based on the Guaranteed Withdrawal Amount (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Principal Returns Rider (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our automatic Life Expectancy Distribution Program reduces your Contract Value and Benefit Base. We do not allow any further withdrawals under the program if both the Contract Value and the Benefit Base are depleted to zero.
If you begin taking Life Expectancy Distributions during the first 10 Contract Years, you no longer qualify for the Rider’s Accumulation Benefit at your 10th Contract Anniversary.
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Settlement Phase. The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year; and
•  there were no Excess Withdrawals during that Contract Year; and
•  the Benefit Base is still greater than zero at the time.
Settlement Payments during Principal Returns Settlement Phase. At the beginning of the Principal Returns Settlement Phase, you may choose settlement payments that total an amount no greater than the Guaranteed Withdrawal Amount, or Life Expectancy Distributions if applicable, to be paid to you automatically each Contract Year until the Benefit Base depletes to zero (see “Life Expectancy Distribution Program”). If the Guaranteed Withdrawal Amount or the Life Expectancy Distribution, if applicable, for a Contract Year exceeds the Benefit Base, however, then the settlement payment for that Contract Year will be limited to the Benefit Base. The settlement payments will be paid no less frequently than annually. If any Owner dies during the Settlement Phase, remaining settlement payments will be paid to the Beneficiary and are subject to the distribution provisions described in “Accumulation Period Provisions – Death Benefit During Accumulation Period” section of the Prospectus.
This provision is also applicable if the Beneficiary does not take the death benefit as a lump sum and the Principal Returns Rider continues (as described in “Impact of Death Benefits” below) and death benefit distributions deplete the death benefit to zero. When this occurs, settlement payments made in the Settlement Phase are subject to the distribution provisions of the “Death Benefit Before Maturity Date” section of the Contract, described in the “Accumulation Period Provisions – Death Benefit During Accumulation Period” provision of the Prospectus.
Impact of Death Benefits. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, the Principal Returns Rider will end if the Beneficiary takes the death benefit as a lump sum.
Continuation of Principal Returns. If the Beneficiary elects not to take the death benefit as a lump sum, then the Principal Returns Rider:
•  Continues if the Benefit Base is greater than zero.
•  Steps up the Benefit Base to equal the death benefit if the death benefit on the date of determination is greater than the Benefit Base.
•  Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Benefit Base is still greater than zero. (Death benefit distributions will be treated as withdrawals. Some methods of death benefit distribution may result in distribution amounts that exceed the Guaranteed Withdrawal Amount and the Life Expectancy Distribution amount. In such cases, we may recalculate and reduce the Benefit Base, and reduce the guaranteed minimum withdrawal benefit provided under this Rider).
•  Continues to impose the Rider fee.
•  Continues to be eligible for any remaining Step-Ups, but we will change the date we determine and apply these benefits to the future anniversaries of the date we determine the initial death benefit. Remaining eligible Step-Up Dates will also be measured beginning from the death benefit determination date.
•  Ends any remaining Step-Ups on the Age 95 Contract Anniversary date based on the date the deceased owner would have turned age 95, unless the Beneficiary is older than the deceased owner. If so, any remaining Step-Ups end on the Age 95 Contract Anniversary date based on the birthdate of the Beneficiary.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and the Principal Returns Rider continues, we will determine the annual Rider fee (and the Adjusted Benefit Base) based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Returns Rider. If the Beneficiary is the deceased Owner’s Spouse, the surviving Spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. An individual Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
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Termination of Rider
You may not terminate the Principal Returns Rider once it is in effect. The Rider terminates automatically, however, upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; or
•  the date the Benefit Base and the Contract Value both deplete to zero; or
•  the date an Annuity Option under the Contract begins; or
•  the date a new guaranteed minimum withdrawal benefit Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
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Appendix D: Optional Guaranteed Minimum Income Benefits
This Appendix provides a general description of the optional guaranteed minimum income benefit Riders that may have been available at the time you purchased a Venture® Contract. If you purchased an optional guaranteed minimum income benefit Rider, you will pay the charge shown in the Fee Tables for that benefit as long as it is in effect.
You should carefully review your Contract, including any attached Riders, for complete information on benefits, conditions and limitations of any guaranteed minimum income benefit Riders applicable to your Contract. You should also carefully review “VII. Federal Tax Matters” for information about optional benefit Riders.
The following is a list of the various optional guaranteed minimum income benefits that may have been available to you at issue. Not all Riders were available at the same time or in all states.
John Hancock USA
•  Guaranteed Retirement Income Program I
•  Guaranteed Retirement Income Program II
•  Guaranteed Retirement Income Program III
John Hancock New York
•  Guaranteed Retirement Income Program I
•  Guaranteed Retirement Income Program II
The optional Guaranteed Retirement Income Programs guarantee a minimum lifetime fixed income benefit in the form of fixed monthly annuity payments. The amount of these payments is determined by applying an Income Base to the Monthly Income Factors described in the Guaranteed Retirement Income Benefit Rider. If the Guaranteed Retirement Income Benefit is exercised and the monthly annuity payments available under the Contract are greater than the monthly annuity payments provided by Guaranteed Retirement Income Benefit, we will pay the monthly annuity payments available under the Contract. The Guaranteed Retirement Income Benefit Riders were available only at Contract issue. The Riders are irrevocable and may only be terminated as described below.
John Hancock USA
Availability of Guaranteed Retirement Income Program
John Hancock USA offered three versions of the Guaranteed Retirement Income Program. Guaranteed Retirement Income Program I was available for Contracts issued between May 1998 and June 2001 (beginning and end dates may vary by state). Guaranteed Retirement Income Program II was available for Contracts issued between July 2001 and May 2003 (beginning and end dates may vary by state). Guaranteed Retirement Income Program III was available for Contracts issued between May 2003 and May 2004 (beginning and end dates may vary by state). We describe differences between Guaranteed Retirement Income Program I, Guaranteed Retirement Income Program II and Guaranteed Retirement Income Program III are described below.
Conditions of Exercise. The Guaranteed Retirement Income Program benefit may be exercised subject to the following conditions:
•  may not be exercised until the 10th Contract Anniversary (7th Contract Anniversary for Guaranteed Retirement Income Program I) and then must be exercised within 30 days immediately following the 10th Contract Anniversary (7th Contract Anniversary for Guaranteed Retirement Income Program I) or a subsequent Contract Anniversary; and
•  must be exercised by the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the 10th Contract Anniversary, if later.
Guaranteed Retirement Income Program I
The Income Base applied in determining the amount of Guaranteed Retirement Income Program annuity payments is defined below. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Program benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply.
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The Income Base is used solely for purposes of calculating the Guaranteed Retirement Income Program monthly annuity payments and does not provide a Contract Value or guarantee performance of any Investment Option.
Income Base. The Income Base is equal to (a) less (b), where:
(a)  is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and
(b)  is the sum of Income Base reductions (defined below) in connection with withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs.
Guaranteed Retirement Income Program I Growth Factor. The growth factor for Guaranteed Retirement Income Program I is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Income Base Reductions. Withdrawals will reduce the Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Income Base immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Step-Up of Income Base. Within 30 days immediately following any Contract Anniversary, you may elect in writing to step up the Income Base to the Contract Value on that Contract Anniversary. If you elect to step up the Income Base, the earliest date that you may exercise the Guaranteed Retirement Income Program is extended to the 7th Contract Anniversary following the date the Step-Up is effective (the Step-Up Date).
Following a Step-Up of the Income Base, the Income Base as of the Step-Up Date is equal to the Contract Value on the Step-Up Date. For purposes of subsequent calculation of the Income Base, the Contract Value on the Step-Up Date will be treated as a Purchase Payment made on that date, and all Purchase Payments made and all amounts deducted in connection with withdrawals prior to the Step-Up Date will not be considered.
Guaranteed Retirement Income Program II and Guaranteed Retirement Income Program III
The Income Base applied in determining the amount of Guaranteed Retirement Income Program annuity payments is the greater of (i) the Growth Factor Income Base or (ii) the Step-Up Income Base. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Program benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply.
The Income Base is used solely for purposes of calculating the Guaranteed Retirement Income Program monthly annuity payments and does not provide a Contract Value or guarantee performance of any Investment Option.
Growth Factor Income Base
The Growth Factor Income Base is equal to (a) less (b), where:
(a)  is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and
(b)  is the sum of Income Base reductions (defined below) in connection with withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs.
Guaranteed Retirement Income Program II Growth Factor. The growth factor for Guaranteed Retirement Income Program II is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Guaranteed Retirement Income Program III Growth Factor. The growth factor for Guaranteed Retirement Income Program III is 5% per annum if the oldest Annuitant is 75 or younger at issue, and 3% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Step-Up Income Base. The Step-Up Income Base is equal to the greatest anniversary value after the effective date of the Guaranteed Retirement Income Program and prior to the oldest Annuitant’s 81st birthday. The anniversary value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less any Income Base reductions (defined below) in connection with withdrawals since the last day of the Contract Year.
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Guaranteed Retirement Income Program II Income Base Reductions. Withdrawals will reduce the Growth Factor Income Base and the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Growth Factor Income Base or the Step-Up Income Base, as appropriate, immediately prior to the withdrawal; and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Guaranteed Retirement Income Program III Income Base Reductions. If total withdrawals taken during a Contract Year are no greater than the Annual Withdrawal Limit then the Withdrawal Reduction reduces the Growth Factor Income Base on the next Contract Anniversary by the dollar amount of the withdrawal. If total withdrawals taken during a Contract Year are greater than the Annual Withdrawal Limit, then the Withdrawal Reduction will instead reduce the Growth Factor Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Growth Factor Income Base immediately prior to the withdrawal; and (ii) is equal to the Withdrawal Amount divided by the Contract Value prior to the withdrawal. In any Contract Year, the Annual Withdrawal Limit is determined by multiplying the Growth Factor Income Base on the previous Contract Anniversary by the growth factor indicated above.
Withdrawals will reduce the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Step-Up Income Base immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Monthly Income Factors Available for Guaranteed Retirement Income Program I, Guaranteed Retirement Income Program II and Guaranteed Retirement Income Program III
The Income Base may be applied to Monthly Income Factors to purchase a guaranteed lifetime income under the following Annuity Options which are described in “V. Description of the Contract – Pay-out Period Provisions – Annuity Options.”
Life Annuity with a 10-Year Period Certain – Available for Contracts with Guaranteed Retirement Income Program I, Guaranteed Retirement Income Program II and Guaranteed Retirement Income Program III.
Joint and Survivor Life Annuity with a 20-Year Period Certain – Available for Contracts with Guaranteed Retirement Income Program I and Guaranteed Retirement Income Program II issued prior to January 27, 2003 (availability may vary by state).
Joint and Survivor Life Annuity with a 10-Year Period Certain – Available for Contracts with Guaranteed Retirement Income Program III and for Contracts issued with Guaranteed Retirement Income Program II on or after January 27, 2003 (availability may vary by state).
The Monthly Income Factors are described in the Guaranteed Retirement Income Program Rider. When you exercise a Guaranteed Retirement Income Program, actual income will be based on the greater of (i) your Income Base at Monthly Income Factors, or (ii) your Contract Value at current annuity payment rates. (The Income Base cannot be applied to current annuitization rates.)
If your Contract has been issued with a Guaranteed Retirement Income Program Rider, the Annuitant may only be changed to an individual that is the same age or younger than the oldest current Annuitant. A change of Annuitant will not affect the Income Base calculation.
Guaranteed Retirement Income Program Fee
The risk assumed by us associated with a Guaranteed Retirement Income Program is that annuity benefits payable under a Guaranteed Retirement Income Program are greater than annuity benefits that would have been payable if you had selected another annuity benefit permitted by the Contract. To compensate us for this risk, we charge an annual fee (the “Guaranteed Retirement Income Program Fee”). On or before the Maturity Date, the Guaranteed Retirement Income Program Fee is deducted on each Contract Anniversary. The amount of the Guaranteed Retirement Income Program Fee is equal to the percentage from the table below multiplied by the Income Base in effect on that Contract Anniversary. The Guaranteed Retirement Income Program Fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
Guaranteed Retirement Income Program Rider Annual Fee
Guaranteed Retirement Income Program I 0.25%
Guaranteed Retirement Income Program II 0.45%
Guaranteed Retirement Income Program III 0.50%
D-3

 

If there is a full withdrawal of Contract Value on any date other than the Contract Anniversary, we will deduct a pro-rata portion of the Guaranteed Retirement Income Program Fee from the amount paid upon withdrawal. In the case of a full withdrawal, the Guaranteed Retirement Income Program Fee will be multiplied by the Income Base immediately prior to withdrawal. The Guaranteed Retirement Income Program Fee will not be deducted during the Pay-out Period. For purposes of determining the Guaranteed Retirement Income Program Fee, the commencement of annuity payments will be treated as a full withdrawal.
Termination of Guaranteed Retirement Income Program
A Guaranteed Retirement Income Program will terminate upon the earliest to occur of:
•  the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the tenth Contract Anniversary, if later;
•  the termination of the Contract for any reason; or
•  the exercise of the Guaranteed Retirement Income Program benefit.
Qualified Plans
The use of Guaranteed Retirement Income Programs is limited in connection with its use under Qualified Plans, including an IRA, because of the minimum distribution requirements imposed by federal tax law on these plans. In general, if a Guaranteed Retirement Income Program is not exercised under a Qualified Plan while you are alive, your Beneficiary may be unable to exercise the benefit under a Guaranteed Retirement Income Program. Changes in federal tax laws may also limit a Beneficiary’s ability to receive benefits under the Guaranteed Retirement Income Program.
Hence, you should consider that because (a) a Guaranteed Retirement Income Program may not be exercised until the 10th Contract Anniversary after its election (7th Contract Anniversary for Guaranteed Retirement Income Program I) and (b) the election of a Guaranteed Retirement Income Program is irrevocable, there can be circumstances under a Qualified Plan in which a Guaranteed Retirement Income Program Fee (discussed above) will be imposed, even though the Guaranteed Retirement Income Program may not be exercised because of the restrictions imposed by the minimum distribution requirements. Please consult your own qualified tax professional.
In addition, the presence of an optional benefit, such as a Guaranteed Retirement Income Program, could affect the amount of the required minimum distribution that must be made under your Contract.
In order to comply with applicable federal income tax laws, in some circumstances, we will shorten the guarantee period under an Annuity Option so that it does not exceed the life expectancy of the Annuitant, or the joint life expectancies of the joint Annuitants, depending on the Annuity Option chosen. Once the guarantee period is shortened upon exercise of a Guaranteed Retirement Income Program, it will not be further reduced. The guarantee period will never be increased based on the life expectancy of the Annuitant or at any other time or due to any other event.
Guaranteed Retirement Income Programs do not provide Contract Value or guarantee performance of any Investment Option. Because this benefit is based on conservative actuarial factors, the level of lifetime income that it guarantees may often be less than the level that would be provided by application of Contract Value at current annuity factors. Therefore, Guaranteed Retirement Income Programs should be regarded as a safety net. As described above under “Income Base,” withdrawals will reduce the Guaranteed Retirement Income Program benefit.
John Hancock New York
Availability of Guaranteed Retirement Income Program
John Hancock New York offered two versions of the Guaranteed Retirement Income Program. Guaranteed Retirement Income Program I was available for Contracts issued between September 10, 2001, and July 21, 2003. Guaranteed Retirement Income Program II was available for Contracts issued between December 2, 2002 and June 11, 2004. Any differences between Guaranteed Retirement Income Program I and Guaranteed Retirement Income Program II are described below.
D-4

 

Conditions of Exercise. The Guaranteed Retirement Income Program benefit may be exercised subject to the following conditions:
•  may not be exercised until the 10th Contract Anniversary and then must be exercised within 30 days immediately following the 10th Contract Anniversary or a subsequent Contract Anniversary; and
•  must be exercised by the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the 10th Contract Anniversary, if later.
Income Base
The Income Base applied in determining the amount of Guaranteed Retirement Income Program annuity payments is the greater of (i) the Growth Factor Income Base (Guaranteed Retirement Income Program II only) or (ii) the Step-Up Income Base. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Program benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply.
The Income Base is used solely for purposes of calculating the Guaranteed Retirement Income Program monthly annuity payments and does not provide a Contract Value or guarantee performance of any Investment Option.
Growth Factor Income Base (Guaranteed Retirement Income Program II only). The Growth Factor Income Base is equal to (a) less (b), where:
(a)  is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and
(b)  is the sum of Income Base reductions (defined below) in connection with withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs.
Growth Factor. The growth factor for Guaranteed Retirement Income Program II is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Step-Up Income Base. The Step-Up Income Base is equal to the greatest anniversary value after the effective date of the Guaranteed Retirement Income Program and prior to the oldest Annuitant’s 81st birthday. The anniversary value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less any Income Base reductions (defined below) in connection with withdrawals since the last day of the Contract Year.
Income Base Reductions. Withdrawals will reduce the Growth Factor Income Base and the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Growth Factor Income Base or the Step-Up Income Base, as appropriate, immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Withdrawals will reduce the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Step-Up Income Base immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Monthly Income Factors. The Income Base may be applied to Monthly Income Factors to purchase a guaranteed lifetime income under the following Annuity Options which are described in “V. Description of the Contract – Pay-out Period Provisions – Annuity Options”:
•  Life Annuity with a 10-Year Period Certain;
•  Joint and Survivor Life Annuity with a 20-Year Period Certain.
The Monthly Income Factors are described in the Guaranteed Retirement Income Program Rider. When you exercise Guaranteed Retirement Income Program, actual income will be based on the greater of (i) your Income Base at Monthly Income Factors, or (ii) your Contract Value at current annuity payment rates. (The Income Base cannot be applied to current annuitization rates).
If your Contract has been issued with a Guaranteed Retirement Income Program Rider, the Annuitant may only be changed to an individual that is the same age or younger than the oldest current Annuitant. A change of Annuitant will not affect the Income Base calculation.
D-5

 

Guaranteed Retirement Income Program Fee
The risk assumed by us associated with a Guaranteed Retirement Income Program is that annuity benefits payable under a Guaranteed Retirement Income Program are greater than annuity benefits that would have been payable if you had selected another annuity benefit permitted by the Contract. To compensate us for this risk, we charge an annual fee (the “Guaranteed Retirement Income Program Fee”). On or before the Maturity Date, the Guaranteed Retirement Income Program Fee is deducted on each Contract Anniversary.
The amount of the Guaranteed Retirement Income Program Fee is equal to the percentage from the table below multiplied by the Income Base in effect on that Contract Anniversary. The Guaranteed Retirement Income Program Fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
Guaranteed Retirement Income Program Rider Annual Fee
Guaranteed Retirement Income Program I 0.30%
Guaranteed Retirement Income Program II 0.45%
If there is a full withdrawal of Contract Value on any date other than the Contract Anniversary, we will deduct a pro-rata portion of the Guaranteed Retirement Income Program Fee from the amount paid upon withdrawal. In the case of a full withdrawal, the Guaranteed Retirement Income Program Fee will be multiplied by the Income Base immediately prior to withdrawal. The Guaranteed Retirement Income Program Fee will not be deducted during the Pay-out Period. For purposes of determining the Guaranteed Retirement Income Program Fee, the commencement of annuity payments will be treated as a full withdrawal.
Termination of Guaranteed Retirement Income Program
A Guaranteed Retirement Income Program will terminate upon the earliest to occur of:
•  the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the tenth Contract Anniversary, if later;
•  the termination of the Contract for any reason; or
•  the exercise of the Guaranteed Retirement Income Program benefit.
Qualified Plans
The use of a Guaranteed Retirement Income Program is limited in connection with its use under Qualified Plans, including an IRA, because of the minimum distribution requirements imposed by federal tax law on these plans. In general, if a Guaranteed Retirement Income Program is not exercised under a Qualified Plan while you are alive, your Beneficiary may be unable to exercise the benefit under a Guaranteed Retirement Income Program. Changes in federal tax laws may also limit a Beneficiary’s ability to receive benefits under the Guaranteed Retirement Income Program.
You should consider that because (a) a Guaranteed Retirement Income Program may not be exercised until the 10th Contract Anniversary after its election and (b) the election of Guaranteed Retirement Income Program is irrevocable, there can be circumstances under a Qualified Plan in which a Guaranteed Retirement Income Program Fee (discussed above) will be imposed, even though a Guaranteed Retirement Income Program may not be exercised because of the restrictions imposed by the minimum distribution requirements. Please consult your own qualified tax professional.
In addition, the presence of an optional benefit, such as a Guaranteed Retirement Income Program, could affect the amount of the required minimum distribution that must be made under your Contract.
In order to comply with applicable federal income tax laws, in some circumstances, we will shorten the guarantee period under an Annuity Option so that it does not exceed the life expectancy of the Annuitant, or the joint life expectancies of the co-Annuitants, depending on the Annuity Option chosen. Once the guarantee period is shortened upon exercise of a Guaranteed Retirement Income Program, it will not be further reduced. The guarantee period will never be increased based on the life expectancy of the Annuitant or at any other time or due to any other event.
Guaranteed Retirement Income Programs do not provide Contract Value or guarantee performance of any Investment Option. Because this benefit is based on conservative actuarial factors, the level of lifetime income that it guarantees may often be less than the level that would be provided by application of Contract Value at current annuity factors.
D-6

 

Therefore, a Guaranteed Retirement Income Program should be regarded as a safety net. As described above under “Income Base,” withdrawals will reduce the Guaranteed Retirement Income Program benefit.
D-7

 

Appendix U: Tables of Accumulation Unit Values
The following table provides information about Variable Investment Options available under the Contracts described in this Prospectus. We present this information in columns that compare the value of various classes of accumulation units for each Variable Investment Option during the periods shown.
We use accumulation units to measure the value of your investment in a particular Variable Investment Option. Each accumulation unit reflects the value of underlying shares of a particular Portfolio (including dividends and distributions made by that Portfolio), as well as the charges we deduct on a daily basis for Separate Account Annual Expenses (see “III. Fee Tables” for additional information on these charges).
The table contains information on different classes of accumulation units because we deduct different levels of daily charges. In particular, the table shows accumulation units reflecting the daily charges for:
•  Venture® 2006 Contracts with no optional benefit Riders
•  Venture® 2006 Contracts with the Annual Step-Up Death Benefit Rider
•  Venture ® 2006 Contracts issued by John Hancock New York with the Annual Step-Up Death Benefit Rider and the Payment Enhancement optional benefit Rider.
•  Ven 24, Ven 22 and Ven 20 Contracts with no optional benefit Riders;
•  Ven 22 and Ven 20 Contracts with the Guaranteed Earnings Multiplier optional benefit Rider;
•  Ven 24 Contracts with the Payment Enhancement optional benefit Rider;
•  Ven 9, Ven 6 and Ven 7 Contracts with no optional benefit Riders;
•  Ven 3 Contracts with no optional benefit Riders.
Please note that fees for the Guaranteed Retirement Income Program I, Guaranteed Retirement Income Program II, Guaranteed Retirement Income Program III and Triple Protection Death Benefit Riders, and fees for GMWB Riders, are deducted from Contract Value and, therefore, are not reflected in the accumulation unit values.
U-1

Table of Contents

 

Venture Prior

 

John Hancock Life Insurance Company (U.S.A.) Separate Account H

 

John Hancock Life Insurance Company of New York Separate Account A

 

Accumulation Unit Values- Venture Variable Annuity

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
    12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
500 Index Trust (merged into 500 Index Trust B eff 11-02-2012) - Series I Shares (units first credited 05-01-2000)    
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year   — — — — — — — 10.658 10.641 9.418
Value at End of Year   — — — — — — — — 10.658 10.641
Ven 22, 20 No. of Units   — — — — — — — — 1,864,827 2,169,926
Ven 24 No. of Units   — — — — — — — — 67,294 76,201
Ven 22, 20 Contracts with GEM                      
Value at Start of Year   — — — — — — — 11.281 11.285 10.008
Value at End of Year   — — — — — — — — 11.281 11.285
No. of Units   — — — — — — — — 20,607 25,524
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year   — — — — — — — 10.545 10.565 9.383
Value at End of Year   — — — — — — — — 10.545 10.565
No. of Units   — — — — — — — — 76,762 105,546
Ven 9, 8,7 Contracts with no Optional Riders                    
Value at Start of Year   — — — — — — — 10.658 10.641 9.418
Value at End of Year   — — — — — — — — 10.658 10.641
Ven 7, 8 No. of Units   — — — — — — — — 185,568 202,252
Ven 9 No. of Units   — — — — — — — — 30,346 42,223
Ven 3 Contracts with no Optional Riders                    
Value at Start of Year   — — — — — — — 10.658 10.641 9.418
Value at End of Year   — — — — — — — — 10.658 10.641
No. of Units   — — — — — — — — 20,927 20,605
500 Index Trust (merged into 500 Index Trust B eff 11-02-2012) - Series II Shares (units first credited 05-13-2002)    
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year   — — — — — — — 14.486 14.491 12.858
Value at End of Year   — — — — — — — — 14.486 14.491
Ven 22, 20 No. of Units   — — — — — — — — 683,763 773,935
Ven 24 No. of Units   — — — — — — — — 327,702 377,045
Ven 22, 20 Contracts with GEM                      
Value at Start of Year   — — — — — — — 14.209 14.242 12.663
Value at End of Year   — — — — — — — — 14.209 14.242
No. of Units   — — — — — — — — 67,237 73,330
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year   — — — — — — — 14.005 14.059 12.519
Value at End of Year   — — — — — — — — 14.005 14.059
No. of Units   — — — — — — — — 113,058 148,465
500 Index Trust (formerly 500 Index Trust B) - Series I Shares (units first credited 11-02-2012)      
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 22.709 24.165 20.164 18.324 18.380 16.447 12.132 12.500 — —
Value at End of Year 29.347 22.709 24.165 20.164 18.324 18.380 16.447 12.132 — —
Ven 22, 20 No. of Units 2,199,709 2,414,510 2,679,313 3,091,344 1,163,615 1,266,264 1,417,987 1,549,792 — —
Ven 24 No. of Units 66,784 69,570 73,450 82,629 56,510 66,222 62,118 63,829 — —
Ven 22, 20 Contracts with GEM                      
Value at Start of Year 22.430 23.917 19.997 18.209 18.301 16.409 12.629 12.500 — —
Value at End of Year 28.930 22.430 23.917 19.997 18.209 18.301 16.409 12.629 — —
No. of Units 12,385 12,577 20,266 20,122 8,459 15,003 17,262 20,574 — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 22.224 23.732 19.873 18.123 18.242 16.381 12.626 12.500 — —
Value at End of Year 28.620 22.224 23.732 19.873 18.123 18.242 16.381 12.626 — —
No. of Units 42,902 63,846 65,151 69,572 41,696 48,690 51,889 61,937 — —
Ven 9, 8,7 Contracts with no Optional Riders                    
Value at Start of Year 22.709 24.165 20.164 18.324 18.380 16.447 12.633 12.500 — —
Value at End of Year 29.347 22.709 24.165 20.164 18.324 18.380 16.447 12.633 — —
Ven 7, 8 No. of Units 1,222,142 1,430,308 1,616,616 1,799,221 125,010 136,529 132,068 162,238 — —
Ven 9 No. of Units 319,886 338,247 387,232 426,434 31,262 51,405 30,065 27,389 — —

 

U- 2

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 22.709 24.165 20.164 18.324 18.380 16.447 12.633 12.500 — —
Value at End of Year 29.347 22.709 24.165 20.164 18.324 18.380 16.447 12.633 — —
No. of Units 177,096 176,186 186,791 200,287 22,326 29,379 26,814 20,170 — —
Ven 1 Contracts with no Optional Riders                  
Value at Start of Year 14.705 15.662 13.081 12.500 — — — — — —
Value at End of Year 18.992 14.705 15.662 13.081 — — — — — —
No. of Units 21,583 21,621 21,665 22,496 — — — — — —
500 Index Trust (formerly 500 Index Trust B) - Series II Shares (units first credited 11-02-2012)      
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 14.800 15.717 13.088 12.500 — — — — — —
Value at End of Year 19.169 14.800 15.717 13.088 — — — — — —
Venture No. of Units 129,999 109,218 108,970 92,502 — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 22.429 23.915 19.996 18.207 18.306 16.406 12.633 12.500 — —
Value at End of Year 28.936 22.429 23.915 19.996 18.207 18.306 16.406 12.633 — —
Ven 22, 20 No. of Units 486,181 515,802 564,370 650,208 536,455 583,266 648,741 805,208 — —
Ven 24 No. of Units 305,667 324,356 342,654 333,507 279,198 280,419 338,762 373,505 — —
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 22.155 23.670 19.830 18.092 18.227 16.368 12.629 12.500 — —
Value at End of Year 28.525 22.155 23.670 19.830 18.092 18.227 16.368 12.629 — —
No. of Units 7,795 13,581 40,909 42,858 41,146 44,656 46,654 33,543 — —
Ven 24 Contracts with Payment Enhancement                
Value at Start of Year 21.951 23.488 19.707 18.006 18.168 16.339 12.626 12.500 — —
Value at End of Year 28.220 21.951 23.488 19.707 18.006 18.168 16.339 12.626 — —
No. of Units 58,039 56,269 63,459 65,053 62,693 104,473 76,432 106,569 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 14.735 15.679 13.083 12.500 — — — — — —
Value at End of Year 19.047 14.735 15.679 13.083 — — — — — —
Venture No. of Units 3,648 8,115 3,652 18,034 — — — — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 22.429 23.915 19.996 12.500 — — — — — —
Value at End of Year 28.936 22.429 23.915 19.996 — — — — — —
Ven 9 No. of Units 318 329 341 352 — — — — — —
Active Bond Trust - Series I Shares (units first credited 04-29-2005)              
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 19.604 20.002 19.346 18.803 19.036 18.073 18.283 16.901 16.198 14.428
Value at End of Year 21.120 19.604 20.002 19.346 18.803 19.036 18.073 18.283 16.901 16.198
Ven 22, 20 No. of Units 400,892 398,188 452,035 505,990 558,330 599,955 491,586 751,502 915,605 1,072,347
Ven 24 No. of Units 8,242 8,611 9,307 10,295 12,377 14,017 15,781 19,370 25,301 43,758
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 19.075 19.501 18.900 18.406 18.671 17.762 18.005 16.677 16.015 14.294
Value at End of Year 20.509 19.075 19.501 18.900 18.406 18.671 17.762 18.005 16.677 16.015
No. of Units 18,916 18,465 13,227 13,258 13,225 10,355 10,458 11,387 14,914 16,275
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 18.687 19.134 18.572 18.113 18.402 17.533 17.799 16.511 15.880 14.194
Value at End of Year 20.062 18.687 19.134 18.572 18.113 18.402 17.533 17.799 16.511 15.880
No. of Units 14,790 15,146 16,686 20,325 21,723 26,796 45,428 63,828 77,689 102,718
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 19.604 20.002 19.346 18.803 19.036 18.073 18.283 16.901 16.198 14.428
Value at End of Year 21.120 19.604 20.002 19.346 18.803 19.036 18.073 18.283 16.901 16.198
Ven 7, 8 No. of Units 255,377 308,653 345,696 403,595 468,469 510,777 628,290 726,579 854,722 971,211
Ven 9 No. of Units 37,680 39,838 43,059 43,964 48,624 54,424 60,981 70,464 73,763 81,286
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 19.604 20.002 19.346 18.803 19.036 18.073 18.283 16.901 16.198 14.428
Value at End of Year 21.120 19.604 20.002 19.346 18.803 19.036 18.073 18.283 16.901 16.198
No. of Units 102,467 152,663 167,136 181,893 203,635 218,719 239,648 323,688 370,444 412,580

 

U- 3

 

 

Venture Prior

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Active Bond Trust - Series II Shares (units first credited 04-29-2005)              
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 12.417 12.643 12.500 — — — — — — —
Value at End of Year 13.403 12.417 12.643 — — — — — — —
Venture No. of Units 8,360 1,430 362 — — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 19.084 19.511 18.910 18.397 18.682 17.774 18.017 16.690 16.012 14.281
Value at End of Year 20.517 19.084 19.511 18.910 18.397 18.682 17.774 18.017 16.690 16.012
Ven 22, 20 No. of Units 1,307,760 1,365,796 1,641,999 1,670,129 1,832,902 2,103,322 2,613,861 2,885,351 3,551,138 4,494,583
Ven 24 No. of Units 301,619 323,506 363,813 361,511 399,391 440,040 552,538 624,839 727,365 840,272
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 18.569 19.022 18.473 18.009 18.324 17.468 17.742 16.469 15.832 14.148
Value at End of Year 19.924 18.569 19.022 18.473 18.009 18.324 17.468 17.742 16.469 15.832
No. of Units 94,121 94,941 99,798 109,737 123,582 141,072 156,023 174,021 189,182 224,199
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 18.192 18.664 18.153 17.722 18.060 17.242 17.539 16.305 15.697 14.049
Value at End of Year 19.490 18.192 18.664 18.153 17.722 18.060 17.242 17.539 16.305 15.697
No. of Units 142,132 192,455 209,003 224,381 275,683 317,486 462,470 575,868 664,142 837,511
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 12.362 12.613 12.200 12.500 — — — — — —
Value at End of Year 13.317 12.362 12.613 12.200 — — — — — —
Venture No. of Units 14,994 3,018 3,381 3,678 — — — — — —
All Cap Core Trust (merged into Total Stock Market Index Trust eff 04-28-2017) - Series I Shares (units first credited 07-15-1996)  
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — 31.865 29.228 28.890 26.721 20.173 17.551 17.725 15.902
Value at End of Year — — — 31.865 29.228 28.890 26.721 20.173 17.551 17.725
Ven 22, 20 No. of Units — — — 654,251 753,272 840,192 981,371 1,169,637 1,330,117 1,574,344
Ven 24 No. of Units — — — 16,630 19,678 28,388 41,371 43,823 46,052 55,691
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — 18.164 16.694 16.534 15.323 11.591 10.105 10.226 9.192
Value at End of Year — — — 18.164 16.694 16.534 15.323 11.591 10.105 10.226
No. of Units — — — 8,042 8,417 18,197 24,347 12,660 10,775 13,688
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — 13.610 12.527 12.426 11.533 8.737 7.629 7.731 6.960
Value at End of Year — — — 13.610 12.527 12.426 11.533 8.737 7.629 7.731
No. of Units — — — 23,819 27,407 30,390 35,262 38,914 39,769 47,760
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — 31.865 29.228 28.890 26.721 20.173 17.551 17.725 15.902
Value at End of Year — — — 31.865 29.228 28.890 26.721 20.173 17.551 17.725
Ven 7, 8 No. of Units — — — 131,191 146,155 175,697 198,134 215,103 238,025 274,653
Ven 9 No. of Units — — — 56,202 62,903 68,173 74,215 81,281 90,241 103,484
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — 31.865 29.228 28.890 26.721 20.173 17.551 17.725 15.902
Value at End of Year — — — 31.865 29.228 28.890 26.721 20.173 17.551 17.725
No. of Units — — — 7,431 8,122 9,059 9,911 10,805 13,277 15,086
All Cap Core Trust (merged into Total Stock Market Index Trust eff 04-28-2017) - Series II Shares (units first credited 05-13-2002)  
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — 28.391 26.084 25.842 23.942 18.113 15.784 15.984 14.368
Value at End of Year — — — 28.391 26.084 25.842 23.942 18.113 15.784 15.984
Ven 22, 20 No. of Units — — — 40,086 43,889 28,144 46,164 60,515 54,027 62,497
Ven 24 No. of Units — — — 3,377 3,556 6,254 8,647 6,927 6,806 10,056
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — 27.572 25.382 25.196 23.391 17.731 15.483 15.710 14.150
Value at End of Year — — — 27.572 25.382 25.196 23.391 17.731 15.483 15.710
No. of Units — — — 1,612 1,617 711 700 3,251 3,223 4,426
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — 26.973 24.868 24.723 22.986 17.451 15.261 15.508 13.989
Value at End of Year — — — 26.973 24.868 24.723 22.986 17.451 15.261 15.508
No. of Units — — — 3,558 3,630 4,701 7,801 8,463 9,446 10,823

 

U- 4

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — 18.113 18.113 15.784 15.984 14.368
Value at End of Year — — — — — — 18.113 18.113 15.784 15.984
No. of Units — — — — — — — 148 148 148
All Cap Value Trust (merged into Fundamental Large Cap Value Trust eff 12-06-2013) - Series I Shares (units first credited 04-30-2001)
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — 18.315 16.741 17.722 15.184
Value at End of Year — — — — — — — 18.315 16.741 17.722
Ven 22, 20 No. of Units — — — — — — — 411,312 517,185 587,058
Ven 24 No. of Units — — — — — — — 13,725 14,713 17,075
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — 17.892 16.387 17.382 14.923
Value at End of Year — — — — — — — 17.892 16.387 17.382
No. of Units — — — — — — — 39,764 39,517 42,559
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — 17.581 16.127 17.131 14.730
Value at End of Year — — — — — — — 17.581 16.127 17.131
No. of Units — — — — — — — 33,274 40,188 58,659
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — 18.315 16.741 17.722 15.184
Value at End of Year — — — — — — — 18.315 16.741 17.722
Ven 7, 8 No. of Units — — — — — — — 76,807 96,106 98,239
Ven 9 No. of Units — — — — — — — 16,170 21,401 21,365
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — 18.315 16.741 17.722 15.184
Value at End of Year — — — — — — — 18.315 16.741 17.722
No. of Units — — — — — — — 3,290 3,488 5,372
All Cap Value Trust (merged into Fundamental Large Cap Value Trust eff 12-06-2013) - Series II Shares (units first credited 05-13-2002)
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — 19.542 17.916 19.006 16.315
Value at End of Year — — — — — — — 19.542 17.916 19.006
Ven 22, 20 No. of Units — — — — — — — 354,775 474,129 534,180
Ven 24 No. of Units — — — — — — — 66,055 68,508 90,932
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — 19.131 17.574 18.680 16.067
Value at End of Year — — — — — — — 19.131 17.574 18.680
No. of Units — — — — — — — 16,819 14,805 15,536
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — 18.828 17.321 18.439 15.884
Value at End of Year — — — — — — — 18.828 17.321 18.439
No. of Units — — — — — — — 49,254 53,636 73,692
American Asset Allocation Trust - Series I Shares (units first credited 05-02-2009)            
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 19.117 20.388 17.856 16.613 16.671 16.094 13.237 11.597 11.654 10.546
Value at End of Year 22.768 19.117 20.388 17.856 16.613 16.671 16.094 13.237 11.597 11.654
Ven 22, 20 No. of Units 1,568,852 1,736,996 1,876,220 1,878,848 2,005,872 2,268,977 2,548,406 3,002,717 3,534,573 4,226,250
Ven 24 No. of Units 37,537 45,453 61,965 65,906 68,374 75,588 79,403 81,129 79,185 32,258
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 18.675 19.958 17.513 16.328 16.417 15.881 13.088 11.489 11.568 10.490
Value at End of Year 22.198 18.675 19.958 17.513 16.328 16.417 15.881 13.088 11.489 11.568
No. of Units 13,979 14,452 14,706 16,152 19,648 18,133 18,911 21,453 32,359 38,677
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 18.351 19.641 17.261 16.117 16.229 15.723 12.977 11.409 11.505 10.448
Value at End of Year 21.780 18.351 19.641 17.261 16.117 16.229 15.723 12.977 11.409 11.505
No. of Units 45,447 47,056 42,761 45,609 51,579 64,887 74,344 89,457 98,041 130,228
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 19.117 20.388 17.856 16.613 16.671 16.094 13.237 11.597 11.654 10.546
Value at End of Year 22.768 19.117 20.388 17.856 16.613 16.671 16.094 13.237 11.597 11.654
Ven 7, 8 No. of Units 1,508,218 1,673,081 1,837,645 1,999,910 2,205,838 2,414,044 2,844,572 3,155,413 3,552,474 4,058,185
Ven 9 No. of Units 156,320 172,225 184,096 243,678 251,252 283,935 305,221 339,343 381,871 21,057

 

U- 5

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 19.117 20.388 17.856 16.613 16.671 16.094 13.237 11.597 11.654 10.546
Value at End of Year 22.768 19.117 20.388 17.856 16.613 16.671 16.094 13.237 11.597 11.654
No. of Units 569,424 624,890 714,742 824,779 872,669 981,603 1,062,848 1,203,317 1,395,434 1,612,859
American Asset Allocation Trust - Series II Shares (units first credited 05-01-2007)            
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — 18.098 16.809 16.849 16.249 13.350 11.693 11.728 10.602
Value at End of Year — — — 18.098 16.809 16.849 16.249 13.350 11.693 11.728
Venture No. of Units — — — — 7,525,111 17,779,267 24,268,679 26,251,939 27,380,933 29,201,462
NY Venture No. of Units — — — — 414,552 1,111,778 1,560,679 1,653,866 1,426,370 390,046
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 18.541 19.726 17.222 15.971 15.986 15.393 12.627 — — —
Value at End of Year 22.150 18.541 19.726 17.222 15.971 15.986 15.393 — — —
Venture No. of Units 11,766,988 14,020,751 16,181,569 18,774,311 13,415,065 5,090,246 251,915 — — —
NY Venture No. of Units 681,550 800,181 909,981 1,131,314 872,882 344,112 1,192 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 18.866 20.154 17.665 16.448 16.529 15.980 13.162 11.558 11.621 10.531
Value at End of Year 22.449 18.866 20.154 17.665 16.448 16.529 15.980 13.162 11.558 11.621
Ven 22, 20 No. of Units 501,197 568,073 647,843 701,182 754,521 973,105 1,230,173 1,359,655 1,692,120 1,828,645
Ven 24 No. of Units 110,410 130,426 140,988 159,227 156,639 170,699 193,914 234,745 248,675 16,567
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 18.431 19.728 17.327 16.165 16.277 15.768 13.013 11.450 11.536 10.475
Value at End of Year 21.887 18.431 19.728 17.327 16.165 16.277 15.768 13.013 11.450 11.536
No. of Units 41,373 42,796 35,820 35,911 36,652 41,328 39,436 42,230 136,122 143,461
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — 15.874 13.087 11.504 11.578 10.503
Value at End of Year — — — — — 16.403 15.874 13.087 11.504 11.578
No. of Units — — — — — 1,312 160,308 175,104 202,723 108,634
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 18.977 20.261 17.751 16.519 16.593 16.034 13.199 — — —
Value at End of Year 22.592 18.977 20.261 17.751 16.519 16.593 16.034 — — —
No. of Units 52,697 74,026 112,907 118,100 137,603 149,351 1,076 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 18.111 19.415 17.077 15.956 16.091 15.611 12.903 11.370 11.473 10.433
Value at End of Year 21.475 18.111 19.415 17.077 15.956 16.091 15.611 12.903 11.370 11.473
No. of Units 37,424 36,670 45,186 50,340 55,148 59,400 77,158 89,793 104,443 31,813
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — 17.751 16.519 16.593 16.034 13.199 11.585 11.642 10.545
Value at End of Year — — 20.261 17.751 16.519 16.593 16.034 13.199 11.585 11.642
Venture No. of Units — — 2,491 3,433 3,935,157 7,974,837 10,641,059 11,195,574 11,853,987 12,511,936
NY Venture No. of Units — — — — 271,378 780,183 1,201,158 1,308,358 1,426,370 206,895
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 18.317 19.527 17.082 15.873 15.920 15.360 12.626 — — —
Value at End of Year 21.839 18.317 19.527 17.082 15.873 15.920 15.360 — — —
Venture No. of Units 5,584,003 6,449,349 7,359,930 8,463,286 5,360,109 2,207,030 57,268 — — —
NY Venture No. of Units 595,806 677,389 752,006 898,257 718,652 353,981 25,374 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — 16.153 15.664 12.939 11.397 11.494 10.447
Value at End of Year — — — — — 16.153 15.664 12.939 11.397 11.494
NY Venture No. of Units — — — — — 2,484 149,172 156,789 167,038 55,100
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 18.539 19.834 17.411 16.235 16.340 13.050 13.050 — — —
Value at End of Year 22.027 18.539 19.834 17.411 16.235 16.340 13.050 — — —
NY Venture No. of Units 49,950 59,116 82,273 90,379 106,300 137,584 — — — —
American Blue Chip Income and Growth Trust (merged into American Growth-Income Trust eff 11-02-2012) - Series II Shares (units first credited 05-05-2003)
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — 16.708 17.192 15.601
Value at End of Year — — — — — — — — 16.708 17.192
Ven 22, 20 No. of Units — — — — — — — — 1,375,366 1,575,377
Ven 24 No. of Units — — — — — — — — 192,901 225,707

 

U- 6

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM                  
Value at Start of Year — — — — — — — 16.421 16.930 15.394
Value at End of Year — — — — — — — — 16.421 16.930
No. of Units — — — — — — — — 57,344 66,741
Ven 24 Contracts with Payment Enhancement                
Value at Start of Year — — — — — — — 16.209 16.737 15.241
Value at End of Year — — — — — — — — 16.209 16.737
No. of Units — — — — — — — — 67,942 97,136
Ven 9, 8,7 Contracts with no Optional Riders                
Value at Start of Year — — — — — — — 16.708 17.192 15.601
Value at End of Year — — — — — — — — 16.708 17.192
Ven 9 No. of Units — — — — — — — — 12,417 21,008
No. of Units — — — — — — — — 119,981 117,258
Ven 3 Contracts with no Optional Riders                
Value at Start of Year — — — — — — — 16.708 17.192 15.601
Value at End of Year — — — — — — — — 16.708 17.192
No. of Units — — — — — — — — 12,356 9,876
American Bond Trust (merged into Bond Trust eff 10-28-2011) - Series II Shares (units first credited 08-01-2005)    
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — — — — — 13.130
Value at End of Year — — — — — — — — — 13.754
Venture No. of Units — — — — — — — — — 8,002,903
NY Venture No. of Units — — — — — — — — — 831,645
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — — — 12.967
Value at End of Year — — — — — — — — — 13.550
Ven 22, 20 No. of Units — — — — — — — — — 4,632,522
Ven 24 No. of Units — — — — — — — — — 603,586
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — — — — 12.853
Value at End of Year — — — — — — — — — 13.403
No. of Units — — — — — — — — — 144,780
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — — — — 12.962
Value at End of Year — — — — — — — — — 13.531
No. of Units — — — — — — — — — 364,499
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — — — — 12.768
Value at End of Year — — — — — — — — — 13.295
No. of Units — — — — — — — — — 631,171
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — — — — — 13.034
Value at End of Year — — — — — — — — — 13.626
Venture No. of Units — — — — — — — — — 3,230,226
NY Venture No. of Units — — — — — — — — — 451,329
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — — — — — 12.796
Value at End of Year — — — — — — — — — 13.331
NY Venture No. of Units — — — — — — — — — 209,653
Ven 9, 8,7 Contracts with no Optional Riders                
Value at Start of Year — — — — — — — — — 12.967
Value at End of Year — — — — — — — — — 13.550
Ven 9 No. of Units — — — — — — — — — 37,466
No. of Units — — — — — — — — — 175,735
Ven 3 Contracts with no Optional Riders                
Value at Start of Year — — — — — — — — — 12.967
Value at End of Year — — — — — — — — — 13.550
No. of Units — — — — — — — — — 13,232

 

U- 7

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
American Global Growth Trust - Series II Shares (units first credited 05-01-2007)          
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)      
Value at Start of Year — — 17.748 17.934 17.035 16.925 13.331 11.054 12.342 11.230
Value at End of Year — — — 17.748 17.934 17.035 16.925 13.331 11.054 12.342
Venture No. of Units — — — 7 79,078 629,019 2,625,141 2,377,809 2,748,383 2,919,485
NY Venture No. of Units — — — — 9,844 23,072 229,493 200,272 214,076 235,757
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 19.841 22.135 17.077 17.231 16.342 16.212 12.750 — — —
Value at End of Year 26.451 19.841 22.135 17.077 17.231 16.342 16.212 — — —
Venture No. of Units 1,136,648 1,398,468 1,620,631 1,922,116 2,049,547 1,792,794 38,235 — — —
NY Venture No. of Units 66,993 87,235 88,909 128,022 125,648 185,233 9,521 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits          
Value at Start of Year 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229 11.155
Value at End of Year 26.513 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229
Ven 22, 20 No. of Units 309,574 358,071 481,365 511,789 713,167 691,278 735,414 598,647 632,755 757,456
Ven 24 No. of Units 31,046 35,891 37,244 35,884 39,309 37,405 41,286 13,325 22,391 23,531
Ven 22, 20 Contracts with GEM                  
Value at Start of Year 19.506 21.893 16.991 17.248 16.457 16.424 12.995 10.824 12.140 11.095
Value at End of Year 25.849 19.506 21.893 16.991 17.248 16.457 16.424 12.995 10.824 12.140
No. of Units 21,016 23,108 23,184 23,463 30,315 31,463 31,188 24,966 24,059 24,772
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — 16.584 16.534 13.069 10.875 12.184 11.125
Value at End of Year — — — — — 16.584 16.534 13.069 10.875 12.184
No. of Units — — — — — 794 65,059 53,667 68,917 66,783
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 20.084 22.485 17.407 17.626 16.776 16.700 13.180 — — —
Value at End of Year 26.682 20.084 22.485 17.407 17.626 16.776 16.700 — — —
No. of Units 13,603 17,018 17,948 61,309 60,051 63,481 221 — — —
Ven 24 Contracts with Payment Enhancement                
Value at Start of Year 19.167 21.546 16.747 17.025 16.269 16.260 12.885 10.748 12.073 11.051
Value at End of Year 25.362 19.167 21.546 16.747 17.025 16.269 16.260 12.885 10.748 12.073
No. of Units 16,859 18,007 10,903 11,018 13,034 12,777 15,781 25,614 12,932 17,528
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)      
Value at Start of Year — — — 17.626 16.776 16.700 13.180 10.951 12.252 11.170
Value at End of Year — — — — 17.626 16.776 16.700 13.180 10.951 12.252
Venture No. of Units — — — — 77,363 409,576 1,681,755 1,459,134 1,629,811 1,749,834
NY Venture No. of Units — — — — 8,723 23,844 133,006 124,020 140,969 164,075
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 19.601 21.912 16.938 17.125 16.275 16.177 12.749 — — —
Value at End of Year 26.080 19.601 21.912 16.938 17.125 16.275 16.177 — — —
Venture No. of Units 801,417 932,719 1,053,168 1,237,740 1,320,247 1,204,273 33,316 — — —
NY Venture No. of Units 39,915 50,131 57,222 74,769 92,684 97,976 16,524 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — 16.331 16.315 12.921 10.773 12.095 11.066
Value at End of Year — — — — — 16.331 16.315 12.921 10.773 12.095
NY Venture No. of Units — — — — — 918 77,691 72,862 82,632 83,120
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 19.620 22.011 17.074 17.323 16.520 16.479 13.032 — — —
Value at End of Year 26.014 19.620 22.011 17.074 17.323 16.520 16.479 — — —
NY Venture No. of Units 13,801 31,237 33,249 36,873 53,826 61,578 2,314 — — —
Ven 9, 8,7 Contracts with no Optional Riders              
Value at Start of Year 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229 11.155
Value at End of Year 26.513 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229
Ven 9 No. of Units 16,205 16,769 20,152 20,605 29,626 25,924 25,063 14,101 16,695 18,669
No. of Units 67,159 68,843 86,632 82,929 92,999 99,535 101,078 75,073 75,298 77,092
Ven 3 Contracts with no Optional Riders              
Value at Start of Year 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229 11.155
Value at End of Year 26.513 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229
No. of Units 4,723 4,974 6,840 5,273 5,937 6,993 13,619 12,222 8,396 7,533

 

U- 8

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
American Global Small Capitalization Trust (merged into American Global Growth Trust eff 04-26-2013) - Series II Shares (units first credited 05-01-2007)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)        
Value at Start of Year — — — — — — 10.891 9.377 11.802 9.798
Value at End of Year — — — — — — — 10.891 9.377 11.802
Venture No. of Units — — — — — — — 907,482 1,035,351 989,074
NY Venture No. of Units — — — — — — — 72,524 75,892 75,868
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)        
Value at Start of Year — — — — — — 12.898 — — —
Value at End of Year — — — — — — — — — —
Venture No. of Units — — — — — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits            
Value at Start of Year — — — — — — 10.737 9.268 11.694 9.732
Value at End of Year — — — — — — — 10.737 9.268 11.694
Ven 22, 20 No. of Units — — — — — — — 407,076 476,007 727,645
Ven 24 No. of Units — — — — — — — 36,360 41,249 46,803
Ven 22, 20 Contracts with GEM                  
Value at Start of Year — — — — — — 10.616 9.182 11.608 9.680
Value at End of Year — — — — — — — 10.616 9.182 11.608
No. of Units — — — — — — — 8,546 18,609 11,911
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)        
Value at Start of Year — — — — — — 10.676 9.225 11.651 9.706
Value at End of Year — — — — — — — 10.676 9.225 11.651
No. of Units — — — — — — — 22,208 26,738 23,362
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)      
Value at Start of Year — — — — — — 10.768 — — —
Value at End of Year — — — — — — — — — —
No. of Units — — — — — — — — — —
Ven 24 Contracts with Payment Enhancement              
Value at Start of Year — — — — — — 10.526 9.118 11.545 9.642
Value at End of Year — — — — — — — 10.526 9.118 11.545
No. of Units — — — — — — — 8,713 9,392 21,447
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — — 10.768 9.290 11.715 9.745
Value at End of Year — — — — — — — 10.768 9.290 11.715
Venture No. of Units — — — — — — — 528,084 581,913 575,479
NY Venture No. of Units — — — — — — — 45,400 48,858 52,186
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)    
Value at Start of Year — — — — — — 12.896 — — —
Value at End of Year — — — — — — — — — —
Venture No. of Units — — — — — — — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — — 10.556 9.139 11.566 9.655
Value at End of Year — — — — — — — 10.556 9.139 11.566
NY Venture No. of Units — — — — — — — 27,366 29,932 28,710
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year — — — — — — 10.646 — — —
Value at End of Year — — — — — — — — — —
Venture No. of Units — — — — — — — — — —
Ven 9, 8,7 Contracts with no Optional Riders              
Value at Start of Year — — — — — — 10.737 9.268 11.694 9.732
Value at End of Year — — — — — — — 10.737 9.268 11.694
Ven 9 No. of Units — — — — — — — 8,357 12,326 13,818
No. of Units — — — — — — — 50,919 61,998 90,878
Ven 3 Contracts with no Optional Riders              
Value at Start of Year — — — — — — 10.737 9.268 11.694 9.732
Value at End of Year — — — — — — — 10.737 9.268 11.694
No. of Units — — — — — — — 4,159 1,079 1,148

 

U- 9

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
American Growth Trust - Series II Shares (units first credited 05-05-2003)        
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)      
Value at Start of Year 26.219 26.714 21.154 19.627 18.668 17.492 13.665 11.792 12.528 10.727
Value at End of Year — 26.219 26.714 21.154 19.627 18.668 17.492 13.665 11.792 12.528
Venture No. of Units — 1,896 1,897 1,915 153,452 634,609 3,394,648 5,989,600 6,624,872 7,086,878
NY Venture No. of Units — — — — 20,772 45,104 359,401 621,006 726,982 728,977
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 24.616 25.043 19.802 18.344 17.422 16.299 12.715 — — —
Value at End of Year 31.731 24.616 25.043 19.802 18.344 17.422 16.299 — — —
Venture No. of Units 1,609,583 2,100,405 2,508,538 3,057,326 3,416,667 3,712,391 1,708,324 — — —
NY Venture No. of Units 206,529 263,159 291,501 345,092 374,214 417,246 172,343 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits          
Value at Start of Year 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025 17.190
Value at End of Year 52.739 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025
Ven 22, 20 No. of Units 2,149,643 2,567,561 3,049,996 3,604,894 4,039,885 4,763,008 5,723,621 7,210,453 8,851,585 10,262,010
Ven 24 No. of Units 396,493 468,225 529,230 603,993 699,089 780,652 976,735 1,249,306 1,407,434 1,525,269
Ven 22, 20 Contracts with GEM                  
Value at Start of Year 39.811 40.747 32.412 30.206 28.861 27.164 21.318 18.479 19.721 16.962
Value at End of Year 51.010 39.811 40.747 32.412 30.206 28.861 27.164 21.318 18.479 19.721
No. of Units 83,699 100,209 115,923 133,837 147,477 162,568 223,894 270,210 332,325 396,520
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — 18.110 17.028 13.350 11.560 12.325 10.590
Value at End of Year — — — — — 18.110 17.028 13.350 11.560 12.325
No. of Units — — — — — 5,373 200,404 283,435 305,605 315,314
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 25.563 26.098 20.708 19.250 18.347 17.225 13.484 — — —
Value at End of Year 32.836 25.563 26.098 20.708 19.250 18.347 17.225 — — —
No. of Units 91,787 110,321 137,794 171,547 169,473 208,879 77,430 — — —
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 38.887 39.860 31.754 29.638 28.360 26.733 21.011 18.240 19.496 16.793
Value at End of Year 49.751 38.887 39.860 31.754 29.638 28.360 26.733 21.011 18.240 19.496
No. of Units 168,890 204,733 239,174 284,604 335,835 418,524 560,414 789,991 945,446 1,053,911
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)    
Value at Start of Year — — — 19.250 18.347 17.225 13.484 11.659 12.412 10.649
Value at End of Year — — — — 19.250 18.347 17.225 13.484 11.659 12.412
Venture No. of Units — — — — 135,374 527,819 1,779,129 2,541,891 2,877,835 3,077,292
NY Venture No. of Units — — — — 51,943 68,013 229,683 345,068 376,619 394,082
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 24.319 24.791 19.641 18.232 17.350 16.265 12.713 — — —
Value at End of Year 31.285 24.319 24.791 19.641 18.232 17.350 16.265 — — —
Venture No. of Units 870,329 1,028,874 1,152,066 1,388,303 1,446,186 1,395,826 438,160 — — —
NY Venture No. of Units 95,094 109,014 130,592 189,618 166,065 182,842 65,508 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — 26.876 21.113 18.319 19.570 16.849
Value at End of Year — — — — — — 26.876 21.113 18.319 19.570
NY Venture No. of Units — — — — — — 46,973 99,853 107,741 110,577
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 40.125 41.047 32.634 30.398 29.029 27.309 21.421 — — —
Value at End of Year 51.437 40.125 41.047 32.634 30.398 29.029 27.309 — — —
NY Venture No. of Units 20,373 26,804 31,903 39,046 43,937 69,117 38,195 — — —
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025 17.190
Value at End of Year 52.739 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025
Ven 9 No. of Units 45,533 47,937 52,403 60,190 65,124 69,810 78,664 86,547 101,540 118,898
No. of Units 213,335 219,255 248,286 267,073 314,195 357,737 397,192 469,587 553,978 622,665
Ven 3 Contracts with no Optional Riders            
Value at Start of Year 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025 17.190
Value at End of Year 52.739 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025
No. of Units 14,457 18,882 20,256 20,859 26,009 33,192 35,195 41,092 41,931 44,189

 

U- 10

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
American Growth-Income Trust - Series I Shares (units first credited 05-02-2009)      
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — — 13.573 11.720 12.109 11.030
Value at End of Year — — — — — — — 13.573 11.720 12.109
Venture No. of Units — — — — — — — 403 417 416
Ven 24, 22, 20 Contracts with no Optional Benefits        
Value at Start of Year 34.974 36.261 30.132 27.502 27.583 25.370 19.342 16.744 17.342 15.836
Value at End of Year 43.352 34.974 36.261 30.132 27.502 27.583 25.370 19.342 16.744 17.342
Ven 22, 20 No. of Units 1,375,963 1,541,592 1,762,919 2,015,125 2,286,947 2,607,983 3,009,380 3,481,030 3,635,636 4,378,266
Ven 24 No. of Units 50,825 55,514 58,381 66,933 69,520 82,915 100,684 113,854 118,667 152,987
Ven 22, 20 Contracts with GEM            
Value at Start of Year 33.896 35.213 29.319 26.814 26.947 24.835 18.972 16.456 17.079 15.626
Value at End of Year 41.931 33.896 35.213 29.319 26.814 26.947 24.835 18.972 16.456 17.079
No. of Units 37,433 43,940 46,044 50,020 54,204 62,969 60,375 53,782 49,334 55,637
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 33.108 34.447 28.724 26.310 26.479 24.440 18.699 11.037 11.472 10.512
Value at End of Year 40.895 33.108 34.447 28.724 26.310 26.479 24.440 18.699 11.037 11.472
No. of Units 29,990 37,544 52,641 60,221 64,543 79,484 91,683 110,369 134,468 168,017
Ven 9, 8,7 Contracts with no Optional Riders          
Value at Start of Year 34.974 36.261 30.132 27.502 27.583 25.370 19.342 16.744 17.342 15.836
Value at End of Year 43.352 34.974 36.261 30.132 27.502 27.583 25.370 19.342 16.744 17.342
Ven 7, 8 No. of Units 213,764 241,131 271,619 297,841 343,585 409,147 469,922 534,506 463,516 548,420
Ven 9 No. of Units 58,085 62,023 67,617 77,084 86,597 95,060 107,296 125,794 123,985 154,654
Ven 3 Contracts with no Optional Riders          
Value at Start of Year 34.974 36.261 30.132 27.502 27.583 25.370 19.342 16.744 17.342 15.836
Value at End of Year 43.352 34.974 36.261 30.132 27.502 27.583 25.370 19.342 16.744 17.342
No. of Units 23,581 28,114 29,987 33,101 35,800 51,676 55,438 55,782 57,258 62,685
American Growth-Income Trust - Series II Shares (units first credited 05-05-2003)      
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)        
Value at Start of Year 24.607 25.471 21.138 19.253 19.289 17.720 13.493 11.673 12.079 11.023
Value at End of Year — 24.607 25.471 21.138 19.253 19.289 17.720 13.493 11.673 12.079
Venture No. of Units — 1,871 1,872 1,873 171,522 469,298 3,231,166 5,844,755 6,530,115 7,163,546
NY Venture No. of Units — — — — 15,935 33,761 339,756 606,825 708,417 712,202
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 23.285 24.066 19.942 18.137 18.144 16.643 12.654 — — —
Value at End of Year 28.966 23.285 24.066 19.942 18.137 18.144 16.643 — — —
Venture No. of Units 1,683,064 2,056,246 2,490,531 2,942,734 3,370,946 3,664,932 1,684,639 — — —
NY Venture No. of Units 215,579 266,378 291,169 335,268 377,051 402,316 170,168 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits          
Value at Start of Year 34.543 35.845 29.821 27.230 27.350 25.188 19.228 16.675 17.299 15.827
Value at End of Year 42.798 34.543 35.845 29.821 27.230 27.350 25.188 19.228 16.675 17.299
Ven 22, 20 No. of Units 1,648,489 1,936,163 2,277,494 2,669,315 3,031,778 3,567,003 4,461,445 5,967,647 6,355,649 7,293,399
Ven 24 No. of Units 414,246 492,571 544,950 609,519 687,171 741,404 900,469 1,232,908 1,233,296 1,139,011
Ven 22, 20 Contracts with GEM                  
Value at Start of Year 33.478 34.810 29.018 26.549 26.720 24.656 18.860 16.389 17.036 15.617
Value at End of Year 41.395 33.478 34.810 29.018 26.549 26.720 24.656 18.860 16.389 17.036
No. of Units 103,885 112,192 133,121 160,774 178,089 199,185 221,503 289,653 305,566 342,964
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — 18.713 17.250 13.182 11.443 11.883 10.883
Value at End of Year — — — — — 18.713 17.250 13.182 11.443 11.883
No. of Units — — — — — 5,244 146,807 271,355 292,900 312,555
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 23.991 24.883 20.691 18.884 18.958 17.450 13.315 — — —
Value at End of Year 29.739 23.991 24.883 20.691 18.884 18.958 17.450 — — —
No. of Units 75,203 93,034 108,944 130,232 156,793 187,039 79,873 — — —
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 22.496 23.405 19.517 17.876 17.991 16.606 12.705 16.178 16.841 15.462
Value at End of Year 27.787 22.496 23.405 19.517 17.876 17.991 16.606 12.705 16.178 16.841
No. of Units 177,133 204,251 254,146 300,656 372,021 448,910 622,781 871,144 976,368 1,100,268

 

U- 11

 

 

Venture Prior 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

18.884

18.958

17.450

13.315

11.541

11.966

10.943

Value at End of Year

—

—

—

—

18.884

18.958

17.450

13.315

11.541

11.966

Venture No. of Units

—

—

—

—

129,363

436,173

1,546,497

2,413,176

2,617,484

2,828,973

NY Venture No. of Units

—

—

—

—

8,808

21,196

174,268

279,485

305,079

333,134

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

23.004

23.824

19.781

18.026

18.069

16.607

12.653

—

—

—

Value at End of Year

28.559

23.004

23.824

19.781

18.026

18.069

16.607

—

—

—

Venture No. of Units

841,304

981,045

1,112,122

6,008,522

1,400,247

1,314,243

446,527

—

—

—

NY Venture No. of Units

91,193

102,966

122,299

134,648

158,738

171,198

58,536

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

24.394

18.679

16.248

16.905

15.513

Value at End of Year

—

—

—

—

—

—

24.394

18.679

16.248

16.905

NY Venture No. of Units

—

—

—

—

—

—

45,896

105,963

114,484

122,020

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

33.741

35.066

29.216

26.718

26.876

24.788

18.952

—

—

—

Value at End of Year

41.742

33.741

35.066

29.216

26.718

26.876

24.788

—

—

—

NY Venture No. of Units

25,535

31,377

36,210

41,678

46,921

69,643

42,243

—

—

—

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

19.228

16.675

17.299

15.827

Value at End of Year

—

—

—

—

—

—

—

19.228

16.675

17.299

No. of Units

—

—

—

—

—

—

—

357

357

358

American High-Income Bond Trust (merged into High Yield Trust eff 04-26-2013) - Series II Shares (units first credited 05-01-2007)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

15.533

13.908

13.885

12.264

Value at End of Year

—

—

—

—

—

—

—

15.533

13.908

13.885

Venture No. of Units

—

—

—

—

—

—

—

518,309

544,562

633,904

NY Venture No. of Units

—

—

—

—

—

—

—

42,581

41,466

47,856

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

—

15.314

13.747

13.758

12.182

Value at End of Year

—

—

—

—

—

—

—

15.314

13.747

13.758

Ven 22, 20 No. of Units

—

—

—

—

—

—

—

329,105

306,800

394,380

Ven 24 No. of Units

—

—

—

—

—

—

—

50,161

29,523

21,253

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

—

15.141

13.619

13.657

12.117

Value at End of Year

—

—

—

—

—

—

—

15.141

13.619

13.657

No. of Units

—

—

—

—

—

—

—

15,469

20,681

9,421

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

15.228

13.683

13.707

12.150

Value at End of Year

—

—

—

—

—

—

—

15.228

13.683

13.707

No. of Units

—

—

—

—

—

—

—

87,817

96,214

38,307

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

—

15.013

13.524

13.582

12.069

Value at End of Year

—

—

—

—

—

—

—

15.013

13.524

13.582

No. of Units

—

—

—

—

—

—

—

23,586

24,646

31,303

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

15.358

13.779

13.783

12.198

Value at End of Year

—

—

—

—

—

—

—

15.358

13.779

13.783

Venture No. of Units

—

—

—

—

—

—

—

337,690

337,330

390,429

NY Venture No. of Units

—

—

—

—

—

—

—

22,224

24,249

30,798

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

15.056

13.556

13.607

12.085

Value at End of Year

—

—

—

—

—

—

—

15.056

13.556

13.607

NY Venture No. of Units

—

—

—

—

—

—

—

35,589

35,470

38,103

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

15.314

13.747

13.758

12.182

Value at End of Year

—

—

—

—

—

—

—

15.314

13.747

13.758

Ven 9 No. of Units

—

—

—

—

—

—

—

5,466

4,520

7,238

No. of Units

—

—

—

—

—

—

—

53,315

50,610

54,432

U- 12

 

Venture Prior 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

15.314

13.747

13.758

12.182

Value at End of Year

—

—

—

—

—

—

—

15.314

13.747

13.758

No. of Units

—

—

—

—

—

—

—

1,068

713

967

American International Trust - Series II Shares (units first credited 05-05-2003)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

15.748

18.436

14.182

13.932

14.832

15.491

12.952

11.174

13.202

12.518

Value at End of Year

—

15.748

18.436

14.182

13.932

14.832

15.491

12.952

11.174

13.202

Venture No. of Units

—

1,258

1,259

1,277

83,280

342,826

2,430,371

4,237,219

4,724,990

4,692,535

NY Venture No. of Units

—

—

—

—

485

14,533

226,902

365,525

426,909

392,737

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

15.641

18.284

14.044

13.776

14.643

15.271

12.749

—

—

—

Value at End of Year

18.934

15.641

18.284

14.044

13.776

14.643

15.271

—

—

—

Venture No. of Units

1,631,826

1,952,705

2,121,479

2,714,346

2,922,430

3,005,719

1,267,918

—

—

—

NY Venture No. of Units

185,050

219,191

217,979

266,578

291,134

300,895

104,891

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

31.010

36.396

28.067

27.642

29.500

30.889

25.891

22.393

26.522

25.212

Value at End of Year

37.388

31.010

36.396

28.067

27.642

29.500

30.889

25.891

22.393

26.522

Ven 22, 20 No. of Units

1,261,854

1,400,215

1,583,425

1,866,911

2,080,646

2,287,929

2,671,875

3,351,256

4,110,621

4,542,335

Ven 24 No. of Units

218,793

266,004

277,242

304,450

334,287

346,235

405,383

499,335

570,904

590,474

Ven 22, 20 Contracts with GEM

Value at Start of Year

30.053

35.344

27.311

26.950

28.820

30.237

25.395

22.009

26.119

24.878

Value at End of Year

36.163

30.053

35.344

27.311

26.950

28.820

30.237

25.395

22.009

26.119

No. of Units

55,189

64,957

69,826

84,949

91,053

91,389

97,262

121,985

153,237

161,480

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

14.388

15.080

12.653

10.955

12.987

12.358

Value at End of Year

—

—

—

—

—

14.388

15.080

12.653

10.955

12.987

No. of Units

—

—

—

—

—

4,134

112,297

174,885

187,743

181,114

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

15.353

18.011

13.882

13.665

14.576

15.255

12.780

—

—

—

Value at End of Year

18.520

15.353

18.011

13.882

13.665

14.576

15.255

—

—

—

No. of Units

65,018

78,196

81,704

106,233

112,634

144,853

46,283

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

29.355

34.575

26.757

26.443

28.320

29.757

25.030

21.725

25.820

24.631

Value at End of Year

35.270

29.355

34.575

26.757

26.443

28.320

29.757

25.030

21.725

25.820

No. of Units

111,251

132,369

143,550

178,111

194,979

217,017

274,144

373,585

437,802

457,280

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

13.665

14.576

15.255

12.780

11.048

13.079

12.427

Value at End of Year

—

—

—

—

13.665

14.576

15.255

12.780

11.048

13.079

Venture No. of Units

—

—

—

—

61,094

264,111

1,127,945

1,822,766

2,038,430

1,996,866

NY Venture No. of Units

—

—

—

—

32,716

45,166

172,168

277,659

304,272

292,099

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

15.452

18.099

13.930

13.691

14.583

15.239

12.748

—

—

—

Value at End of Year

18.668

15.452

18.099

13.930

13.691

14.583

15.239

—

—

—

Venture No. of Units

760,057

909,875

1,043,154

1,272,779

1,302,036

1,205,211

484,276

—

—

—

NY Venture No. of Units

95,760

107,599

119,456

174,246

155,200

157,155

66,284

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

29.916

25.151

21.819

25.919

24.713

Value at End of Year

—

—

—

—

—

—

29.916

25.151

21.819

25.919

NY Venture No. of Units

—

—

—

—

—

—

29,229

54,581

66,499

63,623

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

30.290

35.604

27.498

27.121

28.988

30.398

25.518

—

—

—

Value at End of Year

36.465

30.290

35.604

27.498

27.121

28.988

30.398

—

—

—

NY Venture No. of Units

18,843

22,539

24,269

30,916

32,825

44,681

19,598

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

31.010

36.396

28.067

27.642

29.500

30.889

25.891

22.393

26.522

25.212

Value at End of Year

37.388

31.010

36.396

28.067

27.642

29.500

30.889

25.891

22.393

26.522

Ven 9 No. of Units

13,848

14,231

14,225

19,955

23,282

24,203

30,161

32,955

33,635

38,390

No. of Units

10,019

83,720

89,841

105,937

134,564

163,120

174,113

198,663

248,642

280,668

 

 

U- 13

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 3 Contracts with no Optional Riders

Value at Start of Year

31.010

36.396

28.067

27.642

29.500

30.889

25.891

22.393

26.522

25.212

Value at End of Year

37.388

31.010

36.396

28.067

27.642

29.500

30.889

25.891

22.393

26.522

No. of Units

16,004

17,547

17,697

11,940

13,747

13,919

15,602

18,078

23,434

24,861

American New World Trust (merged into Emerging Markets Value Trust eff 10-27-2017) - Series II Shares (units first credited 05-01-2007)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

13.832

13.354

14.032

15.490

14.150

12.222

14.444

12.468

Value at End of Year

—

—

—

13.832

13.354

14.032

15.490

14.150

12.222

14.444

Venture No. of Units

—

—

—

8

36,849

164,611

403,700

431,007

484,881

507,067

NY Venture No. of Units

—

—

—

—

4,956

13,976

31,279

36,707

48,334

42,836

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

12.626

12.172

12.770

14.076

12.838

—

—

—

Value at End of Year

—

—

—

12.626

12.172

12.770

14.076

—

—

—

Venture No. of Units

—

—

—

305,908

311,623

255,422

19,875

—

—

—

NY Venture No. of Units

—

—

—

23,427

20,221

20,622

764

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

13.502

13.068

13.765

15.234

13.950

12.080

14.312

12.385

Value at End of Year

—

—

17.489

13.502

13.068

13.765

15.234

13.950

12.080

14.312

Ven 22, 20 No. of Units

—

—

 

753,405

775,767

878,305

985,032

1,028,399

1,165,027

1,531,542

Ven 24 No. of Units

—

—

—

172,298

172,263

152,684

110,641

135,172

135,753

130,201

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

13.243

12.843

13.556

15.032

13.793

11.968

14.207

12.319

Value at End of Year

—

—

—

13.243

12.843

13.556

15.032

13.793

11.968

14.207

No. of Units

—

—

—

24,843

30,233

30,578

31,263

38,962

60,796

48,003

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

15.133

13.871

12.024

14.259

12.352

Value at End of Year

—

—

—

—

—

—

15.133

13.871

12.024

14.259

No. of Units

—

—

—

—

—

—

6,972

10,625

10,654

13,548

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

13.567

13.125

13.818

15.285

13.990

—

—

—

Value at End of Year

—

—

17.583

13.567

13.125

13.818

15.285

—

—

—

No. of Units

—

—

 

11,592

9,554

8,158

3,922

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

13.052

12.677

13.400

14.882

13.676

11.884

14.129

12.270

Value at End of Year

—

—

—

13.052

12.677

13.400

14.882

13.676

11.884

14.129

No. of Units

—

—

—

6,792

6,895

8,604

13,074

24,791

34,127

45,205

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

13.125

13.818

15.285

13.990

12.108

14.338

12.402

Value at End of Year

—

—

—

—

13.125

13.818

15.285

13.990

12.108

14.338

Venture No. of Units

—

—

—

—

28,874

187,444

322,011

329,820

346,692

355,396

NY Venture No. of Units

—

—

—

—

2,792

25,535

19,521

19,096

20,590

21,707

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

12.524

12.097

12.717

14.046

12.837

—

—

—

Value at End of Year

—

—

—

12.524

12.097

12.717

14.046

—

—

—

Venture No. of Units

—

—

—

243,968

260,429

145,863

5,678

—

—

—

NY Venture No. of Units

—

—

—

10,942

10,963

10,384

1,464

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

13.452

14.932

13.715

11.912

14.155

12.286

Value at End of Year

—

—

—

—

—

13.452

14.932

13.715

11.912

14.155

NY Venture No. of Units

—

—

—

—

—

83

14,120

16,550

16,679

17,664

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

13.307

12.899

13.608

15.082

13.832

—

—

—

Value at End of Year

—

—

—

13.307

12.899

13.608

15.082

—

—

—

NY Venture No. of Units

—

—

—

5,863

11,001

12,130

909

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

13.502

13.068

13.765

15.234

13.950

12.080

14.312

12.385

Value at End of Year

—

—

—

13.502

13.068

13.765

15.234

13.950

12.080

14.312

Ven 9 No. of Units

—

—

—

15,274

15,306

22,536

30,051

34,584

39,935

48,994

No. of Units

—

—

—

66,532

75,949

100,465

112,385

147,882

159,424

177,241

 

 

 

U- 14

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

13.502

13.068

13.765

15.234

13.950

12.080

14.312

12.385

Value at End of Year

—

—

—

13.502

13.068

13.765

15.234

13.950

12.080

14.312

No. of Units

—

—

—

2,263

2,308

2,559

3,280

3,426

3,708

13,359

BlackRock Advantage U.S. Total Market V.I. Fund (formerly BlackRock Value Opportunities V.I. Fund) - Class II Shares (units first credited 10-13-1997)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

117.035

126.985

113.103

92.907

101.051

97.536

69.557

62.256

64.784

51.126

Value at End of Year

148.608

117.035

126.985

113.103

92.907

101.051

97.536

69.557

62.256

64.784

Ven 22, 20 No. of Units

14,271

15,623

17,117

18,668

19,776

20,874

26,621

30,115

34,128

42,233

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

27.408

29.870

28.889

20.643

18.513

19.304

15.264

Value at End of Year

—

—

—

—

27.408

29.870

28.889

20.643

18.513

19.304

No. of Units

—

—

—

—

908

908

914

919

980

985

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

117.035

126.985

113.103

92.907

101.051

97.536

69.557

62.256

64.784

51.126

Value at End of Year

148.608

117.035

126.985

113.103

92.907

101.051

97.536

69.557

62.256

64.784

Ven 7, 8 No. of Units

46

46

46

46

47

47

47

47

47

47

BlackRock Basic Value V.I. Fund (formerly Mercury Basic Value V.I. Fund) - Class II Shares (units first credited 10-13-1997)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

48.249

53.223

49.905

42.933

46.353

42.829

31.506

28.057

29.224

26.303

Value at End of Year

58.861

48.249

53.223

49.905

42.933

46.353

42.829

31.506

28.057

29.224

Ven 22, 20 No. of Units

49,776

54,498

66,752

74,216

87,107

89,512

105,601

128,190

155,020

193,358

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

22.034

23.837

22.069

16.267

14.515

15.149

13.662

Value at End of Year

—

—

—

—

22.034

23.837

22.069

16.267

14.515

15.149

No. of Units

—

—

—

—

525

525

525

526

526

527

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

53.223

49.905

42.933

46.353

42.829

31.506

28.057

29.224

26.303

Value at End of Year

—

—

53.223

49.905

42.933

46.353

42.829

31.506

28.057

29.224

Ven 7, 8 No. of Units

—

—

205

343

428

428

429

429

430

430

BlackRock Global Allocation V.I. Fund (formerly Mercury Global Allocation V.I. Fund) - Class II Shares (units first credited 10-13-1997)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

19.318

21.185

18.887

18.424

18.847

18.745

16.594

15.280

16.078

14.838

Value at End of Year

22.446

19.318

21.185

18.887

18.424

18.847

18.745

16.594

15.280

16.078

Ven 22, 20 No. of Units

9,600

9,979

10,063

34,178

35,608

38,619

42,947

43,666

49,972

61,307

Blue Chip Growth Trust - Series I Shares (units first credited 12-11-1992)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

15.918

12.500

—

—

Value at End of Year

—

—

—

—

—

—

—

15.918

—

—

Venture No. of Units

—

—

—

—

—

—

—

93

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

62.165

61.828

46.005

46.278

42.257

39.288

28.191

24.164

24.156

9.150

Value at End of Year

79.566

62.165

61.828

46.005

46.278

42.257

39.288

28.191

24.164

24.156

Ven 22, 20 No. of Units

1,503,238

1,695,918

1,918,651

2,196,273

2,540,269

2,805,589

3,320,517

3,815,540

4,361,294

5,156,171

Ven 24 No. of Units

16,554

48,792

57,255

62,063

71,734

92,101

109,918

112,774

137,073

171,577

Ven 22, 20 Contracts with GEM

Value at Start of Year

30.105

30.002

22.368

22.546

20.628

19.218

13.817

11.867

11.887

10.399

Value at End of Year

38.455

30.105

30.002

22.368

22.546

20.628

19.218

13.817

11.867

11.887

No. of Units

30,166

34,223

41,767

41,662

48,996

55,299

62,316

72,933

83,267

102,152

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

27.493

27.440

20.489

20.683

18.952

17.682

12.732

10.952

10.987

9.626

Value at End of Year

35.066

27.493

27.440

20.489

20.683

18.952

17.682

12.732

10.952

10.987

No. of Units

83,269

90,482

93,652

98,511

106,199

128,413

153,831

182,262

288,958

357,421

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

62.165

61.828

46.005

46.278

42.257

39.288

28.191

24.164

24.156

21.091

Value at End of Year

79.566

62.165

61.828

46.005

46.278

42.257

39.288

28.191

24.164

24.156

Ven 7, 8 No. of Units

545,136

650,320

724,370

788,629

889,304

999,255

1,161,127

1,282,946

1,495,050

1,706,581

Ven 9 No. of Units

189,611

215,227

238,696

275,483

302,098

333,470

370,874

401,834

459,266

542,189

U- 15

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 3 Contracts with no Optional Riders

Value at Start of Year

62.165

61.828

46.005

46.278

42.257

39.288

28.191

24.164

24.156

21.091

Value at End of Year

79.566

62.165

61.828

46.005

46.278

42.257

39.288

28.191

24.164

24.156

No. of Units

25,172

28,862

30,904

32,568

50,703

55,463

61,820

55,582

70,165

74,339

Blue Chip Growth Trust - Series II Shares (units first credited 05-13-2002)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

25.828

23.574

21.901

15.709

13.457

13.446

11.732

Value at End of Year

—

—

—

—

25.828

23.574

21.901

15.709

13.457

13.446

Venture No. of Units

—

—

—

—

83,279

152,083

294,479

335,222

298,469

290,783

NY Venture No. of Units

—

—

—

—

11,184

13,776

49,955

37,928

35,708

30,066

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

28.132

27.920

20.741

20.821

18.975

17.602

12.607

—

—

—

Value at End of Year

36.077

28.132

27.920

20.741

20.821

18.975

17.602

—

—

—

Venture No. of Units

105,364

119,913

185,913

213,055

188,596

170,669

35,088

—

—

—

NY Venture No. of Units

8,629

10,127

10,831

24,442

20,825

10,457

108

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

39.958

39.816

29.696

29.930

27.387

25.507

18.341

15.751

15.777

13.800

Value at End of Year

51.037

39.958

39.816

29.696

29.930

27.387

25.507

18.341

15.751

15.777

Ven 22, 20 No. of Units

546,553

642,149

728,648

839,865

952,454

1,010,208

1,168,523

1,390,988

1,615,165

1,818,638

Ven 24 No. of Units

133,957

145,512

176,359

198,747

216,214

239,437

259,504

353,139

428,974

490,408

Ven 22, 20 Contracts with GEM

Value at Start of Year

38.649

38.590

28.839

29.124

26.703

24.920

17.954

15.451

15.507

13.591

Value at End of Year

49.267

38.649

38.590

28.839

29.124

26.703

24.920

17.954

15.451

15.507

No. of Units

61,788

64,446

23,398

40,346

42,275

48,877

63,281

158,887

172,965

182,406

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

22.869

21.321

15.346

13.193

13.228

11.582

Value at End of Year

—

—

—

—

—

22.869

21.321

15.346

13.193

13.228

No. of Units

—

—

—

—

—

587

16,690

21,422

23,004

22,462

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

33.872

33.735

25.147

25.333

23.169

21.568

15.501

—

—

—

Value at End of Year

43.285

33.872

33.735

25.147

25.333

23.169

21.568

—

—

—

No. of Units

5,184

5,807

5,994

6,547

6,893

15,469

3,723

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

37.696

37.695

28.212

28.534

26.201

24.488

17.670

15.229

15.307

13.436

Value at End of Year

47.980

37.696

37.695

28.212

28.534

26.201

24.488

17.670

15.229

15.307

No. of Units

70,726

74,629

87,165

92,909

131,481

123,440

155,655

195,791

206,072

246,437

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

25.333

23.169

21.568

15.501

13.306

13.321

11.646

Value at End of Year

—

—

—

—

25.333

23.169

21.568

15.501

13.306

13.321

Venture No. of Units

—

—

—

—

29,966

52,074

96,148

120,948

135,230

113,991

NY Venture No. of Units

—

—

—

—

1,905

5,154

6,945

8,146

8,123

11,642

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

27.793

27.639

20.573

20.693

18.897

17.565

12.605

—

—

—

Value at End of Year

35.570

27.793

27.639

20.573

20.693

18.897

17.565

—

—

—

Venture No. of Units

61,988

74,072

77,952

102,621

90,245

58,629

14,384

—

—

—

NY Venture No. of Units

1,947

5,758

5,800

3,575

1,707

894

247

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

24.631

17.764

15.302

15.373

13.487

Value at End of Year

—

—

—

—

—

—

24.631

17.764

15.302

15.373

NY Venture No. of Units

—

—

—

—

—

—

3,053

3,172

3,026

3,091

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

38.972

38.893

29.051

29.324

26.872

12.500

—

—

—

—

Value at End of Year

49.704

38.972

38.893

29.051

29.324

26.872

—

—

—

—

NY Venture No. of Units

1,052

1,105

1,106

1,106

2,459

2,765

—

—

—

—

Bond Trust - Series II Shares (units first credited 10-28-2011)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

13.497

13.741

13.434

13.213

13.359

12.822

13.185

12.569

12.500

—

Value at End of Year

—

13.497

13.741

13.434

13.213

13.359

12.822

13.185

12.569

—

Venture No. of Units

—

3,440

3,196

3,198

76,804

722,962

5,748,822

7,539,427

7,658,611

—

NY Venture No. of Units

—

—

—

—

9,124

41,846

596,486

804,554

857,354

—

 

 

U- 16

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 12.866 13.078 12.767 12.538 12.658 12.131 12.456 — — —
Value at End of Year 13.850 12.866 13.078 12.767 12.538 12.658 12.131 — — —
Venture No. of Units 4,223,552 4,572,772 5,519,149 5,615,241 6,032,512 6,381,000 2,468,205 — — —
NY Venture No. of Units 390,424 563,473 630,424 623,657 668,269 733,820 270,826 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 12.500 —
Value at End of Year 14.214 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 —
Ven 22, 20 No. of Units 2,076,851 2,236,573 2,689,856 2,861,833 2,510,217 2,900,293 3,470,821 3,841,749 4,218,483 —
Ven 24 No. of Units 310,896 331,998 409,643 432,424 405,529 446,548 536,908 575,253 576,865 —
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 13.068 13.364 13.125 12.967 13.170 12.697 13.115 12.559 12.500 —
Value at End of Year 13.983 13.068 13.364 13.125 12.967 13.170 12.697 13.115 12.559 —
No. of Units 86,238 81,782 113,690 109,886 80,339 91,971 105,270 109,064 133,873 —
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — 13.212 12.724 13.131 12.562 12.500 —
Value at End of Year — — — — — 13.212 12.724 13.131 12.562 —
No. of Units — — — — — 8,613 246,455 359,031 356,596 —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 13.305 13.572 13.296 13.103 13.275 12.766 13.154 — — —
Value at End of Year 14.272 13.305 13.572 13.296 13.103 13.275 12.766 — — —
No. of Units 170,654 188,359 226,553 255,425 273,419 331,000 119,370 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 12.928 13.241 13.023 12.886 13.107 12.655 13.092 12.556 12.500 —
Value at End of Year 13.812 12.928 13.241 13.023 12.886 13.107 12.655 13.092 12.556 —
No. of Units 238,628 248,609 323,863 365,250 334,230 413,042 562,204 556,719 592,278 —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 13.103 13.275 12.766 13.154 12.565 12.500 —
Value at End of Year — — — — 13.103 13.275 12.766 13.154 12.565 —
Venture No. of Units — — — — 72,783 351,964 2,614,611 3,010,541 3,066,005 —
NY Venture No. of Units — — — — 34,004 72,224 379,253 428,704 429,936 —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 12.711 12.946 12.664 12.461 12.606 12.105 12.454 — — —
Value at End of Year 13.655 12.711 12.946 12.664 12.461 12.606 12.105 — — —
Venture No. of Units 1,919,281 2,027,379 2,402,581 2,412,299 2,582,254 2,572,870 627,862 — — —
NY Venture No. of Units 251,802 254,197 281,621 302,607 304,921 315,284 80,003 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — 13.128 12.669 13.100 12.557 12.500 —
Value at End of Year — — — — — 13.128 12.669 13.100 12.557 —
NY Venture No. of Units — — — — — 360 133,071 206,002 203,851 —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 13.115 13.405 13.159 12.994 13.191 12.710 13.123 — — —
Value at End of Year 14.040 13.115 13.405 13.159 12.994 13.191 12.710 — — —
NY Venture No. of Units 101,354 115,097 136,599 133,445 143,209 198,914 98,376 — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 12.500 —
Value at End of Year 14.214 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 —
Ven 9 No. of Units 22,300 24,200 26,256 33,527 31,804 33,706 33,569 41,984 42,976 —
No. of Units 95,347 100,860 139,681 164,924 128,124 142,327 135,209 163,895 173,613 —
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 12.500 —
Value at End of Year 14.214 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 —
No. of Units 17,471 17,664 19,580 23,828 11,606 11,715 13,086 10,666 12,597 —
Capital Appreciation Trust - Series I Shares (units first credited 11-01-2000)            
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 23.130 23.648 17.564 18.005 16.382 15.151 11.181 9.777 9.907 8.984
Value at End of Year 30.311 23.130 23.648 17.564 18.005 16.382 15.151 11.181 9.777 9.907
Ven 22, 20 No. of Units 2,402,972 2,716,151 3,035,472 3,520,342 3,944,681 4,523,898 5,099,239 5,983,743 6,922,674 8,172,745
Ven 24 No. of Units 102,177 115,720 133,175 146,742 165,366 189,550 217,784 243,352 286,982 340,497

 

U- 17

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 23.964 24.549 18.270 18.766 17.109 15.854 11.724 10.273 10.430 9.477
Value at End of Year 31.341 23.964 24.549 18.270 18.766 17.109 15.854 11.724 10.273 10.430
No. of Units 29,614 32,599 34,508 36,445 40,376 34,974 32,615 36,624 47,003 61,133
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 21.704 22.268 16.597 17.074 15.589 14.468 10.715 6.999 7.116 8.700
Value at End of Year 28.343 21.704 22.268 16.597 17.074 15.589 14.468 10.715 6.999 7.116
No. of Units 45,466 59,500 71,680 90,649 108,774 137,112 159,612 180,873 230,883 285,060
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 23.130 23.648 17.564 18.005 16.382 15.151 11.181 9.777 9.907 8.984
Value at End of Year 30.311 23.130 23.648 17.564 18.005 16.382 15.151 11.181 9.777 9.907
Ven 7, 8 No. of Units 727,609 823,617 915,050 1,008,908 1,128,890 1,254,688 1,459,326 1,650,553 1,916,411 2,240,760
Ven 9 No. of Units 197,658 226,103 245,381 269,170 297,680 337,891 375,657 427,516 484,843 571,677
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 23.130 23.648 17.564 18.005 16.382 15.151 11.181 9.777 9.907 8.984
Value at End of Year 30.311 23.130 23.648 17.564 18.005 16.382 15.151 11.181 9.777 9.907
No. of Units 221,071 231,823 243,948 282,141 318,558 341,601 364,428 426,409 486,587 612,181
Capital Appreciation Trust - Series II Shares (units first credited 05-13-2002)              
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 24.318 22.127 20.447 15.086 13.175 13.350 12.103
Value at End of Year — — — — 24.318 22.127 20.447 15.086 13.175 13.350
Venture No. of Units — — — — 13,988 35,077 69,584 97,192 106,819 114,206
NY Venture No. of Units — — — — 1,295 2,178 5,866 10,805 2,424 1,647
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 26.530 27.066 20.071 20.532 18.655 17.213 12.681 — — —
Value at End of Year 34.841 26.530 27.066 20.071 20.532 18.655 17.213 — — —
Venture No. of Units 32,778 39,567 46,943 52,044 52,732 44,208 19,429 — — —
NY Venture No. of Units 690 1,284 1,502 1,343 584 168 169 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 35.603 36.470 27.152 27.888 25.439 23.566 17.431 15.261 15.502 12.518
Value at End of Year 46.570 35.603 36.470 27.152 27.888 25.439 23.566 17.431 15.261 15.502
Ven 22, 20 No. of Units 344,019 380,741 468,537 549,251 604,341 706,518 870,255 1,056,351 1,204,701 1,332,026
Ven 24 No. of Units 64,070 71,827 78,402 82,421 98,942 105,178 129,155 188,168 229,742 295,748
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 34.438 35.347 26.368 27.137 24.804 23.024 17.064 14.970 15.237 13.876
Value at End of Year 44.955 34.438 35.347 26.368 27.137 24.804 23.024 17.064 14.970 15.237
No. of Units 17,752 20,132 21,758 27,185 28,822 34,570 43,542 54,789 64,229 73,174
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — 19.905 14.738 12.916 13.133 11.949
Value at End of Year — — — — — — 19.905 14.738 12.916 13.133
No. of Units — — — — — — 622 647 235 240
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 30.497 31.223 23.234 23.852 21.747 20.136 14.886 — — —
Value at End of Year 39.910 30.497 31.223 23.234 23.852 21.747 20.136 — — —
No. of Units 135 187 210 414 883 841 430 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 33.588 34.527 25.795 26.587 24.338 22.625 16.794 14.755 15.041 13.718
Value at End of Year 43.781 33.588 34.527 25.795 26.587 24.338 22.625 16.794 14.755 15.041
No. of Units 40,069 48,087 52,589 58,305 65,703 74,056 86,464 114,093 136,356 175,819
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 23.852 21.747 20.136 14.886 13.026 13.226 12.015
Value at End of Year — — — — 23.852 21.747 20.136 14.886 13.026 13.226
Venture No. of Units — — — — 8,059 75,017 89,923 85,804 91,904 90,858
NY Venture No. of Units — — — — 10,420 12,116 1,297 1,393 1,425 1,426
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 26.210 26.794 19.908 20.407 18.578 17.176 12.679 — — —
Value at End of Year 34.352 26.210 26.794 19.908 20.407 18.578 17.176 — — —
Venture No. of Units 86,091 91,664 96,411 98,712 89,712 23,342 11,049 — — —
NY Venture No. of Units 12 13 14 16 — — — — — —

 

U- 18

 

 

Venture Prior 

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 22.757 16.883 14.826 15.106 13.770
Value at End of Year — — — — — — 22.757 16.883 14.826 15.106
NY Venture No. of Units — — — — — — 816 891 486 487
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year — — — 27.323 24.961 12.500 — — — —
Value at End of Year — — — — 27.323 24.961 — — — —
NY Venture No. of Units — — — — 197 408 — — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 35.603 36.470 27.152 27.888 25.439 23.566 17.431 15.261 15.502 16.285
Value at End of Year 46.570 35.603 36.470 27.152 27.888 25.439 23.566 17.431 15.261 15.502
Ven 9 No. of Units 154 159 165 170 176 182 187 193 198 204
Capital Appreciation Value Trust - Series II Shares (units first credited 06-16-2008)            
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 20.904 20.120 18.165 15.070 13.315 13.092 11.655
Value at End of Year — — — — 20.904 20.120 18.165 15.070 13.315 13.092
Venture No. of Units — — — — 2,962,350 5,477,596 6,183,277 6,866,369 7,164,185 7,641,483
NY Venture No. of Units — — — — 96,503 219,520 241,055 259,619 272,140 280,181
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 21.203 21.394 18.792 17.600 16.915 15.249 12.631 — — —
Value at End of Year 26.050 21.203 21.394 18.792 17.600 16.915 15.249 — — —
Venture No. of Units 3,549,110 4,105,952 4,593,194 5,373,832 2,688,384 349,580 159,237 — — —
NY Venture No. of Units 124,254 145,473 173,369 183,495 108,146 11,875 2,479 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 24.417 24.737 21.815 20.513 19.793 17.915 14.899 13.198 13.009 11.610
Value at End of Year 29.879 24.417 24.737 21.815 20.513 19.793 17.915 14.899 13.198 13.009
Ven 22, 20 No. of Units 308,244 319,354 379,510 325,332 319,832 282,962 195,767 251,175 294,319 394,179
Ven 24 No. of Units 2,910 2,852 3,252 5,683 2,017 3,706 3,276 46,971 48,466 54,180
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 23.907 24.269 21.445 20.206 19.536 17.718 14.765 13.105 12.943 11.574
Value at End of Year 29.197 23.907 24.269 21.445 20.206 19.536 17.718 14.765 13.105 12.943
No. of Units 9,089 7,641 10,446 8,554 6,266 7,213 7,339 12,232 12,593 12,972
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — 17.816 14.832 13.151 12.976 11.592
Value at End of Year — — — — — — 17.816 14.832 13.151 12.976
No. of Units — — — — — — 218 232 247 265
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year — — — — 19.858 12.500 — — — —
Value at End of Year — — — — — 19.858 — — — —
No. of Units — — — — — 1,406 — — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 23.532 23.924 21.172 19.979 19.345 17.571 14.664 13.035 12.894 11.547
Value at End of Year 28.696 23.532 23.924 21.172 19.979 19.345 17.571 14.664 13.035 12.894
No. of Units 1,755 1,902 1,676 2,622 964 191 606 613 1,665 2,015
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — 21.908 20.591 19.858 17.965 14.933 13.221 13.026 11.619
Value at End of Year — — — 21.908 20.591 19.858 17.965 14.933 13.221 13.026
Venture No. of Units — — — 796 1,322,087 2,138,462 2,342,815 2,517,225 2,672,810 2,884,128
NY Venture No. of Units — — — — 99,579 170,820 210,088 217,770 239,743 235,530
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 20.947 21.179 18.640 17.493 16.845 15.216 12.630 — — —
Value at End of Year 25.684 20.947 21.179 18.640 17.493 16.845 15.216 — — —
Venture No. of Units 1,337,162 1,573,785 1,799,544 2,064,757 885,921 137,828 46,499 — — —
NY Venture No. of Units 96,762 106,073 169,935 189,362 100,902 22,004 1,270 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 17.620 14.698 13.058 12.911 11.556
Value at End of Year — — — — — — 17.620 14.698 13.058 12.911
NY Venture No. of Units — — — — — — 681 10,597 10,656 14,088

 

U- 19

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 24.033 24.385 21.537 20.282 19.600 17.767 14.798 — — —
Value at End of Year 29.366 24.033 24.385 21.537 20.282 19.600 17.767 — — —
NY Venture No. of Units 12,339 12,472 13,174 13,247 13,347 13,508 9,432 — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 24.417 24.737 21.815 20.513 19.793 17.915 14.899 13.198 13.009 11.610
Value at End of Year 29.879 24.417 24.737 21.815 20.513 19.793 17.915 14.899 13.198 13.009
Ven 9 No. of Units 3,659 3,642 4,369 4,674 3,618 709 — — — —
No. of Units 45,815 37,919 42,893 31,885 20,577 16,201 8,565 10,191 10,194 10,740
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 24.417 24.737 21.815 20.513 19.793 12.500 — — — —
Value at End of Year 29.879 24.417 24.737 21.815 20.513 19.793 — — — —
No. of Units 54 2,535 1,765 2,353 187 41 — — — —
Core Allocation Plus Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 06-16-2008)    
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — 12.756 11.385 11.813 10.835
Value at End of Year — — — — — — — 12.756 11.385 11.813
Venture No. of Units — — — — — — — 3,724,057 3,795,289 4,069,787
NY Venture No. of Units — — — — — — — 198,316 212,885 212,355
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — 12.612 11.284 11.738 10.794
Value at End of Year — — — — — — — 12.612 11.284 11.738
Ven 22, 20 No. of Units — — — — — — — 92,130 112,678 135,007
Ven 24 No. of Units — — — — — — — 3,058 2,995 2,932
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — 12.498 11.205 11.679 10.760
Value at End of Year — — — — — — — 12.498 11.205 11.679
No. of Units — — — — — — — 1,183 3,698 5,112
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — 12.640 11.304 11.753 10.802
Value at End of Year — — — — — — — 12.640 11.304 11.753
Venture No. of Units — — — — — — — 1,485,325 1,549,542 1,671,457
NY Venture No. of Units — — — — — — — 184,888 187,848 185,640
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — — 12.441 11.165 11.649 10.744
Value at End of Year — — — — — — — 12.441 11.165 11.649
NY Venture No. of Units — — — — — — — 827 827 6,591
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — 12.612 11.284 11.738 10.794
Value at End of Year — — — — — — — 12.612 11.284 11.738
No. of Units — — — — — — — 1,144 1,387 3,525
Core Allocation Trust (merged into Lifestyle Growth Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2009)    
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — — 16.022 16.486 15.062
Value at End of Year — — — — — — — — 16.022 16.486
Venture 2006 No. of Units — — — — — — — — 1,988,995 1,491,636
Venture 2006 No. of Units — — — — — — — — 168,405 132,359
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — 15.916 16.418 15.037
Value at End of Year — — — — — — — — 15.916 16.418
Ven 22, 20 No. of Units — — — — — — — — 169,094 113,312
Ven 24 No. of Units — — — — — — — — 52,258 45,762
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — — — — 15.017
Value at End of Year — — — — — — — — — 16.363
No. of Units — — — — — — — — — 355
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — — 15.874 16.391 15.027
Value at End of Year — — — — — — — — 15.874 16.391
No. of Units — — — — — — — — 855 682

 

U- 20

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — — 15.768 16.322 15.002
Value at End of Year — — — — — — — — 15.768 16.322
No. of Units — — — — — — — — 6,476 4,494
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — — 15.937 16.432 15.042
Value at End of Year — — — — — — — — 15.937 16.432
Venture 2006 No. of Units — — — — — — — — 906,304 736,759
Venture 2006 No. of Units — — — — — — — — 202,952 181,174
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — — — 15.789 16.336 15.007
Value at End of Year — — — — — — — — 15.789 16.336
Venture 2006 No. of Units — — — — — — — — 38,212 35,720
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — 15.916 16.418 15.037
Value at End of Year — — — — — — — — 15.916 16.418
Ven 9 No. of Units — — — — — — — — 432 449
No. of Units — — — — — — — — 8,735 15,231
Core Balanced Trust (merged into Lifestyle Growth Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2009)    
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — — 16.632 16.675 15.054
Value at End of Year — — — — — — — — 16.632 16.675
Venture 2006 No. of Units — — — — — — — — 3,879,903 3,007,346
Venture 2006 No. of Units — — — — — — — — 278,809 225,661
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — 16.522 16.606 15.029
Value at End of Year — — — — — — — — 16.522 16.606
Ven 22, 20 No. of Units — — — — — — — — 278,659 190,032
Ven 24 No. of Units — — — — — — — — 15,688 42,429
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — — 16.434 16.551 15.009
Value at End of Year — — — — — — — — 16.434 16.551
No. of Units — — — — — — — — 5,182 4,478
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — — 16.478 16.578 15.019
Value at End of Year — — — — — — — — 16.478 16.578
No. of Units — — — — — — — — 19,578 5,031
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — — 16.368 16.509 14.994
Value at End of Year — — — — — — — — 16.368 16.509
No. of Units — — — — — — — — 53,259 35,149
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — — 16.543 16.620 15.034
Value at End of Year — — — — — — — — 16.543 16.620
Venture 2006 No. of Units — — — — — — — — 1,821,767 1,316,111
Venture 2006 No. of Units — — — — — — — — 369,983 334,797
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — — — 16.390 16.523 14.999
Value at End of Year — — — — — — — — 16.390 16.523
Venture 2006 No. of Units — — — — — — — — 353 363
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — 16.522 16.606 15.029
Value at End of Year — — — — — — — — 16.522 16.606
Ven 9 No. of Units — — — — — — — — 1,192 —
No. of Units — — — — — — — — 24,220 23,118
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — 16.522 16.606 12.500
Value at End of Year — — — — — — — — 16.522 16.606
No. of Units — — — — — — — — 217 46

 

U- 21

 

 

Venture Prior 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

 

 

12/31/19

 

12/31/18

 

12/31/17

 

12/31/16

 

12/31/15

 

12/31/14

 

12/31/13

 

12/31/12

 

12/31/11

 

12/31/10

 

Core Bond Trust - Series I Shares (units first credited 04-24-2015)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

17.344

 

17.694

 

17.352

 

17.127

 

17.592

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

18.526

 

17.344

 

17.694

 

17.352

 

17.127

 

—

 

—

 

—

 

—

 

—

 

Ven 22, 20 No. of Units

 

1,349,159

 

1,486,165

 

1,677,329

 

1,969,954

 

2,225,099

 

—

 

—

 

—

 

—

 

—

 

Ven 24 No. of Units

 

81,183

 

84,592

 

95,680

 

105,053

 

113,848

 

—

 

—

 

—

 

—

 

—

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

16.876

 

17.251

 

16.951

 

16.765

 

17.245

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

17.991

 

16.876

 

17.251

 

16.951

 

16.765

 

—

 

—

 

—

 

—

 

—

 

No. of Units

 

29,735

 

32,637

 

43,036

 

44,007

 

50,269

 

—

 

—

 

—

 

—

 

—

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

16.534

 

16.926

 

16.657

 

16.499

 

16.988

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

17.599

 

16.534

 

16.926

 

16.657

 

16.499

 

—

 

—

 

—

 

—

 

—

 

No. of Units

 

99,481

 

110,377

 

134,027

 

146,696

 

164,496

 

—

 

—

 

—

 

—

 

—

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

17.344

 

17.694

 

17.352

 

17.127

 

17.592

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

18.526

 

17.344

 

17.694

 

17.352

 

17.127

 

—

 

—

 

—

 

—

 

—

 

Ven 7, 8 No. of Units

 

320,330

 

357,791

 

418,189

 

468,605

 

523,063

 

—

 

—

 

—

 

—

 

—

 

Ven 9 No. of Units

 

108,236

 

111,523

 

114,807

 

124,066

 

131,446

 

—

 

—

 

—

 

—

 

—

 

Ven 3 Contracts with no Optional Riders

Value at Start of Year

 

17.344

 

17.694

 

17.352

 

17.127

 

17.592

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

18.526

 

17.344

 

17.694

 

17.352

 

17.127

 

—

 

—

 

—

 

—

 

—

 

No. of Units

 

40,073

 

41,871

 

43,020

 

48,928

 

46,848

 

—

 

—

 

—

 

—

 

—

 

Core Bond Trust - Series II Shares (units first credited 05-01-2005)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

12.341

 

12.175

 

12.500

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

12.341

 

12.175

 

—

 

—

 

—

 

—

 

—

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

14

 

269,813

 

—

 

—

 

—

 

—

 

—

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

27,918

 

—

 

—

 

—

 

—

 

—

 

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

12.417

 

12.642

 

12.372

 

12.187

 

12.500

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

13.283

 

12.417

 

12.642

 

12.372

 

12.187

 

—

 

—

 

—

 

—

 

—

 

Venture No. of Units

 

356,162

 

373,125

 

489,390

 

571,025

 

495,868

 

—

 

—

 

—

 

—

 

—

 

NY Venture No. of Units

 

33,716

 

37,712

 

43,748

 

46,685

 

25,631

 

—

 

—

 

—

 

—

 

—

 

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

17.220

 

17.603

 

17.296

 

17.105

 

17.327

 

16.619

 

17.260

 

16.472

 

15.461

 

14.664

 

Value at End of Year

 

18.347

 

17.220

 

17.603

 

17.296

 

17.105

 

17.327

 

16.619

 

17.260

 

16.472

 

15.461

 

Ven 22, 20 No. of Units

 

680,318

 

759,696

 

882,048

 

1,015,950

 

1,066,675

 

174,941

 

156,905

 

218,140

 

304,341

 

328,895

 

Ven 24 No. of Units

 

152,404

 

170,354

 

195,293

 

227,900

 

258,796

 

18,466

 

17,165

 

21,609

 

13,409

 

8,077

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

16.756

 

17.162

 

16.897

 

16.744

 

16.333

 

16.333

 

16.997

 

16.254

 

15.287

 

14.528

 

Value at End of Year

 

17.816

 

16.756

 

17.162

 

16.897

 

16.744

 

16.333

 

16.333

 

16.997

 

16.254

 

15.287

 

No. of Units

 

47,253

 

47,531

 

66,075

 

71,122

 

71,313

 

—

 

183

 

192

 

4,148

 

12,181

 

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

12.258

 

12.524

 

12.300

 

12.158

 

12.500

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

13.067

 

12.258

 

12.524

 

12.300

 

12.158

 

—

 

—

 

—

 

—

 

—

 

No. of Units

 

5,050

 

6,261

 

8,121

 

13,860

 

20,003

 

—

 

—

 

—

 

—

 

—

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

16.415

 

16.839

 

16.603

 

16.478

 

16.751

 

16.122

 

16.802

 

16.092

 

15.157

 

14.426

 

Value at End of Year

 

17.428

 

16.415

 

16.839

 

16.603

 

16.478

 

16.751

 

16.122

 

16.802

 

16.092

 

15.157

 

No. of Units

 

133,006

 

154,432

 

184,474

 

245,571

 

270,280

 

49,309

 

32,668

 

39,351

 

36,050

 

38,320

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

17.352

 

17.127

 

17.327

 

16.619

 

17.260

 

16.472

 

15.461

 

14.664

 

Value at End of Year

 

—

 

—

 

—

 

17.352

 

17.127

 

17.327

 

16.619

 

17.260

 

16.472

 

15.461

 

Ven 9 No. of Units

 

—

 

—

 

—

 

—

 

—

 

3,925

 

3,928

 

8,230

 

8,832

 

6,075

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

26,661

 

22,047

 

26,831

 

34,207

 

22,745

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

12.158

 

12.500

 

—

 

—

 

—

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

—

 

12.158

 

—

 

—

 

—

 

—

 

—

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

98,864

 

—

 

—

 

—

 

—

 

—

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

18,938

 

—

 

—

 

—

 

—

 

—

 

 

 

 

U- 22

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

Year

Year

 

Year

 

Year

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

 

Ended

Ended

 

Ended

 

Ended

 

 

 

12/31/19

 

12/31/18

 

12/31/17

 

12/31/16

 

12/31/15

 

12/31/14

 

 

12/31/13

12/31/12

 

12/31/11

 

12/31/10

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

12.326

 

12.575

 

12.331

 

12.171

 

12.500

 

—

 

 

—

—

 

—

 

—

 

Value at End of Year

 

13.159

 

12.326

 

12.575

 

12.331

 

12.171

 

—

 

 

—

—

 

—

 

—

 

Venture No. of Units

 

230,481

 

240,588

 

281,855

 

316,656

 

280,576

 

—

 

 

—

—

 

—

 

—

 

NY Venture No. of Units

 

37,560

 

37,910

 

46,923

 

51,295

 

30,776

 

—

 

 

—

—

 

—

 

—

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

16.870

 

17.271

 

16.996

 

16.834

 

12.500

 

—

 

 

—

—

 

—

 

—

 

Value at End of Year

 

17.947

 

16.870

 

17.271

 

16.996

 

16.834

 

—

 

 

—

—

 

—

 

—

 

NY Venture No. of Units

 

730

 

730

 

1,426

 

1,450

 

2,738

 

—

 

 

—

—

 

—

 

—

 

Ven 3 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

17.327

 

16.619

 

 

17.260

16.472

 

15.461

 

14.664

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

17.327

 

 

16.619

17.260

 

16.472

 

15.461

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

2,243

 

 

2,404

2,570

 

2,741

 

2,998

 

Core Disciplined Diversification Trust (merged into Lifestyle Growth Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2009)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.576

 

17.105

 

15.421

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.576

 

17.105

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

3,426,950

 

2,510,200

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

212,478

 

170,670

 

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.466

 

17.034

 

15.396

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.466

 

17.034

 

Ven 22, 20 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

430,353

 

343,397

 

Ven 24 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

63,593

 

36,957

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.379

 

16.978

 

15.375

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.379

 

16.978

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

6,666

 

3,495

 

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.422

 

17.006

 

15.385

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.422

 

17.006

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

6,347

 

6,115

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.313

 

16.935

 

12.500

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.313

 

16.935

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

29,757

 

12,405

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.488

 

17.048

 

15.401

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.488

 

17.048

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

1,332,949

 

977,297

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

140,040

 

119,635

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.335

 

16.949

 

15.365

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.335

 

16.949

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

6,823

 

7,512

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.466

 

17.034

 

15.396

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

16.466

 

17.034

 

Ven 9 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

364

 

1,488

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

7,141

 

6,761

 

Core Fundamental Holdings Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 05-01-2009)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.383

15.869

 

15.970

 

14.733

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.383

 

15.869

 

15.970

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

6,535,393

 

6,281,785

 

5,572,448

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

433,851

 

429,573

 

332,103

 

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.224

15.764

 

15.903

 

14.708

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.224

 

15.764

 

15.903

 

Ven 22, 20 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

387,830

 

406,901

 

335,300

 

Ven 24 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

58,280

 

49,001

 

37,788

 

 

U- 23

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

Year

Year

 

Year

 

Year

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

 

Ended

Ended

 

Ended

 

Ended

 

 

 

12/31/19

 

12/31/18

 

12/31/17

 

12/31/16

 

12/31/15

 

12/31/14

 

 

12/31/13

12/31/12

 

12/31/11

 

12/31/10

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.098

15.680

 

15.850

 

14.688

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.098

 

15.680

 

15.850

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

1,188

 

5,183

 

7,152

 

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.161

15.722

 

15.877

 

14.698

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.161

 

15.722

 

15.877

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

7,849

 

3,721

 

4,893

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.004

15.617

 

15.811

 

14.674

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.004

 

15.617

 

15.811

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

27,922

 

9,920

 

11,014

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.256

15.785

 

15.917

 

14.713

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.256

 

15.785

 

15.917

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

3,114,690

 

3,132,967

 

2,738,108

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

499,231

 

503,603

 

475,017

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.035

15.638

 

15.824

 

14.679

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.035

 

15.638

 

15.824

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

20,334

 

5,726

 

6,603

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.224

15.764

 

15.903

 

14.708

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.224

 

15.764

 

15.903

 

Ven 9 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

418

 

420

 

421

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

31,327

 

28,115

 

29,029

 

Core Global Diversification Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 05-01-2009)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.311

15.512

 

16.303

 

15.229

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.311

 

15.512

 

16.303

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

5,699,267

 

6,049,162

 

5,382,595

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

460,516

 

484,933

 

373,692

 

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.153

15.409

 

16.235

 

15.203

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.153

 

15.409

 

16.235

 

Ven 22, 20 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

568,127

 

587,503

 

649,290

 

Ven 24 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

15,648

 

18,059

 

20,466

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.028

15.327

 

16.181

 

15.183

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.028

 

15.327

 

16.181

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

7,758

 

6,312

 

18,664

 

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.090

15.368

 

16.208

 

15.193

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.090

 

15.368

 

16.208

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

3,337

 

3,518

 

2,815

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

16.934

15.266

 

16.141

 

15.168

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.934

 

15.266

 

16.141

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

43,248

 

34,338

 

35,716

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

17.185

15.429

 

16.248

 

12.500

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

17.185

 

15.429

 

16.248

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

2,827,336

 

2,685,750

 

2,220,439

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

315,947

 

361,252

 

345,131

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

16.965

15.286

 

16.154

 

15.173

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

16.965

 

15.286

 

16.154

 

Venture 2006 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

12,022

 

1,039

 

9,478

 

 

 

U- 24

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

 

 

12/31/19

 

12/31/18

 

12/31/17

 

12/31/16

 

12/31/15

 

12/31/14

 

12/31/13

 

12/31/12

 

12/31/11

 

12/31/10

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

17.153

 

15.409

 

16.235

 

15.203

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

17.153

 

15.409

 

16.235

 

Ven 9 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2,166

 

974

 

1,516

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

4,715

 

7,515

 

3,501

 

Ven 3 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

17.153

 

12.500

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

17.153

 

—

 

—

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

72

 

—

 

—

 

Core Strategy Trust (merged into Lifestyle Growth Portfolio eff 10-27-2017) - Series II Shares (units first credited 02-13-2006)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

19.024

 

17.993

 

18.269

 

17.449

 

14.828

 

13.361

 

13.514

 

12.187

 

Value at End of Year

 

—

 

—

 

—

 

19.024

 

17.993

 

18.269

 

17.449

 

14.828

 

13.361

 

13.514

 

Venture No. of Units

 

—

 

—

 

—

 

7,527,429

 

31,491,721

 

56,146,127

 

66,446,934

 

13,475,326

 

13,677,760

 

13,423,487

 

NY Venture No. of Units

 

—

 

—

 

—

 

450,471

 

1,497,815

 

2,970,277

 

3,555,858

 

890,516

 

916,735

 

897,844

 

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

—

 

—

 

16.294

 

15.387

 

15.600

 

14.877

 

12.624

 

—

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

16.294

 

15.387

 

15.600

 

14.877

 

—

 

—

 

—

 

Venture No. of Units

 

—

 

—

 

—

 

57,073,096

 

33,910,346

 

8,949,763

 

1,961,298

 

—

 

—

 

—

 

NY Venture No. of Units

 

—

 

—

 

—

 

3,041,127

 

1,913,351

 

611,200

 

128,930

 

—

 

—

 

—

 

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

—

 

—

 

18.952

 

17.969

 

18.291

 

17.514

 

14.920

 

13.478

 

13.667

 

12.355

 

Value at End of Year

 

—

 

—

 

—

 

18.952

 

17.969

 

18.291

 

17.514

 

14.920

 

13.478

 

13.667

 

Ven 22, 20 No. of Units

 

—

 

—

 

—

 

2,689,755

 

2,828,949

 

2,786,310

 

2,980,494

 

637,327

 

614,137

 

547,240

 

Ven 24 No. of Units

 

—

 

—

 

—

 

178,212

 

194,221

 

224,297

 

295,565

 

109,376

 

106,952

 

125,588

 

Ven 22, 20 Contracts with GEM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value at Start of Year

 

—

 

—

 

18.544

 

17.618

 

17.969

 

17.240

 

14.716

 

13.320

 

13.534

 

12.260

 

Value at End of Year

 

—

 

—

 

—

 

18.544

 

17.618

 

17.969

 

17.240

 

14.716

 

13.320

 

13.534

 

No. of Units

 

—

 

—

 

—

 

40,173

 

31,702

 

35,103

 

47,185

 

2,421

 

458

 

3,576

 

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

17.723

 

16.986

 

14.486

 

13.098

 

13.295

 

12.031

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

17.723

 

16.986

 

14.486

 

13.098

 

13.295

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

5,027

 

74,927

 

84,362

 

89,492

 

86,718

 

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

—

 

—

 

18.622

 

17.648

 

17.955

 

17.183

 

14.632

 

—

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

18.622

 

17.648

 

17.955

 

17.183

 

—

 

—

 

—

 

No. of Units

 

—

 

—

 

—

 

53,291

 

81,247

 

124,676

 

30,063

 

—

 

—

 

—

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

—

 

—

 

18.244

 

17.358

 

17.731

 

17.037

 

14.565

 

13.203

 

13.435

 

12.189

 

Value at End of Year

 

—

 

—

 

—

 

18.244

 

17.358

 

17.731

 

17.037

 

14.565

 

13.203

 

13.435

 

No. of Units

 

—

 

—

 

—

 

108,134

 

205,524

 

241,403

 

277,737

 

69,715

 

65,375

 

89,983

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

18.622

 

17.648

 

17.955

 

17.183

 

14.632

 

13.210

 

13.388

 

12.098

 

Value at End of Year

 

—

 

—

 

—

 

18.622

 

17.648

 

17.955

 

17.183

 

14.632

 

13.210

 

13.388

 

Venture No. of Units

 

—

 

—

 

 

 

3,015,001

 

13,026,772

 

23,244,692

 

26,454,074

 

4,638,098

 

4,536,137

 

4,237,017

 

NY Venture No. of Units

 

—

 

—

 

 

 

442,473

 

1,493,973

 

2,992,093

 

3,481,565

 

582,792

 

616,536

 

629,758

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

—

 

—

 

21.326

 

20.180

 

20.500

 

19.590

 

16.656

 

—

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

21.326

 

20.180

 

20.500

 

19.590

 

—

 

—

 

—

 

Venture No. of Units

 

—

 

—

 

—

 

16,815,044

 

9,885,134

 

2,269,224

 

380,360

 

—

 

—

 

—

 

NY Venture No. of Units

 

—

 

—

 

—

 

1,799,914

 

1,196,910

 

298,203

 

81,234

 

—

 

—

 

—

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

17.104

 

14.615

 

13.242

 

13.468

 

12.212

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

17.104

 

14.615

 

13.242

 

13.468

 

NY Venture No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

150,580

 

177,853

 

201,489

 

213,081

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

 

—

 

—

 

18.645

 

17.705

 

18.049

 

17.308

 

14.767

 

—

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

18.645

 

17.705

 

18.049

 

17.308

 

—

 

—

 

—

 

NY Venture No. of Units

 

—

 

—

 

—

 

202,162

 

198,427

 

225,839

 

81,548

 

—

 

—

 

—

 

U- 25

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

Year

Year

 

Year

 

Year

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

Ended

 

 

Ended

Ended

 

Ended

 

Ended

 

 

 

12/31/19

 

12/31/18

 

12/31/17

 

12/31/16

 

12/31/15

 

12/31/14

 

 

12/31/13

12/31/12

 

12/31/11

 

12/31/10

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

18.952

 

17.969

 

18.291

 

17.514

 

 

14.920

13.478

 

13.667

 

12.355

 

Value at End of Year

 

—

 

—

 

—

 

18.952

 

17.969

 

18.291

 

 

17.514

14.920

 

13.478

 

13.667

 

Ven 9 No. of Units

 

—

 

—

 

—

 

12,674

 

7,931

 

11,034

 

 

10,734

9,247

 

10,296

 

16,740

 

No. of Units

 

—

 

—

 

—

 

45,793

 

53,027

 

60,395

 

 

61,150

8,063

 

9,149

 

12,732

 

Ven 3 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

18.952

 

17.969

 

18.291

 

17.514

 

 

14.920

13.521

 

—

 

—

 

Value at End of Year

 

—

 

—

 

—

 

18.952

 

17.969

 

18.291

 

 

17.514

14.920

 

—

 

—

 

No. of Units

 

—

 

—

 

—

 

1,788

 

1,807

 

1,902

 

 

7,337

70

 

—

 

—

 

Disciplined Diversification Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 06-16-2008)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.809

12.407

 

12.844

 

11.479

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.809

 

12.407

 

12.844

 

Venture No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

6,030,251

 

6,183,430

 

6,760,483

 

NY Venture No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

208,440

 

216,823

 

215,037

 

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.653

12.298

 

12.763

 

11.435

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.653

 

12.298

 

12.763

 

Ven 22, 20 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

180,278

 

203,551

 

273,524

 

Ven 24 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

29,740

 

29,705

 

29,526

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.530

12.211

 

12.698

 

11.400

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.530

 

12.211

 

12.698

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

573

 

574

 

3,352

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.438

12.146

 

12.650

 

11.374

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.438

 

12.146

 

12.650

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

79

 

79

 

80

 

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.684

12.320

 

12.779

 

11.444

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.684

 

12.320

 

12.779

 

Venture No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

1,256,933

 

1,337,130

 

1,471,414

 

NY Venture No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

123,194

 

127,684

 

126,294

 

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.468

12.168

 

12.666

 

11.382

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.468

 

12.168

 

12.666

 

NY Venture No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

1,114

 

1,112

 

1,879

 

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.653

12.298

 

12.763

 

11.435

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.653

 

12.298

 

12.763

 

Ven 9 No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

—

 

—

 

338

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

7,969

 

7,918

 

7,865

 

Ven 3 Contracts with no Optional Riders

Value at Start of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

13.653

12.298

 

12.763

 

11.435

 

Value at End of Year

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

13.653

 

12.298

 

12.763

 

No. of Units

 

—

 

—

 

—

 

—

 

—

 

—

 

 

—

6,080

 

6,082

 

6,084

 

Disciplined Value International Trust (formerly International Value Trust) - Series I Shares (units first credited 05-01-1999)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

 

18.722

 

22.347

 

19.345

 

17.478

 

19.227

 

22.286

 

 

15.585

13.239

 

15.406

 

14.468

 

Value at End of Year

 

20.738

 

18.722

 

22.347

 

19.345

 

17.478

 

19.227

 

 

22.286

15.585

 

13.239

 

15.406

 

Ven 22, 20 No. of Units

 

1,390,046

 

1,575,079

 

1,732,405

 

1,995,670

 

1,699,482

 

1,914,785

 

 

2,139,953

2,473,384

 

2,915,359

 

3,469,348

 

Ven 24 No. of Units

 

41,170

 

42,900

 

48,532

 

52,490

 

41,935

 

52,949

 

 

61,608

69,461

 

82,705

 

103,306

 

Ven 22, 20 Contracts with GEM

Value at Start of Year

 

19.119

 

22.867

 

19.835

 

17.957

 

19.793

 

22.988

 

 

18.517

15.762

 

18.378

 

17.293

 

Value at End of Year

 

21.136

 

19.119

 

22.867

 

19.835

 

17.957

 

19.793

 

 

22.988

18.517

 

15.762

 

18.378

 

No. of Units

 

12,132

 

12,740

 

14,194

 

15,299

 

11,440

 

13,443

 

 

13,418

14,941

 

16,844

 

24,696

 

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

 

17.587

 

21.066

 

18.300

 

16.592

 

18.316

 

21.305

 

 

17.186

14.652

 

17.109

 

16.123

 

Value at End of Year

 

19.413

 

17.587

 

21.066

 

18.300

 

16.592

 

18.316

 

 

21.305

17.186

 

14.652

 

17.109

 

No. of Units

 

28,275

 

37,910

 

53,799

 

59,432

 

53,108

 

57,022

 

 

62,184

73,552

 

79,074

 

98,522

 

 

 

U- 26

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 18.722 22.347 19.345 17.478 19.227 22.286 17.915 15.219 17.710 16.632
Value at End of Year 20.738 18.722 22.347 19.345 17.478 19.227 22.286 17.915 15.219 17.710
Ven 7, 8 No. of Units 272,993 307,965 344,858 380,704 356,427 410,604 468,968 534,355 628,728 721,606
Ven 9 No. of Units 99,249 106,884 123,411 139,454 124,693 131,975 147,898 159,409 180,182 217,338
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 18.722 22.347 19.345 17.478 19.227 22.286 17.915 15.219 17.710 16.632
Value at End of Year 20.738 18.722 22.347 19.345 17.478 19.227 22.286 17.915 15.219 17.710
No. of Units 22,888 24,241 24,822 37,402 32,353 37,574 37,515 43,734 50,329 59,298
Disciplined Value International Trust (formerly International Value Trust) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 12.211 13.419 15.541 12.487 10.609 12.333 11.577
Value at End of Year — — — — 12.211 13.419 15.541 12.487 10.609 12.333
Venture No. of Units — — — — 24,535 78,598 197,384 241,832 286,300 310,213
NY Venture No. of Units — — — — 2,975 173 10,157 14,746 21,755 19,347
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.724 16.342 14.122 12.742 13.982 16.168 12.971 — — —
Value at End of Year 15.236 13.724 16.342 14.122 12.742 13.982 16.168 — — —
Venture No. of Units 100,127 114,948 129,787 150,135 129,206 119,273 39,498 — — —
NY Venture No. of Units 2,568 3,861 5,661 7,055 8,587 9,691 4,421 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 20.822 24.894 21.599 19.567 21.556 25.026 20.159 17.170 20.011 18.831
Value at End of Year 23.024 20.822 24.894 21.599 19.567 21.556 25.026 20.159 17.170 20.011
Ven 22, 20 No. of Units 429,482 454,973 544,887 625,881 606,025 690,357 837,176 985,770 1,165,501 1,324,945
Ven 24 No. of Units 97,965 102,923 119,687 125,209 112,661 111,929 140,218 183,990 219,005 257,472
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 20.140 24.128 20.975 19.040 21.018 24.450 19.734 16.842 19.668 18.545
Value at End of Year 22.225 20.140 24.128 20.975 19.040 21.018 24.450 19.734 16.842 19.668
No. of Units 18,994 26,656 27,106 33,151 28,499 39,035 50,040 55,244 59,426 62,784
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 15.129 12.199 10.400 12.133 11.429
Value at End of Year — — — — — — 15.129 12.199 10.400 12.133
No. of Units — — — — — — 6,420 14,692 13,958 16,754
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.765 15.254 13.228 11.977 13.188 15.304 12.321 — — —
Value at End of Year 14.122 12.765 15.254 13.228 11.977 13.188 15.304 — — —
No. of Units 5,553 5,525 5,475 6,034 14,246 8,447 6,869 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 19.644 23.568 20.520 18.654 20.623 24.027 19.422 16.600 19.415 18.333
Value at End of Year 21.644 19.644 23.568 20.520 18.654 20.623 24.027 19.422 16.600 19.415
No. of Units 40,465 43,008 48,271 55,119 55,509 65,456 76,395 96,652 111,312 135,565
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 11.977 13.188 15.304 12.321 10.489 12.219 11.492
Value at End of Year — — — — 11.977 13.188 15.304 12.321 10.489 12.219
Venture No. of Units — — — — 20,196 91,550 158,266 175,518 202,529 209,090
NY Venture No. of Units — — — — 25 5,129 8,731 11,431 11,392 10,997
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.558 16.177 14.008 12.664 13.924 16.133 12.970 — — —
Value at End of Year 15.022 13.558 16.177 14.008 12.664 13.924 16.133 — — —
Venture No. of Units 118,019 123,137 124,421 134,554 109,096 65,495 22,446 — — —
NY Venture No. of Units 5,719 5,462 5,916 6,058 5,536 4,127 396 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 24.167 19.525 16.680 19.499 18.404
Value at End of Year — — — — — — 24.167 19.525 16.680 19.499
NY Venture No. of Units — — — — — — 1,291 1,438 1,474 1,414
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.309 24.317 21.130 19.170 21.151 24.593 19.840 — — —
Value at End of Year 22.422 20.309 24.317 21.130 19.170 21.151 24.593 — — —
NY Venture No. of Units 2,737 2,562 2,470 2,678 1,546 1,505 110 — — —

 

U- 27

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Emerging Markets Value Trust - Series I Shares (units first credited 10-27-2017)        
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 11.023 12.968 12.500 — — — — — — —
Value at End of Year 12.034 11.023 12.968 — — — — — — —
Ven 22, 20 No. of Units 517,193 570,388 621,930 — — — — — — —
Ven 24 No. of Units 1,657 2,375 4,778 — — — — — — —
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 10.997 12.963 12.500 — — — — — — —
Value at End of Year 11.981 10.997 12.963 — — — — — — —
No. of Units 4,486 10,121 10,142 — — — — — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 10.978 12.960 12.500 — — — — — — —
Value at End of Year 11.942 10.978 12.960 — — — — — — —
No. of Units 4,809 5,177 4,861 — — — — — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 11.023 12.968 12.500 — — — — — — —
Value at End of Year 12.034 11.023 12.968 — — — — — — —
Ven 7, 8 No. of Units 51,654 52,420 57,738 — — — — — — —
Ven 9 No. of Units 16,364 16,977 17,610 — — — — — — —
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 11.023 12.968 12.500 — — — — — — —
Value at End of Year 12.034 11.023 12.968 — — — — — — —
No. of Units 646 686 3,047 — — — — — — —
Emerging Markets Value Trust - Series II Shares (units first credited 10-27-2017)
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.075 12.977 12.500 — — — — — — —
Value at End of Year 12.139 11.075 12.977 — — — — — — —
Venture No. of Units 280,906 291,745 337,430 — — — — — — —
NY Venture No. of Units 17,157 20,032 23,820 — — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 11.023 12.968 12.500 — — — — — — —
Value at End of Year 12.034 11.023 12.968 — — — — — — —
Ven 22, 20 No. of Units 214,333 258,055 298,183 — — — — — — —
Ven 24 No. of Units 196,326 220,189 262,989 — — — — — — —
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 10.997 12.963 12.500 — — — — — — —
Value at End of Year 11.981 10.997 12.963 — — — — — — —
No. of Units 8,166 8,565 21,654 — — — — — — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.030 12.969 12.500 — — — — — — —
Value at End of Year 12.047 11.030 12.969 — — — — — — —
No. of Units 6,638 6,913 8,894 — — — — — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 10.978 12.960 12.500 — — — — — — —
Value at End of Year 11.942 10.978 12.960 — — — — — — —
No. of Units 1,942 2,251 2,263 — — — — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.049 12.972 — — — — — — — —
Value at End of Year 12.086 11.049 12.972 — — — — — — —
Venture No. of Units 119,531 238,493 253,369 — — — — — — —
NY Venture No. of Units 7,740 8,058 8,628 — — — — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.004 12.964 12.500 — — — — — — —
Value at End of Year 11.995 11.004 12.964 — — — — — — —
NY Venture No. of Units 2,773 5,454 5,867 — — — — — — —
Equity Income Trust - Series I Shares (units first credited 11-02-1992)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 55.516 62.268 54.298 46.224 50.267 47.432 36.988 31.962 32.677 28.785
Value at End of Year 69.165 55.516 62.268 54.298 46.224 50.267 47.432 36.988 31.962 32.677
Ven 22, 20 No. of Units 1,277,694 1,368,858 1,550,586 1,767,434 1,969,234 2,239,695 2,586,878 2,929,864 3,364,438 3,673,893
Ven 24 No. of Units 29,004 31,964 35,150 40,725 45,883 56,661 67,944 75,236 83,236 97,405

 

U- 28

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 26.703 30.011 26.222 22.367 24.373 23.044 18.006 15.591 15.971 14.097
Value at End of Year 33.202 26.703 30.011 26.222 22.367 24.373 23.044 18.006 15.591 15.971
No. of Units 33,375 28,834 27,755 32,717 39,726 50,514 62,943 69,437 77,113 83,225
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 29.676 33.403 29.229 24.970 27.249 25.803 20.192 17.510 17.964 15.880
Value at End of Year 36.843 29.676 33.403 29.229 24.970 27.249 25.803 20.192 17.510 17.964
No. of Units 80,180 72,862 98,291 104,908 117,301 135,340 151,789 172,721 229,660 249,319
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 55.516 62.268 54.298 46.224 50.267 47.432 36.988 31.962 32.677 28.785
Value at End of Year 69.165 55.516 62.268 54.298 46.224 50.267 47.432 36.988 31.962 32.677
Ven 7, 8 No. of Units 444,950 510,791 591,570 673,589 762,068 875,018 1,023,159 1,173,005 1,370,825 1,548,908
Ven 9 No. of Units 228,321 268,423 291,778 327,855 368,467 402,125 437,693 483,278 551,755 641,636
Ven 3 Contracts with no Optional Riders
Value at Start of Year 55.516 62.268 54.298 46.224 50.267 47.432 36.988 31.962 32.677 28.785
Value at End of Year 69.165 55.516 62.268 54.298 46.224 50.267 47.432 36.988 31.962 32.677
No. of Units 24,798 27,415 30,854 34,558 39,876 54,591 56,631 60,253 72,004 75,395
Equity Income Trust - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — 20.831 17.721 19.258 18.167 14.164 12.228 12.495 11.000
Value at End of Year — — — 20.831 17.721 19.258 18.167 14.164 12.228 12.495
Venture No. of Units — — — 18 79,299 186,657 405,693 473,814 503,371 524,443
NY Venture No. of Units — — — — 1,728 11,466 37,936 46,301 42,286 44,872
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 19.277 21.576 18.786 15.957 17.315 16.309 12.696 — — —
Value at End of Year 24.080 19.277 21.576 18.786 15.957 17.315 16.309 — — —
Venture No. of Units 246,853 255,859 294,961 321,430 305,411 255,345 80,514 — — —
NY Venture No. of Units 22,924 21,326 22,375 25,896 26,809 24,485 8,884 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 26.217 29.462 25.755 21.964 23.929 22.629 17.687 15.308 15.682 13.839
Value at End of Year 32.619 26.217 29.462 25.755 21.964 23.929 22.629 17.687 15.308 15.682
Ven 22, 20 No. of Units 883,912 846,213 966,815 1,087,522 1,208,171 1,279,877 1,572,323 1,847,133 2,160,311 2,933,224
Ven 24 No. of Units 209,747 196,410 244,447 282,274 323,207 366,347 432,553 566,834 656,036 622,046
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 25.358 28.555 25.011 21.373 23.331 22.108 17.314 15.015 15.413 13.629
Value at End of Year 31.487 25.358 28.555 25.011 21.373 23.331 22.108 17.314 15.015 15.413
No. of Units 126,483 137,207 139,399 149,128 154,917 163,538 174,511 184,354 211,292 181,156
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 17.685 13.836 11.987 12.293 10.859
Value at End of Year — — — — — — 17.685 13.836 11.987 12.293
No. of Units — — — — — — 17,516 20,744 23,525 43,907
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.778 23.339 20.391 17.381 18.927 17.890 13.976 — — —
Value at End of Year 25.865 20.778 23.339 20.391 17.381 18.927 17.890 — — —
No. of Units 7,365 7,982 8,473 14,318 15,207 18,176 3,716 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 24.733 27.893 24.468 20.940 22.893 21.725 17.040 14.800 15.215 13.474
Value at End of Year 30.665 24.733 27.893 24.468 20.940 22.893 21.725 17.040 14.800 15.215
No. of Units 139,549 140,238 154,968 176,763 173,011 195,919 229,850 276,761 326,867 320,547
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 17.381 18.927 17.890 13.976 12.090 12.379 10.919
Value at End of Year — — — — 17.381 18.927 17.890 13.976 12.090 12.379
Venture No. of Units — — — — 30,267 139,452 226,372 260,721 277,148 265,806
NY Venture No. of Units — — — — 33,013 36,502 35,242 41,444 44,811 46,382
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 19.044 21.359 18.634 15.859 17.243 16.274 12.695 — — —
Value at End of Year 23.742 19.044 21.359 18.634 15.859 17.243 16.274 — — —
Venture No. of Units 156,505 163,902 170,325 191,080 163,304 97,931 49,468 — — —
NY Venture No. of Units 12,674 16,345 17,439 38,914 19,635 9,986 1,558 — — —

 

U- 29

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 21.852 17.131 14.871 15.281 13.526
Value at End of Year — — — — — — 21.852 17.131 14.871 15.281
NY Venture No. of Units — — — — — — 13,998 14,209 14,502 13,912
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 25.570 28.779 25.195 21.519 23.479 22.237 17.407 — — —
Value at End of Year 31.766 25.570 28.779 25.195 21.519 23.479 22.237 — — —
NY Venture No. of Units 3,546 4,994 5,290 6,395 9,208 13,274 201 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — — — — — — — 17.758
Value at End of Year — — — — — — — — — 18.887
Ven 9 No. of Units — — — — — — — — — 11,090
No. of Units — — — — — — — — — 80,786
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — — — — — — — — 12.500
Value at End of Year — — — — — — — — — 18.887
No. of Units — — — — — — — — — 8,632
Financial Industries Trust (formerly Financial Services Trust) - Series I Shares (units first credited 04-30-2001)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 21.151 25.085 22.066 18.746 19.527 18.226 14.136 12.144 13.609 12.295
Value at End of Year 27.487 21.151 25.085 22.066 18.746 19.527 18.226 14.136 12.144 13.609
Ven 22, 20 No. of Units 173,491 212,895 245,434 271,630 265,019 280,078 328,913 363,187 395,533 538,771
Ven 24 No. of Units 2,500 2,661 5,944 8,670 5,588 5,463 6,410 5,778 8,075 11,381
Ven 22, 20 Contracts with GEM
Value at Start of Year 20.416 24.262 21.384 18.204 19.000 17.770 13.809 11.887 13.348 12.083
Value at End of Year 26.479 20.416 24.262 21.384 18.204 19.000 17.770 13.809 11.887 13.348
No. of Units 2,783 8,328 10,352 10,117 10,949 11,612 13,669 14,407 15,095 17,555
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 19.881 23.663 20.887 17.807 18.614 17.435 13.569 11.699 13.156 11.927
Value at End of Year 25.747 19.881 23.663 20.887 17.807 18.614 17.435 13.569 11.699 13.156
No. of Units 13,698 13,464 8,686 10,490 12,422 13,425 14,690 16,876 20,028 30,832
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 21.151 25.085 22.066 18.746 19.527 18.226 14.136 12.144 13.609 12.295
Value at End of Year 27.487 21.151 25.085 22.066 18.746 19.527 18.226 14.136 12.144 13.609
Ven 7, 8 No. of Units 14,666 15,759 16,941 21,199 18,270 19,315 22,757 21,644 29,153 36,784
Ven 9 No. of Units 8,445 9,493 10,022 8,752 8,080 8,066 10,086 9,493 13,564 19,540
Ven 3 Contracts with no Optional Riders
Value at Start of Year 21.151 25.085 22.066 18.746 19.527 18.226 14.136 12.144 13.609 12.295
Value at End of Year 27.487 21.151 25.085 22.066 18.746 19.527 18.226 14.136 12.144 13.609
No. of Units 2,456 2,343 2,948 27,886 1,749 2,011 2,021 2,929 2,936 3,728
Financial Industries Trust (formerly Financial Services Trust) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 15.436 16.078 15.001 11.629 9.985 11.181 10.098
Value at End of Year — — — — 15.436 16.078 15.001 11.629 9.985 11.181
Venture No. of Units — — — — 28,389 41,548 77,603 82,663 85,227 102,913
NY Venture No. of Units — — — — 3,292 4,696 7,074 10,842 18,925 17,738
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 19.314 22.850 20.066 17.002 17.682 16.473 12.751 — — —
Value at End of Year 25.148 19.314 22.850 20.066 17.002 17.682 16.473 — — —
Venture No. of Units 19,217 25,000 28,899 40,322 24,185 16,250 7,878 — — —
NY Venture No. of Units 2,337 2,485 2,617 8,791 6,606 706 4,856 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 22.504 26.732 23.568 20.049 20.936 19.582 15.219 13.100 14.706 13.315
Value at End of Year 29.184 22.504 26.732 23.568 20.049 20.936 19.582 15.219 13.100 14.706
Ven 22, 20 No. of Units 133,977 136,770 169,253 219,587 230,703 248,346 308,362 336,654 377,901 463,837
Ven 24 No. of Units 41,255 44,076 46,739 61,261 53,690 46,663 59,134 76,247 75,061 92,831
Ven 22, 20 Contracts with GEM
Value at Start of Year 21.767 25.909 22.888 19.510 20.413 19.131 14.898 12.850 14.453 13.113
Value at End of Year 28.172 21.767 25.909 22.888 19.510 20.413 19.131 14.898 12.850 14.453
No. of Units 4,647 5,229 5,380 5,801 5,839 5,660 6,333 6,838 18,928 21,033

 

U- 30

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 14.603 11.360 9.789 10.999 9.969
Value at End of Year — — — — — — 14.603 11.360 9.789 10.999
No. of Units — — — — — — 8,498 17,574 17,119 20,726
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 17.019 20.206 17.806 15.140 15.801 14.772 11.475 — — —
Value at End of Year 22.082 17.019 20.206 17.806 15.140 15.801 14.772 — — —
No. of Units 4,868 4,918 4,902 5,095 5,535 9,280 4,933 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 21.230 25.308 22.390 19.114 20.029 18.800 14.662 12.665 14.267 12.963
Value at End of Year 27.436 21.230 25.308 22.390 19.114 20.029 18.800 14.662 12.665 14.267
No. of Units 15,093 18,863 24,866 25,093 21,278 55,868 62,048 57,923 62,767 70,067
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 15.140 15.801 14.772 11.475 9.872 11.077 10.024
Value at End of Year — — — — 15.140 15.801 14.772 11.475 9.872 11.077
Venture No. of Units — — — — 14,277 23,271 44,791 60,058 73,243 79,742
NY Venture No. of Units — — — — 30 2,384 4,505 5,139 5,146 5,122
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 19.081 22.620 19.903 16.898 17.609 16.438 12.750 — — —
Value at End of Year 24.794 19.081 22.620 19.903 16.898 17.609 16.438 — — —
Venture No. of Units 22,683 24,448 26,268 27,501 22,903 16,437 6,215 — — —
NY Venture No. of Units 4,757 4,774 4,184 4,170 4,337 2,223 553 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 18.910 14.740 12.727 14.329 13.013
Value at End of Year — — — — — — 18.910 14.740 12.727 14.329
NY Venture No. of Units — — — — — — 4,071 4,541 4,611 4,315
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 21.949 26.112 23.056 19.643 20.542 19.243 14.977 — — —
Value at End of Year 28.422 21.949 26.112 23.056 19.643 20.542 19.243 — — —
NY Venture No. of Units 2,110 2,226 2,264 2,804 3,928 4,171 266 — — —
Franklin Templeton Founding Allocation Trust (merged into Lifestyle Growth PS Series eff 10-21-2016) - Series II Shares (units first credited 05-01-2007)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 14.007 15.072 14.829 12.071 10.525 10.831 9.921
Value at End of Year — — — — 14.007 15.072 14.829 12.071 10.525 10.831
Venture No. of Units — — — — 132,117 10,493,255 22,526,976 24,464,140 26,358,343 28,523,667
NY Venture No. of Units — — — — 9,212 400,015 1,193,513 1,285,862 1,375,457 1,475,970
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — 14.823 15.926 15.646 12.717 — — —
Value at End of Year — — — — 14.823 15.926 15.646 — — —
Venture No. of Units — — —   16,926,277 9,533,362 310,282 — — —
NY Venture No. of Units — — — — 888,582 666,448 5,197 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — 13.707 14.785 14.584 11.901 10.402 10.732 9.854
Value at End of Year — — — — 13.707 14.785 14.584 11.901 10.402 10.732
Ven 22, 20 No. of Units — — — — 494,994 610,635 735,033 889,723 1,101,246 1,355,049
Ven 24 No. of Units — — —   21,312 21,069 37,172 41,363 57,006 73,967
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — 13.471 14.560 14.391 11.767 10.306 10.653 9.802
Value at End of Year — — — — 13.471 14.560 14.391 11.767 10.306 10.653
No. of Units — — — — 16,149 12,040 6,408 6,724 36,031 38,725
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 14.672 14.487 11.833 10.354 10.693 9.828
Value at End of Year — — — — — 14.672 14.487 11.833 10.354 10.693
No. of Units — — — — — 4,662 338,332 405,602 440,636 473,271
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — 13.766 14.842 14.633 11.935 — — —
Value at End of Year — — — — 13.766 14.842 14.633 — — —
No. of Units — — —   318,904 328,217 40,648 — — —

 

U- 31

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

13.297

14.394

14.247

11.667

10.234

10.595

9.763

Value at End of Year

—

—

—

—

13.297

14.394

14.247

11.667

10.234

10.595

No. of Units

—

—

—

—

58,104

74,578

79,735

89,787

92,674

119,925

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

13.766

14.842

14.633

11.935

10.427

10.752

9.868

Value at End of Year

—

—

—

—

13.766

14.842

14.633

11.935

10.427

10.752

Venture No. of Units

—

—

—

—

80,966

3,597,440

8,304,365

9,111,713

9,868,714

10,809,436

NY Venture No. of Units

—

—

—

—

7,833

499,408

905,774

951,454

1,017,083

1,090,208

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

—

14.733

15.860

15.613

12.715

—

—

—

Value at End of Year

—

—

—

—

14.733

15.860

15.613

—

—

—

Venture No. of Units

—

—

—

—

6,054,263

3,731,119

127,520

—

—

—

NY Venture No. of Units

—

—

—

 

645,450

318,726

1,763

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

14.295

11.700

10.258

10.614

9.776

Value at End of Year

—

—

—

—

—

14.449

14.295

11.700

10.258

10.614

NY Venture No. of Units

—

—

—

—

—

13,753

268,570

279,146

297,438

308,454

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

—

13.530

14.616

14.439

11.800

—

—

—

Value at End of Year

—

—

—

—

13.530

14.616

14.439

—

—

—

NY Venture No. of Units

—

—

—

—

209,328

240,794

1,786

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

13.707

14.785

14.584

11.901

10.402

10.732

9.854

Value at End of Year

—

—

—

—

13.707

14.785

14.584

11.901

10.402

10.732

Ven 9 No. of Units

—

—

—

—

1,780

2,623

4,957

4,947

16,871

21,240

No. of Units

—

—

—

—

24,155

22,081

25,224

27,628

28,532

34,758

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

13.707

14.785

14.584

11.901

10.402

10.732

9.854

Value at End of Year

—

—

—

—

13.707

14.785

14.584

11.901

10.402

10.732

No. of Units

—

—

—

—

2,117

2,828

3,375

3,573

3,576

3,758

Fundamental All Cap Core Trust (formerly Optimized All Cap Trust) - Series II Shares (units first credited 05-05-2003)

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

14.246

16.605

12.500

—

—

—

—

—

—

—

Value at End of Year

19.207

14.246

16.605

—

—

—

—

—

—

—

Venture No. of Units

34,440

32,414

37,064

—

—

—

—

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

35.479

41.522

33.043

30.993

30.269

28.019

20.962

17.240

17.892

15.219

Value at End of Year

47.646

35.479

41.522

33.043

30.993

30.269

28.019

20.962

17.240

17.892

Ven 22, 20 No. of Units

46,698

39,080

38,698

47,177

70,264

73,908

79,373

100,487

44,303

44,048

Ven 24 No. of Units

3,499

3,683

3,828

4,041

10,413

7,484

12,874

12,695

12,988

13,141

Ven 22, 20 Contracts with GEM

Value at Start of Year

34.385

40.323

32.152

30.218

29.571

27.427

20.561

15.018

—

15.018

Value at End of Year

46.084

34.385

40.323

32.152

30.218

29.571

27.427

20.561

—

15.018

No. of Units

3,816

5,661

6,480

10,400

11,663

9,702

1,753

631

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

33.586

39.445

31.499

29.649

29.058

26.992

20.265

16.726

17.419

14.869

Value at End of Year

44.945

33.586

39.445

31.499

29.649

29.058

26.992

20.265

16.726

17.419

No. of Units

3,734

4,369

3,701

7,103

3,904

11,006

10,121

6,726

2,776

1,611

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

35.479

41.522

33.043

30.993

30.269

28.019

20.962

17.240

17.892

15.219

Value at End of Year

47.646

35.479

41.522

33.043

30.993

30.269

28.019

20.962

17.240

17.892

Ven 9 No. of Units

3,883

2,969

3,170

2,971

3,081

3,299

3,300

3,431

1,261

1,248

No. of Units

6,983

8,835

8,461

8,868

12,562

10,409

13,713

5,909

2,902

992

Ven 3 Contracts with no Optional Riders

Value at Start of Year

35.479

41.522

33.043

30.993

30.269

28.019

17.240

—

17.892

15.219

Value at End of Year

47.646

35.479

41.522

33.043

30.993

30.269

28.019

—

17.240

17.892

No. of Units

1,056

1,086

1,602

1,151

240

240

240

—

418

883

U- 32

 

 Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Fundamental Holdings Trust (formerly American Fundamental Holdings Trust) (merged into Core Strategy Trust eff 12-06-2013) Series II Shares (units first credited 11-12-2007)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.705

11.428

11.701

10.741

Value at End of Year

—

—

—

—

—

—

—

12.705

11.428

11.701

Venture No. of Units

—

—

—

—

—

—

—

23,350,285

24,362,231

26,034,105

NY Venture No. of Units

—

—

—

—

—

—

—

1,106,795

1,183,644

1,233,207

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

—

12.543

11.310

11.609

10.684

Value at End of Year

—

—

—

—

—

—

—

12.543

11.310

11.609

Ven 22, 20 No. of Units

—

—

—

—

—

—

—

496,559

581,867

656,129

Ven 24 No. of Units

—

—

—

—

—

—

—

26,242

29,850

30,357

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

—

12.415

11.217

11.537

10.639

Value at End of Year

—

—

—

—

—

—

—

12.415

11.217

11.537

No. of Units

—

—

—

—

—

—

—

1,161

1,283

1,292

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.479

11.264

11.573

10.661

Value at End of Year

—

—

—

—

—

—

—

12.479

11.264

11.573

No. of Units

—

—

—

—

—

—

—

6,572

8,310

9,905

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

—

12.319

11.148

11.483

10.605

Value at End of Year

—

—

—

—

—

—

—

12.319

11.148

11.483

No. of Units

—

—

—

—

—

—

—

33,080

44,154

47,146

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.575

11.334

11.628

10.696

Value at End of Year

—

—

—

—

—

—

—

12.575

11.334

11.628

Venture No. of Units

—

—

—

—

—

—

—

8,189,674

8,573,390

9,163,567

NY Venture No. of Units

—

—

—

—

—

—

—

1,590,167

1,652,141

1,702,871

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.351

11.171

11.501

10.616

Value at End of Year

—

—

—

—

—

—

—

12.351

11.171

11.501

NY Venture No. of Units

—

—

—

—

—

—

—

7,021

7,487

11,377

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

12.543

11.310

11.609

10.684

Value at End of Year

—

—

—

—

—

—

—

12.543

11.310

11.609

Ven 9 No. of Units

—

—

—

—

—

—

—

2,329

2,332

2,392

No. of Units

—

—

—

—

—

—

—

44,369

44,628

44,826

Fundamental Large Cap Value Trust (formerly Optimized Value Trust) - Series I Shares (units first credited 12-06-2013)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

21.731

26.564

25.405

23.384

23.980

21.985

21.403

—

—

—

Value at End of Year

32.241

21.731

26.564

25.405

23.384

23.980

21.985

—

—

—

Ven 22, 20 No. of Units

2,777,735

3,112,610

3,476,902

4,053,162

4,650,897

5,347,482

428,722

—

—

—

Ven 24 No. of Units

91,973

108,815

126,691

136,969

161,765

189,316

14,137

—

—

—

Ven 22, 20 Contracts with GEM

Value at Start of Year

23.371

28.626

24.769

22.845

23.474

21.564

20.996

—

—

—

Value at End of Year

31.246

23.371

28.626

24.769

22.845

23.474

21.564

—

—

—

No. of Units

82,346

94,089

94,830

97,716

101,815

103,210

42,324

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

22.862

28.045

24.303

22.448

23.101

21.253

20.695

—

—

—

Value at End of Year

30.520

22.862

28.045

24.303

22.448

23.101

21.253

—

—

—

No. of Units

98,395

114,499

136,901

142,899

163,812

181,505

34,105

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

21.731

26.564

25.405

23.384

23.980

21.985

21.403

—

—

—

Value at End of Year

32.241

21.731

26.564

25.405

23.384

23.980

21.985

—

—

—

Ven 7, 8 No. of Units

1,170,399

1,349,143

1,557,692

1,760,727

2,009,258

2,348,210

95,612

—

—

—

Ven 9 No. of Units

413,476

457,434

498,286

575,037

623,062

693,578

20,619

—

—

—

Ven 3 Contracts with no Optional Riders

Value at Start of Year

24.067

29.419

25.405

23.384

23.980

21.985

21.403

—

—

—

Value at End of Year

32.241

24.067

29.419

25.405

23.384

23.980

21.985

—

—

—

No. of Units

79,370

92,879

108,574

121,449

136,436

160,818

3,438

—

—

—

 

 

U- 33

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Fundamental Large Cap Value Trust (formerly Optimized Value Trust) - Series II Shares (units first credited 05-03-2004)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

15.414

13.303

12.239

12.543

12.500

—

—

—

—

Value at End of Year

—

—

15.414

13.303

12.239

12.543

—

—

—

—

Venture No. of Units

—

—

3,187

13,777

105,434

189,754

—

—

—

—

NY Venture No. of Units

—

—

—

—

2,120

4,676

—

—

—

—

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

12.689

15.486

13.346

12.260

12.546

12.500

—

—

—

—

Value at End of Year

17.034

12.689

15.486

13.346

12.260

12.546

—

—

—

—

Venture No. of Units

610,375

738,450

801,179

939,777

1,048,289

1,118,183

—

—

—

—

NY Venture No. of Units

34,216

41,371

42,875

46,266

57,336

68,413

—

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

23.815

29.181

25.249

23.287

23.255

21.977

16.870

13.772

13.742

12.320

Value at End of Year

31.841

23.815

29.181

25.249

23.287

23.255

21.977

16.870

13.772

13.742

Ven 22, 20 No. of Units

777,754

926,522

1,043,704

1,189,828

1,357,157

1,629,771

386,854

155,860

76,780

58,672

Ven 24 No. of Units

176,917

196,229

227,018

262,602

298,095

354,791

97,623

1,394

1,274

577

Ven 22, 20 Contracts with GEM

Value at Start of Year

23.126

28.394

24.617

22.749

23.420

21.556

16.580

13.560

—

12.181

Value at End of Year

30.859

23.126

28.394

24.617

22.749

23.420

21.556

16.580

—

13.560

No. of Units

73,913

82,097

83,534

89,730

91,950

110,798

13,978

3,068

—

139

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

12.536

12.500

—

—

—

—

Value at End of Year

—

—

—

—

—

12.536

—

—

—

—

No. of Units

—

—

—

—

—

85,837

—

—

—

—

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

12.506

15.317

13.246

12.211

12.539

12.500

—

—

—

—

Value at End of Year

16.730

12.506

15.317

13.246

12.211

12.539

—

—

—

—

No. of Units

9,420

13,766

13,456

14,598

35,693

41,119

—

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

22.622

27.818

24.154

22.355

23.048

21.245

16.365

13.407

13.425

12.078

Value at End of Year

30.142

22.622

27.818

24.154

22.355

23.048

21.245

16.365

13.407

13.425

No. of Units

107,245

132,113

142,215

164,147

181,542

215,803

47,355

5,588

2,061

721

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

15.317

13.246

12.211

12.539

12.500

—

—

—

—

Value at End of Year

—

—

15.317

13.246

12.211

12.539

—

—

—

—

Venture No. of Units

—

—

3,397

34,183

43,437

75,102

—

—

—

—

NY Venture No. of Units

—

—

—

—

1,908

6,908

—

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

12.584

15.389

13.289

12.232

12.542

12.500

—

—

—

—

Value at End of Year

16.860

12.584

15.389

13.289

12.232

12.542

—

—

—

—

Venture No. of Units

272,481

373,944

516,797

554,399

583,620

580,831

—

—

—

—

NY Venture No. of Units

31,245

40,803

49,806

57,501

65,372

68,276

—

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

23.296

28.589

24.774

22.882

23.545

12.500

—

—

—

—

Value at End of Year

31.102

23.296

28.589

24.774

22.882

23.545

—

—

—

—

NY Venture No. of Units

5,228

6,310

7,806

8,851

13,430

16,875

—

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

23.815

29.181

25.249

23.287

23.925

21.985

16.870

13.772

13.742

12.320

Value at End of Year

31.841

23.815

29.181

25.249

23.287

23.925

21.985

16.870

13.772

13.742

Ven 9 No. of Units

153

158

163

169

175

180

—

1,908

1,093

711

No. of Units

—

—

—

—

—

—

95,612

7,799

12,539

4,329

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

25.405

23.384

23.980

21.985

16.870

17.356

—

—

Value at End of Year

—

—

—

25.405

23.384

23.980

21.985

16.870

—

—

No. of Units

—

—

—

—

—

—

—

118

—

—

Fundamental Value Trust (merged into Fundamental Large Cap Value Trust eff 11-07-14) - Series I Shares (units first credited 04-30-2001)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

20.408

15.500

13.865

14.612

13.102

Value at End of Year

—

—

—

—

—

—

20.408

15.500

13.865

14.612

Ven 22, 20 No. of Units

—

—

—

—

—

—

6,481,618

7,576,061

8,998,234

10,742,448

Ven 24 No. of Units

—

—

—

—

—

—

228,348

252,538

285,788

353,600

 

U- 34

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

19.897

15.142

13.572

14.332

12.876

Value at End of Year

—

—

—

—

—

—

19.897

15.142

13.572

14.332

No. of Units

—

—

—

—

—

—

76,426

91,958

97,501

133,550

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

13.032

9.933

8.916

9.430

8.485

Value at End of Year

—

—

—

—

—

—

13.032

9.933

8.916

9.430

No. of Units

—

—

—

—

—

—

200,263

222,438

281,618

343,771

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

20.408

15.500

13.865

14.612

13.102

Value at End of Year

—

—

—

—

—

—

20.408

15.500

13.865

14.612

Ven 7, 8 No. of Units

—

—

—

—

—

—

2,952,399

3,374,403

3,881,408

4,552,249

Ven 9 No. of Units

—

—

—

—

—

—

862,904

958,103

1,071,565

1,269,000

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

20.408

15.500

13.865

14.612

13.102

Value at End of Year

—

—

—

—

—

—

20.408

15.500

13.865

14.612

No. of Units

—

—

—

—

—

—

198,552

228,078

258,989

293,005

Fundamental Value Trust (merged into Fundamental Large Cap Value Trust eff 11-07-14) - Series II Shares (units first credited 05-13-2002)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

17.007

12.915

11.544

12.162

10.899

Value at End of Year

—

—

—

—

—

—

17.007

12.915

11.544

12.162

Venture No. of Units

—

—

—

—

—

—

678,330

1,400,996

1,490,945

1,636,316

NY Venture No. of Units

—

—

—

—

—

—

50,074

73,197

86,130

91,931

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

—

—

—

16.814

12.750

—

—

—

Value at End of Year

—

—

—

—

—

—

16.814

—

—

—

Venture No. of Units

—

—

—

—

—

—

439,589

—

—

—

NY Venture No. of Units

—

—

—

—

—

—

11,965

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

21.966

16.724

14.986

15.827

14.219

Value at End of Year

—

—

—

—

—

—

21.966

16.724

14.986

15.827

Ven 22, 20 No. of Units

—

—

—

—

—

—

1,732,920

2,271,478

2,750,064

3,181,730

Ven 24 No. of Units

—

—

—

—

—

—

379,331

531,015

608,625

723,860

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

21.461

16.371

14.699

15.556

14.003

Value at End of Year

—

—

—

—

—

—

21.461

16.371

14.699

15.556

No. of Units

—

—

—

—

—

—

122,897

139,355

152,782

170,213

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

16.556

12.617

11.317

11.965

10.760

Value at End of Year

—

—

—

—

—

—

16.556

12.617

11.317

11.965

No. of Units

—

—

—

—

—

—

54,501

45,547

46,765

47,947

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

—

—

—

16.748

12.744

—

—

—

Value at End of Year

—

—

—

—

—

—

16.748

—

—

—

No. of Units

—

—

—

—

—

—

2,121

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

21.089

16.112

14.488

15.356

13.844

Value at End of Year

—

—

—

—

—

—

21.089

16.112

14.488

15.356

No. of Units

—

—

—

—

—

—

211,897

293,639

330,543

416,687

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

16.748

12.744

11.414

12.049

10.819

Value at End of Year

—

—

—

—

—

—

16.748

12.744

11.414

12.049

Venture No. of Units

—

—

—

—

—

—

265,240

677,972

714,290

762,183

NY Venture No. of Units

—

—

—

—

—

—

35,763

99,564

106,889

111,484

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

—

—

—

16.778

12.748

—

—

—

Value at End of Year

—

—

—

—

—

—

16.778

—

—

—

Venture No. of Units

—

—

—

—

—

—

271,720

—

—

—

NY Venture No. of Units

—

—

—

—

—

—

37,863

—

—

—

U- 35

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

21.212

16.198

14.558

15.422

13.897

Value at End of Year

—

—

—

—

—

—

21.212

16.198

14.558

15.422

NY Venture No. of Units

—

—

—

—

—

—

17,196

27,084

42,228

45,260

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

—

—

—

—

—

21.586

16.459

—

—

—

Value at End of Year

—

—

—

—

—

—

21.586

—

—

—

NY Venture No. of Units

—

—

—

—

—

—

3,140

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

21.966

16.724

14.986

15.827

14.219

Value at End of Year

—

—

—

—

—

—

21.966

16.724

14.986

15.827

Ven 9 No. of Units

—

—

—

—

—

—

191

197

203

208

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

16.724

14.986

15.827

14.219

Value at End of Year

—

—

—

—

—

—

—

16.724

14.986

15.827

No. of Units

—

—

—

—

—

—

—

232

232

232

Global Diversification Trust (formerly American Global Diversification Trust) (merged into Core Strategy Trust eff 12-06-2013) Series II Shares (units first credited 11-12-2007)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.772

11.182

12.102

10.901

Value at End of Year

—

—

—

—

—

—

—

12.772

11.182

12.102

Venture No. of Units

—

—

—

—

—

—

—

16,208,079

17,606,776

18,758,982

NY Venture No. of Units

—

—

—

—

—

—

—

706,610

751,421

846,080

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

—

12.609

11.067

12.008

10.843

Value at End of Year

—

—

—

—

—

—

—

12.609

11.067

12.008

Ven 22, 20 No. of Units

—

—

—

—

—

—

—

458,748

585,128

704,429

Ven 24 No. of Units

—

—

—

—

—

—

—

48,800

51,467

53,315

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

—

12.480

10.975

11.933

10.797

Value at End of Year

—

—

—

—

—

—

—

12.480

10.975

11.933

No. of Units

—

—

—

—

—

—

—

11,316

108,413

105,380

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.545

11.021

11.970

10.820

Value at End of Year

—

—

—

—

—

—

—

12.545

11.021

11.970

No. of Units

—

—

—

—

—

—

—

6,154

6,186

6,220

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

—

12.384

10.907

11.877

10.762

Value at End of Year

—

—

—

—

—

—

—

12.384

10.907

11.877

No. of Units

—

—

—

—

—

—

—

15,020

15,106

15,194

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.642

11.089

12.027

10.855

Value at End of Year

—

—

—

—

—

—

—

12.642

11.089

12.027

Venture No. of Units

—

—

—

—

—

—

—

7,838,625

8,285,203

8,660,188

NY Venture No. of Units

—

—

—

—

—

—

—

713,206

747,340

787,925

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

—

12.416

10.930

11.895

10.774

Value at End of Year

—

—

—

—

—

—

—

12.416

10.930

11.895

NY Venture No. of Units

—

—

—

—

—

—

—

7,928

8,528

20,182

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

12.609

11.067

12.008

10.843

Value at End of Year

—

—

—

—

—

—

—

12.609

11.067

12.008

Ven 9 No. of Units

—

—

—

—

—

—

—

1,267

1,267

1,268

No. of Units

—

—

—

—

—

—

—

8,664

10,035

14,847

Global Trust (formerly Global Equity Trust) - Series I Shares (units first credited 03-18-1988)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

36.957

43.833

37.390

34.639

37.538

39.084

30.235

25.187

27.171

25.570

Value at End of Year

42.289

36.957

43.833

37.390

34.639

37.538

39.084

30.235

25.187

27.171

Ven 22, 20 No. of Units

522,591

600,117

681,439

777,984

885,544

1,055,394

886,643

1,010,123

1,191,055

1,362,523

Ven 24 No. of Units

8,014

10,751

13,185

14,245

16,761

21,263

13,719

19,101

20,782

25,193

 

U- 36

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 16.670 19.812 16.933 15.719 17.068 17.807 13.803 11.521 12.454 11.743
Value at End of Year 19.037 16.670 19.812 16.933 15.719 17.068 17.807 13.803 11.521 12.454
No. of Units 39,209 41,272 42,934 45,974 47,155 50,788 40,954 40,419 45,373 45,739
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 17.256 20.539 17.581 16.345 17.775 18.572 14.418 12.053 13.048 12.322
Value at End of Year 19.677 17.256 20.539 17.581 16.345 17.775 18.572 14.418 12.053 13.048
No. of Units 9,618 11,489 16,470 17,505 19,379 22,886 13,622 18,184 20,545 30,888
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 36.957 43.833 37.390 34.639 37.538 39.084 30.235 25.187 27.171 25.570
Value at End of Year 42.289 36.957 43.833 37.390 34.639 37.538 39.084 30.235 25.187 27.171
Ven 7, 8 No. of Units 510,460 588,206 660,335 747,989 856,029 979,676 1,074,216 1,207,272 1,404,547 1,628,671
Ven 9 No. of Units 117,414 132,109 140,435 157,640 169,459 186,229 206,389 232,000 266,358 301,393
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 36.957 43.833 37.390 34.639 37.538 39.084 30.235 25.187 27.171 25.570
Value at End of Year 42.289 36.957 43.833 37.390 34.639 37.538 39.084 30.235 25.187 27.171
No. of Units 30,927 37,923 40,220 49,473 53,588 60,737 59,667 69,168 88,589 103,079
Global Trust (formerly Global Equity Trust) - Series II Shares (units first credited 05-13-2002)        
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — 14.488 12.354 11.440 12.392 12.500 — — — —
Value at End of Year — — 14.488 12.354 11.440 12.392 — — — —
Venture No. of Units — — 5,470 5,241 24,682 72,110 — — — —
NY Venture No. of Units — — — — 4,584 11,893 — — — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)            
Value at Start of Year 12.300 14.557 12.394 11.460 12.394 12.500 — — — —
Value at End of Year 14.105 12.300 14.557 12.394 11.460 12.394 — — — —
Venture No. of Units 75,666 97,709 102,907 95,422 104,360 93,891 — — — —
NY Venture No. of Units 5,045 5,313 5,703 9,528 10,864 8,886 — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 20.576 24.450 20.900 19.402 21.069 21.982 17.039 14.222 15.378 14.500
Value at End of Year 23.502 20.576 24.450 20.900 19.402 21.069 21.982 17.039 14.222 15.378
Ven 22, 20 No. of Units 225,348 246,020 304,864 330,640 386,517 466,557 196,800 221,585 260,244 278,901
Ven 24 No. of Units 85,742 98,538 108,552 114,408 127,428 143,813 70,341 84,052 102,301 111,766
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 19.902 23.697 20.297 18.880 20.543 21.476 16.680 13.950 15.115 14.280
Value at End of Year 22.687 19.902 23.697 20.297 18.880 20.543 21.476 16.680 13.950 15.115
No. of Units 13,937 17,506 19,330 23,256 24,651 17,870 10,359 13,272 17,534 19,654
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 12.122 14.397 12.301 11.414 12.388 12.500 — — — —
Value at End of Year 13.853 12.122 14.397 12.301 11.414 12.388 — — — —
No. of Units 7,177 7,270 7,084 11,541 11,707 15,487 — — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 19.411 23.147 19.856 18.497 20.157 21.105 16.415 13.750 14.920 14.117
Value at End of Year 22.094 19.411 23.147 19.856 18.497 20.157 21.105 16.415 13.750 14.920
No. of Units 17,721 19,533 22,056 23,062 31,900 67,331 47,549 25,940 32,156 28,031
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — 14.397 12.301 11.414 10.272 12.500 — — — —
Value at End of Year — — 14.397 12.301 11.414 10.272 — — — —
Venture No. of Units — — 3,408 3,409 23,823 72,151 — — — —
NY Venture No. of Units — — — — 6,949 9,512 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.198 14.465 12.341 11.433 12.391 12.500 — — — —
Value at End of Year 13.961 12.198 14.465 12.341 11.433 12.391 — — — —
Venture No. of Units 53,724 54,134 56,479 79,994 58,871 32,867 — — — —
NY Venture No. of Units 6,129 6,058 7,437 14,263 7,409 6,108 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.068 23.883 20.446 19.009 20.673 12.500 — — — —
Value at End of Year 22.888 20.068 23.883 20.446 19.009 20.673 — — — —
NY Venture No. of Units 2,181 2,461 3,200 3,846 4,859 6,866 — — — —

 

 

U- 37

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 20.576 24.450 20.900 19.402 21.069 21.982 17.039 14.222 15.378 14.500
Value at End of Year 23.502 20.576 24.450 20.900 19.402 21.069 21.982 17.039 14.222 15.378
Ven 9 No. of Units 178 184 191 197 204 210 217 223 230 236
Health Sciences Trust - Series I Shares (units first credited 04-30-2001)              
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 69.747 70.254 55.873 63.359 57.014 43.858 29.440 22.627 20.752 18.189
Value at End of Year 88.502 69.747 70.254 55.873 63.359 57.014 43.858 29.440 22.627 20.752
Ven 22, 20 No. of Units 265,476 309,223 329,356 422,388 507,881 554,451 630,305 658,383 726,671 816,174
Ven 24 No. of Units 9,732 9,462 11,233 12,048 15,115 17,960 21,348 18,926 16,651 19,428
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 67.324 67.950 54.148 61.526 55.476 42.760 28.760 22.149 20.355 17.876
Value at End of Year 85.256 67.324 67.950 54.148 61.526 55.476 42.760 28.760 22.149 20.355
No. of Units 12,566 13,062 15,835 17,010 19,186 19,005 22,942 24,073 31,034 34,132
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 65.561 66.271 52.889 60.186 54.349 41.955 28.260 21.797 20.061 17.645
Value at End of Year 82.900 65.561 66.271 52.889 60.186 54.349 41.955 28.260 21.797 20.061
No. of Units 15,378 19,430 28,007 29,599 32,594 33,425 35,530 40,757 51,271 64,919
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 69.747 70.254 55.873 63.359 57.014 43.858 29.440 22.627 20.752 18.189
Value at End of Year 88.502 69.747 70.254 55.873 63.359 57.014 43.858 29.440 22.627 20.752
Ven 7, 8 No. of Units 65,125 77,168 83,211 92,884 113,910 108,832 103,497 98,207 103,246 95,540
Ven 9 No. of Units 10,472 11,186 12,409 14,314 19,000 21,402 22,033 19,229 14,950 12,599
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 69.747 70.254 55.873 63.359 57.014 43.858 29.440 22.627 20.752 18.189
Value at End of Year 88.502 69.747 70.254 55.873 63.359 57.014 43.858 29.440 22.627 20.752
No. of Units 8,453 7,450 6,829 11,332 20,429 18,949 17,220 16,534 17,440 15,511
Health Sciences Trust - Series II Shares (units first credited 05-13-2002)              
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 48.866 43.941 33.790 22.669 17.419 15.961 13.983
Value at End of Year — — — — 48.866 43.941 33.790 22.669 17.419 15.961
Venture No. of Units — — — — 25,686 39,088 61,671 76,852 74,524 82,392
NY Venture No. of Units — — — — 2,908 7,649 8,050 10,966 8,204 7,738
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 30.137 30.284 24.036 27.209 24.430 18.758 12.565 — — —
Value at End of Year 38.310 30.137 30.284 24.036 27.209 24.430 18.758 — — —
Venture No. of Units 49,975 59,312 71,917 91,143 81,145 57,954 22,178 — — —
NY Venture No. of Units 4,774 5,531 5,641 10,342 10,521 3,133 895 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 74.651 75.317 60.017 68.212 61.490 47.403 31.881 24.559 22.560 19.813
Value at End of Year 94.516 74.651 75.317 60.017 68.212 61.490 47.403 31.881 24.559 22.560
Ven 22, 20 No. of Units 166,999 187,225 210,940 233,256 285,636 342,431 397,394 469,890 492,506 571,072
Ven 24 No. of Units 49,399 62,734 72,609 83,711 99,246 91,974 91,202 135,056 106,812 124,202
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 72.207 72.998 58.285 66.376 59.955 46.312 31.209 24.090 22.173 19.513
Value at End of Year 91.239 72.207 72.998 58.285 66.376 59.955 46.312 31.209 24.090 22.173
No. of Units 11,411 12,110 12,642 16,140 16,717 19,601 20,239 24,002 29,605 35,686
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — 42.628 32.895 22.145 17.077 15.702 13.804
Value at End of Year — — — — — 42.628 32.895 22.145 17.077 15.702
No. of Units — — — — — 333 10,780 13,729 13,486 14,967
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 52.534 52.976 42.193 47.930 43.186 33.276 22.368 — — —
Value at End of Year 66.547 52.534 52.976 42.193 47.930 43.186 33.276 — — —
No. of Units 2,403 2,605 2,530 2,709 4,014 8,463 2,837 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 70.426 71.305 57.018 65.031 58.829 45.510 30.715 23.744 21.888 19.290
Value at End of Year 88.855 70.426 71.305 57.018 65.031 58.829 45.510 30.715 23.744 21.888
No. of Units 18,041 20,575 22,889 26,577 44,715 45,982 57,409 39,564 40,170 49,312

 

U- 38

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 47.930 43.186 33.276 22.368 17.222 15.812 13.880
Value at End of Year — — — — 47.930 43.186 33.276 22.368 17.222 15.812
Venture No. of Units — — — — 8,004 32,492 52,207 77,745 71,097 106,979
NY Venture No. of Units — — — — 377 829 4,256 8,043 8,203 8,152
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 29.773 29.979 23.841 27.042 24.329 18.718 12.564 — — —
Value at End of Year 37.772 29.773 29.979 23.841 27.042 24.329 18.718 — — —
Venture No. of Units 36,343 34,385 55,675 62,902 66,068 63,250 33,900 — — —
NY Venture No. of Units 5,632 5,668 6,277 6,385 5,340 5,487 239 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — 45.776 30.879 23.859 21.982 19.364
Value at End of Year — — — — — — 45.776 30.879 23.859 21.982
NY Venture No. of Units — — — — — — 3,866 4,932 4,855 5,527
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 72.810 73.571 58.713 66.830 60.335 46.583 31.376 — — —
Value at End of Year 92.047 72.810 73.571 58.713 66.830 60.335 46.583 — — —
NY Venture No. of Units 2,179 2,192 2,304 2,517 3,834 4,180 38 — — —
High Income Trust (merged into High Yield Trust eff 05-02-2011) - Series II Shares (units first credited 05-01-2007)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — — — — 11.602
Value at End of Year — — — — — — — — — 12.763
Venture No. of Units — — — — — — — — — 73,206
NY Venture No. of Units — — — — — — — — — 3,949
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — — — 11.525
Value at End of Year — — — — — — — — — 12.647
Ven 22, 20 No. of Units — — — — — — — — — 220,867
Ven 24 No. of Units — — — — — — — — — 36,933
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — — — — 11.464
Value at End of Year — — — — — — — — — 12.554
No. of Units — — — — — — — — — 5,478
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — — — — — 11.494
Value at End of Year — — — — — — — — — 12.600
No. of Units — — — — — — — — — 7,066
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — — — — 11.418
Value at End of Year — — — — — — — — — 12.485
No. of Units — — — — — — — — — 14,472
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — — — — 11.540
Value at End of Year — — — — — — — — — 12.670
Venture No. of Units — — — — — — — — — 7,563
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — — — — — 11.513
Value at End of Year — — — — — — — — — 12.508
NY Venture No. of Units — — — — — — — — — 510
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — — — 11.525
Value at End of Year — — — — — — — — — 12.647
Ven 9 No. of Units — — — — — — — — — 4,990
No. of Units — — — — — — — — — 26,596
Ven 3 Contracts with no Optional Riders                    
Value at Start of Year — — — — — — — — — 11.525
Value at End of Year — — — — — — — — — 12.647
No. of Units — — — — — — — — — 432

 

U- 39

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
High Yield Trust - Series I Shares (units first credited 01-01-1997)              
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — 18.753 12.500 — —
Value at End of Year — — — — — — — 18.753 — —
Venture No. of Units — — — — — — — 68 — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 26.589 27.803 26.227 22.876 25.303 25.631 23.951 20.413 20.516 18.284
Value at End of Year 30.326 26.589 27.803 26.227 22.876 25.303 25.631 23.951 20.413 20.516
Ven 22, 20 No. of Units 403,134 424,527 501,907 588,691 630,586 704,463 888,989 921,681 1,015,304 1,207,185
Ven 24 No. of Units 5,862 4,564 5,509 7,529 8,112 10,470 9,958 13,083 17,110 26,421
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 22.373 23.441 22.157 19.364 21.462 21.784 20.396 17.418 17.541 15.665
Value at End of Year 25.466 22.373 23.441 22.157 19.364 21.462 21.784 20.396 17.418 17.541
No. of Units 7,261 7,387 9,283 9,457 9,040 10,205 11,334 7,868 6,912 15,094
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 21.366 22.421 21.223 18.576 20.620 20.960 19.655 16.810 16.954 15.163
Value at End of Year 24.284 21.366 22.421 21.223 18.576 20.620 20.960 19.655 16.810 16.954
No. of Units 13,958 16,820 19,185 22,681 28,111 34,476 36,897 47,533 65,562 100,657
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 26.589 27.803 26.227 22.876 25.303 25.631 23.951 20.413 20.516 18.284
Value at End of Year 30.326 26.589 27.803 26.227 22.876 25.303 25.631 23.951 20.413 20.516
Ven 7, 8 No. of Units 79,419 87,875 98,318 111,852 120,621 130,910 162,603 161,522 214,289 221,806
Ven 9 No. of Units 18,669 24,273 25,833 28,354 34,073 40,100 40,543 44,182 43,254 44,598
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 26.589 27.803 26.227 22.876 25.303 25.631 23.951 20.413 20.516 18.284
Value at End of Year 30.326 26.589 27.803 26.227 22.876 25.303 25.631 23.951 20.413 20.516
No. of Units 1,945 2,520 2,925 3,130 7,648 8,727 10,370 12,924 9,045 10,026
High Yield Trust - Series II Shares (units first credited 05-13-2002)              
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 17.678 19.554 19.828 18.511 15.753 12.763 14.103
Value at End of Year — — — — 17.678 19.554 19.828 18.511 15.753 12.763
Venture No. of Units — — — — 57,331 259,377 600,100 220,670 248,736 278,396
NY Venture No. of Units — — — — 3,971 11,442 46,457 11,084 10,988 14,668
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 14.177 14.787 13.941 12.122 13.388 13.556 12.636 — — —
Value at End of Year 16.212 14.177 14.787 13.941 12.122 13.388 13.556 — — —
Venture No. of Units 392,091 414,393 481,231 544,017 679,834 436,335 55,131 — — —
NY Venture No. of Units 23,060 26,175 28,905 31,591 38,030 41,417 140 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 26.221 27.458 25.990 22.690 25.160 25.577 23.938 20.423 12.647 18.375
Value at End of Year 29.863 26.221 27.458 25.990 22.690 25.160 25.577 23.938 20.423 12.647
Ven 22, 20 No. of Units 160,665 183,568 206,249 232,213 261,566 321,811 441,354 499,512 514,390 591,425
Ven 24 No. of Units 30,133 42,278 49,788 57,169 48,385 84,981 101,351 100,491 111,852 106,178
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 25.362 26.612 25.240 22.079 24.532 24.989 23.434 20.033 12.554 18.097
Value at End of Year 28.828 25.362 26.612 25.240 22.079 24.532 24.989 23.434 20.033 12.554
No. of Units 12,139 13,187 13,478 13,836 15,200 16,071 17,565 20,684 22,102 22,848
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — 19.303 18.084 15.444 12.600 13.923
Value at End of Year — — — — — — 19.303 18.084 15.444 12.600
No. of Units — — — — — — 17,504 11,428 12,891 9,928
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 20.068 21.004 19.871 17.339 19.217 19.526 18.266 — — —
Value at End of Year 22.867 20.068 21.004 19.871 17.339 19.217 19.526 — — —
No. of Units 8,162 6,947 6,940 12,164 14,108 18,993 1,784 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 24.737 25.995 24.692 21.632 24.071 24.556 23.063 19.746 12.485 17.891
Value at End of Year 28.075 24.737 25.995 24.692 21.632 24.071 24.556 23.063 19.746 12.485
No. of Units 44,725 47,992 56,427 64,358 72,427 58,814 77,320 104,591 115,167 154,905

 

U- 40

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 17.339 19.217 19.526 18.266 15.576 12.670 14.000
Value at End of Year — — — — 17.339 19.217 19.526 18.266 15.576 12.670
Venture No. of Units — — — — 34,652 104,610 313,597 56,784 63,069 62,360
NY Venture No. of Units — — — — 2,260 5,922 22,891 10,707 10,838 5,984
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.006 14.638 13.828 12.048 13.333 13.527 12.634 — — —
Value at End of Year 15.984 14.006 14.638 13.828 12.048 13.333 13.527 — — —
Venture No. of Units 246,208 240,846 291,867 326,169 355,908 266,523 32,912 — — —
NY Venture No. of Units 10,796 12,260 17,716 18,159 26,758 21,702 3,040 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 24.224 24.700 23.186 19.841 12.508 17.959
Value at End of Year — — — — — 24.224 24.700 23.186 19.841 12.508
NY Venture No. of Units — — — — — 96 23,903 3,666 10,074 10,315
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 25.574 26.821 25.426 22.230 24.688 25.135 23.559 — — —
Value at End of Year 29.083 25.574 26.821 25.426 22.230 24.688 25.135 — — —
NY Venture No. of Units 4,098 7,133 8,228 9,564 16,355 19,192 656 — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 26.221 27.458 25.990 22.690 25.160 25.577 23.938 20.423 12.647 18.375
Value at End of Year 29.863 26.221 27.458 25.990 22.690 25.160 25.577 23.938 20.423 12.647
Ven 9 No. of Units 321 332 344 355 367 379 391 402 414 426
No. of Units — — — — — — — — — 26,596
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — — — 12.500
Value at End of Year — — — — — — — — — 12.647
No. of Units — — — — — — — — — 432
International Core Trust (formerly International Stock Trust) - Series I Shares (units first credited 01-01-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 16.394 19.568 16.939 16.691 17.902 19.458 15.786 13.916 15.606 14.443
Value at End of Year 18.159 16.394 19.568 16.939 16.691 17.902 19.458 15.786 13.916 15.606
Ven 22, 20 No. of Units 4,912 9,587 9,742 16,782 597,724 673,520 739,110 818,925 930,721 1,118,433
Ven 24 No. of Units — — — — 19,948 20,548 21,248 25,729 36,019 38,181
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — 13.447 14.452 15.740 12.796 11.302 12.700 11.777
Value at End of Year — — — — 13.447 14.452 15.740 12.796 11.302 12.700
No. of Units — — — — 16,503 17,532 16,652 16,975 17,702 18,883
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — 11.758 12.656 13.804 11.239 9.942 11.189 10.391
Value at End of Year — — — — 11.758 12.656 13.804 11.239 9.942 11.189
No. of Units — — — — 17,182 20,294 20,795 30,755 44,069 56,192
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — 16.691 17.902 19.458 15.786 13.916 15.606 14.443
Value at End of Year — — — — 16.691 17.902 19.458 15.786 13.916 15.606
Ven 7, 8 No. of Units — — — — 84,426 84,838 84,604 103,783 134,317 151,818
Ven 9 No. of Units — — — — 34,240 36,936 34,502 38,017 42,611 48,809
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — 16.691 17.902 19.458 15.786 13.916 15.606 14.443
Value at End of Year — — — — 16.691 17.902 19.458 15.786 13.916 15.606
No. of Units — — — — 7,182 9,428 9,467 11,858 13,681 16,347
International Core Trust (formerly International Stock Trust) - Series II Shares (units first credited 05-13-2002)  
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 12.056 12.922 14.042 11.384 10.030 11.248 10.402
Value at End of Year — — — — 12.056 12.922 14.042 11.384 10.030 11.248
Venture No. of Units — — — — 28,025 20,269 72,945 57,382 71,057 72,934
NY Venture No. of Units — — — — 2,968 2,715 275 367 3,043 2,119
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)      
Value at Start of Year — — — 13.728 14.692 15.942 12.904 — — —
Value at End of Year — — — — 13.728 14.692 15.942 — — —
Venture No. of Units — — — — 28,275 25,464 9,324 — — —
NY Venture No. of Units — — — — 286 272 53 — — —

 

U- 41

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 17.118 20.465 17.756 17.531 18.837 20.522 16.678 14.731 16.561 15.354
Value at End of Year 18.927 17.118 20.465 17.756 17.531 18.837 20.522 16.678 14.731 16.561
Ven 22, 20 No. of Units 13,173 13,249 13,327 13,400 153,765 129,298 155,683 157,525 196,801 239,050
Ven 24 No. of Units — — — — 25,303 23,570 28,794 31,303 37,388 37,267
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — 17.059 18.366 20.049 16.327 14.449 16.277 15.121
Value at End of Year — — — — 17.059 18.366 20.049 16.327 14.449 16.277
No. of Units — — — — 7,408 7,851 8,465 9,883 11,838 15,756
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — 13.670 11.121 9.832 11.065 10.269
Value at End of Year — — — — — — 13.670 11.121 9.832 11.065
No. of Units — — — — — — 130 2,669 2,963 3,418
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year — — — 11.825 12.700 13.828 11.233 — — —
Value at End of Year — — — — 11.825 12.700 13.828 — — —
No. of Units — — — — 1,486 1,421 2,260 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — 16.713 18.021 19.702 16.068 14.242 16.068 14.949
Value at End of Year — — — — 16.713 18.021 19.702 16.068 14.242 16.068
No. of Units — — — — 37,372 8,592 9,392 16,798 26,471 23,415
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 11.825 12.700 13.828 11.233 9.916 11.143 10.326
Value at End of Year — — — — 11.825 12.700 13.828 11.233 9.916 11.143
Venture No. of Units — — — — 713 5,919 37,498 48,588 79,790 76,190
NY Venture No. of Units — — — — 753 754 754 755 755 755
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)    
Value at Start of Year — — — 13.644 14.631 15.908 12.903 — — —
Value at End of Year — — — — 13.644 14.631 15.908 — — —
Venture No. of Units — — — — 30,453 28,438 3,389 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 19.817 16.154 14.311 16.137 15.006
Value at End of Year — — — — — — 19.817 16.154 14.311 16.137
NY Venture No. of Units — — — — — — 3,186 5,466 5,802 2,983
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year — — — 17.175 18.483 20.166 16.414 — — —
Value at End of Year — — — — 17.175 18.483 20.166 — — —
NY Venture No. of Units — — — — 3,418 4,538 1,312 — — —
International Equity Index Trust (formerly International Equity Index Trust B) - Series I Shares (units first credited 11-02-2012)  
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 14.275 16.853 13.424 13.034 14.048 14.936 13.222 12.500 — —
Value at End of Year 17.085 14.275 16.853 13.424 13.034 14.048 14.936 13.222 — —
Ven 22, 20 No. of Units 704,405 525,929 565,247 585,150 649,596 751,698 831,760 926,451 — —
Ven 24 No. of Units 11,625 10,285 10,867 11,280 12,787 13,662 13,292 14,591 — —
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 14.100 16.680 13.313 12.951 13.988 14.901 13.218 12.500 — —
Value at End of Year 16.842 14.100 16.680 13.313 12.951 13.988 14.901 13.218 — —
No. of Units 7,002 6,882 7,061 7,902 12,716 10,091 10,094 7,592 — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 13.970 16.551 13.230 12.890 13.943 14.875 13.215 12.500 — —
Value at End of Year 16.662 13.970 16.551 13.230 12.890 13.943 14.875 13.215 — —
No. of Units 8,218 4,914 5,083 5,512 6,873 7,035 9,786 11,742 — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 14.275 16.853 13.424 13.034 14.048 14.936 13.222 12.500 — —
Value at End of Year 17.085 14.275 16.853 13.424 13.034 14.048 14.936 13.222 — —
Ven 7, 8 No. of Units 91,711 84,419 89,535 89,457 100,677 106,614 109,046 131,032 — —
Ven 9 No. of Units 18,205 22,838 29,284 33,445 35,555 55,934 43,834 47,748 — —
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 14.275 16.853 13.424 13.034 14.048 14.936 13.222 12.500 — —
Value at End of Year 17.085 14.275 16.853 13.424 13.034 14.048 14.936 13.222 — —
No. of Units 2,195 1,130 1,860 2,142 2,496 6,222 6,222 9,762 — —

 

U- 42

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
International Equity Index Trust (formerly International Equity Index Trust B) - Series II Shares (units first credited 11-02-2012)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 13.054 14.065 14.945 13.223 12.500 — —
Value at End of Year — — — — 13.054 14.065 14.945 13.223 — —
Venture No. of Units — — — — 5,499 23,967 37,587 49,218 — —
NY Venture No. of Units — — — — 360 628 4,123 4,002 — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)      
Value at Start of Year 14.097 16.610 13.206 12.796 13.766 14.605 12.904 — — —
Value at End of Year 16.904 14.097 16.610 13.206 12.796 13.766 14.605 — — —
Venture No. of Units 107,101 37,699 43,111 13,862 27,751 20,988 9,856 — — —
NY Venture No. of Units 1,832 505 483 505 1,076 784 220 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 14.098 16.678 13.312 12.951 13.989 14.901 13.218 12.500 — —
Value at End of Year 16.837 14.098 16.678 13.312 12.951 13.989 14.901 13.218 — —
Ven 22, 20 No. of Units 292,737 280,475 277,078 324,456 339,530 530,123 613,918 652,384 — —
Ven 24 No. of Units 120,334 63,754 76,777 71,394 77,212 76,395 94,792 115,644 — —
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 13.925 16.506 13.202 12.869 13.929 14.867 13.214 12.500 — —
Value at End of Year 16.597 13.925 16.506 13.202 12.869 13.929 14.867 13.214 — —
No. of Units 19,727 14,085 47,265 47,444 48,395 51,296 55,637 31,077 — —
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — 14.884 13.216 12.500 — —
Value at End of Year — — — — — — 14.884 13.216 — —
No. of Units — — — — — — 3,363 4,092 — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 14.142 16.721 13.340 12.972 14.004 14.910 13.219 — — —
Value at End of Year 16.897 14.142 16.721 13.340 12.972 14.004 14.910 — — —
No. of Units 3,686 1,134 1,244 1,322 1,478 3,638 201 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 13.797 16.379 13.120 12.809 13.884 14.841 13.210 12.500 — —
Value at End of Year 16.420 13.797 16.379 13.120 12.809 13.884 14.841 13.210 — —
No. of Units 33,790 29,727 30,172 32,182 31,815 33,016 34,610 44,433 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 12.972 14.004 14.910 13.219 12.500 — —
Value at End of Year — — — — 12.972 14.004 14.910 13.219 — —
Venture No. of Units — — — — 2,628 5,417 11,852 14,938 — —
NY Venture No. of Units — — — — 587 1,708 7,732 8,084 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 13.927 16.442 13.099 12.718 13.709 14.574 12.902 — — —
Value at End of Year 16.666 13.927 16.442 13.099 12.718 13.709 14.574 — — —
Venture No. of Units 27,219 3,131 3,152 5,611 7,752 3,721 3,712 — — —
NY Venture No. of Units 9,496 7,213 7,243 7,535 6,774 5,510 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 14.849 13.212 12.500 — —
Value at End of Year — — — — — — 14.849 13.212 — —
NY Venture No. of Units — — — — — — 1,162 1,919 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 13.968 16.549 13.230 12.890 13.944 14.875 13.215 — — —
Value at End of Year 16.657 13.968 16.549 13.230 12.890 13.944 14.875 — — —
NY Venture No. of Units 2,280 1,344 1,337 1,354 1,339 1,891 743 — — —
International Equity Index Trust A (merged into International Equity Index Trust B eff 11-02-2012) - Series I Shares (units first credited 5-03-2004)
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — 10.856 12.836 17.659
Value at End of Year — — — — — — — — 10.856 12.836
Ven 22, 20 No. of Units — — — — — — — — 735,170 895,676
Ven 24 No. of Units — — — — — — — — 12,713 18,366
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — — 16.079 19.051 17.460
Value at End of Year — — — — — — — — 16.079 19.051
No. of Units — — — — — — — — 6,115 7,420

 

U- 43

 

 

Venture Prior

 

  Year  Year Year Year Year Year Year Year Year Year
  Ended  Ended Ended Ended Ended Ended Ended Ended Ended Ended
    12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year   — — — — — — — 15.895 18.861 17.312
Value at End of Year   — — — — — — — — 15.895 18.861
No. of Units   — — — — — — — — 37,002 44,091
Ven 9, 8,7 Contracts with no Optional Riders                    
Value at Start of Year   — — — — — — — 16.328 19.306 17.659
Value at End of Year   — — — — — — — — 16.328 19.306
Ven 7, 8 No. of Units   — — — — — — — — 97,143 112,796
Ven 9 No. of Units   — — — — — — — — 37,844 47,088
Ven 3 Contracts with no Optional Riders                    
Value at Start of Year   — — — — — — — 16.328 19.306 17.659
Value at End of Year   — — — — — — — — 16.328 19.306
No. of Units   — — — — — — — — 14,324 14,644
International Equity Index Trust A (merged into International Equity Index Trust B eff 11-02-2012) - Series II Shares (units first credited 05-03-2004)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year   — — — — — — — 11.604 13.716 12.500
Value at End of Year   — — — — — — — — 11.604 13.716
Venture No. of Units   — — — — — — — — 57,587 60,802
NY Venture No. of Units   — — — — — — — — 4,256 5,208
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year   — — — — — — — 16.075 19.049 17.447
Value at End of Year   — — — — — — — — 16.075 19.049
Ven 22, 20 No. of Units   — — — — — — — — 570,258 671,218
Ven 24 No. of Units   — — — — — — — — 103,562 115,293
Ven 22, 20 Contracts with GEM                      
Value at Start of Year   — — — — — — — 15.830 18.797 17.251
Value at End of Year   — — — — — — — — 15.830 18.797
No. of Units   — — — — — — — — 40,516 33,074
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year   — — — — — — — 11.536 13.684 12.500
Value at End of Year   — — — — — — — — 11.536 13.684
No. of Units   — — — — — — — — 4,721 4,738
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year   — — — — — — — 15.650 18.610 17.105
Value at End of Year   — — — — — — — — 15.650 18.610
No. of Units   — — — — — — — — 39,062 43,293
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year   — — — — — — — 11.565 13.697 12.500
Value at End of Year   — — — — — — — — 11.565 13.697
Venture No. of Units   — — — — — — — — 21,216 54,288
NY Venture No. of Units   — — — — — — — — 8,097 7,906
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year   — — — — — — — 15.710 18.672 12.500
Value at End of Year   — — — — — — — — 15.710 18.672
NY Venture No. of Units   — — — — — — — — 1,409 1,401
International Growth Stock Trust (merged into International Equity Index Trust eff 11-01-2019) - Series II Shares (units first credited 11-02-2012)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year   — — — 14.532 15.082 15.256 12.982 12.500 — —
Value at End of Year   — — — — 14.532 15.082 15.256 12.982 — —
Venture No. of Units   — — — — 13,274 56,795 109,035 152,164 — —
NY Venture No. of Units   — — — — 3,454 1,615 2,033 4,448 — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 14.208 16.807 13.957 14.305 14.824 14.972 12.722 — — —
Value at End of Year   — 14.208 16.807 13.957 14.305 14.824 14.972 — — —
Venture No. of Units   — 78,742 81,220 79,682 79,812 72,573 43,558 — — —
NY Venture No. of Units   — 1,633 2,178 3,671 1,148 28 221 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 14.149 16.805 14.011 14.417 15.000 15.211 12.977 12.500 — —
Value at End of Year   — 14.149 16.805 14.011 14.417 15.000 15.211 12.977 — —
Ven 22, 20 No. of Units   — 298,064 349,456 368,384 362,279 372,748 388,158 424,070 — —
Ven 24 No. of Units   — 67,439 68,716 74,826 76,800 59,600 61,960 74,536 — —

 

 

U- 44

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 13.975 16.632 13.894 14.326 14.936 15.176 12.973 12.500 — —
Value at End of Year — 13.975 16.632 13.894 14.326 14.936 15.176 12.973 — —
No. of Units — 18,723 18,835 19,128 9,965 9,969 9,943 12,609 — —
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)      
Value at Start of Year — — — — — — 12.975 12.500 — —
Value at End of Year — — — — — — 15.194 12.975 — —
No. of Units — — — — — — 11,529 16,848 — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 14.192 16.848 14.040 14.440 15.017 15.220 12.978 — — —
Value at End of Year — 14.192 16.848 14.040 14.440 15.017 15.220 — — —
No. of Units — 2,797 2,981 3,307 11,710 12,465 635 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 13.847 16.504 13.808 14.259 14.887 15.150 12.970 12.500 — —
Value at End of Year — 13.847 16.504 13.808 14.259 14.887 15.150 12.970 — —
No. of Units — 11,163 10,829 9,079 12,397 11,824 12,054 13,643 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 14.440 15.017 15.220 12.978 12.500 — —
Value at End of Year — — — — 14.440 15.017 15.220 12.978 — —
Venture No. of Units — — — — 6,411 33,497 57,087 66,367 — —
NY Venture No. of Units — — — — 1,033 4,800 5,380 5,899 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 14.036 16.638 13.844 14.217 14.763 14.940 12.721 — — —
Value at End of Year — 14.036 16.638 13.844 14.217 14.763 14.940 — — —
Venture No. of Units — 24,792 30,302 36,627 39,128 25,609 11,277 — — —
NY Venture No. of Units — 819 2,072 2,097 11,844 1,632 854 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — 15.159 12.971 12.500 — —
Value at End of Year — — — — — — 15.159 12.971 — —
NY Venture No. of Units — — — — — — 5,904 8,070 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 14.018 16.675 13.923 14.349 14.952 15.185 12.974 — — —
Value at End of Year — 14.018 16.675 13.923 14.349 14.952 15.185 — — —
NY Venture No. of Units — 947 943 1,250 1,271 4,520 1,534 — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 14.149 16.805 14.011 14.417 15.000 15.211 12.977 12.500 — —
Value at End of Year — 14.149 16.805 14.011 14.417 15.000 15.211 12.977 — —
Ven 7, 8 No. of Units — 28,368 33,515 36,717 42,059 46,746 43,907 56,022 — —
Ven 9 No. of Units — 6,107 6,115 7,511 8,131 7,869 16,043 19,906 — —
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 14.149 16.805 14.011 14.417 15.000 15.211 12.977 12.500 — —
Value at End of Year — 14.149 16.805 14.011 14.417 15.000 15.211 12.977 — —
No. of Units — 1,024 1,027 1,029 1,030 4,333 4,544 6,830 — —
International Opportunities Trust (merged into International Growth Stock Trust eff 11-02-2012) - Series II Shares (units first credited 05-01-2005)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — — 9.718 11.721 10.456
Value at End of Year — — — — — — — — 9.718 11.721
Venture No. of Units — — — — — — — — 232,829 245,661
NY Venture No. of Units — — — — — — — — 5,520 11,283
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year — — — — — — — 13.503 16.326 14.601
Value at End of Year — — — — — — — — 13.503 16.326
Ven 22, 20 No. of Units — — — — — — — — 463,137 556,946
Ven 24 No. of Units — — — — — — — — 66,386 85,110
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — — — 13.324 16.142 14.465
Value at End of Year — — — — — — — — 13.324 16.142
No. of Units — — — — — — — — 15,297 18,559

 

 

U- 45

 

Table of Contents

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)            
Value at Start of Year — — — — — — — 9.527 11.531 10.323
Value at End of Year — — — — — — — — 9.527 11.531
No. of Units — — — — — — — — 20,213 19,899
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — — — — 13.192 16.006 14.364
Value at End of Year — — — — — — — — 13.192 16.006
No. of Units — — — — — — — — 18,779 18,720
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — — — 9.609 11.612 10.380
Value at End of Year — — — — — — — — 9.609 11.612
Venture No. of Units — — — — — — — — 92,526 92,857
NY Venture No. of Units — — — — — — — — 7,147 7,115
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — — — 13.236 16.051 14.398
Value at End of Year — — — — — — — — 13.236 16.051
NY Venture No. of Units — — — — — — — — 7,183 8,094
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — 13.503 16.326 14.601
Value at End of Year — — — — — — — — 13.503 16.326
Ven 9 No. of Units — — — — — — — — 20,000 25,086
No. of Units — — — — — — — — 66,140 79,975
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — — 13.503 16.326 14.601
Value at End of Year — — — — — — — — 13.503 16.326
No. of Units — — — — — — — — 3,251 3,334
International Small Company Trust - Series I Shares (units first credited 11-16-2009)            
Ven 24, 22, 20 Contracts with no Optional Benefits                  
Value at Start of Year 18.014 22.864 17.910 17.314 16.479 17.949 14.407 12.259 14.840 12.265
Value at End of Year 21.779 18.014 22.864 17.910 17.314 16.479 17.949 14.407 12.259 14.840
Ven 22, 20 No. of Units 491,155 544,737 625,917 692,134 745,020 885,810 1,030,917 1,195,240 1,376,046 928,085
Ven 24 No. of Units 13,841 17,780 20,380 22,083 24,811 27,193 37,235 35,806 42,035 57,635
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 17.688 22.496 17.656 17.102 16.311 17.801 14.317 12.207 14.807 12.261
Value at End of Year 21.342 17.688 22.496 17.656 17.102 16.311 17.801 14.317 12.207 14.807
No. of Units 3,463 3,467 3,337 3,667 6,186 3,662 2,392 673 735 1,962
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 17.447 22.223 17.468 16.946 16.186 17.691 14.250 12.168 14.781 12.259
Value at End of Year 21.020 17.447 22.223 17.468 16.946 16.186 17.691 14.250 12.168 14.781
No. of Units 5,221 7,022 7,889 8,927 9,365 9,484 10,217 11,913 12,479 17,077
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 18.014 22.864 17.910 17.314 16.479 17.949 14.407 12.259 14.840 12.265
Value at End of Year 21.779 18.014 22.864 17.910 17.314 16.479 17.949 14.407 12.259 14.840
Ven 7, 8 No. of Units 104,889 124,408 141,093 161,124 184,001 200,378 221,495 246,881 290,625 389,816
Ven 9 No. of Units 41,203 43,410 45,249 49,606 57,958 64,023 78,041 79,919 97,396 122,090
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 18.014 22.864 17.910 17.314 16.479 17.949 14.407 12.259 14.840 12.265
Value at End of Year 21.779 18.014 22.864 17.910 17.314 16.479 17.949 14.407 12.259 14.840
No. of Units 22,658 22,488 23,194 25,870 29,131 33,655 33,485 38,950 47,240 48,410
International Small Company Trust - Series II Shares (units first credited 11-16-2009)            
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — — 17.370 16.515 17.982 14.434 12.271 14.852 12.269
Value at End of Year — — — — 17.370 16.515 17.982 14.434 12.271 14.852
Venture 2006 No. of Units — — — — 14,768 25,535 86,794 106,985 115,912 131,970
Venture 2006 No. of Units — — — — 5,359 5,751 9,016 9,914 12,495 18,485
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 16.396 20.774 16.244 15.671 14.878 16.175 12.964 — — —
Value at End of Year 19.862 16.396 20.774 16.244 15.671 14.878 16.175 — — —
Venture No. of Units 40,889 47,301 51,821 50,777 54,899 57,683 22,180 — — —
NY Venture No. of Units 1,156 1,122 1,007 7,128 1,979 1,478 31 — — —

 

U- 46

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

17.684

22.495

17.660

17.105

16.305

17.797

14.322

12.206

14.810

12.265

Value at End of Year

21.336

17.684

22.495

17.660

17.105

16.305

17.797

14.322

12.206

14.810

Ven 22, 20 No. of Units

171,663

193,520

202,571

241,977

274,022

313,183

395,439

404,188

483,442

554,003

Ven 24 No. of Units

68,323

70,397

73,164

81,132

90,645

88,236

94,165

105,596

114,368

131,209

Ven 22, 20 Contracts with GEM

Value at Start of Year

17.363

22.132

17.410

16.897

16.138

17.651

14.232

12.154

14.777

12.261

Value at End of Year

20.908

17.363

22.132

17.410

16.897

16.138

17.651

14.232

12.154

14.777

No. of Units

5,557

5,654

10,349

14,774

14,977

14,605

16,753

14,348

19,452

25,261

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

16.221

17.724

14.277

12.180

14.793

12.263

Value at End of Year

—

—

—

—

—

16.221

17.724

14.277

12.180

14.793

No. of Units

—

—

—

—

—

767

8,298

9,827

12,255

15,045

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

17.765

22.587

17.723

17.158

16.347

17.834

14.344

—

—

—

Value at End of Year

21.444

17.765

22.587

17.723

17.158

16.347

17.834

—

—

—

No. of Units

4,582

4,471

4,262

4,305

7,444

8,006

918

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

17.127

21.864

17.225

16.742

16.014

17.542

14.165

12.115

14.752

12.259

Value at End of Year

20.592

17.127

21.864

17.225

16.742

16.014

17.542

14.165

12.115

14.752

No. of Units

8,286

9,364

12,087

13,515

14,245

18,978

22,447

55,843

68,021

82,101

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

17.158

16.347

17.834

14.344

12.219

14.818

12.266

Value at End of Year

—

—

—

—

17.158

16.347

17.834

14.344

12.219

14.818

Venture 2006 No. of Units

—

—

—

—

7,353

19,669

42,372

55,663

71,499

71,157

Venture 2006 No. of Units

—

—

—

—

563

565

795

1,170

1,196

1,125

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

16.198

20.564

16.112

15.575

14.816

16.140

12.962

—

—

—

Value at End of Year

19.583

16.198

20.564

16.112

15.575

14.816

16.140

—

—

—

Venture No. of Units

24,938

26,904

27,069

31,238

34,259

25,638

7,283

—

—

—

NY Venture No. of Units

1,024

1,024

9,178

7,058

6,437

5,366

403

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

17.578

14.188

12.128

14.760

12.260

Value at End of Year

—

—

—

—

—

—

17.578

14.188

12.128

14.760

Venture 2006 No. of Units

—

—

—

—

—

—

1,943

2,909

3,363

1,998

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

17.443

22.222

17.472

16.949

16.180

17.687

14.255

—

—

—

Value at End of Year

21.014

17.443

22.222

17.472

16.949

16.180

17.687

—

—

—

NY Venture No. of Units

606

591

1,156

1,199

1,719

2,237

889

—

—

—

Investment Quality Bond Trust - Series I Shares (units first credited 11-02-1992)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

36.548

37.372

36.229

35.228

36.018

34.630

35.806

33.753

31.671

29.890

Value at End of Year

39.415

36.548

37.372

36.229

35.228

36.018

34.630

35.806

33.753

31.671

Ven 22, 20 No. of Units

362,407

385,376

440,768

493,211

526,412

563,875

611,993

727,648

862,501

973,795

Ven 24 No. of Units

6,649

10,687

13,713

12,154

14,479

17,027

19,270

24,403

28,645

35,088

Ven 22, 20 Contracts with GEM

Value at Start of Year

21.283

21.807

21.182

20.638

21.143

20.369

21.103

19.933

18.741

17.722

Value at End of Year

22.907

21.283

21.807

21.182

20.638

21.143

20.369

21.103

19.933

18.741

No. of Units

18,805

19,007

9,592

9,840

8,649

9,138

9,376

10,074

14,147

16,196

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

21.809

22.378

21.770

21.243

21.796

21.029

21.819

20.641

19.435

18.406

Value at End of Year

23.437

21.809

22.378

21.770

21.243

21.796

21.029

21.819

20.641

19.435

No. of Units

10,658

26,674

26,865

27,465

31,501

47,520

53,648

62,070

78,035

110,753

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

36.548

37.372

36.229

35.228

36.018

34.630

35.806

33.753

31.671

29.890

Value at End of Year

39.415

36.548

37.372

36.229

35.228

36.018

34.630

35.806

33.753

31.671

Ven 7, 8 No. of Units

129,258

122,215

139,932

160,860

177,103

207,341

229,884

278,886

331,296

381,690

Ven 9 No. of Units

32,620

32,818

36,047

48,152

49,447

54,191

64,351

69,856

78,698

91,340

 

U- 47

 


 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 3 Contracts with no Optional Riders

Value at Start of Year

36.548

37.372

36.229

35.228

36.018

34.630

35.806

33.753

31.671

29.890

Value at End of Year

39.415

36.548

37.372

36.229

35.228

36.018

34.630

35.806

33.753

31.671

No. of Units

29,436

27,174

28,182

31,866

36,729

40,719

43,601

52,077

55,363

59,794

Ven 1 Contracts with no Optional Riders

Value at Start of Year

43.213

44.138

42.743

41.516

42.402

40.724

42.060

39.606

37.123

34.997

Value at End of Year

46.653

43.213

44.138

42.743

41.516

42.402

40.724

42.060

39.606

37.123

No. of Units

353

361

371

380

389

399

400

400

401

402

Investment Quality Bond Trust - Series II Shares (units first credited 05-13-2002)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

17.860

17.358

17.739

17.047

17.602

16.598

15.566

14.675

Value at End of Year

—

—

—

17.860

17.358

17.739

17.047

17.602

16.598

15.566

Venture No. of Units

—

—

—

40

79,852

113,202

383,153

729,431

734,144

801,025

NY Venture No. of Units

—

—

—

—

2,293

5,863

36,134

56,907

63,065

71,289

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

12.873

13.125

12.710

12.334

12.586

12.077

12.451

—

—

—

Value at End of Year

13.911

12.873

13.125

12.710

12.334

12.586

12.077

—

—

—

Venture No. of Units

498,830

517,953

584,760

564,238

556,602

629,664

430,851

—

—

—

NY Venture No. of Units

71,794

77,216

78,845

76,902

73,679

73,966

36,082

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

20.088

20.563

19.992

19.479

19.956

19.225

19.901

18.813

17.688

16.717

Value at End of Year

21.621

20.088

20.563

19.992

19.479

19.956

19.225

19.901

18.813

17.688

Ven 22, 20 No. of Units

412,332

414,479

427,161

427,473

458,811

526,698

580,897

719,069

826,227

989,848

Ven 24 No. of Units

152,527

150,098

166,961

166,254

176,834

192,283

225,750

265,383

274,900

318,617

Ven 22, 20 Contracts with GEM

Value at Start of Year

19.430

19.930

19.415

18.954

19.458

18.783

19.482

18.454

17.385

16.464

Value at End of Year

20.871

19.430

19.930

19.415

18.954

19.458

18.783

19.482

18.454

17.385

No. of Units

8,471

11,204

18,217

17,508

18,018

17,805

21,502

29,010

30,389

32,491

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

16.595

17.196

16.272

15.314

14.488

Value at End of Year

—

—

—

—

—

—

16.595

17.196

16.272

15.314

No. of Units

—

—

—

—

—

—

32,317

44,845

43,361

46,691

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

17.584

17.991

17.483

17.026

17.434

16.787

17.369

—

—

—

Value at End of Year

18.936

17.584

17.991

17.483

17.026

17.434

16.787

—

—

—

No. of Units

14,287

16,525

20,488

22,016

37,028

41,376

16,983

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

18.951

19.468

18.993

18.570

19.092

18.458

19.174

18.189

17.161

16.276

Value at End of Year

20.326

18.951

19.468

18.993

18.570

19.092

18.458

19.174

18.189

17.161

No. of Units

86,173

92,743

101,425

104,776

122,940

119,370

137,038

156,416

176,664

200,685

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

17.026

17.434

16.787

17.369

16.411

15.422

14.568

Value at End of Year

—

—

—

—

17.026

17.434

16.787

17.369

16.411

15.422

Venture No. of Units

—

—

—

—

15,097

22,148

117,455

210,684

182,861

188,181

NY Venture No. of Units

—

—

—

—

—

418

10,129

31,105

33,210

40,704

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

12.718

12.993

12.607

12.258

12.534

12.051

12.449

—

—

—

Value at End of Year

13.716

12.718

12.993

12.607

12.258

12.534

12.051

—

—

—

Venture No. of Units

149,233

119,416

125,011

153,555

159,097

180,066

80,095

—

—

—

NY Venture No. of Units

34,373

32,000

38,304

35,301

36,888

41,395

35,377

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

—

18.566

19.276

18.277

17.235

16.338

Value at End of Year

—

—

—

—

—

—

18.566

19.276

18.277

17.235

NY Venture No. of Units

—

—

—

—

—

—

4,580

10,903

11,021

13,319

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

19.592

20.086

19.558

19.084

19.581

18.893

19.586

—

—

—

Value at End of Year

21.056

19.592

20.086

19.558

19.084

19.581

18.893

—

—

—

NY Venture No. of Units

4,977

4,572

4,658

4,290

4,362

5,637

7,678

—

—

—

 

U- 48

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Large Cap Trust (merged into U.S. Equity Trust eff 04-27-2012) - Series I Shares (units first credited 05-01-2005)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

—

—

12.937

26.085

23.256

Value at End of Year

—

—

—

—

—

—

—

—

12.937

26.085

Ven 22, 20 No. of Units

—

—

—

—

—

—

—

—

3,568,833

11

Ven 24 No. of Units

—

—

—

—

—

—

—

—

61,533

—

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

—

—

12.766

13.244

—

Value at End of Year

—

—

—

—

—

—

—

—

12.766

—

No. of Units

—

—

—

—

—

—

—

—

16,995

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

—

—

12.639

13.132

—

Value at End of Year

—

—

—

—

—

—

—

—

12.639

—

No. of Units

—

—

—

—

—

—

—

—

67,105

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

12.937

26.085

23.256

Value at End of Year

—

—

—

—

—

—

—

—

12.937

26.085

Ven 7, 8 No. of Units

—

 

—

—

 

 

 

—

2,814,693

—

Ven 9 No. of Units

 

 

 

 

—

—

—

—

600,173

—

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

12.937

26.085

23.256

Value at End of Year

—

—

—

—

—

—

—

—

12.937

26.085

No. of Units

—

 

—

—

—

—

—

—

270,852

—

Ven 1 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

42.060

43.502

—

Value at End of Year

—

—

—

—

—

—

—

—

42.060

—

No. of Units

—

—

—

—

—

—

—

—

4,261

—

Large Cap Trust (merged into U.S. Equity Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2005)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

—

—

12.812

13.295

11.874

Value at End of Year

—

—

—

—

—

—

—

—

12.812

13.295

Ven 22, 20 No. of Units

—

—

—

—

—

—

—

—

170,487

4,342,558

Ven 24 No. of Units

—

—

—

—

—

—

—

—

59,425

129,936

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

—

—

12.643

13.145

11.763

Value at End of Year

—

—

—

—

—

—

—

—

12.643

13.145

No. of Units

—

—

—

—

—

—

—

—

3,774

30,762

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

—

—

12.517

13.033

11.681

Value at End of Year

—

—

—

—

—

—

—

—

12.517

13.033

No. of Units

—

—

—

—

—

—

—

—

14,218

92,047

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

12.812

13.295

11.874

Value at End of Year

—

—

—

—

—

—

—

—

12.812

13.295

Ven 9 No. of Units

—

—

—

—

—

—

—

—

375

700,960

No. of Units

—

—

—

—

—

—

—

—

2,813

3,314,385

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

—

—

11.942

Value at End of Year

—

—

—

—

—

—

—

—

—

13.395

No. of Units

—

—

—

—

—

—

—

—

—

300,894

Ven 1 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

—

—

38.742

Value at End of Year

—

—

—

—

—

—

—

—

—

43.502

No. of Units

—

—

—

—

—

—

—

—

—

4,264

Large Cap Value Trust (merged into Equity Income Trust eff 05-02-2011) - Series II Shares (units first credited 05-05-2003)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

—

—

—

—

—

—

—

—

—

17.315

Value at End of Year

—

—

—

—

—

—

—

—

—

18.732

Ven 24 No. of Units

—

—

—

—

—

—

—

—

—

136,477

 

U- 49

 

 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 22, 20 Contracts with GEM

Value at Start of Year

—

—

—

—

—

—

—

—

—

17.086

Value at End of Year

—

—

—

—

—

—

—

—

—

18.447

No. of Units

—

—

—

—

—

—

—

—

—

75,450

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

—

—

—

—

—

—

—

—

—

16.916

Value at End of Year

—

—

—

—

—

—

—

—

—

18.236

No. of Units

—

—

—

—

—

—

—

—

—

91,085

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

—

—

17.425

Value at End of Year

—

—

—

—

—

—

—

—

—

18.887

Ven 9 No. of Units

—

—

—

—

—

—

—

—

—

11,090

No. of Units

—

—

—

—

—

—

—

—

—

80,786

Ven 3 Contracts with no Optional Riders

Value at Start of Year

—

—

—

—

—

—

—

—

—

17.425

Value at End of Year

—

—

—

—

—

—

—

—

—

18.887

No. of Units

—

—

—

—

—

—

—

—

—

8,632

Lifestyle Aggressive Portfolio (formerly Lifestyle Aggressive PS Series) - Series I Shares (units first credited 12-06-2013)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

15.052

16.747

13.945

12.908

13.297

12.792

—

—

—

—

Value at End of Year

18.852

15.052

16.747

13.945

12.908

13.297

12.792

—

—

—

Ven 22, 20 No. of Units

59,635

60,496

49,974

47,284

46,775

46,495

—

—

—

—

Ven 24 No. of Units

9,320

12,572

11,938

18,886

20,875

23,801

—

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

14.787

16.511

13.796

12.815

13.248

12.789

—

—

—

—

Value at End of Year

18.455

14.787

16.511

13.796

12.815

13.248

12.789

—

—

—

No. of Units

16,060

19,817

22,077

22,160

30,723

50,221

—

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

15.052

16.747

13.945

12.908

13.297

12.792

—

—

—

—

Value at End of Year

18.852

15.052

16.747

13.945

12.908

13.297

12.792

—

—

—

Ven 7, 8 No. of Units

5,174

5,920

4,703

3,674

3,675

—

—

—

—

—

Ven 9 No. of Units

33,465

35,584

44,206

44,218

46,302

49,350

—

—

—

—

Ven 3 Contracts with no Optional Riders

Value at Start of Year

12.500

—

—

—

—

—

—

—

—

—

Value at End of Year

18.852

—

—

—

—

—

—

—

—

—

No. of Units

5,772

—

—

—

—

—

—

—

—

—

Lifestyle Aggressive Portfolio (formerly Lifestyle Aggressive PS Series) - Series II Shares (units first credited 12-06-2013)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

12.917

13.300

12.787

12.500

—

—

—

Value at End of Year

—

—

—

—

12.917

13.300

12.787

—

—

—

Venture No. of Units

—

—

—

—

2,281

1,199

1,199

—

—

—

NY Venture No. of Units

—

—

—

—

—

15,747

—

—

—

—

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

15.201

16.883

14.027

12.957

13.321

12.500

—

—

—

—

Value at End of Year

19.081

15.201

16.883

14.027

12.957

13.321

12.500

—

—

—

Venture No. of Units

11,859

7,565

7,629

5,169

1,924

471

—

—

—

—

NY Venture No. of Units

32,013

36,982

44,662

44,414

45,042

34,632

—

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

14.896

16.611

13.856

12.850

13.264

12.785

—

—

—

—

Value at End of Year

18.623

14.896

16.611

13.856

12.850

13.264

12.785

—

—

—

Ven 22, 20 No. of Units

70,019

70,843

20,144

9,735

8,715

14,094

—

—

—

—

Ven 24 No. of Units

337,451

468,784

511,986

563,068

595,994

699,609

—

—

—

—

Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

—

13.250

12.784

—

—

—

—

Value at End of Year

—

—

—

—

—

13.250

12.784

—

—

—

No. of Units

—

—

—

—

—

990

—

—

—

—

Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

14.934

16.644

13.877

12.864

13.271

12.786

—

—

—

—

Value at End of Year

18.680

14.934

16.644

13.877

12.864

13.271

12.786

—

—

—

No. of Units

3,805

3,770

3,698

3,580

3,642

2,514

—

—

—

—

 

U- 50

 


 

Venture Prior

 

 

 

 

 

 

 

 

 

 

 

 

Year

Year

Year

Year

Year

Year

Year

Year

Year

Year

 

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

 

12/31/19

12/31/18

12/31/17

12/31/16

12/31/15

12/31/14

12/31/13

12/31/12

12/31/11

12/31/10

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

14.634

16.376

13.708

12.758

13.215

12.782

—

—

—

—

Value at End of Year

18.231

14.634

16.376

13.708

12.758

13.215

12.782

—

—

—

No. of Units

16,686

22,019

23,889

37,931

39,777

40,068

—

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)

Value at Start of Year

—

—

—

12.864

13.271

12.786

—

—

—

—

Value at End of Year

—

—

—

—

12.864

13.271

12.786

—

—

—

Venture No. of Units

—

—

—

—

3,066

3,068

—

—

—

—

NY Venture No. of Units

—

—

—

—

351

351

—

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)

Value at Start of Year

15.048

13.941

13.941

12.904

13.293

12.500

—

—

—

—

Value at End of Year

—

15.048

13.941

13.941

12.904

13.293

12.500

—

—

—

Venture No. of Units

—

1,852

—

3,051

—

—

—

—

—

—

NY Venture No. of Units

—

—

—

—

—

1,433

—

—

—

—

Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)

Value at Start of Year

14.783

16.510

13.792

12.811

13.243

12.784

—

—

—

—

Value at End of Year

18.454

14.783

16.510

13.792

12.811

13.243

12.784

—

—

—

NY Venture No. of Units

5,702

5,702

5,702

5,702

5,702

5,848

—

—

—

—

Lifestyle Balanced Portfolio (formerly Lifestyle Balanced PS Series) - Series I Shares (units first credited 12-06-2013)

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

14.235

15.096

13.630

13.027

13.204

12.637

12.500

—

—

—

Value at End of Year

16.527

14.235

15.096

13.630

13.027

13.204

12.637

—

—

—

Ven 22, 20 No. of Units

351,433

321,276

297,218

290,569

224,132

189,605

5,343

—

—

—

Ven 24 No. of Units

148,640

157,231

180,888

203,318

214,234

234,493

—

—

—

—

Ven 22, 20 Contracts with GEM

Value at Start of Year

14.092

14.974

13.546

12.973

12.500

—

—

—

—

—

Value at End of Year

16.327

14.092

14.974

13.546

12.973

—

—

—

—

—

No. of Units

4,523

5,359

5,818

12,428

12,752

—

—

—

—

—

Ven 24 Contracts with Payment Enhancement

Value at Start of Year

13.985

14.883

13.484

12.933

13.155

12.634

—

—

—

—

Value at End of Year

16.179

13.985

14.883

13.484

12.933

13.155

12.634

—

—

—

No. of Units

80,936

101,335

129,098

362,188

392,663

440,442

—

—

—

—

Ven 9, 8,7 Contracts with no Optional Riders

Value at Start of Year

14.235

15.096

13.630

13.027

13.204

12.637

—

—

—

—

Value at End of Year

16.527

14.235

15.096

13.630

13.027

13.204

12.637

—

—

—

Ven 7, 8 No. of Units

84,884

84,790

65,485

33,447

15,366

5,154

—

—

—

—

Ven 9 No. of Units

118,465

135,749

143,900

155,940

202,088

238,006

—

—

—

—

Ven 3 Contracts with no Optional Riders

Value at Start of Year

14.235

15.096

12.500

—

—

—

—

—

—

—

Value at End of Year

16.527

14.235

15.096

—

—

—

—

—

—

—

No. of Units

17,959

17,892

17,892

—

—

—

—

—

—

—

Lifestyle Balanced Portfolio (formerly Lifestyle Balanced PS Series) - Series II Shares (units first credited 12-06-2013)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)

Value at Start of Year

—

17.772

16.029

15.312

15.524

14.851

14.685

—

—

—

Value at End of Year

—

—

17.772

16.029

15.312

15.524

14.851

—

—

—

Venture No. of Units

—

—

181,342

582,068

2,118,399

3,367,838

366,967

—

—

—

NY Venture No. of Units

—

—

166,544

1,119,734

2,685,145

4,298,615

—

—

—

—

Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)

Value at Start of Year

14.371

15.220

13.707

13.075

13.236

12.643

12.500

—

—

—

Value at End of Year

16.727

14.371

15.220

13.707

13.075

13.236

12.643

—

—

—

Venture No. of Units

5,569,745

5,841,353

6,087,702

5,861,149

3,581,875

1,451,428

146,671

—

—

—

NY Venture No. of Units

4,015,383

4,770,581

5,388,943

4,915,550

3,567,888

2,278,160

—

—

—

—

Ven 24, 22, 20 Contracts with no Optional Benefits

Value at Start of Year

14.082

14.975

13.539

12.967

13.179

12.639

12.500

—

—

—

Value at End of Year

16.325

14.082

14.975

13.539

12.967

13.179

12.639

—

—

—

Ven 22, 20 No. of Units

1,051,817

1,227,586

1,426,992

1,501,243

1,305,753

1,057,298

87,756

—

—

—

Ven 24 No. of Units

2,150,107

2,493,009

2,935,283

3,273,939

3,787,975

4,464,510

232

—

—

—

Ven 22, 20 Contracts with GEM

Value at Start of Year

13.940

14.854

13.457

12.913

12.500

—

—

—

—

—

Value at End of Year

16.128

13.940

14.854

13.457

12.913

—

—

—

—

—

No. of Units

26,173

21,964

19,642

20,126

8,683

—

—

—

—

—

U- 51

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.118 15.005 13.560 12.980 13.186 12.640 — — — —
Value at End of Year 16.375 14.118 15.005 13.560 12.980 13.186 12.640 — — —
No. of Units 299,386 352,476 409,249 484,437 697,586 932,622 — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 13.835 14.763 13.395 12.873 13.130 12.636 — — — —
Value at End of Year 15.982 13.835 14.763 13.395 12.873 13.130 12.636 — — —
No. of Units 1,072,741 1,197,803 1,373,174 1,620,355 1,791,640 2,078,944 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 15.005 13.560 12.980 13.186 12.640 12.500 — — —
Value at End of Year — — 15.005 13.560 12.980 13.186 12.640 — — —
Venture No. of Units — — 14,583 81,468 859,803 1,257,077 280,053 — — —
NY Venture No. of Units — — 62,803 375,324 1,730,779 2,938,695 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.226 15.097 13.623 13.021 13.207 12.641 12.500 — — —
Value at End of Year 16.525 14.226 15.097 13.623 13.021 13.207 12.641 — — —
Venture No. of Units 1,803,795 1,748,753 2,132,561 2,077,815 1,133,355 404,367 34,576 — — —
NY Venture No. of Units 2,005,466 2,337,848 2,647,730 2,889,165 2,023,144 1,204,351 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 15.227 14.647 — — — —
Value at End of Year — — — — — 15.227 14.647 — — —
NY Venture No. of Units — — — — — 2,556 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.976 14.884 13.477 12.927 13.158 12.638 — — — —
Value at End of Year 16.178 13.976 14.884 13.477 12.927 13.158 12.638 — — —
NY Venture No. of Units 306,381 376,342 471,358 509,137 615,783 730,104 — — — —
Lifestyle Conservative Portfolio (formerly Lifestyle Conservative PS Series) - Series I Shares (units first credited 12-06-2013)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 13.520 13.988 13.262 12.884 13.043 12.532 — — — —
Value at End of Year 14.993 13.520 13.988 13.262 12.884 13.043 12.532 — — —
Ven 22, 20 No. of Units 180,614 173,668 112,825 103,932 86,600 89,439 — — — —
Ven 24 No. of Units 41,952 46,232 49,841 57,776 44,536 44,940 — — — —
Ven 22, 20 Contracts with GEM
Value at Start of Year 13.384 13.874 13.181 12.830 13.015 12.530 — — — —
Value at End of Year 14.812 13.384 13.874 13.181 12.830 13.015 12.530 — — —
No. of Units 1,831 2,148 2,351 6,945 7,114 198 — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 13.282 13.790 13.120 12.791 12.994 12.529 — — — —
Value at End of Year 14.678 13.282 13.790 13.120 12.791 12.994 12.529 — — —
No. of Units 57,124 63,446 107,626 112,077 136,702 142,010 — — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 13.520 13.988 13.262 12.884 13.043 12.532 — — — —
Value at End of Year 14.993 13.520 13.988 13.262 12.884 13.043 12.532 — — —
Ven 7, 8 No. of Units 35,376 13,540 15,894 8,872 — 2,593 — — — —
Ven 9 No. of Units 45,564 52,962 55,213 66,856 73,700 79,097 — — — —
Ven 3 Contracts with no Optional Riders
Value at Start of Year 12.500 — — — — — — — — —
Value at End of Year 14.993 — — — — — — — — —
No. of Units 12,227 — — — — — — — — —
Lifestyle Conservative Portfolio (formerly Lifestyle Conservative PS Series) - Series II Shares (units first credited 12-06-2013)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 14.825 15.329 14.527 14.106 14.274 13.698 13.678 — — —
Value at End of Year 16.447 14.825 15.329 14.527 14.106 14.274 13.698 — — —
Venture No. of Units — — 49,128 83,113 344,453 426,612 75,354 — — —
NY Venture No. of Units 889 921 67,746 327,286 703,625 1,224,102 — — — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.652 14.095 13.338 12.932 13.066 12.500 — — — —
Value at End of Year 15.168 13.652 14.095 13.338 12.932 13.066 12.500 — — —
Venture No. of Units 1,239,198 1,088,004 776,333 750,001 564,404 213,543 — — — —
NY Venture No. of Units 832,383 926,799 926,102 853,290 708,352 320,759 — — — —

 

U- 52

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 13.378 13.868 13.175 12.825 13.010 12.516 12.500 — — —
Value at End of Year 14.804 13.378 13.868 13.175 12.825 13.010 12.516 — — —
Ven 22, 20 No. of Units 245,793 281,217 224,775 229,574 187,398 216,601 3,843 — — —
Ven 24 No. of Units 331,231 428,025 535,078 565,366 584,887 613,717 — — — —
Ven 22, 20 Contracts with GEM
Value at Start of Year 13.243 13.756 13.094 12.500 — — — — — —
Value at End of Year — 13.243 13.756 13.094 — — — — — —
No. of Units — 1,219 9,228 14,371 — — — — — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.412 13.896 13.195 12.839 13.017 12.517 — — — —
Value at End of Year 14.849 13.412 13.896 13.195 12.839 13.017 12.517 — — —
No. of Units 58,860 89,948 94,853 99,969 151,860 195,490 — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 13.142 13.672 13.034 12.733 12.962 12.513 — — — —
Value at End of Year 14.493 13.142 13.672 13.034 12.733 12.962 12.513 — — —
No. of Units 259,813 285,304 354,907 425,698 464,269 591,188 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 13.896 13.195 12.839 13.017 12.517 — — — —
Value at End of Year — — 13.896 13.195 12.839 13.017 12.517 — — —
Venture No. of Units — — 6,981 30,553 94,607 233,480 — — — —
NY Venture No. of Units — — 18,989 142,921 493,188 747,888 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.514 13.981 13.256 12.879 13.038 12.518 12.500 — — —
Value at End of Year 14.985 13.514 13.981 13.256 12.879 13.038 12.518 — — —
Venture No. of Units 392,779 371,508 285,250 300,707 217,707 69,180 4,239 — — —
NY Venture No. of Units 387,456 424,732 514,700 527,144 257,428 131,832 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 13.510 — — — —
Value at End of Year — — — — — 14.001 13.510 — — —
NY Venture No. of Units — — — — — 2,749 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.276 13.784 13.114 12.786 12.990 12.515 — — — —
Value at End of Year 14.670 13.276 13.784 13.114 12.786 12.990 12.515 — — —
NY Venture No. of Units 178,302 188,800 153,829 159,599 162,765 198,024 — — — —
Lifestyle Growth Portfolio (formerly Lifestyle Growth PS Series) - Series I Shares (units first credited 12-06-2013)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 14.698 15.877 13.864 13.111 13.311 12.715 12.500 — — —
Value at End of Year 17.603 14.698 15.877 13.864 13.111 13.311 12.715 — — —
Ven 22, 20 No. of Units 833,980 948,044 987,392 700,105 554,376 583,324 104,997 — — —
Ven 24 No. of Units 107,346 114,694 102,215 115,764 124,510 132,027 — — — —
Ven 22, 20 Contracts with GEM
Value at Start of Year 14.549 15.749 13.779 13.057 12.500 — — — — —
Value at End of Year 17.391 14.549 15.749 13.779 13.057 — — — — —
No. of Units 10,756 10,833 10,909 1,899 1,908 — — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 14.439 15.653 13.716 13.016 13.262 12.712 — — — —
Value at End of Year 17.233 14.439 15.653 13.716 13.016 13.262 12.712 — — —
No. of Units 138,734 169,424 179,721 199,782 238,908 238,307 — — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 14.698 15.877 13.864 13.111 13.311 12.715 — — — —
Value at End of Year 17.603 14.698 15.877 13.864 13.111 13.311 12.715 — — —
Ven 7, 8 No. of Units 147,262 149,883 144,557 94,531 25,393 23,181 — — — —
Ven 9 No. of Units 153,455 144,619 178,298 207,689 212,726 220,982 — — — —
Ven 3 Contracts with no Optional Riders
Value at Start of Year 14.698 15.877 13.864 13.111 13.311 12.715 — — — —
Value at End of Year 17.603 14.698 15.877 13.864 13.111 13.311 12.715 — — —
No. of Units 9,193 9,351 9,365 4,595 2,009 2,175 — — — —

 

U- 53

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Lifestyle Growth Portfolio (formerly Lifestyle Growth PS Series) - Series II Shares (units first credited 12-06-2013)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 18.121 19.567 17.077 16.142 16.370 15.639 15.369 — — —
Value at End of Year 21.712 18.121 19.567 17.077 16.142 16.370 15.639 — — —
Venture No. of Units 2,997 2,702 2,699,001 2,418,271 8,790,889 13,066,187 1,157,962 — — —
NY Venture No. of Units — — 345,911 962,638 2,080,261 3,864,950 79,987 — — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.850 16.011 13.953 13.169 13.335 12.720 12.500 — — —
Value at End of Year 17.820 14.850 16.011 13.953 13.169 13.335 12.720 — — —
Venture No. of Units 83,098,133 94,261,128 104,764,288 41,103,534 15,612,225 7,383,132 156,018 — — —
NY Venture No. of Units 7,563,678 8,591,296 9,973,815 6,306,371 5,334,575 3,487,787 — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 14.552 15.753 13.783 13.061 13.278 12.717 12.500 — — —
Value at End of Year 17.392 14.552 15.753 13.783 13.061 13.278 12.717 — — —
Ven 22, 20 No. of Units 6,462,543 7,570,152 8,467,901 5,794,053 5,295,937 4,529,342 413,194 — — —
Ven 24 No. of Units 3,192,571 3,491,224 3,853,815 4,301,115 4,980,376 5,715,212 — — — —
Ven 22, 20 Contracts with GEM
Value at Start of Year 14.405 15.625 13.699 13.007 13.250 12.713 — — — —
Value at End of Year 17.183 14.405 15.625 13.699 13.007 13.250 12.713 — — —
No. of Units 89,096 102,108 118,486 104,225 78,561 62,626 — — — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.589 15.785 13.804 13.074 13.285 12.717 — — — —
Value at End of Year 17.445 14.589 15.785 13.804 13.074 13.285 12.717 — — —
No. of Units 684,607 872,828 1,105,282 1,206,702 1,017,422 1,186,599 — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 14.296 15.530 13.636 12.966 13.228 12.714 — — — —
Value at End of Year 17.027 14.296 15.530 13.636 12.966 13.228 12.714 — — —
No. of Units 1,316,568 1,486,766 1,526,317 1,601,431 1,824,083 2,199,847 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 15.785 13.804 13.074 13.285 12.717 12.500 — — —
Value at End of Year — — 15.785 13.804 13.074 13.285 12.717 — — —
Venture No. of Units — — 1,266,714 1,179,760 4,731,790 6,009,740 370,493 — — —
NY Venture No. of Units — — 319,909 742,724 2,596,940 4,207,947 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.701 15.881 13.868 13.115 13.306 12.719 12.500 — — —
Value at End of Year 17.605 14.701 15.881 13.868 13.115 13.306 12.719 — — —
Venture No. of Units 30,823,653 35,731,278 39,807,305 14,482,306 4,074,712 1,405,589 32,673 — — —
NY Venture No. of Units 5,700,188 6,737,870 7,364,319 4,449,470 2,717,584 1,594,177 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 16.056 15.424 15.053 — — —
Value at End of Year — — — — — 16.056 15.424 — — —
NY Venture No. of Units — — — — — 8,574 11,066 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.442 15.657 13.720 13.020 13.257 12.716 — — — —
Value at End of Year 17.235 14.442 15.657 13.720 13.020 13.257 12.716 — — —
NY Venture No. of Units 730,323 945,301 1,123,078 1,099,155 1,183,013 1,381,739 — — — —
Lifestyle Moderate Portfolio (formerly Lifestyle Moderate PS Series) - Series I Shares (units first credited 12-06-2013)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 13.984 14.709 13.507 12.984 13.154 12.596 12.500 — — —
Value at End of Year 15.992 13.984 14.709 13.507 12.984 13.154 12.596 — — —
Ven 22, 20 No. of Units 161,724 127,665 146,489 143,663 147,045 145,394 7,228 — — —
Ven 24 No. of Units 28,763 38,046 43,700 46,471 48,592 53,051 — — — —
Ven 22, 20 Contracts with GEM
Value at Start of Year 13.843 14.590 13.425 12.931 12.500 — — — — —
Value at End of Year 15.799 13.843 14.590 13.425 12.931 — — — — —
No. of Units 232 235 163 3,842 3,701 — — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 13.738 14.501 13.363 12.890 13.105 12.593 — — — —
Value at End of Year 15.656 13.738 14.501 13.363 12.890 13.105 12.593 — — —
No. of Units 54,096 62,781 69,273 73,625 89,153 97,457 — — — —

 

U- 54

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 13.984 14.709 13.507 12.984 13.154 12.596 — — — —
Value at End of Year 15.992 13.984 14.709 13.507 12.984 13.154 12.596 — — —
Ven 7, 8 No. of Units 10,250 4,226 4,565 1,998 1,949 2,097 — — — —
Ven 9 No. of Units 50,957 52,114 48,596 51,196 84,277 106,640 — — — —
Ven 3 Contracts with no Optional Riders
Value at Start of Year 13.984 14.709 13.507 12.984 13.154 12.596 — — — —
Value at End of Year 15.992 13.984 14.709 13.507 12.984 13.154 12.596 — — —
No. of Units 1,144 1,208 1,235 1,237 1,240 1,242 — — — —
Lifestyle Moderate Portfolio (formerly Lifestyle Moderate PS Series) - Series II Shares (units first credited 12-06-2013)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — 17.057 15.646 15.033 15.223 14.581 14.454 — — —
Value at End of Year — — 17.057 15.646 15.033 15.223 14.581 — — —
Venture No. of Units — — 26,558 133,080 769,411 1,085,810 59,258 — — —
NY Venture No. of Units — — 110,038 387,595 949,357 1,599,418 — — — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.138 14.841 13.593 13.041 13.186 12.500 — — — —
Value at End of Year 16.197 14.138 14.841 13.593 13.041 13.186 12.500 — — —
Venture No. of Units 1,484,615 1,551,833 1,437,979 1,331,587 709,506 174,908 — — — —
NY Venture No. of Units 1,177,520 1,315,294 1,536,660 1,465,048 1,022,710 583,050 — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 13.854 14.602 13.427 12.933 13.130 12.607 12.500 — — —
Value at End of Year 15.809 13.854 14.602 13.427 12.933 13.130 12.607 — — —
Ven 22, 20 No. of Units 280,040 202,218 249,995 285,314 313,475 258,352 23,310 — — —
Ven 24 No. of Units 609,229 682,476 741,312 873,644 1,050,407 1,205,582 — — — —
Ven 22, 20 Contracts with GEM
Value at Start of Year 13.714 14.483 13.345 12.880 12.500 — — — — —
Value at End of Year 15.618 13.714 14.483 13.345 12.880 — — — — —
No. of Units 6,372 6,519 7,773 7,929 1,395 — — — — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.889 14.631 13.448 12.947 13.137 12.608 — — — —
Value at End of Year 15.857 13.889 14.631 13.448 12.947 13.137 12.608 — — —
No. of Units 158,138 177,573 185,239 218,315 283,700 368,631 — — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 13.611 14.395 13.284 12.840 13.081 12.604 — — — —
Value at End of Year 15.476 13.611 14.395 13.284 12.840 13.081 12.604 — — —
No. of Units 389,287 502,734 562,337 715,378 792,202 907,452 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 14.631 13.448 12.947 13.137 12.608 12.500 — — —
Value at End of Year — — 14.631 13.448 12.947 13.137 12.608 — — —
Venture No. of Units — — 23,435 116,499 418,052 691,257 22,675 — — —
NY Venture No. of Units — — 49,257 261,448 754,924 1,309,870 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.996 14.721 13.510 12.987 13.158 12.500 — — — —
Value at End of Year 16.002 13.996 14.721 13.510 12.987 13.158 12.500 — — —
Venture No. of Units 702,803 689,442 756,732 805,820 418,973 159,925 — — — —
NY Venture No. of Units 871,647 986,431 1,079,395 1,057,940 740,971 396,831 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 14.932 14.381 — — — —
Value at End of Year — — — — — 14.932 14.381 — — —
NY Venture No. of Units — — — — — 4,940 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.749 14.513 13.365 12.893 13.109 12.606 — — — —
Value at End of Year 15.666 13.749 14.513 13.365 12.893 13.109 12.606 — — —
NY Venture No. of Units 105,183 104,471 132,356 170,971 206,855 256,120 — — — —
Managed Volatility Aggressive Portfolio (formerly Lifestyle Aggressive MVP) - Series I Shares (units first credited 01-07-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 23.909 26.490 21.871 21.754 23.431 23.434 18.754 16.310 17.690 15.406
Value at End of Year 28.477 23.909 26.490 21.871 21.754 23.431 23.434 18.754 16.310 17.690
Ven 22, 20 No. of Units 1,036,695 1,186,899 1,457,814 1,704,020 1,954,267 2,316,159 2,505,317 2,353,081 3,193,612 3,592,435
Ven 24 No. of Units 4,738 4,823 4,736 3,609 3,448 5,960 17,263 18,340 21,176 24,877

 

U- 55

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM
Value at Start of Year 18.823 20.897 17.288 17.230 18.595 18.635 14.943 13.022 14.152 12.349
Value at End of Year 22.375 18.823 20.897 17.288 17.230 18.595 18.635 14.943 13.022 14.152
No. of Units 1,626 2,602 2,614 2,720 4,260 4,319 7,056 7,977 11,758 11,766
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 17.830 19.824 16.424 16.394 17.719 17.784 14.282 12.465 13.567 11.856
Value at End of Year 21.162 17.830 19.824 16.424 16.394 17.719 17.784 14.282 12.465 13.567
No. of Units 4,343 4,353 5,109 5,141 5,179 5,221 46,097 55,180 70,826 74,535
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 23.909 26.490 21.871 21.754 23.431 23.434 18.754 16.310 17.690 15.406
Value at End of Year 28.477 23.909 26.490 21.871 21.754 23.431 23.434 18.754 16.310 17.690
Ven 7, 8 No. of Units 34,401 36,827 40,342 65,356 69,125 77,811 83,108 91,610 128,345 158,027
Ven 9 No. of Units 12,127 12,241 13,053 13,617 14,600 18,927 47,929 50,716 51,807 55,172
Ven 3 Contracts with no Optional Riders
Value at Start of Year 23.909 26.490 21.871 21.754 23.431 23.434 18.754 16.310 17.690 15.406
Value at End of Year 28.477 23.909 26.490 21.871 21.754 23.431 23.434 18.754 16.310 17.690
No. of Units 8,290 8,294 8,688 9,149 9,157 23,006 30,878 33,427 33,685 39,146
Managed Volatility Aggressive Portfolio (formerly Lifestyle Aggressive MVP) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — 15.265 15.189 16.355 16.333 13.067 11.354 12.312 10.725
Value at End of Year — — — 15.265 15.189 16.355 16.333 13.067 11.354 12.312
Venture No. of Units — — — 37 85,116 241,447 595,553 821,043 924,911 975,575
NY Venture No. of Units — — — — 773 12,206 63,733 79,083 79,890 93,896
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 16.479 18.214 15.010 14.913 16.034 15.988 12.772 — — —
Value at End of Year 19.681 16.479 18.214 15.010 14.913 16.034 15.988 — — —
Venture No. of Units 238,674 310,894 362,216 460,707 444,202 390,471 134,157 — — —
NY Venture No. of Units 2,525 2,525 2,525 8,862 8,865 22,365 9,934 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 23.433 26.005 21.515 21.462 23.167 23.194 18.603 16.204 17.615 15.383
Value at End of Year 27.874 23.433 26.005 21.515 21.462 23.167 23.194 18.603 16.204 17.615
Ven 22, 20 No. of Units 773,654 835,326 970,442 1,139,850 1,275,951 1,514,081 1,903,782 2,340,196 2,604,540 2,943,610
Ven 24 No. of Units 107,007 121,108 165,550 188,230 189,526 262,453 803,123 972,670 1,076,846 1,185,123
Ven 22, 20 Contracts with GEM
Value at Start of Year 22.665 25.204 20.894 20.884 22.589 22.660 18.211 15.894 17.314 15.150
Value at End of Year 26.907 22.665 25.204 20.894 20.884 22.589 22.660 18.211 15.894 17.314
No. of Units 76,100 78,923 109,248 111,671 115,151 178,214 203,361 181,301 184,803 213,118
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 15.900 12.766 11.130 12.112 10.588
Value at End of Year — — — — — — 15.900 12.766 11.130 12.112
No. of Units — — — — — — 3,325 18,615 18,625 23,894
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 22.106 24.619 20.440 20.461 22.164 22.268 17.923 15.666 17.091 14.977
Value at End of Year 26.204 22.106 24.619 20.440 20.461 22.164 22.268 17.923 15.666 17.091
No. of Units 2,438 2,684 2,811 2,814 2,925 2,729 33,812 40,389 53,198 92,647
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — 14.942 14.898 16.074 16.084 12.894 11.226 12.197 10.646
Value at End of Year — — — 14.942 14.898 16.074 16.084 12.894 11.226 12.197
Venture No. of Units — — — 669 28,692 87,988 266,066 290,233 297,182 321,075
NY Venture No. of Units — — — — — — 1,401 1,401 12,099 36,705
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 16.280 18.031 14.888 14.822 15.967 15.954 12.770 — — —
Value at End of Year 19.404 16.280 18.031 14.888 14.822 15.967 15.954 — — —
Venture No. of Units 60,848 69,900 87,003 99,195 103,762 126,313 7,345 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 22.398 18.018 15.742 17.165 15.034
Value at End of Year — — — — — — 22.398 18.018 15.742 17.165
NY Venture No. of Units — — — — — — 4,349 4,432 4,432 4,433

 

U- 56

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 22.855 25.402 21.048 21.027 22.732 22.792 18.308 — — —
Value at End of Year 27.145 22.855 25.402 21.048 21.027 22.732 22.792 — — —
NY Venture No. of Units 1,113 1,113 1,113 1,113 1,113 1,113 81 — — —
Managed Volatility Balanced Portfolio (formerly Lifestyle Balanced MVP) - Series I Shares (units first credited 01-07-1997)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 16.643 14.928 13.499 13.570 12.284
Value at End of Year — — — — — — 16.643 14.928 13.499 13.570
Venture No. of Units — — — — — — 2,391 2,393 2,395 2,397
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 29.219 31.156 27.681 26.788 27.790 27.023 24.298 22.028 22.200 20.146
Value at End of Year 33.977 29.219 31.156 27.681 26.788 27.790 27.023 24.298 22.028 22.200
Ven 22, 20 No. of Units 2,509,232 2,914,721 3,397,990 3,866,173 4,485,429 5,261,494 6,077,744 6,827,071 7,999,801 9,146,042
Ven 24 No. of Units 41,457 42,827 49,770 57,747 59,965 64,608 184,956 207,774 230,315 257,914
Ven 22, 20 Contracts with GEM
Value at Start of Year 21.071 22.512 20.042 19.433 20.201 19.683 17.733 16.109 16.267 14.792
Value at End of Year 24.453 21.071 22.512 20.042 19.433 20.201 19.683 17.733 16.109 16.267
No. of Units 94,786 101,481 111,854 121,441 94,542 101,539 158,336 200,213 225,950 260,321
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 20.620 22.064 19.672 19.104 19.889 19.407 17.511 15.932 16.112 14.673
Value at End of Year 23.894 20.620 22.064 19.672 19.104 19.889 19.407 17.511 15.932 16.112
No. of Units 88,352 93,113 127,946 159,384 184,188 196,305 548,429 627,545 520,768 602,540
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 29.219 31.156 27.681 26.788 27.790 27.023 24.298 22.028 22.200 20.146
Value at End of Year 33.977 29.219 31.156 27.681 26.788 27.790 27.023 24.298 22.028 22.200
Ven 7, 8 No. of Units 337,690 357,672 409,116 501,506 587,667 688,154 796,241 940,760 1,099,514 1,200,744
Ven 9 No. of Units 63,227 65,058 72,250 80,568 102,938 110,524 248,812 279,119 327,148 374,677
Ven 3 Contracts with no Optional Riders
Value at Start of Year 29.219 31.156 27.681 26.788 27.790 27.023 24.298 22.028 22.200 20.146
Value at End of Year 33.977 29.219 31.156 27.681 26.788 27.790 27.023 24.298 22.028 22.200
No. of Units 56,170 63,578 67,192 75,029 81,601 74,087 80,993 101,014 112,391 122,115
Managed Volatility Balanced Portfolio (formerly Lifestyle Balanced MVP) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 17.765 18.925 16.818 16.262 16.853 16.388 14.730 13.340 13.437 12.192
Value at End of Year 20.675 17.765 18.925 16.818 16.262 16.853 16.388 14.730 13.340 13.437
Venture No. of Units   3,700 3,691,649 13,146,060 43,670,718 79,568,897 115,170,253 137,811,673 142,821,763 142,570,412
NY Venture No. of Units — — 119,551 458,258 1,275,614 2,769,635 9,148,394 11,098,550 11,432,803 11,376,960
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 15.346 16.323 14.485 13.985 14.471 14.050 12.610 — — —
Value at End of Year 17.887 15.346 16.323 14.485 13.985 14.471 14.050 — — —
Venture No. of Units 66,920,655 76,747,450 83,708,902 84,754,506 63,209,768 37,426,361 15,624,596 — — —
NY Venture No. of Units 2,355,646 2,724,193 3,029,098 2,952,183 2,623,249 1,320,038 1,461,616 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 23.550 25.151 22.407 21.721 22.566 21.998 19.822 17.997 18.174 16.531
Value at End of Year 27.340 23.550 25.151 22.407 21.721 22.566 21.998 19.822 17.997 18.174
Ven 22, 20 No. of Units 11,033,829 12,891,530 14,901,246 17,166,447 19,836,032 23,433,916 29,272,860 35,247,752 41,573,893 46,822,948
Ven 24 No. of Units 775,949 889,368 1,036,121 1,193,338 1,331,686 1,576,645 5,017,624 6,047,571 6,622,747 7,186,213
Ven 22, 20 Contracts with GEM
Value at Start of Year 22.779 24.376 21.761 21.136 22.003 21.492 19.405 17.653 17.862 16.280
Value at End of Year 26.392 22.779 24.376 21.761 21.136 22.003 21.492 19.405 17.653 17.862
No. of Units 423,735 612,626 648,048 802,709 890,004 1,008,087 1,178,904 1,448,906 1,605,274 1,772,005
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 16.349 15.953 14.390 13.078 13.219 12.037
Value at End of Year — — — — — 16.349 15.953 14.390 13.078 13.219
No. of Units — — — — — 1,186 1,045,894 1,777,898 1,932,584 2,173,012
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 17.320 18.488 16.463 15.951 16.563 16.138 14.535 — — —
Value at End of Year 20.117 17.320 18.488 16.463 15.951 16.563 16.138 — — —
No. of Units 268,707 327,581 374,753 427,494 474,175 617,645 629,301 — — —

 

U- 57

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 22.217 23.811 21.288 20.708 21.589 21.120 19.097 17.400 17.632 16.095
Value at End of Year 25.703 22.217 23.811 21.288 20.708 21.589 21.120 19.097 17.400 17.632
No. of Units 447,272 527,567 590,660 699,779 809,394 1,007,426 2,929,928 3,707,412 4,249,217 4,827,020
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 18.488 16.463 15.951 16.563 16.138 14.535 13.189 13.312 12.103
Value at End of Year — — 18.488 16.463 15.951 16.563 16.138 14.535 13.189 13.312
Venture No. of Units — — 713,820 3,785,367 15,338,158 26,031,688 39,493,034 47,375,476 49,606,606 50,789,284
NY Venture No. of Units — — 38,914 218,088 930,871 1,854,763 5,767,039 6,642,296 6,965,765 7,305,956
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.376 19.586 17.414 16.847 17.468 16.994 15.282 — — —
Value at End of Year 21.376 18.376 19.586 17.414 16.847 17.468 16.994 — — —
Venture No. of Units 18,880,990 21,837,076 24,312,215 24,809,998 17,379,724 10,700,445 4,804,363 — — —
NY Venture No. of Units 1,113,923 1,450,449 1,683,176 1,787,627 1,248,399 670,689 535,346 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 21.243 19.199 17.484 17.709 16.156
Value at End of Year — — — — — — 21.243 19.199 17.484 17.709
NY Venture No. of Units — — — — — — 499,907 781,610 824,669 873,126
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 22.970 24.568 21.920 21.281 22.142 21.617 19.508 — — —
Value at End of Year 26.626 22.970 24.568 21.920 21.281 22.142 21.617 — — —
NY Venture No. of Units 100,329 109,052 135,527 187,069 214,216 249,209 243,135 — — —
Managed Volatility Conservative Portfolio (formerly Lifestyle Conservative MVP) - Series I Shares (units first credited 01-07-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 29.091 30.160 28.367 27.506 27.881 26.924 26.285 24.565 23.900 22.211
Value at End of Year 32.525 29.091 30.160 28.367 27.506 27.881 26.924 26.285 24.565 23.900
Ven 22, 20 No. of Units 569,361 618,457 743,214 891,879 986,420 1,109,746 1,395,324 2,247,245 2,282,780 2,817,352
Ven 24 No. of Units 19,636 19,352 21,731 22,731 22,303 30,516 61,027 69,747 74,281 84,518
Ven 22, 20 Contracts with GEM
Value at Start of Year 21.240 22.065 20.795 20.204 20.521 19.856 19.423 18.189 17.732 16.512
Value at End of Year 23.700 21.240 22.065 20.795 20.204 20.521 19.856 19.423 18.189 17.732
No. of Units 16,236 16,875 24,243 24,985 26,867 33,938 35,067 45,052 52,916 73,501
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 21.509 22.378 21.121 20.552 20.905 20.258 19.847 18.614 18.173 16.948
Value at End of Year 23.964 21.509 22.378 21.121 20.552 20.905 20.258 19.847 18.614 18.173
No. of Units 15,125 21,118 22,350 32,584 32,308 32,882 163,614 209,347 265,062 332,837
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 29.091 30.160 28.367 27.506 27.881 26.924 26.285 24.565 23.900 22.211
Value at End of Year 32.525 29.091 30.160 28.367 27.506 27.881 26.924 26.285 24.565 23.900
Ven 7, 8 No. of Units 177,207 208,422 227,658 270,063 265,098 342,897 407,568 425,490 421,398 327,282
Ven 9 No. of Units 20,393 17,499 23,404 30,894 36,074 38,045 88,092 112,010 109,206 117,036
Ven 3 Contracts with no Optional Riders
Value at Start of Year 29.091 30.160 28.367 27.506 27.881 26.924 26.285 24.565 23.900 22.211
Value at End of Year 32.525 29.091 30.160 28.367 27.506 27.881 26.924 26.285 24.565 23.900
No. of Units 49,217 44,657 50,302 50,985 48,933 51,236 105,985 100,548 89,164 19,841
Managed Volatility Conservative Portfolio (formerly Lifestyle Conservative MVP) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 18.047 18.705 17.573 17.042 17.265 16.659 16.252 15.185 14.764 13.718
Value at End of Year 20.192 18.047 18.705 17.573 17.042 17.265 16.659 16.252 15.185 14.764
Venture No. of Units   1,091 784,804 3,356,199 8,957,046 14,834,540 21,269,632 30,305,739 30,050,733 28,839,157
NY Venture No. of Units — — 18,726 188,146 506,543 819,948 2,278,965 2,594,697 2,599,415 2,334,379
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 14.008 14.496 13.599 13.168 13.321 12.833 12.501 — — —
Value at End of Year 15.696 14.008 14.496 13.599 13.168 13.321 12.833 — — —
Venture No. of Units 12,136,735 13,924,048 15,800,264 15,328,652 10,075,421 5,250,380 2,170,286 — — —
NY Venture No. of Units 573,659 636,117 715,274 713,076 427,055 222,895 115,348 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 21.115 21.939 20.664 20.089 20.403 19.736 19.302 18.081 17.622 16.415
Value at End of Year 23.565 21.115 21.939 20.664 20.089 20.403 19.736 19.302 18.081 17.622
Ven 22, 20 No. of Units 1,820,286 2,137,556 2,576,542 3,044,618 3,412,425 4,242,105 5,127,688 7,442,824 8,215,771 9,103,201
Ven 24 No. of Units 130,468 150,702 194,826 208,767 253,853 270,350 750,906 1,133,866 1,287,092 1,291,534

 

U- 58

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM
Value at Start of Year 20.424 21.264 20.067 19.548 19.894 19.282 18.895 17.735 17.321 16.166
Value at End of Year 22.748 20.424 21.264 20.067 19.548 19.894 19.282 18.895 17.735 17.321
No. of Units 102,709 95,529 108,050 180,651 177,453 153,992 181,652 221,916 299,644 276,980
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 16.217 15.876 14.887 14.524 13.543
Value at End of Year — — — — — — 16.217 15.876 14.887 14.524
No. of Units — — — — — — 352,703 434,316 424,069 400,773
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 17.595 18.273 17.202 16.715 16.968 16.405 16.036 — — —
Value at End of Year 19.647 17.595 18.273 17.202 16.715 16.968 16.405 — — —
No. of Units 99,719 108,805 125,455 130,112 130,619 162,651 50,509 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 19.920 20.771 19.631 19.152 19.520 18.948 18.596 17.481 17.098 15.982
Value at End of Year 22.154 19.920 20.771 19.631 19.152 19.520 18.948 18.596 17.481 17.098
No. of Units 23,759 115,443 142,522 177,783 186,153 255,594 825,991 1,182,645 1,307,943 1,541,057
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 18.273 17.202 16.715 16.968 16.405 16.036 15.014 14.626 13.618
Value at End of Year — — 18.273 17.202 16.715 16.968 16.405 16.036 15.014 14.626
Venture No. of Units — — 218,913 1,092,542 3,623,589 5,800,867 8,626,682 11,593,746 11,530,792 11,080,103
NY Venture No. of Units — — 2,880 74,941 258,562 383,543 1,157,277 1,435,880 1,466,790 1,484,644
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 16.124 16.720 15.717 15.249 15.457 14.921 14.564 — — —
Value at End of Year 18.031 16.124 16.720 15.717 15.249 15.457 14.921 — — —
Venture No. of Units 4,003,694 4,923,177 5,557,054 5,688,513 3,677,792 2,064,940 742,865 — — —
NY Venture No. of Units 243,674 281,324 371,053 353,323 204,519 108,424 98,491 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 19.058 18.695 17.565 17.172 16.043
Value at End of Year — — — — — — 19.058 18.695 17.565 17.172
NY Venture No. of Units — — — — — — 154,941 237,499 243,057 223,982
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.594 21.431 20.215 19.682 20.020 19.394 18.996 — — —
Value at End of Year 22.949 20.594 21.431 20.215 19.682 20.020 19.394 — — —
NY Venture No. of Units 42,016 45,205 57,897 61,703 65,043 55,471 56,766 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — 20.089 20.403 12.500 — — — —
Value at End of Year — — — — 20.089 20.403 — — — —
Ven 9 No. of Units — — — — 1,083 1,152 — — — —
Managed Volatility Growth Portfolio (formerly Lifestyle Growth MVP) - Series I Shares (units first credited 01-07-1997)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 16.676 14.135 12.557 12.909 11.554
Value at End of Year — — — — — 16.676 16.676 14.135 12.557 12.909
Venture No. of Units — — — — — — 2,497 2,518 2,540 2,562
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 26.996 29.296 25.051 24.584 26.114 25.922 22.027 19.618 20.218 18.142
Value at End of Year 31.827 26.996 29.296 25.051 24.584 26.114 25.922 22.027 19.618 20.218
Ven 22, 20 No. of Units 3,004,722 3,385,920 3,897,265 4,554,676 5,265,550 6,085,574 7,061,067 7,835,713 8,826,861 10,033,976
Ven 24 No. of Units 15,486 29,669 29,756 38,460 39,684 42,780 121,402 138,201 148,288 160,877
Ven 22, 20 Contracts with GEM
Value at Start of Year 19.690 21.410 18.344 18.038 19.199 19.096 16.259 14.510 14.984 13.472
Value at End of Year 23.167 19.690 21.410 18.344 18.038 19.199 19.096 16.259 14.510 14.984
No. of Units 124,262 124,960 131,254 134,539 190,755 217,814 224,793 234,254 307,230 374,460
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 18.960 20.648 17.717 17.448 18.599 18.527 15.798 14.120 14.603 13.149
Value at End of Year 22.275 18.960 20.648 17.717 17.448 18.599 18.527 15.798 14.120 14.603
No. of Units 31,706 38,470 39,455 49,989 56,567 61,978 276,073 367,340 410,651 449,616
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 26.996 29.296 25.051 24.584 26.114 25.922 22.027 19.618 20.218 18.142
Value at End of Year 31.827 26.996 29.296 25.051 24.584 26.114 25.922 22.027 19.618 20.218
Ven 7, 8 No. of Units 306,497 335,008 389,452 502,277 565,981 609,420 686,037 751,942 910,789 1,136,888
Ven 9 No. of Units 55,172 56,741 69,669 71,260 72,940 77,212 209,661 257,432 284,789 319,669

 

U- 59

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 3 Contracts with no Optional Riders
Value at Start of Year 26.996 29.296 25.051 24.584 26.114 25.922 22.027 19.618 20.218 18.142
Value at End of Year 31.827 26.996 29.296 25.051 24.584 26.114 25.922 22.027 19.618 20.218
No. of Units 7,854 8,859 14,249 15,677 15,935 15,426 25,157 33,972 45,625 131,469
Managed Volatility Growth Portfolio (formerly Lifestyle Growth MVP) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 17.145 18.590 15.889 15.582 16.560 16.417 13.945 12.420 12.794 11.470
Value at End of Year 20.223 17.145 18.590 15.889 15.582 16.560 16.417 13.945 12.420 12.794
Venture No. of Units 19,862 19,049 6,421,144 20,548,923 56,633,201 102,883,541 165,560,126 194,597,756 189,648,574 186,078,315
NY Venture No. of Units — — 102,523 433,399 1,067,067 2,438,428 9,594,420 12,169,422 11,720,836 12,147,159
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 15.701 16.998 14.507 14.206 15.074 14.922 12.656 — — —
Value at End of Year 18.548 15.701 16.998 14.507 14.206 15.074 14.922 — — —
Venture No. of Units 93,059,147 106,302,829 114,134,909 113,022,481 92,105,018 63,463,481 27,497,528 — — —
NY Venture No. of Units 2,034,616 2,474,376 2,818,135 2,694,807 2,654,665 1,687,765 1,912,037 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 23.318 25.347 21.718 21.352 22.748 22.609 19.252 17.190 17.752 15.954
Value at End of Year 27.436 23.318 25.347 21.718 21.352 22.748 22.609 19.252 17.190 17.752
Ven 22, 20 No. of Units 15,618,099 18,169,348 20,989,460 23,674,873 27,120,687 32,129,734 40,852,250 47,924,920 54,365,054 60,384,159
Ven 24 No. of Units 905,008 1,044,896 1,172,305 1,271,047 1,384,641 1,625,375 5,992,432 6,968,248 7,884,143 8,498,087
Ven 22, 20 Contracts with GEM
Value at Start of Year 22.555 24.566 21.091 20.778 22.180 22.088 18.847 16.862 17.448 15.712
Value at End of Year 26.485 22.555 24.566 21.091 20.778 22.180 22.088 18.847 16.862 17.448
No. of Units 476,547 540,071 649,062 682,118 768,044 867,869 1,116,584 1,328,639 1,471,850 1,699,794
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 16.064 15.982 13.623 12.176 12.586 11.323
Value at End of Year — — — — — 16.064 15.982 13.623 12.176 12.586
No. of Units — — — — — 4,002 1,338,403 1,991,649 2,100,864 2,217,557
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 16.716 18.161 15.553 15.284 16.275 16.167 13.760 — — —
Value at End of Year 19.678 16.716 18.161 15.553 15.284 16.275 16.167 — — —
No. of Units 310,044 372,137 460,560 570,467 609,379 684,239 576,616 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 21.999 23.996 20.633 20.357 21.764 21.706 18.548 16.620 17.223 15.533
Value at End of Year 25.793 21.999 23.996 20.633 20.357 21.764 21.706 18.548 16.620 17.223
No. of Units 258,504 314,832 388,838 442,377 514,782 628,559 2,528,108 3,128,673 3,642,241 4,053,834
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year 16.716 18.161 15.553 15.284 16.275 16.167 13.760 12.280 12.675 11.386
Value at End of Year 19.678 16.716 18.161 15.553 15.284 16.275 16.167 13.760 12.280 12.675
Venture No. of Units 278 32,139 2,229,328 7,646,745 22,771,416 41,994,797 65,960,758 78,982,450 77,417,824 76,688,439
NY Venture No. of Units — — 124,277 433,462 1,086,713 2,078,305 7,310,125 8,427,732 7,832,296 7,587,479
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 19.235 20.867 17.843 17.508 18.616 18.464 15.692 — — —
Value at End of Year 22.677 19.235 20.867 17.843 17.508 18.616 18.464 — — —
Venture No. of Units 30,950,358 35,486,002 38,276,540 38,625,301 31,285,258 21,175,649 8,863,666 — — —
NY Venture No. of Units 1,380,628 1,598,296 1,652,993 1,530,951 1,220,202 789,654 772,330 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 21.902 21.833 18.647 16.700 17.298 15.593
Value at End of Year — — — — — 21.902 21.833 18.647 16.700 17.298
NY Venture No. of Units — — — — — 2,855 962,957 1,288,537 1,362,125 1,430,627
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 22.743 24.759 21.246 20.920 22.321 22.217 18.947 — — —
Value at End of Year 26.719 22.743 24.759 21.246 20.920 22.321 22.217 — — —
NY Venture No. of Units 111,774 137,361 171,426 194,688 224,870 228,267 218,105 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — — — 22.609 19.252 17.190 17.752 15.954
Value at End of Year — — — — — 22.609 22.609 19.252 17.190 17.752
Ven 9 No. of Units — — — — — — 529 556 579 610

U- 60

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Managed Volatility Moderate Portfolio (formerly Lifestyle Moderate MVP) - Series I Shares (units first credited 01-07-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 30.344 32.052 29.051 27.979 28.635 27.672 25.460 23.332 23.122 21.210
Value at End of Year 34.925 30.344 32.052 29.051 27.979 28.635 27.672 25.460 23.332 23.122
Ven 22, 20 No. of Units 871,806 959,328 1,130,757 1,273,669 1,485,076 1,746,781 2,153,701 2,389,690 2,720,700 3,356,609
Ven 24 No. of Units 31,364 41,165 46,157 41,949 43,874 46,618 78,766 88,047 106,245 114,502
Ven 22, 20 Contracts with GEM        
Value at Start of Year 21.797 23.070 20.952 20.219 20.734 20.077 18.509 16.997 16.877 15.512
Value at End of Year 25.038 21.797 23.070 20.952 20.219 20.734 20.077 18.509 16.997 16.877
No. of Units 41,653 44,200 53,523 55,993 55,455 67,474 66,509 63,709 62,069 81,335
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 21.594 22.890 20.820 20.122 20.665 20.040 18.503 17.016 16.922 15.577
Value at End of Year 24.768 21.594 22.890 20.820 20.122 20.665 20.040 18.503 17.016 16.922
No. of Units 37,447 39,982 54,005 63,584 68,508 77,550 165,750 238,954 297,849 388,286
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year 30.344 32.052 29.051 27.979 28.635 27.672 25.460 23.332 23.122 21.210
Value at End of Year 34.925 30.344 32.052 29.051 27.979 28.635 27.672 25.460 23.332 23.122
Ven 7, 8 No. of Units 156,761 201,447 221,851 257,211 295,321 332,715 367,020 414,347 419,823 464,730
Ven 9 No. of Units 17,883 21,616 33,721 29,985 36,984 38,398 94,342 117,407 130,498 159,395
Ven 3 Contracts with no Optional Riders            
Value at Start of Year 30.344 32.052 29.051 27.979 28.635 27.672 25.460 23.332 23.122 21.210
Value at End of Year 34.925 30.344 32.052 29.051 27.979 28.635 27.672 25.460 23.332 23.122
No. of Units 5,228 9,242 9,741 12,436 14,321 18,240 25,842 31,886 34,210 45,461
Managed Volatility Moderate Portfolio (formerly Lifestyle Moderate MVP) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 18.523 19.545 17.707 17.039 17.432 16.845 15.495 14.185 14.049 12.874
Value at End of Year 21.319 18.523 19.545 17.707 17.039 17.432 16.845 15.495 14.185 14.049
Venture No. of Units     1,215,353 5,206,415 16,443,712 27,108,994 37,471,877 42,897,753 43,852,507 42,964,244
NY Venture No. of Units — — 39,068 216,967 775,238 1,280,611 3,560,836 4,099,489 4,174,739 3,964,874
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 15.159 15.970 14.447 13.882 14.181 13.682 12.567 — — —
Value at End of Year 17.473 15.159 15.970 14.447 13.882 14.181 13.682 — — —
Venture No. of Units 21,888,199 25,271,697 28,032,427 27,546,377 17,982,769 9,620,558 3,293,680 — — —
NY Venture No. of Units 1,157,576 1,403,875 1,469,531 1,488,141 968,881 461,898 252,623 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 22.965 24.293 22.064 21.285 21.830 21.148 19.501 17.898 17.771 16.325
Value at End of Year 26.366 22.965 24.293 22.064 21.285 21.830 21.148 19.501 17.898 17.771
Ven 22, 20 No. of Units 2,838,054 3,356,054 3,929,713 4,425,177 4,951,994 5,958,319 7,567,723 9,155,000 10,492,772 11,800,697
Ven 24 No. of Units 203,638 230,505 258,460 378,410 438,780 491,111 1,399,745 1,684,579 1,976,281 2,127,075
Ven 22, 20 Contracts with GEM              
Value at Start of Year 22.213 23.545 21.427 20.712 21.285 20.661 19.091 17.557 17.466 16.077
Value at End of Year 25.452 22.213 23.545 21.427 20.712 21.285 20.661 19.091 17.557 17.466
No. of Units 85,648 111,904 121,320 129,512 171,328 188,483 220,562 316,367 340,264 442,452
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 16.399 15.137 13.907 13.821 12.710
Value at End of Year — — — — — — 16.399 15.137 13.907 13.821
No. of Units — — — — — — 433,856 599,450 615,895 628,257
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.059 19.094 17.333 16.713 17.132 16.589 15.289 — — —
Value at End of Year 20.744 18.059 19.094 17.333 16.713 17.132 16.589 — — —
No. of Units 96,621 124,187 156,171 189,005 253,685 264,828 152,520 — — —
Ven 24 Contracts with Payment Enhancement      
Value at Start of Year 21.666 22.999 20.961 20.293 20.885 20.304 18.788 17.305 17.241 15.894
Value at End of Year 24.787 21.666 22.999 20.961 20.293 20.885 20.304 18.788 17.305 17.241
No. of Units 220,600 260,815 311,117 349,238 432,459 489,473 1,286,240 1,570,566 1,869,468 2,058,573
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year 18.059 19.094 17.333 16.713 17.132 16.589 15.289 14.025 13.919 12.780
Value at End of Year 20.744 18.059 19.094 17.333 16.713 17.132 16.589 15.289 14.025 13.919
Venture No. of Units 10,880 11,357 491,484 1,807,019 6,705,900 10,835,338 15,392,313 18,218,869 18,285,176 17,983,937
NY Venture No. of Units — — 11,033 71,207 319,623 792,551 2,285,371 2,661,417 2,697,813 2,754,605

U- 61

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 17.945 18.945 17.172 16.533 16.922 16.361 15.057 — — —
Value at End of Year 20.644 17.945 18.945 17.172 16.533 16.922 16.361 — — —
Venture No. of Units 7,304,658 8,482,525 9,173,284 9,447,385 5,849,694 3,283,125 1,432,320 — — —
NY Venture No. of Units 446,986 477,796 574,398 711,877 508,045 159,683 175,225 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 20.422 18.888 17.388 17.316 15.955
Value at End of Year — — — — — — 20.422 18.888 17.388 17.316
NY Venture No. of Units — — — — — — 270,365 454,425 459,810 478,155
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 22.399 23.730 21.584 20.854 21.420 20.782 19.192 — — —
Value at End of Year 25.677 22.399 23.730 21.584 20.854 21.420 20.782 — — —
NY Venture No. of Units 105,233 142,466 181,785 198,868 211,283 197,284 137,101 — — —
Mid Cap Index Trust - Series I Shares (units first credited 05-01-2000)  
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 38.876 44.528 38.990 32.918 34.271 31.784 24.230 20.917 21.700 17.467
Value at End of Year 48.144 38.876 44.528 38.990 32.918 34.271 31.784 24.230 20.917 21.700
Ven 22, 20 No. of Units 659,111 747,914 860,184 377,528 408,628 440,011 504,449 571,415 656,150 798,100
Ven 24 No. of Units 19,712 22,759 25,463 6,211 6,862 9,161 11,224 11,150 15,432 25,705
Ven 22, 20 Contracts with GEM        
Value at Start of Year 34.784 39.922 35.026 29.631 30.911 28.725 21.942 18.979 19.729 15.913
Value at End of Year 42.991 34.784 39.922 35.026 29.631 30.911 28.725 21.942 18.979 19.729
No. of Units 13,704 16,110 18,631 6,896 6,638 5,772 6,241 5,618 9,208 11,800
Ven 24 Contracts with Payment Enhancement      
Value at Start of Year 36.366 41.801 36.729 31.119 32.511 30.258 23.147 20.052 20.876 16.863
Value at End of Year 44.879 36.366 41.801 36.729 31.119 32.511 30.258 23.147 20.052 20.876
No. of Units 18,108 22,624 24,256 7,766 8,751 8,594 9,322 11,531 22,928 28,905
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year 38.876 44.528 38.990 32.918 34.271 31.784 24.230 20.917 21.700 17.467
Value at End of Year 48.144 38.876 44.528 38.990 32.918 34.271 31.784 24.230 20.917 21.700
Ven 7, 8 No. of Units 91,807 111,099 125,328 57,647 62,862 74,464 87,457 86,375 105,053 119,990
Ven 9 No. of Units 54,176 59,114 60,264 17,199 20,676 21,204 19,453 20,081 19,190 31,874
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 38.876 44.528 38.990 32.918 34.271 31.784 24.230 20.917 21.700 17.467
Value at End of Year 48.144 38.876 44.528 38.990 32.918 34.271 31.784 24.230 20.917 21.700
No. of Units 8,943 8,026 9,400 6,677 6,357 9,066 8,320 8,440 9,019 9,185
Mid Cap Index Trust - Series II Shares (units first credited 05-13-2002)  
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — 25.576 21.575 22.453 20.815 15.860 13.679 14.186 11.407
Value at End of Year — — — 25.576 21.575 22.453 20.815 15.860 13.679 14.186
Venture No. of Units — — — 10 20,355 56,292 90,191 108,887 128,579 137,222
NY Venture No. of Units — — — — 8,872 11,475 12,589 16,460 16,716 17,915
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.673 23.637 20.669 17.409 18.091 16.745 12.740 — — —
Value at End of Year 25.673 20.673 23.637 20.669 17.409 18.091 16.745 — — —
Venture No. of Units 73,129 94,259 111,747 73,053 73,485 57,223 29,865 — — —
NY Venture No. of Units 6,269 7,235 8,796 9,088 3,250 2,980 3,053 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 35.046 40.232 35.320 29.868 31.163 28.961 22.123 19.128 19.887 16.030
Value at End of Year 43.348 35.046 40.232 35.320 29.868 31.163 28.961 22.123 19.128 19.887
Ven 22, 20 No. of Units 218,821 257,918 318,599 234,680 267,224 300,570 367,429 434,604 475,788 571,595
Ven 24 No. of Units 53,392 56,447 74,649 69,365 69,845 72,479 89,445 96,925 101,555 129,753
Ven 22, 20 Contracts with GEM              
Value at Start of Year 33.898 38.993 34.301 29.064 30.384 28.294 21.657 18.762 19.546 15.787
Value at End of Year 41.844 33.898 38.993 34.301 29.064 30.384 28.294 21.657 18.762 19.546
No. of Units 29,891 30,649 38,195 38,913 39,029 20,565 21,408 21,261 67,948 72,837
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 21.817 20.296 15.519 13.431 13.978 11.279
Value at End of Year — — — — — 21.817 20.296 15.519 13.431 13.978
No. of Units — — — — — 629 4,731 6,976 8,323 5,441

U- 62

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 24.889 28.559 25.059 21.181 22.087 20.517 15.664 — — —
Value at End of Year 30.801 24.889 28.559 25.059 21.181 22.087 20.517 — — —
No. of Units 5,158 5,341 5,784 2,197 2,290 4,537 901 — — —
Ven 24 Contracts with Payment Enhancement      
Value at Start of Year 33.062 38.089 33.555 28.475 29.814 27.804 21.313 18.493 19.294 15.607
Value at End of Year 40.751 33.062 38.089 33.555 28.475 29.814 27.804 21.313 18.493 19.294
No. of Units 46,734 49,183 52,171 36,630 42,352 37,051 47,070 50,095 56,316 69,891
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 21.181 22.087 20.517 15.664 13.537 14.067 11.333
Value at End of Year — — — — 21.181 22.087 20.517 15.664 13.537 14.067
Venture No. of Units — — — — 6,974 27,193 41,365 54,124 70,931 77,787
NY Venture No. of Units — — — — 382 2,115 22,128 26,859 27,030 18,120
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.424 23.399 20.501 17.302 18.016 16.710 12.739 — — —
Value at End of Year 25.312 20.424 23.399 20.501 17.302 18.016 16.710 — — —
Venture No. of Units 52,518 54,071 57,381 40,271 35,225 18,353 10,863 — — —
NY Venture No. of Units 11,041 11,305 11,308 27,993 27,673 27,099 6,445 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 27.967 21.427 18.582 19.378 15.667
Value at End of Year — — — — — — 27.967 21.427 18.582 19.378
NY Venture No. of Units — — — — — — 2,887 3,296 2,735 2,809
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 34.181 39.299 34.553 29.263 30.577 28.460 21.772 — — —
Value at End of Year 42.215 34.181 39.299 34.553 29.263 30.577 28.460 — — —
NY Venture No. of Units 976 1,009 991 304 2,570 2,613 157 — — —
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year — — — — — 28.961 22.123 19.128 19.887 16.030
Value at End of Year — — — — — — 28.961 22.123 19.128 19.887
Ven 9 No. of Units — — — — — — 1,069 1,123 1,169 1,232
Mid Cap Stock Trust - Series I Shares (units first credited 05-01-1999)  
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — 14.934 12.500 — —
Value at End of Year — — — — — — — 14.934 — —
Venture No. of Units — — — — — — — 34 — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 33.706 34.725 27.394 27.618 27.192 25.529 18.922 15.702 17.537 14.448
Value at End of Year 44.713 33.706 34.725 27.394 27.618 27.192 25.529 18.922 15.702 17.537
Ven 22, 20 No. of Units 1,307,020 1,447,601 1,687,449 1,910,482 2,181,536 2,444,435 2,886,746 3,314,920 3,873,238 4,560,555
Ven 24 No. of Units 56,074 58,418 65,114 71,659 81,276 102,143 128,564 144,287 168,243 207,080
Ven 22, 20 Contracts with GEM              
Value at Start of Year 33.430 34.510 27.279 27.557 27.187 25.575 18.994 15.794 17.674 14.591
Value at End of Year 44.259 33.430 34.510 27.279 27.557 27.187 25.575 18.994 15.794 17.674
No. of Units 22,962 24,278 26,035 27,871 34,892 40,378 45,720 48,357 54,701 62,067
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 32.680 33.786 26.747 27.060 26.736 25.189 18.735 15.602 17.486 14.457
Value at End of Year 43.200 32.680 33.786 26.747 27.060 26.736 25.189 18.735 15.602 17.486
No. of Units 34,686 62,277 70,397 83,244 94,819 116,347 138,970 162,042 195,239 244,217
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year 33.706 34.725 27.394 27.618 27.192 25.529 18.922 15.702 17.537 14.448
Value at End of Year 44.713 33.706 34.725 27.394 27.618 27.192 25.529 18.922 15.702 17.537
Ven 7, 8 No. of Units 150,586 168,059 180,494 198,376 229,265 246,265 289,700 337,019 378,468 432,641
Ven 9 No. of Units 33,581 37,756 39,898 49,529 57,461 63,551 65,557 75,090 88,603 105,767
Ven 3 Contracts with no Optional Riders      
Value at Start of Year 33.706 34.725 27.394 27.618 27.192 25.529 18.922 15.702 17.537 14.448
Value at End of Year 44.713 33.706 34.725 27.394 27.618 27.192 25.529 18.922 15.702 17.537
No. of Units 5,123 5,174 8,197 9,014 9,539 26,671 29,987 34,407 53,714 67,847

U- 63

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Mid Cap Stock Trust - Series II Shares (units first credited 05-13-2002)  
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 21.525 21.191 19.881 14.733 12.215 13.637 11.233
Value at End of Year — — — — 21.525 21.191 19.881 14.733 12.215 13.637
Venture No. of Units — — — — 30,522 73,706 174,778 225,399 241,054 255,420
NY Venture No. of Units — — — — 3,880 7,834 13,050 22,708 23,878 27,145
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 23.092 23.731 18.688 18.800 18.481 17.312 12.810 — — —
Value at End of Year 30.693 23.092 23.731 18.688 18.800 18.481 17.312 — — —
Venture No. of Units 94,010 102,978 121,696 130,212 124,121 115,299 44,763 — — —
NY Venture No. of Units 5,676 6,926 7,316 10,139 10,800 6,860 2,761 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 41.683 43.010 34.005 34.345 33.897 31.881 23.684 19.687 22.034 18.195
Value at End of Year 55.182 41.683 43.010 34.005 34.345 33.897 31.881 23.684 19.687 22.034
Ven 22, 20 No. of Units 345,928 383,821 433,993 482,748 542,370 602,923 738,875 908,443 1,107,449 1,264,329
Ven 24 No. of Units 107,934 120,085 139,227 149,498 162,776 176,429 218,814 264,176 322,477 367,227
Ven 22, 20 Contracts with GEM              
Value at Start of Year 40.318 41.685 33.023 33.420 33.051 31.147 23.185 19.311 21.656 17.919
Value at End of Year 53.268 40.318 41.685 33.023 33.420 33.051 31.147 23.185 19.311 21.656
No. of Units 28,565 30,038 33,190 35,520 37,418 41,145 45,749 58,279 60,989 64,079
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 19.354 14.392 11.975 13.416 11.090
Value at End of Year — — — — — — 19.354 14.392 11.975 13.416
No. of Units — — — — — — 26,216 17,401 20,401 20,435
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 25.662 26.465 20.914 21.112 20.827 19.578 14.537 — — —
Value at End of Year 33.989 25.662 26.465 20.914 21.112 20.827 19.578 — — —
No. of Units 4,312 5,182 5,335 6,373 11,039 10,668 4,296 — — —
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 39.324 40.719 32.306 32.743 32.430 30.608 22.818 19.034 21.377 17.714
Value at End of Year 51.877 39.324 40.719 32.306 32.743 32.430 30.608 22.818 19.034 21.377
No. of Units 29,740 38,089 42,955 48,180 59,139 81,503 94,133 102,410 124,125 149,536
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 21.112 20.827 19.578 14.537 12.078 13.511 11.151
Value at End of Year — — — — 21.112 20.827 19.578 14.537 12.078 13.511
Venture No. of Units — — — — 15,880 82,220 140,384 184,103 195,629 209,057
NY Venture No. of Units — — — — 12,910 14,095 7,257 10,050 9,990 10,304
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 22.814 23.492 18.537 18.685 18.404 17.275 12.808 — — —
Value at End of Year 30.262 22.814 23.492 18.537 18.685 18.404 17.275 — — —
Venture No. of Units 89,773 94,379 103,216 119,484 114,556 64,419 20,005 — — —
NY Venture No. of Units 3,249 3,274 5,706 7,372 6,444 6,767 2,492 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 30.787 22.940 19.126 21.470 17.782
Value at End of Year — — — — — — 30.787 22.940 19.126 21.470
NY Venture No. of Units — — — — — — 3,401 5,591 6,673 5,846
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 40.655 42.013 33.266 33.649 33.260 31.329 23.309 — — —
Value at End of Year 53.740 40.655 42.013 33.266 33.649 33.260 31.329 — — —
NY Venture No. of Units 1,209 1,246 1,605 1,647 1,864 3,097 289 — — —
Mid Value Trust - Series I Shares (units first credited 04-29-2005)        
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 30.488 34.680 31.560 25.805 27.100 24.847 19.177 16.270 17.346 17.346
Value at End of Year 35.937 30.488 34.680 31.560 25.805 27.100 24.847 19.177 16.270 17.346
Ven 22, 20 No. of Units 530,445 588,267 677,571 779,971 843,809 972,113 1,135,081 1,291,087 1,542,393 —
Ven 24 No. of Units 11,567 15,363 22,243 26,133 27,631 32,079 34,124 37,367 44,677 —
Ven 22, 20 Contracts with GEM              
Value at Start of Year 29.665 33.812 30.831 25.260 26.581 24.420 18.885 16.055 17.158 —
Value at End of Year 34.898 29.665 33.812 30.831 25.260 26.581 24.420 18.885 16.055 —
No. of Units 3,466 3,345 4,613 4,668 4,081 5,946 11,054 16,000 20,118 —

U- 64

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 29.063 33.176 30.296 24.859 26.198 24.104 18.668 15.895 17.013 —
Value at End of Year 34.138 29.063 33.176 30.296 24.859 26.198 24.104 18.668 15.895 —
No. of Units 21,378 28,632 49,206 52,973 56,279 59,126 69,797 82,098 99,549 —
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year 30.488 34.680 31.560 25.805 27.100 24.847 19.177 16.270 17.354 —
Value at End of Year 35.937 30.488 34.680 31.560 25.805 27.100 24.847 19.177 16.270 —
Ven 7, 8 No. of Units 76,965 89,203 99,723 116,979 131,268 154,321 177,955 199,910 241,483 —
Ven 9 No. of Units 13,519 19,753 20,539 24,971 23,583 28,311 30,875 33,840 36,874 —
Ven 3 Contracts with no Optional Riders        
Value at Start of Year 30.488 34.680 31.560 25.805 27.100 24.847 19.177 16.270 17.354 —
Value at End of Year 35.937 30.488 34.680 31.560 25.805 27.100 24.847 19.177 16.270 —
No. of Units 9,872 9,993 10,132 13,703 14,063 13,850 16,484 23,349 29,549 —
Mid Value Trust - Series II Shares (units first credited 04-29-2005)    
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.087 14.841 13.479 12.500 — — — — — —
Value at End of Year 15.438 13.087 14.841 13.479 — — — — — —
Venture No. of Units 10,880 8,699 13,282 4,535 — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 29.933 34.082 31.078 25.462 26.797 24.617 19.036 16.185 17.283 15.137
Value at End of Year 35.171 29.933 34.082 31.078 25.462 26.797 24.617 19.036 16.185 17.283
Ven 22, 20 No. of Units 332,292 358,120 394,181 462,461 517,169 588,749 753,251 964,357 1,186,918 3,227,034
Ven 24 No. of Units 97,679 103,901 121,255 139,061 148,326 164,900 185,965 236,289 268,100 407,468
Ven 22, 20 Contracts with GEM              
Value at Start of Year 29.126 33.229 30.361 24.925 26.284 24.193 18.746 15.970 17.088 14.996
Value at End of Year 34.154 29.126 33.229 30.361 24.925 26.284 24.193 18.746 15.970 17.088
No. of Units 66,136 69,045 69,474 72,811 74,612 77,931 86,645 94,008 102,369 136,732
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.987 14.779 13.470 12.500 — — — — — —
Value at End of Year 15.267 12.987 14.779 13.470 — — — — — —
No. of Units 1,490 1,492 1,494 969 — — — — — —
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 28.534 32.603 29.834 24.529 25.905 23.881 18.532 15.811 16.943 14.891
Value at End of Year 33.410 28.534 32.603 29.834 24.529 25.905 23.881 18.532 15.811 16.943
No. of Units 32,843 37,387 45,907 51,897 58,954 91,018 103,108 130,544 146,092 301,827
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.030 14.805 12.500 — — — — — — —
Value at End of Year 15.340 13.030 14.805 — — — — — — —
Venture No. of Units 523 490 3,911 — — — — — — —
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year — — — — — — — — — 15.150
Value at End of Year — — — — — — — — — 17.354
Ven 9 No. of Units — — — — — — — — — 45,559
No. of Units — — — — — — — — — 279,083
Ven 3 Contracts with no Optional Riders        
Value at Start of Year — — — — — — — — — 15.150
Value at End of Year — — — — — — — — — 17.354
No. of Units — — — — — — — — — 28,484
Money Market Trust - Series I Shares (units first credited 05-04-1987)    
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — 12.735 12.882 13.021 13.172
Value at End of Year — — — — — — — 12.735 12.882 13.021
Venture No. of Units — — — — — — — 445 822 825
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 16.428 16.407 16.540 16.762 16.998 17.237 17.479 17.725 17.961 18.214
Value at End of Year 16.513 16.428 16.407 16.540 16.762 16.998 17.237 17.479 17.725 17.961
Ven 22, 20 No. of Units 605,496 739,911 876,831 1,092,481 1,479,869 1,708,490 2,186,037 3,095,658 3,731,384 4,008,763
Ven 24 No. of Units 22,281 28,230 35,683 43,993 49,567 53,097 82,242 114,523 121,411 134,069

U- 65

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM              
Value at Start of Year 11.610 11.619 11.736 11.917 12.109 12.304 12.502 12.703 12.898 13.106
Value at End of Year 11.646 11.610 11.619 11.736 11.917 12.109 12.304 12.502 12.703 12.898
No. of Units 8,130 13,352 18,658 26,988 27,861 31,172 66,134 125,537 165,231 65,349
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 11.538 11.565 11.699 11.897 12.107 12.321 12.537 12.759 12.974 13.203
Value at End of Year 11.558 11.538 11.565 11.699 11.897 12.107 12.321 12.537 12.759 12.974
No. of Units 32,707 36,426 43,681 56,880 58,190 65,472 81,576 123,886 175,945 228,363
Ven 9, 8,7 Contracts with no Optional Riders      
Value at Start of Year 16.428 16.407 16.540 16.762 16.998 17.237 17.479 17.725 17.961 18.214
Value at End of Year 16.513 16.428 16.407 16.540 16.762 16.998 17.237 17.479 17.725 17.961
Ven 7, 8 No. of Units 175,412 188,803 238,830 271,761 324,642 405,204 535,010 776,180 894,668 1,046,920
Ven 9 No. of Units 53,108 57,070 58,774 63,420 71,745 105,912 136,506 222,002 256,416 253,544
Ven 3 Contracts with no Optional Riders      
Value at Start of Year 16.428 16.407 16.540 16.762 16.998 17.237 17.479 17.725 17.961 18.214
Value at End of Year 16.513 16.428 16.407 16.540 16.762 16.998 17.237 17.479 17.725 17.961
No. of Units 19,953 25,539 29,408 30,913 45,882 72,678 79,289 122,416 140,897 108,758
Ven 1 Contracts with no Optional Riders      
Value at Start of Year 18.371 18.328 18.457 18.683 18.926 19.172 19.419 19.672 19.912 20.171
Value at End of Year 18.486 18.371 18.328 18.457 18.683 18.926 19.172 19.419 19.672 19.912
No. of Units 4,011 4,011 4,011 4,011 4,011 4,011 4,011 4,011 4,011 4,011
Money Market Trust - Series II Shares (units first credited 5-13-2002)  
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — 11.993 12.084 12.224 12.366 12.508 12.652 12.798 12.936 13.086
Value at End of Year — — 11.993 12.084 12.224 12.366 12.508 12.652 12.798 12.936
Venture No. of Units — — 74,771 298,901 1,633,391 3,531,632 6,072,608 9,377,724 11,956,939 11,931,488
NY Venture No. of Units — — — 19,632 66,270 163,028 271,845 368,057 378,328 399,224
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.969 11.930 12.003 12.123 12.245 12.368 12.491 — — —
Value at End of Year 12.055 11.969 11.930 12.003 12.123 12.245 12.368 — — —
Venture No. of Units 2,123,230 2,507,661 3,001,543 3,310,910 2,517,155 1,413,042 599,511 — — —
NY Venture No. of Units 81,793 88,403 106,531 117,403 122,402 64,213 20,110 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year 11.602 11.611 11.728 11.894 12.061 12.231 12.403 12.577 12.745 12.925
Value at End of Year 11.638 11.602 11.611 11.728 11.894 12.061 12.231 12.403 12.577 12.745
Ven 22, 20 No. of Units 711,271 865,686 1,119,570 1,327,435 1,563,652 1,941,984 2,571,079 4,611,035 6,147,361 5,083,761
Ven 24 No. of Units 150,049 159,194 194,324 222,723 235,562 384,816 559,276 662,193 870,473 856,399
Ven 22, 20 Contracts with GEM        
Value at Start of Year 11.222 11.253 11.390 11.573 11.760 11.950 12.141 12.337 12.527 12.729
Value at End of Year 11.235 11.222 11.253 11.390 11.573 11.760 11.950 12.141 12.337 12.527
No. of Units 7,167 11,826 19,187 23,260 27,305 40,942 58,284 258,875 192,724 147,454
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 12.177 12.360 12.547 12.727 12.919
Value at End of Year — — — — — — 12.177 12.360 12.547 12.727
No. of Units — — — — — — 108,245 143,943 162,721 123,342
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.713 11.716 11.829 11.990 12.153 12.318 12.484 — — —
Value at End of Year 11.756 11.713 11.716 11.829 11.990 12.153 12.318 — — —
No. of Units 59,485 61,809 76,597 91,732 99,260 112,742 28,311 — — —
Ven 24 Contracts with Payment Enhancement            
Value at Start of Year 10.945 10.992 11.142 11.339 11.539 11.743 11.949 12.160 12.365 12.583
Value at End of Year 10.941 10.945 10.992 11.142 11.339 11.539 11.743 11.949 12.160 12.365
No. of Units 46,173 60,386 104,169 115,788 133,152 189,522 284,880 415,785 606,688 633,874
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)    
Value at Start of Year — 11.716 11.829 11.990 12.153 12.318 12.484 12.654 12.816 12.990
Value at End of Year — — 11.716 11.829 11.990 12.153 12.318 12.484 12.654 12.816
Venture No. of Units — — 11,642 46,937 373,386 884,645 1,820,167 3,201,260 4,211,115 4,156,351
NY Venture No. of Units — — 1,447 5,657 41,530 107,112 147,442 418,397 518,027 370,918

U- 66

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.824 11.810 11.906 12.049 12.195 12.342 12.490 — — —
Value at End of Year 11.885 11.824 11.810 11.906 12.049 12.195 12.342 — — —
Venture No. of Units 466,854 524,505 670,914 785,242 682,771 388,478 172,238 — — —
NY Venture No. of Units 70,648 75,740 83,955 85,342 80,683 49,131 37,063 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.811 12.013 12.219 12.419 12.632
Value at End of Year — — — — — — 11.811 12.013 12.219 12.419
NY Venture No. of Units — — — — — — 114,653 141,386 157,999 107,322
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.315 11.342 11.473 11.653 11.835 12.019 12.206 — — —
Value at End of Year 11.334 11.315 11.342 11.473 11.653 11.835 12.019 — — —
NY Venture No. of Units 43,015 44,188 50,841 56,345 57,497 86,505 9,283 — — —
Ven 9, 8,7 Contracts with no Optional Riders      
Value at Start of Year — — — — — — — — 12.745 12.925
Value at End of Year — — — — — — — — 12.577 12.745
No. of Units — — — — — — — — 1,196 3,577
Natural Resources Trust (merged into Global Trust eff 11-07-14) - Series II Shares (units first credited 05-05-2003)  
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.573 11.376 11.483 14.588 12.846
Value at End of Year — — — — — — 11.573 11.376 11.483 14.588
Venture No. of Units — — — — — — 214,936 423,692 425,564 450,336
NY Venture No. of Units — — — — — — 23,391 29,162 37,026 54,023
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — — — 13.027 12.786 — — —
Value at End of Year — — — — — — 13.027 — — —
Venture No. of Units — — — — — — 46,796 — — —
NY Venture No. of Units — — — — — — 1,304 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits      
Value at Start of Year — — — — — 34.886 34.380 34.790 44.309 39.116
Value at End of Year — — — — — — 34.886 34.380 34.790 44.309
Ven 22, 20 No. of Units — — — — — — 620,404 739,435 945,196 1,178,526
Ven 24 No. of Units — — — — — — 88,225 112,500 127,948 125,264
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — — — 34.150 33.722 34.193 43.636 38.598
Value at End of Year — — — — — — 34.150 33.722 34.193 43.636
No. of Units — — — — — — 14,675 29,423 36,905 44,414
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.266 11.113 11.257 14.352 12.682
Value at End of Year — — — — — — 11.266 11.113 11.257 14.352
No. of Units — — — — — — 22,177 31,182 38,651 38,553
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year — — — — — 11.396 11.225 — — —
Value at End of Year — — — — — — 11.396 — — —
No. of Units — — — — — — 4,977 — — —
Ven 24 Contracts with Payment Enhancement      
Value at Start of Year — — — — — 33.608 33.236 33.752 43.137 38.214
Value at End of Year — — — — — — 33.608 33.236 33.752 43.137
No. of Units — — — — — — 25,555 35,548 52,046 50,708
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 11.396 11.225 11.353 14.453 12.752
Value at End of Year — — — — — — 11.396 11.225 11.353 14.453
Venture No. of Units — — — — — — 140,859 201,899 220,964 278,605
NY Venture No. of Units — — — — — — 33,477 36,186 37,374 28,036
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — — — 12.999 12.785 — — —
Value at End of Year — — — — — — 12.999 — — —
Venture No. of Units — — — — — — 23,410 — — —
NY Venture No. of Units — — — — — — 486 — — —

U- 67

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 33.788 33.398 33.898 43.303 38.342
Value at End of Year — — — — — — 33.788 33.398 33.898 43.303
NY Venture No. of Units — — — — — — 4,165 4,965 4,902 2,847
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — — — 34.332 33.885 — — —
Value at End of Year — — — — — — 34.332 — — —
NY Venture No. of Units — — — — — — 697 — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — — — 34.886 34.380 34.790 44.309 39.116
Value at End of Year — — — — — — 34.886 34.380 34.790 44.309
Ven 9 No. of Units — — — — — — 13,082 20,794 25,682 30,483
No. of Units — — — — — — 73,829 103,880 121,848 156,756
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — 34.886 34.380 34.790 44.309 39.116
Value at End of Year — — — — — — 34.886 34.380 34.790 44.309
No. of Units — — — — — — 9,457 7,678 9,935 13,001
Opportunistic Fixed Income Trust (formerly Global Bond Trust) - Series I Shares (units first credited 03-18-1988)      
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 36.930 38.177 35.597 35.031 36.812 36.499 39.133 37.081 34.472 31.692
Value at End of Year 38.739 36.930 38.177 35.597 35.031 36.812 36.499 39.133 37.081 34.472
Ven 22, 20 No. of Units 216,040 242,901 283,653 336,832 349,355 401,779 461,896 543,646 631,328 743,101
Ven 24 No. of Units 5,853 5,159 5,571 5,483 3,540 4,480 4,718 6,266 9,240 14,118
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 22.810 23.628 22.075 21.767 22.920 22.771 24.463 23.227 21.635 19.931
Value at End of Year 23.880 22.810 23.628 22.075 21.767 22.920 22.771 24.463 23.227 21.635
No. of Units 8,475 8,909 10,728 11,837 12,450 12,721 12,598 13,026 15,422 17,438
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 22.672 23.520 22.007 21.733 22.918 22.803 24.534 23.330 21.764 20.079
Value at End of Year 23.699 22.672 23.520 22.007 21.733 22.918 22.803 24.534 23.330 21.764
No. of Units 3,378 5,119 5,526 6,525 7,783 9,971 11,886 15,909 28,493 50,527
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 36.930 38.177 35.597 35.031 36.812 36.499 39.133 37.081 34.472 31.692
Value at End of Year 38.739 36.930 38.177 35.597 35.031 36.812 36.499 39.133 37.081 34.472
Ven 7, 8 No. of Units 136,606 159,816 182,045 204,445 221,446 253,463 299,262 342,485 392,615 458,018
Ven 9 No. of Units 26,339 28,314 31,144 32,783 34,595 36,860 43,081 52,084 56,069 62,005
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 36.930 38.177 35.597 35.031 36.812 36.499 39.133 37.081 34.472 31.692
Value at End of Year 38.739 36.930 38.177 35.597 35.031 36.812 36.499 39.133 37.081 34.472
No. of Units 16,638 17,880 18,888 21,212 22,482 25,202 26,358 36,986 38,640 42,024
Opportunistic Fixed Income Trust (formerly Global Bond Trust) - Series II Shares (units first credited 05-13-2002)      
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)            
Value at Start of Year — — 16.587 16.303 17.131 16.968 18.195 17.233 16.015 14.711
Value at End of Year — — — 16.587 16.303 17.131 16.968 18.195 17.233 16.015
Venture No. of Units — — — 20 65,810 82,303 572,085 917,210 942,065 1,052,646
NY Venture No. of Units — — — — 3,800 15,730 49,554 60,252 66,772 75,572
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.816 12.183 11.343 11.132 11.680 11.551 12.368 — — —
Value at End of Year 12.410 11.816 12.183 11.343 11.132 11.680 11.551 — — —
Venture No. of Units 524,599 548,971 713,026 756,469 758,967 754,749 418,157 — — —
NY Venture No. of Units 35,625 34,372 43,475 44,579 49,059 48,810 10,572 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 22.188 22.969 21.471 21.156 22.286 22.129 23.789 22.588 21.044 19.378
Value at End of Year 23.210 22.188 22.969 21.471 21.156 22.286 22.129 23.789 22.588 21.044
Ven 22, 20 No. of Units 301,372 318,542 383,101 412,143 461,681 586,134 729,357 877,984 1,040,687 1,222,907
Ven 24 No. of Units 58,826 59,267 67,666 72,763 78,663 97,846 132,103 146,186 155,395 183,261
Ven 22, 20 Contracts with GEM
Value at Start of Year 21.461 22.261 20.851 20.587 21.729 21.619 23.288 22.157 20.683 19.085
Value at End of Year 22.405 21.461 22.261 20.851 20.587 21.729 21.619 23.288 22.157 20.683
No. of Units 24,335 22,725 28,848 28,041 28,914 30,601 35,637 50,300 58,907 61,856

 

U- 68

 

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — 16.518 17.775 16.895 15.755 14.523
Value at End of Year — — — — — — 16.518 17.775 16.895 15.755
No. of Units — — — — — — 16,142 18,619 18,608 23,981
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 16.796 17.378 16.237 15.991 16.836 16.709 17.954 — — —
Value at End of Year 17.579 16.796 17.378 16.237 15.991 16.836 16.709 — — —
No. of Units 5,801 7,165 8,201 8,112 8,578 12,700 2,953 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 20.932 21.745 20.398 20.170 21.321 21.245 22.919 21.839 20.417 18.867
Value at End of Year 21.820 20.932 21.745 20.398 20.170 21.321 21.245 22.919 21.839 20.417
No. of Units 39,679 44,329 53,886 54,835 66,474 71,003 77,088 104,666 117,639 153,923
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 15.991 16.836 16.709 17.954 17.039 15.866 14.603
Value at End of Year — — — — 15.991 16.836 16.709 17.954 17.039 15.866
Venture No. of Units — — — — 13,882 39,988 156,119 311,008 332,406 343,009
NY Venture No. of Units — — — — 14,007 15,896 40,605 65,768 69,464 77,522
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 11.673 12.060 11.251 11.064 11.631 11.526 12.366 — — —
Value at End of Year 12.236 11.673 12.060 11.251 11.064 11.631 11.526 — — —
Venture No. of Units 225,062 264,012 424,602 387,253 387,723 372,261 245,110 — — —
NY Venture No. of Units 31,366 32,776 42,928 64,064 46,364 49,475 34,914 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 21.369 23.041 21.944 20.505 18.939
Value at End of Year — — — — — — 21.369 23.041 21.944 20.505
NY Venture No. of Units — — — — — — 30,330 34,790 43,276 56,875
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 21.640 22.436 21.004 20.728 21.867 21.745 23.412 — — —
Value at End of Year 22.604 21.640 22.436 21.004 20.728 21.867 21.745 — — —
NY Venture No. of Units 8,304 9,187 12,456 13,284 16,565 25,615 1,844 — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — 21.471 21.156 22.286 22.129 23.789 22.588 21.044 19.378
Value at End of Year — — — 21.471 21.156 22.286 22.129 23.789 22.588 21.044
Ven 9 No. of Units — — — — 194 207 909 955 994 1,047
No. of Units — — — 17,215 17,215 17,215 17,215 17,215 17,215 17,215
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — — — — 23.789 22.588 21.044 19.378
Value at End of Year — — — — — — — 23.789 22.588 21.044
No. of Units — — — — — — — 285 285 286
PIMCO VIT All Asset Portfolio - Class M Shares (units first credited 05-03-2004)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 19.869 21.344 19.123 17.224 19.261 19.486 19.781 17.499 17.456 15.706
Value at End of Year 21.834 19.869 21.344 19.123 17.224 19.261 19.486 19.781 17.499 17.456
Ven 22, 20 No. of Units 166,196 179,349 246,569 282,644 331,972 447,337 548,896 670,949 642,551 635,543
Ven 24 No. of Units 17,658 17,925 18,867 21,321 28,602 37,160 69,097 70,649 74,796 61,560
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 19.294 20.769 18.644 16.827 18.855 19.113 19.441 17.233 17.224 15.529
Value at End of Year 21.160 19.294 20.769 18.644 16.827 18.855 19.113 19.441 17.233 17.224
No. of Units 961 979 1,007 1,018 10,927 11,297 5,060 14,191 25,358 17,353
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 18.874 20.347 18.293 16.535 18.555 18.838 19.190 17.036 17.053 15.397
Value at End of Year 20.669 18.874 20.347 18.293 16.535 18.555 18.838 19.190 17.036 17.053
No. of Units 4,675 8,146 10,607 12,173 18,608 21,746 23,315 20,771 22,778 41,722
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 19.869 21.344 19.123 17.224 19.261 19.486 19.781 17.499 17.456 15.706
Value at End of Year 21.834 19.869 21.344 19.123 17.224 19.261 19.486 19.781 17.499 17.456
Ven 9 No. of Units 4,962 5,291 5,486 5,797 5,659 6,826 8,481 6,712 7,814 8,976
No. of Units 25,975 32,480 37,807 47,116 61,577 92,203 105,702 95,939 95,831 82,732

 

U- 69

 

 

 

Venture Prior

                   
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 19.869 21.344 19.123 17.224 19.261 19.486 19.781 17.499 17.456 15.706
Value at End of Year 21.834 19.869 21.344 19.123 17.224 19.261 19.486 19.781 17.499 17.456
No. of Units 3,942 3,946 3,949 5,895 5,900 6,158 10,219 12,416 12,711 12,345
Real Estate Securities Trust - Series I Shares (units first credited 01-01-1997)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — 16.175 12.500 — —
Value at End of Year — — — — — — — 16.175 — —
Venture No. of Units — — — — — — — 15 — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 52.850 55.523 52.999 50.267 49.647 38.219 38.798 33.556 31.086 24.400
Value at End of Year 67.439 52.850 55.523 52.999 50.267 49.647 38.219 38.798 33.556 31.086
Ven 22, 20 No. of Units 213,766 243,583 283,192 322,631 356,541 468,728 472,357 541,332 627,133 765,426
Ven 24 No. of Units 5,026 5,297 8,109 8,823 9,655 10,914 13,090 13,843 15,442 19,479
Ven 22, 20 Contracts with GEM
Value at Start of Year 46.545 48.997 46.863 44.536 44.075 33.998 34.581 29.969 27.819 21.879
Value at End of Year 59.274 46.545 48.997 46.863 44.536 44.075 33.998 34.581 29.969 27.819
No. of Units 4,365 4,483 5,543 5,682 5,901 7,828 9,253 10,286 13,525 15,495
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 48.675 51.317 49.155 46.785 46.370 35.821 36.491 31.672 29.443 23.191
Value at End of Year 61.894 48.675 51.317 49.155 46.785 46.370 35.821 36.491 31.672 29.443
No. of Units 6,889 8,131 9,095 10,214 10,937 12,559 17,017 19,850 23,816 35,614
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 52.850 55.523 52.999 50.267 49.647 38.219 38.798 33.556 31.086 24.400
Value at End of Year 67.439 52.850 55.523 52.999 50.267 49.647 38.219 38.798 33.556 31.086
Ven 7, 8 No. of Units 47,601 48,848 58,170 65,226 70,741 83,154 90,392 100,640 122,714 140,109
Ven 9 No. of Units 12,853 14,258 16,861 18,372 19,109 25,236 27,558 29,265 33,483 40,276
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 52.850 55.523 52.999 50.267 49.647 38.219 38.798 33.556 31.086 24.400
Value at End of Year 67.439 52.850 55.523 52.999 50.267 49.647 38.219 38.798 33.556 31.086
No. of Units 7,098 7,519 7,649 7,944 8,696 8,853 9,999 7,667 9,146 9,837
Real Estate Securities Trust - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 20.712 20.447 15.726 15.968 13.796 12.776 10.028
Value at End of Year — — — — 20.712 20.447 15.726 15.968 13.796 12.776
Venture No. of Units — — — — 31,581 58,493 142,623 180,938 185,937 231,709
NY Venture No. of Units — — — — 2,929 8,556 15,395 15,978 16,603 23,922
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 17.695 18.550 17.666 16.724 16.486 12.660 12.836 — — —
Value at End of Year 22.615 17.695 18.550 17.666 16.724 16.486 12.660 — — —
Venture No. of Units 56,909 64,887 77,879 92,911 80,654 69,309 27,710 — — —
NY Venture No. of Units 5,136 6,225 7,347 8,588 6,002 4,745 243 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 42.585 44.821 42.855 40.733 40.314 31.083 31.641 27.406 25.442 20.020
Value at End of Year 54.206 42.585 44.821 42.855 40.733 40.314 31.083 31.641 27.406 25.442
Ven 22, 20 No. of Units 138,415 149,080 183,317 215,621 224,979 275,860 316,343 403,024 490,468 589,120
Ven 24 No. of Units 22,593 22,381 32,413 39,249 41,438 43,099 76,948 95,680 70,091 94,538
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 41.190 43.441 41.618 39.637 39.307 30.367 30.974 26.883 25.006 19.716
Value at End of Year 52.326 41.190 43.441 41.618 39.637 39.307 30.367 30.974 26.883 25.006
No. of Units 4,331 4,467 5,683 6,803 7,375 11,226 11,720 13,798 20,776 22,012
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 15.309 15.599 13.525 12.568 9.900
Value at End of Year — — — — — — 15.309 15.599 13.525 12.568
No. of Units — — — — — — 17,051 19,767 20,747 22,372
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 21.270 22.376 21.384 20.315 20.095 15.486 15.756 — — —
Value at End of Year 27.088 21.270 22.376 21.384 20.315 20.095 15.486 — — —
No. of Units 6,047 6,605 7,714 13,099 11,600 23,527 4,234 — — —

 

U- 70

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 40.175 42.433 40.714 38.834 38.568 29.841 30.483 26.497 24.683 19.491
Value at End of Year 50.959 40.175 42.433 40.714 38.834 38.568 29.841 30.483 26.497 24.683
No. of Units 23,658 28,898 33,032 36,783 53,027 51,357 54,825 58,241 75,052 94,836
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 20.315 20.095 15.486 15.756 13.641 12.657 9.955
Value at End of Year — — — — 20.315 20.095 15.486 15.756 13.641 12.657
Venture No. of Units — — — — 17,117 57,053 90,619 112,737 125,215 152,957
NY Venture No. of Units — — — — 221 2,535 3,805 7,859 8,541 8,982
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 17.482 18.363 17.523 16.622 16.418 12.633 12.834 — — —
Value at End of Year 22.297 17.482 18.363 17.523 16.622 16.418 12.633 — — —
Venture No. of Units 65,207 77,346 87,916 110,707 97,742 57,118 20,343 — — —
NY Venture No. of Units 5,984 6,167 6,467 6,580 6,478 5,457 4,918 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 30.016 30.646 26.625 24.790 19.566
Value at End of Year — — — — — — 30.016 30.646 26.625 24.790
NY Venture No. of Units — — — — — — 7,622 9,292 10,374 12,945
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 41.535 43.782 41.924 39.908 39.556 30.545 31.139 — — —
Value at End of Year 52.790 41.535 43.782 41.924 39.908 39.556 30.545 — — —
NY Venture No. of Units 3,474 3,498 3,551 3,817 5,069 6,054 1,088 — — —
Real Return Bond Trust (merged into Bond Trust eff 04-28-2016) - Series II Shares (units first credited 05-05-2003)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — 17.165 17.964 17.427 19.512 18.225 16.521 15.417
Value at End of Year — — — — 17.165 17.964 17.427 19.512 18.225 16.521
Ven 22, 20 No. of Units — — — — 530,518 629,143 741,406 1,101,920 1,234,688 1,398,382
Ven 24 No. of Units — — — — 63,916 80,056 98,005 136,685 144,291 185,723
Ven 22, 20 Contracts with GEM                    
Value at Start of Year — — — 16.735 17.550 17.060 19.139 17.912 16.270 15.213
Value at End of Year — — — — 16.735 17.550 17.060 19.139 17.912 16.270
No. of Units — — — — 24,739 28,966 36,424 47,863 59,319 65,908
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — 16.420 17.246 16.789 18.863 17.681 16.084 15.062
Value at End of Year — — — — 16.420 17.246 16.789 18.863 17.681 16.084
No. of Units — — — — 37,734 49,250 58,355 103,045 118,126 149,884
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — — 17.165 17.964 17.427 19.512 18.225 16.521 15.417
Value at End of Year — — — — 17.165 17.964 17.427 19.512 18.225 16.521
Ven 9 No. of Units — — — — 16,003 19,704 22,374 31,684 33,118 34,692
No. of Units — — — — 52,193 66,899 84,631 147,406 146,440 162,826
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year — — — 17.165 17.964 17.427 19.512 18.225 16.521 15.417
Value at End of Year — — — — 17.165 17.964 17.427 19.512 18.225 16.521
No. of Units — — — — 8,896 5,941 6,442 15,217 18,653 13,028
Science & Technology Trust - Series I Shares (units first credited 01-01-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 39.754 40.565 29.146 27.270 25.920 23.284 16.451 15.106 16.605 4.014
Value at End of Year 54.120 39.754 40.565 29.146 27.270 25.920 23.284 16.451 15.106 16.605
Ven 22, 20 No. of Units 1,093,048 1,259,714 1,418,577 1,594,346 1,846,664 2,096,722 2,450,497 2,776,497 3,175,726 3,750,607
Ven 24 No. of Units 40,771 44,511 50,831 57,536 68,256 77,418 91,935 100,523 118,599 158,880
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 17.197 17.584 12.659 11.868 11.303 10.174 7.203 6.627 7.299 5.952
Value at End of Year 23.365 17.197 17.584 12.659 11.868 11.303 10.174 7.203 6.627 7.299
No. of Units 24,825 25,332 25,838 28,346 32,454 35,223 32,142 34,213 41,919 71,447
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 13.399 13.721 9.893 9.288 8.860 7.986 5.662 5.218 5.756 4.700
Value at End of Year 18.178 13.399 13.721 9.893 9.288 8.860 7.986 5.662 5.218 5.756
No. of Units 55,249 58,607 53,639 62,682 72,039 93,522 107,342 126,246 166,661 228,637

 

U- 71

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 39.754 40.565 29.146 27.270 25.920 23.284 16.451 15.106 16.605 13.512
Value at End of Year 54.120 39.754 40.565 29.146 27.270 25.920 23.284 16.451 15.106 16.605
Ven 7, 8 No. of Units 178,233 191,984 219,071 222,535 249,337 280,398 301,309 359,520 404,304 475,792
Ven 9 No. of Units 70,509 80,420 87,399 112,838 127,496 136,213 145,235 165,533 194,136 233,521
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 39.754 40.565 29.146 27.270 25.920 23.284 16.451 15.106 16.605 13.512
Value at End of Year 54.120 39.754 40.565 29.146 27.270 25.920 23.284 16.451 15.106 16.605
No. of Units 27,038 27,609 27,861 30,495 32,558 35,519 37,085 38,295 39,720 46,749
Science & Technology Trust - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 26.889 25.542 22.926 16.188 14.856 16.330 13.280
Value at End of Year — — — — 26.889 25.542 22.926 16.188 14.856 16.330
Venture No. of Units — — — — 28,738 45,028 70,793 87,662 95,954 121,703
NY Venture No. of Units — — — — 330 1,609 2,893 4,161 4,470 7,094
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 31.153 31.716 22.749 21.245 20.150 18.059 12.732 — — —
Value at End of Year 42.484 31.153 31.716 22.749 21.245 20.150 18.059 — — —
Venture No. of Units 41,459 50,486 60,381 60,930 53,802 37,265 17,589 — — —
NY Venture No. of Units 1,944 3,021 3,195 3,563 3,504 2,214 1,026 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 43.095 44.051 31.723 29.744 28.325 25.487 18.041 16.599 18.291 14.912
Value at End of Year 58.535 43.095 44.051 31.723 29.744 28.325 25.487 18.041 16.599 18.291
Ven 22, 20 No. of Units 249,038 257,183 297,061 288,851 333,196 391,273 430,239 524,806 657,441 805,632
Ven 24 No. of Units 74,107 82,271 103,877 102,628 102,795 84,486 85,724 122,577 115,574 179,369
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 41.684 42.694 30.807 28.944 27.617 24.900 17.661 16.282 17.978 14.686
Value at End of Year 56.505 41.684 42.694 30.807 28.944 27.617 24.900 17.661 16.282 17.978
No. of Units 9,794 10,625 10,639 11,221 10,671 12,791 13,654 15,608 20,338 31,668
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — 24.778 22.318 15.814 14.564 16.065 13.111
Value at End of Year — — — — — 24.778 22.318 15.814 14.564 16.065
No. of Units — — — — — 537 5,887 8,969 8,845 9,028
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 38.269 39.098 28.142 26.374 25.103 22.577 15.973 — — —
Value at End of Year 52.006 38.269 39.098 28.142 26.374 25.103 22.577 — — —
No. of Units 2,870 3,388 3,671 4,313 3,623 4,972 319 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 40.656 41.704 30.138 28.357 27.098 24.469 17.381 16.048 17.746 14.519
Value at End of Year 55.029 40.656 41.704 30.138 28.357 27.098 24.469 17.381 16.048 17.746
No. of Units 30,405 28,210 36,442 36,898 42,710 29,337 33,826 45,978 50,475 60,439
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 26.374 25.103 22.577 15.973 14.689 16.178 13.183
Value at End of Year — — — — 26.374 25.103 22.577 15.973 14.689 16.178
Venture No. of Units — — — — 5,092 30,026 50,547 53,356 82,434 148,216
NY Venture No. of Units — — — — 555 639 4,841 8,131 7,923 7,642
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 30.777 31.396 22.565 21.115 20.067 18.021 12.731 — — —
Value at End of Year 41.887 30.777 31.396 22.565 21.115 20.067 18.021 — — —
Venture No. of Units 17,613 24,221 20,628 24,004 21,760 20,487 8,468 — — —
NY Venture No. of Units 9,660 6,545 4,277 4,495 3,857 4,669 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 24.612 17.474 16.126 17.823 14.574
Value at End of Year — — — — — — 24.612 17.474 16.126 17.823
NY Venture No. of Units — — — — — — 12,664 13,788 14,355 12,376
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 42.032 43.029 31.033 29.142 27.792 25.046 17.755 — — —
Value at End of Year 57.006 42.032 43.029 31.033 29.142 27.792 25.046 — — —
NY Venture No. of Units 1,455 3,315 5,009 7,366 12,063 16,086 747 — — —

 

U- 72

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 43.095 44.051 31.723 29.744 28.325 25.487 18.041 16.599 18.291 14.912
Value at End of Year 58.535 43.095 44.051 31.723 29.744 28.325 25.487 18.041 16.599 18.291
Ven 9 No. of Units 144 149 154 159 165 170 175 180 185 191
Short Term Government Income Trust - Series I Shares (units first credited 05-03-2010)
Ven 24, 22, 20 Contracts with no Optional Benefits                
Value at Start of Year 12.071 12.141 12.242 12.344 12.438 12.470 12.757 12.783 12.613 12.500
Value at End of Year 12.307 12.071 12.141 12.242 12.344 12.438 12.470 12.757 12.783 12.613
Ven 22, 20 No. of Units 797,854 895,592 945,678 986,927 1,042,432 1,182,053 1,534,492 1,641,747 1,914,364 2,303,924
Ven 24 No. of Units 21,220 25,446 27,708 33,193 34,333 37,262 49,369 67,653 74,830 93,268
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 11.864 11.956 12.080 12.205 12.322 12.379 12.689 12.740 12.596 12.500
Value at End of Year 12.071 11.864 11.956 12.080 12.205 12.322 12.379 12.689 12.740 12.596
No. of Units 5,086 5,820 6,813 7,701 12,636 12,753 15,060 23,600 26,166 28,935
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 11.710 11.819 11.959 12.101 12.236 12.311 12.638 12.708 12.584 12.500
Value at End of Year 11.897 11.710 11.819 11.959 12.101 12.236 12.311 12.638 12.708 12.584
No. of Units 65,090 71,562 78,532 51,092 55,890 76,961 98,995 127,807 151,694 213,029
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 12.071 12.141 12.242 12.344 12.438 12.470 12.757 12.783 12.613 12.500
Value at End of Year 12.307 12.071 12.141 12.242 12.344 12.438 12.470 12.757 12.783 12.613
Ven 7, 8 No. of Units 322,374 345,412 380,635 425,552 500,235 572,327 643,035 806,645 945,848 1,152,373
Ven 9 No. of Units 86,250 98,330 106,887 142,403 148,438 167,130 196,853 420,085 444,292 494,189
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 12.071 12.141 12.242 12.344 12.438 12.470 12.757 12.783 12.613 12.500
Value at End of Year 12.307 12.071 12.141 12.242 12.344 12.438 12.470 12.757 12.783 12.613
No. of Units 72,556 76,158 81,907 83,457 92,483 94,416 89,814 88,395 120,205 122,302
Short Term Government Income Trust - Series II Shares (units first credited 05-03-2010)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 12.371 12.469 12.495 12.775 12.795 12.619 12.500
Value at End of Year — — — — 12.371 12.469 12.495 12.775 12.795 12.619
Venture No. of Units — — — — 57,324 131,757 202,780 232,365 247,867 289,010
NY Venture No. of Units — — — — 2,884 3,997 5,187 6,750 7,330 5,174
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.945 11.990 12.065 12.132 12.210 12.217 12.472 — — —
Value at End of Year 12.203 11.945 11.990 12.065 12.132 12.210 12.217 — — —
Venture No. of Units 95,027 104,108 189,481 230,802 147,688 100,516 14,965 — — —
NY Venture No. of Units 981 2,653 2,770 3,010 198 — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 11.866 11.958 12.081 12.196 12.324 12.381 12.690 12.742 12.598 12.500
Value at End of Year 12.073 11.866 11.958 12.081 12.196 12.324 12.381 12.690 12.742 12.598
Ven 22, 20 No. of Units 300,563 341,365 253,160 322,849 316,189 354,798 366,059 420,128 505,042 747,829
Ven 24 No. of Units 53,118 60,264 68,992 80,176 79,253 102,477 101,292 135,792 138,678 232,679
Ven 22, 20 Contracts with GEM
Value at Start of Year 11.661 11.776 11.921 12.059 12.209 12.290 12.622 12.699 12.581 12.500
Value at End of Year 11.841 11.661 11.776 11.921 12.059 12.209 12.290 12.622 12.699 12.581
No. of Units 6,842 6,158 10,344 19,228 20,217 18,726 20,726 24,239 36,364 77,568
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)          
Value at Start of Year — — — — — 12.335 12.656 12.720 12.589 12.500
Value at End of Year — — — — — — 12.335 12.656 12.720 12.589
No. of Units — — — — — — 15,119 18,232 20,063 20,239
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)          
Value at Start of Year 11.917 12.004 12.122 12.231 12.353 12.403 12.707 — — —
Value at End of Year 12.131 11.917 12.004 12.122 12.231 12.353 12.403 — — —
No. of Units 855 26,998 14,195 4,357 11,635 11,864 636 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 11.511 11.641 11.802 11.957 12.124 12.223 12.572 12.667 12.568 12.500
Value at End of Year 11.671 11.511 11.641 11.802 11.957 12.124 12.223 12.572 12.667 12.568
No. of Units 59,613 85,240 64,928 75,154 96,700 102,889 134,051 273,411 330,164 386,663

 

U- 73

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)          
Value at Start of Year — — — 12.231 12.353 12.403 12.707 12.752 12.602 12.500
Value at End of Year — — — — 12.231 12.353 12.403 12.707 12.752 12.602
Venture No. of Units — — — — 8,385 18,495 32,003 200,929 225,986 240,402
NY Venture No. of Units — — — — 4,856 7,372 119,005 14,163 13,678 107,752
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)        
Value at Start of Year 11.801 11.869 11.968 12.058 12.159 12.191 12.470 — — —
Value at End of Year 12.031 11.801 11.869 11.968 12.058 12.159 12.191 — — —
Venture No. of Units 7,383 14,811 17,506 16,911 23,230 14,132 96,397 — — —
NY Venture No. of Units 17,977 17,775 14,343 9,696 7,280 7,468 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)    
Value at Start of Year — — — — — 12.245 12.589 12.678 12.572 12.500
Value at End of Year — — — — — — 12.245 12.589 12.678 12.572
NY Venture No. of Units — — — — — — 4,722 4,531 2,726 4,692
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)    
Value at Start of Year 11.712 11.821 11.961 12.093 12.238 12.500 — — — —
Value at End of Year — 11.712 11.821 11.961 12.093 12.238 — — — —
NY Venture No. of Units — 1,722 2,092 2,118 3,999 4,716 — — — —
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year — — 12.081 12.196 12.324 12.381 12.690 12.742 12.598 12.500
Value at End of Year — — — 12.081 12.196 12.324 12.381 12.690 12.742 12.598
No. of Units — — — 21,957 21,957 21,957 21,957 21,957 21,957 21,957
Small Cap Index Trust - Series I Shares (units first credited 05-01-2000)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 29.290 33.537 29.731 24.922 26.486 25.681 18.787 16.411 17.427 13.985
Value at End of Year 36.116 29.290 33.537 29.731 24.922 26.486 25.681 18.787 16.411 17.427
Ven 22, 20 No. of Units 134,983 166,025 172,932 204,221 198,899 243,178 281,612 295,582 350,477 413,505
Ven 24 No. of Units 911 1,245 1,385 1,995 3,419 4,406 4,726 5,008 5,084 5,683
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 29.055 33.335 29.611 24.871 26.485 25.731 18.862 16.510 17.566 14.125
Value at End of Year 35.755 29.055 33.335 29.611 24.871 26.485 25.731 18.862 16.510 17.566
No. of Units 1,468 1,513 1,514 1,536 1,586 1,597 1,549 1,740 2,015 2,721
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 28.323 32.544 28.951 24.354 25.973 25.272 18.553 16.263 17.330 13.956
Value at End of Year 34.801 28.323 32.544 28.951 24.354 25.973 25.272 18.553 16.263 17.330
No. of Units 929 1,106 1,156 1,291 1,917 5,924 6,766 8,489 17,863 24,787
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 29.290 33.537 29.731 24.922 26.486 25.681 18.787 16.411 17.427 13.985
Value at End of Year 36.116 29.290 33.537 29.731 24.922 26.486 25.681 18.787 16.411 17.427
Ven 7, 8 No. of Units 19,374 23,347 24,302 27,264 28,244 26,119 31,754 36,625 47,517 51,696
Ven 9 No. of Units 2,340 2,378 3,186 3,303 6,110 7,444 4,469 4,473 3,116 5,476
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 29.290 33.537 29.731 24.922 26.486 25.681 18.787 16.411 17.427 13.985
Value at End of Year 36.116 29.290 33.537 29.731 24.922 26.486 25.681 18.787 16.411 17.427
No. of Units 2,654 2,654 2,654 2,654 2,654 3,565 3,574 3,616 4,161 4,217
Small Cap Index Trust - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.788 15.746 13.928 12.500 — — — — — —
Value at End of Year 17.032 13.788 15.746 13.928 — — — — — —
Venture No. of Units 3,336 3,412 3,217 1,155 — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 29.991 34.388 30.541 25.659 27.331 26.547 19.460 17.040 18.121 14.573
Value at End of Year 36.901 29.991 34.388 30.541 25.659 27.331 26.547 19.460 17.040 18.121
Ven 22, 20 No. of Units 89,207 97,335 109,029 142,214 134,246 219,028 267,898 334,421 355,805 404,971
Ven 24 No. of Units 36,998 39,445 42,637 45,713 48,538 50,033 70,043 74,568 77,877 88,308
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 29.009 33.329 29.659 24.968 26.649 25.936 19.050 16.714 17.810 14.352
Value at End of Year 35.621 29.009 33.329 29.659 24.968 26.649 25.936 19.050 16.714 17.810
No. of Units 2,154 2,393 6,120 6,018 6,151 6,671 7,210 6,114 26,138 12,719

  

U- 74

 

 

Venture Prior 

                     
  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 28.293 32.556 29.015 24.462 26.148 25.487 18.748 16.474 17.581 14.188
Value at End of Year 34.691 28.293 32.556 29.015 24.462 26.148 25.487 18.748 16.474 17.581
No. of Units 13,558 14,367 15,732 21,638 15,125 17,221 37,140 26,060 31,217 37,374
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.727 15.708 13.923 12.500 — — — — — —
Value at End of Year — 13.727 15.708 13.923 — — — — — —
Venture No. of Units — 2,444 2,283 2,238 — — — — — —
Small Cap Opportunities Trust - Series I Shares (units first credited 05-01-2005)
Ven 24, 21, 20 Contracts with no Optional Benefits
Value at Start of Year 34.229 40.293 36.786 31.226 33.391 33.074 23.930 20.771 21.751 17.010
Value at End of Year 42.373 34.229 40.293 36.786 31.226 33.391 33.074 23.930 20.771 21.751
Ven 22, 20 No. of Units 420,451 477,548 546,057 619,065 729,858 836,713 998,155 470,977 559,734 735,539
Ven 24 No. of Units 13,409 15,583 19,141 20,707 22,823 23,743 29,687 15,561 15,721 35,342
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 33.173 39.129 35.794 30.445 32.621 32.376 23.472 20.414 21.420 16.785
Value at End of Year 40.984 33.173 39.129 35.794 30.445 32.621 32.376 23.472 20.414 21.420
No. of Units 2,861 4,943 5,107 4,969 5,910 5,178 5,179 2,101 2,391 2,480
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 32.403 38.278 35.068 29.872 32.055 31.862 23.134 20.150 21.175 16.618
Value at End of Year 39.971 32.403 38.278 35.068 29.872 32.055 31.862 23.134 20.150 21.175
No. of Units 7,202 10,272 12,446 13,184 14,636 17,333 22,952 12,420 15,646 21,116
Ven 9, 8,7 Contracts with no Optional Riders                  
Value at Start of Year 34.229 40.293 36.786 31.226 33.391 33.074 23.930 20.771 21.751 17.010
Value at End of Year 42.373 34.229 40.293 36.786 31.226 33.391 33.074 23.930 20.771 21.751
Ven 7, 8 No. of Units 52,799 62,307 69,385 82,063 91,022 111,406 132,536 50,006 60,018 76,170
Ven 9 No. of Units 31,080 38,137 39,901 43,390 47,407 50,891 57,519 19,050 19,808 25,863
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 34.229 40.293 36.786 31.226 33.391 33.074 23.930 20.771 21.751 17.010
Value at End of Year 42.373 34.229 40.293 36.786 31.226 33.391 33.074 23.930 20.771 21.751
No. of Units 5,348 6,983 6,907 7,066 8,068 11,892 13,185 2,826 7,028 27,771
Small Cap Opportunities Trust - Series II Shares (units first credited 05-05-2003)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 15.505 16.570 16.412 11.865 10.293 10.769 8.423
Value at End of Year — — — — 15.505 16.570 16.412 11.865 10.293 10.769
Venture No. of Units — — — — 17,708 27,997 54,941 83,889 90,255 106,366
NY Venture No. of Units — — — — — 1,996 1,074 1,596 4,368 6,096
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.650 21.911 19.961 16.908 18.041 17.843 12.880 — — —
Value at End of Year 23.128 18.650 21.911 19.961 16.908 18.041 17.843 — — —
Venture No. of Units 14,591 20,030 23,315 31,449 21,804 30,198 16,483 — — —
NY Venture No. of Units 1,189 1,218 2,414 2,890 3,019 1,346 381 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits                
Value at Start of Year 33.308 39.289 35.936 30.561 32.741 32.510 23.561 20.491 21.494 16.852
Value at End of Year 41.140 33.308 39.289 35.936 30.561 32.741 32.510 23.561 20.491 21.494
Ven 22, 20 No. of Units 171,403 190,826 209,745 237,048 269,669 322,264 394,144 296,630 336,442 406,610
Ven 24 No. of Units 101,988 121,659 119,998 121,782 121,294 119,912 126,519 111,852 115,265 134,159
Ven 22, 20 Contracts with GEM                    
Value at Start of Year 32.280 38.153 34.967 29.796 31.986 31.824 23.110 20.139 21.167 16.629
Value at End of Year 39.791 32.280 38.153 34.967 29.796 31.986 31.824 23.110 20.139 21.167
No. of Units 26,436 26,910 27,900 29,918 30,597 33,580 38,877 30,284 32,689 31,340
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 15.977 11.591 10.090 10.595 8.315
Value at End of Year — — — — — — 15.977 11.591 10.090 10.595
No. of Units — — — — — — 988 2,595 2,836 2,785
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 16.600 19.571 17.892 15.208 16.285 16.162 11.707 — — —
Value at End of Year 20.514 16.600 19.571 17.892 15.208 16.285 16.162 — — —
No. of Units 1,034 1,471 1,383 1,437 1,599 1,925 949 — — —

 

U- 75

 

 

Venture Prior

                   

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 31.530 37.323 34.258 29.235 31.431 31.319 22.777 19.879 20.925 9.723
Value at End of Year 38.808 31.530 37.323 34.258 29.235 31.431 31.319 22.777 19.879 20.925
No. of Units 7,696 9,351 11,219 13,988 19,096 21,926 30,448 24,520 30,752 35,578
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 15.208 16.285 16.162 11.707 10.176 10.669 8.361
Value at End of Year — — — — 15.208 16.285 16.162 11.707 10.176 10.669
Venture No. of Units — — — — 4,687 11,515 19,975 26,849 29,087 24,347
NY Venture No. of Units — — — — 16,323 800 1,073 1,729 1,725 1,719
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.425 21.690 19.800 16.804 17.967 17.805 12.878 — — —
Value at End of Year 22.803 18.425 21.690 19.800 16.804 17.967 17.805 — — —
Venture No. of Units 13,296 20,432 24,155 24,922 22,820 13,774 7,266 — — —
NY Venture No. of Units 1,112 1,157 1,076 1,016 1,096 375 356 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 31.486 22.888 19.965 21.005 16.518
Value at End of Year — — — — — — 31.486 22.888 19.965 21.005
NY Venture No. of Units — — — — — — 1,015 1,118 1,161 1,213
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 32.534 38.434 35.207 29.985 32.173 31.994 23.222 — — —
Value at End of Year 40.124 32.534 38.434 35.207 29.985 32.173 31.994 — — —
NY Venture No. of Units 59 59 56 53 969 1,012 56 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — — — 32.510 23.561 20.491 21.494 16.852
Value at End of Year — — — — — — 32.510 23.561 20.491 21.494
Ven 9 No. of Units — — — — — — 196 207 215 226

Small Cap Stock Trust (formerly Small Cap Growth Trust) - Series I Shares (units first credited 04-29-2005)

Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720 —
Value at End of Year 42.078 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 —
Ven 22, 20 No. of Units 157,609 191,732 199,826 176,295 234,002 205,818 292,492 259,435 281,775 —
Ven 24 No. of Units 2,268 4,823 4,169 4,540 4,727 6,767 7,529 7,821 8,554 —
Ven 22, 20 Contracts with GEM
Value at Start of Year 30.143 32.396 26.067 25.932 28.975 27.429 19.383 16.939 18.509 —
Value at End of Year 40.861 30.143 32.396 26.067 25.932 28.975 27.429 19.383 16.939 —
No. of Units 3,902 3,935 5,397 5,422 5,376 6,150 6,851 4,794 3,821 —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 29.531 31.786 25.615 25.521 28.558 27.075 19.161 16.770 18.353 —
Value at End of Year 39.971 29.531 31.786 25.615 25.521 28.558 27.075 19.161 16.770 —
No. of Units 3,913 4,214 2,486 2,373 3,432 3,433 3,839 5,117 7,190 —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720 —
Value at End of Year 42.078 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 —
Ven 7, 8 No. of Units 23,559 27,448 28,534 34,057 35,039 39,048 53,302 48,643 51,001 —
Ven 9 No. of Units 6,680 6,959 7,261 8,159 9,100 10,584 10,761 10,501 11,867 —
Ven 3 Contracts with no Optional Riders
Value at Start of Year 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720 —
Value at End of Year 42.078 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 —
No. of Units 3,829 2,808 9,041 9,224 9,378 10,117 11,512 13,028 12,930 —
Small Cap Stock Trust (formerly Small Cap Growth Trust) - Series II Shares (units first credited 04-29-2005)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — 19.224 19.039 21.177 19.957 14.040 12.214 13.286 11.043
Value at End of Year — — — 19.224 19.039 21.177 19.957 14.040 12.214 13.286
Venture No. of Units — — — 13 22,861 41,884 82,917 107,076 118,770 131,554
NY Venture No. of Units — — — — 1,798 3,823 5,117 7,595 11,662 12,087
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.825 22.246 17.794 17.596 19.543 18.389 12.917 — — —
Value at End of Year 28.399 20.825 22.246 17.794 17.596 19.543 18.389 — — —
Venture No. of Units 27,413 40,821 53,529 59,330 58,551 54,670 17,965 — — —
NY Venture No. of Units 1,763 2,031 2,317 3,090 3,300 1,607 909 — — —

 

U- 76

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720 15.598
Value at End of Year 42.078 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720
Ven 22, 20 No. of Units 100,470 108,253 97,967 121,684 126,572 90,537 151,479 166,568 213,343 461,784
Ven 24 No. of Units 10,519 11,631 23,566 24,976 25,548 29,824 35,503 35,747 35,039 32,581
Ven 22, 20 Contracts with GEM
Value at Start of Year 30.143 32.396 26.067 25.932 28.975 27.429 19.383 16.939 18.509 15.453
Value at End of Year 40.861 30.143 32.396 26.067 25.932 28.975 27.429 19.383 16.939 18.509
No. of Units 9,997 10,141 9,761 9,652 10,108 10,236 12,486 13,722 19,689 33,171
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 19.428 13.715 11.974 13.071 10.902
Value at End of Year — — — — — — 19.428 13.715 11.974 13.071
No. of Units — — — — — — 7,747 6,709 7,711 7,794
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 21.869 23.445 18.818 18.674 20.813 19.653 13.853 — — —
Value at End of Year 29.720 21.869 23.445 18.818 18.674 20.813 19.653 — — —
No. of Units 1,787 1,825 1,601 1,530 7,416 5,098 95 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 29.531 31.786 25.615 25.521 28.558 27.075 19.161 16.770 18.353 15.345
Value at End of Year 39.971 29.531 31.786 25.615 25.521 28.558 27.075 19.161 16.770 18.353
No. of Units 14,964 16,106 15,621 18,764 15,178 6,452 8,191 11,124 20,622 22,069
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 18.674 20.813 19.653 13.853 12.076 13.163 10.962
Value at End of Year — — — — 18.674 20.813 19.653 13.853 12.076 13.163
Venture No. of Units — — — — 8,737 67,754 76,756 94,939 102,125 103,793
NY Venture No. of Units — — — — 939 2,188 8,349 10,252 9,724 9,786
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 20.573 22.022 17.650 17.488 19.462 18.350 12.916 — — —
Value at End of Year 28.000 20.573 22.022 17.650 17.488 19.462 18.350 — — —
Venture No. of Units 26,513 26,814 35,792 39,987 40,492 19,356 19,414 — — —
NY Venture No. of Units 10,038 10,078 14,225 16,417 16,293 16,889 5,232 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 27.192 19.235 16.826 18.405 15.381
Value at End of Year — — — — — — 27.192 19.235 16.826 18.405
NY Venture No. of Units — — — — — — 2,294 4,515 4,630 5,236
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 30.350 32.602 26.220 26.071 29.115 27.548 19.458 — — —
Value at End of Year 41.162 30.350 32.602 26.220 26.071 29.115 27.548 — — —
NY Venture No. of Units 76 114 122 135 562 3,425 1,276 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — — — — — — — 15.598
Value at End of Year — — — — — — — — — 18.720
Ven 9 No. of Units — — — — — — — — — 14,233
No. of Units — — — — — — — — — 53,174
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — — — — — — — — 15.598
Value at End of Year — — — — — — — — — 18.720
No. of Units — — — — — — — — — 12,193
Small Cap Value Trust - Series II Shares (units first credited 04-29-2005)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 23.091 23.730 22.444 17.070 14.950 14.996 12.046
Value at End of Year — — — — 23.091 23.730 22.444 17.070 14.950 14.996
Venture No. of Units — — — — 22,645 47,396 116,828 139,443 150,988 170,114
NY Venture No. of Units — — — — 3,711 5,113 10,132 22,067 23,062 24,621
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.815 21.760 21.236 17.516 17.975 16.975 12.891 — — —
Value at End of Year 23.534 18.815 21.760 21.236 17.516 17.975 16.975 — — —
Venture No. of Units 45,735 49,302 63,953 74,680 63,642 74,167 15,474 — — —
NY Venture No. of Units 1,350 1,810 2,078 6,699 3,023 6,467 1,091 — — —

 

U- 77

 

` 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272 14.714
Value at End of Year 36.735 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272
Ven 22, 20 No. of Units 208,288 235,571 299,364 339,020 347,254 395,270 468,182 528,416 596,108 678,366
Ven 24 No. of Units 19,325 20,321 21,362 26,434 26,304 23,622 34,005 38,007 44,860 43,183
Ven 22, 20 Contracts with GEM
Value at Start of Year 28.693 33.384 32.775 27.197 28.077 26.674 20.379 17.929 18.066 14.577
Value at End of Year 35.673 28.693 33.384 32.775 27.197 28.077 26.674 20.379 17.929 18.066
No. of Units 3,452 3,565 4,541 4,584 5,165 7,304 8,205 10,096 10,908 18,206
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 21.849 16.675 14.656 14.753 11.892
Value at End of Year — — — — — — 21.849 16.675 14.656 14.753
No. of Units — — — — — — 7,720 13,396 14,200 15,310
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 24.073 27.939 27.361 22.648 23.322 22.102 16.843 — — —
Value at End of Year 30.005 24.073 27.939 27.361 22.648 23.322 22.102 — — —
No. of Units 834 870 1,016 1,310 3,181 6,196 4,173 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 28.110 32.756 32.206 26.766 27.672 26.330 20.145 17.751 17.913 14.475
Value at End of Year 34.896 28.110 32.756 32.206 26.766 27.672 26.330 20.145 17.751 17.913
No. of Units 20,420 21,223 21,435 25,366 20,147 32,087 38,291 23,299 26,730 35,117
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 22.648 23.322 22.102 16.843 14.782 14.857 11.958
Value at End of Year — — — — 22.648 23.322 22.102 16.843 14.782 14.857
Venture No. of Units — — — — 11,783 48,469 81,732 103,314 115,986 115,471
NY Venture No. of Units — — — — 543 12,227 6,319 7,495 8,061 8,036
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.588 21.541 21.064 17.409 17.900 16.938 12.889 — — —
Value at End of Year 23.203 18.588 21.541 21.064 17.409 17.900 16.938 — — —
Venture No. of Units 53,762 54,874 61,967 72,381 71,367 43,080 9,096 — — —
NY Venture No. of Units 5,089 5,270 5,672 5,753 5,326 5,358 415 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 26.444 20.223 17.810 17.963 14.509
Value at End of Year — — — — — — 26.444 20.223 17.810 17.963
NY Venture No. of Units — — — — — — 3,305 3,578 4,179 4,358
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 28.889 33.596 32.967 27.343 28.213 26.790 20.457 — — —
Value at End of Year 35.935 28.889 33.596 32.967 27.343 28.213 26.790 — — —
NY Venture No. of Units 548 556 553 534 2,223 2,764 99 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272 14.714
Value at End of Year 36.735 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272
Ven 9 No. of Units 10,535 12,063 14,486 15,889 17,972 19,384 16,905 21,018 29,745 34,788
No. of Units 33,479 40,529 48,320 58,488 63,384 68,487 72,243 76,176 95,627 105,428
Ven 3 Contracts with no Optional Riders
Value at Start of Year 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272 14.714
Value at End of Year 36.735 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272
No. of Units 2,455 2,733 9,956 15,605 15,819 15,749 16,426 17,125 19,365 16,207
Small Company Value Trust - Series I Shares (units first credited 10-01-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 41.155 47.944 43.607 33.421 35.903 36.369 28.023 24.438 25.014 20.902
Value at End of Year 50.942 41.155 47.944 43.607 33.421 35.903 36.369 28.023 24.438 25.014
Ven 22, 20 No. of Units 382,998 426,570 488,364 569,784 643,142 722,017 879,915 984,611 1,167,231 1,361,761
Ven 24 No. of Units 15,589 18,777 20,024 21,554 22,375 24,263 27,438 31,850 38,963 49,245
Ven 22, 20 Contracts with GEM
Value at Start of Year 39.380 45.968 41.894 32.172 34.631 35.151 27.139 23.714 24.321 20.364
Value at End of Year 48.648 39.380 45.968 41.894 32.172 34.631 35.151 27.139 23.714 24.321
No. of Units 3,028 3,479 3,597 3,795 4,270 7,274 9,571 10,080 14,526 19,147

 

U- 78

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 41.499 48.516 44.281 34.057 36.714 37.322 28.858 25.254 25.940 21.752
Value at End of Year 51.189 41.499 48.516 44.281 34.057 36.714 37.322 28.858 25.254 25.940
No. of Units 9,368 13,876 17,325 19,189 22,105 24,349 29,318 33,761 49,069 59,907
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 41.155 47.944 43.607 33.421 35.903 36.369 28.023 24.438 25.014 20.902
Value at End of Year 50.942 41.155 47.944 43.607 33.421 35.903 36.369 28.023 24.438 25.014
Ven 7, 8 No. of Units 64,218 73,299 82,388 96,190 101,173 119,621 146,333 161,633 197,848 234,017
Ven 9 No. of Units 17,931 20,770 23,123 25,113 27,128 30,352 39,553 45,697 56,564 62,123
Ven 3 Contracts with no Optional Riders
Value at Start of Year 41.155 47.944 43.607 33.421 35.903 36.369 28.023 24.438 25.014 20.902
Value at End of Year 50.942 41.155 47.944 43.607 33.421 35.903 36.369 28.023 24.438 25.014
No. of Units 6,079 6,308 8,033 11,956 12,698 16,236 21,895 24,966 28,559 27,232
Small Company Value Trust - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 17.753 19.062 19.306 14.861 12.948 13.257 11.068
Value at End of Year — — — — 17.753 19.062 19.306 14.861 12.948 13.257
Venture No. of Units — — — — 13,687 54,920 120,025 162,263 180,558 197,958
NY Venture No. of Units — — — — 203 1,400 6,061 9,130 15,847 16,481
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 19.229 22.349 20.289 15.519 16.639 16.826 12.933 — — —
Value at End of Year 23.838 19.229 22.349 20.289 15.519 16.639 16.826 — — —
Venture No. of Units 69,161 70,491 76,215 88,141 94,284 83,767 34,831 — — —
NY Venture No. of Units 727 819 1,012 2,065 1,804 2,650 1,572 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 33.689 39.314 35.833 27.519 29.622 30.076 23.210 20.273 20.808 17.417
Value at End of Year 41.598 33.689 39.314 35.833 27.519 29.622 30.076 23.210 20.273 20.808
Ven 22, 20 No. of Units 261,017 277,546 294,425 349,419 396,021 405,944 502,592 678,965 810,580 934,857
Ven 24 No. of Units 66,665 72,313 93,640 95,460 102,484 107,889 131,675 164,409 196,680 237,217
Ven 22, 20 Contracts with GEM
Value at Start of Year 32.586 38.103 34.799 26.778 28.882 29.384 22.722 19.886 20.451 17.152
Value at End of Year 40.156 32.586 38.103 34.799 26.778 28.882 29.384 22.722 19.886 20.451
No. of Units 26,371 27,968 27,410 32,869 32,895 32,634 34,331 37,328 42,946 47,687
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 18.794 14.518 12.694 13.041 10.927
Value at End of Year — — — — — — 18.794 14.518 12.694 13.041
No. of Units — — — — — — 3,805 8,103 9,430 10,474
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 21.349 24.901 22.684 17.412 18.734 19.011 14.664 — — —
Value at End of Year 26.374 21.349 24.901 22.684 17.412 18.734 19.011 — — —
No. of Units 1,456 1,451 1,418 2,692 3,171 4,682 2,495 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 31.783 37.220 34.042 26.235 28.340 28.875 22.362 19.601 20.188 16.957
Value at End of Year 39.107 31.783 37.220 34.042 26.235 28.340 28.875 22.362 19.601 20.188
No. of Units 39,189 45,013 53,986 71,913 68,841 97,022 114,329 132,804 147,736 172,635
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 17.412 18.734 19.011 14.664 12.802 13.133 10.987
Value at End of Year — — — — 17.412 18.734 19.011 14.664 12.802 13.133
Venture No. of Units — — — — 12,807 35,982 55,732 83,296 85,534 88,532
NY Venture No. of Units — — — — — — 17,673 23,212 23,217 23,292
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 18.997 22.124 20.124 15.424 16.570 16.790 12.932 — — —
Value at End of Year 23.503 18.997 22.124 20.124 15.424 16.570 16.790 — — —
Venture No. of Units 37,088 38,610 40,525 45,228 48,319 29,157 21,715 — — —
NY Venture No. of Units 497 497 497 497 497 19,493 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 29.044 22.481 19.695 20.275 17.022
Value at End of Year — — — — — — 29.044 22.481 19.695 20.275
NY Venture No. of Units — — — — — — 1,299 1,466 1,641 1,272

 

U- 79

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 32.859 38.402 35.054 26.961 29.065 29.555 22.843 — — —
Value at End of Year 40.512 32.859 38.402 35.054 26.961 29.065 29.555 — — —
NY Venture No. of Units 257 257 254 249 845 1,359 90 — — —
Smaller Company Growth Trust (merged into Small Cap Opportunities Trust eff 12-06-2013) - Series II Shares (units first credited 11-16-2009)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — — — — 16.887 14.766 16.152 13.119
Value at End of Year — — — — — — — 16.887 14.766 16.152
Ven 22, 20 No. of Units — — — — — — — 269,511 317,569 364,521
Ven 24 No. of Units — — — — — — — 73,881 82,044 108,040
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — — — — 16.781 14.704 16.116 13.116
Value at End of Year — — — — — — — 16.781 14.704 16.116
No. of Units — — — — — — — 17,556 25,096 26,845
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — — — — — 16.703 14.657 16.088 13.113
Value at End of Year — — — — — — — 16.703 14.657 16.088
No. of Units — — — — — — — 22,641 26,654 33,948
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — — — — — 16.887 14.766 16.152 13.119
Value at End of Year — — — — — — — 16.887 14.766 16.152
No. of Units — — — — — — — 151 151 151
Smaller Company Growth Trust (merged into Small Cap Opportunities Trust eff 12-06-2013) - Series I Shares (units first credited 11-16-2009)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — — — — 16.994 14.829 16.189 13.129
Value at End of Year — — — — — — — 16.994 14.829 16.189
Ven 22, 20 No. of Units — — — — — — — 938,204 1,077,510 1,332,808
Ven 24 No. of Units — — — — — — — 22,715 28,362 48,487
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — — — — 16.888 14.766 16.152 13.125
Value at End of Year — — — — — — — 16.888 14.766 16.152
No. of Units — — — — — — — 5,103 7,941 12,602
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — — — — — 16.809 14.719 16.125 13.123
Value at End of Year — — — — — — — 16.809 14.719 16.125
No. of Units — — — — — — — 18,842 20,157 26,093
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — — — — 16.994 14.829 16.189 13.129
Value at End of Year — — — — — — — 16.994 14.829 16.189
Ven 7, 8 No. of Units — — — — — — — 105,056 124,553 152,667
Ven 9 No. of Units — — — — — — — 58,738 69,661 81,760
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — — — — — 16.994 14.829 16.189 13.129
Value at End of Year — — — — — — — 16.994 14.829 16.189
No. of Units — — — — — — — 10,700 11,427 12,154
Strategic Income Opportunities Trust - Series I Shares (units first credited 11-08-2010)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 22.142 23.646 22.709 21.907 21.949 21.186 20.694 18.597 18.484 12.500
Value at End of Year 24.216 22.142 23.646 22.709 21.907 21.949 21.186 20.694 18.597 18.484
Ven 22, 20 No. of Units 488,187 543,113 620,578 702,700 793,361 878,569 1,027,024 1,225,927 1,424,937 1,745,334
Ven 24 No. of Units 4,513 7,751 8,235 9,911 11,906 13,210 17,542 23,359 32,823 40,376
Ven 22, 20 Contracts with GEM
Value at Start of Year 21.502 23.008 22.141 21.402 21.485 20.780 20.339 18.314 18.239 12.500
Value at End of Year 23.468 21.502 23.008 22.141 21.402 21.485 20.780 20.339 18.314 18.239
No. of Units 7,554 7,565 7,827 7,677 10,995 8,869 5,873 6,201 8,636 9,430
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 21.034 22.542 21.724 21.031 21.144 20.481 20.076 18.105 18.058 12.500
Value at End of Year 22.923 21.034 22.542 21.724 21.031 21.144 20.481 20.076 18.105 18.058
No. of Units 9,069 9,336 12,073 13,258 17,944 25,451 29,259 38,678 49,132 84,314

 

U- 80

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 22.142 23.646 22.709 21.907 21.949 21.186 20.694 18.597 18.484 12.500
Value at End of Year 24.216 22.142 23.646 22.709 21.907 21.949 21.186 20.694 18.597 18.484
Ven 7, 8 No. of Units 208,470 222,156 251,463 278,768 314,446 339,334 415,126 457,839 531,914 638,809
Ven 9 No. of Units 88,652 104,644 116,562 123,623 131,928 148,186 163,670 185,546 220,803 268,091
Ven 3 Contracts with no Optional Riders
Value at Start of Year 22.142 23.646 22.709 21.907 21.949 21.186 20.694 18.597 18.484 12.500
Value at End of Year 24.216 22.142 23.646 22.709 21.907 21.949 21.186 20.694 18.597 18.484
No. of Units 21,478 21,887 20,803 19,798 21,479 15,883 16,197 19,918 21,855 31,870

Strategic Income Opportunities Trust (formerly Strategic Income Trust) - Series II Shares (units first credited 05-03-2004)

Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 15.090 15.111 14.580 14.235 12.788 12.696 12.500
Value at End of Year — — — — 15.090 15.111 14.580 14.235 12.788 12.696
Venture No. of Units — — — — 32,259 62,278 114,559 157,052 172,387 219,158
NY Venture No. of Units — — — — 551 676 3,459 2,975 3,228 4,890
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.655 14.563 13.959 13.430 13.429 12.938 12.613 — — —
Value at End of Year 14.972 13.655 14.563 13.959 13.430 13.429 12.938 — — —
Venture No. of Units 75,572 67,897 70,859 78,270 65,260 61,654 14,265 — — —
NY Venture No. of Units 131 602 661 1,059 636 589 — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 21.777 23.319 22.442 21.678 21.763 21.051 20.605 18.557 18.469 16.213
Value at End of Year 23.783 21.777 23.319 22.442 21.678 21.763 21.051 20.605 18.557 18.469
Ven 22, 20 No. of Units 243,199 268,884 312,648 313,049 376,245 416,021 478,358 568,844 675,296 763,775
Ven 24 No. of Units 89,178 96,472 106,740 111,908 124,159 136,840 164,349 186,319 231,254 262,888
Ven 22, 20 Contracts with GEM
Value at Start of Year 21.148 22.690 21.880 21.178 21.304 20.648 20.251 18.274 18.225 16.030
Value at End of Year 23.049 21.148 22.690 21.880 21.178 21.304 20.648 20.251 18.274 18.225
No. of Units 9,609 12,262 12,584 12,686 14,315 8,956 14,860 21,398 36,284 40,231
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 14.420 14.128 12.737 12.689 12.500
Value at End of Year — — — — — — 14.420 14.128 12.737 12.689
No. of Units — — — — — — 5,465 7,067 7,602 8,265
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 15.026 16.081 15.469 14.935 14.986 14.488 14.174 — — —
Value at End of Year 16.418 15.026 16.081 15.469 14.935 14.986 14.488 — — —
No. of Units 1,381 4,906 4,975 5,231 5,620 6,908 1,368 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 20.687 22.230 21.468 20.811 20.966 20.350 19.989 18.066 18.043 15.895
Value at End of Year 22.514 20.687 22.230 21.468 20.811 20.966 20.350 19.989 18.066 18.043
No. of Units 21,623 25,684 27,992 34,340 49,282 60,146 76,591 104,386 120,560 163,571
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 14.935 14.986 14.488 14.174 12.759 12.692 12.500
Value at End of Year — — — — 14.935 14.986 14.488 14.174 12.759 12.692
Venture No. of Units — — — — 6,127 13,634 40,975 52,037 61,367 79,141
NY Venture No. of Units — — — — — — 3,116 3,641 4,251 6,042
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.490 14.416 13.846 13.348 13.374 12.910 12.611 — — —
Value at End of Year 14.762 13.490 14.416 13.846 13.348 13.374 12.910 — — —
Venture No. of Units 36,757 31,827 33,890 33,633 23,761 35,215 9,178 — — —
NY Venture No. of Units — 308 766 1,205 1,725 2,344 261 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 20.449 20.076 18.135 18.104 12.500
Value at End of Year — — — — — — 20.449 20.076 18.135 18.104
NY Venture No. of Units — — — — — — 1,668 4,368 4,384 4,398
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 21.303 22.846 22.019 21.302 21.418 12.500 — — — —
Value at End of Year 23.231 21.303 22.846 22.019 21.302 21.418 — — — —
NY Venture No. of Units 1,376 1,377 1,455 1,509 1,565 1,566 — — — —

 

U- 81

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 21.777 23.319 22.442 21.678 21.763 21.051 20.605 18.557 18.469 16.213
Value at End of Year 23.783 21.777 23.319 22.442 21.678 21.763 21.051 20.605 18.557 18.469
Ven 9 No. of Units 403 417 432 446 461 476 491 506 520 535
No. of Units — — — — — — — — 531,913 —
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — — — — — — — 16.213 —
Value at End of Year — — — — — — — — 18.597 —
No. of Units — — — — — — — — 21,855 —
Total Bond Market Trust A (merged into Total Bond Market Trust B eff 11-02-2012) - Series II Shares (units first credited 08-02-2010)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — — 13.122 12.424 12.500
Value at End of Year — — — — — — — — 13.122 12.424
Venture No. of Units — — — — — — — — 1,837,472 439,859
NY Venture No. of Units — — — — — — — — 66,962 53,592
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — — — — — 15.211 14.438 12.500
Value at End of Year — — — — — — — — 15.211 14.438
Ven 22, 20 No. of Units — — — — — — — — 470,536 105,962
Ven 24 No. of Units — — — — — — — — 30,322 1,559
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — — — — — 15.070 12.500 —
Value at End of Year — — — — — — — — 15.070 —
No. of Units — — — — — — — — 7,308 —
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — — 13.057 12.500 —
Value at End of Year — — — — — — — — 13.057 —
No. of Units — — — — — — — — 3,198 —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — — — — — — 14.965 14.254 12.500
Value at End of Year — — — — — — — — 14.965 14.254
No. of Units — — — — — — — — 45,495 5,926
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — — 13.085 12.414 12.500
Value at End of Year — — — — — — — — 13.085 12.414
Venture No. of Units — — — — — — — — 553,824 156,733
NY Venture No. of Units — — — — — — — — 28,284 —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — — — — — 15.211 14.438 12.500
Value at End of Year — — — — — — — — 15.211 14.438
Ven 9 No. of Units — — — — — — — — 2,504 —
No. of Units — — — — — — — — 11,306 453
Total Bond Market Trust (formerly Total Bond Market Trust B) - Series II Shares (units first credited 11-02-2012)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year 12.557 12.766 12.527 12.401 12.538 11.977 12.461 12.500 — —
Value at End of Year 13.409 12.557 12.766 12.527 12.401 12.538 11.977 12.461 — —
Venture No. of Units     70,189 202,059 418,826 785,993 1,079,968 2,411,597 — —
NY Venture No. of Units — — 13,286 20,023 22,859 28,463 48,483 84,498 — —
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.631 12.822 12.563 12.418 12.536 11.957 12.422 — — —
Value at End of Year 13.508 12.631 12.822 12.563 12.418 12.536 11.957 — — —
Venture No. of Units 872,533 900,145 893,552 1,118,112 524,814 216,507 61,669 — — —
NY Venture No. of Units 42,980 32,108 17,467 12,705 14,807 19,733 — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 12.365 12.602 12.397 12.303 12.470 11.942 12.456 12.500 — —
Value at End of Year 13.171 12.365 12.602 12.397 12.303 12.470 11.942 12.456 — —
Ven 22, 20 No. of Units 344,143 452,310 394,279 520,757 372,155 371,010 345,996 675,999 — —
Ven 24 No. of Units 66,931 34,844 34,741 35,404 39,906 30,505 34,510 51,717 — —

 

U- 82

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM
Value at Start of Year 12.213 12.473 12.295 12.226 12.416 11.914 12.452 12.500 — —
Value at End of Year 12.984 12.213 12.473 12.295 12.226 12.416 11.914 12.452 — —
No. of Units 14,799 14,869 17,402 16,741 14,348 14,415 14,479 465 — —
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.928 12.454 12.500 — —
Value at End of Year — — — — — — 11.928 12.454 — —
No. of Units — — — — — — 5,448 8,986 — —
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.403 12.635 12.423 12.323 12.484 11.949 12.457 — — —
Value at End of Year 13.218 12.403 12.635 12.423 12.323 12.484 11.949 — — —
No. of Units 2,574 2,774 3,071 3,285 9,438 11,029 1,703 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 12.101 12.377 12.218 12.168 12.376 11.893 12.449 12.500 — —
Value at End of Year 12.845 12.101 12.377 12.218 12.168 12.376 11.893 12.449 — —
No. of Units 19,218 10,766 26,923 16,497 11,710 16,904 14,006 38,460 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 12.635 12.423 12.323 12.484 11.949 12.457 12.500 — —
Value at End of Year — — 12.635 12.423 12.323 12.484 11.949 12.457 — —
Venture No. of Units — — 31,444 76,686 176,478 376,133 478,808 888,772 — —
NY Venture No. of Units — — 8,251 7,767 39,885 18,318 39,002 47,056 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.518 12.733 12.501 12.381 12.524 11.970 12.460 — — —
Value at End of Year 13.361 12.518 12.733 12.501 12.381 12.524 11.970 — — —
Venture No. of Units 298,681 366,323 374,037 374,886 253,703 108,552 62,265 — — —
NY Venture No. of Units 7,130 10,362 10,962 33,083 167,428 177,225 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.900 12.450 12.500 — —
Value at End of Year — — — — — — 11.900 12.450 — —
NY Venture No. of Units — — — — — — 1,913 1,660 — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 12.251 12.505 12.320 12.245 12.430 12.500 — — — —
Value at End of Year 13.030 12.251 12.505 12.320 12.245 12.430 — — — —
NY Venture No. of Units 577 528 1,297 1,347 1,425 2,388 — — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 12.365 12.602 12.397 12.303 12.470 11.942 12.456 12.500 — —
Value at End of Year 13.171 12.365 12.602 12.397 12.303 12.470 11.942 12.456 — —
Ven 9 No. of Units 6,663 1,206 1,222 1,237 917 680 882 3,251 — —
No. of Units 49,499 58,267 58,636 50,573 39,014 21,284 11,133 21,133 — —
Ven 3 Contracts with no Optional Riders
Value at Start of Year 12.365 12.602 12.397 12.500 — — — — — —
Value at End of Year 13.171 12.365 12.602 12.397 — — — — — —
No. of Units 3,566 3,564 3,792 2,967 — — — — — —
Total Return Trust (merged into Core Bond Trust eff 04-27-2015) - Series I Shares (units first credited 05-01-1999)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — — 18.570 12.500 — —
Value at End of Year — — — — — — — 18.570 — —
Venture No. of Units — — — — — — — 66 — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — — 24.106 23.340 24.160 22.586 22.041 20.764
Value at End of Year — — — — — 24.106 23.340 24.160 22.586 22.041
Ven 22, 20 No. of Units — — — — — 1,896,836 2,262,132 2,794,711 3,255,358 3,999,673
Ven 24 No. of Units — — — — — 96,470 111,795 143,326 168,544 203,021
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — — 21.872 21.220 22.009 20.616 20.159 19.030
Value at End of Year — — — — — 21.872 21.220 22.009 20.616 20.159
No. of Units — — — — — 44,858 46,214 52,251 64,924 81,038
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — — — 22.637 21.995 22.847 21.434 20.990 19.843
Value at End of Year — — — — 22.312 22.637 21.995 22.847 21.434 20.990
No. of Units —   — —   140,556 163,729 223,626 333,231 428,096

 

U- 83

 

 

Venture Prior

 

Year Year Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 9, 8,7 Contracts with no Optional Riders            
Value at Start of Year — — — — 24.106 23.340 24.160 22.586 22.041 20.764
Value at End of Year — — — — — 24.106 23.340 24.160 22.586 22.041
Ven 7, 8 No. of Units — — — — — 452,266 571,327 687,227 774,168 821,550
Ven 9 No. of Units — — — — — 99,494 119,735 142,900 145,054 168,674
Ven 3 Contracts with no Optional Riders          
Value at Start of Year — — — — 24.106 23.340 24.160 22.586 22.041 20.764
Value at End of Year — — — — — 24.106 23.340 24.160 22.586 22.041
No. of Units — — — — — 30,193 31,511 48,816 52,366 69,630
Total Return Trust (merged into Core Bond Trust eff 04-27-2015) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — 18.294 17.715 18.329 17.123 16.702 15.730
Value at End of Year — — — — — 18.294 17.715 18.329 17.123 16.702
Venture No. of Units — — — — — 403,806 749,495 1,040,886 961,136 1,032,723
NY Venture No. of Units — — — — — 29,621 55,585 63,858 66,096 69,224
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)    
Value at Start of Year — — — — 12.471 12.059 12.457 — — —
Value at End of Year — — — — — 12.471 12.059 — — —
Venture No. of Units — — — — — 332,962 155,590 — — —
NY Venture No. of Units — — — — — 19,028 5,035 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits          
Value at Start of Year — — — — 20.316 19.723 20.457 19.159 18.735 17.689
Value at End of Year — — — — — 20.316 19.723 20.457 19.159 18.735
Ven 22, 20 No. of Units — — — — — 993,552 1,325,314 1,835,547 2,112,982 2,621,562
Ven 24 No. of Units — — — — — 277,589 396,089 483,698 550,194 657,731
Ven 22, 20 Contracts with GEM    
Value at Start of Year — — — — 19.809 19.269 20.026 18.794 18.414 17.420
Value at End of Year — — — — — 19.809 19.269 20.026 18.794 18.414
No. of Units — — — — — 72,882 114,644 131,565 142,943 198,259
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)  
Value at Start of Year — — — — — 17.246 17.906 16.787 16.431 15.529
Value at End of Year — — — — — — 17.246 17.906 16.787 16.431
No. of Units — — — — — — 16,079 24,712 27,943 30,049
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — — 17.979 17.446 18.086 — — —
Value at End of Year — — — — — 17.979 17.446 — — —
No. of Units — — — — — 16,771 4,501 — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year — — — — 19.437 18.936 19.709 18.524 18.177 17.222
Value at End of Year — — — — — 19.437 18.936 19.709 18.524 18.177
No. of Units — — — — — 206,442 235,078 334,497 350,084 472,346
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — — 17.979 17.446 18.086 16.930 16.547 15.615
Value at End of Year — — — — — 17.979 17.446 18.086 16.930 16.547
Venture No. of Units — — — — — 213,981 303,628 420,937 562,231 579,061
NY Venture No. of Units — — — — — 16,010 36,321 36,695 37,664 39,145
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)  
Value at Start of Year — — — — 12.420 12.033 12.456 — — —
Value at End of Year — — — — — 12.420 12.033 — — —
Venture No. of Units — — — — — 143,405 60,109 — — —
NY Venture No. of Units — — — — — 30,882 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 19.046 19.814 18.613 18.255 17.288
Value at End of Year — — — — — — 19.046 19.814 18.613 18.255
NY Venture No. of Units — — — — — — 6,736 7,962 8,728 7,002
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — — — 19.934 12.500 — — — —
Value at End of Year — — — — — 19.934 — — — —
NY Venture No. of Units — — — — — 5,890 — — — —

 

U- 84

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Total Stock Market Index Trust - Series I Shares (units first credited 05-01-2000)  
Ven 24, 22, 20 Contracts with no Optional Benefits    
Value at Start of Year 23.409 25.177 21.172 19.105 19.498 17.738 13.485 11.841 11.974 10.361
Value at End of Year 29.923 23.409 25.177 21.172 19.105 19.498 17.738 13.485 11.841 11.974
Ven 22, 20 No. of Units 703,715 923,813 1,045,488 254,248 270,053 276,765 219,054 253,072 286,623 359,944
Ven 24 No. of Units 21,459 23,549 27,182 7,737 9,192 10,172 10,704 11,194 11,208 11,254
Ven 22, 20 Contracts with GEM      
Value at Start of Year 24.467 26.367 22.217 20.088 20.543 18.726 14.264 12.550 12.717 11.026
Value at End of Year 31.212 24.467 26.367 22.217 20.088 20.543 18.726 14.264 12.550 12.717
No. of Units 9,604 9,838 10,190 4,408 4,612 4,577 4,831 3,272 3,240 5,080
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 22.600 24.392 20.583 18.639 19.089 17.427 13.295 11.715 11.889 10.323
Value at End of Year 28.787 22.600 24.392 20.583 18.639 19.089 17.427 13.295 11.715 11.889
No. of Units 17,843 20,702 21,564 7,631 7,492 7,147 10,736 16,627 16,772 22,983
Ven 9, 8,7 Contracts with no Optional Riders  
Value at Start of Year 23.409 25.177 21.172 19.105 19.498 17.738 13.485 11.841 11.974 10.361
Value at End of Year 29.923 23.409 25.177 21.172 19.105 19.498 17.738 13.485 11.841 11.974
Ven 7, 8 No. of Units 182,307 200,017 225,348 41,223 34,135 37,205 36,711 31,435 36,952 35,984
Ven 9 No. of Units 77,762 83,261 88,682 7,539 9,405 8,740 9,474 8,191 6,904 6,974
Ven 3 Contracts with no Optional Riders                  
Value at Start of Year 23.409 25.177 21.172 19.105 11.841 — — — 11.974 10.361
Value at End of Year 29.923 23.409 25.177 21.172 19.105 — — — 11.841 11.974
No. of Units 14,372 12,944 12,096 1,177 1,661 — — — 589 596
Total Stock Market Index Trust - Series II Shares (units first credited 05-13-2002)    
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 14.605 15.680 13.162 12.500 — — — — — —
Value at End of Year 18.711 14.605 15.680 13.162 — — — — — —
Venture No. of Units 9,342 9,349 9,353 2,213 — — — — — —
NY Venture No. of Units — 2,880 — — — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits    
Value at Start of Year 30.697 33.090 27.886 25.215 25.786 23.495 17.903 15.758 15.955 13.842
Value at End of Year 39.170 30.697 33.090 27.886 25.215 25.786 23.495 17.903 15.758 15.955
Ven 22, 20 No. of Units 101,950 117,934 132,769 124,013 135,268 177,334 165,239 164,918 179,449 272,643
Ven 24 No. of Units 18,294 28,277 36,953 35,607 38,759 36,169 36,692 57,748 60,606 69,812
Ven 22, 20 Contracts with GEM              
Value at Start of Year 29.691 32.071 27.082 24.537 25.142 22.954 17.526 15.457 15.681 13.632
Value at End of Year 37.812 29.691 32.071 27.082 24.537 25.142 22.954 17.526 15.457 15.681
No. of Units 18,014 21,858 22,260 21,338 22,417 9,882 3,050 7,295 5,353 5,812
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)  
Value at Start of Year 14.493 15.615 13.153 12.500 — — — — — —
Value at End of Year 18.503 14.493 15.615 13.153 — — — — — —
No. of Units 281 304 341 85 — — — — — —
Ven 24 Contracts with Payment Enhancement                  
Value at Start of Year 28.959 31.327 26.493 24.039 24.670 22.557 17.248 15.235 15.479 13.477
Value at End of Year 36.824 28.959 31.327 26.493 24.039 24.670 22.557 17.248 15.235 15.479
No. of Units 4,814 6,561 6,863 3,418 4,922 5,180 5,489 9,444 25,415 34,898
Ultra Short Term Bond Trust - Series II Shares (units first credited 08-02-2010)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — 11.509 11.589 11.685 11.838 12.011 12.183 12.279 12.431 12.500
Value at End of Year — — 11.509 11.589 11.685 11.838 12.011 12.183 12.279 12.431
Venture No. of Units — — 93,057 291,475 1,135,201 2,488,609 2,448,343 1,542,782 1,646,621 495,795
NY Venture No. of Units — — 50,069 29,810 18,127 60,982 131,008 167,903 162,673 9,795
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.911 11.890 11.954 12.035 12.174 12.334 12.491 — — —
Value at End of Year 12.136 11.911 11.890 11.954 12.035 12.174 12.334 — — —
Venture No. of Units 3,015,729 2,620,196 2,907,893 3,824,975 2,502,469 521,296 279,099 — — —
NY Venture No. of Units 88,947 123,699 79,918 126,130 82,558 113,904 — — — —

 

U- 85

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418 12.500
Value at End of Year 11.440 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418
Ven 22, 20 No. of Units 2,069,258 2,167,387 1,885,465 2,145,616 2,269,922 1,896,657 1,542,141 778,996 840,580 222,041
Ven 24 No. of Units 252,699 227,235 132,111 207,867 192,927 104,037 183,761 72,905 29,852 1,824
Ven 22, 20 Contracts with GEM
Value at Start of Year 11.084 11.131 11.259 11.403 11.605 11.828 12.201 — 12.407 12.500
Value at End of Year 11.226 11.084 11.131 11.259 11.403 11.605 11.828 — 12.201 12.407
No. of Units 58,755 75,196 112,982 62,719 63,136 141,409 140,307 — 12,367 61
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.868 12.080 12.219 12.413 12.500
Value at End of Year — — — — — — 11.868 12.080 12.219 12.413
No. of Units — — — — — — 22,433 19,942 2,363 721
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.320 11.340 11.441 11.559 11.734 11.929 12.124 — — —
Value at End of Year 11.494 11.320 11.340 11.441 11.559 11.734 11.929 — — —
No. of Units 8,505 15,750 15,204 15,455 23,912 19,218 4,092 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 10.945 11.008 11.151 11.311 11.528 11.768 12.007 12.176 12.400 12.500
Value at End of Year 11.069 10.945 11.008 11.151 11.311 11.528 11.768 12.007 12.176 12.400
No. of Units 69,924 83,889 258,762 217,302 34,834 59,665 95,665 57,112 38,915 15,518
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — 11.340 11.441 11.559 11.734 11.929 12.124 12.244 12.420 12.500
Value at End of Year — — 11.340 11.441 11.559 11.734 11.929 12.124 12.244 12.420
Venture No. of Units — — 18,309 280,631 726,423 790,418 1,423,890 797,902 508,483 111,981
NY Venture No. of Units — — 41,459 26,086 17,126 50,354 134,496 32,500 44,480 4,224
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.464 11.466 11.552 11.653 11.812 11.991 12.168 — — —
Value at End of Year 11.657 11.464 11.466 11.552 11.653 11.812 11.991 — — —
Venture No. of Units 1,326,995 1,437,242 1,321,031 1,668,906 765,649 341,095 83,500 — — —
NY Venture No. of Units 224,067 84,678 121,895 141,768 58,430 37,808 21,844 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 11.788 12.500 — — —
Value at End of Year — — — — — — 11.788 — — —
NY Venture No. of Units — — — — — — 1,953 — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year 11.131 11.173 11.295 11.434 11.631 11.848 12.065 — — —
Value at End of Year 11.279 11.131 11.173 11.295 11.434 11.631 11.848 — — —
NY Venture No. of Units 18,847 21,408 16,574 18,196 22,201 7,936 4,906 — — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418 12.500
Value at End of Year 11.440 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418
Ven 9 No. of Units 36,928 32,177 31,339 26,985 20,063 15,237 15,170 4,176 4,888 —
No. of Units 209,688 159,287 196,848 208,244 204,034 134,427 113,174 26,774 39,365 8,458
Ven 3 Contracts with no Optional Riders
Value at Start of Year 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418 12.500
Value at End of Year 11.440 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418
No. of Units 78,087 118,239 82,130 86,821 58,330 35,942 24,512 8,670 4,896 1,651
U.S. Equity Trust (merged into 500 Index Trust B eff 10-21-2016) - Series I Shares (units first credited 04-27-2012)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — 17.463 17.616 16.090 12.725 12.500 — —
Value at End of Year — — — — 17.463 17.616 16.090 12.725 — —
Ven 22, 20 No. of Units — — — — 2,383,263 2,710,583 3,166,721 3,635,635 — —
Ven 24 No. of Units — — — — 34,330 45,503 54,486 62,773 — —
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — 17.335 17.522 16.036 12.707 12.500 — —
Value at End of Year — — — — 17.335 17.522 16.036 12.707 — —
No. of Units — — — — 14,523 14,745 15,076 15,412 — —

 

U- 86

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — — 17.239 17.452 15.995 12.694 12.500 — —
Value at End of Year — — — — 17.239 17.452 15.995 12.694 — —
No. of Units — — — — 41,210 49,586 58,625 64,929 — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — 17.463 17.616 16.090 12.725 12.500 — —
Value at End of Year — — — — 17.463 17.616 16.090 12.725 — —
Ven 7, 8 No. of Units — — — — 1,971,427 2,231,428 2,544,277 2,908,241 — —
Ven 9 No. of Units — — — — 463,455 501,755 562,669 627,325 — —
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — — 17.463 17.616 16.090 12.725 12.500 — —
Value at End of Year — — — — 17.463 17.616 16.090 12.725 — —
No. of Units — — — — 208,366 236,713 250,604 289,567 — —
Ven 1 Contracts with no Optional Riders
Value at Start of Year — — — 17.532 17.667 16.119 12.734 12.500 — —
Value at End of Year — — — — 17.532 17.667 16.119 12.734 — —
No. of Units — — — — 15,423 16,219 16,228 16,238 — —
U.S. Equity Trust (merged into 500 Index Trust B eff 10-21-2016) - Series II Shares (units first credited 04-27-2012)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — — 17.337 17.524 16.044 12.704 12.500 — —
Value at End of Year — — — — 17.337 17.524 16.044 12.704 — —
Ven 22, 20 No. of Units — — — — 106,212 126,727 156,455 159,433 — —
Ven 24 No. of Units — — — — 28,163 37,151 38,190 53,340 — —
Ven 22, 20 Contracts with GEM
Value at Start of Year — — — 17.210 17.430 15.990 12.687 12.500 — —
Value at End of Year — — — — 17.210 17.430 15.990 12.687 — —
No. of Units — — — — 2,489 2,654 2,767 3,931 — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — — 17.115 17.360 15.950 12.674 12.500 — —
Value at End of Year — — — — 17.115 17.360 15.950 12.674 — —
No. of Units — — — — 6,872 4,592 5,922 13,820 — —
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — — 17.337 17.524 16.044 12.704 12.500 — —
Value at End of Year — — — — 17.337 17.524 16.044 12.704 — —
Ven 9 No. of Units — — — — 386 399 411 423 — —
Utilities Trust (merged into Equity Income Trust eff 11-01-2019) - Series I Shares (units first credited 04-30-2001)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 32.015 32.184 28.443 25.903 30.817 27.757 23.347 20.833 19.809 17.633
Value at End of Year — 32.015 32.184 28.443 25.903 30.817 27.757 23.347 20.833 19.809
Ven 22, 20 No. of Units — 171,511 200,506 231,077 259,702 300,556 310,322 322,412 395,336 441,147
Ven 24 No. of Units — 6,107 6,921 7,548 8,732 11,522 11,261 17,186 23,470 30,508
Ven 22, 20 Contracts with GEM
Value at Start of Year 30.902 31.128 27.565 25.153 29.985 27.062 22.808 20.393 19.429 17.330
Value at End of Year — 30.902 31.128 27.565 25.153 29.985 27.062 22.808 20.393 19.429
No. of Units — 4,383 5,860 6,161 5,938 6,520 6,349 11,470 12,618 15,566
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 30.094 30.359 26.924 24.605 29.376 26.552 22.412 20.069 19.150 17.105
Value at End of Year — 30.094 30.359 26.924 24.605 29.376 26.552 22.412 20.069 19.150
No. of Units — 22,728 28,580 34,056 33,714 35,931 37,234 39,596 45,152 50,708
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year 32.015 32.184 28.443 25.903 30.817 27.757 23.347 20.833 19.809 17.633
Value at End of Year — 32.015 32.184 28.443 25.903 30.817 27.757 23.347 20.833 19.809
Ven 7, 8 No. of Units — 37,224 47,047 49,912 55,367 74,053 68,005 78,056 80,849 80,849
Ven 9 No. of Units — 7,130 8,431 8,862 7,334 10,870 12,089 15,465 19,894 22,220
Ven 3 Contracts with no Optional Riders
Value at Start of Year 32.015 32.184 28.443 25.903 30.817 27.757 23.347 20.833 19.809 17.633
Value at End of Year — 32.015 32.184 28.443 25.903 30.817 27.757 23.347 20.833 19.809
No. of Units — 2,121 3,188 3,420 2,410 5,142 5,057 7,568 9,272 10,102

 

U- 87

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Utilities Trust (merged into Equity Income Trust eff 11-01-2019) - Series II Shares (units first credited 05-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.884 13.928 12.500 — — — — — — —
Value at End of Year — 13.884 13.928 — — — — — — —
Venture No. of Units — 2,192 9,957 — — — — — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year 48.379 48.727 43.147 39.361 46.970 42.373 35.705 31.943 30.394 27.127
Value at End of Year — 48.379 48.727 43.147 39.361 46.970 42.373 35.705 31.943 30.394
Ven 22, 20 No. of Units — 57,540 66,934 72,492 88,666 108,510 122,365 155,471 230,852 238,750
Ven 24 No. of Units — 11,382 18,089 20,701 21,454 26,773 33,266 39,342 46,817 48,192
Ven 22, 20 Contracts with GEM
Value at Start of Year 46.795 47.227 41.902 38.302 45.798 41.398 34.953 31.333 29.873 26.716
Value at End of Year — 46.795 47.227 41.902 38.302 45.798 41.398 34.953 31.333 29.873
No. of Units — 2,432 2,698 2,809 3,289 3,756 4,240 8,270 12,480 13,914
Ven 24 Contracts with Payment Enhancement
Value at Start of Year 45.641 46.132 40.992 37.526 44.938 40.681 34.399 30.884 29.489 26.411
Value at End of Year — 45.641 46.132 40.992 37.526 44.938 40.681 34.399 30.884 29.489
No. of Units — 9,824 18,260 18,846 19,110 34,299 38,147 47,076 55,122 68,818
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year 13.823 13.895 12.500 — — — — — — —
Value at End of Year — 13.823 13.895 — — — — — — —
Venture No. of Units — 2,967 3,551 — — — — — — —
Value Trust (merged into Mid Cap Index Trust eff 10-27-2017) - Series I Shares (units first credited 01-01-1997)
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — 49.010 42.934 47.788 44.127 33.050 28.545 28.666 23.785
Value at End of Year — — — 49.010 42.934 47.788 44.127 33.050 28.545 28.666
Ven 22, 20 No. of Units — — — 518,292 614,892 699,492 883,909 1,008,633 1,165,545 1,352,600
Ven 24 No. of Units — — — 17,511 18,557 19,890 23,683 26,710 29,546 34,694
Ven 22, 20 Contracts with GEM
Value at Start of Year — — 33.284 29.216 32.585 30.149 22.626 19.581 19.704 16.381
Value at End of Year — — — 33.284 29.216 32.585 30.149 22.626 19.581 19.704
No. of Units — — — 13,199 14,073 14,439 14,797 15,971 21,473 23,922
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — 41.943 36.872 41.185 38.163 28.683 24.861 25.054 20.861
Value at End of Year — — — 41.943 36.872 41.185 38.163 28.683 24.861 25.054
No. of Units — — — 18,979 20,418 24,512 30,454 37,049 43,314 54,786
Ven 9, 8,7 Contracts with no Optional Riders
Value at Start of Year — — 49.010 42.934 47.788 44.127 33.050 28.545 28.666 23.785
Value at End of Year — — — 49.010 42.934 47.788 44.127 33.050 28.545 28.666
Ven 7, 8 No. of Units — — — 72,173 79,315 89,607 104,043 120,988 136,308 165,841
Ven 9 No. of Units — — — 43,249 47,253 49,723 56,066 62,099 74,130 83,349
Ven 3 Contracts with no Optional Riders
Value at Start of Year — — 49.010 42.934 47.788 44.127 33.050 28.545 28.666 23.785
Value at End of Year — — — 49.010 42.934 47.788 44.127 33.050 28.545 28.666
No. of Units — — — 3,938 4,153 4,523 8,740 6,860 14,492 12,249
Value Trust (merged into Mid Cap Index Trust eff 10-27-2017) - Series II Shares (units first credited 5-13-2002)
Venture 2006 Contracts with no Optional Benefits (Contracts within first 7 Contract Years)
Value at Start of Year — — — 21.424 23.848 22.008 16.479 14.226 14.271 11.836
Value at End of Year — — — — 21.424 23.848 22.008 16.479 14.226 14.271
Venture No. of Units — — — — 13,757 33,736 96,355 112,657 113,129 124,746
NY Venture No. of Units — — — — 1,116 3,052 11,138 15,239 18,480 19,007
Venture 2006 Contracts with no Optional Benefits (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — 18.931 16.546 18.390 16.946 12.669 — — —
Value at End of Year — — — 18.931 16.546 18.390 16.946 — — —
Venture No. of Units — — — 64,322 63,978 68,696 16,984 — — —
NY Venture No. of Units — — — 9,072 9,745 13,124 5,129 — — —
Ven 24, 22, 20 Contracts with no Optional Benefits
Value at Start of Year — — 34.053 29.881 33.345 30.850 23.156 20.041 20.155 16.758
Value at End of Year — — — 34.053 29.881 33.345 30.850 23.156 20.041 20.155
Ven 22, 20 No. of Units — — — 160,436 175,061 198,860 254,609 267,932 263,416 344,384
Ven 24 No. of Units — — — 13,448 14,433 16,468 21,981 30,308 30,807 38,299

 

U- 88

 

 

Venture Prior

 

  Year Year Year Year Year Year Year Year Year Year
  Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
  12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
Ven 22, 20 Contracts with GEM
Value at Start of Year — — 33.070 29.077 32.512 30.140 22.668 19.658 19.809 16.504
Value at End of Year — — — 33.070 29.077 32.512 30.140 22.668 19.658 19.809
No. of Units — — — 4,889 5,106 6,189 6,391 6,519 6,793 8,212
Venture 2006 Contracts with Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 21.425 16.098 13.946 14.039 11.685
Value at End of Year — — — — — — 21.425 16.098 13.946 14.039
No. of Units — — — — — — 8,141 10,896 13,248 14,560
Venture 2006 Contracts with Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — 23.959 21.013 23.437 21.673 16.260 — — —
Value at End of Year — — — 23.959 21.013 23.437 21.673 — — —
No. of Units — — — 4,832 5,627 8,179 1,067 — — —
Ven 24 Contracts with Payment Enhancement
Value at Start of Year — — 32.351 28.488 31.901 29.618 22.309 19.376 19.554 16.316
Value at End of Year — — — 32.351 28.488 31.901 29.618 22.309 19.376 19.554
No. of Units — — — 20,646 26,006 44,790 48,327 43,830 44,022 50,988
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts within first 7 Contract Years)
Value at Start of Year — — — 21.013 23.437 21.673 16.260 14.065 14.138 11.750
Value at End of Year — — — — 21.013 23.437 21.673 16.260 14.065 14.138
Venture No. of Units — — — — 6,993 25,311 42,464 59,934 66,856 73,259
NY Venture No. of Units — — — — 1,462 2,642 4,679 5,293 5,537 5,778
Venture 2006 Contracts with Annual Step-Up Death Benefit (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — 18.778 16.444 18.314 16.910 12.667 — — —
Value at End of Year — — — 18.778 16.444 18.314 16.910 — — —
Venture No. of Units — — — 39,553 40,035 15,580 11,026 — — —
NY Venture No. of Units — — — 2,846 1,079 1,535 — — — —
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts within first 7 Contract Years)
Value at Start of Year — — — — — 29.791 22.428 19.470 19.639 16.379
Value at End of Year — — — — — — 29.791 22.428 19.470 19.639
NY Venture No. of Units — — — — — — 1,107 1,347 1,369 929
Venture 2006 Contracts with Annual Step-Up Death Benefit and Payment Enhancement (Contracts past the 7th Contract Anniversary)
Value at Start of Year — — 33.313 29.276 32.718 30.316 22.789 — — —
Value at End of Year — — — 33.313 29.276 32.718 30.316 — — —
NY Venture No. of Units — — — 1,201 1,237 1,196 148 — — —

 

U- 89

Table of Contents
To obtain a free copy of the Venture® Variable Annuity Statement of Additional Information dated April 27, 2020, please contact our Annuities Service Center.

Table of Contents
Wealthmark Variable Annuity Prospectus
Previously Issued Contracts
April 27, 2020
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may no longer receive paper copies of the shareholder reports for the Portfolios offered through your John Hancock variable annuity contract unless you specifically request paper copies from John Hancock. Instead, the shareholder reports will be made available on a website, and you will be notified by mail each time reports are posted and be provided with a website link to access those reports. If you have already elected to receive shareholder reports electronically, you will not be affected by this change, and you do not need to take any action.
Alternatively, you may request to receive reports in paper, free of charge, at any time, by calling John Hancock at 800-344-1029. Your election to receive reports in paper will apply to all Portfolios offered within your variable annuity contract.

 

Wealthmark Variable Annuity Prospectus
Previously Issued Contracts
April 27, 2020
This Prospectus describes interests in WEALTHMARK flexible Purchase Payment deferred combination Fixed and Variable Annuity contracts (singly, a “Contract” and collectively, the “Contracts”) that were previously issued by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”) in all jurisdictions except New York, or by John Hancock Life Insurance Company of New York (“John Hancock New York”) in New York. These Contracts are no longer offered for sale, however, you may make Additional Purchase Payments as permitted under your Contract and our administrative rules. Unless otherwise specified, “we,” “us,” “our,” or a “Company” refers to the applicable issuing company of a Contract. You, the Contract Owner, should refer to the first page of your Wealthmark Variable Annuity Contract for the name of your issuing Company.
Variable Investment Options. You may allocate Contract Values or Additional Purchase Payments (to the extent permitted under your Contract) to Variable Investment Options. If you do, we will measure your Contract Value (other than amounts allocated to a Fixed Investment Option) and Variable Annuity payments according to the investment performance of applicable Subaccounts of John Hancock Life Insurance Company (U.S.A.) Separate Account H or, in the case of John Hancock New York, applicable Subaccounts of John Hancock Life Insurance Company of New York Separate Account A (singly, a “Separate Account” and collectively, the “Separate Accounts”). Each Subaccount invests in one of the following Portfolios that corresponds to one of the Variable Investment Options that we make available on the date of this Prospectus.
JOHN HANCOCK VARIABLE INSURANCE TRUST
500 Index Trust
Active Bond Trust
American Asset Allocation Trust
American Global Growth Trust
American Growth Trust
American Growth-Income Trust
American International Trust
Blue Chip Growth Trust
Capital Appreciation Trust
Capital Appreciation Value Trust
Core Bond Trust
Disciplined Value International Trust1
Emerging Markets Value Trust
Equity Income Trust2
Financial Industries Trust
Fundamental All Cap Core Trust
Fundamental Large Cap Value Trust
Global Trust
JOHN HANCOCK VARIABLE INSURANCE TRUST
Health Sciences Trust
High Yield Trust
International Equity Index Trust3
International Small Company Trust
Investment Quality Bond Trust
Lifestyle Aggressive Portfolio
Lifestyle Balanced Portfolio
Lifestyle Conservative Portfolio
Lifestyle Growth Portfolio
Lifestyle Moderate Portfolio
Managed Volatility Aggressive Portfolio
Managed Volatility Balanced Portfolio
Managed Volatility Conservative Portfolio
Managed Volatility Growth Portfolio
Managed Volatility Moderate Portfolio
Mid Cap Index Trust
Mid Cap Stock Trust
JOHN HANCOCK VARIABLE INSURANCE TRUST
Mid Value Trust
Money Market Trust4
Opportunistic Fixed Income Trust5
Real Estate Securities Trust
Science & Technology Trust
Select Bond Trust
Short Term Government Income Trust
Small Cap Index Trust
Small Cap Opportunities Trust
Small Cap Stock Trust
Small Cap Value Trust
Small Company Value Trust
Strategic Income Opportunities Trust
Total Bond Market Trust
Total Stock Market Index Trust
Ultra Short Term Bond Trust
DEUTSCHE FUNDS
Deutsche Equity 500 Index VIP1
1 Formerly International Value Trust.
2 Successor to Utilities Trust.
3 Successor to International Growth Stock Trust.
4 Subject to restrictions (see “V. Description of the Contract – Accumulation Period Provisions – Purchase Payments”).
5 Formerly Global Bond Trust
Contracts are not deposits or obligations of, or insured, guaranteed or endorsed by, any bank, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency. Please read this Prospectus carefully and keep it for future reference. It contains information about the Separate Accounts and Variable Investment Options that you should know before investing. The Contracts have not been approved or disapproved by the Securities and Exchange Commission (“SEC”). Neither the SEC nor any state has determined whether this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK
John Hancock Annuities Service Center John Hancock Annuities Service Center
Mailing Address Overnight Mail Address Mailing Address Overnight Mail Address
P.O. Box 55444
Boston, MA 02205-5444
www.jhannuities.com 		30 Dan Road – Suite 55444
Canton, MA 02021-2809
(800) 344-1029 		P.O. Box 55445
Boston, MA 02205-5445
www.jhannuities.com 		30 Dan Road – Suite 55444
Canton, MA 02021-2809
(800) 344-1029
0420:WMRK-1 Wealthmark

 

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iii

 

I.  Glossary
The following terms as used in this Prospectus have the indicated meanings. We also define other terms in specific sections of this Prospectus.
1940 Act: The Investment Company Act of 1940, as amended.
Accumulation Period: The period between the issue date of the Contract and the Annuity Commencement Date.
Additional Purchase Payment: Any Purchase Payment made after the initial Purchase Payment.
Adjusted Benefit Base: The Riders’ Benefit Base immediately after we adjust it during a Contract Year to reflect the value of Additional Purchase Payments that we add to the Benefit Base. See Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits.”
Age 65 Contract Anniversary: A term used with our guaranteed minimum withdrawal benefit Riders to describe the Contract Anniversary on, or next following, the date the Owner (older Owner with GMWB joint-life Riders) turns age 65.
Age 95 Contract Anniversary: A term used with our guaranteed minimum withdrawal benefit Riders to describe the Contract Anniversary on, or next following, the date the Covered Person or the older Owner, depending on the Rider, turns age 95.
Anniversary Value: A term used with our optional Annual Step-Up Death Benefit Rider that describes one of the values we use to determine the death benefit. See Appendix B: “Optional Enhanced Death Benefits.”
Annuitant: Any natural person or persons to whom annuity payments are made and whose life is used to determine the duration of annuity payments involving life contingencies. If the Contract Owner names more than one person as an Annuitant, the second person named is referred to as co-Annuitant. The Annuitant and co-Annuitant are referred to collectively as Annuitant. The Annuitant is as designated on the Contract specification page or in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period.
Annuities Service Center: The mailing address and overnight mail address of our service office is listed on the first page of this Prospectus.
Annuity Commencement Date: The date we/you annuitize your Contract. That is, the Pay-out Period commences and we begin to make annuity payments to the Annuitant. You can change the Annuity Commencement Date to any date after the Contract Date (at least one year after the Contract Date for John Hancock New York Contracts), and prior to the Maturity Date.
Annuity Option: The method selected by the Contract Owner (or as specified in the Contract if no selection is made) for annuity payments made by us.
Annuity Unit: A unit of measure that is used after the election of an Annuity Option to calculate Variable Annuity payments.
Asset Allocation Services: Programs offered by third parties in connection with the Contracts through which the third party may transfer amounts among Investment Options from time to time on your behalf.
Beneficiary: The person, persons or entity entitled to the death benefit under the Contract upon the death of a Contract Owner or, in certain circumstances, an Annuitant. The Beneficiary is as specified in the application, unless changed.
Benefit Base: A term used with our optional guaranteed minimum withdrawal benefit Riders to describe a value we use to determine one or more guaranteed withdrawal amounts under the Rider. A Benefit Base may be referred to as a “Guaranteed Withdrawal Balance” in the Rider you purchased. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Benefit Rate: A rate we use to determine a guaranteed withdrawal amount under the guaranteed minimum withdrawal benefit Rider. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Business Day: Any day on which the New York Stock Exchange is open for business. The end of a Business Day is the close of daytime trading on the New York Stock Exchange, which generally is 4:00 p.m. Eastern Time.
Code: The Internal Revenue Code of 1986, as amended.
Company: John Hancock USA or John Hancock New York, as applicable.
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Contingent Beneficiary: The person, persons or entity to become the Beneficiary if the Beneficiary is not alive. The Contingent Beneficiary is as specified in the application for a Contract, unless changed.
Contract: The fixed and variable annuity contract described by this Prospectus. If you purchased this annuity under a group contract, a Contract means the certificate issued to you under the group contract.
Contract Anniversary: The day in each calendar year after the Contract Date, that is the same month and day as the Contract Date.
Contract Date: The date of issue of the Contract.
Contract Value: The total of the Investment Account values and, if applicable, any amount in the Loan Account attributable to the Contract.
Contract Year: A period of twelve consecutive months beginning on the date as of which the Contract was issued, or any anniversary of that date.
Covered Person(s): A term used with our optional guaranteed minimum withdrawal benefit Riders to describe an individual (or individuals) whose lifetime(s) we use to determine the duration of any guaranteed lifetime income amounts under a guaranteed minimum withdrawal benefit Rider. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Credit: A term used with most of our optional guaranteed minimum withdrawal benefit Riders to describe a potential way to increase the Benefit Base that we may apply during one or more Credit Periods. A Credit may be referred to as a “Bonus” or “Target Amount” in the Rider you purchased. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Credit Period: A term used with most of our guaranteed minimum withdrawal benefit Riders to describe the period of time we use to measure the availability of Credits. A Credit Period may be referred to as a “Bonus Period,” “Lifetime Income Bonus Period,” or the period ending on a “Target Date” in the Rider you purchased. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Credit Rate: The rate that we use to determine a Credit, if any, under a guaranteed minimum withdrawal benefit Rider. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Debt: Any amounts in the Loan Account attributable to the Contract plus any accrued loan interest. The loan provision is applicable to certain Qualified Contracts only.
Excess Withdrawal: A term used with most of our optional guaranteed minimum withdrawal benefit Riders to describe a withdrawal that exceeds certain limits under the Rider. During periods of declining investment performance, Excess Withdrawals may cause substantial reductions to or loss of guaranteed minimum withdrawal benefits. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Financial Account Plan: A method of making periodic Additional Purchase Payments automatically through a bank account, brokerage account or other account you hold at a similar financial institution.
Fixed Annuity: An Annuity Option with payments for a set dollar amount that we guarantee.
Fixed Investment Option: An Investment Option in which a Company guarantees the principal value and the rate of interest credited to the Investment Account for the term of any guarantee period.
General Account: All of a Company’s assets, other than assets in its Separate Account and any other separate accounts it may maintain.
Good Order: The standard that we apply when we determine whether an instruction is satisfactory. An instruction is considered in Good Order if it is received at our Annuities Service Center: (a) in a manner that is satisfactory to us such that it is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction and it complies with all relevant laws and regulations and Company requirements; (b) on specific forms, or by other means we then permit (such as via telephone or electronic submission); and/or (c) with any signatures and dates we may require. We will notify you if an instruction is not in Good Order.
Investment Account: An account we establish for you which represents your interests in an Investment Option during the Accumulation Period.
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Investment Options: The investment choices available to Contract Owners.
John Hancock New York: John Hancock Life Insurance Company of New York.
John Hancock USA: John Hancock Life Insurance Company (U.S.A.).
Lifetime Income Amount: A term used with most of our guaranteed minimum withdrawal benefit Riders that generally describes an amount we guarantee to be available for withdrawal during the Accumulation Period based on the lives of one or more Covered Persons. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Lifetime Income Date: A term used with most of our guaranteed minimum withdrawal benefit Riders that generally describes the date on which we determine the initial Lifetime Income Amount. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Loan Account: The portion of our General Account that we use as collateral for a loan under certain Qualified Contracts.
Maturity Date: The latest allowable Annuity Commencement Date under your Contract. That is, the last date (unless we consent to a later date) on which the Pay-out Period commences and we begin to make annuity payments to the Annuitant. The Maturity Date is the date specified on the Contract specifications page, unless changed with our consent.
Nonqualified Contract: A Contract which is not issued under a Qualified Plan.
Owner or Contract Owner (“you”): The person, persons (co-Owners) or entity entitled to all of the ownership rights under the Contract. References in this Prospectus to Contract Owners are typically by use of “you.” The Owner has the legal right to make all changes in contractual designations where specifically permitted by the Contract. The Owner is as specified in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period.
Pay-out Period: The period when we make annuity payments to the Annuitant following the Annuity Commencement Date.
Payroll Plan: A method of making periodic Additional Purchase Payments through a payroll deduction plan.
Portfolio: A series of a registered open-end management investment company which corresponds to a Variable Investment Option.
Prospectus: This prospectus that describes interests in the Contracts.
Purchase Payment: An amount you pay to us for the benefits provided by the Contract.
Qualified Contract: A Contract issued under a Qualified Plan.
Qualified Plan: A retirement plan that receives favorable tax treatment under section 401, 403, 408 (IRAs), 408A (Roth IRAs) or 457 of the Code.
Reset: A reduction of the Benefit Base or Guaranteed Withdrawal Balance, as appropriate, if you take an Excess Withdrawal (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”).
Rider: An optional benefit that you may have elected for an additional charge.
Separate Account: John Hancock Life Insurance Company (U.S.A.) Separate Account H or John Hancock Life Insurance Company of New York Separate Account A, as applicable. Each Separate Account is a segregated asset account of a Company that is not commingled with the general assets and obligations of the Company.
Settlement Phase: A term used with our optional guaranteed minimum withdrawal benefit Riders to describe the period when your Contract Value is equal to zero and we automatically begin making payments to you under the Rider, subject to the conditions described in the Rider. During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details.
Spouse: Any person recognized as a “spouse” in the state where the couple was legally married. The term does not include a party to a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under that state’s law.
Step-Up: A term used with some of our optional benefit Riders to describe a potential way to increase the amounts guaranteed under that Rider on certain Contract Anniversary dates when your Contract Value exceeds a previously determined amount. Please refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more details on
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Step-Ups of the Benefit Base under a guaranteed minimum withdrawal benefit Rider, and (where applicable) Appendix D: “Optional Guaranteed Minimum Income Benefits” for more details on Step-Ups of the Income Base under a guaranteed minimum income benefit Rider.
Step-Up Date: The date on which we determine whether a Step-Up could occur.
Subaccount: A separate division of the applicable Separate Account.
Unliquidated Purchase Payments: The amount of all Purchase Payments in the Contract net of any withdrawals in excess of the free Withdrawal Amount that have been taken to date.
Unpaid Loan: The unpaid amount (including any accrued interest) of loans a Qualified Contract Owner may have taken from us, using certain Contract Value as collateral.
Variable Annuity: An Annuity Option with payments which: (1) are not predetermined or guaranteed as to dollar amount, and (2) vary in relation to the investment experience of one or more specified Subaccounts.
Variable Investment Option: An Investment Option corresponding to a Subaccount of a Separate Account that invests in shares of a specific Portfolio.
Withdrawal Amount: The total amount taken from your Contract Value, including any applicable withdrawal charge, tax and proportional share of administrative fee, to process a withdrawal.
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II.  Overview
This overview tells you some key points you should know about the Contract. Because this is an overview, it does not contain all the information that may be important to you. Please read carefully this entire Prospectus, including its Appendices, and the Statement of Additional Information (“SAI”) for more detailed information.
We disclose all material features and benefits of the Contracts in this Prospectus. Insurance laws and regulations apply to us in every state in which the Contracts were sold. As a result, a Contract purchased in one state may have terms and conditions that vary from the terms and conditions of a Contract purchased in a different jurisdiction. We disclose all material variations in this Prospectus.
What kind of Contract is described in this Prospectus?
Each Contract is a flexible Purchase Payment deferred combination Fixed and Variable Annuity Contract between you and a Company. “Deferred” means payments by a Company begin on a future date under a Contract. “Variable” means amounts in a Contract may increase or decrease in value daily based upon your Contract’s Variable Investment Options. A Contract provides for the accumulation of these investment amounts and the payment of annuity benefits on a variable and/or fixed basis. Depending on state requirements, we may have issued the Contract under a master group contract.
We no longer offer the Contracts described in this Prospectus for sale; however, you may make Additional Purchase Payments as permitted under your Contract.
Who issued my Contract?
Your Contract provides the name of the Company that issued your Contract. John Hancock USA issued the Contract in all jurisdictions except New York. John Hancock New York issued the Contract only in New York. Each Company sponsors its own Separate Account.
What are some benefits of the Contract?
The Contract offers access to Variable Investment Options, tax-deferred treatment of earnings during the Accumulation Period, and the ability to receive annuity payments at a future date. We will pay a death benefit to your Beneficiary if you die during the Accumulation Period. The amount of the death benefit will vary based on your age at death and how long the Contract has been issued to you. The death benefit amount will be less any amounts deducted in connection with any withdrawals.
We offer a variety of Fixed Annuity and Variable Annuity payment options. Periodic annuity payments begin on the Annuity Commencement Date. You select the Annuity Commencement Date, the frequency of payment and the type of annuity payment option. Annuity payments are made to the Annuitant. We provide more information about payout benefits in “V. Description of the Contract – Pay-out Period Provisions.” In most cases, no income tax will have to be paid on your earnings under the Contract until these earnings are paid out. If you purchased a Contract for any Qualified Plan, the Contract does not provide any additional tax-deferred treatment of earnings beyond the treatment provided by the plan.
The Contract provides optional death benefits and optional guaranteed minimum withdrawal benefits, each for an additional fee. These optional benefits were available only at the time you purchased your Contract. We provide more information about these benefits under Appendix B: “Optional Enhanced Death Benefits” and Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits.”
How does the Contract work?
Under the Contract, you make one or more Purchase Payments to the Company for a period of time, known as the Accumulation Period. During the Accumulation Period, your Purchase Payments are allocated to Investment Options. You may transfer among the Investment Options and take withdrawals. Later, beginning on the Annuity Commencement Date, the Company makes one or more annuity payments under the Contract for a period of time, known as the Pay-out Period. Your Contract Value during the Accumulation Period is variable, and the amounts of annuity payments during the Pay-out Period may either be variable or fixed, depending upon your choice.
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Can I invest more money (i.e., make Additional Purchase Payments) in the Contract?
That depends. We accept Additional Purchase Payments for the Contract only in a limited number of circumstances, and you may be unable to make an Additional Purchase Payment.
Contracts with Guaranteed Minimum Withdrawal Benefit Riders. We impose restrictions on Additional Purchase Payments for Contracts issued with one of our guaranteed minimum withdrawal benefit Riders (see “V. Description of the Contract - Purchase Payments”).
Contracts without Guaranteed Minimum Withdrawal Benefit Riders. The minimum Additional Purchase Payment we accept is $30 without our prior approval. You must obtain our prior approval if an Additional Purchase Payment to any Contract would cause the Contract Value to exceed $1 million, or if your Contract Value already exceeds $1 million. All Additional Purchase Payments must be in U.S. dollars and paid to our Annuities Service Center.
Contracts Issued for Use With Tax-Qualified Retirement Plans. This is no longer the law for IRAs. Restrictions may apply for Contracts issued for use in a retirement plan intended to qualify under section 403(b) of the Code.
Annuity Pay-out Period. No Additional Purchase Payments may be made for any Contract during the Pay-out Period (see “V. Description of the Contract – Pay-out Period Provisions”).
What charges do I pay under the Contract?
Your Contract has an annual Contract fee of $30. Your Contract’s asset-based charges compensate us primarily for our administrative expenses and for the mortality and expense risks that we assume under the Contract. These charges do not apply to Contract Value you have in our Fixed Investment Option. We take the deduction proportionally from each Variable Investment Option you are then using. We make deductions for any applicable taxes based on the amount of a Purchase Payment. If you elect a Rider, we also deduct the Rider charges shown in the Fee Tables proportionally from each of your Investment Options based on your value in each.
If you withdraw some of your Purchase Payments from your Contract prior to the Annuity Commencement Date (including withdrawals under a guaranteed minimum withdrawal benefit Rider), or if you surrender your Contract, in its entirety, for cash prior to the Annuity Commencement Date, we may assess a withdrawal charge. The amount of this charge depends on the number of years that have passed since we received your Purchase Payments, as shown in the Fee Tables. The Fee Tables also describe charges and expenses of underlying Portfolios.
What are my investment choices?
Although your Contract allows us to offer both Fixed and Variable Investment Options, we currently offer only Variable Investment Options for Additional Purchase Payments.
Variable Investment Options. Each Variable Investment Option is a Subaccount of a Separate Account that invests solely in a corresponding Portfolio. The Portfolio prospectuses contain full descriptions of the Portfolios. The amount you have invested in any Variable Investment Option will increase or decrease based upon the investment performance of the corresponding Portfolio (reduced by certain charges we deduct – see “III. Fee Tables”). Your Contract Value during the Accumulation Period and the amounts of annuity payments will depend upon the investment performance of the underlying Portfolio of the Variable Investment Option you select.
In selecting Variable Investment Options under a Contract, you should consider:
•  You bear the investment risk that your Contract Value will increase or decrease to reflect the results of your Contract’s investment in underlying Portfolios. We do not guarantee Contract Value in a Variable Investment Option or the investment performance of any Portfolio.
•  Although the Portfolios may invest directly in securities or indirectly, through other underlying funds, you will not have the ability to determine the investment decisions or strategies of the Portfolios.
Restrictions on the Money Market Investment Option. You are not permitted to make new investments in the Money Market Investment Option. Transfers of amounts from other Investment Options into the Money Market Investment Option also are not permitted. If you currently have Contract Value in the Money Market Investment Option, you may continue to keep that Contract Value in Money Market, but any transfer or withdrawal from the Money Market cannot be replaced (please refer to “V. Description of the Contract – Purchase Payments”).
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Restrictions on the Deutsche Equity 500 Index VIP Investment Option. You are not permitted to make new investments in the Deutsche Equity 500 Index VIP Investment Option. Transfers of amounts from other Investment Options into this Investment Option also are not permitted. If you currently have Contract Value in the Deutsche Equity 500 Index VIP Investment Option, you may continue to keep that Contract Value in that Investment Option, but any transfer or withdrawal from it cannot be replaced (please refer to “V. Description of the Contract – Purchase Payments”).
Fixed Investment Options. Currently, we do not make any Fixed Investment Options available for Additional Purchase Payments. However, we may, in the future, make Fixed Investment Options available for Additional Purchase Payments under the Contract. See “V. Description of the Contract – Fixed Investment Options” for additional information. Where available, Fixed Investment Options earn interest at rates we set. Interest rates depend upon the length of the guarantee periods of the Fixed Investment Options. Under a Fixed Investment Option, we guarantee the principal value of Purchase Payments and the rate of interest credited to your Investment Account for the term of any guarantee period we make available. Although we do not currently offer a DCA Fixed Investment Option, we may make one available in the future. Please see “V. Description of the Contract – Special Transfer Services – Dollar Cost Averaging” for details.
How can I change my investment choices?
Allocation of Purchase Payments. You designate how you would like your Purchase Payments to be allocated among the Variable Investment Options available under your Contract. You may change this investment allocation for Additional Purchase Payments (to the extent permitted under the Contract and not subject to restrictions) at any time.
Transfers Among Investment Options. During the Accumulation Period, you may transfer your investment amounts among Investment Options without charge, subject to certain restrictions described below and in “V. Description of the Contract – Transfers Among Investment Options.” During the Pay-out Period, you may transfer your allocations among the Variable Investment Options, subject to certain restrictions described in “Transfers During the Pay-out Period.”
The Variable Investment Options can be a target for abusive transfer activity. To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict Owner-initiated transfers to two per calendar month per Contract, with certain exceptions described in more detail in “V. Description of the Contract – Transfers Among Investment Options.” We apply each Separate Account’s policy and procedures uniformly to all Contract Owners.
In addition to the transfer restrictions that we impose, the John Hancock Variable Insurance Trust and Deutsche Funds also have adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to a Portfolio upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy.
Transfers Between Annuity Options. During the Pay-out Period, you may not transfer from a Variable Annuity Option to a Fixed Annuity Option, or from a Fixed Annuity Option to a Variable Annuity Option (see “V. Description of the Contract – Transfers During the Pay-out Period”).
How do I access my money?
During the Accumulation Period, you may withdraw all or a portion of your Contract Value. The amount you withdraw from any Investment Option must be at least $300 or, if less, your entire balance in that Investment Option. If a withdrawal plus any applicable withdrawal charge would reduce your Contract Value to less than $300, we may treat your withdrawal request as a request to withdraw all of your Contract Value. A withdrawal charge and an administration fee may apply to your withdrawal (See “VI. Charges and Deductions – Withdrawal Charges”). Withdrawals from Contracts with a guaranteed minimum withdrawal benefit Rider may affect the benefits under the Rider (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”). A withdrawal may also be subject to income tax and a 10% penalty tax.
What types of optional benefit Riders may have been available to me under the Contract?
This Prospectus provides information about optional benefit Riders that you may have elected when you purchased a Contract. These Riders may not have been available in all states, may not have been available for all versions of the Contract, and may not have been available when you purchased the Contract. If you elected any of these Riders, you pay the additional charge shown in the Fee Tables. Please review your Contract carefully to determine which of the following optional benefit Riders, if any, you purchased.
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We describe the following optional benefit Riders in the Appendices to this Prospectus:
Appendix B: Optional Enhanced Death Benefits
•  Enhanced Earnings Death Benefit – not offered in New York or Washington;
•  Accelerated Beneficiary Protection Death Benefit – not offered in New York or Washington.
Appendix C: Optional Guaranteed Minimum Withdrawal Benefits
•  Income Plus For Life® 12.08;
•  Income Plus For Life – Joint Life® 12.08;
•  Income Plus For Life® (Quarterly Step-Up Review);
•  Income Plus For Life – Joint Life® (Quarterly Step-Up Review);
•  Income Plus For Life® (Annual Step-Up Review);
•  Income Plus For Life – Joint Life® (Annual Step-Up Review);
•  Principal Plus (formerly known as “Guaranteed Principal Plus”);
•  Principal Plus for Life (formerly known as “Guaranteed Principal Plus for Life”);
•  Principal Plus for Life Plus Automatic Annual Step-Up; and
•  Principal Returns.
We use the term “Income Plus For Life® Series Riders” in the Prospectus to refer to all six Income Plus For Life® Riders issued with the Contracts, i.e., Income Plus For Life® (Annual Step-Up Review); Income Plus For Life – Joint Life® (Annual Step-Up Review); Income Plus For Life® (Quarterly Step-Up Review); Income Plus For Life – Joint Life® (Quarterly Step-Up Review); Income Plus For Life® 12.08; and Income Plus For Life – Joint Life® 12.08.
If you elected to purchase any one of these guaranteed minimum withdrawal benefit Riders, you may invest your Contract Value only in the Investment Options we make available for these benefits (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”). We also reserve the right to impose additional restrictions on Investment Options at any time.
Appendix D: Optional Guaranteed Minimum Income Benefits
•  Guaranteed Retirement Income Benefits* – offered by John Hancock USA;
•  Guaranteed Retirement Income Benefits* – offered by John Hancock New York.
*May also, in marketing and other materials, be referred to as “Guaranteed Retirement Income Programs.”
Payment Enhancement Rider. If you purchased your Contract in New York, John Hancock New York offered a Payment Enhancement optional benefit Rider (formerly known as a “Payment Credit” optional Rider.) Under this Rider, John Hancock New York credits a Payment Enhancement equal to 4% (5% for Contracts issued between July 12 and October 30, 2004) of the Purchase Payment and allocates it among Investment Options in the same proportions as your Purchase Payments. Contracts with this feature are subject to a higher withdrawal charge and for a longer period of time. When available, it could only be elected at Contract issue, and it cannot be revoked once elected. Your initial Purchase Payment must have been at least $10,000 to elect the Payment Enhancement Rider. The Payment Enhancement Rider was not available with Contracts issued outside of New York by John Hancock USA.
What are the tax consequences of owning a Contract?
In most cases, no income tax will have to be paid on amounts you earn under a Contract until these earnings are paid out. All or part of the following distributions from a Contract may constitute a taxable payout of earnings:
•  withdrawals (including surrenders and systematic withdrawals);
•  payment of any death benefit proceeds;
•  periodic payments under one of our annuity payment options;
•  certain ownership changes; and
•  any loan, assignment or pledge of the Contract as collateral.
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How much you will be taxed on distribution is based upon complex tax rules and depends on matters such as:
•  the type of the distribution;
•  when the distribution is made;
•  the nature of any Qualified Plan for which the Contract is being used; and
•  the circumstances under which the payments are made.
If your Contract was issued in connection with a Qualified Plan, all or part of your Purchase Payments may be tax-deductible or excludible from income.
A 10% penalty tax applies in many cases to the taxable portion of any distributions from a Contract before you reach age 59½. Also, most Qualified Plans require that minimum distributions from a Contract commence and/or be completed within a certain period of time. This effectively limits the period of time during which you can continue to derive tax deferral benefits from any tax-deductible or tax-deferred Purchase Payments you made or on any earnings under the Contract.
A Contract purchased as an investment vehicle for a Qualified Plan, including an IRA, does not provide any additional tax- deferral benefits beyond the treatment provided by the Qualified Plan. The favorable tax benefits available for Qualified Plans that invest in annuity contracts are also generally available if the Qualified Plan purchases other types of investments, such as mutual funds, equities and debt instruments. However, the Contract offers features and benefits that other investments may not offer, including the Investment Options and protection through living guarantees, death benefits and other benefits. Please note that federal tax law changes in the 2019 SECURE Act now limit certain annuitization and beneficiary payout options for contracts held as part of a Qualified Plan, including an IRA. Purchasers of Contracts for use with any retirement plan should consult with a qualified tax professional.
We provide additional information on taxes in “VII. Federal Tax Matters.” We make no attempt to provide more than general information about use of the Contract with the various types of retirement plans.
Do I receive Transaction Confirmations?
We send you a confirmation statement for certain transactions in your Investment Accounts. Please review these transaction confirmations carefully to verify their accuracy. Please report any mistakes immediately to our Annuities Service Center (at the address or phone number shown on the first page of this Prospectus). If you fail to notify our Annuities Service Center of any mistake within 60 days of the delivery of the transaction confirmation, you will be deemed to have ratified the transaction. If you have not already done so, please register for electronic delivery of your transaction confirmations by contacting the John Hancock Annuities Service Center at the applicable telephone number or internet address shown on the first page of this Prospectus for more information on electronic transactions.
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III.  Fee Tables
The following tables describe the fees and expenses applicable to buying, owning and surrendering a Wealthmark Contract. The tables also describe the fees and expenses for optional benefit Riders that were available for certain time periods. The items listed under “Contract Owner Transaction Expenses” and “Periodic Fees and Expenses Other than Portfolio Expenses” are more completely described under “VI. Charges and Deductions.” The items listed under “Total Annual Portfolio Operating Expenses” are described in detail in the Portfolios’ prospectuses. Unless otherwise shown, the tables entitled “Contract Owner Transaction Expenses” and “Periodic Fees and Expenses Other than Portfolio Expenses” show the maximum fees and expenses (including fees deducted from Contract Value for optional benefits).
The following table describes the fees and expenses that you pay at the time you withdraw Contract Values or surrender the Contract (or potentially when you transfer Contract Value between Investment Options). State premium taxes may also be deducted.
Contract Owner Transaction Expenses1
John Hancock USA
Withdrawal Charge
(as percentage of Purchase Payments)2
First Year 6%
Second Year 6%
Third Year 5%
Fourth Year 5%
Fifth Year 4%
Sixth Year 3%
Seventh Year 2%
Thereafter 0%
Transfer Fee3  
Maximum Fee $25
Current Fee $0
John Hancock New York
Withdrawal Charge
(as percentage of Purchase Payments)2 		With Payment
Enhancement Rider 		Without Payment
Enhancement Rider
First Year 8% 6%
Second Year 8% 6%
Third Year 7% 5%
Fourth Year 7% 5%
Fifth Year 5% 4%
Sixth Year 4% 3%
Seventh Year 3% 2%
Eighth Year 1% 0%
Thereafter 0% 0%
Transfer Fee3    
Maximum Fee $25 $25
Current Fee $0 $0
1 State premium taxes, which currently range from 0.04% to 4.00% of each Purchase Payment (see “VI. Charges and Deductions – Premium Taxes”), may also apply to your Contract.
2 The charge is taken upon withdrawal or surrender on a first-in, first-out basis within the specified period of years measured from the date of each Purchase Payment. We calculate the amount of the withdrawal charge by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage shown above. The total withdrawal charge will be the sum of the withdrawal charges for the Purchase Payments being liquidated.
3 This fee is not currently assessed against transfers. We reserve the right to impose a charge in the future for transfers in excess of 12 per year. The amount of this fee will not exceed the lesser of $25 or 2% of the amount transferred.
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The following table describes fees and expenses that you pay periodically during the time that you own the Contract. These tables do not include annual Portfolio operating expenses.
Periodic Fees and Expenses Other than Portfolio Expenses
    John Hancock USA   John Hancock New York  
Annual Contract Fee1   $30   $30  
Annual Separate Account Expenses2
(as a percentage of Contract Value in the Variable Investment Options) 		         
Mortality and Expense Risks Fee3   1.25%   1.25%  
Administration Fee – asset based   0.15%   0.15%  
Total Annual Separate Account Expenses
(With No Optional Benefits Reflected) 		  1.40%   1.40%  
Optional Benefits          
Fees Deducted from Separate Account          
Optional Enhanced Earnings Death Benefit Fee   0.20%   not offered  
Optional Payment Enhancement Fee4   not offered   0.35%  
Total Annual Separate Account Expenses
(With the Enhanced Earnings Death Benefit and Payment Enhancement Fees reflected, as applicable) 		  1.60%   1.75%  
Other Account Fees deducted from Contract Value          
Optional Guaranteed Minimum Income Benefit Rider Fee5          
Guaranteed Retirement Income Benefit II   0.45%   0.45%  
Guaranteed Retirement Income Benefit III   0.50%   not offered  
Accelerated Beneficiary Protection Death Benefit6   0.50%   not offered  
    
Optional Guaranteed Minimum Withdrawal Benefit Rider Fees
(as a percentage of Adjusted Guaranteed Withdrawal Balance)
  Income Plus
For Life®
(Annual
Step-Up
Review)7 		Income Plus
For Life –
Joint Life®
(Annual
Step-Up Review)
(not available
in New York)7 		Income Plus
For Life®
(Quarterly
Step-Up
Review)
(issued
outside
New York)7 		Income Plus
For Life®
(Quarterly
Step-Up
Review)
(issued in
New York)7 		Income Plus
For Life –
Joint Life®
(Quarterly
Step-Up
Review)
(issued outside
New York)7 		Income Plus
For Life –
Joint Life®
(Quarterly
Step-Up
Review)
(issued
in New
York)7 		Income Plus
For Life®
12.08
(issued
outside
New York)7 		Income Plus
For Life®
12.08
(issued in
New York)7
Maximum Fee 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Current Fee 0.60% 0.60% 0.75% 0.70% 0.75% 0.70% 0.85% 0.80%
  Income Plus
For Life –
Joint Life®
12.08
(issued outside
New York)7 		Income Plus
For Life –
Joint Life®
12.08
(issued in
New York)7 		Principal Plus
For Life Plus
Automatic Annual
Step-Up8 		Principal Plus
for Life9 		Principal
Plus9 		Principal
Returns10
Maximum Fee 1.20% 1.20% 1.20% 0.75% 0.75% 0.95%
Current Fee 0.85% 0.80% 0.70% 0.40% 0.30% 0.50%
1 The $30 annual Contract fee will not be assessed prior to the Maturity Date under a Wealthmark Contract if at the time of its assessment the Contract Value is greater than or equal to $99,000.
2 We deduct from each of the Subaccounts a daily charge at an annual effective percentage of the Contract Value in the Variable Investment Options.
3 This charge is assessed on all active Contracts, including Contracts continued by a Beneficiary upon the death of the Contract Owner.
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4 This is a daily charge reflected as a percentage of the Variable Investment Options. If you elected the optional Payment Enhancement Rider, the guaranteed rate applicable to any Fixed Investment Options is also reduced by 0.35%.
5 Guaranteed Retirement Income Benefits could not be purchased if you elected to purchase Principal Plus or Principal Plus for Life. Availability varied by state and when you purchased your Contract. See Appendix D: “Optional Guaranteed Minimum Income Benefits” for availability. This fee is deducted from Contract Value. This is an annual charge applied as a percentage of the Income Base.
6 Subject to state availability, John Hancock USA offered the Accelerated Beneficiary Protection Death Benefit from December 2003 through December 2004. This option benefit could not be purchased, however, if you elected to purchase Principal Plus, Guaranteed Retirement Income Benefit II or Guaranteed Retirement Income Benefit III. This fee is deducted from Contract Value. This is an annual charge applied as a percentage of the Accelerated Beneficiary Protection Death Benefit.
7 The current charge for each of the Income Plus For Life® Series Riders is a percentage of the Adjusted Benefit Base. For each Rider, we reserve the right to increase the charge to a maximum charge of 1.20% if the Benefit Base is stepped-up to equal the Contract Value.
8 The current charge for the Principal Plus for Life Plus Automatic Annual Step-Up Rider is a percentage of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.1.20% if the Guaranteed Withdrawal Balance is stepped-up to equal the Contract Value. For Riders issued from December 15, 2008 to April 30, 2009, the current charge is 0.70% and for Riders issued from June 16, 2008 to December 12, 2008, the current charge is 0.55%. For Riders issued prior to June 16, 2008, the current charge is 0.60%.
9 The current charge is 0.40% for Principal Plus for Life and 0.30% for Principal Plus. We reserve the right to increase the charge to a maximum charge of 0.75% if the Guaranteed Withdrawal Balance is stepped-up to equal the Contract Value. This is an annual charge applied as a percentage of the Adjusted Guaranteed Withdrawal Benefit Amount. The charge is deducted on an annual basis from the Contract Value.
10 The current charge for the Principal Returns Rider is 0.50% of the Adjusted Guaranteed Withdrawal Balance. We reserve the right to increase the charge to a maximum charge of 0.95% if the Guaranteed Withdrawal Balance is stepped-up to equal the Contract Value.
The next table describes the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Contract. More detail concerning each Portfolio’s fees and expenses is contained in the Portfolio’s prospectus.
Total Annual Portfolio Operating Expenses
(as a percentage of the Portfolio’s average net assets for the fiscal year ended December 31, 2019) 		Minimum Maximum
Range of expenses that are deducted from Portfolio assets, including management fees, Rule 12b-1 fees, and other expenses 0.25% 1.474%
Examples
We provide the following examples that are intended to help you compare the costs of investing in a Contract with the costs of investing in other variable annuity contracts. The costs we show include Contract Owner expenses, Contract fees, Separate Account annual expenses and Portfolio fees and expenses. Examples 1 and 2 pertain to Wealthmark Contracts with optional benefit Riders and Example 3 pertains to Wealthmark Contracts without optional benefit Riders.
Example 1. Maximum Portfolio operating expenses – Wealthmark Contract with optional Riders
Wealthmark Contract with optional benefit Riders: The following example assumes that you invest $10,000 in a John Hancock USA Contract with the Enhanced Earnings Death Benefit and Income Plus For Life® optional benefit Riders and, for John Hancock New York Contracts, the Payment Enhancement and Income Plus For Life® Riders. The Income Plus For Life® Rider was not available at issue of your contract, but you may be eligible to exchange a previously purchased optional guaranteed minimum withdrawal benefit rider for Income Plus For Life®. This example also assumes that your investment has a 5% return each year and assumes the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
John Hancock USA
Enhanced Earnings Death Benefit and Income Plus For Life®
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $979 $1,779 $2,615 $4,712
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $427 $1,313 $2,238 $4,712
    
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John Hancock New York
Payment Enhancement and Income Plus for Life®
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $1,177 $2,006 $2,775 $4,842
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $442 $1,356 $2,308 $4,842
Example 2. Maximum Portfolio operating expenses – Wealthmark Contract with optional Riders
Wealthmark Contract with optional benefit Riders: The following example assumes that you invest $10,000 in a John Hancock USA Contract with the Enhanced Earnings Death Benefit and Principal Plus for Life optional benefit Riders and, for John Hancock New York Contracts, the Payment Enhancement and Principal Plus for Life Riders. This example also assumes that your investment has a 5% return each year and assumes the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
John Hancock USA
Enhanced Earnings Death Benefit and Principal Plus for Life
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $929 $1,6268 $2,346 $4,094
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $378 $1,154 $1,960 $4,094
    
John Hancock New York
Payment Enhancement and Principal Plus for Life
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $1,127 $1,855 $2,510 $4,228
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $393 $1,198 $2,031 $4,228
Example 3. Maximum Portfolio operating expenses – Wealthmark Contract with previously offered optional benefit Riders
Wealthmark Contract with previously offered optional benefit Riders: The following example assumes that you invest $10,000 in a Contract with the Enhanced Earnings Death Benefit and the previously offered Guaranteed Retirement Income Benefit III optional benefit Rider for John Hancock USA. For John Hancock New York, the example assumes the Contract has the previously offered Guaranteed Retirement Income Benefit II optional benefit Rider. This example also assumes that your investment has a 5% return each year and assumes the maximum annual Contract fee and the maximum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
John Hancock USA
Enhanced Earnings Death Benefit and Guaranteed Retirement Income Benefit III
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $903 $1,549 $2,218 $3,839
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $351 $1,075 $1,827 $3,839
    
John Hancock New York
Guaranteed Retirement Income Benefit II
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $880 $1,481 $2,106 $3,629
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $327 $1,003 $1,710 $3,629
Example 4. Minimum Portfolio operating expenses – Wealthmark Contract with no optional benefit Riders
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Wealthmark Contract with no optional benefit Riders: The third example also assumes that you invest $10,000 in a Contract, but with no optional Riders. This example also assumes that your investment has a 5% return each year and assumes the average annual Contract fee we expect to receive for the Contracts and the minimum fees and expenses of any of the Portfolios. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
John Hancock USA and John Hancock New York
No Optional Benefit Riders
  1 Year 3 Years 5 Years 10 Years
If you surrender the Contract at the end of the applicable time period: $730 $1,029 $1,311 $1,980
If you annuitize, or do not surrender the Contract at the end of the applicable time period: $171 $529 $911 $1,980
We include a Table of Accumulation Unit Values relating to the Contracts in Appendix U to this Prospectus.
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IV.  General Information about Us,
the Separate Accounts and the Portfolios
The Companies
Your Contract was issued by either John Hancock USA or John Hancock New York. Please refer to your Contract to determine which Company issued your Contract.
John Hancock USA, formerly known as “The Manufacturers Life Insurance Company (U.S.A.),” is a stock life insurance company originally organized under the laws of Maine on August 20, 1955, by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. John Hancock USA is authorized to transact life insurance and annuity business in all states (except New York), the District of Columbia, Guam, Puerto Rico and the Virgin Islands. Its principal office is located at 200 Berkeley Street, Boston, Massachusetts 02116. John Hancock USA also has an Annuities Service Center – its mailing address is P.O. Box 55444, Boston, MA 02205-5444; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuities.com.
John Hancock New York, formerly known as “The Manufacturers Life Insurance Company of New York,” is a wholly-owned subsidiary of John Hancock USA and is a stock life insurance company organized under the laws of New York on February 10, 1992. John Hancock New York is authorized to transact life insurance and annuity business only in the State of New York. Its principal office is located at 100 Summit Lake Drive, Valhalla, New York 10595. John Hancock New York also has an Annuities Service Center – its mailing address is P.O. Box 55445, Boston, MA 02205-5445; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuities.com.
The ultimate parent of both companies is Manulife Financial Corporation, a publicly traded company based in Toronto, Canada. Manulife Financial Corporation is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife. The Companies changed their names to John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York, respectively, on January 1, 2005 following Manulife Financial Corporation’s acquisition of John Hancock Financial Services, Inc.
The Company incurs obligations under the Contract to guarantee certain amounts, and investors must depend on the financial strength of the Company for satisfaction of the Company’s obligations such as any Fixed Investment Option, the Lifetime Income Amount, the death benefit and any guaranteed amounts associated with our optional benefits Riders. Also, if you direct money into a DCA Fixed Investment Option that we may make available, the Company guarantees the principal value and the rate of interest credited to that Investment Option for the term of any DCA guarantee period. To the extent that the Company pays such amounts, the payments will come from the Company’s General Account assets. You should be aware that, unlike the Separate Accounts, the Company’s General Account is not segregated or insulated from the claims of the Company’s creditors. The General Account consists of securities and other investments that may decline in value during periods of adverse market conditions. The Company’s financial statements contained in the SAI include a further discussion of risks inherent within the Company’s General Account investments.
The Separate Accounts
You do not invest directly in the Portfolios made available under the Contracts. When you direct or transfer money to a Variable Investment Option, we will purchase shares of a corresponding Portfolio through one of our Separate Accounts. We hold the Portfolio’s shares in a “Subaccount” (usually with a name similar to that of the corresponding Portfolio) of the applicable Separate Account. A Separate Account’s assets (including the Portfolio’s shares) belong to the Company that maintains that Separate Account.
For Contracts issued by John Hancock USA, we purchase and hold Portfolio shares in John Hancock Life Insurance Company (U.S.A.) Separate Account H, a Separate Account under the laws of Michigan.
For Contracts issued by John Hancock New York, we purchase and hold Portfolio shares in John Hancock Life Insurance Company of New York Separate Account A, a Separate Account under the laws of New York.
The income, gains and losses, whether or not realized, from assets of a Separate Account are credited to or charged against that Separate Account without regard to a Company’s other income, gains, or losses. Nevertheless, all obligations arising
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under a Company’s Contracts are general corporate obligations of that Company. Assets of a Separate Account may not be charged with liabilities arising out of any of the respective Company’s other business.
We reserve the right, subject to compliance with applicable law: to add other Subaccounts; to eliminate existing Subaccounts; to combine Subaccounts or transfer assets in one Subaccount to another Subaccount that we, or an affiliated company, may establish; or (in states where permitted) to restrict or prohibit additional allocations to a Subaccount. We will not eliminate existing Subaccounts or combine Subaccounts without the prior approval of the appropriate state and/or federal regulatory authorities.
We registered the Separate Accounts with the SEC under the Investment Company Act of 1940, as amended (the “1940 Act”), as unit investment trusts. Registration under the 1940 Act does not involve supervision by the SEC of the management or investment policies or practices of the Separate Accounts. If a Company determines that it would be in the best interests of persons having voting rights under the Contracts it issues, that Company’s Separate Account may be operated as a management investment company under the 1940 Act or it may be deregistered if 1940 Act registration were no longer required.
The Portfolios
When you select a Variable Investment Option, we invest your money in a Subaccount of our Separate Accounts and it invests in shares of a corresponding Portfolio of:
•  the John Hancock Variable Insurance Trust; or
•  the Deutsche Funds.
The Portfolios in the Separate Account are NOT publicly traded mutual funds. The Portfolios are available to you only as Investment Options in the Contracts or, in some cases, through other variable annuity contracts or variable life insurance policies issued by us or by other life insurance companies. In some cases, the Portfolios also may be available through participation in certain tax-qualified pension, retirement or college savings plans.
Investment Management
The Portfolios’ investment advisers and managers may manage publicly traded mutual funds with similar names and investment objectives. However, the Portfolios are NOT directly related to any publicly traded mutual fund. You should not compare the performance of any Portfolio described in this Prospectus with the performance of a publicly traded mutual fund. The performance of any publicly traded mutual fund could differ substantially from that of any of the Portfolios held in our Separate Account.
Our Managed Volatility Portfolios
In selecting the Portfolios that are available as Investment Options under the Contract (or its optional benefit Riders ), we may establish requirements that are intended, among other things, to mitigate market price and interest rate risk for compatibility with our obligations to pay guarantees and benefits under the Contract (and its optional benefit Riders ). We seek to make available Investment Options that use strategies that are intended to lower potential volatility, including, but not limited to, strategies that: encourage diversification in asset classes and style; combine equity exposure with exposure to fixed income securities; and that allow us to effectively and efficiently manage our exposure under the Contracts (and optional benefit Riders). The requirements we impose are intended to protect us from loss. They may increase a Portfolio’s transaction costs, and may otherwise lower the performance and reduce the availability of Investment Options under the Contract (and/or under optional benefit Riders).
During rising markets, the strategies employed to manage volatility could result in your Contract Value rising less than would have been the case if you had been invested in a Portfolio without the managed volatility strategy. The managed volatility strategy may also suppress the value of the guaranteed Rider benefits. On the other hand, the managed volatility strategy seeks to manage the volatility of returns and limit the magnitude of Portfolio losses during declining markets with high volatility, although there is no guarantee that it will do so.
The five Managed Volatility Portfolios offered under the Contract have the following objectives and strategies:
Managed Volatility Aggressive Portfolio. Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 15% to
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18.5%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to equity securities could be reduced to 0% and its economic exposure to cash and cash equivalents or fixed-income securities could increase to 100%. However, the subadvisor may determine in light of market or economic conditions that the limit should be exceeded to achieve the Portfolio’s objective.
Managed Volatility Balanced Portfolio. Seeks growth of capital and current income while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 8.25% to 10.25%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities (either directly or through investment in underlying portfolios or derivatives) or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The Portfolio’s exposure to equity securities normally will not exceed 100%.
Managed Volatility Conservative Portfolio. Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 5.5% to 6.5%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 22%.
Managed Volatility Growth Portfolio. Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 11% to 13%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 77%.
Managed Volatility Moderate Portfolio. Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 7% to 9%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 44%.
You can find a full description of each Portfolio, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Portfolio in the prospectus for that Portfolio.
    
The John Hancock Variable Insurance Trust is a so-called “series” type mutual fund and is registered under the 1940 Act as an open- end management investment company. John Hancock Variable Trust Advisers, LLC (“JHVTA LLC”) provides investment advisory services to the John Hancock Variable Insurance Trust and receives investment management fees for doing so. JHVTA LLC pays a portion of its investment management fees to other firms that manage the John Hancock Variable Insurance Trust’s Portfolios (i.e., subadvisers). JHVTA LLC is our affiliate and we indirectly benefit from any investment management fees JHVTA LLC retains.
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The John Hancock Variable Insurance Trust has obtained an order from the SEC permitting JHVTA LLC, subject to approval by the Board of Trustees, to change a subadviser for a Portfolio or the fees paid to subadvisers and to enter into new subadvisory agreements from time to time without the expense and delay associated with obtaining shareholder approval of the change. This order does not, however, permit JHVTA LLC to appoint a subadviser that is an affiliate of JHVTA LLC or the John Hancock Variable Insurance Trust (other than by reason of serving as subadviser to a Portfolio) (an “Affiliated Subadviser”) or to change a subadvisory fee of an Affiliated Subadviser without the approval of shareholders.
If shares of a Portfolio are no longer available for investment or in our judgment investment in a Portfolio becomes inappropriate, we may eliminate the shares of a Portfolio and substitute shares of another Portfolio, or of another open-end registered investment company. A substitution may be made with respect to both existing investments and the investment of future Purchase Payments. However, we will make no such substitution without first notifying you and obtaining approval of the SEC (to the extent required by the 1940 Act).
Portfolio Expenses
Fees and expenses of the Portfolios include investment management fees, Rule 12b-1 fees and other operating expenses. The fees and expenses are not fixed or specified under the terms of the Contracts and may vary from year to year. These fees and expenses differ for each Portfolio and reduce the investment return of each Portfolio. Therefore, they also indirectly reduce the return you might earn on any Separate Account Investment Options.
The Portfolios pay us or certain of our affiliates compensation for some of the distribution, administrative, shareholder support, marketing and other services we or our affiliates provide to the Portfolios. The amount of this compensation is based on a percentage of the assets of the Portfolio attributable to the variable insurance products that we and our affiliates issue. These percentages may differ from Portfolio to Portfolio and among classes of shares within a Portfolio. In some cases, the compensation is derived from the Rule 12b-1 fees which are deducted from a Portfolio’s assets and paid for the services we or our affiliates provide to that Portfolio. Compensation payments may be made by a Portfolio’s investment adviser or its affiliates. We pay American Funds Distributors, Inc., the principal underwriter for the American Fund Insurance Series, a percentage of some or all of the amounts allocated to the “American Fund Portfolios” of the John Hancock Variable Insurance Trust for the marketing support services it provides. None of these compensation payments results in any additional charge to you.
Funds of Funds and Master-Feeder Funds
Each of the John Hancock Variable Insurance Trust’s Lifestyle Aggressive Portfolio, Lifestyle Balanced Portfolio, Lifestyle Conservative Portfolio, Lifestyle Growth Portfolio, Lifestyle Moderate Portfolio, Managed Volatility Aggressive Portfolio, Managed Volatility Balanced Portfolio, Managed Volatility Conservative Portfolio, Managed Volatility Growth Portfolio and Managed Volatility Moderate Portfolio (“JHVIT Funds of Funds”) is a “fund of funds” that invests in other underlying mutual funds. Expenses for a fund of funds may be higher than those for other Portfolios because a fund of funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying Portfolios in which it invests. The prospectus for each of the JHVIT Funds of Funds contains a description of the underlying portfolios for that Portfolio, including expenses of those portfolios, associated investment risks, and deductions from and expenses paid out of the assets of the Portfolio.
Each of the John Hancock Variable Insurance Trust’s American Asset Allocation, American Global Growth, American Growth, American Growth-Income and American International Trusts (“JHVIT American Fund Portfolios”) invests in Class 1 shares of the corresponding investment portfolio of a “master” fund. The JHVIT American Fund Portfolios operate as “feeder funds,” which means that each Portfolio does not buy investment securities directly. Instead, it invests in a corresponding “master fund” which in turn purchases investment securities. Each of the JHVIT American Fund Portfolios has the same investment objective and limitations as its corresponding master fund. The prospectus for the American Fund master funds is included with the prospectuses for the JHVIT American Fund Portfolios.
Portfolio Investment Objectives
You bear the investment risk of any Portfolio you choose as a Variable Investment Option for your Contract. The following table contains a general description of the investment objectives of the Portfolios that we make available under the Contracts. You can find a full description of each Portfolio, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Portfolio in the prospectus for that Portfolio.
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You can obtain a copy of a Portfolio’s prospectus (including the prospectus for a master fund for any of the Portfolios that are operated as feeder funds), without charge, by contacting us at the Annuities Service Center website, phone number or address shown on the first page of this Prospectus. You should read the Portfolio’s prospectus carefully before investing in the corresponding Variable Investment Option.
The Portfolios available may be restricted if you purchased a guaranteed minimum withdrawal benefit Rider (see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”).
JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
500 Index Trust
 Series NAV 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a broad-based U.S. domestic equity market index.
Active Bond Trust1
 Series II 		Manulife Investment Management (US) LLC Seeks income and capital appreciation.
American Asset Allocation Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term.
American Global Growth Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks long-term growth of capital.
American Growth Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks to provide growth of capital.
American Growth-Income Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks to provide growth of capital and income.
American International Trust
 Series II 		Capital Research and Management Company (Adviser to the Master Fund, American Fund Insurance Series) Seeks long-term growth of capital.
Blue Chip Growth Trust
 Series II 		T. Rowe Price Associates, Inc. Seeks to provide long-term growth of capital. Current income is a secondary objective.
Capital Appreciation Trust
 Series II 		Jennison Associates LLC Seeks long-term growth of capital.
Capital Appreciation Value Trust
 Series II 		T. Rowe Price Associates, Inc. Seeks long-term capital appreciation.
Core Bond Trust
 Series II 		Wells Capital Management, Incorporated Seeks total return consisting of income and capital appreciation.
Disciplined Value International
(formerly International Value Trust)
 Series II 		Boston Partners Global Investors, Inc. Seeks long-term growth of capital.
Emerging Markets Value Trust
 Series II 		Dimensional Fund Advisors LP Seeks long-term capital appreciation.
Equity Income Trust
(successor to Utilities Trust)
 Series II 		T. Rowe Price Associates, Inc. Seeks substantial dividend income and also long-term growth of capital.
Financial Industries Trust
 Series II 		Manulife Investment Management (US) LLC Seeks growth of capital.
Fundamental All Cap Core Trust
 Series II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital.
Fundamental Large Cap Value Trust
 Series II 		Manulife Investment Management (US) LLC Seeks long-term capital appreciation.
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JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
Global Trust
 Series II 		Manulife Investment Management (US) LLC Seeks long-term capital appreciation.
Health Sciences Trust
 Series II 		T. Rowe Price Associates, Inc. Seeks long-term capital appreciation.
High Yield Trust2
 Series II 		Western Asset Management Company Seeks to realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk.
International Equity Index Trust
(successor to International Growth Stock Trust)
 Series NAV 		SSgA Funds Management, Inc. Seeks to track the performance of a broad- based equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging markets.
International Small Company Trust
 Series II 		Dimensional Fund Advisors LP Seeks long-term capital appreciation.
Investment Quality Bond Trust
 Series II 		Wellington Management Company, LLP Seeks to provide a high level of current income consistent with the maintenance of principal and liquidity.
Lifestyle Aggressive Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital.
Lifestyle Balanced Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital.
Lifestyle Conservative Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks a high level of current income with some consideration given to growth of capital.
Lifestyle Growth Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital. Current income is also a consideration.
Lifestyle Moderate Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on income.
Managed Volatility Aggressive Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Balanced Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks growth of capital and current income while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Conservative Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Managed Volatility Growth Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
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JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
Managed Volatility Moderate Portfolio
 Series II 		Manulife Investment Management (US) LLC Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses.
Mid Cap Index Trust
 Series II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a mid-cap U.S. domestic equity market index.
Mid Cap Stock Trust
 Series II 		Wellington Management Company, LLP Seeks long-term growth of capital.
Mid Value Trust
 Series II 		T. Rowe Price Associates, Inc. Seek long-term capital appreciation.
Money Market Trust
 Series NAV 		Manulife Investment Management (US) LLC Seeks to obtain maximum current income consistent with preservation of principal and liquidity.
Opportunistic Fixed Income Trust
(formerly Global Bond Trust)
 Series II 		Wellington Management Company LLP Seeks maximum total return, consistent with preservation of capital and prudent investment management.
Real Estate Securities Trust3
 Series II 		DWS Investment Management Americas Inc. (“DIMA”) Seeks to achieve a combination of long-term capital appreciation and current income.
Science & Technology Trust
 Series II 		T. Rowe Price Associates, Inc. and Allianz Global Investors U.S. LLC4 Seeks long-term growth of capital. Current income is incidental to the Portfolio’s objective.
Select Bond Trust
 Series II 		Manulife Investment Management (US) LLC Seeks income and capital appreciation.
Short Term Government Income Trust
 Series II 		Manulife Investment Management (US) LLC Seeks a high level of current income consistent with preservation of capital. Maintaining a stable share price is a secondary goal.
Small Cap Index Trust
 Series II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a small cap U.S. domestic equity market index.
Small Cap Opportunities Trust
 Series II 		Dimensional Fund Advisors LP & Invesco Advisers, Inc.5 Seeks long-term capital appreciation.
Small Cap Stock Trust
 Series II 		Wellington Management Company, LLP Seeks long-term capital appreciation.
Small Cap Value Trust
 Series II 		Wellington Management Company, LLP Seeks long-term capital appreciation.
Small Company Value Trust
 Series II 		T. Rowe Price Associates, Inc. Seeks long-term growth of capital.
Strategic Income Opportunities Trust
 Series II 		Manulife Investment Management (US) LLC Seeks a high level of current income.
Total Bond Market Trust
 Series II 		Manulife Investment Management (US) LLC Seeks to track the performance of the Barclays U.S. Aggregate Bond Index (which represents the U.S. investment grade bond market).
Total Stock Market Index Trust
 Series II 		Manulife Investment Management (North America) Limited Seeks to approximate the aggregate total return of a broad-based U.S. domestic equity market index.
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JOHN HANCOCK VARIABLE INSURANCE TRUST
Portfolio Subadviser Investment Objective
Ultra Short Term Bond Trust
 Series II 		Manulife Investment Management (US) LLC Seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital.
DEUTSCHE INVESTMENTS VIT FUNDS
Deutsche Equity 500 Index VIP
 Series B2 		Deutsche Investment Management Americas Inc.6 Seeks to replicate, as closely as possible, before the deduction of expenses, the performance of the Standard & Poor’s 500® Composite Stock Price Index (the “S&P 500® Index”)7, which emphasizes stocks of large U.S. companies.
1 The Active Bond Trust is subadvised by Declaration Management & Research LLC and Manulife Investment Management (US) LLC a division of Manulife Asset Management (US) LLC, with each subadviser subadvising approximately one half of the assets of the Portfolio. Since the Portfolio is only rebalanced periodically, the actual percentage of the Portfolio managed by each subadviser will vary.
2 High Yield Trust is sub-subadvised by Western Asset Management Company Limited.
3 RREEF America L.L.C. provides sub-subadvisory services to DIMA in its management of the Real Estate Securities Trust.
4 The Science and Technology Trust is subadvised by T. Rowe Price Associates, Inc. and Allianz Global Investors U.S. LLC, with each subadviser subadvising approximately one half of the assets of the Portfolio. Since the Portfolio is only rebalanced periodically, the actual percentage of the Portfolio managed by each subadviser will vary. This allocation may be changed at any time.
5 The Small Cap Opportunities Trust is subadvised by Dimensional Fund Advisors, LP and Invesco Aim Capital Management, Inc., with each subadviser subadvising approximately one half of the assets of the Portfolio. Since the Portfolio is only rebalanced periodically, the actual percentage of the Portfolio managed by each subadviser will vary.
6 Deutsche Equity 500 Index VIP is subadvised by Northern Trust Investments, Inc. (“NTI”).
7 “Standard & Poor’s” and “S&P 500” are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global. None of the Index Trusts are sponsored, endorsed, sold or promoted by any of these companies, and none of these companies or any of their respective affiliates make any representation regarding the advisability of investing in the Trust. As of February 28, 2019, the market capitalizations of companies included in the S&P 500 Index ranged from $4.8 billion to $860.6 billion.
Voting Interest
We will vote Portfolio shares held in a Separate Account at any Portfolio shareholder meeting in accordance with timely voting instructions received from the persons having the voting interest under the Contract. We will determine the number of Portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. We will arrange for voting materials to be distributed to each person having the voting interest under the Contract together with appropriate forms for giving voting instructions. If there are shares of a Portfolio held by a Subaccount for which we do not receive timely voting instructions, we will vote those shares in the same proportion as the total votes for all of our registered separate accounts for which we have received timely instructions, We will vote all Portfolio shares that we hold directly in our General Account in the same proportion as the total votes for all our registered separate accounts and those of any of our affiliates for which we have received timely instructions. One effect of this proportional voting is that a small number of Contract Owners can determine the outcome of a vote.
During the Accumulation Period, the Contract Owner has the voting interest under a Contract. We determine the number of votes for each Portfolio for which voting instructions may be given by dividing the value of the Investment Account corresponding to the Subaccount in which such Portfolio shares are held by the net asset value per share of that Portfolio.
During the Pay-out Period for a variable annuity option, the Annuitant has the voting interest under a Contract. We determine the number of votes as to each Portfolio for which voting instructions may be given by dividing the reserve for the Contract allocated to the Subaccount in which such Portfolio shares are held by the net asset value per share of that Portfolio. Generally, the number of votes tends to decrease as annuity payments progress because the amount of reserves attributable to a Contract will usually decrease after commencement of annuity payments.
We reserve the right to make any changes in the voting rights described above that may be permitted by the federal securities laws, regulations, or interpretations thereof.
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V.  Description of the Contract
Eligible Plans
Contracts may have been issued to fund plans qualifying for special income tax treatment under the Code, such as individual retirement accounts and annuities (“IRAs”), pension and profit-sharing plans for corporations and sole proprietorships/partnerships (“H.R. 10” and “Keogh” plans), tax-sheltered annuities, and state and local government deferred compensation plans (see “VII. Federal Tax Matters – Other Qualified Plans,” or you may request a copy of the SAI). The Contracts are not designed to fund a comingled account for multiple participants in a Qualified Plan. The Contracts are designed so that they may be used with nonqualified retirement plans, such as payroll savings plans and such other groups (with or without a trustee), or issued as individually owned nonqualified contracts, as may be eligible under applicable law.
You should consult with a qualified tax professional for more information if you are considering a conversion of your Qualified Contract to a Roth account. You should also consider that:
•  the Contracts are not designed to hold both Roth and non-Roth accounts; we do not separately account for any part of any Purchase Payments, Contract Value or any Annuity Payments as attributable to both a Roth account and a non-Roth account, even if permitted in your Qualified Plan, and that you or your plan administrator will be responsible for any tax related accounting required by such a split; and
•  any transfer of Contract Value from a Contract used to fund a non-Roth account to a Roth account permitted in your Qualified Plan (or from a Contract used to fund a Roth account to a non-Roth account) may incur withdrawal charges.
Please see “VII. Federal Tax Matters – General Information Regarding Qualified Contracts” for additional information about the use of the Contract in connection with Qualified Plans.
Eligibility Restrictions – Section 403(b) Plans. For information regarding Contracts issued for use in an existing retirement plan intended to qualify under section 403(b) of the Code (a “Section 403(b) Plan” or a “403(b) Plan”), please see “VII. Federal Tax Matters – Other Qualified Plans,” or you may request a copy of the SAI from the Annuities Service Center.
Beneficiary IRAs. For all Contracts that offered optional benefit Riders, effective February 2, 2009, we no longer allowed you to establish a new Beneficiary IRA that included any optional benefit Rider, nor do we allow anyone with an existing Beneficiary IRA that does not have an optional benefit Rider to subsequently elect any optional benefit Rider. The restriction includes all optional benefit Riders that were otherwise available under the Contract (where applicable, see Appendix B: “Optional Enhanced Death Benefits” Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits,” and Appendix D: “Optional Guaranteed Minimum Income Benefit(s),” to determine what optional benefit Riders, if any, were available).
We will continue to support existing Beneficiary IRAs that already include optional benefit Riders.
Eligible Groups. John Hancock USA has issued group contracts to Venture® Trust, as group holder for groups comprised of persons who have brokerage accounts with brokers having selling agreements with John Hancock Distributors LLC, the principal underwriter of the Contracts.
Accumulation Period Provisions
Purchase Payments
Restrictions on Additional Purchase Payments for Nonqualified Contracts with a Guaranteed Minimum Withdrawal Benefit Rider. Under our current administrative rules:
•  You may not make an Additional Purchase Payment, without our prior approval, after the first Contract Anniversary following the Rider Date.
•  (Contracts issued in New Jersey or Oregon) You may not make an Additional Purchase Payment, without our prior approval, if your total Additional Purchase Payments would exceed $100,000.
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Additional Purchase Payments for Nonqualified Contracts with a guaranteed minimum withdrawal benefit Rider are also subject to the following:
•  You may not make an Additional Purchase Payment, without our prior approval, if your Contract Value exceeds $1 million at the time of payment or if your Contract Value is less than $1 million and the Additional Purchase Payment would cause your Contract Value to exceed $1 million.
•  You may not make an Additional Purchase Payment if your GMWB Rider is in the Settlement Phase.
Restrictions on Additional Purchase Payments for Qualified Contracts (Including IRAs) with a Guaranteed Minimum Withdrawal Benefit Rider. Under our current administrative rules:
•  You may not make an Additional Purchase Payment, without our prior approval, at any time after the Age 65 Contract Anniversary on a Qualified Contract with a GMWB Rider.
•  (Contracts issued in New Jersey or Oregon) You may not make an Additional Purchase Payment, without our prior approval, after the later of the first Contract Anniversary following the Rider Date or the Age 65 Contract Anniversary if your total Additional Purchase Payments after the first Contract Anniversary would exceed $100,000.
Additional Purchase Payments for Qualified Contracts with a guaranteed minimum withdrawal benefit Rider are also subject to the following:
•  You may not make an Additional Purchase Payment, without our prior approval, if your Contract Value exceeds $1 million at the time of payment or if your Contract Value is less than $1 million and the Additional Purchase Payment would cause your Contract Value to exceed $1 million.
•  You may not make an Additional Purchase Payment after the oldest Covered Person becomes age 81 or if your GMWB Rider is in the Settlement Phase.
Additional Purchase Payments for Contracts Issued With or Without a Guaranteed Minimum Withdrawal Benefit Rider. Additional Purchase Payments must be at least $30. All Additional Purchase Payments must be in U.S. dollars.
We may provide for periodic Additional Purchase Payments to be automatically paid or transferred from your bank account, brokerage account or other account you hold at a similar financial institution (“Financial Account Plan”) or deducted from your paycheck (“Payroll Plan”) on a periodic basis. If an Additional Purchase Payment would cause your Contract Values in this Contract plus any other variable annuity contracts with the same Owner or Annuitant, issued by us or our affiliates (your “total contract values”), to exceed $1 million, or if your total contract values already exceed $1 million, you must obtain our prior approval in order to make the Purchase Payment.
Additional Purchase Payments made through Financial Account Plans and Payroll Plans. Under our current administrative rules, you may request us to accept periodic Additional Purchase Payments under the terms of a Contract issued without a GMWB Rider that are automatically paid or transferred from your Financial Account Plan or in connection with a Payroll Plan. Under our current administrative rules, we will continue to accept periodic Additional Purchase Payments for a Contract with a GMWB Rider when made in connection with a Financial Account Plan or Payroll Plan if:
•  the Financial Account Plan or Payroll Plan was in effect prior to May 4, 2012;
•  no automatic withdrawal program from your Contract is in effect; and
•  your GMWB Rider is not in the Settlement Phase.
For Qualified Contracts with a GMWB Rider, you may not make an Additional Purchase Payment under a Financial Account Plan or Payroll Plan after the oldest Covered Person becomes age 81.
Contracts Issued for Use With Tax-Qualified Retirement Plans. Whether you can make regular contributions to the contract will generally depend on whether you have the necessary earned income for the year. Other restrictions may apply depending on your plan. Restrictions may apply for Contracts issued for use in a retirement plan intended to qualify under section 403(b) of the Code. Please consult with a qualified tax professional for additional information.
Initial Purchase Payments. We no longer issue the Contracts and do not accept initial Purchase Payments for new Contracts. We provide information regarding initial Purchase Payment requirements for the Contracts in the SAI.
Approval of Additional Purchase Payment to Prevent Cancellation of Contracts. We will mail notice to you at your last known address if we intend to cancel a Contract, where permitted by state law, at the end of any two consecutive Contract
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Years (three for Contracts issued in New York) in which no Purchase Payments have been made, in order to allow you to make the necessary Additional Purchase Payment to keep your Contract in force.
If permitted by state law, we may cancel a Contract at the end of any two consecutive Contract Years (three for Contracts issued in New York) in which no Purchase Payments have been made, if both:
•  the total Purchase Payments made over the life of the Contract, less any withdrawals, are less than $2,000; and
•  the Contract Value at the end of such two-year period is less than $2,000.
In addition, if your account value becomes less than the annual administration and/or rider fee amounts, we may cancel your Contract, retaining any remaining value to cover a portion of the annual fee costs. If the Contract has a Rider, we will refund the income base amount in the form of a lump sum payment.
As a matter of administrative practice, the respective Company will attempt to notify you prior to any such cancellation in order to allow you to make the necessary Additional Purchase Payment (if not otherwise restricted) to keep your Contract in force. The cancellation of Contract provisions may vary in certain states to comply with the requirements of insurance laws and regulations in such states. If we cancel your Contract, we will pay you the Contract Value computed as of the period from one Business Day to the next (the “valuation period”) during which the cancellation occurs, minus the amount of any withdrawal charge, Rider fee and Unpaid Loan, and minus the $30 annual Contract fee. For IRAs, you must be eligible to make an IRA contribution. For any IRA benefit refund amounts over $200, you must receive prior notice for federal tax withholding election (and state where applicable). The amount paid is treated as a withdrawal for federal tax purposes and thus may be subject to income tax and to a 10% penalty tax (see “VII. Federal Tax Matters”).
Allocation of Purchase Payments. You designate how your Purchase Payments are to be allocated among the Investment Options (subject to the restrictions described below). You may change the allocation of Additional Purchase Payments at any time by notifying us in writing (or by telephone or electronically if you comply with our telephone or electronic transaction procedures described in “Telephone and Electronic Transactions” in this section, below).***
Restrictions on the Money Market Investment Option. You are not permitted to make new investments in the Money Market Investment Option. Transfers of amounts from other Investment Options into the Money Market Investment Option also are not permitted (please refer to “Transfers You May Make Among Investment Options” in this section, below). If you currently have Contract Value in the Money Market Investment Option, you may continue to keep that Contract Value in Money Market, but any transfer or withdrawal from Money Market cannot be replaced.
Restrictions on the Deutsche Equity 500 Index VIP Investment Option. You are not permitted to make new investments in the Deutsche Equity 500 Index VIP Investment Option. Transfers of amounts from other Investment Options into this Investment Option also are not permitted (please refer to “Transfers You May Make Among Investment Options” in this section, below). If you currently have Contract Value in the Deutsche Equity 500 Index VIP Investment Option, you may continue to keep that Contract Value in that Investment Option, but any transfer or withdrawal from it cannot be replaced. However, if you are enrolled in an Asset Rebalancing Program that includes scheduled transfers of Contract Value into the Deutsche Equity 500 Index VIP Investment Option, then the program will continue to make those transfers (see “Special Transfer Services − Asset Rebalancing Program” in this section, below).
Modification of Additional Purchase Payment Requirements. We may modify, suspend, waive or terminate our restrictions on Additional Purchase Payments at any time. This may include, but is not limited to, circumstances where:
•  you obtain our prior approval to make Additional Purchase Payments for Contracts with or without GMWB Riders, and we waive our restrictions; or
•  we impose additional restrictions on, or eliminate, your ability to make any Additional Purchase Payments through Financial Account Plans and/or Payroll Plans.
Payment Enhancement
The optional Payment Enhancement Rider (previously known as the optional “Payment Credit” Rider) was not available for John Hancock USA Contracts. The Payment Enhancement Rider was only available with Contracts issued in New York by John Hancock New York. You may only have elected the Payment Enhancement Rider at issue and, once elected, the Payment Enhancement Rider is irrevocable. The minimum initial Purchase Payment required to elect the Payment Enhancement Rider was $10,000. We imposed an additional fee for the Payment Enhancement Rider and Contracts with this feature are subject to a higher withdrawal charge for a longer period of time.
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If you elected the Payment Enhancement Rider, we will add a Payment Enhancement to your Contract when you make a Purchase Payment. The Payment Enhancement is equal to 4% of the Purchase Payment and is allocated among Investment Options in the same proportion as your Purchase Payment. For John Hancock New York Contracts issued on or after July 12, 2004 and prior to November 1, 2004, the Payment Enhancement is 5%. The Payment Enhancement Rider is funded from John Hancock New York’s General Account.
Purchase Payments Which Are Not Eligible for a Payment Enhancement. If the Owner’s Spouse is the Beneficiary, the Spouse continues the Contract as the new Owner and a death benefit is paid upon the death of the Spouse. For purposes of calculating this death benefit, the death benefit paid upon the first Owner’s death will be treated as a Purchase Payment to the Contract. Such Purchase Payment will not be eligible for a Payment Enhancement.
Tax Considerations. Payment Enhancements are not considered to be “investment in the contract” for income tax purposes (see “VII. Federal Tax Matters”).
Matters to Consider About the Payment Enhancement. There may be circumstances where you may be worse off for having purchased a Contract with a Payment Enhancement as opposed to a Contract without a Payment Enhancement. For example, the higher charges for a Contract with a Payment Enhancement may over time exceed the amount of the Payment Enhancement and any earnings thereon. Before making any allowable Additional Purchase Payments, you and your financial representative should consider:
•  The length of time that you plan to own your Contract;
•  The frequency, amount and timing of any partial surrenders; and
•  The amount and frequency of your Additional Purchase Payments.
We expect to make a profit from the Contracts. The charges used to recoup the expense of paying the Payment Enhancement include the withdrawal charge and the asset-based charges (see “VI. Charges and Deductions”).
If you are eligible and would like to make Additional Purchase Payments to a Contract in connection with certain Qualified Plans, then special considerations regarding the Payment Enhancement may apply. Corporate and self-employed pension and profit sharing plans, as well as tax-sheltered annuity plans, are subject to nondiscrimination rules. The nondiscrimination rules generally require that benefits, rights, or features of the plan not discriminate in favor of highly compensated employees. In evaluating whether Additional Purchase Payments to your Contract are suitable in connection with such a Qualified Plan, you should consider the effect of the Payment Enhancement on the plan’s compliance with the applicable nondiscrimination requirements. Violation of these nondiscrimination rules can cause loss of the plan’s tax favored status under the Code (see “VII. Federal Tax Matters – Other Qualified Plans”).
Additional Charges for the Payment Enhancement Rider. If you elected the Payment Enhancement Rider, the Separate Account annual expenses are increased by 0.35%. The guaranteed interest rate on Fixed Investment Options is reduced by 0.35%. In addition, each Purchase Payment will be subject to a higher withdrawal charge for a longer period of time. The maximum withdrawal charge if the Payment Enhancement Rider is elected is 8% (as opposed to 6% with no Payment Enhancement Rider) and the withdrawal charge period is 8 years if the Payment Enhancement Rider is elected (as opposed to 7 years with no Payment Enhancement Rider).
Accumulation Units
During the Accumulation Period, we establish an Investment Account for you for each Variable Investment Option to which you allocate a portion of your Contract Value. We credit amounts to those Investment Accounts in the form of “accumulation units” to measure the value of the variable portion of your Contract during the Accumulation Period. We calculate and credit the number of accumulation units in each of your Contract’s Investment Accounts by dividing (i) the amount allocated to that Investment Account by (ii) the value of an accumulation unit for that Investment Account we next compute after a purchase transaction is complete.
We usually credit an approved Additional Purchase Payment received by mail or wire transfer that we accept on the Business Day on which it is received in Good Order at our Annuities Service Center. We will promptly return any amount that we do not accept as an Additional Purchase Payment or that is otherwise not in Good Order.
We deduct accumulation units based on the value of an accumulation unit we next compute each time you make a withdrawal or transfer amounts from an Investment Option, and when we deduct certain Contract charges, pay death benefit proceeds, or apply amounts to an Annuity Option.
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Automated Transactions. Automated transactions include transfers under Dollar Cost Averaging and the Asset Rebalancing Program, pre-scheduled withdrawals or Purchase Payments, Required Minimum Distributions, substantially equal periodic payments under section 72(t) or 72(q) of the Code, transactions scheduled to occur on your Contract Anniversary, and annuity payments. Automated transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Business Day. In that case, the transaction will be processed and valued on the next Business Day unless, with respect to Required Minimum Distributions, substantially equal periodic payments under section 72(t) or 72(q) of the Code, and annuity payments only, the next Business Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Business Day.
Value of Accumulation Units
The value of your accumulation units will vary from one Business Day to the next depending upon the investment results of the Investment Options holding Contract assets. We arbitrarily set the value of an accumulation unit for each Subaccount on the first Business Day the Subaccount was established. We determine the value of an accumulation unit for any subsequent Business Day by multiplying (i) the value of an accumulation unit for the immediately preceding Business Day by (ii) the “net investment factor” for that Subaccount (described below) for the Business Day on which the value is being determined. We value accumulation units as of the end of each Business Day. We deem a Business Day to end, for these purposes, at the time a Portfolio determines the net asset value of its shares.
We use a Portfolio share’s net asset value at the end of a Business Day to determine the accumulation unit value for a Purchase Payment, withdrawal or transfer transaction only if:
•  your Purchase Payment transaction is complete before the close of daytime trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time) for that Business Day; or
•  we receive your request for a withdrawal or transfer of Contract Value at the Annuities Service Center before the close of daytime trading on the New York Stock Exchange for that Business Day.
Net Investment Factor
The net investment factor is an index used to measure the investment performance of a Subaccount over a valuation period. The net investment factor may be greater than, less than or equal to one; therefore, the value of an accumulation unit may increase, decrease or remain the same. The net investment factor for each Subaccount for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where:
(a)  is the net asset value per share of a Portfolio share held in the Subaccount determined at the end of the current valuation period, plus any dividends and distributions received per share during the current valuation period;
(b)  is the net asset value per share of a Portfolio share held in the Subaccount determined as of the end of the immediately preceding valuation period; and
(c)  is a factor representing the charges deducted from the Subaccount on a daily basis for Separate Account annual expenses.
Transfers You May Make Among Investment Options
During the Accumulation Period, you may transfer amounts among the Variable Investment Options, subject to the frequent trading restrictions set forth below.
You may make a transfer by providing written notice to us, by telephone or by other electronic means that we may provide through the internet (see “Telephone and Electronic Transactions,” below). We will cancel accumulation units from the Investment Account from which you transfer amounts and we will credit accumulation units to the Investment Account to which you transfer amounts. Your Contract Value on the date of the transfer will not be affected by a transfer. We reserve the right to require your transfers to be at least $300 or, if less, the entire value of the Investment Account. If after the transfer the amount remaining in the Investment Account is less than $100, then we may transfer the entire amount instead of the requested amount.
Currently, we do not impose a charge for transfer requests. The first twelve transfers in a Contract Year are free of any transfer charge. For each additional transfer in a Contract Year, we do not currently assess a charge but we reserve the right (to the extent permitted by your Contract) to assess a reasonable charge (not to exceed the lesser of $25 or 2% of the amount transferred) to reimburse us for the expenses of processing transfers.
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Frequent Transfer Restrictions. Investment Options in variable annuity and variable life insurance products can be a target for abusive transfer activity because these products value their Investment Options on a daily basis and allow transfers among Investment Options without immediate tax consequences. As a result, some investors may seek to transfer frequently into and out of Variable Investment Options in reaction to market news or to exploit some perceived pricing inefficiency. Whatever the reason, frequent transfer activity can harm long-term investors in a Variable Investment Option because such activity may expose a Variable Investment Option’s underlying Portfolio to increased Portfolio transaction costs and/or disrupt the Portfolio manager’s ability to effectively manage a Portfolio in accordance with its investment objective and policies, both of which may result in dilution with respect to interests held for long-term investment.
To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict transfers you make to two per calendar month per Contract, with certain exceptions, and have established procedures to count the number of transfers made under a Contract. Under the current procedures of the Separate Accounts, we count all transfers made during each Business Day as a single transfer. We do not count: (a) scheduled transfers made pursuant to our Dollar Cost Averaging program or our Asset Rebalancing Program, (b) transfers from a Fixed Investment Option at the end of its guarantee period, (c) transfers made within a prescribed period before and after a substitution of underlying Portfolios, or (d) transfers made during the Pay-out Period (these transfers are subject to a 30-day notice requirement, however, as described below in “Pay-out Period Provisions – Transfers During Pay-out Period”). Under each Separate Account’s policy and procedures, a Contract Owner may transfer Contract Value to the Ultra Short Term Bond Investment Option even if the Contract Owner reaches the two-transfers-per-month limit, as long as 100% of the Contract Value in all Variable Investment Options is transferred to the Ultra Short Term Bond Investment Option. If such a transfer to the Ultra Short Term Bond Investment Option is made, for a 30-calendar day period after such transfer, a Contract Owner may not make any subsequent transfers from the Ultra Short Term Bond Investment Option to another Variable Investment Option. We apply each Separate Account’s policy and procedures uniformly to all Contract Owners.
In addition to the transfer restrictions that we impose, the John Hancock Variable Insurance Trust and Deutsche Funds also have adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to a Portfolio upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy.
We reserve the right to take other actions to restrict trading, including, but not limited to:
•  restricting the number of transfers made during a defined period;
•  restricting the dollar amount of transfers;
•  restricting the method used to submit transfers (e.g., requiring transfer requests to be submitted in writing via U.S. mail); and
•  restricting transfers into and out of certain Subaccount(s).
In addition, we reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the Portfolios (see “Withdrawals” in this section, below, for details on what suspensions of redemptions may be permissible). We also reserve the right to modify or terminate the transfer privilege at any time (to the extent permitted by applicable law).
While we seek to identify and prevent disruptive frequent trading activity, it is not always possible to do so. Therefore, we cannot provide assurance that the restrictions we impose will be successful in restricting disruptive frequent trading activity and avoiding harm to long-term investors.
Maximum Number of Investment Options
There is no limit on the number of Investment Options to which you may allocate Purchase Payments.
Telephone and Electronic Transactions
We permit you to request transfers by telephone. You may also apply to request withdrawals by telephone. We additionally encourage you to access information about your Contract, request transfers and perform some transactions electronically through the internet. If you have not done so, we encourage you to register for electronic delivery of your transaction confirmations. Please contact us at the telephone number or internet address shown on the first page of this Prospectus for more information on electronic transactions.
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To access information and perform electronic transactions through our website, you will be required to create an account with a username and password, and maintain a valid e-mail address. You may also authorize other people to make certain transaction requests by telephone by sending us instructions in a form acceptable to us. If you register for electronic delivery, we keep your personal information confidential and secure, and we do not share this information with outside marketing agencies.
We are not liable for following instructions communicated by telephone or electronically that we reasonably believe to be genuine. We employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require you to provide information to verify your identity when you call us and we record all conversations with you. When someone contacts us by telephone and follows our procedures, we assume that you are authorizing us to act upon those instructions. For electronic transactions through the internet, you need to provide your username and password. You are responsible for keeping your password confidential and must notify us of:
•  any loss or theft of your password; or
•  any unauthorized use of your password.
We may be liable for any losses due to unauthorized or fraudulent instructions only where we fail to employ our procedures properly.
All transaction instructions we receive by telephone or electronically will be followed by either a hardcopy or electronic delivery of a transaction confirmation. Transaction instructions we receive by telephone or electronically before the close of any Business Day, will usually be effective at the end of that day. Your ability to access or transact business electronically may be limited due to circumstances beyond our control, such as system outages, or during periods when our telephone lines or our website may be busy. We may, for example, experience unusual volume during periods of substantial market change.
We may suspend, modify or terminate our telephone or electronic transaction procedures at any time. We may, for example, impose limits on the maximum Withdrawal Amount available to you through a telephone transaction. Also, as stated earlier in this Prospectus, we have imposed restrictions on transfers and reserve the right to take other actions to restrict trading, including the right to restrict the method used to submit transfers (e.g., by requiring transfer requests to be submitted in writing via U.S. mail). We also reserve the right to suspend or terminate the transfer privilege altogether with respect to anyone who we feel is abusing the privilege to the detriment of others.
Special Transfer Services – Dollar Cost Averaging Program
We administer a Dollar Cost Averaging (“DCA”) program. If you entered into a DCA agreement, you may have elected, at no cost, to automatically transfer on a monthly basis a predetermined dollar amount from any Variable Investment Option, or, if available, from a Fixed Investment Option we permitted for this purpose (the “DCA Source Investment Option”), to other Variable Investment Options (the “Destination Investment Options”), until the amount in the DCA Source Investment Option is exhausted. You may make Additional Purchase Payments (if not otherwise restricted) while you are enrolled in a DCA program. If you do not provide us with express written allocation instructions for these Additional Purchase Payments, no amounts will be allocated into your DCA Source Investment Option. Instead, they will be allocated among the Destination Investment Options according to the allocation you selected upon enrollment in the DCA program.
The DCA program allows investments to be made in equal installments over time in an effort to reduce the risk posed by market fluctuations. Therefore, you may achieve a lower purchase price over the long-term by purchasing more accumulation units of a particular Subaccount when the unit value is low, and less when the unit value is high. However, the DCA program does not guarantee profits or prevent losses in a declining market and requires regular investment regardless of fluctuating price levels. In addition, the DCA program does not protect you from market fluctuations in your DCA Source Investment Option. If you are interested in the DCA program, you may elect to participate in the program on a separate authorization form and obtain full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. You may elect out of the DCA program at any time. There is no charge for participation in the DCA program.
You should consult with your financial representative to assist you in determining whether the DCA program is suited for your financial needs and investment risk tolerance.
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Special Transfer Services – Asset Rebalancing Program
We administer an Asset Rebalancing Program which enables you to specify the allocation percentage levels you would like to maintain in particular Investment Options. We automatically rebalance your Contract Value pursuant to the schedule described below to maintain the indicated percentages by transfers among the Investment Options. (Fixed Investment Options are not eligible for participation in the Asset Rebalancing Program.) You must include your entire value in the Variable Investment Options in the Asset Rebalancing Program. Other investment programs, such as the DCA program, or other transfers or withdrawals may not work in concert with the Asset Rebalancing Program. Therefore, you need to monitor your use of these other programs and any other transfers or withdrawals while the Asset Rebalancing Program is being used. If you are interested in the Asset Rebalancing Program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in the Asset Rebalancing Program.
For rebalancing programs begun on or after October 1, 1996, we permit asset rebalancing only on the following time schedules:
•  quarterly on the 25th day of the last month of the calendar quarter (or the next Business Day if the 25th is not a Business Day);
•  semi-annually on June 25th and December 26th (or the next Business Day if these dates are not Business Days); or
•  annually on December 26th (or the next Business Day if December 26th is not a Business Day).
Rebalancing will continue to take place on the last Business Day of every calendar quarter for rebalancing programs begun prior to October 1, 1996.
Withdrawals
During the Accumulation Period, you may withdraw all or a portion of your Contract Value upon written request (complete with all necessary information) to the Annuities Service Center. You may make withdrawals by telephone, as described above under “Telephone and Electronic Transactions.” For certain Qualified Contracts, exercise of the withdrawal right may require the consent of the Qualified Plan participant’s Spouse under the Code. See the SAI for further information regarding the impact of withdrawals from section 403(b) Qualified Contracts. In the case of a total withdrawal, we will pay the Contract Value as of the date of receipt of the request at our Annuities Service Center, minus any Unpaid Loans and any applicable withdrawal charge, Rider charge, administrative fee, or tax. We will then cancel the Contract. In the case of a partial withdrawal, we will pay the amount requested and cancel accumulation units credited to each Investment Account equal in value to the Withdrawal Amount from that Investment Account.
When making a partial withdrawal, you may specify the Investment Options from which the withdrawal is to be made. The Withdrawal Amount requested from an Investment Option may not exceed the value of that Investment Option minus any applicable withdrawal charge. If you do not specify the Investment Options from which a withdrawal is to be taken, we take the withdrawal proportionally from all of your Variable Investment Options until exhausted, and then from the Fixed Investment Options beginning with the shortest guarantee period first and ending with the longest guarantee period last. For rules governing the order and manner of withdrawals from the Fixed Investment Options, see “Fixed Investment Options.”
We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. If you want to use a part of your Contract Value to purchase an immediate annuity contract, you must make a withdrawal request, which will be subject to any applicable withdrawal charge. Such a withdrawal may also have tax consequences.
There is no limit on the frequency of withdrawals; however, the amount withdrawn must be at least $300 or, if less, the entire balance in the Investment Option. If after the withdrawal (and deduction of any applicable withdrawal charge) the amount remaining in the Investment Option is less than $100, we reserve the right to treat the withdrawal as a withdrawal of the entire amount held in the Investment Option. If the Withdrawal Amount would reduce the Contract Value to less than $300 or the remaining withdrawal charge, if greater, we generally treat the withdrawal as a total withdrawal of the Contract Value. We currently enforce these Contract minimum restrictions only for Contracts that do not have a guaranteed minimum withdrawal benefit Rider or, where applicable, a guaranteed minimum income benefit Rider. We reserve the right to enforce these restrictions for other Contracts in the future.
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When we receive a withdrawal request in Good Order at our Annuities Service Center, we will pay the amount of any withdrawal from the Variable Investment Options promptly, and in any event within seven calendar days of receipt of the request. We reserve the right to defer the right of withdrawal or postpone payments for any period when:
•  the New York Stock Exchange is closed (other than customary weekend and holiday closings);
•  trading on the New York Stock Exchange is restricted;
•  an emergency exists, as determined by the SEC, as a result of which disposal of securities held in a Separate Account is not reasonably practicable or it is not reasonably practicable to determine the value of the Separate Accounts’ net assets;
•  pursuant to SEC rules, the Money Market Subaccount suspends payment of redemption proceeds in connection with a liquidation of the underlying Portfolio; or
•  the SEC, by order, so permits for the protection of security holders.
Applicable rules and regulations of the SEC shall govern as to whether trading is restricted or an emergency exists.
Impact of Divorce. In the event that you and your Spouse become divorced, we will treat any request to reduce or divide benefits under a Contract as a request for a withdrawal of Contract Value. The transaction may be subject to any applicable tax or withdrawal charge. Also, for Contracts issued with an optional guaranteed minimum withdrawal benefit Rider, your guarantee may be reduced.
Tax Considerations. Withdrawals from the Contract may be subject to income tax and a 10% penalty tax. Withdrawals are permitted from Contracts issued in connection with Section 403(b) Plans only under limited circumstances (see “VII. Federal Tax Matters – Other Qualified Plans”).
Signature Guarantee Requirements for Surrenders and Withdrawals
(Not applicable to Contracts issued in New Jersey)*
We may require that you provide a signature guarantee on a withdrawal or surrender request in the following circumstances:
•  you have no signed application on file with us; or
•  you are requesting that we mail the amount withdrawn to an alternate address; or
•  you have changed your address within 30 days of the withdrawal or surrender request; or
•  you are requesting a withdrawal or surrender in the amount of $250,000 or greater.
We must receive the original signature guarantee on your withdrawal or surrender request. We do not accept copies or faxes of a signature guarantee. You may obtain a signature guarantee at most banks, financial institutions or credit unions. A notarized signature is not the same as a signature guarantee and does not satisfy this requirement. There may be circumstances, of which we are not presently aware, in which we would not impose a signature guarantee on a surrender or withdrawal as described above.
*For New Jersey residents, we do not require a signature guarantee to process a withdrawal and send to the address of record, but we will not send the withdrawal payment via EFT unless we receive a signature guarantee.
Special Withdrawal Services – The Income Plan
We administer an Income Plan (“IP”) that permits you to pre-authorize a periodic exercise of the Contractual withdrawal rights described above. After entering into an IP agreement, you may instruct us to withdraw a level dollar amount from specified Investment Options on a periodic basis. We limit the total of IP withdrawals in a Contract Year to not more than 10% of the Purchase Payments made (to ensure that no withdrawal or market value charge, where applicable, will ever apply to an IP withdrawal). If additional withdrawals outside the IP program are taken from a Contract in the same Contract Year in which an IP program is in effect, IP withdrawals taken after the withdrawal charge–free Withdrawal Amount has been exceeded are subject to a withdrawal charge, where applicable. The IP is not available to Contracts for which Purchase Payments are being automatically deducted from a bank account on a periodic basis. IP withdrawals will be free of market value charges, where applicable. We reserve the right to suspend your ability to make Additional Purchase Payments while you are enrolled in an IP. IP withdrawals, like other withdrawals, may be subject to income tax and a 10% penalty tax. If you are interested in an IP, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in the IP program.
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Special Withdrawal Services - The Income Made Easy Program
Our Income Made Easy Program provides you with an automatic way to access guaranteed withdrawal amounts if you purchased a GMWB Rider with a Contract. There is no charge for participation in this program. Please read “Pre-authorized Withdrawals – The Income Made Easy Program” in Appendix C for more information.
Optional Guaranteed Minimum Withdrawal Benefits
Please see Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for a general description of the Principal Plus (formerly known as “Guaranteed Principal Plus”) and Principal Plus for Life (formerly known as “Guaranteed Principal Plus for Life”) optional benefit Riders that may provide guaranteed minimum withdrawal benefits under the Contract you purchased. In addition, Appendix C includes a general description of the Income Plus For Life® Series, Principal Plus for Life Plus Automatic
Annual Step-Up, and Principal Returns optional benefits Riders for which you may have been eligible to exchange a previously purchased guaranteed minimum withdrawal benefit Rider. We currently do not make any of our GMWB Riders available for purchase or exchange to existing Contract Owners. Under these optional benefit Riders, we guarantee that you may withdraw a percentage of your investment each year, even if your Contract Value reduces to zero. We increase the amounts we guarantee by a Credit (also referred to as a “Bonus”) if you choose not to make any withdrawals at all during certain Contract Years. Depending on market performance, you may also be able to increase or “step up” the amounts we guarantee on certain dates. If you withdraw more than a guaranteed annual amount, however, we reduce the amounts we guarantee for future withdrawals.
Death Benefit During Accumulation Period
The Contracts described in this Prospectus generally provide for distribution of death benefits if the Owner dies before the Annuity Commencement Date.
Amount of Death Benefit. If any Owner dies, the Death Benefit payable under the Contract will be the greater of:
•  the Contract Value; or
•  the Minimum Death Benefit.
If there is any Debt, the Death Benefit equals the amount described above less the Debt under the Contract. If the oldest Owner was less than 81 years old on the Contract Date, the Minimum Death Benefit will be determined as follows:
•  During the first Contract Year, the Minimum Death Benefit will be the sum of all Purchase Payments made, less any amount deducted in connection with withdrawals.
•  During any subsequent Contract Year, the Minimum Death Benefit will be the greater of (i) or (ii), where:
(i)  is the sum of all Purchase Payments made, less any amount deducted in connection with withdrawals; and
(ii)  is the greatest Anniversary Value prior to the oldest Owner's turning age 81.
•  The Anniversary Value is equal to the Contract Value on a Contract Anniversary, increased by all Purchase Payments made, less any amount deducted in connection with withdrawals, since that Contract Anniversary.
If the oldest Owner is age 81 or greater on the Contract Date, the Minimum Death Benefit will be the sum of all Purchase Payments made, less any amount deducted in connection with withdrawals.
The amount deducted in connection with withdrawals will be on a pro rata basis and will be equal to (i) multiplied by (ii) where:
(i)  is equal to the death benefit prior to the withdrawal; and
(ii)  is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Payment of Death Benefit. The determination of the death benefit will be made on the date we receive written notice and “proof of death,” as well as all required claims forms in Good Order from all Beneficiaries, at our Annuities Service Center. No one is entitled to the death benefit until this time. Proof of death occurs when we receive one of the following at our Annuities Service Center:
•  a certified copy of a death certificate; or
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•  a certified copy of a decree of a court of competent jurisdiction as to the finding of death; or
•  any other proof satisfactory to us.
If any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant.
Distribution of Death Benefits. The following discussion applies principally to distribution of death benefits upon the death of an Owner under Contracts that were not issued in connection with Qualified Plans, i.e., Nonqualified Contracts. Tax law requirements applicable to Qualified Plans, including IRAs, and the tax treatment of amounts held and distributed under such plans, are quite complex. Accordingly, if your Contract is used in connection with a Qualified Plan, please seek competent legal and tax advice regarding requirements governing the distribution of benefits, including death benefits, under the plan.
In designating Beneficiaries you may impose restrictions on the timing and manner of payment of death benefits. The description of death benefits in this Prospectus does not reflect any of the restrictions that could be imposed, and it should be understood as describing what will happen if the Contract Owner chooses not to restrict death benefits under the Contract. If the Contract Owner imposes restrictions, those restrictions will govern payment of the death benefit to the extent permitted by the Code and by Treasury Department regulations.
We will pay the death benefit to the Beneficiary if any Contract Owner dies before the earlier of the Maturity Date or the Annuity Commencement Date. If there is a surviving Contract Owner, that Contract Owner will be deemed to be the Beneficiary. No death benefit is payable on the death of any Annuitant, except that if any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant.
Upon request, the death benefit proceeds may be taken in the form of a lump sum. In that case, we will pay the death benefits within seven calendar days of the date that we determine the amount of the death benefit, subject to postponement under the same circumstances for which payment of withdrawals may be postponed (see “Withdrawals” above). Beneficiaries who opt for a lump sum payout of their portion of the death benefit may choose to receive the funds either in a single check or wire transfer or in a John Hancock Safe Access Account (“JHSAA”). Similar to a checking account, the JHSAA provides the Beneficiary access to the payout funds via a checkbook, and account funds earn interest at a variable interest rate. Any interest paid may be taxable. The Beneficiary can obtain the remaining death benefit proceeds in a single sum at any time by cashing one check for the entire amount. The Beneficiary may draw a check on the JHSAA that is payable to himself/herself as well as to other persons or parties. Note, however, that a JHSAA is not a true checking account, but is solely a means of distributing the Contract’s death benefit. The Beneficiary can make only withdrawals, and not deposits. The JHSAA is part of our General Account; it is not a bank account and it is not insured by the FDIC or any other government agency. As part of our General Account, it is subject to the claims of our creditors. We receive a benefit from all amounts left in the JHSAA.
If the Beneficiary does not choose a form of payment, or the death benefit payable upon the death of an Owner is not taken immediately, the Contract continues, subject to the following:
•  The Beneficiary becomes the Owner.
•  We allocate any excess of the death benefit over the Contract Value to the Owner’s Investment Accounts in proportion to their relative values on the date of receipt by us of due proof of the Owner’s death.
•  No Additional Purchase Payments may be made (even if the Beneficiary is a surviving Spouse).
•  We waive withdrawal charges for all future distributions.
•  If the deceased Owner’s Beneficiary is a surviving Spouse, he or she may continue the Contract as the new Owner without triggering adverse federal tax consequences. In such a case, the distribution rules applicable when a Contract Owner dies will apply when the Spouse, as the Owner, dies. In addition, a death benefit will be paid upon the death of the Spouse. For purposes of calculating the death benefit payable upon the death of the Spouse (excluding any optional benefits), we will treat the death benefit paid upon the first Owner’s death as a Purchase Payment to the Contract. In addition, all Purchase Payments made and all amounts deducted in connection with withdrawals prior to the date of the first Owner’s death will be excluded from consideration in the determination of the Spouse’s death benefit.
•  If the Beneficiary is not the deceased Owner’s Spouse, distribution of the Owner’s entire interest in the Contract must be made within five years of the Owner’s death, or alternatively, an individual Beneficiary may take distributions as an annuity, under one of the Annuity Options described below, which begins within one year after the Owner’s death and
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  is payable over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary (see “Annuity Options” below). Note: we continue to assess the mortality and expense risks charge during this period, even though we bear only the expense risk and not any mortality risk (see “VI. Charges and Deductions – Mortality and Expense Risks Fee”). If distribution is not made within five years and the Beneficiary has not specified one of the above forms of payment, we will distribute a lump sum cash payment of the Beneficiary’s portion of the death benefit. Also, if distribution is not made as an annuity, upon the death of the Beneficiary, any remaining death benefit proceeds will be distributed immediately in a single sum cash payment.
•  Alternatively, if the Contract is not a Qualified Contract, an individual Beneficiary may take distribution of the Owner’s entire interest in the Contract as a series of withdrawals over the Beneficiary’s life expectancy, beginning one year after the Owner’s death. If this form of distribution is selected, the Beneficiary may not reduce or stop the withdrawals, but may in any year withdraw more than the required amount for that year. If life expectancy withdrawals have been selected and the initial Beneficiary dies while value remains in the Contract, a successor Beneficiary may either take a lump sum distribution of the remaining balance or continue periodic withdrawals according to the original schedule based on the initial Beneficiary’s life expectancy.
We may change the way we calculate the death benefit if you substitute or add any Contract Owner. If we do, the new death benefit will equal the Contract Value as of the date of the ownership change. We will also treat the Contract Value on the date of the change as a “Purchase Payment” made on that date for any subsequent calculations of the death benefit prior to the Annuity Commencement Date, and we will not consider any Purchase Payments made and any amounts deducted in connection with withdrawals prior to the date of the ownership change in our determination of the death benefit. We will not change the way we calculate the death benefit if the person whose death will cause the death benefit to be paid is the same after the ownership change or if you transfer ownership to the Owner’s Spouse.
A change of Contract Owner may be a taxable event if the Owner or co-Owner before the change is an individual and the new Owner or co-Owner is not a Spouse of the previous Owner (or co-Owner). Please consult with your own qualified tax professional for further information relevant to your situation.
Optional Enhanced Death Benefits
Please see Appendix B: “Optional Enhanced Death Benefits” for a general description of the following optional benefit Riders that may enhance death benefits under the Contract you purchased. For Contracts issued in connection with a Qualified Plan, including an IRA, the Internal Revenue Code may now limit the availability of certain “Optional Enhanced Death Benefits” for certain classes of Beneficiaries.
Annual Step-Up Death Benefit. Under the Annual Step-Up Death Benefit Rider, the Company guarantees a minimum death benefit up to the Maturity Date based on the Contract’s highest “Anniversary Value” that may be achieved before you (or any joint Owner) reach 81 years old. The Annual Step-Up Death Benefit was available only if you (and every joint Owner) were under age 80 when we issued the Contract. The Rider cannot be revoked once elected.
Enhanced Earnings Death Benefit. (Not available in New York or Washington.) Under the Enhanced Earnings Rider, John Hancock USA guarantees that upon the death of any Contract Owner prior to the Maturity Date, John Hancock USA will increase the death benefit otherwise payable under the Contract by a percentage of earnings, up to a maximum amount. Under the Enhanced Earnings Rider, John Hancock USA increases the death benefit by 40% of the appreciation in the Contract Value upon the death of any Contract Owner if you (and every joint Owner) were less than 70 years old when we issued a Contract, and by 25% of the appreciation in the Contract Value if you (or any joint Owner) were 70 or older at issue. John Hancock USA reduces the “appreciation in the Contract Value” proportionally in connection with withdrawals of Contract Value and, in the case of certain Qualified Contracts, by the amount of any Unpaid Loans under a Contract. The Enhanced Earnings Death Benefit was available only at Contract issue and cannot be revoked once elected.
Accelerated Beneficiary Protection Death Benefit. (Not available in New York or Washington) John Hancock USA offered the Accelerated Beneficiary Protection Death Benefit Rider between December 2003 and December 2004. The Accelerated Beneficiary Protection Death Benefit provides a guaranteed death benefit amount which can be increased or decreased as provided in the Rider. The Accelerated Beneficiary Protection Death Benefit replaces any other death benefit under the Contract. The Accelerated Beneficiary Protection Death Benefit Rider was available only at Contract issue. It cannot be revoked if you elected it. Once the Accelerated Beneficiary Protection Death Benefit is elected, the Owner may only be changed to an individual who is the same age or younger than the oldest current Owner.
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Pay-out Period Provisions
General
Generally, the Contracts contain provisions for the commencement of annuity payments to the Annuitant up to the Contract’s Maturity Date (the “Annuity Commencement Date” is the first day of the Pay-out Period). The Maturity Date is the date shown on your Contract’s specifications page, unless we have approved a change. For John Hancock USA Contracts, there is no contractual limit on when the earliest Annuity Commencement Date may be set. For John Hancock New York Contracts, the earliest allowable Annuity Commencement Date is one year from the Contract Date. If no date is specified, the Maturity Date is the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary (“Default Maturity Date”). You may request a different Maturity Date at any time, by written request or by telephone at the number listed on the first page of this Prospectus, at least one month before both the current and new Maturity Dates. You may also be able to change your Maturity Date on our website, www.jhannuities.com, if:
•  you are registered on the website, and
•  your Contract is active, and not owned by a custodian or continued by a surviving Spouse or Beneficiary.
Under our current administrative procedures, the new Maturity Date may not be later than the Default Maturity Date unless we consent otherwise.
Annuity Commencement and Maturity Dates which occur when the Annuitant is at an advanced age, e.g., past age 90, may have adverse income tax consequences. Please consult with your own qualified tax professional for information about potential adverse tax consequences for such Maturity Dates. For Qualified Contracts, distributions may be required before the Maturity Date (see “VII. Federal Tax Matters – General Information Regarding Qualified Contracts – Required Minimum Distributions”).
Notice of Maturity Date. We will send you one or more notices at least 30 days before your scheduled Maturity Date and request that you verify information we currently have on file. If you do not choose an Annuity Option, do not make a total withdrawal of the Surrender Value, or do not ask us to change the Maturity Date to a later date, we will provide as a default an Annuity Option in the form of a life annuity with monthly payments guaranteed for ten years, as described in “Annuity Options offered in the Contract” below. The Annuity Commencement Date will be the Maturity Date. However, if the Contract Value on the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value in one lump sum to the Annuitant.
A Contract issued in New York by John Hancock New York has as its Maturity Date the date the oldest Annuitant turns age 90, unless the Contract’s specifications page states otherwise or you later change the date.
When John Hancock USA issued a Contract outside New York, the Maturity Date is the first day of the month following the later of the 85th birthday of the oldest Annuitant or the tenth Contract Anniversary.
Please review your Contract carefully to determine the Maturity Date applicable to your Contract.
You may select the frequency of annuity payments. However, if the Contract Value at the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value, minus any Unpaid Loans, in one lump sum to the Annuitant on the Annuity Commencement Date.
For Contracts offered through authorized representatives of certain selling firms, you cannot change either the Maturity Date or the Annuity Commencement Date to a date beyond the 95th birthday of the oldest Annuitant if the Contract is either:
•  a Nonqualified Contract, or
•  a Qualified Contract, unless the selling firm or an affiliate of the selling firm sponsors the Qualified Plan or serves as a custodian to the Qualified Plan.
Annuity Options
Annuity payments are available under the Contract on a fixed, variable, or combination fixed and variable basis. At any time during the Accumulation Period (after the first Contract Year in New York), you may select one or more of the Annuity Options described below on a fixed and/or variable basis or choose an alternate form of payment acceptable to us. A Beneficiary may also elect to apply the Death Benefit to an Annuity Option. We apply your entire Contract Value or the Beneficiary’s entire portion of the Death Benefit proceeds to the Annuity Option(s) selected. We do not permit you to apply
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any amount less than your entire Contract Value to the Annuity Options available under your Contract. If you request to use a part of your Contract Value to purchase an immediate annuity contract, we will treat the request as a withdrawal request, subject to any applicable withdrawal charge. Such a withdrawal may also have tax consequences. You may select the frequency of annuity payments. However, if the Contract Value at the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value in one lump sum to the Annuitant on the Annuity Commencement Date. We deduct a pro rata portion of the administration fee from each annuity payment.
We determine annuity payments based on the Investment Account value of each Investment Option at the Annuity Commencement Date. If you do not select an Annuity Option, we will provide as a default a combination fixed and variable Annuity Option in the form of a life annuity with payments guaranteed for ten years. The Internal Revenue Code or the United States Treasury Regulations may preclude the availability of certain Annuity Options in connection with certain Qualified Contracts.
Once annuity payments commence:
•  you are no longer permitted to make any withdrawals under the Contract;
•  you are no longer permitted to make or receive any withdrawals under a guaranteed minimum withdrawal benefit Rider;
•  we may not change the Annuity Option or the form of settlement; and
•  your Guaranteed Minimum Death Benefit terminates.
Please read the description of each Annuity Option carefully. In general, a non-refund life annuity provides the highest level of payments. However, because there is no guarantee that any minimum number of payments will be made, an Annuitant might receive only one payment if the Annuitant dies prior to the date the second payment is due. You may also elect annuities with payments guaranteed for a certain number of years but the amount of each payment will be lower than that available under the non-refund life Annuity Option.
Annuity Options offered in the Contract. The Contracts guarantee the availability of the following Annuity Options:
Option 1(a): Non-Refund Life Annuity – An annuity with payments during the lifetime of the Annuitant. No payments are due after the death of the Annuitant. Because we do not guarantee that we will make any minimum number of payments, an Annuitant might receive only one payment if the Annuitant dies prior to the date the second payment is due.
Option 1(b): Life Annuity with Payments Guaranteed for 10 Years – An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if the Annuitant dies prior to the end of the tenth year.
Option 2(a): Joint & Survivor Non-Refund Life Annuity – An annuity with payments during the lifetimes of the Annuitant and a designated co-Annuitant. No payments are due after the death of the last survivor of the Annuitant and co-Annuitant. Because we do not guarantee that we will make any minimum number of payments, an Annuitant or co-Annuitant might receive only one payment if the Annuitant and co-Annuitant die prior to the date the second payment is due.
Option 2(b): Joint & Survivor Life Annuity with Payments Guaranteed for 10 Years – An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetimes of the Annuitant and a designated co-Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if both the Annuitant and the co-Annuitant die prior to the end of the tenth year.
Additional Annuity Options. When you annuitize, we may offer one or more Annuity Options in addition to the ones we are contractually obligated to make available.
Additional Annuity Options for Contracts with a Guaranteed Minimum Withdrawal Benefit Rider. When you annuitize, we may make one or more additional Annuity Options available to a Contract with one of our guaranteed minimum withdrawal benefit (“GMWB”) Riders (i.e., an Income Plus For Life®, Income Plus For Life – Joint Life®, Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up, or Principal Returns optional benefit Rider, as described in Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits”). If you purchased a Contract with a GMWB Rider, you may select the additional Annuity Options shown below. Unless we permit otherwise, these additional Annuity Options are only available for Maturity Dates that coincide with the first day of the month following the later of the 85th birthday of the oldest Annuitant or the tenth Contract Anniversary.
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GMWB Alternate Annuity Option 1: Lifetime Income Amount with Cash Refund – This Annuity Option is available if you purchased a Contract with one of the Income Plus For Life® or an Income Plus For Life – Joint Life® Series Riders. For the Income Plus For Life – Joint Life® Rider, this Annuity Option is available only if one Covered Person, not two, remains on the Rider at the Annuity Commencement Date. Under this option, we will make annuity payments during the lifetime of the Annuitant. After the death of the Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of:
•  the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the GMWB Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under a life with cash refund annuity.
GMWB Alternate Annuity Option 2: Joint & Survivor Lifetime Income Amount with Cash Refund – This Annuity Option is available if you purchased a Contract with one of the Income Plus For Life – Joint Life® Riders and both Covered Persons remain on the Rider at the Annuity Commencement Date. Under this option, we will make annuity payments during the joint lifetimes of the co-Annuitants. After the death of the last surviving Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of:
•  the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the GMWB Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under a joint life with cash refund annuity.
GMWB Alternate Annuity Option 3: Fixed Annuity with Period Certain – This Annuity Option is available if you purchased a Contract with the Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up or Principal Returns optional benefit Rider. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetime of a single Annuitant. We determine the certain period by dividing the Benefit Base (may be referred to as the “Guaranteed Withdrawal Balance” in your Rider) at the Annuity Commencement Date by the amount of the annual annuity payment we determine for this option. This period will be rounded to the next higher month.
We determine the annual amount of Fixed Annuity payments under this option as the greater of:
•  the Lifetime Income Amount on the Maturity Date, if any, as provided by the GMWB Rider that you purchased with your Contract; or
•  the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 1(a): Non- Refund Life Annuity.
GMWB Alternate Annuity Option 4: Fixed Period Certain Only - This Annuity Option is available only if:
•  you purchased a Contract with a Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up, or a Principal Returns optional benefit Rider; and
•  there is no Lifetime Income Amount remaining (or none has been determined) at the Annuity Commencement Date.
This Annuity Option provides a Fixed Annuity with payments guaranteed for a certain period and no payments thereafter. Under this option, we determine the certain period by dividing the Benefit Base (may be referred to as the “Guaranteed Withdrawal Balance” in your Rider) at the Maturity Date by the Guaranteed Withdrawal Amount at the Annuity Commencement Date. This period will be rounded to the next higher month. (If the period certain is less than 5 years, we may pay the benefit as a lump sum equal to the present value of the annuity payments at the rate of interest for Annuity Options as described in the Contract.)
We determine the annual amount of Fixed Annuity payments under this option as the greater of:
•  the Guaranteed Withdrawal Amount on the Annuity Commencement Date as provided by the Principal Plus, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up or the Principal Returns Rider that you purchased with your Contract; or
•  the annual amount for a Fixed Annuity with the same period certain that we determine for this option, but based on the interest rate for Annuity Options described in your Contract.
    
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Once annuity payments begin under an Annuity Option, you cannot make any additional withdrawals under a Contract with a GMWB Rider.
Fixed Annuity Options. Upon death (subject to the distribution of death benefits provisions; see “Death Benefit During Accumulation Period”), withdrawal or the Maturity Date of the Contract, the proceeds may be applied to a Fixed Annuity Option.
We determine the amount of each Fixed Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase the Fixed Annuity to the appropriate annuity factor table in the Contract. If the table we are currently using is more favorable to you, we will substitute that table. If you choose an Annuity Option that is not guaranteed in the Contract, we will use the appropriate table that we are currently offering. We guarantee the dollar amount of Fixed Annuity payments.
We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. If you request to use a part of your Contract Value to purchase an immediate annuity contract, we will treat the request as a withdrawal request, subject to any applicable withdrawal charge. Such a withdrawal may also have tax consequences.
Determination of Amount of the First Variable Annuity Payment
We determine the first Variable Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase a Variable Annuity to the annuity factor tables contained in the Contract. If the table we are currently using is more favorable to you, we will substitute that table. We will determine the amount of the Contract Value as of the date not more than ten Business Days prior to the Annuity Commencement Date. We will reduce Contract Value used to determine annuity payments by any applicable premium taxes.
The rates contained in the annuity tables vary with the Annuitant’s sex and age and the Annuity Option selected. However, we may not use sex-distinct tables for Contracts issued in connection with certain employer-sponsored retirement plans, or with Contracts issued in Montana. The longer the life expectancy of the Annuitant under any life Annuity Option or the longer the period for which payments are guaranteed under the option, the smaller the amount of the first monthly Variable Annuity payment will be.
Annuity Units and the Determination of Subsequent Variable Annuity Payments
We base Variable Annuity payments after the first one on the investment performance of the Subaccounts selected during the Pay-out Period. The amount of a subsequent payment is determined by dividing the amount of the first annuity payment from each Subaccount by the Annuity Unit value of that Subaccount (as of the same date the Contract Value to effect the annuity was determined) to establish the number of Annuity Units which will thereafter be used to determine payments. This number of Annuity Units for each Subaccount is then multiplied by the appropriate Annuity Unit value as of a uniformly applied date not more than ten Business Days before the annuity payment is due, and the resulting amounts for each Subaccount are then totaled to arrive at the amount of the annuity payment to be made. The number of Annuity Units generally remains constant throughout the Pay-out Period (assuming no transfer is made).
We charge the same Annual Separate Account Expenses during the annuitization period as we do during the Accumulation Period. We determine the “net investment factor” for an Annuity Unit in the same manner as we determine the net investment factor for an accumulation unit (see “Value of Accumulation Units” and “Net Investment Factor” in this section, above). The value of an Annuity Unit for each Subaccount for any Business Day is determined by multiplying the Annuity Unit value for the immediately preceding Business Day by the net investment factor for that Subaccount (see “Net Investment Factor”) for the valuation period for which the Annuity Unit value is being calculated and by a factor to neutralize the assumed interest rate. Generally, if the net investment factor is greater than the assumed interest rate, the payment amount will increase. If the net investment factor is less than the assumed interest rate, the payment amount will decrease.
We build a 3% assumed interest rate into the annuity tables in the Contract used to determine the first Variable Annuity payment. The smallest annual rate of investment return which is required to be earned on the assets of the Separate Account so that the dollar amount of Variable Annuity payments will not decrease is 4.04%.
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Transfers During the Pay-out Period
Once Variable Annuity payments have begun, you may transfer all or part of the investment upon which those payments are based from one Subaccount to another. You must submit your transfer request to our Annuities Service Center at least 30 days before the due date of the first annuity payment to which your transfer will apply. We make transfers after the Annuity Commencement Date by converting the number of Annuity Units being transferred to the number of Annuity Units of the Subaccount to which the transfer is made, so that the next annuity payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the Annuity Units for the new Subaccount selected. We reserve the right to limit, upon notice, the maximum number of transfers a Contract Owner may make to four per Contract Year. Once annuity payments have commenced, a Contract Owner may not make transfers from a Fixed Annuity Option to a Variable Annuity Option or from a Variable Annuity Option to a Fixed Annuity Option. In addition, we reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of a Portfolio. We also reserve the right to modify or terminate the transfer privilege at any time in accordance with applicable law.
Death Benefit During the Pay-out Period
If an Annuity Option providing for payments for a guaranteed period has been selected, and the Annuitant dies during the Pay-out Period, we make the remaining guaranteed payments to the Beneficiary. We make any remaining payments as rapidly as under the method of distribution being used as of the date of the Annuitant’s death. If no Beneficiary is living, we commute any unpaid guaranteed payments to a single sum (on the basis of the interest rate used in determining the payments) and pay that single sum to the estate of the last to die of the Annuitant and the Beneficiary.
We do not make any payments to a Beneficiary, however, if the last surviving Covered Person dies while we are making payments under an Annuity Option providing only for payments for life, or payments during the Settlement Phase under an optional GMWB Rider. Please read Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for additional information.
Optional Guaranteed Minimum Income Benefits
Please see Appendix D: “Optional Guaranteed Minimum Income Benefits” for a general description of the Optional Guaranteed Retirement Income Benefit Riders that may enhance guaranteed income benefits under the Contract you purchased. These optional benefit Riders guarantee a minimum lifetime fixed income benefit in the form of fixed monthly annuity payments. We base the guarantee on an amount called the “Income Base,” which can be increased or decreased as provided in the Riders. The Guaranteed Retirement Income Benefit Riders were available only at Contract issue. The Riders cannot be revoked once elected.
Other Contract Provisions
Ownership
Prior to the Maturity Date, the Contract Owner is the person(s) designated in the specifications page or as subsequently named. On and after the Annuity Commencement Date, the Annuitant is the Contract Owner. If amounts become payable to any Beneficiary under the Contract, the Beneficiary is the Contract Owner.
You must make any requests to change ownership in writing and we must receive such written change at the Annuities Service Center. We reserve the right to approve or disapprove any change.
Before requesting a change of ownership or making an assignment of your Contract, please consider the following:
•  A change of ownership or a collateral assignment may be treated as a distribution from the Contract and subject to tax. We consider a collateral assignment to be a distribution from the Contract, and we will report any taxable amounts as may be required.
•  In states where permitted, a change of ownership may result in termination of any applicable minimum withdrawal benefit guarantee. (If you purchased a GMWB Rider, you can get more information from Appendix D: “Optional Guaranteed Minimum Withdrawal Benefits.”)
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•  An addition of any Contract Owner may result in a reduction of the death benefit. We may reset the death benefit to an amount equal to the Contract Value as of the date of the change of ownership, and treat that amount as a “Purchase Payment” made on the same date for purposes of computing further adjustments to the amount of the death benefit.
•  In states where permitted, a substitution of any Contract Owner may result in a reduction of the death benefit. We may reset the death benefit to an amount equal to the Contract Value.
•  A change of ownership (or collateral assignment) is subject to the rights of any irrevocable Beneficiary.
•  You may not change ownership or make a collateral assignment after the earlier of the Maturity Date or the Annuity Commencement Date.
•  Contracts issued to a Qualified Plan may be subject to restrictions on transferability. For example, Qualified Contracts generally may not be transferred except by the trustee of an exempt employees’ trust which is part of a retirement plan qualified under section 401 of the Code or as otherwise permitted by applicable Treasury Department regulations. You may not be able to sell, assign, transfer, discount or pledge (as collateral for a loan or as security for the performance of an obligation, or for any other purpose) a Qualified Contract to any person other than us.
We assume no liability for any payments made or actions taken before a change is approved or an assignment is received or accepted (as applicable in the state where your Contract was issued). We assume no responsibility for the validity or sufficiency of any assignment. An absolute assignment or ownership change will revoke the interest of any revocable Beneficiary. Any resulting “Purchase Payment” will not be included in cumulative Purchase Payments and is not eligible for a Payment Enhancement, where available.
Group Contracts (John Hancock USA Contracts only). An eligible member of a group to which a group contract has been issued may have become an Owner under the Contract by submitting a completed application, if required by us, and a minimum Purchase Payment. If so, we issued a Contract summarizing the rights and benefits of that Owner under the group contract, or we issued an individual Contract to an applicant acceptable to us. We reserved the right to decline to issue a Contract to any person in our sole discretion. All rights and privileges under the Contract may be exercised by each Owner as to his or her interest unless expressly reserved to the group holder. However, provisions of any plan in connection with which the group contract was issued may restrict an Owner’s ability to exercise such rights and privileges.
In the case of a group annuity contract, we may not modify the group contract or any Contract without consent of the group holder or the Owner, as applicable, except to make it conform to any law or regulation or ruling issued by a governmental agency. However, on 60 days’ notice to the group holder, we may change the administration fees, mortality and expense risk charges, annuity purchase rates and the market value charge (where applicable) as to any Contract issued after the effective date of the modification.
All Contract rights and privileges not expressly reserved to the group holder may be exercised by each Owner as to his or her interests as specified in his or her Contract.
Acceptance of Contracts. John Hancock USA has discontinued new applications and issuance of new group contracts.
Annuitant
The Annuitant is any natural person or persons whose life is used to determine the duration of annuity payments involving life contingencies. The Annuitant is entitled to receive all annuity payments under the Contract. If the Contract Owner names more than one person as an Annuitant, the second person named shall be referred to as “co-Annuitant.” The Annuitant is as designated on the Contract specifications page or in the application, unless changed. You must make any change of Annuitant in writing in a form acceptable to us and the change must be received at our Annuities Service Center. We must approve any change.
On the death of the Annuitant prior to the Annuity Commencement Date, the co-Annuitant, if living, becomes the Annuitant. If there is no living co-Annuitant, the Owner becomes the Annuitant (the Owner may name a new Annuitant). In the case of certain Qualified Contracts, there are limitations on the ability to designate and change the Annuitant and the co-Annuitant. The Annuitant becomes the Owner of the Contract on the Annuity Commencement Date.
If any Annuitant is changed and any Contract Owner is not a natural person, we normally distribute the entire interest in the Contract to the Contract Owner within five years. We reduce the amount distributed by charges that would otherwise apply upon withdrawal.
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Beneficiary
The Beneficiary is the person, persons or entity designated in your specifications page (or as subsequently changed). However, if there is a surviving Contract Owner, we treat that person as the Beneficiary. You may change the Beneficiary subject to the rights of any irrevocable Beneficiary. You must make any change in writing and the change must be received at our Annuities Service Center. We must approve any change. If approved, we effect such change as of the date on which it was written. We assume no liability for any payments made or actions taken before the change is approved. If no Beneficiary is living, any designated Contingent Beneficiary becomes the Beneficiary. The interest of any Beneficiary is subject to that of any assignee. If no Beneficiary or Contingent Beneficiary is living, the Beneficiary is the estate of the deceased Contract Owner. In the case of certain Qualified Contracts, Treasury Department regulations may limit designations of Beneficiaries and the Code may limit the payout options available for certain classes of Beneficiaries.
Modification
We may not modify your Contract or certificate without your consent, except to the extent required to make it conform to any law or regulation or ruling issued by a governmental agency.
Code Section 72(s)
In order for our Nonqualified Contracts (i.e., Contracts not purchased to fund an IRA or other Qualified Plan) to be treated as annuities under the Code, we will interpret the provisions of the Contract so as to comply with the requirements of section 72(s) of the Code, which prescribes certain provisions governing distributions after the death of the Owner.
Misstatement and Proof of Age, Sex or Survival
We normally require proof of age, sex (where permitted by state law) or survival of any person upon whose age, sex or survival any payment depends. If the age or sex of the Annuitant has been misstated, the benefits will be those that would have been provided for the Annuitant’s correct age and sex. If we have made incorrect annuity or benefit payments under the Contract, the amount of any underpayment will be paid immediately and the amount of any overpayment will be deducted from future annuity or benefit payments.
Fixed Investment Options
Interests in a Fixed Investment Option are not registered under the Securities Act of 1933, as amended (the “1933 Act”), and each Company’s General Account is not registered as an investment company under the 1940 Act. Neither interests in a Fixed Investment
Option nor a General Account are subject to the provisions or restrictions of the 1933 Act or the 1940 Act. Nonetheless, federal securities laws may require disclosures relating to interests in a Fixed Investment Option and a General Account to be accurate.
Interest Rates and Availability. Currently, we do not make any Fixed Investment Options available for Additional Purchase Payments. However, you may previously have allocated some or all of your Contract Value to a Fixed Investment Option. A Fixed Investment Option provides for the accumulation of interest on Purchase Payments at guaranteed rates for the duration of the guarantee period. We determine the guaranteed interest rates on amounts allocated or transferred to a Fixed Investment Option from time to time. In no event will the guaranteed rate of interest be less than guaranteed minimum interest rate stated in your Contract. Once an interest rate is guaranteed for a Fixed Investment Option, it is guaranteed for the duration of the guarantee period, and we may not change it.
Transfers. During the Accumulation Period, you normally may transfer amounts from a Fixed Investment Option to the Variable Investment Options only at the end of a guaranteed period. You may, however, transfer amounts from Fixed to Variable Investment Options prior to the end of the guarantee period pursuant to the DCA program (when available). Where there are multiple Investment Accounts within a Fixed Investment Option, amounts must be transferred from that Fixed Investment Option on a first-in-first-out basis.
You may also make transfers from Variable Investment Options to a Fixed Investment Option, if available, at any time prior to the Annuity Commencement Date, as permitted by applicable law. We establish a separate Investment Account each time you allocate or transfer amounts to a Fixed Investment Option, except that for amounts allocated or transferred the same day, we
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will establish a single Investment Account. You may not allocate amounts to a Fixed Investment Option that would extend the guarantee period beyond the Annuity Commencement Date.
Renewals. At the end of a guarantee period, you may establish a new Investment Account with the same guarantee period at the then current interest rate, if available, or transfer the amounts to a Variable Investment Option, all without the imposition of any charge. In the case of renewals in the last year of the Accumulation Period, the only Fixed Investment Option available is to have interest accrued for the remainder of the Accumulation Period at the then current interest rate for one-year guarantee period. If you do not specify a renewal option, we will select the one-year Fixed Investment Option.
Market Value Charge. Any amount withdrawn, transferred or borrowed from a Fixed Investment Account prior to the end of the guarantee period may be subject to a market value charge. A market value charge is assessed only when current interest rates are higher than the guaranteed interest rate on the account. The charge compensates us for our investment losses on amounts withdrawn, transferred or borrowed prior to the Maturity Date. The formula for calculating this charge is set forth in your Contract. A market value charge will be calculated separately for each Investment Account affected by a transaction to which a market value charge may apply. The market value charge for an Investment Account will be calculated by multiplying the amount withdrawn or transferred from the Investment Account by the adjustment factor described below.
The adjustment factor is determined by the following formula: 0.75 × (B-A) × C/12 where:
A = The guaranteed interest rate on the Investment Account.
B = The guaranteed interest rate available, on the date the request is processed, for amounts allocated to a new Investment Account with the same length of guarantee period as the Investment Account from which the amounts are being withdrawn.
C = The number of complete months remaining to the end of the guarantee period.
For purposes of applying this calculation, the maximum difference between “B” and “A” will be 3%. The adjustment factor may never be less than zero.
The total market value charge will be the sum of the market value charges for each Investment Account being withdrawn. Where the guaranteed rate available on the date of the request is less than the rate guaranteed on the Investment Account from which the amounts are being withdrawn (B-A in the adjustment factor is negative), there is no market value charge. There is only a market value charge when interest rates have increased (B-A in the adjustment factor is positive).
We make no market value charge on withdrawals from the Fixed Investment Option in the following situations:
•  death of the Owner;
•  amounts withdrawn to pay fees or charges;
•  amounts applied at the Maturity Date to purchase an annuity at the guaranteed rates provided in the Contract;
•  amounts withdrawn from Investment Accounts within one month prior to the end of the guarantee period;
•  amounts withdrawn from a one-year Fixed Investment Option; and
•  amounts withdrawn in any Contract Year that do not exceed 10% of (i) total Purchase Payments less (ii) any prior withdrawals in that Contract Year.
In no event will the market value charge:
•  be greater than the amount by which the earnings attributable to the amount withdrawn or transferred from an Investment Account exceed an annual rate of 3%;
•  together with any withdrawal charges for an Investment Account be greater than 10% of the amount transferred or withdrawn; or
•  reduce the amount payable on withdrawal or transfer below the amount required under the non-forfeiture laws of the state with jurisdiction over the Contract.
The cumulative effect of the market value and withdrawal charges could result in a Contract Owner receiving total withdrawal proceeds of less than the Contract Owner’s Purchase Payments.
Withdrawals. You may make total and partial withdrawals of amounts held in a Fixed Investment Option at any time during the Accumulation Period. Withdrawals from a Fixed Investment Option will be made in the same manner and be subject to the same limitations as set forth under “Withdrawals” above.
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We reserve the right to defer payment of amounts withdrawn from a Fixed Investment Option for up to six months from the date we receive the written withdrawal request. If a withdrawal is deferred for more than 30 days pursuant to this right, we will pay interest on the amount deferred at a rate not less than 3% per year (or a higher rate if required by applicable law).
If you do not specify the Investment Options from which a withdrawal is to be taken, the withdrawal will be taken from the Variable Investment Options until exhausted and then from the Fixed Investment Options. Such withdrawals will be made from the Investment Options beginning with the shortest guarantee period. Within such a sequence, where there are multiple Investment Accounts within a Fixed Investment Option, withdrawals will be made on a first-in-first-out basis. For this purpose, the DCA Fixed Investment Option is considered to have a shorter guarantee period than the one-year Fixed Investment Option.
The market value charge described above may apply to withdrawals from any Fixed Investment Option except for a one-year Fixed Investment Option. If a market value charge applies to a withdrawal from a Fixed Investment Option, it will be calculated with respect to the full amount in the Investment Option and deducted from the amount payable in the case of a total withdrawal. In the case of a partial withdrawal, the market value charge will be calculated on the amount requested and deducted, if applicable, from the remaining Investment Account value.
Withdrawals from the Contract may be subject to income tax and a 10% penalty tax. See “VII. Federal Tax Matters” below. Withdrawals are permitted from Contracts issued in connection with Section 403(b) Plans only under limited circumstances. See “VII. Federal Tax Matters – Qualified Plan Types.”
Loans. We offer a loan privilege only to Owners of Contracts issued prior to November 12, 2007, in connection with Section 403(b) Plans that are not subject to Title I of ERISA. If you own such a Contract, you may borrow from us, using your Contract as the only security for the loan, in the same manner and subject to the same limitations as described under “VII. Federal Tax Matters – General Information Regarding Qualified Contracts – Loans.” The market value charge described above may apply to amounts transferred from the Fixed Investment Accounts to the Loan Account in connection with such loans and, if applicable, will be deducted from the amount so transferred. The loan privilege will not be available if you elected any optional guaranteed minimum withdrawal benefit Rider.
Charges. No asset-based charges are deducted from Fixed Investment Options.
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VI.  Charges and Deductions
We assess charges and deductions under the Contracts against Purchase Payments, Contract Values, or withdrawal or annuity payments. Currently, there are no deductions made from Purchase Payments. In addition, there are deductions from and expenses paid out of the assets of the Portfolios that are described in the Portfolio prospectuses. For information on the optional benefit fees, please see “III. Fee Tables” and Appendix B: “Optional Enhanced Death Benefits,” Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” and/or Appendix D: “Optional Guaranteed Minimum Income Benefits.”
We may charge a separate fee for certain requested services (e.g., electronic fund transfers, providing replacement contracts, etc.).
Withdrawal Charges
If you make a withdrawal from your Contract during the Accumulation Period, we may assess a withdrawal charge. We base the withdrawal charge on the length of time a Purchase Payment has been in your Contract, and the amount of the withdrawal we attribute to unliquidated Purchase Payments.
Amounts to Which Withdrawal Charges Do Not Apply. We do not assess a withdrawal charge with respect to: (i) earnings accumulated in the Contract; (ii) Payment Enhancements (where applicable) and any earnings attributable to Payment Enhancements; (iii) certain other “free Withdrawal Amounts,” described below; or (iv) Purchase Payments that have been in the Contract for more than 7 complete Contract Years (8 complete years if you elected the Payment Enhancement Rider in New York). A market value charge may apply to these transactions (see “V. Description of the Contract – Market Value Charge”).
We do not impose a withdrawal charge on amounts allocated to a “free Withdrawal Amount.” In any Contract Year, the free Withdrawal Amount for that year is the greater of:
•  10% of total Purchase Payments (less all prior withdrawals in that Contract Year); and
•  the accumulated earnings of the Contract (i.e., the excess of the Contract Value on the date of withdrawal over unliquidated Purchase Payments).
We allocate any free withdrawal amount first to withdrawals from Variable Investment Options and then to withdrawals from the Fixed Investment Options.
Amounts to Which Withdrawal Charges Do Apply. We first allocate a withdrawal to any free Withdrawal Amount and second to “unliquidated Purchase Payments” (i.e., the amount of all Purchase Payments in the Contract net of any withdrawals of Purchase Payments in excess of the free Withdrawal Amount that have been taken to date).
Withdrawals of up to the free Withdrawal Amount may be withdrawn without the imposition of a withdrawal charge. If the amount of a withdrawal exceeds the free Withdrawal Amount, the excess will be allocated to Purchase Payments which will be “liquidated” on a first-in first-out basis. On any withdrawal request, we will liquidate Purchase Payments equal to the amount of the withdrawal request which exceeds the free Withdrawal Amount in the order the Purchase Payments were made: the oldest unliquidated Purchase Payment first, the next Purchase Payment second, etc., until all Purchase Payments have been liquidated.
Upon a full surrender of a John Hancock USA Contract issued on or after April 1, 2003, John Hancock USA will liquidate the excess of all unliquidated Purchase Payments over the free Withdrawal Amount for purposes of calculating the withdrawal charge.
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How We Determine the Withdrawal Charge. We calculate the amount of the withdrawal charge by multiplying the amount of the Purchase Payment being “liquidated” by the applicable withdrawal charge percentage shown below:
Withdrawal Charge
(as percentage of Purchase Payments*)
  John Hancock USA John Hancock New York
(without Payment
Enhancement Rider) 		John Hancock New York
(with Payment
Enhancement Rider)
First Year 6% 6% 8%
Second Year 6% 6% 8%
Third Year 5% 5% 7%
Fourth Year 5% 5% 7%
Fifth Year 4% 4% 5%
Sixth Year 3% 3% 4%
Seventh Year 2% 2% 3%
Eighth Year 0% 0% 1%
Thereafter 0% 0% 0%
* Each Purchase Payment or portion thereof liquidated in connection with a withdrawal request is subject to a withdrawal charge based on the length of time the Purchase Payment has been in the Contract. We calculate the amount of the withdrawal charge by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage shown. The total withdrawal charge will be the sum of the withdrawal charges for the Purchase Payments being liquidated.
We deduct from the amount paid to the Contract Owner as a result of the withdrawal, any applicable withdrawal charge, Contract and Rider fees, and any taxes. In the case of a withdrawal, the amount requested from an Investment Account may not exceed the value of that Investment Account less any applicable fees and charges.
There is generally no withdrawal charge on distributions made as a result of the death of the Contract Owner or, if applicable, the Annuitant, and we impose no withdrawal charges on the Annuity Commencement Date if the Contract Owner annuitizes as provided in the Contract.
Withdrawal charges help to compensate us for the cost of selling the Contracts. The amount of the charges in any Contract Year does not specifically correspond to sale expenses for that year. We expect to recover our total sales expenses over the life of the Contracts. To the extent that the withdrawal charges do not cover total sales expenses, the sales expenses may be recovered from other sources, including gains from the asset-based risk charge and other gains with respect to the Contracts, or from general assets. Similarly, administrative expenses not fully recovered by the administration fees may also be recovered from such other sources.
For examples of calculation of the withdrawal charge, see Appendix A: “Examples of Calculation of Withdrawal Charge.” Withdrawals from the Fixed Investment Options may be subject to a market value charge in addition to the withdrawal charge.
Waiver of Applicable Withdrawal Charge – Confinement to Eligible Nursing Home
(John Hancock USA Contracts only; not available in MA and NY)
For Contracts issued on or after May 1, 2002 (in states where approved), any applicable withdrawal charge will be waived on a total withdrawal prior to the Maturity Date if all of the following apply:
•  the Owner has been confined to an “Eligible Nursing Home” for at least 180 days (the waiver does not apply to the confinement of any Annuitant unless the Owner is a non-natural person);
•  the confinement began at least one year after the Contract Date;
•  confinement was prescribed by a “Physician”;
•  both the Owner and the Annuitant are alive as of the date we pay the proceeds of such total withdrawal; and
•  the request for a total withdrawal and “Due Proof of Confinement” are received by us, in Good Order, no later than 90 days after discharge.
An “Eligible Nursing Home” is a licensed “Long Term Care Facility” or “Hospital” providing medically necessary inpatient care that is prescribed in writing by a licensed “Physician” and is based on physical limitations which requires daily living in an institutional setting. A “Long Term Care Facility” is a facility which: (a) is located in the United States or its territories; (b) is licensed by the jurisdiction in which it is located; (c) provides custodial care under the supervision of a registered nurse
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(R.N.); and (d) can accommodate three or more persons. A “Hospital” is a facility which: (a) is licensed as a Hospital by the jurisdiction in which it is located; (b) is supervised by a staff of licensed “Physicians”; (c) provides nursing services 24 hours a day by, or under the supervision of, a registered nurse (R.N.); (d) operates primarily for the care and treatment of sick or injured persons as inpatients for a charge; and has access to medical, diagnostic and major surgical facilities.
A “Physician” is a person other than you, the Annuitant(s) or a member of your or the Annuitant’s families who is a licensed medical doctor (M.D.) or a licensed doctor of osteopathy (D.O.), practicing within the scope of that license.
“Due Proof of Confinement” is a letter signed by a Physician containing: (a) the date the Owner was confined, (b) the name and location of the Eligible Nursing Home, (c) a statement that the confinement was medically necessary in the judgment of the Physician, and (d) if applicable, the date the Owner was released from the Eligible Nursing Home.
The waiver described above is only applicable for total withdrawals and does not apply to partial withdrawals. The waiver is not available in all states and was not available for Contracts issued prior to May 1, 2002. Certain terms may vary depending on the state of issue as noted in your Contract. Withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”). Please consult with your own qualified tax professional before requesting the waiver.
There are or may be situations other than those described above or elsewhere in the Prospectus (see, e.g., “Reduction or Elimination of Charges and Deductions,” below) that merit waiver of withdrawal charges, which we may consider on a case-by-case basis.
Annual Contract Fee
We deduct each year an annual Contract fee of $30 as partial compensation for the cost of providing all administrative services attributable to the Contracts and the operations of the Separate Account and the Company in connection with the Contracts. However, if prior to the Maturity Date the Contract Value is equal to or greater than $99,000 at the time of the fee’s assessment, the fee will be waived. We deduct this administration fee on the Contract Anniversary during the Accumulation Period. It is withdrawn from each Investment Option in the same proportion that the value of such Investment Option bears to the Contract Value. If you withdraw the entire Contract Value on a day other than the Contract Anniversary, we will deduct the $30 Contract fee from the amount paid. During the Pay-out Period, we deduct the fee on a pro-rata basis from each annuity payment.
Asset-Based Charges
We deduct asset-based charges daily to compensate us primarily for our administrative and distribution expenses, and for the mortality and expense risks we assume under the Contracts. We do not assess asset-based charges against Fixed Investment Options.
Administration Fee
We allocate a portion of the asset-based charges, as shown in “III. Fee Tables,” to help cover our administrative expenses. We deduct from each of the Subaccounts a daily charge, at an annual effective rate of 0.15% of the value of each corresponding Variable Investment Option, to reimburse us for administrative expenses. The charge will be reflected in the Contract Value as a proportionate reduction in the value of each Variable Investment Option. Even though administrative expenses may increase, we guarantee that it will not increase the administration fee.
Mortality and Expense Risks Fee
The mortality risk we assume is the risk that Annuitants may live for a longer period of time than we estimate. We assume this mortality risk by virtue of annuity payment rates incorporated into the Contract which cannot be changed. This assures each Annuitant that his or her longevity will not have an adverse effect on the amount of annuity payments. We also assume mortality risks in connection with our guarantee that, if the Contract Owner dies during the Accumulation Period, we will pay a death benefit (see “V. Description of the Contract – Death Benefit During Accumulation Period”). The expense risk we assume is the risk that any of the following, where applicable, may be insufficient to cover actual expenses: the annual fee, administration charges, distribution charge, or withdrawal charge.
To compensate us for assuming these risks, we deduct from each of the Subaccounts a daily charge at the annual effective rate of 1.25% of the value of the Variable Investment Options. In the case of individual Contracts, the rate of the mortality and
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expense risks charge cannot be increased. In the case of group contracts, the rate of the mortality and expense risks charge can be increased, but only as to certificates issued after the effective date of the increase and upon 60 days’ prior written notice to the group holder. The charge is assessed on all active Contracts, including Contracts continued by a Spousal Beneficiary upon the death of the Contract Owner or continued under any Annuity Option payable on a variable basis. If the asset-based charges are insufficient to cover the actual cost of the mortality and expense risks assumed, we bear the loss. Conversely, if the charges prove more than sufficient, the excess will be profit to us and will be available for any proper corporate purpose including, among other things, payment of distribution expenses. In cases where no death proceeds are payable (e.g., for Contracts continued by a non-Spousal Beneficiary upon the death of the Owner), or under the Period Certain Only Annuity Option, if available, if you elect benefits payable on a variable basis, we continue to assess the Contractual mortality and expense risks charge, although we bear only the expense risk and not any mortality risk.
Reduction or Elimination of Charges and Deductions
(Not available in New York)
We may have reduced or eliminated the amount of the charges and deductions for certain Contracts where permitted by state law. These Contracts would involve sales to individuals or to a group of individuals in a manner that resulted in savings of sales or maintenance expenses or that we expected to result in reduction of other risks that are normally associated with the Contracts. We determined entitlement to such a reduction in the charges or deductions in the following manner:
•  We considered the size and type of group to which sales are made. Generally, per Contract sales expenses for a larger group are smaller than for a smaller group because of the ability to implement large numbers of Contracts with fewer sales contacts;
•  We considered the total amount of Purchase Payments to be received. Per-dollar sales expenses are likely to be less on larger Purchase Payments than on smaller ones;
•  We considered the nature of the group or class for which the Contracts are purchased including the expected persistency, mortality or morbidity risks associated with the group or class of Contracts;
•  We considered any prior or existing relationship with us. Per-Contract sales expenses are likely to be less when there is a prior or existing relationship because of the likelihood of implementing the Contract with fewer sales contacts;
•  We considered the level of commissions paid to selling broker-dealers. Certain broker-dealers may have offered the Contract in connection with financial planning programs offered on a fee-for-service basis. In view of the financial planning fees, such broker-dealers may have elected to receive lower commissions for sales of the Contracts, thereby reducing our sales expenses; and
•  There may have been other circumstances that resulted in reduced expenses.
If after consideration of the foregoing factors, we determined that there would be a reduction in expenses, we provided a reduction in the charges or deductions. In the case of group contracts, we may have issued Contracts with a mortality and expense risks charge at rates less than those set out above, if we concluded that the mortality or expense risks of the groups involved were less than the risks determined for persons for whom the Contracts have been generally designed.
In no event did we permit reduction or elimination of the charges or deductions where that reduction or elimination was unfairly discriminatory to any person. We reserve the right to modify, suspend or terminate any reductions or waivers of charges at any time.
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Premium Taxes
We make deductions for any applicable premium or similar taxes. Currently, certain jurisdictions assess a tax of up to 4% of each Purchase Payment.
In most cases, and subject to applicable law, we deduct a charge in the amount of the tax from the total value of the Contract only at the time of annuitization, death, surrender, or withdrawal. We reserve the right, however, to deduct the charge from each Purchase Payment at the time it is made. We compute the amount of the charge by multiplying the applicable premium tax percentage by the amount subject to tax under the applicable state law.
State or Territory Premium Tax Rate1
Qualified Contracts Nonqualified Contracts
CA 0.50% 2.35%
GUAM 4.00% 4.00%
ME 2 0.00% 2.00%
NV 0.00% 3.50%
PR 1.00% 1.00%
SD 2 0.00% 1.25% 3
TX 4 0.04% 0.04%
WV 1.00% 1.00%
WY 0.00% 1.00%
1 Based on the state of residence at the time the tax is assessed.
2 We pay premium tax upon receipt of Purchase Payment.
3 0.08% on Purchase Payments in excess of $500,000.
4 Referred to as a “maintenance fee.”
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VII.  Federal Tax Matters
Introduction
The following discussion of the federal income tax treatment of the Contract is not exhaustive, does not purport to cover all situations, and is not intended as tax advice. The federal income tax treatment of a Contract is quite complex; please consult a qualified tax professional with regard to the application of the law to your circumstances. This discussion is based on the Code, Treasury Department regulations, and Internal Revenue Service (“IRS”) rulings and interpretations existing on the date of this Prospectus. These authorities, however, are subject to change by Congress, the Treasury Department and judicial decisions.
This discussion does not address state or local tax consequences associated with a Contract. Further, this discussion also does not address the potential tax and withholding rules that might apply to a Contract held by, or distributions paid to, any foreign person, including any foreign financial institution, other entity or individual. Please consult with your tax professional if there is a possibility that a Contract might be held by, or payable to, a foreign person. In addition, we make no guarantee regarding any tax treatment – federal, state, or local – of any Contract or of any transaction involving a Contract.
Our Tax Status
We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of a Separate Account in our taxable income and take deductions for investment income credited to our “policyholder reserves.” We are also required to capitalize and amortize certain costs instead of deducting those costs when they are incurred. We do not currently charge a Separate Account for any resulting income tax costs. We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the Portfolios. These benefits can be material. We do not pass these benefits through to a Separate Account, principally because: (i) the deductions and credits are allowed to the Company and not the Contract Owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on Separate Account assets that is passed through to Contract Owners.
The Contracts permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the Contracts or a Separate Account. Currently, we do not anticipate making a charge for such taxes. If the level of the current taxes increases, however, or is expected to increase in the future, we reserve the right to make a charge in the future. (Please note that this discussion applies to federal income tax but not to any state and local taxes.)
Special Considerations for Optional Benefits
At present, the IRS has not provided guidance as to the tax treatment of charges for optional benefits to an annuity contract. The IRS might take the position that each charge associated with these optional benefits is deemed a withdrawal from the contract subject to current income tax to the extent of any gains and, if applicable, a 10% penalty tax for premature withdrawals. We do not currently report charges for optional benefits as withdrawals, but we may do so in the future if we believe that the IRS would require us to report them as such.
If the Contract you purchased is not intended for use with a tax-qualified retirement plan or as an IRA (a “Nonqualified Contract”):
•  Any withdrawal you take ordinarily is taxable as ordinary income to the extent of any gain in the Contract at the time of the withdrawal.
•  Under current IRS guidance, we expect to determine gain on a withdrawal, including withdrawals during the “Settlement Phase” using the Contract Value. It is possible, however, that the IRS may take the position that the value of amounts guaranteed to be available in the future should also be taken into account in computing the taxable portion of a withdrawal. In that event, you may be subject to a higher amount of tax on a withdrawal.
•  Any annuity payments that you receive under an Annuity Option will be taxed in the manner described in “Taxation of Annuity Payments” below.
If the Contract you purchased is intended for use with a tax-qualified retirement plan or as an IRA (a “Qualified Contract”):
•  Please see “Roth IRAs – Conversions and Rollovers to Roth IRAs” below for additional information on the tax impact of optional benefit Riders on a conversion to a Roth IRA.
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•  The amount of any required minimum distributions may be increased under federal tax rules if your Contract has an optional death benefit or other optional benefit Rider. See “General Information Regarding Qualified Contracts” below.
You should consult with your own qualified tax professional for information on any optional benefit Rider.
General Information Regarding Nonqualified Contracts
(Contracts Not Purchased to Fund an IRA or Other Qualified Plan)
Tax Deferral During Accumulation Period
Except where the Owner is not an individual, we expect our Contracts to be considered annuity contracts under section 72 of the Code. This means that, ordinarily, federal income tax on any gains in your Contract will be deferred until we actually make a distribution to you or you assign or pledge an interest in your Contract.
However, a Contract held by an Owner other than a natural person (for example, a corporation, partnership, limited liability company, trust, or other such entity) does not generally qualify as an annuity contract for tax purposes. Any increase in value therefore would constitute ordinary taxable income to such an Owner in the year earned. Notwithstanding this general rule, a Contract will ordinarily be treated as held by a natural person if the nominal Owner is a trust or other entity which holds the Contract as an agent for a natural person. This exception does not apply in the case of any employer which is the nominal owner of an annuity contract under a nonqualified deferred compensation arrangement for its employees.
In addition to the foregoing, if the Contract’s Maturity Date occurs, or is scheduled to occur, at a time when the Annuitant is at an advanced age, such as over age 95, it is possible that the Owner will be taxed currently on the annual increase in the Contract Value.
The remainder of this discussion assumes that the Contract will constitute an annuity for federal tax purposes.
Aggregation of Contracts
In certain circumstances, the IRS may determine the portion of a withdrawal from a contract that is includible in income by combining some or all of the annuity contracts owned by an individual which are not issued in connection with a Qualified Plan.
For example, if you purchase two or more deferred annuity contracts from the same insurance company (or its affiliates) during any calendar year, all such contracts will be treated as one contract for purposes of determining whether any payment not received as an annuity (including withdrawals prior to the Maturity Date) is includible in income. Thus, if during a calendar year you bought two or more of the Contracts offered by this Prospectus (which might be done, for example, in order to purchase different guarantees and/or benefits under different contracts), all of such Contracts would be treated as one Contract in determining whether withdrawals from any of such Contracts are includible in income. The IRS may also require aggregation in other circumstances. Please consult your own qualified tax professional if you own or intend to purchase more than one annuity contract.
The effects of such aggregation are not always clear and depend on the circumstances. However, aggregation could affect the amount of a withdrawal that is taxable and the amount that might be subject to the 10% penalty tax described below.
Exchanges of Annuity Contracts
We may have issued the Contract in exchange for all or part of another annuity contract that you owned. Such an exchange would be tax free if certain requirements were satisfied. If you satisfied these requirements, your investment in the Contract immediately after the exchange is generally the same as that of the annuity contract you exchanged, increased by any Additional Purchase Payment you made as part of the exchange. Your investment in the Contract may be more, less or the same as the Contract Value immediately after the exchange. If your Contract Value exceeds your investment in the Contract, that excess represents gain in the Contract. You have to include that gain in your gross income if you subsequently take a withdrawal or distribution from the Contract (e.g., as a partial surrender, full surrender, annuity payment, or death benefit), or are deemed to receive a distribution (e.g., through a collateral assignment) from the Contract.
In Revenue Procedure 2011-38, the IRS amended the tax rules applicable to the partial exchange of an annuity contract for another annuity contract, effective for partial exchanges that occur after October 23, 2011. If you exchange part of an existing Contract after that date, and within 180 days of the exchange you receive a payment (e.g., you make a withdrawal) from either
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contract, all or a portion of the amount received could be includible in your income and also subject to a 10% penalty tax. The IRS has announced that it will apply general tax principles to determine the consequences of receiving such a payment. For example, the IRS could treat the payment as taxable only to the extent of the gain in the particular contract from which the payment was received. Alternatively, the IRS could determine that the payment was an integrated part of the exchange. In that case, the payment would be taxable to the extent of all the gain accumulated in the original Contract at the time of the partial exchange, regardless of whether the payment came from the existing Contract or from the contract received in the exchange. Application of general tax principles is dependent on the facts and circumstances of each case. However, amounts received as an annuity during the 180-day period are not subject to the new rules, provided that the annuity payments will be made for a period of at least 10 years or for a life or joint lives.
EXAMPLE: An annuity Contract had $100,000 of Contract Value, of which $56,000 was gain and $44,000 was the Owner’s investment in the Contract, or “cost basis.” After October 23, 2011, the Owner did a partial exchange of 25% of the Contract Value for a new annuity contract. Of the $25,000 transferred to the new contract, $14,000 represents gain and $11,000 represents cost basis transferred from the original Contract. Two months after the partial exchange, the Owner takes a withdrawal from the new contract in the amount of $17,000. If the IRS treats the withdrawal as a distribution from the new contract, only $14,000 will be taxable as a distribution of income ($25,000 of contract value – $11,000 of cost basis in the new contract). If instead the IRS determines that the withdrawal is part of the exchange, the entire $17,000 is taxable as income because there was $56,000 of gain in the original Contract at the time of the exchange.
Please consult with your own qualified tax professional in connection with an exchange of all or part of a Contract for another annuity contract, especially if you make a withdrawal from either contract after the exchange. The date a partial exchange occurs will be a factor in determining the tax treatment of subsequent withdrawals and other distributions from either contract.
Loss of Interest Deduction Where Contracts are Held by or for the Benefit of Certain Non-Natural Persons
In the case of Contracts issued after June 8, 1997 to a non-natural taxpayer (such as a corporation or a trust), or held for the benefit of such an entity, a portion of otherwise deductible interest may not be deductible by the entity, regardless of whether the interest relates to debt used to purchase or carry the Contract. However, this interest deduction disallowance does not affect Contracts where the income on such Contracts is treated as ordinary income that is received or accrued by the Owner during the taxable year. Entities that have purchased the Contract, or entities that will be Beneficiaries under the Contract, should consult a qualified tax professional.
Taxation of Annuity Payments
When we make payments under a Nonqualified Contract in the form of an annuity, normally a portion of each annuity payment is taxable as ordinary income. The taxable portion of an annuity payment is equal to the excess of the payment over the exclusion amount.
In the case of Variable Annuity payments, the exclusion amount is the investment in the Contract when payments begin to be made divided by the number of payments expected to be made (taking into account the Annuitant’s life expectancy and the form of annuity benefit selected). In the case of Fixed Annuity payments, the exclusion amount is based on the investment in the Contract and the total expected value of Fixed Annuity payments for the term of the Contract (determined under Treasury Department regulations). In general, your investment in the Contract equals the aggregate amount of Purchase Payments you have made over the life of the Contract, reduced by any amounts previously distributed from the Contract that were not subject to income-tax. A simplified method of determining the taxable portion of annuity payments applies to Contracts issued in connection with certain Qualified Plans other than IRAs.
Once you have recovered your total investment in the Contract tax-free, further annuity payments will be fully taxable. If annuity payments cease because the Annuitant dies before all of the investment in the Contract is recovered, the unrecovered amount generally will be allowed as a deduction on the Annuitant’s last tax return or, if there is a Beneficiary entitled to receive further payments, will be distributed to the Beneficiary as described more fully below under “Taxation of Death Benefit Proceeds.”
Section 72(a)(2) of the Code permits partial annuitization of an annuity contract and specifies that the cost basis, or investment in the contract, be allocated pro rata between the portion of the contract being annuitized and the portion of the contract remaining deferred. We do not permit you to apply any amount less than your entire Contract Value to the Annuity Options available under your Contract. Accordingly, any portion of your Contract that you withdraw to be annuitized will be
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reported to the IRS as a taxable distribution unless you transfer it into another contract in a partial exchange conforming to the rules of section 1035 of the Code and Rev. Proc. 2011-38. Any such withdrawal, whether carried out as a tax-deferred partial exchange or as a taxable withdrawal, will be subject to withdrawal charges.
Surrenders, Withdrawals, Transfers and Death Benefits
When we make a single sum payment consisting of the entire value of your Contract, you have ordinary taxable income to the extent the payment exceeds your investment in the Contract (discussed above). Such a single sum payment can occur, for example, if you surrender your Contract before the Maturity Date or if you or your Beneficiary do not select an extended payment option for a death benefit payment.
When you take a withdrawal from a Contract before the Maturity Date (or Annuity Commencement Date, if earlier), including a payment under a systematic withdrawal plan or guaranteed minimum withdrawal benefit, all or part of the payment may constitute taxable ordinary income to you. If, on the date of withdrawal, the total value of your Contract exceeds the investment in the Contract, the excess will be considered gain and the withdrawal will be taxable as ordinary income up to the amount of such gain. If a withdrawal exceeds the gain in your Contract, the excess amount is a tax-free return of your investment in the Contract. If you have recovered your entire investment in the Contract, any additional withdrawals based upon a Rider guarantee will be subject to income tax. If you assign or pledge any part of your Contract Value, the value so pledged or assigned is taxed the same as an actual withdrawal.
For purposes of determining the amount of taxable income resulting from a single sum payment or a withdrawal, all nonqualified annuity contracts issued by us or our affiliates to the Owner within the same calendar year will be treated as if they were a single contract. Taxable withdrawals may also be subject to a penalty tax for premature withdrawals as explained below.
When an individual Owner transfers ownership of a Contract without receiving full and adequate consideration, the transfer is taxed like a surrender. The transferor must include in gross income the amount by which the cash surrender value exceeds any investment in the Contract. The amount included in income may also be subject to a penalty tax for premature withdrawals as explained below. The new Owner's investment in the Contract is increased by the amount included in the transferor's gross income as a result of the transfer. These tax issues may apply, for example, in situations where the Owner and Annuitant are not the same person and are not married to each other. A qualified tax professional should be consulted in those situations. However, these tax rules do not apply to a transfer between Spouses or a transfer to a former Spouse incident to a divorce under Code section 1041.
Taxation of Death Benefit Proceeds
All or part of any death benefit proceeds may constitute a taxable payout of earnings. A death benefit payment generally results in taxable ordinary income to the extent of gain in the Contract.
Amounts may be distributed from a Contract because of the death of an Owner or the Annuitant. During the Accumulation Period, death benefit proceeds are includible in income as follows:
•  if distributed in a single sum payment under our current administrative procedures, they are taxed in the same manner as a full withdrawal, as described above; or
•  if distributed under an Annuity Option, they are taxed in the same manner as annuity payments, as described above; or
•  if distributed as a series of withdrawals over the Beneficiary’s life expectancy, they are taxable to the extent there is gain in the Contract.
After a Contract matures and annuity payments begin, if the Contract guarantees payments for a stated period and the Annuitant dies before the end of that period, payments made to the Beneficiary for the remainder of that period are includible in the Beneficiary’s income as follows:
•  if received in a single sum under our current administrative procedures, they are includible in income to the extent that they exceed the unrecovered investment in the Contract at that time; or
•  if distributed in accordance with an existing Annuity Option other than a Period Certain Only Annuity Option, they are fully excludible from income until the remaining investment in the Contract has been recovered, and all annuity benefit payments thereafter are fully includible in income; or
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•  if distributed in accordance with an existing Period Certain Only Annuity Option, the payments are taxed the same as the annuity payments made before death. A portion of each annuity payment is includible in income and the remainder is excluded from income as a return of the investment in the Contract.
Penalty Tax on Premature Distributions
There is a 10% penalty tax on the taxable portion of any payment from a Nonqualified Contract. Exceptions to this penalty tax include distributions:
•  received on or after the date on which the Contract Owner reaches age 59½;
•  attributable to the Contract Owner becoming disabled (as defined in the tax law);
•  made to a Beneficiary on or after the death of the Contract Owner or, if the Contract Owner is not an individual, on or after the death of the primary Annuitant;
•  made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Contract Owner or for the joint lives (or joint life expectancies) of the Contract Owner and a designated Beneficiary;* or
•  made with respect to certain annuities issued in connection with structured settlement agreements.
* You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments (Life Expectancy Distribution) and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59½ and the passage of five years after the date of the first payment.
Diversification Requirements
Your Contract will not qualify for the tax benefits of an annuity contract unless the Separate Account follows certain rules requiring diversification of investments underlying the Contract. In addition, the rules require that the Contract Owner not have “investment control” over the underlying assets.
In certain circumstances, the Owner of a variable annuity contract may be considered the Owner, for federal income tax purposes, of the assets of the separate account used to support the contract. In those circumstances, income and gains from the separate account assets would be includible in the Contract Owner's gross income. The IRS has stated in published rulings that a variable contract owner will be considered the owner of separate account assets if the Contract Owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. A Treasury Decision issued in 1986 stated that guidance would be issued in the form of regulations or rulings on the “extent to which Policyholders may direct their investments to particular subaccounts of a separate account without being treated as owners of the underlying assets.” As of the date of this Prospectus, no comprehensive guidance on this point has been issued. In Rev. Rul. 2003-91, however, the IRS ruled that a contract holder would not be treated as the owner of assets underlying a variable annuity contract despite the owner’s ability to allocate funds among as many as twenty subaccounts.
The ownership rights under your Contract are similar to, but different in certain respects from, those described in IRS rulings in which the IRS determined that Contract Owners were not owners of separate account assets. Since you have greater flexibility in allocating premiums and Contract Value than was the case in those rulings, it is possible that you would be treated as the owner of your Contract’s proportionate share of the assets of the Separate Account.
We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that an underlying Portfolio will be able to operate as currently described in its prospectus, or that a Portfolio will not have to change any of its investment objectives and policies. We have reserved the right to modify your Contract if we believe doing so will prevent you from being considered the owner of your Contract’s proportionate share of the assets of the Separate Account, but we are under no obligation to do so.
Medicare Tax on Unearned Income
A Medicare tax applies to certain unearned income at a maximum rate of 3.8% for taxable years beginning after December 31, 2012. Also referred to as the Net Investment Income tax, the tax is imposed on an amount equal to the lesser of (a) “net investment income” or (b) the excess of the taxpayer’s modified adjusted gross income over a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 for everyone else). “Net investment income,” for these purposes, includes the excess (if any) of gross income from annuities, interest, dividends, royalties and rents, and certain net gain, over allowable deductions, as such terms are defined in the Code or as may be
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defined in future Treasury Regulations or IRS guidance. The term “net investment income” does not include any distribution from a plan or arrangement described in Code sections 401(a), 403(a), 403(b), 408 (i.e., IRAs), 408A (i.e., Roth IRAs) or 457(b).
Please consult a qualified tax professional for further information about the impact of the additional Medicare Tax on your individual circumstances.
Puerto Rico Nonqualified Contracts
Distributions from Puerto Rico annuity contracts issued by us are subject to federal income taxation, withholding and reporting requirements as well as Puerto Rico tax laws. Both jurisdictions impose a tax on distributions. Under federal requirements, distributions are deemed to be income first. Under the Puerto Rico tax laws, however, distributions from a Contract not purchased to fund a Qualified Plan (“Nonqualified Contract”) are generally treated as a nontaxable return of principal until the principal is fully recovered. Thereafter, all distributions under a Nonqualified Contact are fully taxable. Puerto Rico does not currently impose an early withdrawal penalty tax on premature distributions from a Nonqualified Contract. The Code, however, does impose such a penalty and bases it on the amount that is taxable under federal rules.
Annuitized distributions under a Nonqualified Contract are treated as part taxable income and part non-taxable return of principal. With annuitization, the annual amount excluded from gross income under Puerto Rico tax law is equal to the amount of the distribution in excess of 3% of the total Purchase Payments paid, until an amount equal to the total Purchase Payments paid has been excluded. Thereafter, the entire distribution from a Nonqualified Contract is included in gross income. For federal income tax purposes, however, the portion of each annuity payment that is subject to tax is computed on the basis of investment in the Contract and the expected payout. Generally Puerto Rico does not require income tax to be withheld from distributions of income from Nonqualified Contracts. Although Puerto Rico allows a credit against its income tax for taxes paid to the federal government, you may not be able to use the credit fully.
General Information Regarding Qualified Contracts
(Contracts Purchased to Fund an IRA or Other Qualified Plan)
Numerous special tax rules apply to the participants in certain types of retirement plans that receive favorable treatment under the Code (“Qualified Plans”), and to the Contracts used in connection with these plans. We provide a brief description of types of Qualified Plans in this Prospectus and in the SAI, but make no attempt to provide more than general information in this Prospectus and the SAI about use of Contracts with the various types of Qualified Plans.
When we issued a Contract in connection with a Qualified Plan (“Qualified Contract”), we may have amended the Contract as necessary to conform to the requirements of the Code. We have no responsibility, however, for determining whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code, or whether a particular employee is eligible for inclusion under a plan. Your rights to any benefits under the plan may be subject to the terms and conditions of the plan itself, regardless of the terms and conditions of the Contracts.
Please consult a qualified tax professional for specific information about the impact of tax rules and plan requirements on your particular facts and circumstances.
Additional Purchase Payments to Qualified Contracts
You may make Additional Purchase Payments to a Qualified Contract, subject to our requirements and limitations for Additional Purchase Payments (see “V. Description of the Contract – Purchase Payments” for information on our Additional Purchase Payment requirements and limitations):
•  as a transfer from a traditional IRA to a Contract issued as a traditional IRA;
•  as a direct or indirect rollover* from a retirement plan qualified under sections 401(a), 403(a) or 403(b) of the Code or a governmental deferred compensation plan described in section 457 of the Code to a Contract issued either as a traditional IRA or as a Roth IRA; or
•  by making annual contributions to the extent permitted under the Code.
* We use the term “direct rollovers” to refer to amounts that a Qualified Plan remits directly to us as an Additional Purchase Payment. We use the term “indirect rollovers” to refer to amounts that you may receive from a Qualified Plan, and then remit to us as an Additional
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  Purchase Payment. The Code permits an indirect rollover to be tax-deferred if it is contributed to an IRA within 60 days of receipt. Note that an individual can make only one indirect rollover from his IRA(s) during any 12-month period. The tax law does not limit the number of indirect rollovers from other Qualified Plans to an IRA.
Distribution Requirements
The Code imposes requirements on Qualified Plans to comply with minimum distribution requirements. We provide general information, below, on minimum distribution requirements for traditional IRAs, Roth IRAs and certain other Qualified Plans.
Traditional IRAs
Section 408 of the Internal Revenue Code (“Code”) permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (“IRA”) or traditional IRA (to distinguish it from the Roth IRA discussed below).
Contracts issued as traditional IRAs are subject to limits on the amounts that may be contributed, the persons who may be eligible and the time when distributions may commence. Under the tax rules, the Owner and the Annuitant may not be different individuals. If a co-Annuitant is named, all distributions made while the Annuitant is alive must be made to the Annuitant. The Contract does not qualify for use in connection with an Education IRA under section 530 of the Code.
The Contract may be issued with a death benefit or certain benefits provided by an optional Rider. The presence of such benefits may increase the amount of any required minimum distributions for IRAs and other Contracts subject to the Required Minimum Distribution (“RMD”) rules.
Under our administrative rules beginning February 2009, we do not permit a Beneficiary of a Contract intended for use as a traditional IRA to purchase a new optional benefit Rider if the Beneficiary elected to maintain it as an inherited IRA or an inherited Roth IRA.
Contributions to a Traditional IRA
Eligible rollover distributions from certain types of qualified retirement plans may be rolled over on a tax-deferred basis into a traditional IRA by former participants in the plans. For these purposes, eligible rollover distributions include lump sum amounts payable from the plan upon termination of employment, termination of the plan, disability or retirement. Eligible rollover distributions do not include (i) required minimum distributions as described in section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments,” and (iii) if applicable, certain hardship withdrawals.
If you are the surviving Spouse and “designated beneficiary” (as defined in the tax law) of a participant in a tax-qualified retirement account, you may make a direct rollover contribution as an Additional Purchase Payment to a Contract issued as a traditional IRA to the extent permitted. See “V. Description of the Contract – Purchase Payments” for information on our Purchase Payment requirements.
Distributions from a Traditional IRA
In general, unless you rolled over non-deductible contributions from any other Qualified Plan or made non-deductible contributions to your Contract, all amounts paid out from a traditional IRA Contract (in the form of an annuity, a single sum, death benefits or partial withdrawal), are taxable as ordinary income to you or to your beneficiary for payments made after your death. You may incur an additional 10% penalty tax if you surrender the Contract or make a withdrawal before you reach age 59½, unless certain exceptions apply as specified in section 72(t) of the Code. If any part of your direct rollover from a tax-qualified retirement plan includes after-tax contributions to the plan, or if you have made any non-deductible contributions to a Contract issued as a traditional IRA, part of any withdrawal or surrender distribution, single sum, death proceeds or annuity payment from the Contract may be excluded from taxable income when received.
You may make tax-deferred direct transfers from a Contract held as a Traditional IRA to another Traditional IRA. If instead you take a withdrawal with the intent to roll the proceeds to another IRA as an indirect rollover, you should be aware of certain limitations under the tax law. You must complete any indirect rollover within 60 days of receiving the withdrawal. Moreover, during any 12- month period, you can make only one indirect rollover, with respect to all IRAs you own including Roth IRAs. Any additional indirect rollover attempted during the 12-month period will be treated as a distribution, subject to income tax and potentially the 10% penalty tax.
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A Beneficiary who is not your Spouse may make a direct transfer to an inherited IRA of the amount otherwise distributable to him or her under a Contract issued as a traditional IRA.
Required Minimum Distributions from a Traditional IRA
Note: Under the federal CARES Act, the obligation to take any required minimum distribution during 2020 is waived.
Treasury Department regulations prescribe required minimum distribution (“RMD”) rules governing the time at which distributions from a traditional IRA to the Owner and Beneficiary must commence and the form in which the distributions must be paid. These special rules may also require the length of any guarantee period to be limited. They also affect the restrictions that the Owner may impose on the timing and manner of payment of death benefits to a Beneficiary or the period of time over which a Beneficiary may extend payment of the death benefits under the Contract. In addition, the presence of the death benefit or a lifetime income benefit feature may affect the amount of the RMD that must be made under the Contract. Failure to comply with RMD requirements will result in the imposition of an excise tax, generally 50% of the amount by which the amount required to be distributed exceeds the actual distribution. In the case of IRAs (other than Roth IRAs), distributions of minimum amounts (as specified in the tax law) to the Owner must commence by April 1 of the calendar year following the calendar year in which the Owner turns age 70½, for those Contract Owners born before July 1, 1949. For Contract Owners born after June 30, 1949, distributions of minimum amounts must commence by April 1 of the calendar year following the calendar year in which the Owner turns age 72. The amount that must be distributed each year is computed on the basis of the Owner’s age, the value of the Contract (taking into account both the account balance and the actuarial present value of other benefits provided under the Contract), and the value of all other traditional IRAs owned by the taxpayer.
Distributions made from traditional IRAs (and Roth IRAs) after the Owner’s death must also comply with RMD requirements. Different rules governing the timing and the manner of payments apply, depending on whether the designated beneficiary is an individual and, if so, the Owner’s Spouse, or an individual other than the Owner’s Spouse. If you wish to impose restrictions on the timing and manner of payment of death benefits to your designated beneficiary or if your Beneficiary wishes to extend over a period of time the payment of the death benefits under your Contract, please consult your own qualified tax professional.
If you make a direct transfer of all the value from a traditional IRA to any other traditional IRA, the minimum distribution requirements (and taxes on the distributions) apply to amounts withdrawn from the other traditional IRA.
Penalty Tax on Premature Distributions from a Traditional IRA
A 10% penalty tax may be imposed on the taxable amount of any payment from a traditional IRA. The penalty tax does not apply to a payment:
•  received on or after the date on which the Contract Owner reaches age 59½;
•  received on or after the Contract Owner’s death or because of the Contract Owner’s disability (as defined in the tax law); or
•  made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Contract Owner or for the joint lives (or joint life expectancies) of the Contract Owner and designated beneficiary.*
* You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59½ and the passage of five years after the date of the first payment.
In addition, the penalty tax does not apply to certain distributions from IRAs that are used for first time home purchases or for higher education expenses, or to distributions made to certain eligible individuals called to active duty after September 11, 2001. Special conditions must be met to qualify for these three exceptions to the penalty tax. If you wish to take a distribution from a traditional IRA for these purposes, please consult with your own qualified tax professional.
Exceptions from the penalty tax also apply to certain distributions taken for qualified birth or adoption expenses, certain qualified disaster distributions, as well as certain coronavirus-related distributions made during calendar year 2020. The Code also provides for the opportunity to repay such distributions to an eligible retirement plan, including an IRA. Please consult with your own qualified tax professional to determine whether you qualify for any of these exceptions and what tax treatment will apply to the distribution and any repayment.
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If you roll over a Contract issued as a traditional IRA to a Roth IRA by surrendering the Contract and purchasing a Roth IRA, you may be subject to federal income taxes, including withholding taxes. Please read “Conversion or Rollover to a Roth IRA,” below, for more information.
Roth IRAs
Section 408A of the Code permits eligible individuals to contribute to a type of IRA known as a Roth IRA. Roth IRAs are generally subject to the same rules as traditional IRAs, but they differ in certain significant ways with respect to the taxation of contributions and distributions.
Contributions to a Roth IRA
Unlike a traditional IRA, contributions to a Roth IRA are not deductible. As with a traditional IRA, eligible rollover distributions from certain types of qualified retirement plans may be directly rolled over into a Roth IRA by former participants in the plan. For these purposes, eligible rollover distributions include lump sum amounts payable from the plan upon termination of employment, termination of the plan, disability or retirement. Eligible rollover distributions do not include (i) required minimum distributions as described in section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments,” and (iii) if applicable, certain hardship withdrawals.
Federal income tax will apply to direct rollovers from “non-Roth” accounts in retirement plans described in sections 401(a), 403(a), 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code to Contracts issued as Roth IRAs. Please read “Rollover to a Roth IRA,” below, for more information. Under current rules, direct rollovers from “Roth” accounts in a 401(k) retirement plan to Contracts issued as Roth IRAs generally are not subject to federal income tax.
Distributions from a Roth IRA
Unlike a traditional IRA, distributions from Roth IRAs need not commence after the Owner turns age 70½ or 72. Distributions must, however, begin after the Owner’s death. Distributions after the Owner’s death must comply with the minimum distribution requirements described above for traditional IRAs. (Note: Under the federal CARES Act, the obligation to take any required minimum distribution during 2020 is waived.) Different rules governing the timing and the manner of payments apply, depending on whether the designated beneficiary is an individual and, if so, the Owner’s Spouse, or an individual other than the Owner’s Spouse.
If you wish to impose restrictions on the timing and the manner of payment of death proceeds to your designated beneficiary or if your Beneficiary wishes to extend payment of the Contract death proceeds over a period of time, please consult your own qualified tax professional. Under our administrative rules beginning February 2009, we do not permit a Beneficiary of a Contract intended for use as a Roth IRA to purchase a new optional benefit Rider if the Beneficiary elected to maintain it as a Roth IRA.
Qualified distributions from a Roth IRA are excluded from income. A qualified distribution for these purposes is a distribution that satisfies two requirements. First, the distribution must be made in a taxable year that is at least five years after the first taxable year for which a contribution to any Roth IRA established for the Contract Owner was made. Second, the distribution must be:
•  made after the Owner turns age 59½;
•  made after the Owner’s death;
•  attributable to the Owner being disabled; or
•  a qualified first-time homebuyer distribution within the meaning of section 72(t)(2)(F) of the Code.
A direct transfer from a Contract issued as a Roth IRA to another Roth IRA is not subject to income tax. However, during any 12- month period, you can make only one indirect rollover with respect to all IRAs you own, including Roth IRAs.
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Penalty Tax on Premature Distributions from a Roth IRA
Taxable distributions before age 59½ may also be subject to a 10% penalty tax. This early distribution penalty may also apply to amounts converted to a Roth IRA that are subsequently distributed within a 5-taxable year period beginning in the year of conversion. Please read “Penalty Tax on Premature Distributions from a Traditional IRA,” above, for more information.
The state tax treatment of a Roth IRA may differ from the federal income tax treatment of a Roth IRA. You should seek independent tax advice if you intend to use the Contract in connection with a Roth IRA.
Conversion or Rollover to a Roth IRA
You can convert a traditional IRA to a Roth IRA. You also can initiate a direct rollover distribution from a retirement plan described in sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code to a Roth IRA Contract. The Roth IRA annual contribution limit does not apply to conversion or rollover amounts, but you must satisfy our requirements for Additional Purchase Payments. See “V. Description of the Contract – Purchase Payments” for additional information.
You must pay tax on any portion of a conversion or rollover amount that would have been taxed if you had not converted or rolled over to a Roth IRA. If you convert a Contract issued as a traditional IRA to a Roth IRA, the amount deemed to be the conversion amount for tax purposes may be higher than the Contract Value because of the deemed value of guarantees. If you convert a Contract issued as a traditional IRA to a Roth IRA, you may instruct us not to withhold any of the conversion amount for taxes and remittance to the IRS. If you do instruct us to withhold for taxes when converting a Contract issued as a traditional IRA to a Roth IRA, we will treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal and a reduction in the benefit value of any elected optional guarantee Rider, in a proportion determined by the Rider. Please read Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for more information about the impact of withdrawals.
If you direct the sponsor or administrator to transfer a rollover amount from your “non-Roth” Qualified Plan to a Roth IRA Contract, there is no mandatory tax withholding that applies to the rollover amount. A direct rollover to a Roth IRA is not subject to mandatory tax withholding, even though the distribution is includible in gross income.
Current tax law no longer imposes a restriction based on adjusted gross income on a taxpayer’s ability to convert a traditional IRA or other qualified retirement accounts to a Roth IRA. Accordingly, taxpayers with more than $100,000 of adjusted gross income may now convert such assets to a Roth IRA. Generally, the amount converted to a Roth IRA is included in ordinary income for the year in which the account was converted. Given the taxation of Roth IRA conversions and the potential for an early distribution penalty tax, you should consider the resources that you have available, other than your retirement plan assets, for paying any taxes that would become due the year of any such conversion or a subsequent year. Please seek independent qualified tax advice if you intend to use the Contract in connection with a Roth IRA.
You are not subject to federal income tax on a direct rollover of distributions from a Roth account in another Qualified Plan permitted to be rolled over into a Contract issued as a Roth IRA, or from a Contract issued as a Roth IRA to another Roth IRA.
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Other Qualified Plans
You may have purchased a Qualified Contract for use in connection with certain retirement plans that receive favorable treatment under the Code, but are not traditional IRAs or Roth IRAs. The other types of retirement plans (“Other Qualified Plans”) include:
Other Qualified Plan Type  
SIMPLE IRA Plans In general, under Section 408(p) of the Code a small business employer may establish a SIMPLE IRA plan if the employer employed no more than 100 employees earning at least $5,000 during the preceding year. Under a SIMPLE IRA plan both employees and the employer make deductible contributions. SIMPLE IRAs are subject to various requirements, including limits on the amounts that may be contributed, the persons who may be eligible, and the time when distributions may commence. The requirements for minimum distributions from a SIMPLE IRA plan are generally the same as those discussed above for distributions from a traditional IRA. The rules on taxation of distributions are also similar to those that apply to a traditional IRA with a few exceptions.
Simplified Employee Pensions (SEP-IRAs) Section 408(k) of the Code allows employers to establish simplified employee pension plans for their employees, using the employees’ IRAs for such purposes, if certain criteria are met. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to IRAs. The requirements for minimum distributions from a SEP-IRA, and rules on taxation of distributions from a SEP-IRA, are generally the same as those discussed above for distributions from a traditional IRA.
Section 403(b) Plans or Tax-Sheltered Annuities Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations to have their employers purchase annuity contracts for them and, subject to certain limitations, to exclude the Purchase Payments from gross income for tax purposes. There also are limits on the amount of incidental benefits that may be provided under a tax-sheltered annuity. These Contracts are commonly referred to as “tax-sheltered annuities.” Please see the SAI for information on withdrawal restrictions under Section 403(b) Plans. You may request a copy of the SAI from the Annuities Service Center.
Corporate and Self- Employed Pension and Profit-Sharing Plans (H.R. 10 and Keogh) Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of tax-deferred retirement plans for employees. The Self-Employed Individuals’ Tax Retirement Act of 1962, as amended, commonly referred to as “H.R. 10” or “Keogh,” permits self-employed individuals to establish tax-favored retirement plans for themselves and their employees. Such retirement plans may permit the purchase of annuity contracts in order to provide benefits under the plans; however, there are limits on the amount of incidental benefits that may be provided under pension and profit sharing plans.
Deferred Compensation Plans of State and Local Governments and Tax- Exempt Organizations Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. A Section 457 plan must satisfy several conditions, including the requirement that it must not permit distributions prior to your separation from service (except in the case of an unforeseen emergency). When we make payments under a Section 457 Contract, the payment is taxed as ordinary income.Please see the SAI for information on restrictions under the Texas Optional Retirement Program. You may request a copy of the SAI from the Annuities Service Center.
In the case of a Contract held by the trustee of a Qualified Plan, references to the Owner in the discussion below should be read to mean the employee named as the Annuitant on the Contract.
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Collecting and Using Information
Through your participation in a Qualified Plan, the Company, your employer, your Plan administrator, and your Plan sponsor collect various types of confidential information you provide in your agreements, such as your name and the name of any Beneficiary, Social Security Numbers, addresses, and occupation information. The Company, your employer, the Plan administrator, and your Plan sponsor also collect confidential information relating to your Plan transactions, such as Contract Values, Purchase Payments, withdrawals, transfers, loans and investments. In order to comply with IRS regulations and other applicable law in servicing your Contract, the Company, your employer, the Plan administrator and the Plan sponsor may be required to share such confidential information among themselves, other current, former or future providers under your Qualified Plan, and among their employees. By maintaining a Contract for use in a Qualified Plan or by intending to make an Additional Purchase Payment, transfer of ownership, transfer, withdrawal or loan on an existing Contract used in a Section 403(b) Plan, you consent to such sharing of confidential information. The Company will not disclose any such confidential information to anyone, except as permitted by law or in accordance with your consent.
Contributions to Other Qualified Plans
You may make Additional Purchase Payments through rollovers or conversions only from certain types of Qualified Plans or by making annual contributions to the extent permitted under the Code and by us. See “V. Description of the Contract – Purchase Payments” for information on our Purchase Payment requirements.
We have no responsibility for determining whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code and the plan. In general, the Code imposes limitations on the amount of annual compensation that can be contributed into Other Qualified Plans and contains rules to limit the total amount you can contribute to all of your IRAs and Other Qualified Plans. Trustees and administrators of Other Qualified Plans may, however, generally invest and reinvest existing plan assets without regard to such Code imposed limitations on contributions. Certain distributions from Other Qualified Plans may be transferred directly to another plan, unless funds are added from other sources, without regard to such limitations.
Distributions from Other Qualified Plans
If permitted under your plan, you may take a withdrawal in the form of a distribution:
•  from a Contract intended for use with any Qualified Plan (other than a section 457 deferred compensation plan maintained by a tax-exempt organization) and make a “tax-free rollover” to a traditional IRA;
•  from a Contract intended for use with any Qualified Plan (other than a section 457 deferred compensation plan maintained by a tax-exempt organization) and make a “tax-free rollover” to a SIMPLE IRA, but only after the 2-year period beginning on the date the individual first participated in any qualified salary reduction arrangement maintained by the individual’s employer*; or
•  from a Contract intended for use with a retirement plan qualified under sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code and make a “tax-free rollover” to any such plans.
* Note that if your Contract is a SIMPLE IRA, it does not accept a rollover from any Qualified Plan other than another SIMPLE IRA.
In addition, if your Spouse is your designated beneficiary and survives you, he or she is permitted to take a distribution from a Contact intended for use with your tax-qualified retirement account and make a “tax-free rollover” to another tax-qualified retirement account in which your surviving Spouse participates, to the extent permitted by your surviving Spouse’s plan. A Beneficiary who is not your surviving Spouse may, if permitted by the plan, make a direct rollover to a traditional IRA of the amount otherwise distributable to him or her upon your death under a Contract that is held as part of a retirement plan described in sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code. The IRA is treated as an inherited IRA of the non-Spouse Beneficiary. A Spouse Beneficiary may also make a direct rollover to an inherited IRA.
You may make a “tax-free rollover” to a Roth IRA from a Contract intended for use as a Roth account in a retirement plan described in section 401(a) or section 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code.
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In lieu of taking a distribution from your plan (including a section 457 deferred compensation plan maintained by a tax-exempt organization), your plan may permit you to make a direct trustee-to-trustee transfer of a Qualified Contract from the plan.
Current Treasury Department regulations provide a simplified method to determine the taxable portion of annuity payments under Contracts issued in connection with Other Qualified Plans. Please consult with a qualified tax professional for further information.
Required Minimum Distributions from Other Qualified Plans
Note: Under the federal CARES Act, the obligation to take any required minimum distribution is waived for 2020.
Treasury Department regulations prescribe RMD rules governing the time at which distributions from Other Qualified Plans to the Owner and Beneficiary must commence and the form in which the distributions must be paid. These rules are substantially similar to the RMD rules described above for a traditional IRA, except that distributions of required minimum amounts must generally commence by the later of two dates as described below.
For a Qualified Plan participant born before July 1, 1949, required minimum distributions must generally begin by the later of:
•  April 1 of the calendar year following the calendar year in which the Qualified Plan participant turns 70½, or
•  April 1 of the calendar year following the calendar year in which Qualified Plan participant (other than a 5% owner) retires from the employer that sponsored the Qualified Plan.
For a Qualified Plan participant born after June 30, 1949, required minimum distributions must generally begin by the later of:
•  April 1 of the calendar year following the calendar year in which the Qualified Plan participant turns 72, or
•  April 1 of the calendar year following the calendar year in which the Qualified Plan participant (other than a 5% owner) retires from the employer that sponsored the Qualified Plan.
Penalty Tax on Premature Distributions from Other Qualified Plans
A 10% penalty tax may be imposed on the taxable amount of any payment from certain Qualified Contracts (but generally not section 457 plans). (The amount of the penalty tax is 25% of the taxable amount of any payment received from a SIMPLE retirement account during the 2-year period beginning on the date the individual first participated in any qualified salary reduction arrangement maintained by the individual’s employer.) There are exceptions to this penalty tax which vary depending on the type of Qualified Plan. In the case of distributions from certain Qualified Contracts, including a SIMPLE IRA, the penalty tax does not apply to a payment:
•  received on or after the date on which the Contract Owner reaches age 59½;
•  received on or after the Contract Owner’s death or because of the Contract Owner’s disability (as defined in the tax law); or
•  made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Contract Owner or for the joint lives (or joint life expectancies) of the Contract Owner and “designated beneficiary” (as defined in the tax law).*
* You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59½ and the passage of five years after the date of the first payment.
Exceptions from the penalty tax also apply to certain distributions taken for qualified birth or adoption expenses, certain qualified disaster distributions, as well as certain coronavirus-related distributions made during calendar year 2020. The Code also provides for the opportunity to repay such distributions to an eligible retirement plan, including an IRA. Please consult with your own qualified tax professional to determine whether you qualify for any of these exceptions and what tax treatment will apply to the distribution and any repayment.
These exceptions, as well as certain others not described herein, generally apply to taxable distributions from Other Qualified Plans (although, in the case of plans qualified under sections 401 and 403 of the Code, the exception for substantially equal periodic payments applies only if the Contract Owner has separated from service). If you wish to take a distribution and rely on an exception to the penalty tax, please consult with your own qualified tax professional.
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Withholding on Eligible Rollover Distributions
Eligible rollover distributions from a retirement plan that is qualified under sections 401(a), 403(a) or 403(b) of the Code, or from a governmental deferred compensation plan described in section 457(b) of the Code are subject to mandatory withholding. An eligible rollover distribution generally is any taxable distribution from such plans except: (i) minimum distributions required under section 401(a)(9) of the Code; (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments;” and (iii) if applicable, certain hardship withdrawals.
Federal income tax of 20% will be withheld from an eligible rollover distribution. The withholding is mandatory, and you cannot elect to have it not apply. This 20% withholding will not apply, however, if instead of receiving the eligible rollover distribution, you choose to have it directly transferred to an eligible retirement plan, including a traditional IRA, or to a Roth IRA.
If we have to withhold a portion of your distribution, we will treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal or other type of reduction in the guarantees and benefits that you may have purchased under an optional benefits Rider to your Contract.
We do not need to withhold any amounts if you provide us with information, on the forms we require for this purpose, that you wish to assign a Qualified Contract to another Qualified Plan and/or transfer amounts from that Contract directly to another Qualified Plan. Similarly, if you wish to make Additional Purchase Payments to a Qualified Contract, you may find it advantageous to instruct your existing retirement plan to transfer amounts directly to us, in lieu of making a distribution to you. Please seek independent tax advice if you intend to maintain a Contract for use with a Qualified Plan.
Designated Roth Accounts within Other Qualified Plans
The Small Business Jobs Act of 2010 authorizes: (1) participants in governmental deferred compensation plans described in section 457(b) to contribute deferred amounts to designated Roth accounts within their 457(b) plan; and (2) participants in 401(k), 403(b) and certain other plans to roll over qualified distributions into a designated Roth account within their plans, if allowed by their plans. The Contract, however, was not designed to separately account for any Contract Value in a single Contract that is split between Roth and non-Roth accounts, even if your 401(k) Plan, 403(b) Plan or 457 Plan allows you to split your account. If your plan allows it, and you split your Contract Value into Roth and non-Roth accounts, you or your plan administrator (in the case of 401(k) Plans) will be responsible for the accounting of your Contract Value for tax purposes: calculating withholding, income tax reporting, and verifying Required Minimum Distributions made under our Life Expectancy Distribution Program. We are not responsible for the calculations of any service provider that you may use to split Contract Value between Roth and non-Roth accounts. We will deny any request that would create such a split.
Rollover to a Roth IRA
Current tax law no longer imposes a restriction, based on adjusted gross income, on a taxpayer’s ability to initiate a direct rollover from a non-Roth account in a Qualified Plan to a Roth IRA. Accordingly, taxpayers with more than $100,000 of adjusted gross income may now initiate a direct rollover of a distribution from a retirement plan described in sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code to a Roth IRA. The Roth IRA annual contribution limit does not apply to rollover amounts.
You must, however, pay tax on any portion of the rollover amount that would have been taxed if you had not made a direct rollover to a Roth IRA. No similar limitations apply to rollovers to one Roth IRA from another Roth IRA or from a Roth account in a retirement plan described in section 401(a) or section 403(b) of the Code or a governmental deferred compensation plan described in section 457(b) of the Code. Please note that the amount deemed to be the “rollover amount” for tax purposes may be higher than the Contract Value because of the deemed value of guarantees.
A 10% penalty tax for premature distributions may apply if amounts converted to a Roth IRA are distributed within the 5-taxable year period beginning in the year the conversion is made. Generally, the amount converted to a Roth IRA is included in ordinary income for the year in which the account was converted.
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If you instruct us to transfer a rollover amount from a Qualified Contract to a Roth IRA, we will assume it is permitted under your plan and you may instruct us to not withhold any of the rollover for taxes and remittance to the IRS. A direct rollover is not subject to mandatory tax withholding, even if the distribution is includible in gross income. If you instruct us to withhold taxes in connection with a direct rollover from an existing Contract to a Roth IRA, we will treat any amount we withhold as a withdrawal from your Contract. This could result in an Excess Withdrawal, or other reduction of the guarantees and benefits you may have purchased under an optional benefits Rider to your Contract. Please read Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits” for information about the impact of withdrawals on optional benefit Riders.
Given the taxation of direct rollovers to a Roth IRA and the potential for an early distribution penalty tax, you should consider the resources that you have available, other than your retirement plan assets, for paying any taxes that would become due the year of any such rollover or a subsequent year. Please seek independent qualified tax advice if you intend to use the Contract in connection with a Roth IRA.
Section 403(b) Plans
Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations to have their employers purchase annuity contracts for them and, subject to certain limitations, to exclude the Purchase Payments from gross income for tax purposes. If you purchased a Contract for use in a retirement plan intended to qualify under section 403(b) of the Code (a “Section 403(b) Plan” or the “Plan”), we may restrict your ability to make Additional Purchase Payments unless (a) we receive the Additional Purchase Payment directly from the Section 403(b) Plan through your employer, the Plan’s administrator, the Plan’s sponsor or in the form of a transfer acceptable to us, (b) we have entered into an agreement with your Section 403(b) Plan concerning the sharing of information related to your Contract (an “Information Sharing Agreement”), and (c) unless contained in the Information Sharing Agreement, we have received a written determination by your employer, the Plan administrator or the Plan sponsor of your Section 403(b) Plan that the plan qualifies under section 403(b) of the Code and complies with applicable Treasury Department regulations (a “Certificate of Compliance”) (Information Sharing Agreement and Certificate of Compliance, together, the “Required Documentation”).
We may accept, reject or modify any of the terms of a proposed Information Sharing Agreement presented to us, and make no representation that we will enter into an Information Sharing Agreement with your Section 403(b) Plan.
Additional Purchase Payments. We will not accept Additional Purchase Payments in the form of salary reduction, matching or other similar contributions in the absence of the Required Documentation. Matching or other employer contributions to Contracts issued on or after January 1, 2009, will be subject to restrictions on withdrawals specified in the Section 403(b) Plan.
We will not knowingly accept transfers, in the absence of the Required Documentation, from another existing annuity contract or other investment under a Section 403(b) Plan to a previously issued Contract used in a Section 403(b) Plan. Subject to our receipt of the Required Documentation, such transfers shall be made directly from a Plan through an employer, a Plan administrator or a Plan sponsor, or by a transfer acceptable to us.
In the event that we do not receive the Required Documentation and you nonetheless direct us to accept a Purchase Payment, the transfer may be treated as a taxable transaction.
Please see the SAI for information regarding withdrawals under Section 403(b) Plans. You may request a copy of the SAI from the Annuities Service Center.
Loans under section 403(b) of the Code
You may be eligible for a loan of some or all of your Contract Value if:
•  We issued your Contract prior to November 12, 2007;
•  Your Contract does not contain a GMWB Rider;
•  Your Contract is intended for use with a retirement plan qualified under section 403(b) of the Code;
•  The retirement plan is not subject to Title 1 of ERISA; and
•  Your retirement plan permits you to request the loan.
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Loans from Qualified Contracts intended for use under retirement plans qualified under section 403(b) of the Code, where allowed, are subject to a variety of limitations, including restrictions as to the amount that may be borrowed, the duration of the loan and the manner in which the loan must be repaid.
Loans are subject to the Code, Treasury regulations, IRS rulings, and our procedures in effect at the time you apply for a loan. Because the rules governing loans under section 403(b) Contracts are complicated, please consult your tax professional before exercising any loan privilege for which you are eligible. Failure to meet the requirements for loans may result in adverse income tax consequences to you. The loan agreement you sign will describe the restrictions and limitations applicable to the loan at the time you apply.
Federal tax law generally requires loans to be repaid within 5 years (except in cases where the loan was used to acquire the principal residence of a plan participant), with repayments made at least quarterly and in level payments over the term of the loan. Interest will be charged on your Loan Amount. Failure to make a loan repayment when due will result in adverse tax income tax consequences to you.
We deduct the amount of any Unpaid Loans from the death benefit otherwise payable under the Contract. In addition, loans, whether or not repaid, will have a permanent effect on the Contract Value because the investment results of the Investment Accounts will apply only to the unborrowed portion of the Contract Value. The longer a loan is unpaid, the greater the effect is likely to be. The effect could be favorable or unfavorable.
If you have a loan outstanding under a Contract intended for use with a Section 403(b) Plan, any surrender or transfer of your Contract may subject you to income taxation on the amount of the loan balance.
Puerto Rico Contracts Issued to Fund Retirement Plans
The tax laws of Puerto Rico vary significantly from the provisions of the Internal Revenue Code of the United States that are applicable to various Qualified Plans. If you purchased a Contract intended for use in connection with Puerto Rican “tax qualified” retirement plans, please note that the text of this Prospectus addresses U.S. federal tax law only and is inapplicable to the tax laws of Puerto Rico.
See Your Own Tax Professional
The foregoing description of federal income tax topics and issues is only a brief summary and is not intended as tax advice. It does not include a discussion of federal estate and gift tax or state tax consequences. The rules under the Code governing Qualified Plans are extremely complex and often difficult to understand. Changes to the tax laws may be enforced retroactively. Anything less than full compliance with the applicable rules, all of which are subject to change from time to time, can have adverse tax consequences. The taxation of an Annuitant or other payee has become so complex and confusing that great care must be taken to avoid pitfalls. For further information, please consult with your own qualified tax professional.
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VIII.  General Matters
Asset Allocation Services
We are aware that certain third parties may have offered asset allocation services (“Asset Allocation Services”) in connection with the Contracts through which a third party may transfer amounts among Investment Options from time to time on your behalf. In certain cases we have agreed to honor transfer instructions from such Asset Allocation Services where we have received powers of attorney, in a form acceptable to us, from the Contract Owners participating in the service and where the Asset Allocation Service has agreed to the trading restrictions imposed by us. These trading restrictions include adherence to a Separate Account’s policies that we have adopted to discourage disruptive frequent trading activity. (See “Transfers Among Investment Options.”) We do not endorse, approve or recommend such services in any way. If you authorize payment for such services from your Contract Value: (1) we treat the payments as withdrawals under the terms described earlier in this Prospectus; and (2) any such withdrawals may incur a withdrawal charge or other fee under the terms described in this Prospectus, which would be separate and in addition to any other charges and fees you may pay for other withdrawals. (See “V. Description of the Contract Accumulation Period Provisions – Withdrawals” for information about the treatment of withdrawals under the Contract. You should also refer to Appendix C: “Optional Guaranteed Minimum Withdrawal Benefits,” or Appendix D: “Optional Guaranteed Minimum Income Benefits,” if you purchased one of our optional benefit Riders, for information about the impact of withdrawals on the Rider’s benefits.)
Distribution of Contracts
John Hancock Distributors, LLC (“JH Distributors”), a Delaware limited liability company that we control, is the principal underwriter and distributor of the Contracts offered through this Prospectus and of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of the John Hancock Variable Insurance Trust, whose securities are used to fund certain Variable Investment Options under the Contracts and under other annuity and life insurance products we offer.
JH Distributors’ principal address is 200 Berkeley Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934, (the “1934 Act”) and is a member of the Financial Industry Regulatory Authority (“FINRA”).
We offered the Contracts for sale through broker-dealers that had entered into selling agreements with JH Distributors. Broker-dealers sold the Contracts through their registered representatives who were appointed by us to act as our insurance agents. JH Distributors may also have offered the Contracts directly to potential purchasers.
JH Distributors may continue to pay compensation to broker-dealers for the promotion, sale and servicing of the Contracts. Contract Owners do not pay this compensation directly. These payments are made from JH Distributors’ and our own revenues, profits or retained earnings, which may be derived from a number of sources, such as fees received from a Portfolio’s distribution plan (“12b-1 fees”), the fees and charges imposed under the Contract, and other sources, including distribution plans of the underlying portfolios of a Portfolio that is a fund of funds.
The individual representative who sold you a Contract may receive a portion of the compensation that we pay for servicing an existing Contract, or that we pay upon receipt of an Additional Purchase Payment, under the representative’s own arrangement with his or her broker-dealer. We may also continue to pay commissions or overrides to a limited number of broker-dealers that provided marketing support and training services to the broker-dealers that sold and service the Contracts.
Standard Compensation
The amount and timing of compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement, but compensation with respect to Contracts sold through broker-dealers (inclusive of wholesaler overrides and expense allowances) and paid to broker-dealers is not expected to exceed 8% of Purchase Payments. In addition, beginning one year after each Purchase Payment, JH Distributors may pay ongoing compensation at an annual rate of up to 1.20% of the values of the Contracts attributable to such Purchase Payments. The greater the amount of compensation paid by JH Distributors at the time you make a Purchase Payment, the less it will pay as ongoing compensation. This compensation is not paid directly by Contract Owners. JH Distributors pays the compensation from its assets but expects to recoup it through the fees and charges imposed under the Contract (see “VI. Charges and Deductions”).
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Revenue Sharing and Additional Compensation
In addition to standard compensation arrangements and to the extent permitted by SEC and FINRA rules and other applicable laws and regulations, we, either directly or through JH Distributors, may have entered into special compensation or reimbursement arrangements (“revenue sharing”) with selected broker-dealers (“firms”). We determined which firms to support and the extent of the payments that we made and may continue to make. Under these arrangements, the form of payment may have been any one or a combination of a flat fee, a percentage of the assets we hold that are attributable to Contract allocations, a percentage of sales revenues, reimbursement of administrative expenses (including ticket charges), conference fees, or some other type of compensation.
In consideration of these arrangements, a firm may have given us preferential access to members of its sales force. In addition, the firm may have agreed to participate in our marketing and on-going training and servicing activities by allowing JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm’s sales force.
These arrangements were not offered to all firms, and the terms of such arrangements differed between firms. During 2012, we terminated these revenue sharing arrangements with broker-dealers with respect to the sale of the Contracts, although a small number of firms continue to receive revenue sharing payments in accordance with the terms of agreements entered into with those particular firms. We provide additional information on special compensation or reimbursement arrangements, including a list of firms to whom we paid annual amounts greater than $5,000 under these arrangements in 2018, in the SAI, which is available upon request. Any such compensation, which may have been significant at times, does not result in any additional direct charge to you by us.
Broker-dealers may receive or may have received additional payments from us, either directly or through JH Distributors, in the form of cash, other special compensation or reimbursement of expenses. These additional compensation or reimbursement payments may have included, for example, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payments for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public, advertising and sales campaigns regarding the Contract, and payments to assist a firm in connection with its marketing expenses and/or other events or activities sponsored by the firms. We may have contributed to, as well as sponsored, various educational programs, sales promotions and/or contests in which participating firms and their sales persons may have received gifts and prizes such as merchandise, cash, or other awards, as may be permitted by applicable FINRA rules and other applicable laws and regulations.
Differential Compensation
Compensation negotiated and paid by JH Distributors pursuant to a selling agreement with a broker-dealer may differ from compensation levels that the broker-dealer receives for selling or servicing other variable contracts. The compensation and revenue sharing arrangements may have given us benefits such as greater access to registered representatives. In addition, under their own arrangements, broker-dealer firms may pay a portion of any amounts received from us under standard or additional compensation or revenue sharing arrangements to their registered representatives. The additional compensation and revenue sharing arrangements may have given us benefits such as greater access to registered representatives. As a result, registered representatives may have been motivated to recommend one of our contracts over another issuer’s contract.
For sales representatives of certain affiliates, the amount of additional compensation paid was based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by us or our affiliates. The managers who supervised these sales representatives may also have been entitled to additional cash compensation based on the sale of proprietary products sold by their representatives. Because the additional cash compensation paid to these sales representatives and their managers was primarily based on sales of proprietary products, these sales representatives and their managers had an incentive to favor the sale of proprietary products over other products issued by non-affiliates.
Contracts Sold Directly Without Payment of Any Sales Compensation
(John Hancock USA Contracts only; not available in NY)
The Contract may have been sold directly to certain individuals under various circumstances that did not involve payment of any sales compensation to a registered representative. The following classes of individuals are eligible for this waiver:
•  officers, directors, trustees or employees (or a relative thereof) of John Hancock USA, Manulife, the John Hancock Variable Insurance Trust or any of their affiliates; and
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•  employees and registered representatives (and their immediate families) of registered broker-dealers (or their financial institutions) that: (1) have a sales agreements with John Hancock USA and its principal underwriter, JH Distributors, to sell the Contracts and (2) have approved the payment of the credit to their employees and registered representatives.
Transaction Confirmations
We send you confirmation statements for certain transactions in your Investment Accounts. You should carefully review these transaction confirmations to verify their accuracy. Please report any mistakes immediately to our Annuities Service Center. If you fail to notify our Annuities Service Center of any mistake within 60 days of the delivery of the transaction confirmation, we will deem you to have ratified the transaction. We encourage you to register for electronic delivery of your transaction confirmations. Please contact the John Hancock Annuities Service Center at the applicable telephone number or internet address shown on the first page of this Prospectus for more information on electronic transactions.
Reinsurance Arrangements
From time to time, we may utilize reinsurance as part of our risk management program. Under any reinsurance agreement, we remain liable for the contractual obligations of the Contracts’ guaranteed benefits, and the reinsurer(s) agree to reimburse us for certain amounts and obligations in connection with the risks covered in the reinsurance agreements. The reinsurer’s contractual liability runs solely to us, and no Contract Owner shall have any right of action against any reinsurer. In evaluating reinsurers, we consider the financial and claims paying ability ratings of the reinsurer. Our philosophy is to minimize incidental credit risk. We do so by engaging in secure types of reinsurance transactions with high quality reinsurers and diversifying reinsurance counterparties to limit concentrations. Some of the benefits that may be reinsured include living benefits, guaranteed death benefits, Fixed Investment Option guarantees or other obligations.
Statements of Additional Information
Our Statements of Additional Information provide additional information about the Contracts, including the optional benefit Riders and the Separate Accounts, including information on our history, services provided to the Separate Accounts and legal and regulatory matters. We filed the Statements of Additional Information with the SEC on the same date as this Prospectus, and incorporate them herein by reference. You may obtain a copy of the current Statements of Additional Information without charge upon request by contacting us at the Annuities Service Center shown on the first page of this Prospectus. The SEC also maintains a website (http://www.sec.gov) that contains the Statements of Additional Information and other information about us, the Contracts and the Separate Accounts. We list the Table of Contents of the Statements of Additional Information below.
John Hancock Life Insurance Company (U.S.A.) Separate Account H
Statement of Additional Information
Table of Contents
General Information and History
Accumulation Unit Value Tables
Services
        Independent Registered Public Accounting Firm
        Servicing Agent
        Principal Underwriter
        Special Compensation and Reimbursement Arrangements
Additional Information on Section 403(b) Plans or Tax-Sheltered Annuities
Additional Information on Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations
Legal and Regulatory Matters
Appendix A: Audited Financial Statements
John Hancock Life Insurance Company of New York Separate Account A
Statement of Additional Information
Table of Contents
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General Information and History
Accumulation Unit Value Tables
Services
        Independent Registered Public Accounting Firm
        Servicing Agent
        Principal Underwriter
        Special Compensation and Reimbursement Arrangements
Additional Information on Section 403(b) Plans or Tax-Sheltered Annuities
Additional Information on Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations
Legal and Regulatory Matters
Appendix A: Audited Financial Statements
Financial Statements
The Statements of Additional Information also contain the Company’s financial statements for the years ended December 31, 2019 and 2018, and its Separate Account financial statements for the year ended December 31, 2019 (the “Financial Statements”). Our Financial Statements provide information on our financial strength as of December 31, 2019, including information on our General Account assets that were available at that time to support our guarantees under the Contracts and any optional benefit Riders. The Company’s General Account consists of securities and other investments, the value of which may decline during periods of adverse market conditions.
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Appendix A: Examples of Calculation of Withdrawal Charge
Example 1. Assume a single payment of $50,000 is made into the Contract, no transfers are made, no Additional Purchase Payments are made, there are no withdrawals, and the Payment Enhancement is not elected. The table below illustrates five examples of the withdrawal charges that would be imposed if the Contract is completely withdrawn, based on hypothetical Contract Values. During any Contract Year the free Withdrawal Amount is the greater of accumulated earnings, or 10% of the total payments made under the Contract less any prior withdrawals in that Contract Year.
Contract Year Hypothetical
Contract Value 		Free
Withdrawal
Amount 		Payments
Liquidated 		Withdrawal Charge
Percent Amount
2 $55,000 $ 5,0001 $ 50,000 6% $3,000
4 $50,500 $ 5,0002 $ 45,500 5% $2,275
6 $60,000 $10,000 3 $ 50,000 3% $1,500
7 $35,000 $ 5,0004 $45,000 4 2% $ 900
8 $70,000 $20,000 5 $ 50,000 0% $ 0
1 In the second Contract Year the earnings under the Contract and 10% of payments both equal $5,000. Consequently, on total withdrawal $5,000 is withdrawn free of the withdrawal charge, the entire $50,000 payment is liquidated and the withdrawal charge is assessed against such liquidated payment (Contract Value less free Withdrawal Amount).
2 In the example for the fourth Contract Year, the accumulated earnings of $500 is less than 10% of payments, therefore the free Withdrawal Amount is equal to 10% of payments ($50,000 × 10% = $5,000) and the withdrawal charge is only applied to payments liquidated (Contract Value less free Withdrawal Amount).
3 In the example for the sixth Contract Year, the accumulated earnings of $10,000 is greater than 10% of payments ($5,000), therefore the free Withdrawal Amount is equal to the accumulated earnings of $10,000 and the withdrawal charge is applied to the payments liquidated (Contract Value less free Withdrawal Amount).
4 In the example for the seventh Contract Year, the Contract has negative accumulated earnings ($35,000 – $50,000), so the free Withdrawal Amount is equal to 10% of payments ($50,000 ×10% = $5,000) and the withdrawal charge is applied to total payments less the free Withdrawal Amount. This calculation only applies to John Hancock USA Contracts issued on or after April 1, 2003. For John Hancock USA Contracts issued prior to April 1, 2003 and for any John Hancock New York Contract, the withdrawal charge would be applied to the lesser of the total payments or the Contract Value, less the free Withdrawal Amount. In this example, the payments liquidated would be $30,000 ($35,000 – $5,000).
5 There is no withdrawal charge on any payments liquidated that have been in the Contract for at least 7 years.
Example 2. Assume a single payment of $50,000 is made into the Contract, no transfers are made, no Additional Purchase Payments are made, the Payment Enhancement is not elected, and there are a series of four withdrawals made during the second Contract Year of $2,000, $5,000, $7,000 and $8,000. The free Withdrawal Amount during any Contract Year is the greater of the Contract Value less the unliquidated payments (accumulated earnings), or 10% of payments less 100% of all prior withdrawals in that Contract Year.
Hypothetical
Contract Value 		Withdrawal
Requested 		Free
Withdrawal
Amount 		Payments
Liquidated 		Withdrawal Charge
Percent Amount
$65,000 $2,000 $15,000 1 $ 0 5% $ 0
$49,000 $5,000 $ 3,0002 $2,000 5% $100
$52,000 $7,000 $ 4,0003 $3,000 5% $150
$44,000 $8,000 $ 04 $8,000 5% $400
1 For the first example, accumulated earnings of $15,000 is the free Withdrawal Amount since it is greater than 10% of payments less prior withdrawals ($5,000 – 0). The amount requested ($2,000) is less than the free Withdrawal Amount so no payments are liquidated and no withdrawal charge applies.
2 The Contract has negative accumulate earnings ($49,000 – $50,000), so the free Withdrawal Amount is limited to 10% of payments less all prior withdrawals. Since $2,000 has already been withdrawn in the current Contract Year, the remaining free Withdrawal Amount during the third Contract Year is $3,000. The $5,000 withdrawal will consist of $3,000 free of withdrawal charge, and the remaining $2,000 will be subject to a withdrawal charge and result in payments being liquidated. The remaining unliquidated payments are $48,000.
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3 The Contract has increased in value to $52,000. The unliquidated payments are $48,000 so the accumulated earnings are $4,000, which is greater than 10% of payments less prior withdrawals ($5,000 – $2,000 – $5,000 <0). Hence the free withdrawal amount is $4,000. Therefore, $3,000 of the $7,000 withdrawal will be subject to a withdrawal charge and result in payments being liquidated. The remaining unliquidated payments are $45,000.
4 The free Withdrawal Amount is zero since the Contract has negative accumulated earnings ($44,000 – $45,000) and the full 10% of payments ($5,000) has already been withdrawn. The full amount of $8,000 will result in payments being liquidated subject to a withdrawal charge. At the beginning of the next Contract Year the full 10% of payments would be available again for withdrawal requests during that year.
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Appendix B: Optional Enhanced Death Benefits
This Appendix provides a general description of the optional enhanced death benefits that may have been available at the time you purchased a Wealthmark Contract. If you purchased an optional enhanced death benefit Rider, you pay the charge shown in the Fee Tables for that benefit as long as it is in effect.
You should carefully review your Contract, including any attached Riders, for complete information on benefits, conditions and limitations of any enhanced death benefit Riders applicable to your Contract. Please also carefully review “VII. Federal Tax Matters” for information about taxes applicable to optional benefit Riders.
The following is a list of the optional enhanced death benefit Riders that you may have had available to you at issue. Not all Riders were available at the same time or in all states.
1.  Enhanced Earnings Death Benefit – Not offered in New York or Washington
2.  Accelerated Beneficiary Protection Death Benefit – Not offered in New York or Washington
Enhanced Earnings Death Benefit
(Not offered in New York or Washington)
Depending on availability, you may have elected the optional Enhanced Earnings Death Benefit for an additional charge of 0.20% of the value of the Variable Investment Options. With this benefit, on the death of any Contract Owner prior to the Maturity Date, John Hancock USA will pay the death benefit otherwise payable under the Contract plus the benefit payable under the Enhanced Earnings Death Benefit. Election of the Enhanced Earnings Death Benefit may only be made at issue, is irrevocable, and it may only be terminated as described below.
Subject to the maximum amount described below, the Enhanced Earnings Death Benefit provides a payment equal to 40% of the appreciation in the Contract Value (as defined below) upon the death of any Contract Owner if the oldest Owner is 69 or younger at issue, and 25% if the oldest Owner is 70 or older at issue.
The appreciation in the Contract Value is defined as the Contract Value less the sum of all Purchase Payments, reduced proportionally by any amount deducted in connection with withdrawals. The death benefit will also be reduced by the amount of any Unpaid Loans under a Contract in the case of Qualified Contracts.
If the oldest Owner is 69 or younger at issue, the maximum amount of the Enhanced Earnings Death Benefit is equal to 40% of the sum of all Purchase Payments, less any amounts deducted in connection with withdrawals. If the oldest Owner is 70 or older at issue, the maximum amount of the Enhanced Earnings death benefit is equal to 25% of the sum of all Purchase Payments, less any amounts deducted in connection with withdrawals.
The amount deducted in connection with withdrawals will be on a pro rata basis and will be equal to (i) multiplied by (ii) where:
(i)  is equal to the Enhanced Earnings benefit prior to the withdrawal; and
(ii)  is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
If the Beneficiary under the Contract is the deceased Owner’s Spouse and elects not to take the death benefit as a lump sum, upon the death of any Owner the Contract and the Enhanced Earnings Death Benefit will continue with the surviving Spouse as the new Contract Owner. In this case, upon the death of the surviving Spouse prior to the Maturity Date, a second Enhanced Earnings benefit will be paid and the entire interest in the Contract must be distributed to the new Beneficiary.
For purposes of calculating the Enhanced Earnings benefit payable on the death of the surviving Spouse, the Enhanced Earnings benefit will be equal to zero on the date of the first Contract Owner’s death and the death benefit payable upon the first Contract Owner’s death will be treated as a Purchase Payment. In addition, all Purchase Payments made, and all amounts deducted in connection with withdrawals prior to the date of the first Contract Owner’s death, will not be considered in determining the Enhanced Earnings benefit.
Termination of the Enhanced Earnings Death Benefit
The Enhanced Earnings Death Benefit will terminate upon the earliest to occur of: (a) the date the Contract terminates; (b) the Maturity Date; or (c) the date on which the Enhanced Earnings benefit is paid. However, as noted in the paragraph above,
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if the deceased Owner’s Spouse is the Beneficiary, the Spouse may elect to continue the Contract (including the Enhanced Earnings Death Benefit) as the new Owner.
Enhanced Earnings Fee
A daily charge at an annual effective rate of 0.20% of the value of each Variable Investment Option is deducted from each Subaccount for the Enhanced Earnings Death Benefit.
The election of the Enhanced Earnings Death Benefit on a Contract may not always be in your interest since an additional fee is imposed for this benefit.
Accelerated Beneficiary Protection Death Benefit
(Not offered in New York or Washington)
Depending on availability, you may have elected the Accelerated Beneficiary Protection Death Benefit, which provides a death benefit, upon the death of any Owner prior to the Maturity Date. Under the Accelerated Beneficiary Protection Death Benefit, no death benefit is payable on the death of any Annuitant, except that if any Contract Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. This benefit was available for Contracts issued between December, 2003 and December, 2004.
Once the Accelerated Beneficiary Protection Death Benefit is elected, it is irrevocable. If the Accelerated Beneficiary Protection Death Benefit is elected, the death benefit paid under the Accelerated Beneficiary Protection Death Benefit replaces any death benefit paid under the terms of the Contract. An additional fee of 0.50% (as a percentage of the Accelerated Beneficiary Protection Death Benefit) is imposed for the Accelerated Beneficiary Protection Death Benefit (see “Accelerated Beneficiary Protection Death Benefit Fee” below). Once the Accelerated Beneficiary Protection Death Benefit is elected, the Owner may only be changed to an individual that is the same age or younger than the oldest current Owner.
The death benefit paid under the Accelerated Beneficiary Protection Death Benefit (“Accelerated Beneficiary Protection Death Benefit”) is determined as of the date on which written notice and proof of death and all required forms are received in good order at our Annuities Service Center. The amount of the Accelerated Beneficiary Protection Death Benefit is equal to the “Enhanced Earnings Death Benefit” factor plus the greatest of:
•  the Contract Value;
•  the Return of Purchase Payments Death Benefit Factor;
•  the Annual Step-Up Death Benefit Factor; or
•  the Graded Death Benefit Factor.
We may offer other optional Riders whose benefits and the names of such benefits are similar to the Accelerated Beneficiary Protection Death Benefit Factors referenced above. These other optional Riders are separate and distinct from the Accelerated Beneficiary Protection Death Benefit Factors referenced above, they contain separate optional Rider charges and their benefits and limitations may be different.
If there is any Debt under the Contract, the Accelerated Beneficiary Protection Death Benefit equals the amount described above less the Debt amount.
If the Beneficiary is the deceased Owner’s Spouse, and the Accelerated Beneficiary Protection Death Benefit is not taken in one sum immediately, the Contract and the Accelerated Beneficiary Protection Death Benefit Rider will continue with the surviving Spouse as the new Owner. Upon the death of the surviving Spouse prior to the Maturity Date, a second Accelerated Beneficiary Protection Death Benefit will be paid and the entire interest in the Contract must be distributed to the new Beneficiary in accordance with the provisions of the Contract.
For purposes of calculating the second Accelerated Beneficiary Protection Death Benefit, payable upon the death of the surviving Spouse:
•  The Accelerated Beneficiary Protection Death Benefit paid upon the first Owner’s death (“first Accelerated Beneficiary Protection Death Benefit”) is not treated as a Purchase Payment to the Contract;
•  In determining the “Enhanced Earnings Death Benefit” Factor (see “Enhanced Earnings Death Benefit Factor” below), on the date the first Accelerated Beneficiary Protection Death Benefit was paid, the Earnings Basis is reset to equal the first Accelerated Beneficiary Protection Death Benefit. The Earnings Basis will be increased for any
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  Purchase Payments made and decreased for any Withdrawal Reductions in connection with withdrawals taken after the date the first Accelerated Beneficiary Protection Death Benefit was paid. All Purchase Payments made and all amounts deducted in connection with withdrawals prior to the date the first Accelerated Beneficiary Protection Death Benefit was paid will not be considered in the determination of the “Enhanced Earnings Death Benefit” Factor;
•  In determining other elements of the death benefit calculation (described above as (b) the Return of Purchase Payments Death Benefit Factor; (c) the Annual Step-Up Death Benefit Factor; and (d) the Graded Death Benefit Factor), all Purchase Payments and all withdrawals before and after the date the first Accelerated Beneficiary Protection Death Benefit was paid will be considered.
Return of Purchase Payments Death Benefit Factor
For purposes of the Accelerated Beneficiary Protection Death Benefit, the Return of Purchase Payments Death Benefit Factor is equal to the sum of all Purchase Payments made less the sum of all Withdrawal Reductions in connection with withdrawals (see “Withdrawal Reductions” below).
“Enhanced Earnings Death Benefit” Factor
For purposes of the Accelerated Beneficiary Protection Death Benefit, the “Enhanced Earnings Death Benefit” factor is equal to 50% multiplied by Earnings, as defined under the “Enhanced Earnings Death Benefit” Factor calculation of the Accelerated Beneficiary Protection Death Benefit Rider. For purposes of the “Enhanced Earnings Death Benefit” Factor calculation, Earnings are equal to the Contract Value minus the Earnings Basis. The Earnings Basis is equal to 150% of each Purchase Payment made less the sum of all Withdrawal Reductions in connection with withdrawals (see example and “Withdrawal Reductions” below).
The Maximum “Enhanced Earnings Death Benefit” Factor is equal to 100% of the Earnings Basis.
Example. Assume you make a single Purchase Payment of $100,000 into the Contract, you make no additional Purchase Payments and you take no withdrawals. Also assume the Contract Value is equal to $175,000 on the date we determine the Accelerated Beneficiary Protection Death Benefit. Based on these assumptions:
•  The “Earnings Basis” is equal to 150% of $100,000, or $150,000.
•  “Earnings” are equal to $175,000 minus $150,000, or $25,000.
•  The “Enhanced Earnings Death Benefit” Factor is equal to 50% of $25,000, or $12,500.
Note that for purposes of the Accelerated Beneficiary Protection Death Benefit, “Earnings” will always be less than the excess of Contract Value over Purchase Payments. In this example, “Earnings” are less than $75,000 (or $175,000 minus $100,000).
Annual Step-Up Death Benefit Factor
For purposes of the Accelerated Beneficiary Protection Death Benefit, the Annual Step-Up Death Benefit Factor is equal to the greatest Anniversary Value since the effective date of the Accelerated Beneficiary Protection Death Benefit Rider but prior to the oldest Owner’s turning age 81. The Anniversary Value is equal to the Contract Value on a Contract Anniversary increased by all Purchase Payments made, less Withdrawal Reductions in connection with withdrawals since that Contract Anniversary (see “Withdrawal Reductions” below).
Graded Death Benefit Factor
For purposes of the Accelerated Beneficiary Protection Death Benefit, the Graded Death Benefit Factor is equal to (1) minus (2) where:
1.  is equal to the sum of each Purchase Payment multiplied by the applicable Payment Multiplier obtained from the table below:
Number of Complete Years
Payment has been in Contract 		Payment Multiplier1
0 100%
1 110%
2 120%
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Number of Complete Years
Payment has been in Contract 		Payment Multiplier1
3 130%
4 140%
5 150%
1 If a Purchase Payment is received on or after the oldest Owner’s 71st birthday, the Payment Multiplier equals 100% in all years. Thus, for Purchase Payments made on or after the oldest Owner reaches age 71, the benefit provided by the Graded Death Benefit Factor is equal to the benefit provided by the Return of Purchase Payments Death Benefit Factor.
2.  is equal to the sum of Withdrawal Reductions in connection with withdrawals taken. Withdrawal Reductions are recalculated each time the Graded Death Benefit Factor is recalculated, based on Purchase Payment and withdrawal history.
The Graded Death Benefit Factor will never be greater than Purchase Payments less the sum of all Withdrawal Reductions in connection with withdrawals taken plus $250,000.
Withdrawal Reductions. If total withdrawals taken during a Contract Year are less than or equal to 5% of total Purchase Payments (the “Annual Withdrawal Limit”), then the Withdrawal Reductions reduce the appropriate value by the dollar amount of each withdrawal. Otherwise, Withdrawal Reductions reduce the appropriate value by the percentage reduction in the Contract Value attributed to the amount of each withdrawal.
The guaranteed death benefits provided by the Accelerated Beneficiary Protection Death Benefit are adjusted at the point of each withdrawal but may be recalculated if subsequent withdrawals are taken within the same Contract Year. For example, if a withdrawal causes total withdrawals taken during that Contract Year to exceed 5% the Annual Withdrawal Limit, then all previous Withdrawal Reductions in that Contract Year will be recalculated and will reduce the appropriate value proportionally. If a subsequent Purchase Payment is made, then the Annual Withdrawal Limit will increase potentially resulting in a recalculation of previous Withdrawal Reductions within the same Contract Year.
Investment Options
At the current time, there are no additional Investment Option restrictions imposed when the Accelerated Beneficiary Protection Death Benefit Rider is chosen.
We reserve the right to restrict Investment Options at any time. We will notify the Owner in writing at least 30 days prior to restricting an Investment Option. If we restrict an Investment Option you may not be able to transfer or allocate Contract Value or Purchase Payments to the restricted Investment Option after the date of the restriction. Any amounts previously allocated to an Investment Option that is subsequently restricted will be unaffected by such restriction. Any amount previously allocated to Fixed Investment Options may be renewed subject to terms of the Contract.
Termination of the Accelerated Beneficiary Protection Death Benefit Rider
The Owner may not terminate the Accelerated Beneficiary Protection Death Benefit Rider. However, the Accelerated Beneficiary Protection Death Benefit will terminate automatically upon the earliest of:
•  the date the Contract terminates;
•  the Maturity Date; or
•  the later of the date on which the Accelerated Beneficiary Protection Death Benefit is paid, or the date on which the second Accelerated Beneficiary Protection Death Benefit is paid, if the Contract and the Accelerated Beneficiary Protection Death Benefit Rider are continued by the surviving Spouse after the death of the original Owner.
Accelerated Beneficiary Protection Death Benefit Fee
Prior to termination of the Accelerated Beneficiary Protection Death Benefit Rider, on each Contract Anniversary, the Accelerated Beneficiary Protection Death Benefit fee is calculated by multiplying 0.50% by the Accelerated Beneficiary Protection Death Benefit payable had death occurred on that Contract Anniversary. On each Contract Anniversary, the Accelerated Beneficiary Protection Death Benefit fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
If there is a full withdrawal on any date other than a Contract Anniversary, we will deduct a pro rata portion of the Accelerated Beneficiary Protection Death Benefit fee from the amount paid upon withdrawal. The Accelerated Beneficiary
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Protection Death Benefit fee will be determined based on the Accelerated Beneficiary Protection Death Benefit that would have been payable had death occurred immediately prior to the full withdrawal. For purposes of determining the Accelerated Beneficiary Protection Death Benefit fee, the commencement of annuity payments shall be treated as a total withdrawal.
Qualified Plans
If you use your Contract in connection with a Qualified Plan, including an IRA, you should consider the effects that the death benefit provided under the Contract (with or without Annual Step-Up Death Benefit) may have on your plan. Please consult your own qualified tax professional. Federal tax law may limit the period over which the death benefit can be paid when the Beneficiary is not your surviving spouse.
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Appendix C: Optional Guaranteed Minimum Withdrawal Benefits
This Appendix describes the following optional guaranteed minimum withdrawal benefit (“GMWB”) Riders that may be part of a previously issued Contract:
Income Plus For Life® Series Riders:
•  Income Plus For Life® 12.08 Series:
•  Income Plus For Life® 12.08
•  Income Plus For Life – Joint Life® 12.08
•  Income Plus For Life® (Quarterly Step-Up Review) Series
•  Income Plus For Life® (Quarterly Step-Up Review)
•  Income Plus For Life – Joint Life® (Quarterly Step-Up Review)
•  Income Plus For Life® (Annual Step-Up Review) Series*
•  Income Plus For Life® (Annual Step-Up Review)
•  Income Plus For Life – Joint Life® (Annual Step-Up Review)
* The Income Plus For Life® (Annual Step-Up Review) Series Riders were previously referred to as “Income Plus For Life®” and “Income Plus For Life – Joint Life®.”
Principal Plus for Life Series Riders
•  Principal Plus for Life
•  Principal Plus for Life Plus Automatic Annual Step-Up
Principal Plus Rider
Principal Returns Rider
These optional GMWB Riders are no longer available to be added to your Contract. If you purchased any of these Riders, you pay the charge shown in the Fee Tables for that benefit as long as it is in effect. These Riders were not available at all times we offered a Contract, nor were they available in all states. Where they were available, we only permitted one GMWB Rider to be purchased per Contract. You should review your Contract carefully to determine which of these optional benefit Riders, if any, you purchased. These Riders cannot be revoked once elected.
We describe a different type of optional benefit Rider, known as a “Guaranteed Minimum Income Benefit Rider,” in Appendix D.
General Information about Guaranteed Minimum Withdrawal Benefit Riders
This section of the Appendix provides general information about our GMWB Riders. We provide specific information about each GMWB Rider’s features in the sections that follow.
Forms of Guaranteed Amounts
Our GMWB Riders provide two different types of benefits:
Lifetime Income Amount. This type of benefit provides a guarantee of a minimum amount available for annual withdrawals for the duration of a single lifetime, or for the duration of two (“joint”) lifetimes. Lifetime Income Amount guarantees begin on a Lifetime Income Date.
Guaranteed Withdrawal Amount. This type of benefit provides a guarantee of a minimum amount available for annual withdrawals that will last for a period of time measured by a Benefit Base (sometimes referred to as a “Guaranteed Withdrawal Balance”). Initial Guaranteed Withdrawal Amounts are generally determined on the date you purchase a Rider, but may be increased if you defer taking withdrawals and decreased if you take Excess Withdrawals.
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The Rider you purchased may provide either a Lifetime Income Amount or a Guaranteed Withdrawal Amount or both types of benefits. We describe the types of benefits for each Rider in the Features section of this Appendix.
Covered Person(s)
Please review the “Features” section of the applicable Rider to determine if the Rider provides a lifetime income guarantee and, if so, whether it can be based on a single life or on joint lives.
Single Life Guarantee. For Riders that provide a lifetime income guarantee based on the life of a single Covered Person, the Covered Person is the oldest Owner at issue of the Rider. We may have waived the requirement of Contract ownership and permitted you to designate a Covered Person who is an Annuitant in situations where the Owner is not the Annuitant.
EXAMPLE: We permit the Annuitant to be a Covered Person if a custodial account owns a Qualified Contract for the benefit of an Annuitant.
The Covered Person must remain an Owner (or an Annuitant, subject to our underwriting rules) to receive benefits under the Rider.
Joint Life Guarantee. For Riders that provide a lifetime income guarantee based on the lifetime durations of two Covered Persons, we determined the Covered Persons at the time you elected the Rider. A spouse may need to qualify as a “spouse” under state law (a “Spouse”) to be treated as a Covered Person under the Contract.
For Riders issued with Nonqualified Contracts:
•  both Spouses must be named as co-Owners of the Contract; or
•  if only one Spouse is named as an Owner of the Contract (or Annuitant if the Owner is a non-natural person), the other Spouse must be designated as the Beneficiary of the Contract.
For Riders issued with Qualified Contracts:
•  one Spouse must be named as the Owner (or Annuitant if the Owner is a non-natural person); and
•  the Owner’s Spouse must be the designated Beneficiary.
A Covered Person will no longer qualify as such (i.e., that Covered Person will be removed from the Rider) if that person is no longer designated as an Owner, co-Owner, Annuitant, co-Annuitant or Beneficiary as required above. In the event that you and your Spouse become divorced after you purchased the Rider, you may not add a new Spouse as a Covered Person. If you remove your Spouse as an Owner, Beneficiary or Annuitant, that person will no longer be a Covered Person under the Rider (see “Impact of Divorce” in “V. Description of the Contract – Accumulation Period Provisions” for additional information on the impact of divorce). You may lose benefits under the Rider if a Covered Person is removed from the Rider.
Availability of Guaranteed Minimum Withdrawal Benefit Riders
You could have elected a GMWB Rider at the time you purchased a Contract. Once you elected a GMWB Rider, its effective date usually is the Contract Date (unless we permitted otherwise) and it is irrevocable. We charge an additional fee for each Rider that differs by Rider.
Rider Fees
We charge an additional fee on each Contract Anniversary for a GMWB Rider, and reserve the right to increase the fee on the effective date of each Step-Up in the benefits under that Rider. We withdraw the amount of the fee from each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value. We deduct the pro rata share of the annual fee from the Contract Value:
•  on the date we determine the death benefit;
•  after the Annuity Commencement Date at the time an Annuity Option begins; or
•  at full surrender of the Contract; or
•  depending on the Rider, on the date an Excess Withdrawal reduces the Contract Value to zero.
We do not deduct any additional Rider fee during the Settlement Phase or after the Annuity Commencement Date once an Annuity Option begins.
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Fee for Income Plus For Life® 12.08 Series Riders. The fee is equal to 0.85% of the Adjusted Benefit Base for Contracts issued outside of New York, and 0.80% for Contracts issued in New York. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change either the Income Plus For Life® 12.08 or Income Plus For Life – Joint Life® 12.08 fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Income Plus For Life® (Quarterly Step-Up Review) Series Riders. The fee is equal to 0.75% of the Adjusted Benefit Base for Contracts issued outside of New York, and 0.70% for Contracts issued in New York. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change either the Income Plus For Life (Quarterly Step-Up Review) or Income Plus For Life – Joint Life® (Quarterly Step-Up Review) fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Income Plus For Life® (Annual Step-Up Review) Series Riders. The fee is equal to 0.60% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Additional Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to change the Income Plus For Life® (Annual Step-Up Review) or Income Plus For Life – Joint Life® (Annual Step-Up Review) fee on the effective date of each Step-Up. In such a situation, neither fee will ever exceed 1.20%.
Fee for Principal Plus for Life. The fee is equal to 0.40% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Anniversary) increased by the amount of any Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus for Life fee on the effective date of each Step-Up. In such a situation, the Principal Plus for Life fee will never exceed 0.75%.
Fee for Principal Plus for Life Plus Automatic Annual Step-Up. The current fee is equal to 0.70% of the Adjusted Benefit Base. The fee for Riders purchased December 15, 2008 through April 30, 2009 is 0.70% of the Adjusted Benefit Base. The fee for Riders purchased June 16, 2008 through December 12, 2008 is 0.55% of the Adjusted Benefit Base. The fee for Riders purchased prior to June 16, 2008 is 0.60% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by the amount of any Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus for Life Plus Automatic Annual Step-Up Rider fee on the effective date of each Step-Up. In such a situation, the Principal Plus for Life Plus Automatic Annual Step-Up Rider fee will never exceed 1.20%.
Fee for Principal Plus. The fee is equal to 0.30% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary adjusted by the amount of any Step-Up, Credit or Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to change the Principal Plus fee on the effective date of each Step-Up. In such a situation, the Principal Plus fee will never exceed 0.75%.
If we decide to increase the rate of a Rider fee at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the Step-Up. If you decline a scheduled Step-Up, we will not increase the Rider fee at that time. You will have the option to elect a Step-Up within 30 days of subsequent Step-Up Dates. If you decide to step-up a guaranteed amount at that time, we will thereafter resume automatic Step-Ups on each succeeding Step-Up Date.
Fee for Principal Returns. The fee is equal to 0.50% of the Adjusted Benefit Base. The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary (including any Step-Up applied on that prior Contract Anniversary) increased by any Additional Purchase Payment made during the Contract Year prior to the current Contract Anniversary. The Rider refers to the Adjusted Benefit Base as the “Adjusted Guaranteed Withdrawal Balance.” We reserve the right to increase the Principal Returns fee on the effective date of each Step-Up. In such a situation, the Principal Returns fee will never exceed 0.95%.
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Restrictions on Additional Purchase Payments
If you purchased a GMWB Rider, we restrict your ability to make Additional Purchase Payments to the Contract without our prior approval.
Restrictions on Additional Purchase Payments for Nonqualified Contracts. If we issued your Contract not in connection with an IRA or other Qualified Plan, we will not accept, without our prior approval:
•  (Contracts issued in states other than OR and NJ) any Additional Purchase Payment after the first Contract Anniversary; or
•  (Contracts issued in OR or NJ) any Additional Purchase Payment after the first Contract Anniversary following the Rider Date if your total Additional Purchase Payments after the first Contract Anniversary exceed $100,000.
Restrictions on Additional Purchase Payments for Qualified Contracts. If we issued your Contract in connection with a Qualified Plan, including an IRA, we will not accept, without our prior approval:
•  (Contracts issued in states other than OR and NJ) Additional Purchase Payments on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issued your Contract after you became Age 64);
•  (Contracts issued in OR or NJ) Additional Purchase Payments on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issued your Contract after you became Age 64), if your total payments after the first Contract Anniversary exceed $100,000; but
•  (all Contracts) any Purchase Payment after the oldest Covered Person becomes age 81.
For Contracts issued with Principal Plus, we reserve the right to apply the Nonqualified Contract Additional Purchase Payment Restrictions to Qualified Contracts.
Additional Purchase Payments for both Nonqualified Contracts and Qualified Contracts are also subject to the following:
•  You may not make an Additional Purchase Payment, without our approval, if your Contract Value exceeds $1 million at the time of payment or if the Additional Purchase Payment would cause your Contract Value to exceed $1 million.
•  You may not make an Additional Purchase Payment during a Rider’s Settlement Phase (see “Settlement Phase” below).
•  Other limitations on Additional Purchase Payments may vary by state.
You should consult with a qualified tax professional regarding your GMWB Rider for further information on tax rules affecting Qualified Contracts, including IRAs.
Approval of Additional Purchase Payments through Automatic Withdrawals from Bank Accounts and Payroll Deduction Plans. We will continue to accept Additional Purchase Payments under the terms of your Contract and GMWB Rider when made in connection with an automatic withdrawal program from your bank account, brokerage account or other account you hold at a similar financial institution (“Financial Account Plan”) or in connection with a payroll deduction plan (“Payroll Plan”) if:
•  the Financial Account Plan or Payroll Plan was in effect prior to May 4, 2012,
•  no automatic withdrawal program from your Contract is in effect, and
•  your Rider is not in the Settlement Phase.
Additional Purchase Payments will be subject to our prior approval, however, if any of the following apply:
•  you make the payment under a Bank Plan and it exceeds the amount authorized on May 4, 2012 to be withdrawn periodically from your bank account and paid to us as an Additional Purchase Payment; or
•  your Contract Value exceeds $1 million at the time of payment, under either a Bank Plan or Payroll Plan; or
•  your Contract Value is less than $1 million and the Additional Purchase Payment under either a Bank Plan or Payroll Plan would cause your Contract Value to exceed $1 million; or
•  (Qualified Contracts) you make the payment after the later of the first Contract Anniversary following the Rider Date or the Age 65 Contract Anniversary and your total payments after the first Contract Anniversary exceed $100,000.
For Qualified Contracts, we will not accept an Additional Purchase Payment under a Bank Plan or Payroll Plan after the oldest Covered Person becomes age 81.
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Approval of Additional Purchase Payment to Prevent Cancellation of Contracts. If (where permitted by state law) we intend to cancel a Contract at the end of any two consecutive Contract Years (three for Contracts issued in New York) in which no Purchase Payments have been made, we will mail notice to you at your last known address to allow you to make the necessary Additional Purchase Payment to keep your Contract in force.
Approval of Other Additional Purchase Payments. There may be circumstances other than as described above where we may approve Additional Purchase Payments for Contracts with GMWB Riders. We may modify, suspend, waive or terminate our restrictions on Additional Purchase Payments at any time. For further information, contact your financial representative or our Annuities Service Center.
Impact of Additional Purchase Payment Restrictions on Increases in Guaranteed Amounts. The restrictions on Additional Purchase Payments described above may prevent you from increasing the amount of any Credits or Step-Ups we would otherwise have applied to the Benefit Base based on Additional Purchase Payments, and may prevent you from increasing the amounts we guarantee under a GMWB Rider as a result of Additional Purchase Payments.
Restrictions on Investment Options Under Guaranteed Minimum Withdrawal Benefit Riders.
If you purchased any of our GMWB Riders, you must invest 100% of your Contract Value at all times in one or more of the Investment Options we make available for these Riders. Under our current rules, you must invest either:
•  among the currently available individual Investment Options (see “Available Individual Investment Options” below); or
•  in a manner consistent with any one of the restricted Model Allocations for which you may have been eligible (see “Restricted Model Allocations” below).
Subject to our restrictions on frequent trading:
•  if you are invested in one or more of the available individual Investment Options, you may transfer Contract Value between these Investment Options; or
•  if you are invested in a restricted Model Allocation, you may transfer 100% of your Contract Value from the restricted Model Allocation to one or more of the currently available individual Investment Options.
You may not specify the Investment Option from which you wish to make a withdrawal; withdrawals are taken in accordance with our default procedures described in “V. Description of the Contract – Accumulation Period Provisions – Withdrawals.” We allocate Additional Purchase Payments in accordance with your instructions, subject to the restrictions described herein. All Investment Options may not be available through all distribution partners.
Please consult with your financial representative to assist you in determining whether investing in any individual Investment Option or Model Allocation is suitable for your financial needs and risk tolerance.
Available Individual Investment Options. If you purchased a Contract with a GMWB Rider, we limit the individual Investment Options to which you may allocate your Contract Value. The currently available individual Investment Options invest in the following Portfolios:
•  Lifestyle Balanced Portfolio
•  Lifestyle Conservative Portfolio
•  Lifestyle Growth Portfolio
•  Lifestyle Moderate Portfolio
•  Managed Volatility Balanced Portfolio
•  Managed Volatility Conservative Portfolio
•  Managed Volatility Growth Portfolio
•  Managed Volatility Moderate Portfolio
•  Total Bond Market Trust
•  Ultra Short Term Bond Trust
You may allocate your Contract Value to any combination of these Investment Options and you may also use our DCA program from your selected Source Investment Option, in connection with your selected Investment Options.
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Restricted Individual Investment Options. The following individual Investment Options, which may have been available when you purchased a GMWB Rider, are currently restricted (“Restricted Options”):
•  American Asset Allocation Trust
•  Capital Appreciation Value Trust
•  Money Market Trust
If all or a portion of your Contract Value was allocated to one or more of the Restricted Options on the last day it was available, you may continue to allocate Additional Purchase Payments to that Restricted Option, except to the Money Market Investment Option. No additional amounts may be allocated to the Money Market Investment Option. Also, you will not be able to transfer amounts from another Investment Option to any of the Restricted Options. And you will no longer be able to use the Restricted Option if at any point you transfer all of your Contract Value out of that Restricted Option into any of the available individual Investment Options.
We reserve the right to restrict Investment Options in your variable Investment Account at any time. If we restrict an Investment Option, you may not be able to allocate or transfer Additional Purchase Payments (even if the Additional Purchase Payments are not otherwise restricted) or Contract Value into the Restricted Option after the date of the restriction. Any amounts you allocated to an Investment Option before we imposed restrictions will not be affected by such restrictions as long as it remains in that Investment Option.
For more information regarding these Portfolios, including information relating to their investment objectives, policies and restrictions, and the risks of investing in such Portfolios, please see “IV. General Information about Us, the Separate Accounts and the Portfolios” as well as the prospectuses for the applicable Portfolios. You can obtain a copy of the Portfolios’ prospectuses by contacting the Annuities Service Center shown on the first page of this Prospectus. Please read a Portfolio’s prospectus carefully before investing in the corresponding Variable Investment Option.
Restricted Model Allocations. We do not currently make “Model Allocations” available. If you allocated Contract Value to one of the Model Allocations shown below in the Table of Restricted Model Allocations on or before the last day it was available, you may continue to allocate your Contract Value to that Model Allocation if: (a) you continue to allocate your entire Contract Value, including future Purchase Payments, to that Model Allocation; and (b) you rebalance your entire Contract Value to that Model Allocation on a quarterly basis. You will no longer be able to use that Model Allocation if you transfer your Contract Value to any Investment Option other than as permitted in that Model Allocation.
If you are permitted to use a restricted Model Allocation, you may also continue to use our DCA program from any available DCA Source Investment Option in connection with that restricted Model Allocation. You also authorize us to rebalance your entire Contract Value allocated to that restricted Model Allocation on a quarterly basis to the fixed percentages shown in the table for each Investment Option in that Model Allocation. In addition, you may not make any transfers to other Investment Options except to transfer 100% of your Contract Value to one or more of the available individual Investment Options.
None of the Model Allocations is a fund of funds. We do not actively manage any Model Allocation. Once you invest in a Model Allocation, we will not change the allocation percentages (except to rebalance) or component Portfolios based on changes in investment strategy, market conditions or expectations of future performance. Because a Model Allocation does not change, you should periodically consult with your financial representative to ensure that your selected Model Allocation continues to be appropriate for your needs and circumstances.
Table of Restricted Model Allocations. The following Model Allocation was available with Contracts issued with GMWB Riders issued prior to May 1, 2009, and are restricted as described above. The percentages indicated in the table are the percentage allocations of each Portfolio currently within the Model Allocations.
Restricted Model Allocation for a Guaranteed Minimum Withdrawal Benefit Rider:
Model Allocation Name Model Allocation Percentage Portfolio Name
Fundamental Holdings of America
(not available after April 30, 2009) 		15%
25%
25%
35% 		American International Trust
American Growth Trust
American Growth-Income Trust
Select Bond Trust
Additional Restricted Model Allocations for Principal Plus (formerly known as Guaranteed Principal Plus). If you purchased a Contract with a Principal Plus Rider on or after December 8, 2003 (for John Hancock USA Contracts) or on or
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after May 10, 2004 (for John Hancock New York Contracts), but prior to August 16, 2004, you may continue to invest in one of the Restricted Model Allocations shown below if you were invested in that Model Allocation on August 16, 2004. These Restricted Model Allocations are not available for Contracts issued with Principal Plus on or after August 16, 2004. If you were invested in a Restricted Model Allocation on August 16, 2004, you may continue to allocate your Contract Value to that Model Allocation if: (a) you continue to allocate your entire Contract Value (other than amounts in any available Fixed Investment Option under our DCA Program), including future Purchase Payments, to that Model Allocation; and (b) you rebalance your entire Contract Value to that Model Allocation on a quarterly basis. You will no longer be able to use that Model Allocation, however, if you transfer your Contract Value to any Variable Investment Option other than as permitted in that Model Allocation.
Restricted Model Allocations. The following eight Model Allocations were available with Principal Plus for Contracts issued prior to August 16, 2004 as described above. The percentages indicated in the table are the percentage allocations of each Portfolio currently within the Model Allocation.
Restricted Model Allocations for Principal Plus:
Model Allocation Name Model Allocation Percentage Portfolio Name
Conservative Income Strategy
(formerly, “Scudder Conservative Income Strategy”): 		64.00%
10.00%
7.00%
6.00%
3.00%
2.00%
2.00%
2.00%
2.00%
1.00%
1.00% 		Investment Quality Bond Trust
Active Bond Trust
Fundamental All Cap Core Trust
500 Index Trust
Disciplined Value International Trust
Total Stock Market Index Trust
Real Estate Securities Trust
Small Cap Index Trust
Fundamental Large Cap Value Trust
Global Trust
International Equity Index Trust
Growth Strategy
(formerly, “Scudder Growth Strategy”): 		23.00%
18.00%
14.00%
14.00%
11.00%
5.00%
5.00%
4.00%
2.00%
2.00%
2.00% 		500 Index Trust
Fundamental All Cap Core Trust
Disciplined Value International Value Trust
Fundamental Large Cap Value Trust
Investment Quality Bond Trust
Total Stock Market Index Trust
Small Cap Index Trust
Real Estate Securities Trust
Global Trust
International Equity Index Trust
Active Bond Trust
Growth & Income Strategy
(formerly, “Scudder Growth & Income Strategy”): 		32.00%
17.00%
15.00%
9.00%
7.00%
5.00%
4.00%
3.00%
2.00%
2.00%
4.00% 		Investment Quality Bond Trust
500 Index Trust
Fundamental All Cap Core Trust
Disciplined Value International Trust
Fundamental Large Cap Value Trust
Active Bond Trust
Total Stock Market Index Trust
Real Estate Securities Trust
Global Trust
International Equity Index Trust
Small Cap Index Trust
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Model Allocation Name Model Allocation Percentage Portfolio Name
Income & Growth Strategy
(formerly, “Scudder Income & Growth Strategy”): 		46.00%
13.00%
11.00%
7.00%
6.00%
5.00%
3.00%
3.00%
2.00%
2.00%
2.00% 		Investment Quality Bond Trust
Fundamental All Cap Core Trust
500 Index Trust
Active Bond Trust
Disciplined Value International Trust
Fundamental Large Cap Value Trust
Total Stock Market Index Trust
Small Cap Index Trust
Global Trust
International Equity Index Trust
Real Estate Securities Trust
Growth Focus: 45.00%
40.00%
15.00% 		500 Index Trust
Investment Quality Bond Trust
Fundamental All Cap Core Trust
Sector Focus: 40.00%
30.00%
15.00% 		Investment Quality Bond Trust
Total Stock Market Index Trust
Real Estate Securities Trust
Fundamental All Cap Core Trust
US All-Capitalization: 40.00%
15.00%
15.00%
15.00%
15.00% 		Investment Quality Bond Trust
500 Index Trust
Small Cap Index Trust
Fundamental All Cap Core Trust
Mid Cap Index Trust
Value Focus: 40.00%
30.00%
30.00% 		Investment Quality Bond Trust
Fundamental All Cap Core Trust
Fundamental Large Cap Value Trust
If you allocated Contract Value to the Model Allocation shown on the last day it was available, you may continue to allocate your Contract Value to that Model Allocation if: (a) you continue to allocate your entire Contract Value, including future Purchase Payments, to that Model Allocation; and (b) you rebalance your entire Contract Value to that Model Allocation on a quarterly basis. You will no longer be able to use that Model Allocation, however, if you transfer your Contract Value to any of the available individual investment options, to any other Model Allocation, or to any Variable Investment Option other than as permitted in that Model Allocation.
A Model Allocation may experience volatility in its investment performance or lose money, depending on the performance of the component Portfolios referenced above. Your investment in the Portfolios will fluctuate and, when redeemed, may be worth more or less than your original investment. For more information regarding each Portfolio that we permit you to invest in through a Model Allocation, including information relating to that Portfolio’s investment objectives, policies and restrictions, and the risks of investing in that Portfolio, please see “IV. General Information about Us, the Separate Accounts and the Portfolios,” as well as the Portfolio’s prospectus. You can obtain a Prospectus containing more complete information on each of the Portfolios by contacting the respective Annuities Service Center shown on the first page of this Prospectus. Please read the Portfolio’s prospectus carefully before investing in the corresponding Investment Option.
Increases in Guaranteed Amounts
We may increase the amounts we guarantee under a GMWB Rider as a result of Additional Purchase Payments that we accept (see “Restrictions on Additional Purchase Payments,” above), Credits and Step-Ups.
Additional Purchase Payments. Additional Purchase Payments, up to specified limits, can increase amounts guaranteed under the GMWB Riders. Our restrictions on Additional Purchase Payments, however, may prevent you from increasing the amounts we guarantee under a GMWB Rider.
Credits. You may be able to increase the amount we guarantee under your GMWB Rider if you defer making withdrawals during the periods described in the Rider.
Step-Ups. If your Contract experiences favorable investment performance while a GMWB Rider is in effect, you may be able to increase the amount we guarantee under your GMWB Rider on certain Anniversary Date(s) of your Contract. Step-Ups may occur only when a Rider is in effect, and before the Settlement Period for that Rider.
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We describe Additional Purchase Payments, Credits and Step-Ups in the discussion of each Rider’s features in this Appendix.
Withdrawals, Distributions and Settlements under Guaranteed Minimum Withdrawal Benefit Riders
Overview. Each of our GMWB Riders permits you to withdraw a guaranteed minimum annual amount during the Accumulation Period, subject to the terms and conditions of the specific Rider you elected. We may have determined the amount of the initial guaranteed minimum annual amount after you purchased the Rider, depending on the type of guaranteed minimum withdrawal benefit you purchased.
Our Income Plus For Life® Series Riders and Principal Plus for Life Series Riders permit you to withdraw a guaranteed minimum annual amount (called the “Lifetime Income Amount”) during the Accumulation Period that begins on a Lifetime Income Date and can last for as long as a Covered Person lives. The Lifetime Income Date depends on the age of the Covered Person when we issued your Contract.
Our Principal Plus, Principal Plus for Life Series Riders and Principal Returns Riders guarantee the return of your Purchase Payments in the Contract, regardless of market performance, as long as you limit your annual withdrawals to a guaranteed minimum amount (called the “Guaranteed Withdrawal Amount”), beginning on the date you purchased the Rider.
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. You may become ineligible for certain Credits, however, if you take withdrawals during the Rider’s Credit Period. We reduce your Contract Value and your death benefit each time you take a withdrawal.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals of more than the amount guaranteed under the terms of the Rider you select.
If you purchased an Income Plus For Life® Series Rider or a Principal Plus for Life Series Rider before the Lifetime Income Date, your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
Please refer to the “Features” section for each Rider for specific information about the amount you are permitted to withdraw without affecting future guaranteed minimum amounts.
Excess Withdrawals may reduce or eliminate future guaranteed minimum withdrawal values.
Pre-authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with a GMWB Rider, you can pre- authorize periodic withdrawals to receive amounts guaranteed under the Rider.
The Income Made Easy Program allows you to select withdrawals under your Rider in the following ways: (A) the annual guaranteed amount (“full allowable amount”) under your Rider, which automatically increases to reflect an increase in the annual guaranteed amount under the Rider resulting from a Step-Up or an Additional Purchase Payment (where permitted – see “V. Description of the Contract – Accumulation Period Provisions – Purchase Payments”); (B) the full allowable amount and any increases in Contract Value above that amount at the end of a Contract Year resulting from investment gains in your Contract at the end of that Contract Year (this option reduces your ability to obtain Step-Ups after you enroll in the program); (C) the full allowable amount plus any amount under our Life Expectancy Distribution Program that exceeds the full allowable amount; (D) the annual amount under our Life Expectancy Distribution Program (in lieu of the full allowable amount); or (E) a specified dollar amount that is less than the full allowable amount.
Your participation in the Income Made Easy Program will be suspended (i.e., we will not process any further withdrawals under the Program until you reenroll) if:
•  you select option A, B or C above; and
•  you take an additional withdrawal outside the Income Made Easy Program in any Contract Year in which the program is in effect.
Income Made Easy withdrawals, like other withdrawals:
•  may be subject to income tax (including withholding for taxes) and, if your Rider calculates an annual guaranteed amount before you turn age 59½, a 10% penalty tax under the Code;
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•  reduce the death benefit and other optional benefits;
•  cancel your eligibility to earn a Credit under the provisions of your GMWB Rider during any Contract Year in which you receive a payment under the program; and
•  may reduce your ability to obtain Step-Ups.
If you are interested in the Income Made Easy Program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in this program. We will, however, suspend your participation in the Income Plan (see “Special Withdrawal Services – The Income Plan” in V. Description of the Contract”) if you enroll in the Income Made Easy Program.
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. If you purchased a Contract with a GMWB Rider, you may request us in writing, in a form acceptable to us and received at our Annuities Service Center, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your “life expectancy” (or, if applicable, the joint life expectancy of you and your Spouse). The Life Expectancy Distribution Program may provide one or more of the following:
•  Pre-59½ Distributions - these are payments made at the request of the Owner that are intended to comply with Code section 72(q)(2)(D) or section 72(t)(2)(A)(iv); or
•  Nonqualified Death Benefit Stretch Distributions – these are payments made to the Beneficiary that are intended to comply with and may not deviate from Code section 72(s)(2); or
•  Required Minimum Distributions and Qualified Death Benefit Stretch Distributions – these are payments we calculate to comply with Code section 401(a)(9), section 403(b)(10), section 408(a)(6), section 408(b)(3) or section 408A(c)(5). For further information on such distributions, please see “VII. Federal Tax Matters - Required Minimum Distributions.”
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. In certain instances, withdrawals under the Life Expectancy Distribution Program may reduce future guaranteed minimum withdrawal values.
If you purchased an Income Plus For Life® Series Rider or a Principal Plus for Life Series Rider before the Lifetime Income Date, and take a withdrawal before the Lifetime Income Date, we may reduce future amounts guaranteed under the Rider. If you take a withdrawal under our Life Expectancy Distribution Program on or after the Lifetime Income Date, however, we do not reduce annual withdrawal amounts under your Rider. Please refer to the “Features” section of this Appendix for more details regarding the effect that withdrawals made after the Lifetime Income Date have on the Rider’s guarantees.
The Life Expectancy Distribution Program ends when certain amounts described in the Rider are depleted to zero, or when the Contract Value is reduced to zero. We may make further distributions as part of the Settlement Phase for the Rider you purchase.
If you are interested in the Life Expectancy Distribution Program, you may obtain further information concerning the program and its restrictions from your financial representative or our Annuities Service Center. There is no charge for participation in this program. To take withdrawals under the Life Expectancy Distribution Program, you must participate in the Income Plan (see “Special Withdrawal Services – The Income Plan” in “V. Description of the Contract”) or the Income Made Easy Program (see the preceding section).
Under our Life Expectancy Distribution Program, each withdrawal will be in an amount that we determine to be your Contract’s share of all life expectancy distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Department regulations.
We base our Life Expectancy Distribution calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59½ Distributions, Required Minimum Distributions, Nonqualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. Please discuss these matters with a qualified tax professional.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a GMWB Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. The settlement amount we pay to you, and the frequency of payment available to you, will depend upon the Rider you select. Please refer to the “Features” section of each Rider for more information.
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During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a GMWB Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
Additional Annuity Options
In addition to the Annuity Options we provide under the Contract, we provide Annuity Options for Contracts issued with a GMWB Rider (“GMWB Alternate Annuity Options”). These GMWB Alternate Annuity Options are only available for Annuity Commencement Dates no earlier than the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary. These GMWB Alternate Annuity Options are designed so that you will receive annuity payments that are no less than a guaranteed minimum annual withdrawal amount at the time of annuitization, but you could receive larger payments, depending on your investment experience prior to annuitization. The Annuity Options available to you are described in detail in “V. Description of the Contract – Pay-out Period Provisions.”
Comparison between Guaranteed Minimum Withdrawal Benefits and Annuity Payments. If you choose to take withdrawals under one of our GMWB Riders, it is not the same as receiving annuity payments upon annuitization (as described in “V. Description of the Contract – Pay-out Period Provisions”).
When you take withdrawals:
•  you have the flexibility to start and stop withdrawals;
•  you have the flexibility to choose an amount of your withdrawal that is less than or equal to your Lifetime Income Amount (without reducing your future available Lifetime Income Amount);
•  you have the ability to surrender your Contract for the cash surrender value (Contract Value minus any applicable charges and premium taxes), if any;
•  you may receive less favorable tax treatment of your withdrawals than annuity payments would provide. See “VII. Federal Tax Matters” for information on tax considerations related to optional benefit Riders; and
•  you reduce the Contract Value available for annuitization.
When you annuitize:
•  you receive annuity payments that are fixed in amount (or in the number of units paid if you choose Variable Annuity payments);
•  your annuity payments do not vary in timing once they commence (for as long as we are due to pay them to you);
•  you no longer have access to the Contract Value; and
•  your Annuity Payments may receive more favorable tax treatment than guaranteed minimum withdrawal benefits. See “VII. Federal Tax Matters” for information on tax considerations related to optional benefit Riders.
Special Considerations on Annuitization. The Contract, with or without a GMWB Rider, does not permit you to make a partial annuitization. You must apply your entire Contract Value to an Annuity Payment Option.
Tax Considerations
Withdrawals may be taxable and may be subject to a 10% penalty tax if made prior to age 59½. See “VII. Federal Tax Matters” for information on tax considerations related to optional benefit Riders.
No Loans under 403(b) Plans. The loan privilege described in the Prospectus for Contracts issued in connection with certain Section 403(b) Plans is NOT available if you elected any of our GMWB Riders.
Features of Income Plus For Life® 12.08 Series Riders
Covered Person(s)
The Income Plus For Life® 12.08 Series provides a lifetime income guarantee based on a single life (Income Plus For Life 12.08) or on the lifetime durations of two Covered Persons (Income Plus For Life –Joint Life® 12.08).
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IPFL 12.08 Series Rider Benefits
Lifetime Income Amount. The Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® 12.08) the Covered Person remains alive and an Owner (or an Annuitant, subject to our underwriting rules) under the Contract; or
•  (for Income Plus For Life – Joint Life® 12.08) either Covered Person remains alive and an Owner, Beneficiary or Annuitant under the Contract.
The Rider terminates upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5% for Income Plus For Life® 12.08 and 4.75% (4.50% in New York) for Income Plus For Life – Joint Life® 12.08); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE (Income Plus For Life® 12.08): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® 12.08): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000). In New York, if the Benefit Rate is 4.50%, the Lifetime Income Amount is $4,500 (4.50% × $100,000).
The maximum Lifetime Income Amount for an Income Plus For Life® 12.08 Rider is $250,000. The maximum Lifetime Income Amount for an Income Plus For Life – Joint Life® 12.08 Rider is $237,500 ($225,000 in New York). We calculate a lower Lifetime Income Amount under the Income Plus For Life – Joint Life® 12.08 Rider because we provide our guarantee over the lifetimes of two Covered Persons under that Rider.
We reduce the Lifetime Income Amount if you take Excess Withdrawals. Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits, and Step-Ups that we may apply to your Rider’s Benefit Base and/or Benefit Rate increases due to deferral of withdrawals after the Lifetime Income Date. Please see “Increases in Guaranteed Amounts” below for more information.
We reduce the Lifetime Income Amount if you take Excess Withdrawals. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” below for more information.
Lifetime Income Date. The Lifetime Income Amount guarantee starts on a Lifetime Income Date. This will be the date you purchased the Rider if:
•  (for Income Plus For Life® 12.08) you were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date you turn age 58½ (age 61 in NY).
•  (for Income Plus For Life – Joint Life® 12.08) both you and your Spouse were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date the younger Spouse would turn age 58½ (age 61 in NY). (The Lifetime Income Date does not change if the younger Spouse does not survive to this date and the older Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and you took a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” below for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under your Rider, but you may continue to be eligible for Credits and increases in the Benefit Rate, if any, if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
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Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase the Rider after the first Contract Year, we determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
•  Income Plus For Life® 12.08 – 5%; and
•  Income Plus For Life – Joint Life® 12.08 – 4.75% (4.50% in New York).
Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life® 12.08 Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® 12.08 Rider. We will use the Benefit Rate applicable to the age of the Covered Person (youngest Covered Person under IPFL – Joint Life 12.08) on the first withdrawal after the Lifetime Income Date to calculate the initial Lifetime Income Amount.
EXAMPLE: Assume that you purchased a Contract with the Income Plus For Life® 12.08 Rider when your age was 57 years and 7 months. Your Lifetime Income Date is the first Contract Anniversary since that is the Contract Anniversary before you turn age 59½. If you are age 61 or older at the time you take your first withdrawal after the Lifetime Income Date, we set your Benefit Rate equal to 4%. If you wait until you turn age 65 to take the first withdrawal after the Lifetime Income Date, we set your Benefit Rate equal to 5%.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® 12.08 Series Rider (see “Restrictions on Additional Purchase Payments,” above).
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept, subject to the maximum Benefit Base limit of $5 million.
On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, subject to the maximum Benefit Base limit of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base;
•  the date of a reduction in the Benefit Base; or
•  the effective date of a Step-Up.
EXAMPLE: Assume you took a withdrawal of $5,000 after the Lifetime Income Date, your current Benefit Base is $100,000, and you make an Additional Purchase Payment of $15,000. Your Benefit Base will increase by $10,000, the excess of the Additional Purchase Payment over the prior withdrawal ($15,000 - $5,000). Your new Benefit Base will equal $110,000. Assume that the following year you take an excess withdrawal of $10,000 that reduces your Benefit Base to $105,000. If you then make an Additional Purchase Payment of $10,000, the entire $10,000 will be added to your current Benefit Base, since the Benefit Base was reduced by the previous withdrawal. The new Benefit Base will be $115,000 ($105,000 + $10,000).
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Credits. The Income Plus For Life® 12.08 Series Riders provide the following Credit features:
•  Annual Credit Rate
•  For Contracts issued outside of New York, each time you qualify, we will increase the Benefit Base by a Lifetime Income Credit equal to:
•  7% of total Purchase Payments to your Contract if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up or reduction, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  For Contracts issued in New York with Income Plus For Life® 12.08, the Credit will be equal to:
•  6% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  6% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  During the Lifetime Income Credit Period, if you take no withdrawals in a Contract Year that begins on or after you turn age 61, the Annual Credit Rate on the following Contract Anniversary will be 7%.
•  For Contracts issued in New York with Income Plus For Life – Joint Life® 12.08, there is no Credit payable for Contract Years up to and including the Contract Year when the younger of you or your Spouse turns age 61. If you take no withdrawals in a Contract Year that begins on or after the date that the younger of you or your Spouse turns age 61, the Credit on the following Contract Anniversary will equal:
•  7% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  Credit Period (for Annual Credits) for Income Plus For Life® 12.08 and Income Plus For Life – Joint Life® 12.08 (except in New York) – The initial Credit Period coincides with the first 10 Contract Years while the Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Credit Period (for Annual Credits) for Income Plus For Life – Joint Life® 12.08 (in New York) – The initial Credit Period coincides with the first 10 Contract Years, starting on the Contract Anniversary after the youngest Covered Person turns age 61, while the Income Plus For Life – Joint Life® 12.08 Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Ten Year Credit Rate – See “Ten Year Credit” below for a description of the rate we use to calculate a Ten Year Credit.
Ten Year Credit Period – The Credit Period for the Ten Year Credit ends on a “Target Date” that coincides with the 10th Contract Anniversary after the effective date of the Income Plus For Life® 12.08 Rider
Annual Credits. (We may refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits if you take no withdrawals during the previous Contract Year. The Credit is equal to the applicable Credit Rate multiplied by the total Purchase Payments that have been applied to the Benefit Base. If the Benefit Base has been increased by a Step-Up or decreased as a result of an Excess Withdrawal, the Credit will equal the applicable Credit Rate multiplied by the sum of (a) the Benefit Base immediately following the most recent Step-Up or decrease and (b) the total Additional Purchase Payments applied to the Benefit Base since that Step-Up or decrease.
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Each time you qualify, we will increase the Benefit Base by an annual Credit equal to:
•  the sum of total Purchase Payments to your Contract multiplied by the Annual Credit Rate if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  the Benefit Base immediately after the latest Step-Up or reduction multiplied by the Annual Credit Rate, and increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. We will not decrease the Annual Credit as a result of a Step-Up and will not increase the Annual Credit as a result of a reduction in the Benefit Base.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 12.08 Rider when you, the Covered Person, are 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we will apply an Annual Credit to the Benefit Base and increase it to $107,000 ($100,000 + 7% × $100,000). The Lifetime Income Amount will increase to $5,350 (5% × $107,000).
•  At the end of the second Contract Year, we will apply an Annual Credit to the Benefit Base and increase it again to $114,000 ($107,000 + 7% × $100,000). The Lifetime Income Amount will increase to $5,700 (5% × $114,000).
Now assume you take an Excess Withdrawal during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawals and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (7% × ($100,000 + $5,000) = $7,350). The Benefit Base increases to $112,350 ($100,000 + $5,000 + $7,350) and the Lifetime Income Amount increases to $5,618 (5% × $112,350).
Ten Year Credit (not available with NY Income Plus For Life® 12.08). (We may refer to the Ten Year Credit as a “Target Amount adjustment” in your Rider and in our communications.) The Ten Year Credit provides the equivalent of the first 10 Annual Credits, assuming you receive no Step-Ups, take no withdrawals of Contract Value and make no Additional Purchase Payments for 10 Contract Years following purchase of an Income Plus For Life® 12.08 Rider. (In that case, the Ten Year Credit does not provide amounts in addition to these cumulative Annual Credits.)
If you take a withdrawal prior to the Target Date, we reduce the Target Amount on a pro rata basis, and we do not apply an Annual Credit for that year. If you continue to take withdrawals prior to the Target Date, we may reduce any remaining Target Amount to zero. If you anticipate the need for liquidity during the first 10 Contract Years, you should only purchase an Income Plus For Life® 12.08 Rider based on the value of its other features.
At the end of the Ten Year Credit Period, we calculate and, to the extent necessary, apply a Credit so that the Benefit Base equals the greater of:
•  the Benefit Base immediately preceding the Target Date, as increased by any Annual Credit or Step-Up for the Contract Year ending on the Target Date; or
•  the Target Amount.
The Target Amount is 170% of all “Adjusted Purchase Payments” made in the first Contract Year after you purchased the Rider plus 100% of all subsequent “Adjusted Purchase Payments” you make (subject to our Purchase Payment limits) up to the Target Date.
“Adjusted Purchase Payments” for these purposes means the total amount of Purchase Payments you make, subject to our Purchase Payment limits, reduced by any withdrawals you may have made. Each time you take a withdrawal, we deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the total amount of Purchase Payments you have made, up to and including the date of the withdrawal. We do this by reducing your Adjusted Purchase Payments in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal. We reduce the Target Amount if you take any withdrawals under your Contract from the effective date of the Income Plus For Life® 12.08 Rider until the applicable Target Date. We increase the Target Amount to reflect Additional Purchase Payments during that period.
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We apply Annual Credits on your Contract Anniversaries if you have taken no withdrawals during the preceding Contract Year. For additional details on how we calculate the Annual Credit, please see the Example above.
The Ten Year Credit provides the equivalent of the first 10 Annual Credits, assuming you receive no Step-Ups, take no withdrawals of Contract Value and make no Additional Purchase Payments during the Ten Year Credit Period.
We do not apply any Annual Credit or Ten Year Credit to the extent it increases the Benefit Base to an amount in excess of $5 million.
Step-Ups. The Income Plus For Life® 12.08 Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
How Step-Ups Work. If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Credit) on that date, we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also increase the Lifetime Income Amount (after the Lifetime Income Date) and the dollar amount of the Rider fee (see “Rider Fees” earlier in this Appendix). The new Lifetime Income Amount will equal 5% of the Benefit Base value after the Step-Up (4.75% for Income Plus For Life – Joint Life® 12.08 Riders outside New York; 4.5% in New York), and the Rider fee will be based on the increased Benefit Base. We also reserve the right to increase the rate of the Income Plus For Life® 12.08 Rider fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up. If you decline the Step-Up, the fee rate will not be increased.
Impact of Step-Ups on Credit Period. Each time a Step-Up occurs, we extend the Credit Period for Annual Credits to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
Declination of Step-Ups. If you decline an automatic Step-Up, you have the option to elect to step up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 12.08 Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and that the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $121,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $8,750 (7% × $125,000).
Step-Ups may occur only while the Income Plus For Life® 12.08 Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® 12.08 Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
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Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Death Benefit During Accumulation Period” in “V. Description of the Contract”). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you select. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
For the Income Plus For Life® 12.08 Series Riders, an Excess Withdrawal is:
•  a withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date, or
•  a withdrawal (including applicable withdrawal charges) you take on and after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal.
After the Lifetime Income Date, we do not consider withdrawals under our Life Expectancy Distribution Program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we generally reduce the Benefit Base on a pro rata basis. This means that we reduce the Benefit Base in the same proportion that your Contract Value is reduced by the Withdrawal Amount. We use a different method if you take a withdrawal under our Life Expectancy Distribution Program.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® 12.08 Series Rider that names you as the Covered Person when you are 45. (Since you are under age 58½, or 61 in New York, at time of purchase, the Lifetime Income Date will not coincide with the Rider’s effective date.) Now assume that in the eighth Contract Year, when you are 53, the Contract Value is $80,000, the Benefit Base is $90,000, no withdrawal charges apply under your Contract and you withdraw $5,000 of Contract Value.
In this case, you reduce your Contract Value by 6.25% (i.e., $5,000/$80,000) and we reduce your Benefit Base by the same percentage ($90,000 × 0.0625, or $5,625). The Benefit Base after the Excess Withdrawal is $90,000 – $5,625, or $84,375.
Note: withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”).
Withdrawals after the Lifetime Income Date. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal(s) for that Contract Year). If so, we reduce the Benefit Base on a pro rata basis. We do this by reducing your Benefit Base in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal that resulted in an Excess Withdrawal.
Each time we reduce the Benefit Base, we also reduce the Lifetime Income Amount to equal 5% of the new Benefit Base. We also reduce the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
EXAMPLE (Income Plus For Life® 12.08): Assume that you purchase a Contract with an Income Plus For Life® 12.08 Rider. Also assume that when you are age 62, the Contract Value is $100,000, the Benefit Base is $110,000, and the Lifetime
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Income Amount is $5,500. If you withdraw $10,000, we first reduce your Contract Value by 10% ($10,000/$100,000) and since this withdrawal is an Excess Withdrawal we reduce your Benefit Base by the same percentage ($110,000 × .10 = $11,000). The Benefit Base after the Excess Withdrawal is $99,000 ($110,000 – $11,000) and the Lifetime Income Amount is $4,950 (.05 × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® 12.08): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® 12.08 Rider. Also assume that when the younger Covered Person is age 62, the Contract Value is $100,000, the Benefit Base is $110,000, the Lifetime Income Amount is $5,225 and the Benefit Rate is 4.75%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,703 (4.75% × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® 12.08 in New York): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® 12.08 Rider in New York. Also assume that when the younger Covered Person is age 62, the Contract Value is $100,000, the Benefit Base is $110,000, the Lifetime Income Amount is $4,950 and the Benefit Rate is 4.50%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,455 (4.50% × $99,000).
We do not reduce the Benefit Base and/or the Lifetime Income Amount:
•  if the withdrawals are taken under our Life Expectancy Distribution Program (as opposed to those withdrawals taken prior to the Lifetime Income Date, which do reduce the Benefit Base), or
•  if your total Withdrawal Amounts during a Contract Year are less than or equal to the Lifetime Income Amount.
The Income Plus For Life® 12.08 Series Riders enter a Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Rider, and the Rider will not enter the Settlement Phase, if Contract Value declines to zero during the Contract Year of the Excess Withdrawal (see “Settlement Phase” in this section, below). The Income Plus For Life® 12.08 benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® 12.08 Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Income Plus For Life® 12.08 Series Riders (see the “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution Program reduces your Contract Value. We reduce the Benefit Base by the amount of the withdrawal if you take a withdrawal under our Life Expectancy Distribution Program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution Program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution Program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® 12.08 Series Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
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The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year; and
•  there were no Excess Withdrawals during that Contract Year; and
•  the Benefit Base is still greater than zero at the time.
There is no Settlement Phase under an Income Plus For Life® 12.08 Series Rider if:
•  you take any withdrawal before the earliest available Lifetime Income Date and the Contract Value declines to zero during the Contract Year of the withdrawal; or
•  you take a withdrawal on or after the earliest available Lifetime Income Date that is an Excess Withdrawal and the Contract Value declines to zero during the Contract Year of the withdrawal.
The settlement amount we pay to you under the Rider varies:
•  If you enter the Settlement Phase after the Lifetime Income Date, at the start of the Settlement Phase we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living.
•  If you enter the Settlement Phase before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 5% of the Benefit Base at the Lifetime Income Date).
•  In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
Impact of Death Benefits
Income Plus For Life® 12.08. If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® 12.08:
1. Not the Covered Person - may continue if the Beneficiary elects to continue the Contract within the time we permit under our administrative rules. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and assess the Rider fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credit amounts and Step-Ups, and a Target Amount adjustment, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-Ups if we increase the rate of the Income Plus For Life® 12.08 fee at that time.
2. The Covered Person - ends without any further benefit.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® 12.08 Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is an individual, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Income Plus For Life – Joint Life® 12.08. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® 12.08 Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider
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may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary; or (c) the surviving Covered Person is a Spouse of the deceased Owner and a tax-qualified retirement plan is the non- Spousal Beneficiary. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups).
If the Rider continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum under our current administrative procedures, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Income Plus For Life – Joint Life® 12.08 Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus For Life – Joint Life® 12.08 Rider fee (see “Rider Fees – Fee for Income Plus For Life® 12.08 Series Riders” earlier in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a withdrawal for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus For Life – Joint Life® 12.08 Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® 12.08 Rider is in effect we will reduce the Lifetime Income Amount to zero and we make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider. If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Death Benefits during the Settlement Phase. If death occurs during an Income Plus For Life – Joint Life® 12.08 Rider’s Settlement Phase, the only death benefit we provide is the remaining settlement payments that may become due under that Rider. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. Settlement payments will equal the Lifetime Income Amount. We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Termination of Rider
You may not terminate an Income Plus For Life® 12.08 Series Rider once it is in effect. However, an Income Plus For Life® 12.08 Series Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
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•  the date the Contract Value and the Benefit Base both equal zero;
•  (for Income Plus For Life® 12.08) the death or removal of the Covered Person;
•  (for Income Plus For Life – Joint Life® 12.08) the death or removal of the last Covered Person remaining under the Rider;
•  the date a new GMWB Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
Features of Income Plus For Life® (Quarterly Step-Up Review) Series Riders
Income Plus For Life® (Quarterly Step-Up Review) Series Definitions
The following definitions apply only to the Income Plus For Life® (Quarterly Step-Up Review) Series Riders.
Age 59 Contract Anniversary means the Contract Anniversary on, or next following, the date:
•  the Covered Person turns age 59 under an Income Plus For Life® (Quarterly Step-Up Review) Rider; or
•  the younger Covered Person turns age 59 under an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider.
Adjusted Step-Up Value: We establish tentative Step-Up values on each “Interim Review Date” (defined below) during a Contract Year, adjusted to reflect any Excess Withdrawals and Additional Purchase Payments made from the Interim Review Date to the end of that Contract Year. Then, at the end of the Contract Year, we compare each of the tentative Step-Up values (as adjusted above) for that Contract Year and select the highest Adjusted Step-Up Value. If the highest Adjusted Step-Up Value is higher than your Benefit Base (including any Credits, if applicable) on the Contract Anniversary, we will increase the Benefit Base to equal the highest Adjusted Step-Up Value.
Interim Review Date: Each of the quarterly dates on which we compare the Rider’s Benefit Base to the Contract Value during a Contract Year, up to and including the Age 95 Contract Anniversary while the Rider is in effect.
Form of Guaranteed Amounts
The Income Plus For Life® (Quarterly Step-Up Review) Series Riders provide a lifetime income guarantee based on a single life (Income Plus For Life® (Quarterly Step-Up Review)) or on the lifetime duration of two Covered Persons (Income Plus For Life –Joint Life® (Quarterly Step-Up Review)).
IPFL (Quarterly Step-Up Review) Benefits
Lifetime Income Amount. The Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® (Quarterly Step-Up Review)): the Covered Person remains alive and is designated as an Owner (or an Annuitant, subject to our underwriting rules) under the Contract: or
•  (for Income Plus For Life – Joint Life® (Quarterly Step-Up Review)): either Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant under the Contract.
The Rider terminates upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5% for Income Plus For Life® (Quarterly Step-Up Review), 4.75% for Income Plus For Life – Joint Life® (Quarterly Step-Up Review) and 4.50% for New York Income Plus For Life – Joint Life (Quarterly Step-Up Review)); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
The maximum Lifetime Income Amount for an Income Plus For Life® (Quarterly Step-Up Review) Rider is $250,000. The maximum Lifetime Income Amount for an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider is $237,500
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($225,000 in New York). We calculate a lower Lifetime Income Amount under the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider because we provide our guarantee over the lifetime of two Covered Persons under that Rider.
EXAMPLE (Income Plus For Life® (Quarterly Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® (Quarterly Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000). In New York, if the Benefit Rate is 4.50%, the Lifetime Income Amount is $4,500 (4.50% × $100,000).
We reduce the Lifetime Income Amount if you take Excess Withdrawals. Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits and Step-Ups that we may apply to your Rider’s Benefit Base and/or Benefit Rate increases due to deferral of withdrawals after the Lifetime Income Date. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Lifetime Income Date. The Lifetime Income Amount guarantee starts on a Lifetime Income Date. This is the date you purchased the Rider if:
•  (for Income Plus For Life® (Quarterly Step-Up Review)) you were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date you turn age 58½ (age 61 in New York).
•  (for Income Plus For Life – Joint Life® (Quarterly Step-Up Review)) both you and your Spouse were age 58½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date the younger Spouse would turn age 58½ (age 61 in New York). (The Lifetime Income Date does not change if the younger Spouse does not survive to this date and the older Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under the Rider, but you may continue to be eligible for Credits and Step-Ups if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase the Rider after the first Contract Year, we may have determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
•  Income Plus For Life® (Quarterly Step-Up Review) – 5%
•  Income Plus For Life – Joint Life® (Quarterly Step-Up Review) – 4.75% (4.50% in New York).
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Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® (Quarterly Step-Up Review) Rider.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® (Quarterly Step-Up Review) Series Rider.
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept (see “Restrictions on Additional Purchase Payments,” above), subject to the maximum Benefit Base limit of $5 million.
On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, up to the maximum Benefit Base of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base,
•  the date of a reduction in the Benefit Base, or
•  the effective date of a Step-Up.
EXAMPLE: Assume you took a withdrawal of $5,000 after the Lifetime Income Date, your current Benefit Base is $100,000, and you make an Additional Purchase Payment of $15,000. Your Benefit Base will increase by $10,000, the excess of the Additional Purchase Payment over the prior withdrawal ($15,000 - $5,000). Your new Benefit Base will equal $110,000. Assume that the following year you take an excess withdrawal of $10,000 that reduces your Benefit Base to $105,000. If you then make an Additional Purchase Payment of $10,000, the entire $10,000 will be added to your current Benefit Base, since the Benefit Base was reduced by the previous withdrawal. The new Benefit Base will be $115,000 ($105,000 + $10,000).
Credits. The Income Plus For Life® (Quarterly Step-Up Review) Rider provides the following Credit features:
•  Annual Credit Rate –
•  For Contracts issued outside of New York, each time you qualify, we will increase the Benefit Base by a Lifetime Income Credit equal to:
•  7% of total Purchase Payments to your Contract if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up or reduction, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  For Contracts issued in New York with Income Plus For Life® (Quarterly Step-Up Review), the Credit will be equal to:
•  6% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  6% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  During the Lifetime Income Credit Period, if you take no withdrawals in a Contract Year that begins on or after you turn age 61, the Credit rate on the following Contract Anniversary will be 7%.
•  For Contracts issued in New York with Income Plus For Life – Joint Life® (Quarterly Step-Up Review), there is no Credit payable for Contract Years up to and including the Contract Year when the younger of you or your Spouse
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  turns age 61. If you take no withdrawals in a Contract Year that begins on or after the younger of you or your Spouse turns age 61, the Credit on the following Contract Anniversary will equal:
•  7% of total Purchase Payments to your Contract, if we did not previously step up or reduce the Benefit Base and/or the Lifetime Income Amount; otherwise
•  7% of the Benefit Base immediately after the latest Step-Up (if greater than the amount used to calculate the previous Credit) or reduction of the Benefit Base (if less than the amount used to calculate the previous Credit), increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. This means that a Credit will not decrease after the latest Step-Up and will not increase after the latest reduction.
•  Credit Period (for Annual Credits) for Income Plus For Life® (Quarterly Step-Up Review) and Income Plus For Life – Joint Life® (Quarterly Step-Up Review) (except in New York) – The initial Credit Period coincides with the first 10 Contract Years while the Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Credit Period (for Annual Credits) for Income Plus For Life – Joint Life® (Quarterly Step-Up Review) (in New York) – The initial Credit Period coincides with the first 10 Contract Years, starting on the Contract Anniversary after the youngest Covered Person turns age 61, while the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Ten Year Credit Rate – See “Ten Year Credit” below for a description of the rate we use to calculate a Ten Year Credit. Ten Year Credit Period – The Credit Period for the Ten Year Credit ends on a “Target Date” that coincides with the 10th Contract Anniversary after the effective date of the Income Plus For Life® (Quarterly Step-Up Review) Rider
Annual Credits. (We refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits you take no withdrawals during the previous Contract Year.
Each time you qualify, we increase the Benefit Base by an Annual Credit equal to:
•  the sum of total Purchase Payments to your Contract multiplied by the Annual Credit Rate if we did not previously step up the Benefit Base and/or the Lifetime Income Amount; otherwise
•  the Benefit Base immediately after the latest Step-Up or reduction multiplied by the Annual Credit Rate, and increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-Up or reduction. We do not decrease the Annual Credit as a result of a Step-Up and do not increase the Annual Credit as a result of a reduction in the Benefit Base.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $107,000 ($100,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,350 (5% × $107,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $114,000 ($107,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,700 (5% × $114,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduce the Benefit Base to $100,000, and you take no withdrawal and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you take a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (7% × ($100,000 + $5,000) = $7,350). The Benefit Base increases to $112,350 ($100,000 + $5,000 + $7,350) and the Lifetime Income Amount increases to $5,618 (5% × $112,350).
    
We apply Annual Credits on your Contract Anniversaries if you have taken no withdrawals during the preceding Contract Year. For additional details on how we calculate the Annual Credit, please see the Example above.
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We do not apply any Annual Credit to the extent it would increase the Benefit Base to an amount in excess of $5 million.
Ten Year Credit. (not available with NY Income Plus For Life – Joint Life® (Quarterly Step-Up Review)) (We may refer to the Ten Year Credit as a “Target Amount adjustment” in your Rider and in our communications.) At the end of the Ten Year Credit Period, we make a calculation and, to the extent necessary, apply a Credit so that the Benefit Base will equal the greater of:
•  the current Benefit Base, as increased by any Annual Credit or Step-Up for the Contract Year ending on the Target Date; or
•  the “Target Amount”(see below).
The “Ten Year Credit Period” will exceed ten Contract Years if you purchased this Rider before a Covered Person turned age 59.
The Target Amount is the greater of:
•  200% of all “Adjusted Purchase Payments” (see below) made in the first Contract Year after you purchased the Rider plus 100% of all subsequent Adjusted Purchase Payments you make until the Target Date (subject to our Purchase Payment limits); or
•  the highest Target Value.
In no event, however, will we set a Target Amount in excess of $5 million.
Adjusted Purchase Payments, for these purposes, means the total amount of Purchase Payments you make, subject to our Purchase Payment limits, reduced by any withdrawals you may have made. Each time you take a withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the total amount of Purchase Payments you have made up to, and including, the date of the withdrawal. We do this by reducing your Adjusted Purchase Payments in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal.
We calculate a Target Value for each Contract Year up to the Age 59 Contract Anniversary. Target Value, for these purposes, means 200% of your Contract Value as of any Interim Review Date (up to the Age 59 Contract Anniversary), plus 100% of Purchase Payments you may have made since that Contract Anniversary, minus a pro rata reduction for any Withdrawal Amounts you may have taken since that Contract Anniversary. We do not calculate a Target Value for any Contract Year following the Age 59 Contract Anniversary.
We reduce the Target Amount if you take any withdrawals under your Contract from the effective date of the Income Plus For Life® (Quarterly Step-Up Review) Rider until the end of the Ten Year Credit Period. We increase the Target Amount to reflect Additional Purchase Payments during that period and, in some cases, we also increase the Target Amount to reflect favorable investment performance.
EXAMPLE: Assume a Contract (single life or joint life) is purchased at age 55 with an initial Purchase Payment of $100,000, there is an Additional Purchase Payment of $25,000 in the second Contract Year, and the highest Contract Value on any Interim Review Date prior to the Age 59 Contract Anniversary is $140,000 in the 4th Contract Year. The Target Amount is the greater of:
•  (200% × $100,000) + (100% × $25,000) = $225,000; or
•  200% × $140,000 = $280,000.
    
The Target Amount adjustment can provide higher lifetime income than you would otherwise achieve under this Rider. The Target Amount adjustment provides its greatest benefit if you wait until the Target Date to take your first withdrawal. If you take a withdrawal prior to the Target Date, we will reduce the Target Amount and it will not be of as much value to you. If you continue to take withdrawals prior to the Target Date, we may reduce any remaining Target Amount to zero.
Step-Ups. The Income Plus For Life® (Quarterly Step-Up Review) Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
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How Step-Ups Work. We schedule Step-Up Dates starting on the first Contract Anniversary following your purchase of the Rider and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary.
On each Step-Up Date, we compare the Benefit Base (including any applicable Annual Credit) to:
•  the Contract Value on that date; and
•  the Adjusted Step-Up Value for each Interim Review Date during the immediately preceding Contract Year.
If the Contract Value or any such Adjusted Step-Up Value on any Step-Up Date is greater than the Benefit Base (including any Annual Credit) on that date, we will automatically step up the Benefit Base to equal the greater of:
•  the Contract Value on the Contract Anniversary; or
•  the highest Adjusted Step-Up Value for any Interim Review Date, during the immediately preceding Contract Year.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit rate is 7%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and that the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $121,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% ×$125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $8,750 (7% × $125,000).
In no event, however, would we increase the Benefit Base to exceed $5 million. If we increase the Benefit Base on any Step-Up Date (after the Lifetime Income Date), we also increase the Lifetime Income Amount. The new Lifetime Income Amount equals the Benefit Rate multiplied by the new Benefit Base value after the Step-Up.
Interim Review Dates and Adjusted Step-Up Values. Under each of our Income Plus For Life® (Quarterly Step-Up Review) Series Riders, we compare the Rider’s Benefit Base to the Contract Value on a quarterly basis during each Contract Year, up to and including the Age 95 Contract Anniversary while the Rider is in effect. We call each of these dates an “Interim Review Date.”
If the Benefit Base is less than the Contract Value on any Interim Review Date, we establish a tentative Step-Up value for that date. We reduce each tentative Step-Up value on a pro rata basis to reflect any Excess Withdrawals you may have taken from the Interim Review Date to the end of that Contract Year. We increase each tentative Step-Up value by any Additional Purchase Payments (and reduce by any withdrawals) you may have made from the Interim Review Date to the end of that Contract Year. Then, at the end of the Contract Year, we compare each of the tentative Step-Up values, as adjusted to reflect Excess Withdrawals and Additional Purchase Payments (“Adjusted Step-Up Value”), for that Contract Year and select the highest Adjusted Step-Up Value. If the highest Adjusted Step-Up Value is higher than your Benefit Base (including any Credits, if applicable) on the Contract Anniversary, we will increase the Benefit Base to equal the highest Adjusted Step-Up Value.
EXAMPLE: Assume your Benefit Base at the beginning of Contract Year 2 is $100,000 and you make no Additional Purchase Payments during that year. Also assume the highest Adjusted Step-Up Value on an Interim Review Date is at the end of 6 months, when your Contract Value is $110,000. Finally, assume that you take no withdrawals during Contract Year 2 and your Contract Value at the end of the year is $105,000.
Under these assumptions for a single-life Income Plus For Life® (Quarterly Step-Up Review) Rider, we increase your Benefit Base, but not your Contract Value, to $110,000 at the end of Contract Year 2. We also increase your annual Lifetime Income Amount from $5,000 (5% of $100,000) to $5,500 (5% of $110,000). Your Contract Value equals $105,000 at the end of Contract Year 2.
Under these assumptions for an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider, we increase your Benefit Base, but not your Contract Value, to $110,000 at the end of Contract Year 2. For non-New York Contracts, we also increase your annual Lifetime Income Amount from $4,750 (4.75% of $100,000) to $5,225 (4.75% of $110,000). In New York, we increase your annual Lifetime Income Amount from $4,500 (4.5% of $100,000) to $4,950 (4.5% of $110,000). In each case, your Contract Value equals $105,000 at the end of Contract Year 2.
Impact of Step-Ups on Rider Fees. Each time we increase the Benefit Base, we also increase the dollar amount of the Rider fee. The new Rider fee is based on the new Benefit Base. We also reserve the right to increase the rates of the Income Plus For Life® (Quarterly Step-Up Review) Rider fee up to a maximum rate of 1.20%. If we decide to increase the rate at the
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effective date of a Step- Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Rider Fees” earlier in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Impact of Step-Ups on Credit Period. Each time a Step-Up occurs, we extend the annual Credit Period to the lesser of 10 years from the effective date of the Step-Up Date or the Age 95 Contract Anniversary.
Declination of Step-Ups. If you decline an automatic Step-Up, you have the option to elect to Step-Up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
Step-Ups may occur only while the Income Plus For Life® (Quarterly Step-Up Review) Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® (Quarterly Step-Up Review) Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values. We reduce your Contract Value and your death benefit each time you take a withdrawal.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you selected. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
For the Income Plus For Life® (Quarterly Step-Up Review) Series Riders, an Excess Withdrawal is:
•  a withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date, or
•  a withdrawal (including applicable withdrawal charges) you take on and after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal.
After the Lifetime Income Date, we do not consider withdrawals under our Life Expectancy Distribution Program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
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If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we generally reduce the Benefit Base on a pro rata basis. This means that we reduce the Benefit Base in the same proportion that your Contract Value is reduced by the Withdrawal Amount. We use a different method if you take a withdrawal under our Life Expectancy Distribution Program.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Rider that named you as the Covered Person when you were 45. (Since you were under age 58½ at time of purchase, the Lifetime Income Date will not coincide with the Rider’s effective date.) Now assume that in the eighth Contract Year, when you were 53, the Contract Value was $80,000, the Benefit Base was $90,000, no withdrawal charges apply under your Contract and you withdrew $5,000 of Contract Value.
In this case, you reduce your Contract Value by 6.25% (i.e., $5,000/$80,000) and we reduce your Benefit Base by the same percentage ($90,000 × 0.0625, or $5,625). The Benefit Base after the Excess Withdrawal is $90,000 – $5,625, or $84,375.
Note: withdrawals may be taxable and if made prior to age 59½ may be subject to a 10% penalty tax (see “VII. Federal Tax Matters”).
Withdrawals after the Lifetime Income Date. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal(s) for that Contract Year). If so, we reduce the Benefit Base on a pro rata basis. We do this by reducing your Benefit Base in the same proportion that your Contract Value is reduced by the entire amount of the withdrawal that resulted in an Excess Withdrawal.
Each time we reduce the Benefit Base, we also reduce the Lifetime Income Amount to equal 5% of the new Benefit Base. We also reduce the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
EXAMPLE (Income Plus For Life® (Quarterly Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life (Quarterly Step-Up Review) Rider. Also assume that when you are age 62, the Contract Value is $100,000, the Benefit Base is $110,000, and the Lifetime Income Amount is $5,500. If you withdraw $10,000, we first reduce your Contract Value by 10% ($10,000/$100,000) and since this withdrawal is an Excess Withdrawal, we reduce your Benefit Base by the same percentage ($110,000 × .10 = $11,000). The Benefit Base after the Excess Withdrawal is $99,000 ($110,000 – $11,000) and the Lifetime Income Amount is $4,950 (.05 × $99,000).
EXAMPLE (Income Plus For Life – Joint Life® (Quarterly Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider. Also assume that when the younger Covered Person is age 62, the Contract Value is $100,000 and the Benefit Base is $110,000. For non-New York Contracts, the Benefit Rate is 4.75% and the Lifetime Income Amount is $5,225. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,703 (4.75% × $99,000).
New York Contracts, the Benefit Rate is 4.50% and the Lifetime Income Amount would be $4,950. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base by 10% ($10,000/$100,000). The new Benefit Base is $99,000 ($110,000 – 10% × $110,000 = $110,000 – $11,000). The new Lifetime Income Amount is $4,455 (4.50% × $99,000).
The Income Plus For Life® (Quarterly Step-Up Review) Series Riders enter a Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Rider, and the Rider will not enter the Settlement Phase, if Contract Value declines to zero during the Contract Year of the Excess Withdrawal (see “Settlement Phase” in this section, below). The Income Plus For Life® (Quarterly Step-Up Review) benefit terminates if both the Contract Value and Benefit Base immediately after a withdrawal are equal to zero.
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Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® (Quarterly Step-Up Review) Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution program is available with the Income Plus For Life® (Quarterly Step-Up Review) Series Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution program reduces your Contract Value. We reduce the Benefit Base by the amount of the withdrawal if you take a withdrawal under our Life Expectancy Distribution program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® (Quarterly Step-Up Review) Series Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We do not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year; and
•  there were no Excess Withdrawals during that Contract Year; and
•  the Benefit Base is still greater than zero at the time.
There is no Settlement Phase under an Income Plus For Life® (Quarterly Step-Up Review) Series Rider if you take any withdrawal before the earliest available Lifetime Income Date and the Contract Value declines to zero during the Contract Year of the withdrawal.
The settlement amount we pay to you under the Rider varies:
•  If you enter the Settlement Phase after the Lifetime Income Date, at the start of the Settlement Phase we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living.
•  If you enter the Settlement Phase before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 5% of the Benefit Base at the Lifetime Income Date).
•  In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
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Impact of Death Benefits
Income Plus For Life® (Quarterly Step-Up Review). If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® (Quarterly Step-Up Review):
1. Not the Covered Person - may continue if the Beneficiary elects to continue the Contract within the time we permit under our administrative rules. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and assess the Rider fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credit amounts and Step-Ups, and a Target Amount adjustment, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-Ups if we increase the rate of the Income Plus For Life® (Quarterly Step-Up Review) fee at that time.
2. The Covered Person - ends without any further benefit.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Income Plus For Life® (Quarterly Step-Up Review) continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® (Quarterly Step-Up Review) Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is an individual, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Income Plus For Life – Joint Life® (Quarterly Step-Up Review). If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary or (c) the surviving Covered Person is a Spouse of the deceased Owner and a tax-qualified retirement plan is the non-Spousal Beneficiary. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups).
If the Rider continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum under our current administrative procedures, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider fee (see “Rider Fees – Fee for Income Plus For Life® (Quarterly Step-Up Review) Series Riders” earlier in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any
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adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider is in effect we will reduce the Lifetime Income Amount to zero and we no make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see “Covered Person” in the definitions above). If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Death Benefits during the Settlement Phase. If death occurs during an Income Plus For Life – Joint Life® (Quarterly Step-Up Review) Rider’s Settlement Phase, the only death benefit we provide is the remaining settlement payments that may become due under that Rider. If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. Settlement payments will equal the Lifetime Income Amount. We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Termination of Rider
You may not terminate an Income Plus For Life® (Quarterly Step-Up Review) Series Rider once it is in effect. However, the Income Plus For Life® (Quarterly Step-Up Review) Series Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
•  the date the Contract Value and the Benefit Base both equal zero;
•  (for Income Plus For Life® (Quarterly Step-Up Review)) the death or removal of the Covered Person;
•  (for Income Plus For Life – Joint Life® (Quarterly Step-Up Review)) the death or removal of the last Covered Person remaining under the Rider;
•  the date a new GMWB Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
Features of Income Plus For Life® (Annual Step-Up Review) Series Riders
Income Plus For Life® (Annual Step-Up Review) has previously been referred to as “Income Plus For Life®.”
Form of Guaranteed Amounts
Income Plus For Life® (Annual Step-Up Review) Series Riders provide a lifetime income guarantee based on a single life (Income Plus For Life® (Annual Step-Up Review)) or on the lifetime duration of two Covered Persons (Income Plus For Life – Joint Life® (Annual Step-Up Review)).
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IPFL (Annual Step-Up Review) Benefits
Lifetime Income Amount. The Rider provides our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as:
•  (for Income Plus For Life® (Annual Step-Up Review)) the Covered Person remains alive and is designated as an Owner, Beneficiary or Annuitant of the Contract, subject to the terms and conditions of the Rider.
•  (for Income Plus For Life – Joint Life® (Annual Step-Up Review)) at least one Covered Person remains alive and qualified as a Covered Person and is designated as an Owner, Beneficiary or Annuitant of the Contract, subject to the terms and conditions of the Rider.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5% for Income Plus For Life® (Annual Step-Up Review), 4.75% for Income Plus For Life – Joint Life (Annual Step-Up Review); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE (Income Plus For Life® (Annual Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
EXAMPLE (Income Plus For Life – Joint Life® (Annual Step-Up Review)): Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the Benefit Rate is 4.75%, the Lifetime Income Amount is $4,750 (4.75% × $100,000).
We may reduce the Lifetime Income Amount to reflect withdrawals and Resets, and we may increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits, a Target Amount adjustment and Step-Ups as provided in the Rider.
Lifetime Income Date. The Lifetime Income Date is the date you purchased the Rider if:
•  (for Income Plus For Life® (Annual Step-Up Review)) you were age 59½ or older at the time (age 61 or older for Riders issued in New York); otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date you turn age 59½ (age 61 in New York).
•  (for Income Plus For Life – Joint Life® (Annual Step-Up Review)) both you and your Spouse were age 59½ or older at the time; otherwise, the Lifetime Income Date in most cases is the Contract Anniversary on, or immediately following, the date the younger Spouse would turn age 59½. (The Lifetime Income Date does not change if the younger Spouse does not survive to this date and the older Spouse is still a Covered Person under the Rider.)
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under the Rider, but you may continue to be eligible for Credits and Step-Ups if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
We use a Benefit Base to determine the Lifetime Income Amount. The maximum Benefit Base at any time is $5 million. The initial Benefit Base is equal to your initial Purchase Payment (up to $5 million). If we allowed you to purchase the Rider after the first Contract Year, we may have determined the initial Benefit Base based on your Contract Value after the first Contract Year.
We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. During periods of declining investment performance, Excess Withdrawals could result in substantial reductions to your Benefit Base. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
We increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
Benefit Rate
We use the following Benefit Rates to determine the Lifetime Income Amount:
•  Income Plus For Life® (Annual Step-Up Review) – 5%
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•  Income Plus For Life – Joint Life® (Annual Step-Up Review) – 4.75%
Because we provide our guarantee over the lifetimes of two Covered Persons under an Income Plus For Life – Joint Life (Annual Step-Up Review) Rider, we use a lower Benefit Rate than we do under an Income Plus For Life® (Annual Step-Up Review) Rider. We will use the Benefit Rate applicable to the age of the Covered Person (youngest Covered Person under IPFL – Joint Life (Annual Step- Up Review)) on the first withdrawal after the Lifetime Income Date to calculate the initial Lifetime Income Amount.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under an Income Plus For Life® (Annual Step-Up Review) Series Rider.
Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an Additional Purchase Payment that we accept (see “Restrictions on Additional Purchase Payments,” above), subject to the maximum Benefit Base limit of $5 million.
On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an Additional Purchase Payment, up to a maximum Benefit Base of $5 million. The new Benefit Base will be the Benefit Base immediately before the Additional Purchase Payment, plus the excess, if any, of the Additional Purchase Payment (subject to our Purchase Payment limits) over any Withdrawal Amount (reduced by any subsequent Purchase Payment) since the later of:
•  the Lifetime Income Date or
•  the latest of:
•  the date of a Purchase Payment that we applied to the Benefit Base,
•  the date of a reduction in the Benefit Base, or
•  the effective date of a Step-Up.
Credits. The Income Plus For Life® (Annual Step-Up Review) Rider provides the following Credit features:
•  Annual Credit Rate:
•  7% for Riders purchased on or after January 17, 2008 and outside of New York;
•  6% for Riders purchased before January 17, 2008 or in New York.
•  Credit Period (for Annual Credits) – The initial Credit Period coincides with the first 10 Contract Years while the Rider is in effect. We will extend the Credit Period for Annual Credits each time a Step-Up occurs to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
•  Ten Year Credit Rate – See “Ten Year Credit” for a description of the rate we use to calculate a Ten Year Credit. Ten Year Credit Period – The Credit Period for the Ten Year Credit ends on a “Target Date” that coincides with the 10th Contract Anniversary after the effective date of the Income Plus For Life® (Annual Step-Up Review) Rider
Annual Credits. (We refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits if you take no withdrawals during the previous Contract Year.
EXAMPLE (Income Plus For Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life® (Annual Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit rate is 7% (i.e., your Rider was purchased on or after January 17, 2008 outside of New York). Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $107,000 ($100,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,350 (5% × $107,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $114,000 ($107,000 + 7% × $100,000). The Lifetime Income Amount increases to $5,700 (5% × $114,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawal and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
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•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (7% × ($100,000 + $5,000) = $7,350). The Benefit Base increases to $112,350 ($100,000 + $5,000 + $7,350) and the Lifetime Income Amount increases to $5,618 (5% × $112,350).
EXAMPLE (Income Plus For Life – Joint Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider when the younger Covered Person is age 61, you take no withdrawals during the first and second Contract Year and the applicable Annual Credit rate is 6% (i.e., your Rider was purchased before January 17, 2008). Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply an Annual Credit to the Benefit Base and increase it to $106,000 ($100,000 + 6% × $100,000). The Lifetime Income Amount increases to $5,035 (4.75% × $106,000).
•  At the end of the second Contract Year, we apply an Annual Credit to the Benefit Base and increase it again to $112,000 ($106,000 + 6% × $100,000). The Lifetime Income Amount increases to $5,320 (4.75% × $112,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, and you take no withdrawal and make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply an Annual Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (6% × ($100,000 + $5,000) = $6,300). The Benefit Base increases to $111,300 ($100,000 + $5,000 + $6,300) and the Lifetime Income Amount increases to $5,287 (4.75% × $111,300).
Ten Year Credit. (We may refer to the Ten Year Credit as a “Target Amount adjustment” in your Rider and in our communications.) If you take no withdrawals under your Contract from the effective date of the Income Plus For Life® (Annual Step-Up Review) Rider until the end of the Ten Year Credit Period, we make a calculation at that time and, to the extent necessary, apply a Credit so that the Benefit Base equals the greater of:
•  the current Benefit Base, as increased by any Annual Credit or Step-Up for the Contract Year ending on the Target Date; or
•  the Target Amount (see below).
The “Ten Year Credit Period” will exceed ten Contract Years if you purchased this Rider before a Covered Person turned age 59.
The Target Amount is 200% of all Purchase Payments made in the first Contract Year plus 100% of all Additional Purchase Payments you make prior to the Target Date (subject to our Purchase Payment limits). In no event, however, will we set a Target Amount in excess of $5 million.
We reduce the Target Amount to zero if you take any withdrawals under your Contract from the effective date of the Income Plus For Life® (Annual Step-Up Review) Rider until the end of the Ten Year Credit Period. We increase the Target Amount to reflect Additional Purchase Payments during that period and, in some cases, we also increase the Target Amount to reflect favorable investment performance.
The Ten Year Credit can provide higher lifetime income than you would otherwise receive under this Rider, as long as you wait until the end of the Target Date to take your first withdrawal.
Step-Ups. The Income Plus For Life® (Annual Step-Up Review) Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
How Step-Ups Work. We schedule Step-Up Dates starting on the first Contract Anniversary following your purchase of the Rider and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary.
On each Step-Up Date, we compare the Benefit Base (including any applicable Annual Credit) to the Contract Value on that date. If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Annual Credit) on that date,
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we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also increase the Lifetime Income Amount (after the Lifetime Income Date) and the Rider fee (see “Rider Fees” earlier in this Appendix). The new Lifetime Income Amount will equal 5% of the Benefit Base value after the Step-Up, and the Rider fee will be based on the increased Benefit Base. We also reserve the right to increase the rate of the Income Plus For Life® (Annual Step-Up Review) fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Fee for Income Plus For Life® (Annual Step-Up Review) Series Riders” earlier in this Appendix). If you decline the Step-Up, the fee rate will not be increased. We schedule the Step-Up Dates starting with the first Contract Anniversary and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary.
Impact of Step-Ups on Credit Period. Each time a Step-Up occurs, we will extend the Annual Credit Period to the lesser of 10 years from the Step-Up Date or the Age 95 Contract Anniversary.
Declination of Step-Ups. If you decline an automatic Step-Up, you will have the option to elect to step up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
EXAMPLE: Assume that you purchase a Contract with an Income Plus For Life® (Annual Step-Up Review) Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit rate is 7% (i.e., purchased after January 17, 2008 outside of New York). Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $121,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Annual Credit on the fourth Contract Anniversary equals $8,750 (7% × $125,000).
In no event, however, will we increase the Benefit Base to exceed $5 million. If we increase the Benefit Base on any Step-Up Date (after the Lifetime Income Date), we also increase the Lifetime Income Amount. The new Lifetime Income Amount equals the Benefit Rate multiplied by the new Benefit Base value after the Step-Up.
Step-Ups may occur only while the Income Plus For Life® (Annual Step-Up Review) Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Income Plus For Life® (Annual Step-Up Review) Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives, subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
We will reduce the death benefit on a dollar-for-dollar basis for any withdrawals you make after the Lifetime Income Date until the total amount of withdrawals during a Contract Year equals the Lifetime Income Amount. Once a withdrawal exceeds the Lifetime Income Amount, we will reduce the death benefit on a pro rata basis by the entire amount of that withdrawal.
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EXAMPLE: If you take a withdrawal of $8,000 when your Contract Value is $80,000 and your Guaranteed Minimum Death Benefit is $100,000, and your Lifetime Income Amount is $5,000, we reduce your Guaranteed Minimum Death Benefit on a pro rata basis for the amount of the Excess Withdrawal. That means we reduce the Contract Value to $72,000 and the Guaranteed Minimum Death Benefit by 10% ($8,000/$80,000), to $90,000 ($100,000 – 10% × $100,000).
We reduce your Contract Value each time you take a withdrawal. We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you selected. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
For the Income Plus For Life® (Annual Step-Up Review) Series Riders, an Excess Withdrawal is:
•  any withdrawal (including applicable withdrawal charges) you take before the Lifetime Income Date that, together with all other withdrawals during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Benefit Rate of the Rider (see “Benefit Rate” above) at the prior Contract Anniversary, increased for any Additional Purchase Payments; or
•  a withdrawal (including applicable withdrawal charges) you take on and after the Lifetime Income Date that, together with all other withdrawals taken during a Contract Year (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal.
EXAMPLE (Income Plus For Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life® (Annual Step-Up Review) Rider. Also assume that when you are age 67, the Contract Value is $90,000, the Benefit Base is $110,000, the Lifetime Income Amount is $5,500 and the Benefit Rate is 5%. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we first reduce your Benefit Base to $80,000, the lesser of the Contract Value after the withdrawal ($90,000 – $10,000) or the Benefit Base after the withdrawal ($110,000 – $10,000). The new Lifetime Income Amount is $4,000 – 5% of the new Benefit Base after the withdrawal ($80,000).
EXAMPLE (Income Plus For Life – Joint Life® (Annual Step-Up Review)): Assume that you purchase a Contract with an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider. Also assume that when you are age 67, the Contract Value is $90,000 and the Benefit Base is $110,000. The Benefit Rate is 4.75% and the Lifetime Income Amount is $5,225. If you withdraw $10,000, the withdrawal is an Excess Withdrawal and we reduce your Benefit Base to $80,000, the lesser of the Contract Value after the withdrawal ($90,000 – $10,000) or the Benefit Base after the withdrawal ($110,000 – $10,000). The new Lifetime Income Amount is $3,800 – 4.75% of the new Benefit Base after the withdrawal ($80,000).
We do not consider withdrawals under our Life Expectancy Distribution program to result in an Excess Withdrawal unless you take additional withdrawals outside of that program.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date. Each time you take a withdrawal before the Lifetime Income Date, we reduce the Benefit Base by the Withdrawal Amount. If, however, a withdrawal is an Excess Withdrawal, we will reset the Benefit Base to equal the lesser of:
•  the Contract Value immediately after the withdrawal; or
•  the Benefit Base minus the Withdrawal Amount.
    
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If you take withdrawals prior to the Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount on the Lifetime Income Date. You could eventually lose any benefit based on the Lifetime Income Amount if you take withdrawals in excess of an amount equal to the Benefit Rate multiplied by the Benefit Base. If Contract Value declines to zero during a Contract Year in which you have an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus For Life® (Annual Step-Up Review) Rider. (See “Settlement Phase” in this section, below.)
Withdrawals after the Lifetime Income Date. After the Lifetime Income Date, you may withdraw the guaranteed Lifetime Income Amount each Contract Year without affecting the Benefit Base. If your total withdrawals during a Contract Year exceed the Lifetime Income Amount, however, we will reset the Benefit Base and the Lifetime Income Amount.
Each time you take a withdrawal after the Lifetime Income Date, we first determine if the Withdrawal Amount is entirely or partially an Excess Withdrawal. If so, we reset the Benefit Base to equal the lesser of:
•  the Benefit Base before the withdrawal minus the entire amount of the Excess Withdrawal; or
•  the Contract Value immediately after the Excess Withdrawal.
After we reset the Benefit Base, we reset the Lifetime Income Amount to equal the Benefit Rate multiplied by the new Benefit Base. We also reset the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.
The Income Plus For Life® (Annual Step-Up Review) Rider enters a Settlement Phase in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus For Life (Annual Step-Up Review) Rider if Contract Value declines to zero during the Contract Year of the Excess Withdrawal (see “Settlement Phase” in this section, below). The Income Plus For Life® (Annual Step-Up Review) benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero.
Effect of Withdrawals on Guaranteed Minimum Death Benefit Amount. If you purchased Income Plus For Life (Annual Step-Up Review), we adjust the way we calculate the death benefit payable under your Contract upon the death of the Owner (or deemed Owner if the Owner is not a natural person) during the Accumulation Period. We reduce that death benefit each time you take a withdrawal. We will reduce the death benefit on a dollar for dollar basis if:
•  you limit your withdrawals (including applicable withdrawal charges) during a Contract Year to the Lifetime Income Amount; or
•  you purchased the Income Plus For Life® (Annual Step-Up Review) Rider before the Covered Person turned age 59½, and you limit your withdrawals (including applicable withdrawal charges) each Contract Year before the Lifetime Income Date to the Benefit Rate multiplied by the Benefit Base and to the Lifetime Income Amount for each Contract Year after that.
If you take an Excess Withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the Guaranteed Minimum Death Benefit under the Contract. Pro rata means we reduce the Guaranteed Minimum Death Benefit by the same percentage that the Excess Withdrawal reduces the Contract Value. That is, by an amount equal to:
•  the Guaranteed Minimum Death Benefit before the withdrawal, multiplied by an amount equal to:
•  the Excess Withdrawal amount; divided by
•  the Contract Value before the withdrawal.
We also will reduce the Guaranteed Minimum Death Benefit in the same manner for any subsequent Excess Withdrawals that you take during that Contract Year.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with an Income Plus For Life® (Annual Step-Up Review) Series Rider, you can pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide payment of an income for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking
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withdrawals under the Income Made Easy Program no sooner than the Lifetime Income Date for your Rider (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution program is available with the Income Plus For Life® (Annual Step-Up Review) Series Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our Life Expectancy Distribution program reduces your Contract Value. We reduce the Benefit Base by the amount of the withdrawal if you take a withdrawal under our Life Expectancy Distribution program prior to the Lifetime Income Date. We do not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution program.
Settlement Phase. We automatically begin making payments to you under the “Settlement Phase” of a an Income Plus For Life® (Annual Step-Up Review) Series Rider if your Contract Value reduces below a minimum required amount and you satisfy the conditions described in the Rider. During the Settlement Phase, the Contract continues but all other rights and benefits under the Contract, including death benefits and any optional benefit Riders, terminate. We will not accept Additional Purchase Payments for, apply additional Credits or make any Step-Ups to, or deduct any charges from a Rider during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.
The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year,
•  there were no Excess Withdrawals during that Contract Year, and
•  the Benefit Base is still greater than zero at the time.
You will lose the ability to receive Lifetime Income Amounts if you withdraw more than the Lifetime Income Amount during a Contract Year and the Contract Value declines to zero.
The settlement payment we pay to you under the Rider varies:
•  If you enter the Settlement Phase after the Lifetime Income Date, at the start of the Settlement Phase we pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year, and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living.
•  If you enter the Settlement Phase before the Lifetime Income Date, we begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount equals the Lifetime Income Amount.
•  In lieu of annual payments of the settlement amount, we permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.
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Impact of Death Benefits
Income Plus For Life (Annual Step-Up Review). If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
INCOME PLUS FOR LIFE® (ANNUAL STEP-UP REVIEW):
1. Not the Covered Person and the Beneficiary is the deceased Owner’s Spouse - may continue if the Beneficiary elects to continue the Contract within the time we permit under our administrative rules. We automatically increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and assess the Rider fee based on the recalculated Benefit Base.
- enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- continues to be eligible for any remaining Credits and Step-Ups, and a Target Amount adjustment, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Spouse to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-Ups if we increase the rate of the Income Plus For Life® (Annual Step-Up Review) fee at that time.
2. Not the Covered Person and the Beneficiary is not the deceased Owner’s Spouse - may continue in the same manner as 1.
- enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero.
- does not continue to be eligible for any Credits and Step-Ups, or a Target Amount adjustment. We permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit if we increase the rate of the Income Plus For Life® (Annual Step-Up Review) fee at that time.
3. The Covered Person and the Beneficiary is the deceased Owner’s Spouse - ends without any further benefit.
4. The Covered Person and the Beneficiary is not the deceased Owner’s Spouse - ends without any further benefit.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus For Life® (Annual Step-Up Review) Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is an individual, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Income Plus For Life – Joint Life® (Annual Step-Up Review). If the Beneficiary continues a Contract in force following the death of an Owner, coverage under an Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider ends if the deceased Owner is the last Covered Person under the Rider. If the Beneficiary continues a Contract in force following the death of an Owner, coverage under the Rider may continue only if: (a) the deceased Owner is the first Covered Person under the Rider to die; and either (b) the surviving Covered Person is a Spousal Beneficiary or (c) the surviving Covered Person is a Spouse of the deceased Owner and a tax-qualified retirement plan is the non-Spousal Beneficiary. If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not increase the Benefit Base, Lifetime Income Amount, Credits or Step-Ups).
If the Rider continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
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Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an Owner if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract’s death benefit as a lump sum under our current administrative procedures, subject to the distribution options listed in the Contract. (See “Death after Removal of a Covered Person” below if there is no surviving Covered Person.) If the Contract continues, the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider fee (see “Fee for Income Plus For Life® (Annual Step-Up Review) Series Riders” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups). We will treat any distribution of death benefits under a Contract as a “withdrawal” for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount.
If the first Covered Person to die is not the Owner (and is not deemed to be an Owner if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Credits or Step-Ups.
We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person.
Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus For Life – Joint Life® (Annual Step-Up Review) Rider is in effect we will reduce the Lifetime Income Amount to zero and we no make no additional payments under the Rider to the Beneficiary.
Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider. If that happens and:
•  if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and
•  if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the “last” Covered Person and the Rider will terminate.
Termination of Rider
You may not terminate the Income Plus For Life® (Annual Step-Up Review) Rider once it is in effect. However, the Income Plus For Life® (Annual Step-Up Review) Rider terminates automatically upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract;
•  the date an Annuity Option begins;
•  the date the Contract Value and the Benefit Base both equal zero;
•  the death or removal of the Covered Person; or
•  termination of the Contract.
Features of Principal Plus and Principal Plus for Life Series Riders
Forms of Guaranteed Amounts
Principal Plus and each of the Principal Plus for Life Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period that guarantees the return of your investments in the Contract, regardless of market performance, as long as you limit your annual withdrawals to the Guaranteed Withdrawal Amount.
In addition, Principal Plus for Life, and Principal Plus for Life Plus Automatic Annual Step-Up Riders provide a lifetime income guarantee based on a single life. Principal Plus does not provide a lifetime income guarantee.
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Principal Plus and PPFL Benefits
Lifetime Income Amount (Not applicable to Principal Plus). The Principal Plus for Life Series Riders provide our guarantee that a Lifetime Income Amount will be available for withdrawal each Contract Year, beginning on a Lifetime Income Date as long as the Covered Person remains alive and an Owner, Beneficiary or Annuitant under the Contract an Owner, Beneficiary or Annuitant under the Contract.
We determine the initial Lifetime Income Amount by multiplying:
•  the Benefit Rate for the Rider (5%); by
•  the Benefit Base for the Rider on the Lifetime Income Date.
EXAMPLE: Assume that the Benefit Base on the Lifetime Income Date is $100,000. If the benefit rate is 5%, the Lifetime Income Amount is $5,000 (5% × $100,000).
The maximum Lifetime Income Amount at any time for a Principal Plus for Life Series Rider is $250,000. We will increase the Lifetime Income Amount to reflect Additional Purchase Payments, Credits and Step-Ups. Please see “Increases in Guaranteed Amounts” in this section, below, for more information.
We will reduce the Lifetime Income Amount if you take Excess Withdrawals. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
Lifetime Income Date (Not applicable to Principal Plus). The Lifetime Income Date is the date you purchased the Rider if:
•  (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Riders purchased outside of New York after June 16, 2008) you were age 58½ or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you turn age 58½.
•  (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Riders purchased from March 12, 2007 to June 15, 2008, or purchased in New York) you were age 59½ or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you turn age 59½.
•  (for Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Riders purchased before March 12, 2007) you were age 65 or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you turn age 65.
Benefits under the Rider may be affected if you purchased the Rider before the earliest available Lifetime Income Date and take a withdrawal before then. Please see “Withdrawals before the Lifetime Income Date” for more information.
We determine the initial Lifetime Income Amount on the Lifetime Income Date. You cannot change or defer the Lifetime Income Date under these Riders, but you may continue to be eligible for Credits and Step-Ups if you defer taking withdrawals (see “Increases in Guaranteed Amounts” below).
Benefit Base
The Riders refer to the Benefit Base as the “Guaranteed Withdrawal Balance.”
The maximum Benefit Base at any time is $5 million. We will increase the Benefit Base to reflect Additional Purchase Payments, Credits and Step-Ups. We will reduce the Benefit Base if you take a withdrawal. We may reduce the Benefit Base to reflect the withdrawal either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
The Benefit Base we use to determine the initial Guaranteed Withdrawal Amount is equal to your initial Purchase Payment. (We do not count Purchase Payment amounts over $5 million or, for Contracts issued in New York with a Payment Enhancement Rider, any Payment Enhancement attributable to the Purchase Payment for this purpose.) If we allowed you to purchase your Rider after the first Contract Year, we may have determined the Benefit Base by using your Contract Value after the first Contract Year.
The Benefit Base we use to determine the initial Lifetime Income Amount (not applicable to Principal Plus) is equal to the Benefit Base on the Lifetime Income Date.
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Benefit Rate
The Benefit Rate is:
•  Principal Plus – 5.00%
•  Principal Plus for Life – 5.00%
•  Principal Plus for Life Plus Automatic Annual Step-Up – 5.00%
Guaranteed Withdrawal Amount
The Guaranteed Withdrawal Amount is the amount we guarantee to be available each Contract Year for you to withdraw during the Accumulation Phase until the Benefit Base is depleted. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Benefit Base. The maximum Guaranteed Withdrawal Amount at any time is $250,000.
Increases in Guaranteed Amounts
Additional Purchase Payments – Principal Plus Rider. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under a Principal Plus Rider.
We will increase the Benefit Base (i.e., the Guaranteed Withdrawal Balance in your Rider) each time you make an Additional Purchase Payment that we accept (see “Restrictions on Additional Purchase Payments,” above), subject to the maximum Benefit Base limit of $5 million. In addition, we recalculate the Guaranteed Withdrawal Amount and usually increase it to equal the lesser of:
•  5% of the Benefit Base immediately after the Additional Purchase Payment; or
•  the Guaranteed Withdrawal Amount immediately prior to the Additional Purchase Payment plus an amount equal to 5% of the Additional Purchase Payment.
We do not change the Guaranteed Withdrawal Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount, before the Additional Purchase Payment.
Additional Purchase Payments – Principal Plus for Life Series Riders. We will increase the Benefit Base (i.e., the Guaranteed Withdrawal Balance in your Rider) each time you make an Additional Purchase Payment, up to a maximum Benefit Base of $5 million.
In addition, we will recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount and usually increase it:
•  in the case of the Guaranteed Withdrawal Amount, to equal the lesser of:
•  5% of the Benefit Base immediately after the Additional Purchase Payment; or
•  the Guaranteed Withdrawal Amount immediately prior to the Additional Purchase Payment plus an amount equal to 5% of the Additional Purchase Payment.
•  in the case of the Lifetime Income Amount, to equal the lesser of:
•  5% of the Benefit Base immediately after the Additional Purchase Payment; or
•  the Lifetime Income Amount immediately prior to the Additional Purchase Payment plus an amount equal to 5% of the Purchase Payment.
We do not change the Guaranteed Withdrawal Amount or the Lifetime Income Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount or Lifetime Income Amount, as the case may be, before the Additional Purchase Payment.
Credits. The Riders provide the following Credit features:
•  Credit Rate – 5%.
•  initial Credit Period
•  (for Principal Plus) – the first 5 Contract Years.
•  (for Principal Plus for Life Series Riders issued prior to May 1, 2007) - the lesser of: (a) the first 10 Contract Years or (b) each Contract Year up to the Contract Year in which the Covered Person turns age 80.
•  (for Principal Plus for Life Series Riders issued on and after May 1, 2007) - the first 10 Contract Years.
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•  extended Credit Period (for Principal Plus for Life Series Riders issued on and after May 1, 2007) – Each time a Step-Up occurs, we extend the Credit Period to the lesser of: (a) 10 years from a Step-Up Date; or (b) the Age 95 Anniversary Date.
Annual Credits. (We refer to an Annual Credit in your Rider as a “Bonus” and we may refer to Annual Credits as “Deferral Credits” in our communications.) We increase the Benefit Base on each Contract Anniversary during the Credit Period for Annual Credits if you take no withdrawals during the previous Contract Year.
Each time you qualify for a Credit, we increase the Benefit Base:
•  by an amount equal to 5% of total Purchase Payments to the Contract if you did not previously Step-Up the Benefit Base and/or we did not previously reduce the Benefit Base (see “Withdrawals, Distributions and Settlements”); otherwise
•  by an amount equal to 5% of the Benefit Base immediately after the latest Step-Up or reduction, increased by any Purchase Payments received since such latest Step-Up or reduction.
Each time we apply a Credit to the Benefit Base, we also recalculate the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Credit or 5% of the Benefit Base after the Credit. Under Principal Plus for Life Series Riders, we will also recalculate the Lifetime Income Amount to equal the greater of the Lifetime Income Amount prior to the Credit or 5% of the Benefit Base after the Credit.
EXAMPLE: Assume that you purchase a Contract with a Principal Plus for Life Rider when you, the Covered Person, are 65, you take no withdrawals during the first and second Contract Year. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and there is no increase in Contract Value during the first and second Contract Years.
•  At the end of the first Contract Year, we apply a Credit to the Benefit Base and increase it to $105,000 ($100,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,250 (5% × $105,000).
•  At the end of the second Contract Year, we apply a Credit to the Benefit Base and increase it again to $110,000 ($105,000 + 5% × $100,000). The Lifetime Income Amount increases to $5,500 (5% × $110,000).
Now assume you take an Excess Withdrawal of $10,000 during the third Contract Year that reduces the Benefit Base to $100,000, you take no withdrawals, and you make an Additional Purchase Payment of $5,000 in the fourth Contract Year.
•  At the end of the third Contract Year, there is no Credit because you took a withdrawal during the year.
•  At the end of the fourth Contract Year, we apply a Credit to the Benefit Base. The Credit is based on the reduced Benefit Base plus the Additional Purchase Payment (5% × ($100,000 + $5,000) = $5,250). The Benefit Base increases to $110,250 ($100,000 + $5,000 + $5,250) and the Lifetime Income Amount increases to $5,513 (5 × $110,250).
Step-Ups. The Principal Plus and Principal Plus For Life Series Riders provide Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts. Step-Up Dates coincide with the first Contract Anniversary after you purchased the Rider and every Contract Anniversary thereafter, up to and including the Age 95 Contract Anniversary. You will no longer be eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
If the Contract Value on any Step-Up Date is greater than the Benefit Base (including any Credit) on that date, we will automatically step up the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). Each time we apply a Step-Up, we also recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount (with respect to Principal Plus for Life Series Riders), and the applicable Rider fee (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). The recalculated Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Step-Up or 5% of the Benefit Base after the Step-Up, and the Lifetime Income Amount will equal the greater of the Lifetime Income Amount prior to the Step-Up or 5% of the Benefit Base after the Step-Up. We also reserve the right to increase the rate of the Rider fee up to a maximum rate of:
•  (for Principal Plus and Principal Plus for Life) 0.75%, and
•  (for Principal Plus for Life Plus Automatic Annual Step-Up) 1.20%.
If we decide to increase the rate at the time of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
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Step-Up Dates. We schedule Step-Up Dates:
•  (for Principal Plus) - every 3rd Contract Anniversary after the Contract Date (i.e., the 3rd, 6th, 9th etc.), up to and including the 30th Contract Anniversary.
•  (for Principal Plus for Life Series Riders issued before May 1, 2007 and in a limited number of states thereafter) – the 3rd, 6th and 9th Contract Anniversary after the Contract Date, and each succeeding Contract Anniversary on and after the 9th Contract Anniversary (i.e., the 10rd, 11th, 12th etc.), up to and including the 30th Contract Anniversary.
•  (for Principal Plus for Life Series Riders issued on and after May 1, 2007 (may vary by state)) - the 3rd, 6th and 9th Contract Anniversary after the Contract Date, and each succeeding Contract Anniversary on and after the 9th Contract Anniversary (i.e., the 10th, 11th, 12th, etc.) up to and including the Age 95 Contract Anniversary.
•  (for Riders issued in Oregon) - we limit the duration of Step-Up Dates to a maximum of 50 Contract Years.
•  (for Principal Plus for Life Riders with endorsement) - we issued an endorsement, in states where approved, after we issued certain Principal Plus for Life Riders. This endorsement increases Step-Up Dates to include each succeeding Contract Anniversary on and after the 9th Contract Anniversary. In such cases, an affected Owner had the option to decline the endorsement within 30 days of its issuance and, if he or she did so, we scheduled Step-Up Dates under the original schedule.
Under Principal Plus for Life Plus Automatic Annual Step-Up, prior to May 1, 2007, we automatically step up the Benefit Base to equal the Contract Value on each Contract Anniversary starting with the first Contract Anniversary. We continue Step-Ups until, and including, the 30th Contract Anniversary (or when the Covered Person turns the age of 80, if earlier) while the Rider is in effect, provided the Contract Value is greater than the Benefit Base on that date. On and after May 1, 2007, we continue Step-Up’s until age 95.
EXAMPLE: Assume that you purchase a Contract with a Principal Plus for Life Plus Automatic Annual Step-Up Rider when you, the Covered Person, are 61, you take no withdrawals during the first three Contract Years and the applicable Annual Credit rate is 5%. Also assume that you purchase the Contract and Rider for $100,000, make no Additional Purchase Payments, and that the Contract Value on the third Contract Anniversary is $125,000. The Benefit Base on the third Contract Anniversary including the Annual Credits for the first three Contract Years is $115,000. Since the Contract Value of $125,000 is greater than the current Benefit Base including the Credit, the Benefit Base increases to $125,000 and the Lifetime Income Amount increases to $6,250 (5% × $125,000). If no withdrawals are taken in the fourth Contract Year, the Credit on the fourth Contract Anniversary equals $6,250 (5% × $125,000).
Election of Step-Ups under Principal Plus. Under Principal Plus, you may elect to step up the Benefit Base (and Guaranteed Withdrawal Amount, if applicable) to the recalculated value within 30 days following each Step-Up Date. Subject to state approval, however, we may have issued a special endorsement to a Principal Plus Rider after we issued the Contract. Under this special endorsement to the Principal Plus Rider, we automatically increase the Benefit Base (and Guaranteed Withdrawal Amount, if applicable) to equal a higher recalculated value. In such cases, an affected Owner may decline the endorsement within 30 days of its issuance. If so, you then need to elect a Step-Up within 30 days of the respective Step-Up Date if you choose to make the increase effective.
If you decline a scheduled Step-Up, you have the option to elect to step up the Benefit Base (as well as the Guaranteed Withdrawal Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base and the special endorsement to your Principal Plus Rider is in effect, we will thereafter resume automatic Step-Ups on each succeeding Step-Up Date.
Step-Ups under Principal Plus for Life Series Riders. We automatically step up the Benefit Base to equal the Contract Value (up to a maximum of $5 million). If you decline an automatic scheduled Step-Up, you have the option to elect to step up the Benefit Base (as well as the Guaranteed Withdrawal Amount and Lifetime Income Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base, we will thereafter resume automatic Step-Ups.
Recalculation of Guaranteed Amounts. Each time we apply a Step-Up, we also recalculate the Guaranteed Withdrawal Amount, or Lifetime Income Amount for Principal Plus for Life Series Riders, to equal the greater of either the Guaranteed Withdrawal Amount or Lifetime Income Amount, as appropriate, prior to the Step-Up or 5% of the new Benefit Base value after the Step-Up.
Impact of Step-Ups on Rider Fees. Each time we increase the Benefit Base, we also increase the dollar amount of the Rider fee. The new Rider fee will be based on the new Benefit Base. We also reserve the right to increase the rate of the Principal Plus and Principal Plus for Life fee up to a maximum rate of 0.75%; we reserve the right to increase the rate of the Principal
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Plus for Life Plus Automatic Annual Step-Up fee up to a maximum rate of 1.20%. If we decide to increase the rate at the effective date of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-Up (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Step-Ups may occur only while the Principal Plus or Principal Plus for Life Series Rider is in effect.
Withdrawals, Distributions and Settlements
Overview. The Principal Plus and Principal Plus for Life Series Riders provide a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these Riders permit you to withdraw a minimum annual amount, for as long as a Covered Person lives (does not apply to Principal Plus, which permits withdrawals until the Benefit Base is depleted to zero), subject to the terms and conditions of the Rider. We may have determined the amount of the initial guarantee after we issued your Contract, depending on the age of the Covered Person when we issued the Contract. We may increase the guarantee:
•  by one or more Credits if you make no withdrawals during certain Contract Years, up to limits described in the “Credits” section, above;
•  as a result of a Step-Up of the guarantee (see preceding section) to reflect your then-current Contract Value on certain Contract Anniversary dates; or
•  if you make an Additional Purchase Payment that we accept under a Financial Account Plan or Payroll Plan (up to specified limits and if not otherwise restricted).
Although these Riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Guaranteed Withdrawal Amount and/or Lifetime Income Amount could be significantly reduced. If Contract Value or your Benefit Base declines to zero before the Lifetime Income Date, you will lose the guaranteed minimum withdrawal benefit under the Rider (see “Settlement Phase” in this section, below).
We reduce your Contract Value each time you take a withdrawal. We may reduce the Benefit Base and Lifetime Income Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Lifetime Income Amount values.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider you selected. Your future Lifetime Income Amount could be significantly reduced if:
•  you take withdrawals prior to the Lifetime Income Date, or
•  your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
An Excess Withdrawal under Principal Plus or a Principal Plus for Life Series Rider is a withdrawal (including applicable withdrawal charges) you take that, together with all other withdrawals (including any applicable withdrawal charges) previously taken during the Contract Year of the withdrawal, exceeds the Guaranteed Withdrawal Amount at the time of withdrawal. For Principal Plus for Life Series Riders, an Excess Withdrawal also includes withdrawals (including applicable withdrawal charges) you take: (a) before the Lifetime Income Date; or (b) on or after the Lifetime Income Date that, together with all other withdrawals (including applicable withdrawal charges) taken during a Contract Year, causes total withdrawals during that Contract Year to exceed the Lifetime Income Amount at the time of withdrawal.
We do not consider withdrawals under our Life Expectancy Distribution program to result in Excess Withdrawals with respect to the Guaranteed Withdrawal Amount unless you take additional withdrawals outside of that program. We do not consider withdrawals under our Life Expectancy Distribution program to result in Excess Withdrawals with respect to the Lifetime Income Amount unless: (a) you take additional withdrawals outside of that program; or (b) you take a distribution under that program before the Lifetime Income Date.
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Impact of Withdrawals. We decrease the Benefit Base each time you make a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we will decrease the Benefit Base by the amount of the withdrawals. If an Excess Withdrawal is the result of your total withdrawals during a Contract Year exceeding the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we will automatically recalculate and, in most cases reduce, the Benefit Base to equal the lesser of:
•  the Contract Value immediately after the withdrawal; or
•  the Benefit Base immediately prior to the withdrawal minus the amount of the withdrawal.
Each time we recalculate the Benefit Base, we also recalculate, and in most cases reduce, the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the lesser of:
•  the Guaranteed Withdrawal Amount prior to the withdrawal; or
•  5% of the greater of: (a) the Contract Value after the withdrawal or (b) the new Benefit Base value.
We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year.
If you experience unfavorable investment performance, an Excess Withdrawal could result in substantial reductions to your Contract Value and Benefit Base. Your future Guaranteed Withdrawal Amount and/or Lifetime Income Amount could be significantly reduced, and if both your Contract Value and Benefit Base decline to zero before the Lifetime Income Date, you will lose your guaranteed minimum withdrawal benefit.
Withdrawals before the Lifetime Income Date (not applicable to Principal Plus). Under Principal Plus for Life Series Riders, we deem any withdrawal before the Lifetime Income Date to be entirely or partially an Excess Withdrawal with respect to the Lifetime Income Amount because it reduces the Benefit Base we use on the Lifetime Income Date to determine the Lifetime Income Amount. This includes reductions to the Benefit Base caused by distributions under our Life Expectancy Distribution Program before the Lifetime Income Date.
Withdrawals on and after the Lifetime Income Date (not applicable to Principal Plus). Under Principal Plus for Life Series Riders, we recalculate the Lifetime Income Amount after the Lifetime Income Date if an Excess Withdrawal is the result of total withdrawals during a Contract Year exceeding the Lifetime Income Amount (or if total withdrawals during a Contract Year have already exceeded the Lifetime Income Amount). In that case, the Lifetime Income Amount equals the lesser of:
•  the Lifetime Income Amount prior to the withdrawal; or
•  5% of the greater of the Contract Value immediately after the withdrawal or the new Benefit Base value.
Under Principal Plus for Life Series Riders, we do not change your Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount. Although you may continue to take withdrawals up to the Guaranteed Withdrawal Amount after the Lifetime Income Date without reduction of the Guaranteed Withdrawal Amount benefit (as long as there is a positive Benefit Base value), your Lifetime Income Amount benefit may be reduced if the amount you withdraw exceeds the Lifetime Income Amount. You could eventually lose any benefit based on the Lifetime Income Amount if you continue to take withdrawals in excess of the Lifetime Income Amount.
If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we recalculate amounts we guarantee for future withdrawals. We may recalculate and reduce the Benefit Base, Guaranteed Withdrawal Amount and, Lifetime Income Amount (under Principal Plus for Life Series Riders) values to reflect reductions that exceed the amount of your withdrawals. A recalculation and reduction also may reduce the total amount guaranteed below the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount and (under Principal Plus for Life Series Riders) Lifetime Income Amount values. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with a Principal Plus or Principal Plus for Life Series Rider, you may be able to pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with a Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up Rider to provide automatic payment of an income for the lifetime of the Covered
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Person. The full allowable amount is based on the Lifetime Income Amount. We also offer the Income Made Easy Program for Principal Plus, and the full allowable amount is based on the Guaranteed Withdrawal Amount. You can start taking withdrawals under the Income Made Easy Program no sooner than the earliest available Lifetime Income Date for your Rider (see “Pre-authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution program is available with the Principal Plus and Principal Plus for Life Series Riders (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
For Principal Plus, the Company’s Life Expectancy Amount for each year is equal to the greater of:
•  the Contract Value as of the applicable date divided by the Owner’s life expectancy; or
•  the Benefit Base as of the applicable date divided by the Owner’s life expectancy.
For purposes of these Life Expectancy Amount calculations, the Owner’s life expectancy is determined using the applicable mortality tables (Uniform Table, if allowable) approved by the Internal Revenue Service for such specific purpose under the latest guidance or regulations, as of September 30, 2003, issued under the relevant section of the Code referred to above.
In the future, the requirements under tax law for such distributions may change and the Life Expectancy Amount calculation provided under Principal Plus may not be sufficient to satisfy the requirement under tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements will exceed the Life Expectancy Amount and may result in a recalculation and reduction of the Benefit Base and the Guaranteed Withdrawal Amount. Please discuss these matters with your tax professional for more information on distribution requirements under the Code.
Each withdrawal under our Life Expectancy Distribution program reduces your Contract Value.
We will not make any further withdrawals under our Life Expectancy Distribution program if both the Contract Value and the Benefit Base are depleted to zero. Under a Principal Plus for Life Series Rider, however, we will make further distributions as part of the Settlement Phase if the Lifetime Income Amount is greater than zero and the Covered Person is living at that time.
Settlement Phase. Principal Plus enters a Settlement Phase if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but the Benefit Base immediately after the withdrawal is greater than zero (see “Settlement Phase” below). The Principal Plus benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are both equal to zero.
The Principal Plus for Life Series Riders enters a Settlement Phase if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but either the Benefit Base or the Lifetime Income Amount immediately after the withdrawal is greater than zero. The Rider benefit terminates if the Contract Value, Benefit Base and Lifetime Income Amount immediately after a withdrawal are all equal to zero.
Settlement Payments during Principal Plus Settlement Phase. At the beginning of Principal Plus’s Settlement Phase, you may choose settlement payments that total an amount no greater than the Guaranteed Withdrawal Amount, or Life Expectancy Distributions if applicable, to be paid to you automatically each Contract Year until the Benefit Base depletes to zero (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” earlier in this Appendix). If the Guaranteed Withdrawal Amount, or the Life Expectancy Distribution if applicable, for a Contract Year exceeds the Benefit Base, however, then the settlement payment for that Contract Year will be limited to the Benefit Base. The settlement payments will be paid no less frequently than annually. If any Owner dies during Principal Plus’s Settlement Phase, remaining settlement payments will be paid to the Beneficiary and are subject to the distribution provisions of the “Death Benefit Before Maturity Date” section of the Prospectus described in “Accumulation Period Provisions.”
This provision is also applicable if the Beneficiary does not take the death benefit as a lump sum under our current administrative procedures and Principal Plus continues (as described in “Impact of Death Benefits,” below) and death benefit distributions deplete the death benefit to zero. When this occurs, settlement payments made in Principal Plus’s Settlement Phase are subject to the distribution provisions of the “Death Benefit Before Maturity Date” section of the Contract described in the “Accumulation Period Provisions – Payment of Death Benefit” provision of this Prospectus.
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Settlement Payments during Principal Plus for Life Series Riders Settlement Phase. At the beginning of the Settlement Phase, the settlement payment amount we permit you to choose varies:
•  You may choose an amount that is no greater than, or equal to, the Guaranteed Withdrawal Amount if the Benefit Base is greater than zero at the beginning of the Settlement Phase. We reduce any remaining Benefit Base each time we make a settlement payment, and automatically pay the settlement amount to you each Contract Year while the Covered Person is alive until the Benefit Base reduces to zero. After that, we make settlement payments to you each Contract Year during the Covered Person’s lifetime in an amount that is equal to any remaining Lifetime Income Amount value. Keep in mind that in certain circumstances the Lifetime Income Amount may be less than the Guaranteed Withdrawal Amount, and under those circumstances your choice of an amount in excess of the Lifetime Income Amount could result in a reduction of the Lifetime Income Amount.
•  You may choose to continue to receive distribution payments under the Life Expectancy Distribution program if the program is in effect under your Contract and the Benefit Base is greater than zero at the beginning of the Settlement Phase. If you do, we reduce any remaining Benefit Base each time we make a distribution payment and automatically make distribution payments each Contract Year while the Covered Person is alive until the Benefit Base reduces to zero. After that, we make settlement payments to you each Contract Year during the Covered Person’s lifetime in an amount that is equal to any remaining Lifetime Income Amount value.
•  We make settlement payments to you each Contract Year during the Covered Person’s lifetime in an amount that is equal to the Lifetime Income Amount if there is no remaining Benefit Base at the beginning of the Settlement Phase. If the Covered Person is alive when the Benefit Base is depleted, we continue to make settlement payments each Contract Year during the Covered Person’s lifetime in an amount that is equal to the Lifetime Income Amount.
•  After the Lifetime Income Date, if you choose to receive a settlement payment that is in excess of the Lifetime Income Amount, we recalculate the Lifetime Income Amount in the same manner as a withdrawal that exceeds the Lifetime Income Amount. We do not recalculate the Lifetime Income Amount, however, if you receive distribution payments under the Life Expectancy Distribution program.
Impact of Death Benefits. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, the Rider will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures.
Continuation of Principal Plus. If the Beneficiary does not take the death benefit as a lump sum, the following applies:
If the Beneficiary is: Then
PRINCIPAL PLUS:
1. The deceased Owner’s Spouse - Continues if the Benefit Base is greater than zero.
- Within 30 days following the date we determine the death benefit under the Contract, provides the Beneficiary with an option to elect to step up the Benefit Base if the death benefit on the date of determination is greater than the Benefit Base.
- Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Benefit Base is still greater than zero. (Death benefit distributions are treated as withdrawals. Some methods of death benefit distribution may result in distribution amounts in excess of both the Guaranteed Withdrawal Amount and the Life Expectancy Distributions. In such cases, the Benefit Base may be automatically Reset, thereby possibly reducing the Guaranteed Minimum Withdrawal Benefit provided under this Rider).
- Continues to impose the Principal Plus fee.
- Continues to be eligible for any remaining Credits and Step-Ups, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. Remaining eligible Step-Up Dates will also be measured beginning from the death benefit determination date but the latest Step-Up Date will be no later than the 30th Contract Anniversary.
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If the Beneficiary is: Then
PRINCIPAL PLUS:
2. Not the deceased Owner’s Spouse - Continues in the same manner as above, except that Principal Plus does not continue to be eligible for any remaining Credits and Step-Ups, other than the initial Step-Up of the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus continues, we determine the Adjusted Benefit Base and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Continuation of Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-Up. If the Beneficiary elects not to take the death benefit as a lump sum, the following applies:
If the Deceased
Owner is: 		Then
PRINCIPAL PLUS FOR LIFE OR PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP:
1. The Covered Person and the Beneficiary is the deceased Owner’s Spouse - Does not continue with respect to the Lifetime Income Amount, but continues with respect to the Guaranteed Withdrawal Amount if the death benefit or the Benefit Base is greater than zero. We automatically step up the Benefit Base to equal the initial death benefit we determine, if greater than the Benefit Base prior to the death benefit.
- Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Benefit Base is still greater than zero.
- Continues to impose the Principal Plus for Life fee.
- Continues to be eligible for any remaining Credits and Step-Ups, but we change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We permit the Spouse to opt out of the initial death benefit Step-Up, if any, and any future Step-Ups if we increase the rate of the Rider fee at that time.
2. The Covered Person and the Beneficiary is not the deceased Owner’s Spouse - Continues in the same manner as 1, except that Principal Plus for Life does not continue to be eligible for any remaining Credits and Step-Ups, other than the initial Step-Up of the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit. We permit the Beneficiary to opt out of the initial death benefit Step-Up, if any, if we increase the rate of the Rider fee at that time.
3. Not the Covered Person and the Beneficiary is the deceased Owner’s Spouse - Continues in the same manner as 1, except that the Rider continues with respect to the Lifetime Income Amount for the Beneficiary. If the Lifetime Income Amount has not been determined prior to the payment of any portion of the death benefit, we determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached his or her Lifetime Income Date.
4. Not the Covered Person and the Beneficiary is not the deceased Owner’s Spouse - Continues in the same manner as 1, except that the Rider continues with respect to the Lifetime Income Amount for the Beneficiary. If the Lifetime Income Amount has not been determined prior to the payment of any portion of the death benefit, we determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached his or her Lifetime Income Date.
- In this case, does not continue to be eligible for any remaining Credits and Step-Ups, other than the initial Step-Up of the Benefit Base to equal the death benefit, if greater than the Benefit Base prior to the death benefit. We permit the Beneficiary to opt out of the initial death benefit Step-Up, if any, if we increase the rate of the Rider fee at that time.
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If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-Up continues, we determine the Adjusted Benefit Base and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Plus or Principal Plus for Life Rider. Under the Principal Plus for Life Series Riders, we reduce the Lifetime Income Amount to zero if the Covered Person dies during the Settlement Phase. An individual Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. An individual Beneficiary who is the deceased Owner’s surviving Spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Termination of Rider
You may not terminate a Principal Plus or Principal Plus for Life Series Rider once it is in effect. The respective Rider terminates automatically, however, upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; or
•  under Principal Plus, the date the Benefit Base depletes to zero; or
•  under Principal Plus for Life Series Riders, the date the Contract Value, the Benefit Base and the Lifetime Income Amount all equal zero; or
•  under Principal Plus, the Maturity Date under the Contract; or
•  under Principal Plus for Life Series Riders, the date an Annuity Option begins; or
•  the date a new guaranteed minimum withdrawal benefit Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
Features of Principal Returns Rider
Form of Guarantee
The Principal Returns Rider provides a guaranteed minimum withdrawal benefit during the Accumulation Period that guarantees the return of initial Purchase Payments (i.e., the cumulative Purchase Payments you pay for your Contract, up to a $5 million limit, from the date the Rider goes into effect until the next following Contract Anniversary), regardless of market performance, as long as you limit your annual withdrawals to a Guaranteed Withdrawal Amount (see below).
In addition, the Rider provides our guarantee that, as long as you take no withdrawals of Contract Value during the first 10 Contract Years, your Contract Value at the end of that period will not be less than the greater of (a) the amount of your initial Purchase Payments (up to $5 million) or (b) your Contract Value plus the sum of all Principal Returns Rider fees paid to date. Please read the discussion of the Ten Year Credit, below, for more details.
The Rider does not provide a lifetime income guarantee.
Benefit Base
The Rider refers to the Benefit Base as the “Guaranteed Withdrawal Balance.” The Benefit Base we use to determine the initial Guaranteed Withdrawal Amount is equal to your initial Purchase Payments. If we allowed you to purchase the Rider after the first Contract Year, we may determine the Benefit Base by using your Contract Value after the first Contract Year.
The maximum Benefit Base at any time is $5 million. We increase the Benefit Base to reflect Additional Purchase Payments and Step- Ups. We reduce the Benefit Base if you take Excess Withdrawals. We may reduce the Benefit Base to reflect these withdrawals either on a dollar-for-dollar basis or on a pro-rata basis, depending on the nature of the withdrawal. Please see “Withdrawals, Distributions and Settlements” in this section, below, for more information.
Benefit Rate
The Benefit Rate is 8%.
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Guaranteed Withdrawal Amount
The Guaranteed Withdrawal Amount is the amount we guarantee to be available each Contract Year for you to withdraw during the Accumulation Phase until the Benefit Base is depleted. The initial Guaranteed Withdrawal Amount is equal to 8% of the initial Benefit Base. The maximum Guaranteed Withdrawal Amount at any time is $400,000.
Although this Rider guarantees minimum annual withdrawal amounts, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. If you take withdrawals for more than the annual amounts permitted under the terms of the Principal Returns Rider, however, we may reduce the guaranteed minimum amounts. If you take withdrawals during the first 10 Contract Years, you are no longer eligible for our tenth year Accumulation Benefit. Please read the discussion of the Ten Year Credit, below, for more details.
Increases in Guaranteed Amounts
Additional Purchase Payments. Our restrictions on Additional Purchase Payments may prevent you from increasing the amounts we guarantee under the Principal Returns Rider.
We increase the Benefit Base (i.e., the Guaranteed Withdrawal Balance in your Rider) by the amount of each Additional Purchase Payment we accept (see “Restrictions on Additional Purchase Payments,” above), subject to the maximum Benefit Base limit of $5 million. In addition, we recalculate the Guaranteed Withdrawal Amount, and usually increase it, to equal the lesser of:
•  8% of the Benefit Base immediately after the Purchase Payment; or
•  the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus an amount equal to 8% of the Additional Purchase Payment.
We do not change the Guaranteed Withdrawal Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount before the Additional Purchase Payment. Additional Purchase Payments during Contract Years Two through Ten may decrease the amount credited to your Contract Value under the Rider’s Accumulation Benefit (see following section).
Accumulation Benefit (not available for Riders issued in the state of Washington). As long as you take no withdrawals during the first ten years that your Principal Returns Rider is in effect, we calculate and, to the extent necessary, apply a credit at the end of the period so that your Contract Value equals the greater of:
•  the amount of your initial Purchase Payments, up to $5 million; or
•  your Contract Value at the end of the ten-year period plus the sum of all Principal Returns Rider fees paid to that date.
Your initial Purchase Payments, for these purposes, means all Purchase Payments you make during the first Contract Year in which you purchased the Rider, up to $5 million. If you make any Additional Purchase Payments during Contract years two through ten, your Contract Value at the end of the Credit Period reflects these additional investments. These Additional Purchase Payments could reduce the amount that we would otherwise credit to your Contract Value, and therefore could reduce your ability to recover investment losses, if any, on your initial Purchase Payments.
If you qualify, we determine an Accumulation Benefit on your 10th Contract Anniversary and credit it to your Contract Value. We apply the Accumulation Benefit, if any, to each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value.
You are not eligible for an Accumulation Benefit if you take a withdrawal of Contract Value, including any required minimum distribution from a Qualified Contract or any withdrawal of death benefit proceeds, during the first 10 Contract Years.
Step-Ups. The Principal Returns Rider provides Step-Ups. We discuss how the Step-Up works below. The Step-Up compares your Contract Value on a Step-Up Date to certain previously calculated guaranteed amounts.
We schedule Step-Up Dates for the 3rd, 6th and 9th Contract Anniversary after the Contract Date. After the 9th Contract Anniversary, we increase the schedule of Step-Up Dates to include each succeeding Contract Anniversary (i.e., the 10th, 11th, 12th, etc.) up to and including the Age 95 Contract Anniversary. You are no longer eligible for Step-Ups, however, if you decline a scheduled increase in the Rider fee rate (see “Rider Fees” earlier in this Appendix).
On each Step-Up Date, we compare the Benefit Base to the Contract Value on that date. If the Contract Value on any Step-Up Date is greater than the Benefit Base on that date, we automatically increase the Benefit Base to equal the Contract Value (up
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to a maximum Benefit Base of $5 million). Each time we recalculate a Step-Up, we also recalculate the Guaranteed Withdrawal Amount. The recalculated Guaranteed Withdrawal Amount equals the greater of the current Guaranteed Withdrawal Amount or 8% of the new Benefit Base.
Impact of Step-Ups on Rider Fees. Each time we increase the Benefit Base, we also increase the dollar amount of the Rider fee. The new Rider fee will be based on the new Benefit Base. We reserve the right to increase the rate of the fee on any Step-Up Date, up to a maximum rate of 0.95%. If we decide to increase the rate at the effective date of a Step-Up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the Step-Up (see “Rider Fees” in “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix). If you decline the Step-Up, the fee rate will not be increased.
Declination of Step-Ups. If you decline an automatic Step-Up, you will have the option to elect to step up the Benefit Base (as well as the Guaranteed Withdrawal Amount) within 30 days of subsequent Step-Up Dates. If you decide to step up the Benefit Base at that time, we will thereafter resume automatic Step-Ups.
Withdrawals, Distributions and Settlements
Overview. Although the Rider guarantees a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract’s Accumulation Period. We reduce your Contract Value and your death benefit each time you take a withdrawal (see “Impact of Death Benefits” in this section, below). We may reduce the Benefit Base and Guaranteed Withdrawal Amount values if you take Excess Withdrawals. If you experience unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) and then take withdrawals, your future Guaranteed Withdrawal Amount could be significantly reduced.
We reduce your Contract Value each time you take a withdrawal. We may reduce the Benefit Base and Guaranteed Withdrawal Amount values if you take Excess Withdrawals. Excess Withdrawals may reduce or eliminate future Guaranteed Withdrawal Amount values.
Excess Withdrawals. We reduce guaranteed minimum amounts for future withdrawals if you take withdrawals for more than the amount guaranteed under the terms of the Rider. Your future Guaranteed Withdrawal Amount could be significantly reduced if your Contract Value declines due to poor investment performance to an amount that is less than your Benefit Base, and you then take Excess Withdrawals.
An Excess Withdrawal under a Principal Returns Rider is a withdrawal (including applicable withdrawal charges) you take that, together with all other withdrawals (including any applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Guaranteed Withdrawal Amount at the time of the withdrawal.
We do not consider withdrawals under our Life Expectancy Distribution program to result in Excess Withdrawals under the Rider unless you take additional withdrawals outside of that program.
Impact of Withdrawals. We decrease the Benefit Base each time you make a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we decrease the Benefit Base by the amount of the withdrawals. If an Excess Withdrawal is the result of your total withdrawals during a Contract Year exceeding the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we automatically recalculate, and in most cases reduce, the Benefit Base to equal the lesser of:
•  the Contract Value immediately after the withdrawal; or
•  the Benefit Base immediately prior to the withdrawal minus the amount of the withdrawal.
Each time we recalculate the Benefit Base, we also recalculate, and in most cases reduce, the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount equals the lesser of:
•  the Guaranteed Withdrawal Amount prior to the withdrawal; or
•  8% of the greater of: (a) the Contract Value after the withdrawal; or (b) the new Benefit Base value.
We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year.
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If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we recalculate amounts we guarantee for future withdrawals. We may recalculate and reduce the Benefit Base and Guaranteed Withdrawal Amount by amounts that exceed the amount of your withdrawals. A recalculation also may reduce the total amount guaranteed to an amount less than the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount values.
Pre-Authorized Withdrawals – The Income Made Easy Program. If you purchased a Contract with a Principal Returns Rider, you may be able to pre-authorize periodic withdrawals to receive amounts guaranteed under the Rider. We offer our Income Made Easy Program for Contracts with the Rider to provide automatic payment of withdrawals. The full allowable amount is based on the Guaranteed Withdrawal Amount (see “Pre-Authorized Withdrawals – The Income Made Easy Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Pre-Authorized Withdrawals – Life Expectancy Distribution Program. The Life Expectancy Distribution Program is available with the Principal Returns Rider (see “Pre-Authorized Withdrawals – Life Expectancy Distribution Program” under “General Information about Guaranteed Minimum Withdrawal Benefit Riders” in this Appendix).
Each withdrawal under our automatic Life Expectancy Distribution Program reduces your Contract Value and Benefit Base. We do not allow any further withdrawals under the program if both the Contract Value and the Benefit Base are depleted to zero.
If you begin taking Life Expectancy Distributions during the first 10 Contract Years, you no longer qualify for the Rider’s Accumulation Benefit at your 10th Contract Anniversary.
Settlement Phase. The Settlement Phase under the Rider begins if:
•  the Contract Value reduces to zero at any time during a Contract Year, and
•  there were no Excess Withdrawals during that Contract Year, and
•  the Benefit Base is still greater than zero at the time.
Settlement Payments during Principal Returns Settlement Phase. At the beginning of the Principal Returns Settlement Phase, you may choose settlement payments that total an amount no greater than the Guaranteed Withdrawal Amount, or Life Expectancy Distributions if applicable, to be paid to you automatically each Contract Year until the Benefit Base depletes to zero (see “Life Expectancy Distribution Program”). If the Guaranteed Withdrawal Amount or the Life Expectancy Distribution, if applicable, for a Contract Year exceeds the Benefit Base, however, then the settlement payment for that Contract Year will be limited to the Benefit Base. The settlement payments will be paid no less frequently than annually. If any Owner dies during the Settlement Phase, remaining settlement payments will be paid to the Beneficiary and are subject to the distribution provisions described in “Accumulation Period Provisions – Death Benefit During Accumulation Period” section of the Prospectus.
This provision is also applicable if the Beneficiary does not take the death benefit as a lump sum under our current administrative procedures and the Principal Returns Rider continues (as described in “Impact of Death Benefits” below) and death benefit distributions deplete the death benefit to zero. When this occurs, settlement payments made in the Settlement Phase are subject to the distribution provisions of the “Death Benefit Before Maturity Date” section of the Contract, described in the “Accumulation Period Provisions – Death Benefit During Accumulation Period” provision of the Prospectus.
Impact of Death Benefits. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, the Principal Returns Rider will end if the Beneficiary takes the death benefit as a lump sum under our current administrative procedures.
Continuation of Principal Returns. If the Beneficiary elects not to take the death benefit as a lump sum, then the Principal Returns Rider:
•  Continues if the Benefit Base is greater than zero.
•  Steps up the Benefit Base to equal the death benefit if the death benefit on the date of determination is greater than the Benefit Base.
•  Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Benefit Base is still greater than zero. (Death benefit distributions will be treated as withdrawals. Some methods of death benefit distribution may result in distribution amounts that exceed the Guaranteed Withdrawal Amount and the Life
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  Expectancy Distribution amount. In such cases, we may recalculate and reduce the Benefit Base, and reduce the Guaranteed Minimum Withdrawal Benefit provided under this Rider).
•  Continues to impose the Rider fee.
•  Continues to be eligible for any remaining Step-Ups, but we will change the date we determine and apply these benefits to the future anniversaries of the date we determine the initial death benefit. Remaining eligible Step-Up Dates will also be measured beginning from the death benefit determination date.
•  Ends any remaining Step-Ups on the Age 95 Contract Anniversary date based on the date the deceased owner would have turned age 95, unless the Beneficiary is older than the deceased owner. If so, any remaining Step-Ups end on the Age 95 Contract Anniversary date based on the birthdate of the Beneficiary.
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and the Principal Returns Rider continues, we will determine the annual Rider fee (and the Adjusted Benefit Base) based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date.
Death benefits during the Settlement Phase. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Returns Rider. If the Beneficiary is the deceased Owner’s Spouse, the surviving Spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. An individual Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner’s death. Otherwise, the entire interest must be distributed within five years of the Owner’s death.
Termination of Rider
You may not terminate the Principal Returns Rider once it is in effect. The Rider terminates automatically, however, upon the earliest of:
•  the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; or
•  the date the Benefit Base and the Contract Value both deplete to zero; or
•  the date an Annuity Option under the Contract begins; or
•  the date a new guaranteed minimum withdrawal benefit Rider becomes effective under any Rider exchange program that we may make available; or
•  termination of the Contract.
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Appendix D: Optional Guaranteed Minimum Income Benefits
This Appendix provides a general description of the optional guaranteed minimum income benefit Riders that may have been available at the time you purchased a Wealthmark Contract. If you purchased an optional guaranteed minimum income benefit Rider, you will pay the charge shown in the Fee Tables for that benefit as long as it is in effect.
You should carefully review your Contract, including any attached Riders, for complete information on benefits, conditions and limitations of any guaranteed minimum income benefit Riders applicable to your Contract. You should also carefully review “VII. Federal Tax Matters” for information about optional benefit Riders.
The following is a list of the various optional guaranteed minimum income benefits that may have been available to you at issue. Not all Riders were available at the same time or in all states.
John Hancock USA
Guaranteed Retirement Income Benefit* II
Guaranteed Retirement Income Benefit* III
John Hancock New York
Guaranteed Retirement Income Benefit* II
* May also, in marketing and other materials, be referred to as “Guaranteed Retirement Income Programs.”
The optional Guaranteed Retirement Income Benefits guarantee a minimum lifetime fixed income benefit in the form of fixed monthly annuity payments. The amount of these payments is determined by applying an Income Base to the Monthly Income Factors described in the Guaranteed Retirement Income Benefit Rider. If the Guaranteed Retirement Income Benefit is exercised and the monthly annuity payments available under the Contract are greater than the monthly annuity payments provided by Guaranteed Retirement Income Benefit, we will pay the monthly annuity payments available under the Contract. The Guaranteed Retirement Income Benefit Riders were available only at Contract issue. The Riders are irrevocable and may only be terminated as described below.
John Hancock USA
Availability of Guaranteed Retirement Income Benefits
John Hancock USA offered two versions of the Guaranteed Retirement Income Benefit. Guaranteed Retirement Income Benefit II was available for Contracts issued between July 2001 and May 2003 (beginning and end dates may vary by state). Guaranteed Retirement Income Benefit III was available for Contracts issued between May 2003 and May 2004 (beginning and end dates may vary by state). We describe differences between Guaranteed Retirement Income Benefit II and Guaranteed Retirement Income Benefit III below.
Conditions of Exercise. The Guaranteed Retirement Income Benefit may be exercised subject to the following conditions:
•  may not be exercised until the 10th Contract Anniversary and then must be exercised within 30 days immediately following the 10th Contract Anniversary or a subsequent Contract Anniversary; and
•  must be exercised by the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the 10th Contract Anniversary, if later.
Guaranteed Retirement Income Benefit II and Guaranteed Retirement Income Benefit III
The Income Base applied in determining the amount of Guaranteed Retirement Income Benefit annuity payments is the greater of (i) the Growth Factor Income Base or (ii) the Step-Up Income Base. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply.
The Income Base is used solely for purposes of calculating the Guaranteed Retirement Income Benefit monthly annuity payments and does not provide a Contract Value or guarantee performance of any Investment Option.
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Growth Factor Income Base:
The Growth Factor Income Base is equal to (a) less (b), where:
(a)  is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and
(b)  is the sum of Income Base reductions (defined below) in connection with withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs.
Guaranteed Retirement Income Benefit II Growth Factor: The growth factor for Guaranteed Retirement Income Benefit II is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Guaranteed Retirement Income Benefit III Growth Factor: The growth factor is 5% per annum if the oldest Annuitant is 75 or younger at issue, and 3% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Step-Up Income Base: The Step-Up Income Base is equal to the greatest anniversary value after the effective date of the Guaranteed Retirement Income Benefit and prior to the oldest Annuitant’s turning age 81. The anniversary value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less any Income Base reductions (defined below) in connection with withdrawals since the last day of the Contract Year.
Guaranteed Retirement Income Benefit II Income Base Reductions: Withdrawals will reduce the Growth Factor Income Base and the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Growth Factor Income Base or the Step-Up Income Base, as appropriate, immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Guaranteed Retirement Income Benefit III Income Base Reductions: If total withdrawals taken during a Contract Year are no greater than the Annual Withdrawal Limit then the Withdrawal Reduction reduces the Growth Factor Income Base on the next Contract Anniversary by the dollar amount of the withdrawal. If total withdrawals taken during a Contract Year are greater than the Annual Withdrawal Limit, then the Withdrawal Reduction will instead reduce the Growth Factor Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Growth Factor Income Base immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal. In any Contract Year, the Annual Withdrawal Limit is determined by multiplying the Growth Factor Income Base on the previous Contract Anniversary by the growth factor indicated below.
Withdrawals will reduce the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Step-Up Income Base immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Monthly Income Factors: The Income Base may be applied to Monthly Income Factors to purchase a guaranteed lifetime income under the following Annuity Options which are described in this Prospectus (see “V. Description of the Contract – Pay-out Period Provisions – Annuity Options”).
Life Annuity with a 10-Year Period Certain – Available for both Guaranteed Retirement Income Benefit II and Guaranteed Retirement Income Benefit III.
Joint and Survivor Life Annuity with a 20-Year Period Certain – Available for Contracts with Guaranteed Retirement Income Benefit II issued prior to January 27, 2003 (availability may vary by state).
Joint and Survivor Life Annuity with a 10-Year Period Certain - Available for Guaranteed Retirement Income Benefit III and for Contracts issued with Guaranteed Retirement Income Benefit II on or after January 27, 2003 (availability may vary by state).
The Monthly Income Factors are described in the Guaranteed Retirement Income Benefit Rider. When you exercise the Guaranteed Retirement Income Benefit, actual income will be based on the greater of (i) your Income Base at Monthly Income Factors, or (ii) your Contract Value at current annuity payment rates. (The Income Base cannot be applied to current annuitization rates.)
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If your Contract has been issued with a Guaranteed Retirement Income Benefit Rider, the Annuitant may only be changed to an individual that is the same age or younger than the oldest current Annuitant. A change of Annuitant will not affect the Income Base calculation.
Guaranteed Retirement Income Benefit Fee
The risk assumed by us associated with a Guaranteed Retirement Income Benefit is that annuity benefits payable under a Guaranteed Retirement Income Benefit are greater than annuity benefits that would have been payable if you had selected another annuity benefit permitted by the Contract. To compensate us for this risk, we charge an annual fee (the “Guaranteed Retirement Income Benefit Fee”). On or before the Maturity Date, the Guaranteed Retirement Income Benefit Fee is deducted on each Contract Anniversary. The amount of the Guaranteed Retirement Income Benefit Fee is equal to the percentage from the table below multiplied by the Income Base in effect on that Contract Anniversary. The Guaranteed Retirement Income Benefit Fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
Guaranteed Retirement Income Benefit Rider Annual Fee
Guaranteed Retirement Income Benefit II 0.45%
Guaranteed Retirement Income Benefit III 0.50%
If there is a full withdrawal of Contract Value on any date other than the Contract Anniversary, we will deduct a pro-rata portion of the Guaranteed Retirement Income Benefit Fee from the amount paid upon withdrawal. In the case of a full withdrawal, the Guaranteed Retirement Income Benefit Fee will be multiplied by the Income Base immediately prior to withdrawal. The Guaranteed Retirement Income Benefit Fee will not be deducted during the Pay-out Period. For purposes of determining the Guaranteed Retirement Income Benefit Fee, the commencement of annuity payments will be treated as a full withdrawal.
Termination of Guaranteed Retirement Income Benefit
A Guaranteed Retirement Income Benefit will terminate upon the earliest to occur of:
•  the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the tenth Contract Anniversary, if later;
•  the termination of the Contract for any reason; or
•  the exercise of the Guaranteed Retirement Income Benefit.
Qualified Plans
The use of a Guaranteed Retirement Income Benefit is limited in connection with its use under Qualified Plans, including an IRA, because of the minimum distribution requirements imposed by federal tax law on these plans. In general, if a Guaranteed Retirement Income Benefit is not exercised under a Qualified Plan while you are alive, your Beneficiary may be unable to exercise the benefit under a Guaranteed Retirement Income Benefit. Changes in federal tax laws may also limit a Beneficiary’s ability to receive benefits under the Guaranteed Retirement Income Program.
Hence, you should consider that because (a) a Guaranteed Retirement Income Benefit may not be exercised until the 10th Contract Anniversary after its election and (b) the election of a Guaranteed Retirement Income Benefit is irrevocable, there can be circumstances under a Qualified Plan in which a Guaranteed Retirement Income Benefit fee (discussed above) will be imposed, even though a Guaranteed Retirement Income Benefit may not be exercised because of the restrictions imposed by the minimum distribution requirements. Please consult your own qualified tax professional.
In addition, the presence of an optional benefit, such as a Guaranteed Retirement Income Benefit, could affect the amount of the required minimum distribution that must be made under your Contract.
In order to comply with applicable federal income tax laws, in some circumstances, we will shorten the guarantee period under an Annuity Option so that it does not exceed the life expectancy of the Annuitant, or the joint life expectancy of the joint Annuitants, depending on the Annuity Option chosen. Once the guarantee period is shortened upon exercise of Guaranteed Retirement Income Benefit, it will not be further reduced. The guarantee period will never be increased based on the life expectancy of the Annuitant or at any other time or due to any other event.
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Guaranteed Retirement Income Benefits do not provide Contract Value or guarantee performance of any Investment Option. Because this benefit is based on conservative actuarial factors, the level of lifetime income that it guarantees may often be less than the level that would be provided by application of Contract Value at current annuity factors. Therefore, Guaranteed Retirement Income Benefits should be regarded as a safety net. As described above under “Income Base,” withdrawals will reduce the Guaranteed Retirement Income Benefit.
John Hancock New York
Availability of Guaranteed Retirement Income Benefit
John Hancock New York offered Guaranteed Retirement Income Benefit II for Contracts issued between December 2, 2002 and June 11, 2004.
Conditions of Exercise. The Guaranteed Retirement Income Benefit may be exercised subject to the following conditions:
•  may not be exercised until the 10th Contract Anniversary and then must be exercised within 30 days immediately following the 10th Contract Anniversary or a subsequent Contract Anniversary; and
•  must be exercised by the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the 10th Contract Anniversary, if later.
Income Base
The Income Base applied in determining the amount of Guaranteed Retirement Income Benefit annuity payments is the greater of (i) the Growth Factor Income Base (Guaranteed Retirement Income Benefit II only) or (ii) the Step-Up Income Base. The Income Base is reduced for any withdrawal charge remaining on the date of exercise of the Guaranteed Retirement Income Benefit, and we reserve the right to reduce the Income Base by any premium taxes that may apply.
The Income Base is used solely for purposes of calculating the Guaranteed Retirement Income Benefit monthly annuity payments and does not provide a Contract Value or guarantee performance of any Investment Option.
Growth Factor Income Base (Guaranteed Retirement Income Benefit II only): The Growth Factor Income Base is equal to (a) less (b), where:
(a)  is the sum of all Purchase Payments made, accumulated at the growth factor indicated below starting on the date each payment is allocated to the Contract; and
(b)  is the sum of Income Base reductions (defined below) in connection with withdrawals taken, accumulated at the growth factor indicated below starting on the date each deduction occurs.
Growth Factor: The growth factor for Guaranteed Retirement Income Benefit II is 6% per annum if the oldest Annuitant is 75 or younger at issue, and 4% per annum if the oldest Annuitant is 76 or older at issue. The growth factor is reduced to 0% once the oldest Annuitant has turned age 85.
Step-Up Income Base: The Step-Up Income Base is equal to the greatest anniversary value after the effective date of the Guaranteed Retirement Income Benefit and prior to the oldest Annuitant’s turning age 81. The anniversary value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less any Income Base reductions (defined below) in connection with withdrawals since the last day of the Contract Year.
Income Base Reductions: Withdrawals will reduce the Growth Factor Income Base and the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Growth Factor Income Base or the Step-Up Income Base, as appropriate, immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Withdrawals will reduce the Step-Up Income Base on a pro rata basis, equal to (i) multiplied by (ii) where: (i) is equal to the Step-Up Income Base immediately prior to the withdrawal and (ii) is equal to the withdrawal amount divided by the Contract Value prior to the withdrawal.
Monthly Income Factors: The Income Base may be applied to Monthly Income Factors to purchase a guaranteed lifetime income under the following Annuity Options which are described in this Prospectus (see “V. Description of the Contract – Pay-out Period Provisions – Annuity Options”):
•  Life Annuity with a 10-Year Period Certain;
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•  Joint and Survivor Life Annuity with a 20-Year Period Certain.
The Monthly Income Factors are described in the Guaranteed Retirement Income Benefit Rider. When you exercise the Guaranteed Retirement Income Benefit, actual income will be based on the greater of (i) your Income Base at Monthly Income Factors, or (ii) your Contract Value at current annuity payment rates. (The Income Base cannot be applied to current annuitization rates.)
If your Contract has been issued with a Guaranteed Retirement Income Benefit Rider, the Annuitant may only be changed to an individual that is the same age or younger than the oldest current Annuitant. A change of Annuitant will not affect the Income Base calculation.
Guaranteed Retirement Income Benefit Fee
The risk assumed by us associated with a Guaranteed Retirement Income Benefit is that annuity benefits payable under a Guaranteed Retirement Income Benefit are greater than annuity benefits that would have been payable if you had selected another annuity benefit permitted by the Contract. To compensate us for this risk, we charge an annual fee (the “Guaranteed Retirement Income Benefit Fee”). On or before the Maturity Date, the Guaranteed Retirement Income Benefit Fee is deducted on each Contract Anniversary. The amount of the Guaranteed Retirement Income Benefit Fee is equal to the percentage from the table below multiplied by the Income Base in effect on that Contract Anniversary. The Guaranteed Retirement Income Benefit Fee is withdrawn from each Investment Option in the same proportion that the value of the Investment Account of each Investment Option bears to the Contract Value.
Guaranteed Retirement Income Benefit Rider Annual Fee
Guaranteed Retirement Income Benefit II 0.45%
If there is a full withdrawal of Contract Value on any date other than the Contract Anniversary, we will deduct a pro-rata portion of the Guaranteed Retirement Income Benefit Fee from the amount paid upon withdrawal. In the case of a full withdrawal, the Guaranteed Retirement Income Benefit Fee will be multiplied by the Income Base immediately prior to withdrawal. The Guaranteed Retirement Income Benefit Fee will not be deducted during the Pay-out Period. For purposes of determining the Guaranteed Retirement Income Benefit Fee, the commencement of annuity payments will be treated as a full withdrawal.
Termination of Guaranteed Retirement Income Benefit
The Guaranteed Retirement Income Benefit will terminate upon the earliest to occur of:
•  the Contract Anniversary immediately prior to the oldest Annuitant’s 85th birthday or the tenth Contract Anniversary, if later;
•  the termination of the Contract for any reason; or
•  the exercise of the Guaranteed Retirement Income Benefit.
Qualified Plans
The use of the Guaranteed Retirement Income Benefit is limited in connection with its use under Qualified Plans, including an IRA, because of the minimum distribution requirements imposed by federal tax law on these plans. In general, if the Guaranteed Retirement Income Benefit is not exercised under a Qualified Plan while you are alive, your Beneficiary may be unable to exercise the benefit under the Guaranteed Retirement Income Benefit. Changes in federal tax laws may also limit a Beneficiary’s ability to receive benefits under the Guaranteed Retirement Income Program.
You should consider that because (a) the Guaranteed Retirement Income Benefit may not be exercised until the 10th Contract Anniversary after its election and (b) the election of the Guaranteed Retirement Income Benefit is irrevocable, there can be circumstances under a Qualified Plan in which a Guaranteed Retirement Income Benefit fee (discussed above) will be imposed, even though the Guaranteed Retirement Income Benefit may not be exercised because of the restrictions imposed by the minimum distribution requirements. Please consult your own qualified tax professional.
In addition, the presence of an optional benefit, such as a Guaranteed Retirement Income Benefit, could affect the amount of the required minimum distribution that must be made under your Contract.
In order to comply with applicable federal income tax laws, in some circumstances, we will shorten the guarantee period under an Annuity Option so that it does not exceed the life expectancy of the Annuitant, or the joint life expectancy of the
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joint Annuitants, depending on the Annuity Option chosen. Once the guarantee period is shortened upon exercise of a Guaranteed Retirement Income Benefit, it will not be further reduced. The guarantee period will never be increased based on the life expectancy of the Annuitant or at any other time or due to any other event.
Guaranteed Retirement Income Benefits do not provide Contract Value or guarantee performance of any Investment Option. Because this benefit is based on conservative actuarial factors, the level of lifetime income that it guarantees may often be less than the level that would be provided by application of Contract Value at current annuity factors. Therefore, Guaranteed Retirement Income Benefits should be regarded as a safety net. As described above under “Income Base,” withdrawals will reduce the Guaranteed Retirement Income Benefit.
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Appendix U: Tables of Accumulation Unit Values
The following table provides information about Variable Investment Options available under the Contracts described in this Prospectus. We present this information in columns that compare the value of various classes of accumulation units for each Variable Investment Option during the periods shown.
We use accumulation units to measure the value of your investment in a particular Variable Investment Option. Each accumulation unit reflects the value of underlying shares of a particular Portfolio (including dividends and distributions made by that Portfolio), as well as the charges we deduct on a daily basis for Separate Account Annual Expenses (see “III. Fee Tables” for additional information on these charges).
The table contains information on different classes of accumulation units because we deduct different levels of daily charges. In particular, the table shows accumulation units reflecting the daily charges for:
•  Wealthmark Contracts with no optional benefit Riders;
•  Wealthmark Contracts with the Enhanced Earnings optional benefit Rider; and
•  Wealthmark Contracts with the Payment Enhancement optional benefit Rider.
Please note that fees for the Guaranteed Retirement Income Program II, Guaranteed Retirement Income Program III, Accelerated Beneficiary Protection Death Benefit and the GMWB Riders are deducted from Contract Value and, therefore, are not reflected in the accumulation unit values.
U-1

Table of Contents

 

Wealthmark ALL

 

John Hancock Life Insurance Company (U.S.A.) Separate Account H

John Hancock Life Insurance Company of New York Separate Account A

Accumulation Unit Values- Wealthmark Variable Annuity

 

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
500 Index Trust (formerly 500 Index Trust B) - NAV Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 22.127 23.534 19.635 17.835 17.881 15.986 12.279 10.754 10.705 9.452
Value at End of Year 28.618 22.127 23.534 19.635 17.835 17.881 15.986 12.279 10.754 10.705
Wealthmark No. of Units 451,597 546,761 677,210 771,482 933,615 1,129,264 1,469,596 1,884,181 2,242,696 2,597,793
NY Wealthmark No. of Units 61,370 70,002 85,386 99,432 104,422 136,304 177,445 232,630 258,634 290,018
Wealthmark Contracts with EER                    
Value at Start of Year 21.617 23.038 19.259 17.529 17.609 15.774 12.140 10.654 10.627 9.401
Value at End of Year 27.902 21.617 23.038 19.259 17.529 17.609 15.774 12.140 10.654 10.627
No. of Units 50,326 59,802 68,839 100,234 113,111 118,631 164,210 195,885 211,814 249,107
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 21.242 22.672 18.982 17.302 17.407 15.617 12.038 10.580 10.569 9.364
Value at End of Year 27.377 21.242 22.672 18.982 17.302 17.407 15.617 12.038 10.580 10.569
No. of Units 4,154 4,170 16,065 16,078 15,494 14,810 17,021 16,738 24,007 23,630
Active Bond Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 19.084 19.511 18.910 18.397 18.682 17.774 18.017 16.690 16.012 14.281
Value at End of Year 20.517 19.084 19.511 18.910 18.397 18.682 17.774 18.017 16.690 16.012
Wealthmark No. of Units 182,747 201,288 242,335 280,107 315,495 375,896 455,572 553,865 646,738 885,812
NY Wealthmark No. of Units 25,603 30,181 31,992 34,950 38,857 43,011 53,199 65,908 71,144 83,867
Wealthmark Contracts with EER                    
Value at Start of Year 18.569 19.022 18.473 18.009 18.324 17.468 17.742 16.469 15.832 14.148
Value at End of Year 19.924 18.569 19.022 18.473 18.009 18.324 17.468 17.742 16.469 15.832
No. of Units 28,543 29,474 35,438 47,442 48,444 55,447 65,998 74,575 75,777 91,157
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 18.192 18.664 18.153 17.722 18.060 17.242 17.539 16.305 15.697 14.049
Value at End of Year 19.490 18.192 18.664 18.153 17.722 18.060 17.242 17.539 16.305 15.697
No. of Units 6,220 7,362 11,844 11,911 11,589 11,405 12,495 12,128 13,854 14,637
All Cap Core Trust (merged into Total Stock Market Index Trust eff 04-28-2017) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — 28.391 26.084 25.842 23.942 18.113 15.784 15.984 14.368
Value at End of Year — — — 28.391 26.084 25.842 23.942 18.113 15.784 15.984
Wealthmark No. of Units — — — 44,139 44,801 53,166 77,283 122,059 132,070 149,215
NY Wealthmark No. of Units — — — 10,365 10,540 10,725 14,937 17,427 18,098 18,765
Wealthmark Contracts with EER                    
Value at Start of Year — — 27.572 25.382 25.196 23.391 17.731 15.483 15.710 14.150
Value at End of Year — — — 27.572 25.382 25.196 23.391 17.731 15.483 15.710
No. of Units — — — 18,652 17,977 2,994 22,630 23,889 24,662 26,297
American Asset Allocation Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 24.644 26.325 23.075 21.485 21.591 20.874 17.192 15.097 15.180 13.756
Value at End of Year 29.324 24.644 26.325 23.075 21.485 21.591 20.874 17.192 15.097 15.180
Wealthmark No. of Units 84,830 94,093 96,144 102,879 102,850 98,537 91,483 119,244 155,379 167,304
NY Wealthmark No. of Units 12,417 12,759 17,842 16,230 16,881 18,031 17,273 17,738 18,174 19,414
Wealthmark Contracts with EER                    
Value at Start of Year 25.749 27.561 24.207 22.584 22.741 22.030 18.180 15.997 16.116 14.634
Value at End of Year 30.578 25.749 27.561 24.207 22.584 22.741 22.030 18.180 15.997 16.116
No. of Units 6,747 10,833 11,199 13,031 13,877 17,566 23,684 15,430 20,586 18,080
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 25.302 27.124 23.858 22.292 22.480 21.810 18.026 15.885 16.028 14.576
Value at End of Year 30.002 25.302 27.124 23.858 22.292 22.480 21.810 18.026 15.885 16.028
No. of Units 198 318 326 334 343 352 593 607 622 639

U- 2

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
American Bond Trust (merged into Bond Trust eff 10-28-2011) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits  
Value at Start of Year — — — — — — — — — 12.967
Value at End of Year — — — — — — — — — 13.550
Wealthmark No. of Units — — — — — — — — — 54,438
NY Wealthmark No. of Units — — — — — — — — — 2,033
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — — — 12.853
Value at End of Year — — — — — — — — — 13.403
No. of Units — — — — — — — — — 15,602
American Global Growth Trust - Series II Shares (units first credited 11-12-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229 11.155
Value at End of Year 26.513 19.967 22.366 17.323 17.550 16.712 16.645 13.143 10.926 12.229
Wealthmark No. of Units 43,520 43,269 57,724 61,990 73,343 79,692 103,165 91,880 98,873 94,819
NY Wealthmark No. of Units 3,628 4,004 3,780 2,893 2,965 3,103 7,490 5,576 4,994 5,017
Wealthmark Contracts with EER                    
Value at Start of Year 19.506 21.893 16.991 17.248 16.457 16.424 12.995 10.824 12.140 11.095
Value at End of Year 25.849 19.506 21.893 16.991 17.248 16.457 16.424 12.995 10.824 12.140
No. of Units 1,880 2,416 3,864 2,815 2,837 17,679 21,881 43,964 41,610 42,491
American Global Small Capitalization Trust (merged into American Global Growth Trust eff 04-26-2013) - Series II Shares (units first credited 11-12-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 10.737 9.268 11.694 9.732
Value at End of Year — — — — — — — 10.737 9.268 11.694
Wealthmark No. of Units — — — — — — — 54,847 55,155 66,748
NY Wealthmark No. of Units — — — — — — — 3,814 5,677 9,863
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — 10.616 9.182 11.608 9.680
Value at End of Year — — — — — — — 10.616 9.182 11.608
No. of Units — — — — — — — 3,065 3,634 3,089
American Growth Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025 17.190
Value at End of Year 52.739 41.079 41.959 33.310 30.981 29.542 27.749 21.734 18.801 20.025
Wealthmark No. of Units 60,486 68,309 85,678 100,682 112,797 130,813 158,568 247,023 271,190 290,602
NY Wealthmark No. of Units 2,123 2,136 — — 1,171 1,178 1,773 2,309 2,435 4,686
Wealthmark Contracts with EER                    
Value at Start of Year 39.811 40.747 32.412 30.206 28.861 27.164 21.318 18.479 19.721 16.962
Value at End of Year 51.010 39.811 40.747 32.412 30.206 28.861 27.164 21.318 18.479 19.721
No. of Units 3,610 3,805 3,499 3,672 3,732 4,128 7,681 11,832 11,846 15,401
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 38.887 39.860 31.754 29.638 28.360 26.733 21.011 18.240 19.496 16.793
Value at End of Year 49.751 38.887 39.860 31.754 29.638 28.360 26.733 21.011 18.240 19.496
No. of Units 193 1,124 1,133 1,140 1,149 1,158 1,392 1,406 4,976 4,177
American Growth-Income Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 34.543 35.845 29.821 27.230 27.350 25.188 19.228 16.675 17.299 15.827
Value at End of Year 42.798 34.543 35.845 29.821 27.230 27.350 25.188 19.228 16.675 17.299
Wealthmark No. of Units 47,553 52,417 67,167 73,233 73,712 83,676 103,542 127,062 136,480 164,342
NY Wealthmark No. of Units 778 553 1,160 1,350 1,653 761 357 1,314 1,152 2,017
Wealthmark Contracts with EER                    
Value at Start of Year 33.478 34.810 29.018 26.549 26.720 24.656 18.860 16.389 17.036 15.617
Value at End of Year 41.395 33.478 34.810 29.018 26.549 26.720 24.656 18.860 16.389 17.036
No. of Units 2,283 2,318 2,447 2,980 3,008 3,959 5,706 7,911 8,807 7,936

U- 3

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
American High-Income Bond Trust (merged into High Yield Trust eff 04-26-2013) - Series II Shares (units first credited 11-12-2007)
Contracts with no Optional Benefits  
Value at Start of Year — — — — — — — 13.747 13.758 12.182
Value at End of Year — — — — — — — 15.314 13.747 13.758
Wealthmark No. of Units — — — — — — — 54,626 55,585 56,822
NY Wealthmark No. of Units — — — — — — — 2,951 1,920 2,892
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — 13.619 13.657 12.117
Value at End of Year — — — — — — — 15.141 13.619 13.657
No. of Units — — — — — — — 4,542 4,602 148
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — 13.524 13.582 12.069
Value at End of Year — — — — — — — 15.013 13.524 13.582
No. of Units — — — — — — — 2,536 2,695 12,033
American International Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 31.010 36.396 28.067 27.642 29.500 30.889 25.891 22.393 26.522 25.212
Value at End of Year 37.388 31.010 36.396 28.067 27.642 29.500 30.889 25.891 22.393 26.522
Wealthmark No. of Units 28,373 34,279 54,108 54,304 60,088 62,396 75,350 81,386 91,466 95,209
NY Wealthmark No. of Units 403 406 999 636 646 658 1,445 2,354 3,688 4,778
Wealthmark Contracts with EER                    
Value at Start of Year 30.053 35.344 27.311 26.950 28.820 30.237 25.395 22.009 26.119 24.878
Value at End of Year 36.163 30.053 35.344 27.311 26.950 28.820 30.237 25.395 22.009 26.119
No. of Units 2,089 2,097 2,081 7,439 7,712 8,744 9,956 10,270 11,318 5,355
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 29.355 34.575 26.757 26.443 28.320 29.757 25.030 21.725 25.820 24.631
Value at End of Year 35.270 29.355 34.575 26.757 26.443 28.320 29.757 25.030 21.725 25.820
No. of Units 147 235 241 247 254 261 439 449 460 472
American New World Trust (merged into Emerging Markets Value Trust eff 10-27-2017) - Series II Shares (units first credited 11-12-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — 13.502 13.068 13.765 15.234 13.950 12.080 14.312 12.385
Value at End of Year — — — 13.502 13.068 13.765 15.234 13.950 12.080 14.312
Wealthmark No. of Units — — — 81,084 85,362 94,289 130,803 153,077 159,664 181,928
NY Wealthmark No. of Units — — — 756 743 731 1,335 4,246 1,902 2,676
Wealthmark Contracts with EER                    
Value at Start of Year — — 13.243 12.843 13.556 15.032 13.793 11.968 14.207 12.319
Value at End of Year — — — 13.243 12.843 13.556 15.032 13.793 11.968 14.207
No. of Units — — — 12,043 12,481 3,359 6,242 6,199 8,350 7,434
Blue Chip Growth Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 39.958 39.816 29.696 29.930 27.387 25.507 18.341 15.751 15.777 13.800
Value at End of Year 51.037 39.958 39.816 29.696 29.930 27.387 25.507 18.341 15.751 15.777
Wealthmark No. of Units 30,488 29,720 74,032 82,754 95,866 94,151 106,771 107,874 117,972 75,380
NY Wealthmark No. of Units 3,500 3,622 2,721 2,929 3,257 445 — 54 86 69
Wealthmark Contracts with EER                    
Value at Start of Year 38.649 38.590 28.839 29.124 26.703 24.920 17.954 15.451 15.507 13.591
Value at End of Year 49.267 38.649 38.590 28.839 29.124 26.703 24.920 17.954 15.451 15.507
No. of Units 5,724 9,125 8,685 14,420 18,344 20,901 20,445 24,149 29,210 16,565
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — 28.534 26.201 24.488 17.670 15.229 15.307 13.436
Value at End of Year — — — — 28.534 26.201 24.488 17.670 15.229 15.307
No. of Units — — — — 1,030 1,125 1,219 1,312 11,966 20,594
Bond Trust - Series II Shares (units first credited 10-28-2011)
Contracts with no Optional Benefits                    
Value at Start of Year 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 12.500 —
Value at End of Year 14.214 13.257 13.530 13.261 13.075 13.254 12.752 13.146 12.564 —
Wealthmark No. of Units 27,934 17,196 20,383 24,760 29,836 42,333 43,900 72,992 61,889 —
NY Wealthmark No. of Units — — — — — — — — 3,955 —

U- 4

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Wealthmark Contracts with EER
Value at Start of Year 13.068 13.364 13.125 12.967 13.170 12.697 13.115 12.559 12.500 —
Value at End of Year 13.983 13.068 13.364 13.125 12.967 13.170 12.697 13.115 12.559 —
No. of Units 31,018 29,168 30,915 15,574 15,340 15,903 15,944 15,707 15,787 —
Capital Appreciation Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 35.603 36.470 27.152 27.888 25.439 23.566 17.431 15.261 15.502 14.090
Value at End of Year 46.570 35.603 36.470 27.152 27.888 25.439 23.566 17.431 15.261 15.502
Wealthmark No. of Units 16,841 11,517 11,763 13,667 19,165 17,488 21,596 25,267 29,732 33,574
NY Wealthmark No. of Units — — — — 375 338 279 868 28 —
Wealthmark Contracts with EER                    
Value at Start of Year 34.438 35.347 26.368 27.137 24.804 23.024 17.064 14.970 15.237 13.876
Value at End of Year 44.955 34.438 35.347 26.368 27.137 24.804 23.024 17.064 14.970 15.237
No. of Units 2,904 3,008 2,401 697 774 523 661 529 863 537
Capital Appreciation Value Trust - Series II Shares (units first credited 06-16-2008)
Contracts with no Optional Benefits                    
Value at Start of Year 24.417 24.737 21.815 20.513 19.793 17.915 14.899 13.198 13.009 11.610
Value at End of Year 29.879 24.417 24.737 21.815 20.513 19.793 17.915 14.899 13.198 13.009
Wealthmark No. of Units 155,304 165,992 165,521 180,596 136,386 118,262 60,924 70,072 74,896 82,334
NY Wealthmark No. of Units 11,125 8,051 10,057 11,643 8,925 1,136 — — — —
Wealthmark Contracts with EER                    
Value at Start of Year — — 21.445 20.206 19.536 17.718 14.765 13.105 12.943 11.574
Value at End of Year — — — 21.445 20.206 19.536 17.718 14.765 13.105 12.943
No. of Units — — — 1,931 1,388 1,436 900 929 4,140 4,209
Core Allocation Plus Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 06-16-2008)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 12.612 11.284 11.738 10.794
Value at End of Year — — — — — — — 12.612 11.284 11.738
Wealthmark No. of Units — — — — — — — 327 403 406
Core Allocation Trust (merged into Lifestyle Growth Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2009)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — — 15.916 16.418 15.037
Value at End of Year — — — — — — — — 15.916 16.418
Wealthmark No. of Units — — — — — — — — 16,784 10,618
NY Wealthmark No. of Units — — — — — — — — 18,588 20,799
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — 16.363 — 15.017
Value at End of Year — — — — — — — — — 16.363
No. of Units — — — — — — — — — 4,387
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — 15.768 12.500 —
Value at End of Year — — — — — — — — 15.768 —
No. of Units — — — — — — — — 3,279 —
Core Balanced Trust (merged into Lifestyle Growth Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2009)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — — 16.522 16.606 12.500
Value at End of Year — — — — — — — — 16.522 16.606
Wealthmark No. of Units — — — — — — — — 16,845 7,438
NY Wealthmark No. of Units — — — — — — — — 74 75
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — 16.434 16.551 12.500
Value at End of Year — — — — — — — — 16.434 16.551
No. of Units — — — — — — — — 5,281 5,018
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — 16.368 16.509 12.500
Value at End of Year — — — — — — — — 16.368 16.509
No. of Units — — — — — — — — 407 452

U- 5

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Core Bond Trust - Series II Shares (units first credited 04-27-2015)
Contracts with no Optional Benefits  
Value at Start of Year 17.220 17.603 17.296 17.105 12.500 — — — — —
Value at End of Year 18.347 17.220 17.603 17.296 17.105 — — — — —
Wealthmark No. of Units 58,136 67,075 72,292 91,152 91,308 — — — — —
NY Wealthmark No. of Units 155 156 157 158 159 — — — — —
Wealthmark Contracts with EER                    
Value at Start of Year 16.756 17.162 16.897 16.744 12.500 — — — — —
Value at End of Year 17.816 16.756 17.162 16.897 16.744 — — — — —
No. of Units 11,927 7,250 10,902 12,549 13,247 — — — — —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 16.415 16.839 16.603 16.478 12.500 — — — — —
Value at End of Year 17.428 16.415 16.839 16.603 16.478 — — — — —
No. of Units 448 717 737 755 775 — — — — —
Core Disciplined Diversification Trust (merged into Lifestyle Growth Trust eff 04-27-2012) - Series II Shares (units first credited 05-01-2009)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — — 16.466 17.034 15.396
Value at End of Year — — — — — — — — 16.466 17.034
Wealthmark No. of Units — — — — — — — — 47,829 31,923
Core Fundamental Holdings Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 05-01-2009)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 17.224 15.764 15.903 14.708
Value at End of Year — — — — — — — 17.224 15.764 15.903
Wealthmark No. of Units — — — — — — — 52,572 58,411 43,246
NY Wealthmark No. of Units — — — — — — — 466 5,699 —
Core Global Diversification Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 05-01-2009)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 17.153 15.409 16.235 15.203
Value at End of Year — — — — — — — 17.153 15.409 16.235
Wealthmark No. of Units — — — — — — — 33,845 34,345 17,555
NY Wealthmark No. of Units — — — — — — — 146 — —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — — — 15.168
Value at End of Year — — — — — — — — — 16.141
No. of Units — — — — — — — — — 2,977
Core Strategy Trust (merged into Lifestyle Growth Portfolio eff 10-27-2017) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — 18.952 17.969 18.291 17.514 14.920 13.478 13.667 12.355
Value at End of Year — — — 18.952 17.969 18.291 17.514 14.920 13.478 13.667
Wealthmark No. of Units — — — 423,013 507,945 580,835 835,395 859,517 972,874 1,138,663
NY Wealthmark No. of Units — — — 52,058 64,360 72,377 86,609 112,122 124,630 139,308
Wealthmark Contracts with EER                    
Value at Start of Year — — 18.544 17.618 17.969 17.240 14.716 13.320 13.534 12.260
Value at End of Year — — — 18.544 17.618 17.969 17.240 14.716 13.320 13.534
No. of Units — — — 25,549 25,772 32,038 45,255 49,512 63,236 67,406
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — 18.244 17.358 17.731 17.037 14.565 13.203 13.435 12.189
Value at End of Year — — — 18.244 17.358 17.731 17.037 14.565 13.203 13.435
No. of Units — — — 11,223 10,419 10,920 10,556 10,306 9,733 11,322
Disciplined Diversification Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 06-16-2008)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 13.653 12.298 12.763 11.435
Value at End of Year — — — — — — — 13.653 12.298 12.763
Wealthmark No. of Units — — — — — — — 519 629 633

U- 6

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Disciplined Value International Trust (formerly International Value Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits  
Value at Start of Year 20.822 24.894 21.599 19.567 21.556 25.026 20.159 17.170 20.011 18.831
Value at End of Year 23.024 20.822 24.894 21.599 19.567 21.556 25.026 20.159 17.170 20.011
Wealthmark No. of Units 114,696 128,590 144,366 175,567 177,305 196,187 228,511 296,654 358,626 420,581
NY Wealthmark No. of Units 9,727 11,490 13,130 18,081 21,432 25,372 39,711 50,274 54,519 60,919
Wealthmark Contracts with EER                    
Value at Start of Year 20.140 24.128 20.975 19.040 21.018 24.450 19.734 16.842 19.668 18.545
Value at End of Year 22.225 20.140 24.128 20.975 19.040 21.018 24.450 19.734 16.842 19.668
No. of Units 20,634 20,780 21,549 29,794 33,331 34,956 37,455 42,000 49,732 49,633
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 19.644 23.568 20.520 18.654 20.623 24.027 19.422 16.600 19.415 18.333
Value at End of Year 21.644 19.644 23.568 20.520 18.654 20.623 24.027 19.422 16.600 19.415
No. of Units 1,410 1,328 1,297 1,364 1,373 1,340 3,262 3,370 5,759 6,502
DWS Equity 500 Index VIP (formerly Deutsche Equity 500 Index VIP) - Class B2 Shares (units first credited 09-16-2005)
Contracts with no Optional Benefits                    
Value at Start of Year 39.853 42.546 35.639 32.501 32.711 29.355 22.648 19.929 19.925 17.680
Value at End of Year 51.339 39.853 42.546 35.639 32.501 32.711 29.355 22.648 19.929 19.925
Wealthmark No. of Units 95,451 114,169 126,434 141,826 175,750 206,363 219,233 289,583 334,780 392,794
NY Wealthmark No. of Units 20,958 29,788 30,422 31,458 38,229 48,743 55,891 74,307 79,644 84,970
Wealthmark Contracts with EER                    
Value at Start of Year 38.579 41.269 34.638 31.652 31.920 28.702 22.189 19.564 19.600 17.426
Value at End of Year 49.599 38.579 41.269 34.638 31.652 31.920 28.702 22.189 19.564 19.600
No. of Units 17,891 22,268 27,807 37,526 38,441 41,869 47,526 53,000 49,050 56,982
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 37.651 40.337 33.906 31.029 31.339 28.222 21.851 19.295 19.359 17.237
Value at End of Year 48.332 37.651 40.337 33.906 31.029 31.339 28.222 21.851 19.295 19.359
No. of Units 779 798 822 843 866 892 915 937 961 988
Emerging Market Value Trust - Series II Shares (units first credited 10-27-2017)
Contracts with no Optional Benefits                    
Value at Start of Year 11.023 12.968 12.500 — — — — — — —
Value at End of Year 12.034 11.023 12.968 — — — — — — —
Wealthmark No. of Units 47,775 65,749 99,993 — — — — — — —
NY Wealthmark No. of Units 5,582 4,982 2,637 — — — — — — —
Wealthmark Contracts with EER                    
Value at Start of Year 10.997 12.963 12.500 — — — — — — —
Value at End of Year 11.981 10.997 12.963 — — — — — — —
No. of Units 3,998 4,027 4,054 — — — — — — —
Equity Income Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 26.217 29.462 25.755 21.964 23.929 22.629 17.687 15.308 15.682 13.839
Value at End of Year 32.619 26.217 29.462 25.755 21.964 23.929 22.629 17.687 15.308 15.682
Wealthmark No. of Units 39,080 41,976 68,687 74,512 82,365 89,503 114,479 127,969 125,516 101,892
NY Wealthmark No. of Units 86 — — — — — 538 569 575 2,415
Wealthmark Contracts with EER                    
Value at Start of Year 25.358 28.555 25.011 21.373 23.331 22.108 17.314 15.015 15.413 13.629
Value at End of Year 31.487 25.358 28.555 25.011 21.373 23.331 22.108 17.314 15.015 15.413
No. of Units 3,352 3,614 4,133 5,967 4,495 4,597 5,506 32,007 32,951 18,015
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — 22.893 21.725 17.040 14.800 15.215 13.474
Value at End of Year — — — — 20.940 22.893 21.725 17.040 14.800 15.215
No. of Units — — — — 988 1,078 1,169 1,258 1,345 9,776
Financial Industries Trust (formerly Financial Services Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 22.504 26.732 23.568 20.049 20.936 19.582 15.219 13.100 14.706 13.315
Value at End of Year 29.184 22.504 26.732 23.568 20.049 20.936 19.582 15.219 13.100 14.706
Wealthmark No. of Units 4,720 14,566 16,149 15,761 24,412 22,903 28,445 23,716 24,799 47,814
NY Wealthmark No. of Units 212 1,041 1,914 2,252 2,815 2,034 2,215 912 — —

U- 7

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Wealthmark Contracts with EER
Value at Start of Year 21.767 25.909 22.888 19.510 20.413 19.131 14.898 12.850 14.453 13.113
Value at End of Year 28.172 21.767 25.909 22.888 19.510 20.413 19.131 14.898 12.850 14.453
No. of Units 1,108 1,563 1,218 1,555 1,615 1,429 1,471 1,496 2,573 1,922
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — — 14.267 12.963
Value at End of Year — — — — — — — — 12.665 14.267
No. of Units — — — — — — — — 4,745 4,745
Franklin Templeton Founding Allocation Trust (merged into Lifestyle Growth PS Series eff 10-21-2016) - Series II Shares (units first credited 05-01-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — 17.904 19.313 19.050 15.545 13.588 14.018 12.872
Value at End of Year — — — — 17.904 19.313 19.050 15.545 13.588 14.018
Wealthmark No. of Units — — — — 41,062 52,148 54,552 69,080 83,744 91,984
NY Wealthmark No. of Units — — — — 726 710 2,119 2,166 2,219 2,356
Wealthmark Contracts with EER                    
Value at Start of Year — — — 18.820 20.342 20.105 16.439 14.398 14.884 13.694
Value at End of Year — — — — 18.820 20.342 20.105 16.439 14.398 14.884
No. of Units — — — — 1,835 1,930 4,073 4,170 7,836 27,323
Fundamental All Cap Core Trust (formerly Optimized All Cap Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 35.479 41.522 33.043 30.993 30.269 28.019 20.962 17.240 17.892 15.219
Value at End of Year 47.646 35.479 41.522 33.043 30.993 30.269 28.019 20.962 17.240 17.892
Wealthmark No. of Units 327,468 387,171 451,125 517,295 609,714 737,768 1,014,306 1,383,388 1,647,582 1,924,303
NY Wealthmark No. of Units 41,816 46,828 50,455 55,856 60,214 84,151 102,073 127,120 138,436 162,782
Wealthmark Contracts with EER                    
Value at Start of Year 34.385 40.323 32.152 30.218 29.571 27.427 20.561 16.944 17.620 15.018
Value at End of Year 46.084 34.385 40.323 32.152 30.218 29.571 27.427 20.561 16.944 17.620
No. of Units 42,488 50,226 56,422 81,990 89,028 101,377 117,448 148,151 172,807 204,140
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 33.586 39.445 31.499 29.649 29.058 26.992 20.265 16.726 17.419 14.869
Value at End of Year 44.945 33.586 39.445 31.499 29.649 29.058 26.992 20.265 16.726 17.419
No. of Units 306 644 640 1,202 1,203 1,218 6,141 7,442 9,591 10,147
Fundamental Holdings Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 11-12-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 12.543 11.310 11.609 10.684
Value at End of Year — — — — — — — 12.543 11.310 11.609
Wealthmark No. of Units — — — — — — — 38,185 38,720 43,440
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — — — 10.639
Value at End of Year — — — — — — — — — 11.537
No. of Units — — — — — — — — — 6,495
Fundamental Large Cap Value Trust (formerly Optimized Value Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 23.815 29.181 25.249 23.287 23.925 21.977 16.870 13.772 13.742 12.320
Value at End of Year 31.841 23.815 29.181 25.249 23.287 23.925 21.977 16.870 13.772 13.742
Wealthmark No. of Units 159,828 263,039 327,234 377,770 440,709 508,458 210,024 276,948 322,732 378,211
NY Wealthmark No. of Units 58,008 63,970 66,060 73,876 79,597 94,150 72,652 84,182 89,591 104,065
Wealthmark Contracts with EER                    
Value at Start of Year 23.126 28.394 24.617 22.749 23.420 21.556 16.580 13.562 13.560 12.181
Value at End of Year 30.859 23.126 28.394 24.617 22.749 23.420 21.556 16.580 13.562 13.560
No. of Units 28,748 31,235 33,109 64,062 69,437 81,613 42,690 32,279 38,634 45,643
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 22.622 27.818 24.154 22.355 23.048 21.245 16.365 13.407 13.425 12.078
Value at End of Year 30.142 22.622 27.818 24.154 22.355 23.048 21.245 16.365 13.407 13.425
No. of Units 353 1,123 1,117 1,201 2,160 2,254 1,211 1,327 1,367 1,501

U- 8

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Fundamental Value Trust (merged into Fundamental Large Cap Value Trust eff 11-07-14) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits  
Value at Start of Year — — — — — 21.966 16.724 14.986 15.827 14.219
Value at End of Year — — — — — — 21.966 16.724 14.986 15.827
Wealthmark No. of Units — — — — — — 462,680 614,907 725,150 817,093
NY Wealthmark No. of Units — — — — — — 52,395 57,632 61,542 74,474
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — 21.461 16.371 14.699 15.556 14.003
Value at End of Year — — — — — — 21.461 16.371 14.699 15.556
No. of Units — — — — — — 52,831 61,209 68,532 104,919
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — 21.089 16.112 14.488 15.356 13.844
Value at End of Year — — — — — — 21.089 16.112 14.488 15.356
No. of Units — — — — — — 2,668 2,926 2,992 11,308
Global Diversification Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 11-12-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — 12.609 11.067 12.008 10.843
Value at End of Year — — — — — — — 12.609 11.067 12.008
Wealthmark No. of Units — — — — — — — 57,792 87,336 87,888
NY Wealthmark No. of Units — — — — — — — 558 573 545
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — 12.480 10.975 11.933 10.797
Value at End of Year — — — — — — — 12.480 10.975 11.933
No. of Units — — — — — — — 1,134 4,233 4,204
Global Trust (formerly Global Equity Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 20.576 24.450 20.900 19.402 21.069 21.982 17.039 14.222 15.378 14.500
Value at End of Year 23.502 20.576 24.450 20.900 19.402 21.069 21.982 17.039 14.222 15.378
Wealthmark No. of Units 121,237 155,800 210,443 238,357 266,685 321,028 324,034 422,752 503,184 561,863
NY Wealthmark No. of Units 14,126 16,377 18,532 20,120 22,595 42,308 59,552 66,684 77,463 81,663
Wealthmark Contracts with EER                    
Value at Start of Year 19.902 23.697 20.297 18.880 20.543 21.476 16.680 13.950 15.115 14.280
Value at End of Year 22.687 19.902 23.697 20.297 18.880 20.543 21.476 16.680 13.950 15.115
No. of Units 16,750 17,583 18,217 23,511 24,783 43,280 47,698 39,221 45,222 52,400
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 19.411 23.147 19.856 18.497 20.157 21.105 16.415 13.750 14.920 14.117
Value at End of Year 22.094 19.411 23.147 19.856 18.497 20.157 21.105 16.415 13.750 14.920
No. of Units 1,155 1,213 1,193 1,200 1,194 1,185 1,321 1,468 3,857 3,904
Health Sciences Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 74.651 75.317 60.017 68.212 61.490 47.403 31.881 24.559 22.560 19.813
Value at End of Year 94.516 74.651 75.317 60.017 68.212 61.490 47.403 31.881 24.559 22.560
Wealthmark No. of Units 18,937 20,400 26,820 29,932 40,530 42,641 51,616 47,836 46,741 44,725
NY Wealthmark No. of Units 172 173 1,520 1,940 1,937 1,671 1,863 1,605 2,523 1,309
Wealthmark Contracts with EER                    
Value at Start of Year 72.207 72.998 58.285 66.376 59.955 46.312 31.209 24.090 22.173 19.513
Value at End of Year 91.239 72.207 72.998 58.285 66.376 59.955 46.312 31.209 24.090 22.173
No. of Units 616 1,316 899 1,128 3,183 3,932 2,173 1,529 1,630 169
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 70.426 71.305 57.018 65.031 58.829 45.510 30.715 23.744 21.888 19.290
Value at End of Year 88.855 70.426 71.305 57.018 65.031 58.829 45.510 30.715 23.744 21.888
No. of Units 161 258 265 272 279 287 483 494 3,805 4,037
High Yield Trust - Series II Shares (units first credited 5-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 26.221 27.458 25.990 22.690 25.160 25.577 23.938 20.423 12.647 18.375
Value at End of Year 29.863 26.221 27.458 25.990 22.690 25.160 25.577 23.938 20.423 12.647
Wealthmark No. of Units 26,261 28,507 35,054 35,916 41,132 77,556 100,127 90,942 85,516 77,664
NY Wealthmark No. of Units 451 453 456 — 1,084 1,478 2,326 869 1,093 1,582

U- 9

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Wealthmark Contracts with EER
Value at Start of Year 25.362 26.612 25.240 22.079 24.532 24.989 23.434 20.033 12.554 18.097
Value at End of Year 28.828 25.362 26.612 25.240 22.079 24.532 24.989 23.434 20.033 12.554
No. of Units 2,606 2,656 5,024 3,708 5,002 5,126 3,299 3,915 1,840 2,679
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — 25.995 24.692 21.632 24.071 24.556 23.063 19.746 12.485 17.891
Value at End of Year — — 25.995 24.692 21.632 24.071 24.556 23.063 19.746 12.485
No. of Units — — 288 775 2,359 2,598 2,832 1,452 1,557 562
International Core Trust (merged into International Value Trust eff 10-21-2016) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — 17.531 18.837 20.522 16.678 14.731 16.561 15.354
Value at End of Year — — — — 17.531 18.837 20.522 16.678 14.731 16.561
Wealthmark No. of Units — — — — 20,214 18,749 19,391 19,198 25,581 32,243
NY Wealthmark No. of Units — — — — 696 — 162 — — —
Wealthmark Contracts with EER                    
Value at Start of Year — — — 17.059 18.366 20.049 16.327 14.449 16.277 15.121
Value at End of Year — — — — 17.059 18.366 20.049 16.327 14.449 16.277
No. of Units — — — — 312 315 350 353 362 4,911
International Equity Index Trust A (merged into International Equity Index Trust B eff 11-02-2012) - Series II Shares (units first credited 05-03-2010)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — — 9.221 10.872 12.500
Value at End of Year — — — — — — — — 9.221 10.872
Wealthmark No. of Units — — — — — — — — 1,093,449 1,191,071
NY Wealthmark No. of Units — — — — — — — — 85,399 93,044
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — 9.135 10.792 12.500
Value at End of Year — — — — — — — — 9.135 10.792
No. of Units — — — — — — — — 128,132 138,853
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — 9.071 10.733 12.500
Value at End of Year — — — — — — — — 9.071 10.733
No. of Units — — — — — — — — 2,594 2,966
International Equity Index Trust (formerly International Equity Index Trust B) - NAV Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 11.587 13.680 10.885 10.570 11.380 12.093 10.707 16.075 19.049 9.893
Value at End of Year 13.876 11.587 13.680 10.885 10.570 11.380 12.093 10.707 16.075 19.049
Wealthmark No. of Units 355,703 366,190 419,715 460,450 499,630 591,545 759,344 942,841 17,462 25,218
NY Wealthmark No. of Units 18,665 22,136 25,884 28,088 32,667 49,466 62,562 72,559 — —
Wealthmark Contracts with EER                    
Value at Start of Year 11.319 13.392 10.677 10.388 11.206 11.933 10.586 15.830 18.797 9.841
Value at End of Year 13.528 11.319 13.392 10.677 10.388 11.206 11.933 10.586 15.830 18.797
No. of Units 61,740 68,301 75,050 89,836 86,814 99,480 115,236 123,354 1,871 1,844
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 11.123 13.179 10.523 10.254 11.078 11.814 10.496 9.801 — 9.801
Value at End of Year 13.274 11.123 13.179 10.523 10.254 11.078 11.814 10.496 — 9.801
No. of Units 64 62 59 64 61 58 1,186 1,149 — —
International Growth Stock Trust (merged into International Equity Index Trust eff 11-01-2019) - Series II Shares (units first credited 11-02-2012)
Contracts with no Optional Benefits                    
Value at Start of Year 14.149 16.805 14.011 14.417 15.000 15.211 12.977 12.500 — —
Value at End of Year — 14.149 16.805 14.011 14.417 15.000 15.211 12.977 — —
Wealthmark No. of Units — 40,897 43,729 40,270 40,316 42,279 42,207 43,180 — —
NY Wealthmark No. of Units — 745 930 183 184 185 186 188 — —
Wealthmark Contracts with EER                    
Value at Start of Year 13.975 16.632 13.894 14.326 14.936 15.176 12.973 12.500 — —
Value at End of Year — 13.975 16.632 13.894 14.326 14.936 15.176 12.973 — —
No. of Units — 1,657 803 20,427 21,352 1,041 1,081 779 — —

U- 10

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
International Opportunities Trust (merged into International Growth Stock Trust eff 11-02-2012) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits  
Value at Start of Year — — — — — — — 13.503 16.326 14.601
Value at End of Year — — — — — — — — 13.503 16.326
Wealthmark No. of Units — — — — — — — — 47,234 60,922
NY Wealthmark No. of Units — — — — — — — — 164 165
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — 13.324 16.142 14.465
Value at End of Year — — — — — — — — 13.324 16.142
No. of Units — — — — — — — — 739 806
International Small Company Trust - Series II Shares (units first credited 11-16-2009)
Contracts with no Optional Benefits                    
Value at Start of Year 17.684 22.495 17.660 17.105 16.305 17.797 14.322 12.206 14.810 12.265
Value at End of Year 21.336 17.684 22.495 17.660 17.105 16.305 17.797 14.322 12.206 14.810
Wealthmark No. of Units 22,739 35,125 36,791 43,340 42,764 44,274 50,346 55,273 56,711 70,661
NY Wealthmark No. of Units 172 173 175 176 190 206 213 216 1,115 2,365
Wealthmark Contracts with EER                    
Value at Start of Year 17.363 22.132 17.410 16.897 16.138 17.651 14.232 12.154 14.777 12.261
Value at End of Year 20.908 17.363 22.132 17.410 16.897 16.138 17.651 14.232 12.154 14.777
No. of Units 31 211 2,109 753 758 763 2,957 2,973 2,992 4,719
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — 16.014 17.542 14.165 12.115 14.752 12.259
Value at End of Year — — — — 16.742 16.014 17.542 14.165 12.115 14.752
No. of Units — — — — 2,075 2,266 2,456 2,643 2,826 13,210
Investment Quality Bond Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 20.088 20.563 19.992 19.479 19.956 19.225 19.901 18.813 17.688 16.717
Value at End of Year 21.621 20.088 20.563 19.992 19.479 19.956 19.225 19.901 18.813 17.688
Wealthmark No. of Units 189,694 243,699 300,672 331,061 385,413 461,013 526,727 598,342 672,962 833,673
NY Wealthmark No. of Units 17,157 21,056 25,308 30,436 32,351 50,316 54,103 63,190 64,706 84,404
Wealthmark Contracts with EER                    
Value at Start of Year 19.430 19.930 19.415 18.954 19.458 18.783 19.482 18.454 17.385 16.464
Value at End of Year 20.871 19.430 19.930 19.415 18.954 19.458 18.783 19.482 18.454 17.385
No. of Units 27,078 27,064 34,089 36,956 40,104 46,755 55,648 72,916 80,685 101,448
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 18.951 19.468 18.993 18.570 19.092 18.458 19.174 18.189 17.161 16.276
Value at End of Year 20.326 18.951 19.468 18.993 18.570 19.092 18.458 19.174 18.189 17.161
No. of Units 231 201 220 195 185 185 10,537 9,220 8,853 10,060
Lifestyle Aggressive Portfolio (formerly Lifestyle Aggressive PS Series) - Series II Shares (units first credited 12-06-2013)
Contracts with no Optional Benefits                    
Value at Start of Year 12.500 12.500 12.500 12.500 12.500 — — — — —
Value at End of Year 18.623 12.500 12.500 12.500 12.500 — — — — —
NY Wealthmark No. of Units 1,793 — — — — — — — — —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 12.500 12.500 12.500 12.500 12.500 — — — — —
Value at End of Year 12.500 12.500 12.500 12.500 12.500 — — — — —
No. of Units — — — — — — — — — —
Lifestyle Balanced Portfolio (formerly Lifestyle Balanced PS Series) - Series II Shares (units first credited 12-06-2013)
Contracts with no Optional Benefits                    
Value at Start of Year 14.082 14.975 13.539 12.967 13.179 12.639 12.580 — — —
Value at End of Year 16.325 14.082 14.975 13.539 12.967 13.179 12.639 — — —
Wealthmark No. of Units 13,393 12,998 39,396 39,801 31,764 32,688 3,390 — — —
NY Wealthmark No. of Units 98,036 104,476 103,765 110,200 143,155 162,304 — — — —
Wealthmark Contracts with EER                    
Value at Start of Year 13.940 12.500 — — — — — — — —
Value at End of Year 16.128 13.940 — — — — — — — —
No. of Units 4,358 4,693 — — — — — — — —

U- 11

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 13.835 14.763 13.395 12.873 13.130 12.636 — — — —
Value at End of Year 15.982 13.835 14.763 13.395 12.873 13.130 12.636 — — —
No. of Units 28,255 60,372 70,096 71,740 79,410 97,496 — — — —
Lifestyle Conservative Portfolio (formerly Lifestyle conservative PS Series) - Series II Shares (units first credited 12-06-2013)
Contracts with no Optional Benefits                    
Value at Start of Year 13.378 13.868 13.175 12.825 13.010 12.516 — — — —
Value at End of Year 14.804 13.378 13.868 13.175 12.825 13.010 12.516 — — —
NY Wealthmark No. of Units 5,361 5,388 6,297 6,327 6,357 7,208 — — — —
Lifestyle Growth Portfolio (formerly Lifestyle Growth PS Series) - Series II Shares (units first credited 12-06-2013)
Contracts with no Optional Benefits                    
Value at Start of Year 14.552 15.753 13.783 13.061 13.278 12.717 — — — —
Value at End of Year 17.392 14.552 15.753 13.783 13.061 13.278 12.717 — — —
Wealthmark No. of Units 555,411 624,145 703,038 178,884 119,446 184,801 — — — —
NY Wealthmark No. of Units 129,463 145,523 155,022 112,266 160,304 199,078 — — — —
Wealthmark Contracts with EER                    
Value at Start of Year 14.405 15.625 13.699 13.007 13.250 12.715 — — — —
Value at End of Year 17.183 14.405 15.625 13.699 13.007 13.250 12.715 — — —
No. of Units 34,793 35,847 43,640 3,765 1,178 1,186 — — — —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 14.296 15.530 13.636 12.966 13.228 12.714 — — — —
Value at End of Year 17.027 14.296 15.530 13.636 12.966 13.228 12.714 — — —
No. of Units 7,087 7,875 15,156 15,810 22,374 26,053 — — — —
Lifestyle Moderate Portfolio (formerly Lifestyle Moderate PS Series) - Series II Shares (units first credited 12-06-2013)
Contracts with no Optional Benefits                    
Value at Start of Year 13.854 14.602 13.427 12.933 13.130 12.607 — — — —
Value at End of Year 15.809 13.854 14.602 13.427 12.933 13.130 12.607 — — —
Wealthmark No. of Units 7,838 8,139 8,533 8,913 — 5,728 — — — —
NY Wealthmark No. of Units 38,281 39,013 39,792 42,879 44,682 49,544 — — — —
Wealthmark Contracts with EER                    
Value at Start of Year 13.714 14.483 13.345 12.500 — — — — — —
Value at End of Year 15.618 13.714 14.483 13.345 — — — — — —
No. of Units — — — 1,814 — — — — — —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 13.611 14.395 13.284 12.840 13.081 12.604 — — — —
Value at End of Year 15.476 13.611 14.395 13.284 12.840 13.081 12.604 — — —
No. of Units 26,086 46,033 52,874 60,315 70,444 78,330 — — — —
Managed Volatility Aggressive Portfolio (formerly Lifestyle Aggressive MVP) - Series II Shares (units first credited 05-01-2006)
Contracts with no Optional Benefits                    
Value at Start of Year 16.188 17.964 14.863 14.826 16.004 16.023 12.851 11.194 12.169 10.627
Value at End of Year 19.255 16.188 17.964 14.863 14.826 16.004 16.023 12.851 11.194 12.169
Wealthmark No. of Units 10,600 10,810 13,840 16,512 16,412 26,296 22,041 25,292 28,782 53,949
NY Wealthmark No. of Units 867 — — — — — — 1,780 490 —
Wealthmark Contracts with EER                    
Value at Start of Year 15.782 17.550 14.549 14.542 15.729 15.779 12.681 11.068 12.056 10.549
Value at End of Year 18.736 15.782 17.550 14.549 14.542 15.729 15.779 12.681 11.068 12.056
No. of Units 1,309 1,401 1,413 1,427 1,442 1,455 1,498 1,513 117 921
Managed Volatility Balanced Portfolio (formerly Lifestyle Balanced MVP) - Series II Shares (units first credited 05-01-2006)
Contracts with no Optional Benefits                    
Value at Start of Year 17.211 18.381 16.375 15.874 16.491 16.076 14.486 13.152 13.281 12.081
Value at End of Year 19.980 17.211 18.381 16.375 15.874 16.491 16.076 14.486 13.152 13.281
Wealthmark No. of Units 1,238,315 1,407,893 1,615,615 1,742,339 2,054,451 2,353,327 2,629,594 2,943,655 3,182,129 3,815,784
NY Wealthmark No. of Units 32,549 43,824 61,401 133,469 134,473 137,449 338,884 388,144 475,378 509,511
Wealthmark Contracts with EER                    
Value at Start of Year 16.780 17.956 16.029 15.570 16.208 15.831 14.294 13.004 13.158 11.992
Value at End of Year 19.441 16.780 17.956 16.029 15.570 16.208 15.831 14.294 13.004 13.158
No. of Units 125,386 131,568 165,794 187,000 208,070 220,610 239,844 256,148 272,625 325,379

U- 12

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 16.464 17.645 15.775 15.345 15.998 15.650 14.152 12.894 13.066 11.927
Value at End of Year 19.046 16.464 17.645 15.775 15.345 15.998 15.650 14.152 12.894 13.066
No. of Units 26,395 31,368 33,019 45,791 48,110 50,014 131,986 158,383 168,685 197,796
Managed Volatility Conservative Portfolio (formerly Lifestyle Conservative MVP) - Series II Shares (units first credited 05-01-2006)
Contracts with no Optional Benefits                    
Value at Start of Year 17.484 18.167 17.111 16.634 16.895 16.342 15.983 14.972 14.592 13.593
Value at End of Year 19.513 17.484 18.167 17.111 16.634 16.895 16.342 15.983 14.972 14.592
Wealthmark No. of Units 133,433 144,057 175,205 196,182 351,870 214,750 306,069 413,450 342,745 384,414
NY Wealthmark No. of Units 40,006 2,427 2,767 3,110 3,463 25,601 38,154 58,258 43,014 46,495
Wealthmark Contracts with EER                    
Value at Start of Year 17.047 17.748 16.749 16.316 16.604 16.093 15.771 14.803 14.457 13.493
Value at End of Year 18.987 17.047 17.748 16.749 16.316 16.604 16.093 15.771 14.803 14.457
No. of Units 6,209 3,888 3,890 3,812 3,712 19,066 38,781 68,183 64,218 52,175
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — 15.614 14.678 14.356 13.419
Value at End of Year — — — — — — — 15.614 14.678 14.356
No. of Units — — — — — — — 16,766 16,830 21,691
Managed Volatility Growth Portfolio (formerly Lifestyle Growth MVP) - Series II Shares (units first credited 05-01-2006)
Contracts with no Optional Benefits                    
Value at Start of Year 16.610 18.055 15.470 15.210 16.204 16.105 13.714 12.245 12.645 11.365
Value at End of Year 19.544 16.610 18.055 15.470 15.210 16.204 16.105 13.714 12.245 12.645
Wealthmark No. of Units 1,104,921 1,253,288 1,385,301 1,605,347 1,820,169 2,259,408 3,086,233 3,579,818 4,277,411 4,467,516
NY Wealthmark No. of Units 95,515 117,797 134,173 175,242 175,100 184,005 321,663 423,911 541,330 737,994
Wealthmark Contracts with EER                    
Value at Start of Year 16.195 17.639 15.143 14.918 15.926 15.859 13.532 12.107 12.528 11.282
Value at End of Year 19.016 16.195 17.639 15.143 14.918 15.926 15.859 13.532 12.107 12.528
No. of Units 87,579 93,016 191,087 208,455 231,724 263,458 302,197 287,767 303,871 304,366
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 15.889 17.333 14.903 14.704 15.720 15.678 13.397 12.004 12.440 11.220
Value at End of Year 18.630 15.889 17.333 14.903 14.704 15.720 15.678 13.397 12.004 12.440
No. of Units 24,465 35,685 43,017 69,759 89,184 107,564 154,458 219,300 303,612 323,830
Managed Volatility Moderate Portfolio (formerly Lifestyle Moderate MVP) - Series II Shares (units first credited 05-01-2006)
Contracts with no Optional Benefits                    
Value at Start of Year 17.945 18.983 17.241 16.632 17.058 16.525 15.238 13.986 13.886 12.756
Value at End of Year 20.602 17.945 18.983 17.241 16.632 17.058 16.525 15.238 13.986 13.886
Wealthmark No. of Units 476,511 577,093 426,852 476,246 486,234 569,283 672,278 883,740 955,461 1,048,666
NY Wealthmark No. of Units 8,181 50,036 50,774 14,773 14,958 17,802 63,726 93,466 116,649 112,870
Wealthmark Contracts with EER                    
Value at Start of Year 17.496 18.545 16.876 16.313 16.765 16.273 15.036 13.828 13.757 12.663
Value at End of Year 20.046 17.496 18.545 16.876 16.313 16.765 16.273 15.036 13.828 13.757
No. of Units 55,795 57,631 59,563 59,577 63,987 63,355 67,936 81,338 81,532 86,529
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 17.166 18.223 16.608 16.078 16.548 16.087 14.887 13.711 13.661 12.593
Value at End of Year 19.639 17.166 18.223 16.608 16.078 16.548 16.087 14.887 13.711 13.661
No. of Units 3,951 3,962 6,184 6,619 7,205 7,665 73,954 76,067 83,904 91,686
Mid Cap Index Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 35.046 40.232 35.320 29.868 31.163 28.961 22.123 19.128 19.887 16.030
Value at End of Year 43.348 35.046 40.232 35.320 29.868 31.163 28.961 22.123 19.128 19.887
Wealthmark No. of Units 186,493 217,918 288,999 288,279 329,581 386,524 504,158 692,208 811,222 917,641
NY Wealthmark No. of Units 30,482 38,985 39,520 41,880 46,661 54,505 75,689 87,035 106,465 116,899
Wealthmark Contracts with EER                    
Value at Start of Year 33.898 38.993 34.301 29.064 30.384 28.294 21.657 18.762 19.546 15.787
Value at End of Year 41.844 33.898 38.993 34.301 29.064 30.384 28.294 21.657 18.762 19.546
No. of Units 26,819 28,337 30,170 40,737 43,059 45,240 60,519 70,872 80,084 93,462
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 33.062 38.089 33.555 28.475 29.814 27.804 21.313 18.493 19.294 15.607
Value at End of Year 40.751 33.062 38.089 33.555 28.475 29.814 27.804 21.313 18.493 19.294
No. of Units 594 967 2,824 2,824 4,413 4,468 4,529 4,606 6,705 14,862

U- 13

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Mid Cap Stock Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits  
Value at Start of Year 41.683 43.010 34.005 34.345 33.897 31.881 23.684 19.687 22.034 18.195
Value at End of Year 55.182 41.683 43.010 34.005 34.345 33.897 31.881 23.684 19.687 22.034
Wealthmark No. of Units 26,308 30,773 37,151 40,876 54,613 57,033 69,687 75,246 91,216 67,965
NY Wealthmark No. of Units — 971 976 981 2,702 2,718 2,311 2,358 1,166 386
Wealthmark Contracts with EER                    
Value at Start of Year 40.318 41.685 33.023 33.420 33.051 31.147 23.185 19.311 21.656 17.919
Value at End of Year 53.268 40.318 41.685 33.023 33.420 33.051 31.147 23.185 19.311 21.656
No. of Units 3,583 3,378 2,268 5,070 5,283 4,889 4,926 7,710 7,826 9,776
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 39.324 40.719 32.306 32.743 32.430 30.608 22.818 19.034 24.943 —
Value at End of Year — 39.324 40.719 32.306 32.743 32.430 30.608 22.818 19.034 —
No. of Units — 437 437 437 437 437 437 437 437 —
Mid Value Trust - Series II Shares (units first credited 01-00-1900)
Contracts with no Optional Benefits                    
Value at Start of Year 29.933 34.082 12.500 — — — — — — —
Value at End of Year 35.171 29.933 34.082 — — — — — — —
Wealthmark No. of Units 316 164 98 — — — — — — —
Money Market Trust - NAV Shares (units first credited 04-29-2016)
Contracts with no Optional Benefits                    
Value at Start of Year 12.324 12.303 12.396 12.500 — — — — — —
Value at End of Year 12.394 12.324 12.303 12.396 — — — — — —
Wealthmark No. of Units 220,191 242,081 295,551 364,111 — — — — — —
NY Wealthmark No. of Units 13,907 29,895 31,199 35,000 — — — — — —
Wealthmark Contracts with EER                    
Value at Start of Year 12.258 12.262 12.380 12.500 — — — — — —
Value at End of Year 12.303 12.258 12.262 12.380 — — — — — —
No. of Units 39,269 38,147 52,531 56,464 — — — — — —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 12.209 12.231 12.367 12.500 — — — — — —
Value at End of Year 12.236 12.209 12.231 12.367 — — — — — —
No. of Units 16,054 17,282 18,334 19,527 — — — — — —
Money Market Trust B (merged into Money Market Trust eff 04-29-2016) - NAV Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — 11.734 11.899 12.067 12.235 12.403 12.567 12.737
Value at End of Year — — — — 11.734 11.899 12.067 12.235 12.403 12.567
Wealthmark No. of Units — — — — 560,774 650,073 813,515 1,252,385 1,358,597 1,264,489
NY Wealthmark No. of Units — — — — 43,204 47,854 80,930 102,923 90,196 111,408
Wealthmark Contracts with EER                    
Value at Start of Year — — — 11.532 11.718 11.907 12.097 12.288 12.475 12.670
Value at End of Year — — — — 11.532 11.718 11.907 12.097 12.288 12.475
No. of Units — — — — 65,204 85,640 92,067 181,147 168,021 232,180
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — 11.383 11.584 11.788 11.995 12.202 12.406 12.619
Value at End of Year — — — — 11.383 11.584 11.788 11.995 12.202 12.406
No. of Units — — — — 32,402 36,231 41,955 46,081 50,006 116,926
Natural Resources Trust (merged into Global Trust eff 11-07-14) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — 34.886 34.380 34.790 44.309 39.116
Value at End of Year — — — — — — 34.886 34.380 34.790 44.309
Wealthmark No. of Units — — — — — — 70,218 78,480 82,956 85,158
NY Wealthmark No. of Units — — — — — — 1,519 1,166 1,174 911
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — 34.150 33.722 34.193 43.636 38.598
Value at End of Year — — — — — — 34.150 33.722 34.193 43.636
No. of Units — — — — — — 3,898 4,092 4,555 3,777

U- 14

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — 33.608 33.236 33.752 43.137 38.214
Value at End of Year — — — — — — 33.608 33.236 33.752 43.137
No. of Units — — — — — — 309 316 324 333
Opportunistic Fixed Income Trust (formerly Global Bond Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 22.188 22.969 21.471 21.156 22.286 22.129 23.789 22.588 21.044 19.378
Value at End of Year 23.210 22.188 22.969 21.471 21.156 22.286 22.129 23.789 22.588 21.044
Wealthmark No. of Units 25,399 23,729 28,382 29,659 29,213 36,679 53,106 71,734 82,052 94,960
NY Wealthmark No. of Units 300 301 1,091 776 747 747 1,035 1,142 1,719 2,609
Wealthmark Contracts with EER                    
Value at Start of Year 21.461 22.261 20.851 20.587 21.729 21.619 23.288 22.157 20.683 19.085
Value at End of Year 22.405 21.461 22.261 20.851 20.587 21.729 21.619 23.288 22.157 20.683
No. of Units 2,972 2,460 3,021 5,173 5,375 6,945 8,107 6,446 6,538 7,987
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 20.932 21.745 20.398 20.170 21.321 21.245 22.919 21.839 20.417 18.867
Value at End of Year 21.820 20.932 21.745 20.398 20.170 21.321 21.245 22.919 21.839 20.417
No. of Units 146 234 240 246 252 259 436 447 3,480 3,597
Real Estate Securities Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 42.585 44.821 42.855 40.733 40.314 31.083 31.641 27.406 25.442 20.020
Value at End of Year 54.206 42.585 44.821 42.855 40.733 40.314 31.083 31.641 27.406 25.442
Wealthmark No. of Units 34,484 41,225 58,496 64,011 79,621 91,164 114,701 148,796 171,385 211,764
NY Wealthmark No. of Units 10,451 11,917 13,240 16,453 17,271 22,342 28,584 30,710 34,332 44,509
Wealthmark Contracts with EER                    
Value at Start of Year 41.190 43.441 41.618 39.637 39.307 30.367 30.974 26.883 25.006 19.716
Value at End of Year 52.326 41.190 43.441 41.618 39.637 39.307 30.367 30.974 26.883 25.006
No. of Units 3,965 4,068 5,062 5,973 7,149 7,226 8,017 8,451 11,136 15,905
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 40.175 42.433 40.714 38.834 38.568 29.841 30.483 26.497 24.683 19.491
Value at End of Year — 40.175 42.433 40.714 38.834 38.568 29.841 30.483 26.497 24.683
No. of Units — 34 37 33 32 33 484 430 456 903
Science & Technology Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 43.095 44.051 31.723 29.744 28.325 25.487 18.041 16.599 18.291 14.912
Value at End of Year 58.535 43.095 44.051 31.723 29.744 28.325 25.487 18.041 16.599 18.291
Wealthmark No. of Units 27,909 31,651 35,298 33,370 42,899 44,705 41,913 51,936 52,833 41,158
NY Wealthmark No. of Units — 537 504 671 1,615 1,915 2,906 1,812 2,954 2,370
Wealthmark Contracts with EER                    
Value at Start of Year 41.684 42.694 30.807 28.944 27.617 24.900 17.661 16.282 17.978 14.686
Value at End of Year 56.505 41.684 42.694 30.807 28.944 27.617 24.900 17.661 16.282 17.978
No. of Units 5,349 4,956 4,994 3,688 3,731 3,578 4,127 11,176 13,903 13,921
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — — 17.746 14.519
Value at End of Year — — — — — — — — 16.048 17.746
No. of Units — — — — — — — — 7,687 7,687
Short Term Government Income Trust - Series II Shares (units first credited 05-03-2010)
Contracts with no Optional Benefits                    
Value at Start of Year 11.866 11.958 12.081 12.196 12.324 12.381 12.690 12.742 12.598 12.500
Value at End of Year 12.073 11.866 11.958 12.081 12.196 12.324 12.381 12.690 12.742 12.598
Wealthmark No. of Units 23,459 53,135 23,902 69,083 34,269 47,369 47,472 62,772 86,073 108,795
NY Wealthmark No. of Units — — — — — — 629 634 730 3,910
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — 12.622 12.699 12.581 12.500
Value at End of Year — — — — — — 12.290 12.622 12.699 12.581
No. of Units — — — — — — 324 335 347 1,566
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — 11.802 11.957 12.124 12.223 12.572 12.667 12.568 12.500
Value at End of Year — — — 11.802 11.957 12.124 12.223 12.572 12.667 12.568
No. of Units — — — 62 162 261 360 454 517 581

U- 15

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Small Cap Index Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits  
Value at Start of Year 29.991 34.388 30.541 25.659 27.331 26.547 19.460 17.040 18.121 14.573
Value at End of Year 36.901 29.991 34.388 30.541 25.659 27.331 26.547 19.460 17.040 18.121
Wealthmark No. of Units 217,060 253,342 293,920 328,108 380,399 451,871 597,344 865,764 1,009,472 1,168,995
NY Wealthmark No. of Units 34,204 38,419 41,455 44,786 49,884 75,929 98,802 112,599 124,442 135,675
Wealthmark Contracts with EER                    
Value at Start of Year 29.009 33.329 29.659 24.968 26.649 25.936 19.050 16.714 17.810 14.352
Value at End of Year 35.621 29.009 33.329 29.659 24.968 26.649 25.936 19.050 16.714 17.810
No. of Units 30,225 31,918 35,756 47,551 53,707 61,661 74,485 93,311 102,723 121,662
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 28.293 32.556 29.015 24.462 26.148 25.487 18.748 16.474 17.581 14.188
Value at End of Year 34.691 28.293 32.556 29.015 24.462 26.148 25.487 18.748 16.474 17.581
No. of Units 1,135 1,841 4,789 5,404 5,142 4,993 5,359 5,332 5,209 4,792
Small Cap Opportunities Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 33.308 39.289 35.936 30.561 32.741 32.510 23.561 20.491 21.494 16.852
Value at End of Year 41.140 33.308 39.289 35.936 30.561 32.741 32.510 23.561 20.491 21.494
Wealthmark No. of Units 16,558 13,287 26,675 25,127 24,684 27,391 28,419 21,444 28,914 24,332
NY Wealthmark No. of Units 124 125 126 127 149 173 184 188 199 1,663
Wealthmark Contracts with EER                    
Value at Start of Year 32.280 38.153 34.967 29.796 31.986 31.824 23.110 20.139 21.167 16.629
Value at End of Year 39.791 32.280 38.153 34.967 29.796 31.986 31.824 23.110 20.139 21.167
No. of Units 1,592 4,542 4,232 1,286 1,295 1,304 1,292 1,647 1,660 1,672
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — 37.323 34.258 12.500 — — — — — —
Value at End of Year — — 37.323 34.258 — — — — — —
No. of Units — — 1,141 1,141 — — — — — —
Small Cap Stock Trust (formerly Small Cap Growth Trust) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720 15.598
Value at End of Year 42.078 30.979 33.227 26.683 26.492 29.541 27.909 19.683 17.166 18.720
Wealthmark No. of Units 26,711 27,933 31,712 33,382 41,674 41,322 52,167 51,948 57,376 73,777
NY Wealthmark No. of Units — — 270 294 2,764 2,757 3,148 3,113 3,457 1,290
Wealthmark Contracts with EER                    
Value at Start of Year 30.143 32.396 26.067 25.932 28.975 27.429 19.383 16.939 18.509 15.453
Value at End of Year 40.861 30.143 32.396 26.067 25.932 28.975 27.429 19.383 16.939 18.509
No. of Units 77 78 314 316 318 320 3,162 3,455 4,241 4,205
Small Cap Value Trust - Series II Shares (units first credited 11-09-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272 14.714
Value at End of Year 36.735 29.488 34.241 33.549 27.784 28.625 27.141 20.694 18.170 18.272
Wealthmark No. of Units 11,465 14,234 16,343 22,229 25,621 28,370 41,389 71,255 80,812 87,356
NY Wealthmark No. of Units — — — — 126 994 613 875 420 2,906
Wealthmark Contracts with EER                    
Value at Start of Year 28.693 33.384 32.775 27.197 28.077 26.674 20.379 17.929 18.066 14.577
Value at End of Year 35.673 28.693 33.384 32.775 27.197 28.077 26.674 20.379 17.929 18.066
No. of Units 222 224 478 3,866 4,029 487 1,374 1,570 1,658 2,396
Small Company Value Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 33.689 39.314 35.833 27.519 29.622 30.076 23.210 20.273 20.808 17.417
Value at End of Year 41.598 33.689 39.314 35.833 27.519 29.622 30.076 23.210 20.273 20.808
Wealthmark No. of Units 14,725 14,476 15,277 14,715 15,478 16,386 22,865 33,500 35,682 33,149
NY Wealthmark No. of Units 255 256 258 259 260 622 838 791 265 267
Wealthmark Contracts with EER                    
Value at Start of Year 32.586 38.103 34.799 26.778 28.882 29.384 22.722 19.886 20.451 17.152
Value at End of Year 40.156 32.586 38.103 34.799 26.778 28.882 29.384 22.722 19.886 20.451
No. of Units 636 3,578 3,597 1,337 656 661 698 754 763 34

U- 16

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — 37.220 34.042 12.500 — — — — — —
Value at End of Year — — 37.220 34.042 — — — — — —
No. of Units — — 1,196 1,196 — — — — — —
Strategic Income Opportunities Trust - Series II Shares (units first credited 11-08-2010)
Contracts with no Optional Benefits                    
Value at Start of Year 21.777 23.319 22.442 21.678 21.763 21.051 20.605 18.557 18.469 12.500
Value at End of Year 23.783 21.777 23.319 22.442 21.678 21.763 21.051 20.605 18.557 18.469
Wealthmark No. of Units 11,228 8,203 8,261 11,872 13,978 34,052 40,215 41,927 37,680 37,652
NY Wealthmark No. of Units — — — — — — 481 3,274 4,942 4,766
Wealthmark Contracts with EER                    
Value at Start of Year 21.148 22.690 21.880 21.178 21.304 20.648 20.251 18.274 18.225 12.500
Value at End of Year 23.049 21.148 22.690 21.880 21.178 21.304 20.648 20.251 18.274 18.225
No. of Units 963 998 1,041 4,460 4,658 1,153 1,195 2,372 6,023 6,205
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — — — — 18.043 12.500
Value at End of Year — — — — — — — — 18.066 18.043
No. of Units — — — — — — — — 8,723 8,723
Total Bond Market Trust A (formerly Bond Index Trust A) (merged into Total Bond Market Trust B eff 11-02-2012) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — — — — 15.211 14.438 13.865
Value at End of Year — — — — — — — — 15.211 14.438
Wealthmark No. of Units — — — — — — — — 24,685 8,210
NY Wealthmark No. of Units — — — — — — — — 1,825 1,993
Wealthmark Contracts with EER                    
Value at Start of Year — — — — — — — 15.070 14.333 13.792
Value at End of Year — — — — — — — — 15.070 14.333
No. of Units — — — — — — — — 4,758 655
Total Bond Market Trust (formerly Total Bond Market Trust B) - Series II Shares (units first credited 11-02-2012)
Contracts with no Optional Benefits                    
Value at Start of Year 12.365 12.602 12.397 12.303 12.470 11.942 12.456 12.500 — —
Value at End of Year 13.171 12.365 12.602 12.397 12.303 12.470 11.942 12.456 — —
Wealthmark No. of Units 85,327 68,766 51,742 83,164 57,098 35,880 45,013 52,265 — —
NY Wealthmark No. of Units 2,011 1,823 2,006 1,834 1,703 1,774 2,304 2,278 — —
Wealthmark Contracts with EER                    
Value at Start of Year 12.213 12.473 12.295 12.226 12.416 11.914 12.452 12.500 — —
Value at End of Year 12.984 12.213 12.473 12.295 12.226 12.416 11.914 12.452 — —
No. of Units 1,112 1,112 425 428 430 433 734 738 — —
Total Return Trust (merged into Core Bond Trust eff 04-27-2015) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — — — 20.316 19.723 20.457 19.159 18.735 17.689
Value at End of Year — — — — — 20.316 19.723 20.457 19.159 18.735
Wealthmark No. of Units — — — — — 102,101 129,809 229,277 215,552 237,453
NY Wealthmark No. of Units — — — — — 137 1,141 1,355 1,222 9,012
Wealthmark Contracts with EER                    
Value at Start of Year — — — — 19.809 19.269 20.026 18.794 18.414 17.420
Value at End of Year — — — — — 19.809 19.269 20.026 18.794 18.414
No. of Units — — — — — 11,770 17,905 19,919 17,693 23,976
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — 19.437 18.936 19.709 18.524 18.177 17.222
Value at End of Year — — — — — 19.437 18.936 19.709 18.524 18.177
No. of Units — — — — — 685 1,154 1,182 4,386 4,651
Total Stock Market Index Trust - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year 30.697 33.090 27.886 25.215 25.786 23.495 17.903 15.758 15.955 13.842
Value at End of Year 39.170 30.697 33.090 27.886 25.215 25.786 23.495 17.903 15.758 15.955
Wealthmark No. of Units 188,112 217,103 260,157 242,382 278,913 328,224 464,244 645,476 773,767 908,009
NY Wealthmark No. of Units 27,566 39,033 40,964 34,681 39,210 50,153 70,226 88,338 109,385 124,411

U- 17

 

Wealthmark ALL

 

  Year
Ended
12/31/19		 Year
Ended
12/31/18		 Year
Ended
12/31/17		 Year
Ended
12/31/16		 Year
Ended
12/31/15		 Year
Ended
12/31/14		 Year
Ended
12/31/13		 Year
Ended
12/31/12		 Year
Ended
12/31/11		 Year
Ended
12/31/10
Wealthmark Contracts with EER
Value at Start of Year 29.691 32.071 27.082 24.537 25.142 22.954 17.526 15.457 15.681 13.632
Value at End of Year 37.812 29.691 32.071 27.082 24.537 25.142 22.954 17.526 15.457 15.681
No. of Units 43,267 45,947 50,062 44,662 46,255 53,713 71,623 75,893 88,442 105,330
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year 28.959 31.327 26.493 24.039 24.670 22.557 17.248 15.235 15.479 13.477
Value at End of Year 36.824 28.959 31.327 26.493 24.039 24.670 22.557 17.248 15.235 15.479
No. of Units 4,208 4,359 4,514 4,850 4,976 5,126 6,507 7,369 7,613 9,838
Ultra Short Term Bond Trust - Series II Shares (units first credited 08-02-2010)
Contracts with no Optional Benefits                    
Value at Start of Year 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418 12.500
Value at End of Year 11.440 11.273 11.298 11.404 11.528 11.708 11.909 12.109 12.236 12.418
Wealthmark No. of Units 103,296 203,171 253,333 276,808 248,153 212,377 168,177 49,291 38,049 6,540
NY Wealthmark No. of Units 11,196 21,145 1,145 1,156 1,167 1,176 55,702 1,195 — —
Wealthmark Contracts with EER                    
Value at Start of Year 11.084 11.131 11.259 11.403 11.605 11.828 12.051 12.201 12.500 —
Value at End of Year 11.226 11.084 11.131 11.259 11.403 11.605 11.828 12.051 12.201 —
No. of Units 9,727 3,406 30,009 3,030 2,965 44,677 3,020 157 5,104 —
NY Wealthmark Contracts with the Payment Enhancement
Value at Start of Year — — — — — 11.768 12.580 — — —
Value at End of Year — — — — — 11.528 11.768 — — —
No. of Units — — — — — 1,052 1,058 — — —
Utilities Trust (merged into Equity Income Trust eff 11-01-2019) - Series II Shares (units first credited 10-21-2016)
Contracts with no Optional Benefits                    
Value at Start of Year 48.379 48.727 12.500 — — — — — — —
Value at End of Year — 48.379 48.727 — — — — — — —
Wealthmark No. of Units — 2,481 1,707 — — — — — — —
Value Trust (merged into Mid Cap Index Trust eff 10-27-2017) - Series II Shares (units first credited 05-03-2007)
Contracts with no Optional Benefits                    
Value at Start of Year — — 34.053 29.881 33.345 30.850 23.156 20.041 20.155 16.758
Value at End of Year — — — 34.053 29.881 33.345 30.850 23.156 20.041 20.155
Wealthmark No. of Units — — — 29,547 32,713 37,733 41,314 48,101 50,087 39,137
NY Wealthmark No. of Units — — — 882 257 259 — — — 3,672
Wealthmark Contracts with EER                    
Value at Start of Year — — 33.070 29.077 32.512 30.140 22.668 19.658 19.809 16.504
Value at End of Year — — — 33.070 29.077 32.512 30.140 22.668 19.658 19.809
No. of Units — — — 3,132 4,024 888 537 585 591 582

 

U- 18

Table of Contents
To obtain a free copy of the Wealthmark Variable Annuity Statement of Additional Information dated April 27, 2020, please contact our Annuities Service Center.

Table of Contents
    
Statement of Additional Information
Dated April 27, 2020
John Hancock Life Insurance Company (U.S.A.) Separate Account H
This Statement of Additional Information is not a Prospectus. This Statement of Additional Information should be read in conjunction with the Prospectuses dated the same date as this Statement of Additional Information. This Statement of Additional Information describes additional information regarding the variable portion of the flexible purchase payment deferred combination fixed and variable annuity contracts (singly, a “Contract” and collectively, the “Contracts”) issued by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”) in all jurisdictions except New York as follows:
Prospectuses Issued by John Hancock USA
(to be read with this Statement of Additional Information)
Venture Variable Annuity
Venture 4 Variable Annuity
Venture III Variable Annuity
Venture Vantage Variable Annuity
Venture Vision Variable Annuity
Wealthmark Variable Annuity
Wealthmark ML3 Variable Annuity
You may obtain a copy of the Prospectuses listed above by contacting us at the following addresses:
John Hancock Life Insurance Company (U.S.A.)
John Hancock Annuities Service Center
Overnight Mail Address Mailing Address
30 Dan Road, STE 55444
Canton, MA 02021-2809
(800) 344-1029 		PO Box 55445
Boston, MA 02205-5445
www.jhannuities.com

 

 

General Information and History
John Hancock Life Insurance Company (U.S.A.) Separate Account H (the “Separate Account”) is a separate investment account of John Hancock Life Insurance Company (U.S.A.) (“we,” “us,” “the Company,” or “John Hancock USA”) (formerly, The Manufacturers Life Insurance Company (U.S.A.). We are a stock life insurance company organized under the laws of Maine on August 20, 1955 by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. Our Michigan office is located at 201 Townsend Street, Suite 900, Lansing, Michigan 48933. Our principal office is located at 200 Berkeley Street, Boston, Massachusetts 02116. John Hancock USA also has an Annuities Service Center – its mailing address is P.O. Box 55444, Boston, MA 02205-5444; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its website address is www.jhannuities.com. The ultimate parent of John Hancock USA is Manulife Financial Corporation (“MFC”) based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife.
The Separate Account was established on August 24, 1984 as a separate account of The Manufacturers Life Insurance Company of North America (“Manulife North America”), another wholly-owned subsidiary of MFC which on January 1, 2002 merged into the Company. As a result of this merger, the Company became the owner of all of Manulife North America’s assets, including the assets of the Separate Account and assumed all of Manulife North America’s obligations including those under the Contracts. The merger had no other effect on the terms and conditions of the Contracts or on your allocations among Investment Options.
Our financial statements which are included in this Statement of Additional Information should be considered only as bearing on our ability to meet our obligations under the Contracts. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.
Accumulation Unit Value Tables
The Accumulation Unit Value Tables are located in Appendix U of the Prospectus.
Services
Independent Registered Public Accounting Firm
The statutory-basis financial statements of John Hancock Life Insurance Company (U.S.A.) at December 31, 2019 and 2018, and for each of the three years in the period ended December 31, 2019, and the financial statements of John Hancock Life Insurance Company (U.S.A.) Separate Account H at December 31, 2019, and for each of the two years in the period ended December 31, 2019, appearing in this Statement of Additional Information of the Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
Servicing Agent
DXC Technology (formerly Computer Sciences Corporation) provides to us a computerized data processing recordkeeping system for variable and fixed annuity administration. DXC provides various daily, semimonthly, monthly, semiannual and annual reports including:
•  daily updates on accumulation unit values, variable annuity participants and transactions, and agent production and commissions;
•  semimonthly commission statements;
•  monthly summaries of agent production and daily transaction reports;
•  semiannual statements for Contract Owners; and
•  annual Contract Owner tax reports.
We pay DXC a fixed cost of $2.1 million per year, plus certain other fees for the services provided.
1

 

Principal Underwriter
John Hancock Distributors, LLC (“JH Distributors”), an indirect wholly owned subsidiary of MFC, serves as principal underwriter of the Contracts. Contracts are offered on a continuous basis. The aggregate dollar amounts of underwriting commissions paid to JH Distributors in 2019, 2018 and 2017, were $191,144,402, $210,202,441, and $223,192,582, respectively.
Special Compensation and Reimbursement Arrangements
The Contracts are primarily sold through selected firms. The Contracts’ principal distributor, JH Distributors, and its affiliates (collectively, “JHD”) pay compensation to broker-dealers (firms) for the promotion, sale and servicing of the Contracts. The compensation JHD pays may vary depending on each firm’s selling agreement and the specific Contract(s) distributed by the firm, but compensation (inclusive of wholesaler overrides and expense allowances) paid to the firms for sale of the Contracts and ongoing services to Contract Owners is not expected to exceed the standard compensation amounts referenced in the Prospectus for the applicable Contract. The amount and timing of this compensation may differ among firms.
The financial advisor through whom your Contract is sold is a registered representative of a broker-dealer, and as such will be compensated pursuant to that registered representative’s own arrangement with his or her broker-dealer. The registered representative and the firm may have multiple options on how they wish to allocate their commissions and/or compensation. We are not involved in determining your financial advisor’s compensation. You are encouraged to ask your financial advisor about the basis upon which he or she will be personally compensated for the advice or recommendations provided in connection with the sale of your Contract.
Compensation to firms for the promotion, sale and servicing of the Contracts is not paid directly by Contract Wwners, but we expect to recoup it through the fees and charges imposed under the Contract.
We may, directly or through JHD, make additional payments to firms, either from 12b-1 distribution fees received from the Contracts’ underlying investment Portfolios or out of our own resources. These payments are sometimes referred to as “revenue sharing.” Revenue sharing expenses are any payments made to broker-dealers or other intermediaries to either (i) compensate the intermediary for expenses incurred in connection with the promotion and/or sale of John Hancock investment products, or (ii) obtain promotional and/or distribution services for John Hancock investment products. Many firms that sell the Contracts receive one or more types of these cash payments. During 2012, we terminated these revenue sharing arrangements with broker-dealers with respect to the sale of John Hancock’s annuity contracts, although a small number of firms will continue to receive revenue sharing payments in accordance with the terms of certain agreements with these particular firms.
We are among several insurance companies that pay additional payments to certain firms to receive “preferred” or recommended status. These privileges include: additional or special access to sales staff; opportunities to provide and/or attend training and other conferences; advantageous placement of our products on customer lists (“shelf-space arrangements”); and other improvements in sales by featuring our products over others.
Revenue sharing payments assisted in our efforts to promote the sale of the Contracts and could be significant to a firm. Not all firms, however, received additional compensation. We determined which firms to support and the extent of the payments we were willing to make, and generally choose to compensate firms that were willing to cooperate with our promotional efforts and have a strong capability to distribute the Contracts. We did not make an independent assessment of the cost of providing such services. Instead, we agreed with the firm on the methods for calculating any additional compensation. The methods, which vary by firm and are further described below, may have included different categories to measure the amount of revenue sharing payments, such as the level of sales, assets attributable to the firm and the variable annuity contracts covered under the arrangement (including contracts issued by any of our affiliates). The categories of revenue sharing payments that we may provide to firms, directly or through JHD, are not mutually exclusive and may vary from Contract to Contract. We or our affiliates may make additional types of revenue sharing payments for other products, and may enter into new revenue sharing arrangements in the future.
2

 

The following list includes the names of member firms of the Financial Industry Regulatory Authority (“FINRA”) (or their affiliated broker-dealers) that we are aware (as of December 31, 2019) received a revenue sharing payment of more than $5,000 with respect to annuity business during the latest calendar year:
Name of Firm
DISTRIBUTOR
Edward Jones Co., L.P.
LPL Financial Corp.
Morgan Stanley Smith Barney Network
UBS Financial Services, Inc.
Your registered representative can provide you with more information about the compensation arrangements that apply upon the sale of a variable annuity contract.
Inclusion on this list does not imply that these sums necessarily constitute “special cash compensation” as defined by FINRA Conduct Rule 2341(l)(4). We will endeavor to update this listing annually; interim arrangements may not be reflected. We assume no duty to notify any investor whether his or her registered representative is or should be included in any such listing. You are encouraged to review the prospectus for each Portfolio for any other compensation arrangements pertaining to the distribution of Portfolio shares.
We may, directly or through JHD, also have arrangements with intermediaries that are not members of FINRA.
Sales and Asset Based Payments
We may, directly or through JHD, make or have made revenue sharing payments as incentives to certain firms for promotion and sale of the Contracts. In consideration for revenue sharing, a firm may have featured the Contracts in its sales system or given us additional access to members of its sales force or management. In addition, a firm may have agreed to participate in our marketing efforts by allowing us to participate in conferences, seminars or other programs attended by the firm’s sales force. Although a firm may seek revenue sharing payments to offset costs incurred by the firm in servicing its clients that have purchased the Contracts, the firm may earn a profit on these payments. Revenue sharing payments may have provided a firm with an incentive to favor the Contracts in its sales efforts.
The revenue sharing payments we make may be calculated on sales of our products by the firm (“Sales-Based Payments”). These payments are based upon a percentage of the total amount of money received, or anticipated to be received, for sales through a firm of some or all of the insurance products that we and/or our affiliates offer. We make these payments on a periodic basis.
Such payments also may be calculated based upon the “assets under management” attributable to a particular firm (“Asset-Based Payments”). These payments are based upon a percentage of the contract value of some or all of our (and/or our affiliates’) insurance products that were sold through the firm. We make these payments on a periodic basis.
Sales-Based Payments primarily created incentives to make new sales of our insurance products and Asset-Based Payments primarily create incentives to service and maintain previously sold Contracts. We may pay or have paid a firm either or both Sales-Based Payments and Asset-Based Payments.
Administrative and Processing Support Payments
We may, directly or through JHD, also make payments to certain firms that sell our products for certain administrative services, including record keeping and sub-accounting Contract Owner accounts, and in connection with account maintenance support, statement preparation and transaction processing. The types of payments that we may make under this category include, among others, payment of ticket charges per purchase or exchange order placed by a firm, payment of networking fees in connection with certain mutual fund trading systems, or one-time payments for ancillary services such as setting up funds on a firm’s mutual fund trading system.
3

 

Other Payments
We may, directly or through JHD, also provide, either from the 12b-1 distribution fees received from the Portfolios underlying the Contracts or out of our own resources, additional compensation to firms that sell or arrange for the sale of Contracts. Such compensation may have included seminars for the public, advertising and sales campaigns regarding the Contracts to assist a firm in connection with its systems, operations and marketing expenses, or for other activities of a selling firm or wholesaler. We may have contributed to, as well as sponsored, various educational programs, sales contests and/or promotions in which participating firms and their sales persons may have received prizes such as merchandise, cash, or other awards.
Other compensation may be offered to the extent not prohibited by federal or state laws or any self-regulatory agency, such as FINRA. We make payments for entertainment events we deem appropriate, subject to our guidelines and applicable law. These payments may vary widely, depending upon the nature of the event or the relationship. We may make these payments upon the initiation of a relationship with a firm, and at any time thereafter.
We may have other relationships with firms relating to the provisions of services to the Contracts, such as providing omnibus account services, transaction processing services, or effecting portfolio transactions for Portfolios. If a firm provides these services, we may compensate the firm for these services. In addition, a firm may have other compensated or uncompensated relationships with us that are not related to the Contracts.
Additional Information on Section 403(b)
Plans or Tax-Sheltered Annuities
Restrictions on Section 403(b) Plans
Tax-sheltered annuity contracts must contain restrictions on withdrawals of:
•  contributions made pursuant to a salary reduction agreement in years beginning after December 31, 1988;
•  earnings on those contributions; and
•  earnings after 1988 on amounts attributable to salary reduction contributions (and earnings on those contributions) held as of the last day of 1988.
These amounts can be paid only if the employee has reached age 59½, separated from service, died, or become disabled (within the meaning of the tax law), or in the case of hardship (within the meaning of the tax law). Amounts permitted to be distributed in the event of hardship are limited to actual contributions for elective contributions made after 1988; earnings thereon cannot be distributed on account of hardship. Amounts subject to the withdrawal restrictions applicable to section 403(b)(7) custodial accounts may be subject to more stringent restrictions.
Exercise of the withdrawal right for each withdrawal under the Contract may be subject to the terms of the Section 403(b) Plan and may require the consent of the employer, the Plan administrator or the Plan sponsor, as well as the participant’s spouse, under section 403(b) of the Code and applicable Treasury Regulations.
In the event that we do not receive the Required Documentation and you nonetheless direct us to proceed with the withdrawal, your Contract may no longer be qualified under section 403(b), which may result in additional adverse tax consequences to you. Employer consent is not required when we have received documentation in a form acceptable to us confirming that you have reached age 59½, separated from service, died or become disabled. (These limitations on withdrawals do not apply to the extent we are directed to transfer some or all of the Contract Value to the issuer of another tax-sheltered annuity or into a section 403(b)(7) custodial account.)
Additional Information on Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations
Restrictions under the Texas Optional Retirement Program
Section 830.105 of the Texas Government Code permits participants in the Texas Optional Retirement Program (“ORP”) to withdraw their interest in a variable annuity contract issued under the ORP only upon:
•  termination of employment in all Texas public institutions of higher education;
4

 

•  retirement;
•  death; or
•  the participant’s turning age 70½.
Accordingly, before you withdraw any amounts from the Contract, you must furnish proof to us that one of these four events has occurred. For these purposes a change of company providing ORP benefits or a participant’s transfer between institutions of higher education is not a termination of employment. Consequently there is no termination of employment when a participant in the ORP transfers the Contract Value to another Contract or another qualified custodian during the period of participation in the ORP.
Legal and Regulatory Matters
There are no legal proceedings to which we, the Separate Account or the principal underwriter is a party, or to which the assets of the Separate Account are subject, that are likely to have a material adverse effect on:
•  the Separate Account; or
•  the ability of the principal underwriter to perform its contract with the Separate Account; or
•  on our ability to meet our obligations under the variable annuity contracts funded through the Separate Account.
5

 

Appendix A: Audited Financial Statements
A-1

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Audited Statutory-Basis Financial
Statements

 

John Hancock Life Insurance Company (U.S.A.) 

For the Years Ended December 31, 2019, 2018 and 2017

With Report of Independent Auditors

 

 

 

 

AUDITED STATUTORY-BASIS FINANCIAL STATEMENTS

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

Years Ended December 31, 2019, 2018 and 2017

 

Contents

 

Report of Independent Auditors 1
   

Statutory-Basis Financial Statements

 

  
Balance Sheets—Statutory-Basis 3
Statements of Operations—Statutory-Basis 5
Statements of Changes in Capital and Surplus—Statutory-Basis 6
Statements of Cash Flow—Statutory-Basis 7
Notes to Statutory-Basis Financial Statements 8

 

 

 

 

Report of Independent Auditors

 

The Board of Directors and Stockholder

John Hancock Life Insurance Company (U.S.A.)

 

We have audited the accompanying statutory-basis financial statements of John Hancock Life Insurance Company (U.S.A.) (the Company), which comprise the balance sheets as of December 31, 2019 and 2018, and the related statements of operations, changes in capital and surplus and cash flow for each of the three years in the period ended December 31, 2019, and the related notes to the financial statements.

 

Management’s Responsibility for the Financial Statements

 

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

 

Auditor’s Responsibility

 

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

 

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

 

As described in Note 2 to the statutory-basis financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services, which is a basis of accounting other than U.S. generally accepted accounting principles. The effects on the financial statements of the variances between these statutory accounting practices and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material.

 

Adverse Opinion on U.S. Generally Accepted Accounting Principles

 

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of the Company at December 31, 2019 and 2018, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2019.

 

1  

 

 

Opinion on Statutory-Basis of Accounting

 

In our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, on the basis of accounting described in Note 2.

 

/s/ Ernst & Young LLP 

Boston, Massachusetts

March 26, 2020

 

2  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

BALANCE SHEETS—STATUTORY BASIS

 

    December 31,  
    2019     2018  
(in millions)            
             
Admitted assets                
Cash and invested assets:                
Bonds   $ 47,193     $ 44,556  
Stocks:                
Preferred stocks     15       14  
Common stocks     1,050       918  
Investments in affiliates     2,824       2,913  
Mortgage loans on real estate     11,647       12,085  
Real estate:                
Company occupied     161       162  
Investment properties     4,045       3,851  
Cash, cash equivalents and short-term investments     3,816       2,988  
Policy loans     2,888       2,788  
Derivatives     13,049       8,511  
Receivable for collateral on derivatives     154       -  
Receivable for securities     2       1  
Other invested assets     9,487       9,728  
Total cash and invested assets     96,331       88,515  
Investment income due and accrued     701       583  
Premiums due     77       65  
Amounts recoverable from reinsurers     216       232  
Funds held by or deposited with reinsured companies     3,042       3,188  
Other reinsurance receivable     225       575  
Amounts due from affiliates     246       244  
Other assets     1,720       2,423  
Assets held in separate accounts     140,747       124,131  
Total admitted assets   $ 243,305     $ 219,956  

 

The accompanying notes are an integral part of these statutory-basis financial statements.

 

3  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

BALANCE SHEETS—STATUTORY BASIS

 

    December 31,  
    2019     2018  
(in millions)            
             
Liabilities and capital and surplus                
Liabilities:                
Policy and contract obligations:                
Policy reserves   $ 65,942     $ 64,047  
Policyholders’ and beneficiaries’ funds     2,260       2,395  
Consumer notes     138       154  
Dividends payable to policyholders     376       393  
Policy benefits in process of payment     456       445  
Other amount payable on reinsurance     545       845  
Other policy obligations     46       46  
Total policy and contract obligations     69,763       68,325  
Payable to parent and affiliates     1,934       1,309  
Transfers to (from) separate account, net     (323 )     (311 )
Asset valuation reserve     2,798       1,981  
Reinsurance in unauthorized companies     190       1  
Funds withheld from unauthorized reinsurers     161       336  
Interest maintenance reserve     1,557       1,373  
Net deferred tax liability     101       77  
Derivatives     7,297       3,719  
Payables for collateral on derivatives     828       1,559  
Payables for securities     520       29  
Funds held under coinsurance     8,074       7,376  
Other general account obligations     1,182       1,181  
Obligations related to separate accounts     140,747       124,131  
Total liabilities     234,829       211,086  
                 
Capital and surplus:                
Preferred stock (par value $1; 50,000,000 shares authorized;                
100,000 shares issued and outstanding at December 31, 2019 and 2018)     -       -  
Common stock (par value $1; 50,000,000 shares authorized;                
4,728,940 shares issued and outstanding at December 31, 2019 and 2018)     5       5  
Paid-in surplus     3,219       3,219  
Surplus notes     585       585  
Unassigned surplus     4,667       5,061  
Total capital and surplus     8,476       8,870  
Total liabilities and capital and surplus   $ 243,305     $ 219,956  

 

The accompanying notes are an integral part of these statutory-basis financial statements.

 

4  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

STATEMENTS OF OPERATIONS—STATUTORY-BASIS

 

    Years Ended December 31,  
    2019     2018     2017  
(in millions)                  
                   
Premiums and other revenues:                        
Life, long-term care and annuity premiums, net   $ 14,948     $ 5,816     $ 18,286  
Consideration for supplementary contracts with life contingencies     145       132       176  
Net investment income     4,406       4,665       4,426  
Amortization of interest maintenance reserve     151       179       195  
Commissions and expense allowance on reinsurance ceded     638       468       1,963  
Reserve adjustment on reinsurance ceded     (7,575 )     (7,820 )     (12,621 )
Separate account administrative and contract fees     1,711       1,786       1,772  
Other revenue     145       193       347  
Total premiums and other revenues     14,569       5,419       14,544  
                         
Benefits paid or provided:                        
Death, surrender and other contract benefits, net     12,851       12,322       12,693  
Annuity benefits     1,122       1,735       1,788  
Disability and long-term care benefits     853       801       738  
Interest and adjustments on policy or deposit-type funds     32       (52 )     (318 )
Payments on supplementary contracts with life contingencies     207       203       199  
Increase (decrease) in life and long-term care reserves     1,863       (5,078 )     1,979  
Total benefits paid or provided     16,928       9,931       17,079  
                         
Insurance expenses and other deductions:                        
Commissions and expense allowance on reinsurance assumed     1,052       1,078       1,091  
General expenses     1,041       1,186       1,039  
Insurance taxes, licenses and fees     159       167       138  
Net transfers to (from) separate accounts     (7,050 )     (7,616 )     (8,706 )
Investment income ceded     1,577       1,052       878  
Other deductions     20       (459 )     153  
Total insurance expenses and other deductions     (3,201 )     (4,592 )     (5,407 )
                         
Income (loss) from operations before dividends to policyholders, federal income taxes and net realized capital gains (losses)     842       80       2,872  
Dividends to policyholders     110       111       124  
Income (loss) from operations before federal income taxes and net realized capital gains (losses)     732       (31 )     2,748  
Federal income tax expense (benefit)     (286 )     (725 )     446  
Income (loss) from operations before net realized capital gains (losses)     1,018       694       2,302  
                         
Net realized capital gains (losses)     198       340       (403 )
Net income (loss)   $ 1,216     $ 1,034     $ 1,899  

 

The accompanying notes are an integral part of these statutory-basis financial statements.

 

5  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS—STATUTORY-BASIS

 

    Preferred and Common Stock     Paid-in Surplus     Surplus Notes     Unassigned Surplus (Deficit)     Total Capital and Surplus  
(in millions)                                        
                                         
Balances at January 1, 2017   $ 5     $ 3,196     $ 585     $ 2,368     $ 6,154  
Net income (loss)                             1,899       1,899  
Change in net unrealized capital gains (losses)                             1,394       1,394  
Change in net deferred income tax                             (726 )     (726 )
Decrease (increase) in non-admitted assets                             191       191  
Change in liability for reinsurance in unauthorized reinsurance                             (1 )     (1 )
Capital contribution from parent     -       23                       23  
Dividend paid to parent                             (900 )     (900 )
Change in surplus as a result of reinsurance                             80       80  
Other adjustments, net                     -       (5 )     (5 )
Balances at December 31, 2017     5       3,219       585       4,300       8,109  
                                         
Net income (loss)                             1,034       1,034  
Change in net unrealized capital gains (losses)                             (220 )     (220 )
Change in net deferred income tax                             (17 )     (17 )
Decrease (increase) in non-admitted assets                             43       43  
Change in liability for reinsurance in unauthorized reinsurance                             3       3  
Decrease (increase) in asset valuation reserves                             125       125  
Dividend paid to parent                             (600 )     (600 )
Change in surplus as a result of reinsurance                             380       380  
Other adjustments, net                     -       13       13  
Balances at December 31, 2018     5       3,219       585       5,061       8,870  
                                         
Net income (loss)                             1,216       1,216  
Change in net unrealized capital gains (losses)                             397       397  
Change in net deferred income tax                             (78 )     (78 )
Decrease (increase) in non-admitted assets                             (46 )     (46 )
Change in liability for reinsurance in unauthorized reinsurance                             (189 )     (189 )
Decrease (increase) in asset valuation reserves                             (817 )     (817 )
Dividend paid to parent                             (845 )     (845 )
Change in surplus as a result of reinsurance                             (29 )     (29 )
Other adjustments, net                     -       (3 )     (3 )
Balances at December 31, 2019   $ 5     $ 3,219     $ 585     $ 4,667     $ 8,476  

 

The accompanying notes are an integral part of these statutory-basis financial statements.

 

6  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

STATEMENTS OF CASH FLOW—STATUTORY-BASIS

 

    Years Ended December 31,  
    2019     2018     2017  
(in millions)                  
Operations                  
Premiums and other considerations collected, net of reinsurance   $ 15,079     $ 13,901     $ 18,819  
Net investment income received     4,394       4,828       4,603  
Separate account fees     1,711       1,786       1,772  
Commissions and expenses allowance on reinsurance ceded     638       468       1,963  
Miscellaneous income     207       668       374  
Benefits and losses paid     (23,052 )     (22,601 )     (28,091 )
Net transfers from (to) separate accounts     7,038       7,670       8,763  
Commissions and expenses (paid) recovered     (3,467 )     (3,763 )     (3,040 )
Dividends paid to policyholders     (127 )     (126 )     (138 )
Federal and foreign income and capital gain taxes (paid) recovered     677       (617 )     (846 )
Net cash provided by (used in) operating activities     3,098       2,214       4,179  
Investment activities                        
Proceeds from sales, maturities, or repayments of investments:                        
Bonds     15,032       22,532       19,287  
Stocks     142       566       317  
Mortgage loans on real estate     1,698       880       885  
Real estate     106       2,507       986  
Other invested assets     1,558       2,066       624  
Net gains (losses) on cash, cash equivalents and short term investments     1       (4 )     4  
Total investment proceeds     18,537       28,547       22,103  
Cost of investments acquired:                        
Bonds     17,230       25,992       21,195  
Stocks     105       114       459  
Mortgage loans on real estate     1,261       1,975       1,179  
Real estate     359       213       415  
Other invested assets     1,354       2,530       1,680  
Derivatives     139       12       46  
Total cost of investments acquired     20,448       30,836       24,974  
Net increase (decrease) in receivable/payable for securities and collateral on derivatives     (395 )     (547 )     217  
Net (increase) decrease in policy loans     (100 )     (62 )     (4 )
Net cash provided by (used in) investment activities     (2,406 )     (2,898 )     (2,658 )
Financing and miscellaneous activities                        
 Surplus notes     -       -       -  
 Borrowed funds     (10 )     (42 )     (164 )
 Net deposits (withdrawals) on deposit-type contracts     (135 )     (288 )     (34 )
 Dividend paid to Parent     (845 )     (600 )     (900 )
 Other cash provided (applied)     1,126       471       (171 )
Net cash provided by (used in) financing and miscellaneous activities     136       (459 )     (1,269 )
Net increase (decrease) in cash, cash equivalents and short-term investments     828       (1,143 )     252  
Cash, cash equivalents and short-term investments at beginning of year     2,988       4,131       3,879  
Cash, cash equivalents and short-term investments at end of year   $ 3,816     $ 2,988     $ 4,131  
Non-cash activities during the year:                        
Premium and other operating activity related to reinsurance transactions, net   $ (109 )   $ 7,873     $ 33  
Transfer of invested assets related to reinsurance transactions and other affiliate transactions, net     109       (7,873 )     16  
Financing and miscellaneous activities related to reinsurance transactions and transfer with affiliates, net     -       -       (49 )

 

The accompanying notes are an integral part of these statutory-basis financial statements.

 

7  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

1. Organization and Nature of Operations

 

John Hancock Life Insurance Company (U.S.A.) (“JHUSA” or the “Company”) is a wholly-owned subsidiary of The Manufacturers Investment Corporation (“MIC”). MIC is a wholly-owned subsidiary of John Hancock Financial Corporation (“JHFC”), which is an indirect, wholly-owned subsidiary of The Manufacturers Life Insurance Company (“MLI”). MLI, in turn, is a wholly-owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian-based, publicly traded financial services holding company.

 

The Company is licensed to conduct insurance business in 49 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, and provides a wide range of financial protection and wealth management products and services to both individual and institutional customers located primarily in the United States. Through its insurance operations, the Company offers a variety of individual life insurance products that are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Company also offers mutual fund products and services which include a variety of retirement products to retirement plans. The Company distributes these products through multiple distribution channels, including insurance agents and affiliated brokers, securities brokerage firms, financial planners, pension plan sponsors, pension plan consultants, and banks. The Company discontinued new sales of its individual long-term care product but maintains in-force retail and group long-term care business. Effective March 31, 2018, the Company discontinued new sales of its corporate and bank-owned life insurance products.

 

The Company is also registered as a foreign reinsurer in several jurisdictions outside of the United States as part of its International Group Program that offers pooling services and reinsurance coverage for group employee contracts issued by its network partners to local companies, which are subsidiaries, branches or affiliates of multinational corporations.

 

Pursuant to a distribution agreement with the Company, John Hancock Distributors LLC (“JHD”), a registered broker-dealer and a wholly-owned subsidiary of the Company, acts as the principal underwriter of variable life contracts and other products issued by the Company.

 

The Company has two wholly-owned life insurance subsidiaries, John Hancock Life Insurance Company of New York (“JHNY”) and John Hancock Life & Health Insurance Company (“JHLH”) and a wholly-owned captive insurance subsidiary, Manulife (Michigan) Reassurance Company (“MMRC”).

 

In 2017, following receipt of regulatory approval, JHLH executed a Plan and Agreement of Merger with John Hancock Insurance Company of Vermont (“JHVT”), also a wholly-owned subsidiary of JHUSA. Effective as of October 1, 2017, JHVT merged with and into JHLH. Prior to the JHLH/JHVT merger, JHUSA issued one common share to its parent MIC in exchange for 100% ownership of JHVT and became the common parent of both JHLH and JHVT. As a result of the merger, JHVT ceased to exist and the companies’ property and obligations became the property and obligations of JHLH.

 

2. Significant Accounting Policies

 

Use of Estimates

 

The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known and may impact the amounts reported and disclosed herein.

 

Basis of Presentation

 

These financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services (the “Insurance Department”). The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of practices prescribed or permitted by the State of Michigan. The Michigan Director of the Department of Insurance and Financial Services (the “Director”) has the authority to prescribe or permit other specific practices that deviate from prescribed practices. NAIC SAP practices differ from accounting principles generally accepted in the United States (“GAAP”) as described below.

 

8  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Investments: Investments in bonds not backed by other loans are principally stated at amortized cost using the constant yield (interest) method. Bonds can also be stated at the lesser of amortized cost or fair value based on their NAIC designated rating. Non-redeemable preferred stocks, which have characteristics of equity securities, are reported at cost or lower of cost or market value as determined by the Securities Valuation Office of the NAIC (“SVO”) rating, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes. Redeemable preferred stocks, which have characteristics of debt securities and are rated as medium quality or better, are reported at cost or amortized cost. All other redeemable preferred stocks are reported at the lower of cost, amortized cost, or fair value.

 

For bonds other than loan-backed and structured securities, the Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. The Company recognizes other-than-temporary impairment losses on bonds with unrealized losses when the entity does not have the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in value. Declines in value due to credit difficulties are also considered to be other-than-temporarily impaired when the Company does not have the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in value. The entire difference between amortized cost and fair value on such bonds with credit difficulties is recognized as an impairment loss in income.

 

Loan-backed and structured securities (i.e., collateralized mortgage obligations) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discounts or amortization of premiums of such securities using either the retrospective or prospective methods. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities and such securities with NAIC designations of 3-6, which are valued using the prospective method. If it is determined that a decline in fair value is other-than-temporary, the cost basis of the security is written down to the present value of estimated future cash flows using the original effective interest rate inherent in the security.

 

Common stocks are primarily reported at fair value based on quoted market prices and the related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustment for federal income taxes. There are no restrictions on common and preferred stocks.

 

Insurance subsidiaries are reported at their underlying audited statutory equity. Non-insurance subsidiaries, which have significant ongoing operations other than for the benefit of the Company and its affiliates, are reported based on the underlying audited GAAP equity. Non-insurance subsidiaries, which have no significant ongoing operations other than for the benefit of the Company and its affiliates, are reported based on the underlying audited GAAP equity, including the admitted portion of goodwill. Dividends from subsidiaries are included in net investment income. The remaining net change in the subsidiaries’ equity is included in the change in net unrealized capital gains (losses).

 

Realized capital gains (losses) on sales of securities are recognized using the first in, first out (“FIFO”) method. The cost basis of bonds, common and preferred stocks, and other invested assets is adjusted for impairments in value deemed to be other-than-temporary and such adjustments are reported as a component of net realized capital gains (losses).

 

Mortgage loans on real estate are reported at unpaid principal balances, less an allowance for impairments. Valuation allowances, if necessary, are established for mortgage loans on real estate based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines foreclosure is probable and the impairment is other-than-temporary, the mortgage loan is written down and a realized loss is recognized.

 

Real estate occupied by the Company and real estate held for the production of income are reported at depreciated cost, net of related obligations. Real estate that the Company has the intent to sell is reported at the lower of depreciated cost or fair value, net of related obligations. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. Investment income and operating expenses include rent for the Company’s occupancy of Company owned properties.

 

9  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost. Short-term investments include investments with maturities of one year or less and greater than three months at the date of acquisition and are principally stated at amortized cost.

 

Policy loans are reported at unpaid principal balances.

 

Derivative instruments that meet the criteria to qualify for hedge accounting are accounted for in a manner consistent with the item hedged (i.e., amortized cost or fair value with the related net unrealized capital gains (losses) reported in unassigned surplus along with any adjustment for federal income taxes). Derivative instruments that are entered into for other hedging purposes, also known as economic hedges, do not meet the criteria to qualify for hedge accounting. These derivative instruments are accounted for at fair value, and the related changes in fair value are recognized as net unrealized capital gains (losses) reported in unassigned surplus, net of any adjustments for federal income taxes. Embedded derivatives are not accounted for separately from the host contract.

 

Other invested assets consist of ownership interests in partnerships and limited liability companies (“LLCs”) which are carried based on the underlying audited GAAP equity, with the exception of affordable housing tax credit properties, which are carried at amortized cost. The related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustments for federal income taxes. The Company records its share of income using the most recent financial information available, which is generally on a three month lag. Depending on the timing of receipt of the audited financial statements of these other invested assets, the investee level financial data may be up to one year in arrears.

 

Interest Maintenance and Asset Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains (losses) on sales of fixed income investments, principally bonds and mortgage loans, and interest-related hedging activities that are attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. That net deferral is reported as the interest maintenance reserve (“IMR”) in the accompanying Balance Sheets. Realized capital gains (losses) are reported in income, net of federal income tax and transferred to the IMR. The asset valuation reserve (“AVR”) provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus.

 

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company.

 

Goodwill: Goodwill is admitted subject to an aggregate limitation of 10% of the capital and surplus in the most recently filed quarterly statement, excluding electronic data processing (“EDP”) equipment, operating system software, net deferred tax assets, and net positive goodwill. Goodwill is amortized over the period the Company benefits economically, not to exceed 10 years. Goodwill held by non-insurance subsidiaries is assessed in accordance with GAAP, subject to certain limitations for holding companies and foreign insurance subsidiaries. Goodwill is reported in other invested assets in the Balance Sheets.

 

Separate Accounts: Separate account assets and liabilities reported in the accompanying Balance Sheets represent funds that are separately administered, principally for annuity contracts and variable life insurance policies, and for which the contract holder, rather than the Company, bears the investment risk. Separate account obligations are intended to be satisfied from separate account assets and not from assets of the general account. Separate accounts are generally reported at fair value. The operations of the separate accounts are not included in the Statements of Operations; however, income earned on amounts initially invested by the Company in the formation of new separate accounts is included in other revenue. Fees charged to contract holders, principally mortality, policy administration, and surrender charges are included in separate account administrative and contract fees. The assets in the separate accounts are not pledged to others as collateral or otherwise restricted. For the years ended December 31, 2019, 2018 and 2017, there were no gains (losses) on transfers of assets from the general account to the separate account.

 

Nonadmitted Assets: Certain assets designated as nonadmitted, principally other invested assets, furniture and equipment, prepaid expenses, and other assets not specifically identified as an admitted asset within the NAIC SAP are excluded from the accompanying Balance Sheets and are charged directly to unassigned surplus.

 

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred.

 

10  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Policy Reserves: Reserves for life, long-term care, annuity, and deposit-type contracts are developed by actuarial methods and are determined based on interest rates, mortality tables and valuation methods prescribed by the NAIC that will provide, in the aggregate, reserves that are greater than or equal to the maximum of guaranteed policy cash values or the amounts required by the Insurance Department.

 

● The Company waives deduction of deferred fractional premiums on the death of lives insured and annuity contract holders and returns any premium beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. At December 31, 2019 and 2018, the Company held reserves of $ 1,032 million and $ 1,212 million, respectively, on insurance in-force for which gross premiums were less than net premiums according to the standard of valuation set by the State of Michigan.

 

● Reserves for individual life insurance policies are maintained using the 1941, 1958, 1980, 2001 and 2017 Commissioner’s Standard Ordinary Mortality Tables and using principally the Commissioner’s Reserve Valuation Method. Policies using the principle-based reserving (“PBR”) method use assumptions as outlined in the Company’s PBR Actuarial Report.

 

● Annuity and supplementary contracts with life contingency reserves are based principally on modifications of the 1937 Standard Annuity Table, the Group Annuity Mortality Tables for 1951, 1971, 1983, and 1994, the 1971 and 1983 Individual Annuity Mortality Tables, the A-2000 Individual Annuity Mortality Table, and the 2012 Individual Annuity Mortality Table.

 

● Liabilities related to policyholder funds left on deposit with the Company are generally equal to fund balances.

 

● Long-term care reserves are generally calculated using the one-year preliminary term method based on various mortality, morbidity, and lapse tables.

 

● For life insurance, the calendar year exact method is used to calculate the reserve at December 31, 2019 and 2018. Reserves at December 31, 2019 and 2018 are calculated based on the rated age. For certain policies with substandard table ratings, substandard multiple extras are applied via the Lotter method.

 

● For long-term care, the interpolated reserve method is used to adjust the calculated terminal reserve, and in addition an unearned premium reserve is held.

 

● Tabular interest, tabular less actual reserve released, and tabular costs have been determined by formula. Tabular interest on funds not involving life contingencies is calculated as one percent of the product of such valuation rate of interest times the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the valuation year.

 

● From time to time, the Company finds it appropriate to modify certain required policy reserves because of changes in actuarial assumptions. Reserve modifications resulting from such determinations are recorded directly to unassigned surplus.

 

● Reserves for variable deferred annuity contracts are calculated in accordance with NAIC Actuarial Guideline 43. The reserve is based on the worst present value of accumulated losses from the perspective of the Company. The liability is evaluated under both a standard scenario and stochastic scenario, and the Company holds the higher of the standard or stochastic values. The Company is currently assessing the impact of adopting the Valuation Manual (“VM”) guideline VM-21 – Requirements for Principle-Based Reserves for Variable Annuities for the full in-force block in 2020.

 

Reinsurance: Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under the reinsurance agreements. Failure of the reinsurers to honor their obligations could result in losses to the Company; consequently, estimates are established for amounts deemed or estimated to be uncollectible. To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar characteristics of the insurer.

 

11  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Premiums, commissions, expense reimbursements, benefits, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premium income. Amounts applicable to reinsurance ceded for future policy benefits, unearned premium reserves, and claim liabilities have been reported as reductions of these items.

 

The Company records a liability for unsecured policy reserves ceded to reinsurers not authorized in the State of Michigan to assume such business. Changes to those amounts are credited or charged directly to unassigned surplus. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves. Commissions and expense allowances allowed by reinsurers on business ceded are reported as income when received. Investment income ceded includes separate account fee income, net investment income and realized investment and other gains (losses), which was ceded to the affiliated reinsurers. NAIC SAP prescribes that no gain be recognized upon inception of a reinsurance treaty. The initial gain is recorded directly to unassigned surplus and released into income over the life of the treaty.

 

Federal Income Taxes: Total federal income taxes are based upon the Company’s best estimate of its current and deferred tax assets or liabilities. Current tax expense is reported in the Statements of Operations as federal income tax expense if resulting from operations and within net realized capital gains (losses) if resulting from capital transactions. Changes in the balances of deferred taxes, which provide for book versus tax temporary differences, are subject to limitations and are reported within various lines within surplus. The provision for federal and foreign income taxes incurred in the Statements of Operations is different from that which would be obtained by applying the statutory federal income tax rate to income before income tax (including realized capital gains). For additional information, see the Federal Income Taxes Note for reconciliation of effective tax rate.

 

Participating Insurance and Policyholder Dividends: Participating business represented approximately 15% and 16% of the Company’s aggregate reserve for life contracts at December 31, 2019 and 2018, respectively. The amount of policyholders’ dividends to be paid is approved annually by the Company’s Board of Directors. Policyholder dividends are recognized when declared rather than over the term of the related policies. The determination of the amount of policyholders’ dividends is complex and varies by policy type. In general, the aggregate amount of policyholders’ dividends is calculated based upon actual interest, mortality, morbidity, persistency, and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by the Company.

 

Surplus Notes: Surplus notes are reported in capital and surplus, and the interest expense is not accrued unless approved for payment by the Insurance Department.

 

Statements of Cash Flow: Cash, cash equivalents and short-term investments in the Statements of Cash Flow represent movements of cash and highly liquid debt investments with initial maturities of one year or less.

 

Premiums and Benefits: Premiums for whole, term, and universal life, long-term care, annuity policies, and group annuity contracts with any mortality and morbidity risk are recognized as revenue when due. Revenues for universal life and annuity policies with mortality or morbidity risk, except for term certain supplementary contracts, consist of the entire premium received. Premiums received for variable universal life, as well as annuity policies and group annuity contracts without mortality or morbidity risk are recorded using deposit accounting and are credited directly to an appropriate policy reserve account, without recognizing premium revenue. Benefits incurred represent the total of death benefits paid, annuity benefits paid and the change in policy reserves.

 

Policy and Contract Claims: Policy and contract claims are determined on an individual-case basis for reported losses. Estimates of incurred but not reported losses are developed on the basis of past experience.

 

Guaranty Fund Assessments: Guaranty fund assessments are accrued when the Company receives knowledge of an insurance insolvency.

 

Variances Between NAIC SAP and GAAP: The more significant variances from GAAP are: (a) bonds would generally be reported at fair value; (b) changes in the fair value of derivative financial instruments would generally be reported as revenue unless deemed an effective hedge; (c) embedded derivatives would be bifurcated from the underlying contract or security and accounted for separately at fair value; (d) income recognition on partnerships and LLCs, which are accounted for under the equity method, would not be limited to the amount of cash distribution; (e) majority-owned noninsurance subsidiaries,

 

12  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

variable interest entities where the Company is the primary beneficiary, and certain other controlled entities would be consolidated; (f) changes in the balances of deferred income taxes would generally be included in net income; (g) market value adjusted (“MVA”) annuity products would be reported in the general account of the Company; (h) all assets, subject to valuation allowances, would be recognized; (i) reserves would generally be based upon the net level premium method or the estimated gross margin method with estimates of future mortality, morbidity, persistency and interest; (j) reinsurance ceded, unearned ceded premium and unpaid ceded claims would be reported as an asset; (k) AVR and the IMR would not be recorded; (l) changes to the mortgage loan valuation allowance would be reported in income; (m) surplus notes would be reported as liabilities; (n) premiums received in excess of policy charges for universal life and annuity policies would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values; (o) certain acquisition costs, such as commissions and other variable costs, directly related to acquiring new business are charged to current operations as incurred, would generally be capitalized and amortized based on profit emergence over the expected life of the policies or over the premium payment period; and (p) changes in unrealized capital gains (losses) and foreign currency translations would be presented as other comprehensive income.

 

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined, but are presumed to be material.

 

3. Permitted Statutory Accounting Practices

 

The financial statements of the Company are presented in conformity with accounting practices prescribed or permitted by the Insurance Department.

 

For determining the Company’s solvency under the State of Michigan’s insurance laws and regulations, the Insurance Department recognizes only statutory accounting practices prescribed or permitted by the State of Michigan for determining and reporting the financial condition and results of operations of the Company. NAIC SAP has been adopted as a component of practices prescribed or permitted by the State of Michigan. The Director has the authority to prescribe or permit other specific practices that deviate from prescribed practices.

 

As of December 31, 2019 and 2018, the Director had not prescribed or permitted the Company to use any accounting practices that would result in the Company’s income or financial position to deviate from NAIC SAP.

 

4. Accounting Changes

 

Accounting changes adopted to conform to the provisions of NAIC SAP are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of unassigned surplus at the beginning of the year and the amount of unassigned surplus that would have been reported at that date if the new accounting principle had been applied retrospectively.

 

13  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Adoption of New Accounting Standards

 

Effective December 31, 2019, the NAIC made non-substantive revisions to Statement of Statutory Accounting Principles (“SSAP”) No. 100R, Fair Value Measurements to adopt with modification the disclosure amendments reflected in Accounting Standards Update (“ASU”) 2018-13 Changes to the Disclosure Requirements for Fair Value Measurement. The revisions included elimination of certain fair value disclosures. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

Effective January 1, 2018, the NAIC made substantive revisions to SSAP No. 100, Fair Value Measurements. The revised guidance allows the use of net asset value as a practical expedient for fair value when 1) specifically allowed in a SSAP or 2) when specific conditions exist. The Company adopted the amendment in 2018. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

Effective January 1, 2018, the NAIC made substantive revisions to SSAP No. 86, Accounting for Derivative Instruments and Hedging, Income Generation, and Replication (Synthetic Asset) Transactions to adopt ASU 2017-04 Settlement of Valuation Margin. The revised guidance requires the recognition of changes in variation margin as unrealized gains/losses until the derivative contract has matured, terminated and/or expired. The guidance applies to both over-the-counter (“OTC”) derivatives and (“ETF”) exchange-traded futures, regardless of whether the counterparty or exchange considers the variation margin payment to be collateral or a legal settlement. The Company adopted the amendment in 2018. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

In November 2018, the NAIC made non-substantive revisions to SSAP No. 51R – Life Contracts to adopt ASU 2018-28 Updates to Liquidity Disclosures. The revisions included enhancements to the existing disclosures on annuity actuarial reserves and deposit type liabilities by withdrawal characteristics and added life liquidity disclosures. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

In November 2018, the NAIC made non-substantive revisions to SSAP No. 86 - Derivatives to incorporate hedge documentation and assessment efficiencies from ASU 2017-12 Targeted Improvements to Accounting for Hedging Activities as issued by Financial Accounting Standards Board (“FASB”). The revisions will allow companies to perform subsequent assessments of hedge effectiveness qualitatively if certain conditions are met, allow companies more time to perform the initial quantitative hedge effectiveness assessment and clarify that companies may apply the “criterial terms match” method for a group of forecasted transactions if they meet the requirements. The revisions were effective beginning January 1, 2019 and the Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

In March 2017, the NAIC made substantive revisions to SSAP No. 69 – Statement of Cash Flow to adopt ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments as issued by the FASB, without modifications. The revisions clarified the classification of eight specific cash flow issues with the objective of reducing diversity in practice. The amendment is to be applied retrospectively, effective for fiscal years beginning after December 15, 2018 and interim periods within those years. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

In June 2017, the NAIC adopted revisions to SSAP No. 37, Mortgage Loans. The revision requires an age analysis of mortgage loans disclosure, aggregated by type, with identification of mortgage loans in which the entity is a participant or co-lender in a mortgage loan agreement, capturing: 1) recorded investment of current mortgage loans, 2) recorded investment of mortgage loans classified as 30-59 days, 60-89 days, 90-179 days, and 180 days and greater past due; 3) recorded investment of mortgage loans 90 days and 180 days past due still accruing interest; 4) interest accrued for mortgage loans 90 days and 180 days past due; and 5) recorded investment and number of mortgage loans where interest has been reduced, by percent reduced. The Company adopted the amendment in 2018. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

14  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

In August 2017, the NAIC adopted non-substantive revisions to SSAP No. 69 – Statement of Cash Flow to adopt ASU 2016-18 Statement of Cash Flows: Restricted Cash as issued by the FASB. The revision clarifies that restricted cash and cash equivalents shall not be reported as operating, investing or financing activities, but shall be reported with cash and cash equivalents when reconciling beginning and ending amounts on the cash flow statement. A consequential change was incorporated in SSAP No. 1 – Accounting Policies, Risks & Uncertainties and Other Disclosures to ensure information on restricted cash, cash equivalents and short-term investments is reported in the restricted asset disclosure. The revision was effective December 31, 2019, to be adopted retrospectively to allow for comparative cash flow statements. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

In August, 2016, the NAIC adopted substantive revisions to SSAP No. 51 – Life Contracts in order to allow principle-based reserving (“PBR”) for life insurance contracts as specified in the Valuation Manual. Current statutory accounting guidance refers to existing model laws for reserving guidance which are primarily based on formulaic methodology. Also, in June 2016, the NAIC adopted updates to Appendix A-820: Minimum Life and Annuity Reserve Standards as part of the PBR project, which incorporate relevant aspects of the 2009 revisions to the Standard Valuation Law (Model #820) into Appendix A-820. The effective date was January 1, 2017 but companies are allowed to defer adoption for three years until January 1, 2020. The Company has adopted PBR for certain products launched in 2018 and 2019. As of January 1, 2020, PBR will be implemented for all new life insurance contracts. Adoption will be on a prospective basis for policies issued on or after the adoption date, therefore, we expect no impact to surplus upon adoption.

 

Future Adoption of New Accounting Standards

 

In November 2018, the NAIC adopted SSAP No. 108 – Derivatives Hedging Variable Annuity Guarantees as a substantive guidance which permits and specifies the requirements for applying a special accounting treatment for derivative contracts hedging variable annuity guarantee benefits that are subject to fluctuations as a result of interest rate sensitivity. The provisions of SSAP No. 108 are separate and distinct from the statutory guidance in SSAP No. 86 - Derivatives. Application of the adopted guidance is limited to the derivative transactions specified in SSAP No. 108 and permitted only if all of the requirements for the special accounting treatment are met. The guidance is effective beginning January 1, 2020. The Company is currently assessing the impact of this guidance on its financial statements.

 

On September 22, 2017, The Bilateral Agreement Between the United States of America and the European Union (EU) on Prudential Measures Regarding Insurance and Reinsurance, known as the Covered Agreement, was signed by the United States Department of the Treasury and the US Trade Representative.   The Covered Agreement includes provisions that serve to reduce reinsurance collateral requirements for certified reinsurers that are licensed and domiciled in Qualified Jurisdictions.   On June 25, 2019, the NAIC Executive Committee adopted revisions to the Credit for Reinsurance Model Law (#785) and the Credit for Reinsurance Model Regulation (#786) to incorporate relevant provisions from the Covered Agreement. On December 7, 2019, the Statutory Accounting Principles (E) Working Group adopted revisions to Appendix A-785 to incorporate the updates from the adopted Credit for Reinsurance Model Law (#785) and the Credit for Reinsurance Model Regulation (#786) that include the relevant provisions from the Covered Agreement.  The Company is assessing the impact on the Company’s financial position, results of operations, and financial statement disclosures.

 

Reconciliation Between Audited Financial Statements and NAIC Annual Statements

 

There were no differences in net income (loss) or capital and surplus between the audited financial statements and the NAIC statements as filed as of and for the years ended December 31, 2019, 2018 and 2017.

 

15  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

5. Investments

 

Bonds

 

The carrying value and fair value of the Company’s investments in bonds are summarized as follows:

 

    Carrying Value     Gross Unrealized Gains     Gross Unrealized Losses     Fair Value  
(in millions)                                
December 31, 2019:                                
U.S. government and agencies   $ 3,468     $ 225     $ (37 )   $ 3,656  
States and political subdivisions     2,661       509       (3 )     3,167  
Foreign governments     2,372       70       (10 )     2,432  
Corporate bonds     32,496       4,123       (58 )     36,561  
Mortgage-backed and asset-backed securities     6,196       601       (2 )     6,795  
Total bonds   $ 47,193     $ 5,528     $ (110 )   $ 52,611  
                                 
                                 
December 31, 2018:                                
U.S. government and agencies   $ 3,052     $ 123     $ (16 )   $ 3,159  
States and political subdivisions     2,272       297       (13 )     2,556  
Foreign governments     2,370       54       (12 )     2,412  
Corporate bonds     31,188       1,749       (832 )     32,105  
Mortgage-backed and asset-backed securities     5,674       249       (106 )     5,817  
Total bonds   $ 44,556     $ 2,472     $ (979 )   $ 46,049  

 

A summary of the carrying value and fair value of the Company’s investments in bonds at December 31, 2019, by contractual maturity, is as follows:

 

    Carrying Value     Fair Value  
(in millions)                
Due in one year or less   $ 499     $ 551  
Due after one year through five years     5,720       5,882  
Due after five years through ten years     8,302       8,942  
Due after ten years     26,476       30,441  
Mortgage-backed and asset-backed securities     6,196       6,795  
Total   $ 47,193     $ 52,611  

 

The expected maturities in the foregoing table may differ from the contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

The Company maintains assets which are pledged as collateral in connection with various agreements and transactions. Additionally, the Company holds assets on deposit with government authorities as required by state law. The following table summarizes the carrying value or fair value, as applicable, of the pledged or deposited assets:

 

16  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    December 31,  
    2019     2018  
(in millions)            
At fair value:            
Bonds and cash pledged in support of over-the-counter derivative instruments   $ 211     $ 265  
Bonds and cash pledged in support of exchange-traded futures     344       362  
Bonds and cash pledged in support of cleared interest rate swaps     880       337  
Total fair value   $ 1,435     $ 964  
At carrying value:                
Bonds on deposit with government authorities   $ 14     $ 14  
Mortgage loans pledged in support of real estate     -       -  
Bonds held in trust     93       93  
Pledged collateral under reinsurance agreements     2,755       2,508  
Total carrying value   $ 2,862     $ 2,615  

 

At December 31, 2019 and 2018, the Company held below investment grade corporate bonds of $2,412 million and $2,856 million, with an aggregate fair value of $2,508 million and $2,830 million, respectively. The Company performs periodic evaluations of the relative credit standing of the issuers of these bonds.

 

The Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions, and other similar factors. This process also involves monitoring late payments, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues.

 

At the end of each quarter, the MFC Loan Review Committee reviews all securities where there is evidence of impairment or a significant unrealized loss at the Balance Sheet date.  Impairment is considered to have occurred, based on management’s judgment, when it is deemed probable that the Company will not be able to collect all amounts due according to the debt security’s contractual terms.  The analysis focuses on each company’s or project’s ability to service its debts in a timely fashion and the length of time the security has been trading below amortized cost. The results of this analysis are reviewed by the Transaction and Portfolio Review Committee at MFC. This committee includes MFC’s Chief Financial Officer, Chief Investment Officer, Chief Risk Officer, Chief Credit Officer, and other senior management. This quarterly process includes a fresh assessment of the credit quality of each investment in the entire fixed maturity security portfolio.

 

The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary. Relevant facts and circumstances considered include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer, including the current and future impact of any specific events; and (3) the Company’s ability and intent to hold the security to maturity or until it recovers in value. To the extent the Company determines that a security, other than loan-backed and structured securities, is deemed to be other-than-temporarily impaired, the difference between book value and fair value would be charged to income. For loan-backed and structured securities in an unrealized loss position, where the Company does not intend to sell or is not likely to be required to sell the security, the Company calculates an other-than-temporary impairment loss by subtracting the net present value of the projected future cash flows of the security from the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The projection of future cash flows is subject to the same analysis the Company applies to its overall impairment evaluation process, as noted above, which incorporates security specific information such as late payments, downgrades by rating agencies, key financial ratios, financial statements, and fundamentals of the industry and geographic area in which the issuer operates, as well as overall macroeconomic conditions. The cash flow estimates, including prepayment assumptions, are based on data from third-party data sources or internal estimates, and are driven by assumptions regarding the underlying collateral, including default rates, recoveries, and changes in value.

 

There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if impairment is other-than-temporary. These risks and uncertainties include (1) the risk that the Company’s assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that

 

17  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

issuer; (2) the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; (3) the risk that fraudulent information could be provided to the Company’s investment professionals who determine the fair value estimates and other-than-temporary impairments; and (4) the risk that new information obtained by the Company or changes in other facts and circumstances lead the Company to change its intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to income in a future period.

 

At December 31, 2019 and 2018, the Company had no Other-Than-Temporary Impairments (OTTI) for loan-backed and structured securities.

 

When a decline in fair value is other-than-temporary, an impairment loss is recognized as a realized loss equal to the entire difference between the bond’s carrying value or amortized cost and its fair value.

 

The following table shows gross unrealized losses and fair values of bonds, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

 

    Less than 12 months     12 months or more     Total  
    Fair Value     Gross Unrealized Losses     Fair Value     Gross Unrealized Losses     Fair Value     Gross Unrealized Losses  
(in millions)                                    
December 31, 2019:                                    
U.S. government and agencies   $ 1,619     $ (36 )   $ 63     $ (1 )   $ 1,682     $ (37 )
States and political subdivisions     110       (3 )     -       -       110       (3 )
Foreign governments     -       -       49       (10 )     49       (10 )
Corporate bonds     1,074       (12 )     512       (46 )     1,586       (58 )
Mortgage-backed and asset-backed securities     57       (1 )     139       (1 )     196       (2 )
Total   $ 2,860     $ (52 )   $ 763     $ (58 )   $ 3,623     $ (110 )
                                                 
    Less than 12 months     12 months or more     Total
    Fair Value     Gross Unrealized Losses     Fair Value     Gross Unrealized Losses     Fair Value     Gross Unrealized Losses  
(in millions)                                                
December 31, 2018:                                                
U.S. government and agencies   $ 384     $ (2 )   $ 205     $ (14 )   $ 589     $ (16 )
States and political subdivisions     199       (5 )     113       (8 )     312       (13 )
Foreign governments     10       -       75       (12 )     85       (12 )
Corporate bonds     14,077       (583 )     3,429       (249 )     17,506       (832 )
Mortgage-backed and asset-backed securities     1,769       (51 )     967       (55 )     2,736       (106 )
Total   $ 16,439     $ (641 )   $ 4,789     $ (338 )   $ 21,228     $ (979 )

 

At December 31, 2019 and 2018, there were 172 and 1,383 bonds that had a gross unrealized loss, of which the single largest unrealized loss was $29 million and $43 million, respectively. The Company anticipates that these bonds will perform in accordance with their contractual terms and the Company currently has the ability and intent to hold these bonds until they recover or mature. Unrealized losses can be created by rising interest rates or by rising credit concerns and therefore

 

18  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

widening credit spreads. Credit concerns are apt to play a larger role in the unrealized loss on below investment grade securities. Unrealized losses on investment grade securities principally relate to changes in interest rates or changes in credit spreads since the securities were acquired. Credit rating agencies’ statistics indicate that investment grade securities have been found to be less likely to develop credit concerns.

 

For the years ended December 31, 2019, 2018 and 2017, realized capital losses include $27 million, $72 million, and $3 million related to bonds that have experienced an other-than-temporary decline in value and were comprised of 13, 21, and 4 securities, respectively.

 

The total recorded investment in restructured corporate bonds at December 31, 2019, 2018 and 2017 was $0 million, $0 million, and $3 million, respectively. There were 1, 1, and 1 restructured corporate bonds for which an impairment was recognized during 2019, 2018 and 2017, respectively. The Company accrues interest income on impaired securities to the extent deemed collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans generally is recognized on a cash basis.

 

The sales of investments in bonds, including non-cash sales from reinsurance transactions, resulted in the following:

 

    Years Ended
December 31,		  
    2019     2018     2017  
(in millions)                  
Proceeds   $ 12,389     $ 28,102     $ 17,663  
Realized gross gains     356       729       557  
Realized gross losses     (50 )     (407 )     (33 )

 

The Company had no nonadmitted accrued investment income from bonds (unaffiliated) at December 31, 2019 and 2018.

 

Affiliate Transactions

 

In 2019, the company seeded certain bonds to an affiliate, John Hancock Funding Company LLC, (“JHFLLC”). These bonds had a book value of $63 million and fair value of $62 million. The Company recognized $1 million in pre-tax realized losses before transfer to the IMR.

 

In 2019, the Company sold certain bonds to an affiliate, John Hancock Reassurance Company Limited (“JHRECO”). These bonds had a book value of $893 million and fair value of $943 million. The Company recognized $50 million in pre-tax realized gains before transfer to the IMR.

 

In 2019, the Company sold certain bonds to an affiliate, JHLH. These bonds had a book value of $82 million and fair value of $93 million. The Company recognized $11 million in pre-tax realized gains before transfer to the IMR.

 

In 2019, the Company sold certain bonds to an affiliate, JHNY. These bonds had a book value of $121 million and fair value of $130 million. The Company recognized $9 million in pre-tax realized gains before transfer to the IMR.

 

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHNY, for $123 million.

 

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHLH, for $98 million.

 

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHRECO, for $1,088 million.

 

In 2019, the Company acquired at fair value, certain bonds from an affiliate, Manulife Reinsurance Bermuda Ltd (“MRBL”), for $109 million in lieu of a reinsurance cash settlement.

 

In 2019, the Company acquired at fair value, certain bonds from an affiliate, MRBL, for $27 million.

 

19  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHFLLC, for $3 million.

 

In 2018, the Company sold certain bonds to an affiliate, MRBL. These bonds had a book value of $449 million and fair value of $501 million. The Company recognized $52 million in pre-tax realized gains before transfer to the IMR.

 

In 2018, the Company sold certain bonds to an affiliate, JHNY. These bonds had a book value of $293 million and fair value of $313 million. The Company recognized $20 million in pre-tax realized gains before transfer to the IMR.

 

In 2018, the Company sold certain bonds and stocks to an affiliate, JHFLLC. These bonds and stocks had a book value of $53 million and fair value of $53 million. The Company did not recognize any pre-tax realized gains before transfer to the IMR.

 

In 2018, the Company acquired at fair value, certain bonds from an affiliate, JHNY, for $647 million.

 

In 2018, the Company acquired at fair value, certain bonds from an affiliate, JHLH, for $48 million.

 

In 2017, the Company sold certain private placements to an affiliate, The Manufacturers Life Insurance Company Bermuda Branch (“MLI Bermuda”). These private placements had a book value of $208 million and fair value of $226 million. The Company recognized $18 million in pre-tax realized gains before transfer to the IMR.

 

In 2017, the Company sold certain bonds to an affiliate, MRBL. These bonds had a book value of $204 million and fair value of $227 million. The Company recognized $23 million in pre-tax realized gains before transfer to the IMR.

 

In 2017, the Company sold certain bonds to an affiliate, JHLH. These bonds had a book value of $263 million and fair value of $304 million. The Company recognized $41 million in pre-tax realized gains before transfer to the IMR.

 

In 2017, the Company sold certain bonds to an affiliate, JHRECO. These bonds had a book value of $172 million and fair value of $200 million. The Company recognized $28 million in pre-tax realized gains before transfer to the IMR.

 

In 2017, the Company sold certain bonds to its indirect parent, MLI. These bonds had a book value of $448 million and fair value of $521 million. The Company recognized $73 million in pre-tax realized gains before transfer to the IMR.

 

In 2017, the Company sold certain bonds to an affiliate, Manulife Securities Ltd Partner (“MSLP”). These bonds had a book value of $412 million and fair value of $435 million. The Company recognized $23 million in pre-tax realized gains before transfer to the IMR.

 

In 2017, the Company acquired at fair value, certain bonds from an affiliate, JHLH, for $177 million.

 

In 2017, the Company acquired at fair value, certain bonds from an affiliate, MRBL, for $100 million.

 

20  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Preferred and Common Stocks

 

Cost and fair value of the Company’s investments in preferred and common stocks are summarized as follow:

 

    Cost     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
(in millions)                                
December 31, 2019:                                
Preferred stocks:                                
Nonaffiliated   $ 15     $ 4     $ -     $ 19  
Affiliates     -       -       -       -  
Common stocks:                                
Nonaffiliated     784       283       (17 )     1,050  
Affiliates*     1,589       1,235       -       2,824  
Total stocks   $ 2,388     $ 1,522     $ (17 )   $ 3,893  
                                 
                                 
    Cost    

Gross

Unrealized

Gains

    

Gross

Unrealized

Losses

     Fair Value  
(in millions)                                
December 31, 2018:                                
Preferred stocks:                                
Nonaffiliated   $ 14     $ 1     $ -     $ 15  
Affiliates     -       -       -       -  
Common stocks:                                
Nonaffiliated     791       157       (30 )     918  
Affiliates*     1,589       1,324       -       2,913  
Total stocks   $ 2,394     $ 1,482     $ (30 )   $ 3,846  
                                 
*Affiliates - fair value represents the carrying value

 

At December 31, 2019 and 2018, there were 120 and 309 nonaffiliated equity securities that had a gross unrealized loss excluding securities that have been written down to zero. The single largest unrealized loss was $4 million and $3 million at December 31, 2019 and 2018, respectively. The Company anticipates that these equity securities will recover in value in the near term.

 

The Company has a process in place to identify equity securities that could potentially have an impairment that is other-than-temporary. The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary. Relevant facts and circumstances include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer; and (3) the Company’s ability and intent to hold the security until it recovers. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, the difference between book value and fair value would be charged to income.

 

For the years ended December 31, 2019, 2018 and 2017, realized capital losses include $7 million, $11 million, and $2 million related to preferred and common stocks that have experienced an other-than-temporary decline in value and were comprised of 132, 95, and 81 securities, respectively. These are primarily made up of impairments on public and private common stocks.

 

21  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Affiliate Transactions

 

In 2018, the Company sold certain common stocks to an affiliate, MRBL. These stocks had a book value of $264 million and fair value of $306 million. The Company recognized $42 million in pre-tax realized gains.

 

In 2017, the Company acquired at fair value, certain common stocks from an affiliate, JHLH, for $43 million.

 

Mortgage Loans on Real Estate

 

At December 31, 2019 and 2018, the mortgage loan portfolio was diversified by geographic region and specific collateral property type as displayed below. The Company controls credit risk through credit approvals, limits, and monitoring procedures.

 

December 31, 2019:                
                 
Property Type   Carrying Value     Geographic Concentration   Carrying Value  
(in millions)           (in millions)        
Apartments   $ 2,863     East North Central   $ 1,453  
Industrial     752     East South Central     276  
Office buildings     3,073     Middle Atlantic     1,700  
Retail     3,263     Mountain     538  
Agricultural     -     New England     633  
Agribusiness     223     Pacific     3,710  
Mixed use     7     South Atlantic     2,275  
Other     1,470     West North Central     325  
Allowance     (4 )   West South Central     737  
            Canada / Other     4  
            Allowance     (4 )
Total mortgage loans on real estate   $ 11,647     Total mortgage loans on real estate   $ 11,647  
                     
December 31, 2018:                    
                     
Property Type   Carrying Value     Geographic Concentration   Carrying Value  
(in millions)           (in millions)        
Apartments   $ 2,828     East North Central   $ 1,523  
Industrial     1,020     East South Central     253  
Office buildings     3,241     Middle Atlantic     1,936  
Retail     3,406     Mountain     516  
Agricultural     133     New England     642  
Agribusiness     247     Pacific     3,823  
Mixed use     7     South Atlantic     2,367  
Other     1,226     West North Central     336  
Allowance     (23 )   West South Central     709  
            Canada / Other     3  
            Allowance     (23 )
Total mortgage loans on real estate   $ 12,085     Total mortgage loans on real estate   $ 12,085  

 

The aggregate mortgages outstanding to any one borrower do not exceed $378 million.

 

During 2019, the respective maximum and minimum lending rates for mortgage loans issued were 3.40% and 3.40% for agricultural loans and 6.38% and 2.84% for commercial loans. The Company issued no purchase money mortgages in 2019 and 2018. At the issuance of a loan, the percentage of any one loan to value of security, exclusive of insured, guaranteed, or

 

22  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

purchase money mortgages does not exceed 75%. Impaired mortgage loans without an allowance for credit losses were $0 million, $0 million, and $0 million at December 31, 2019, 2018 and 2017, respectively. The average recorded investment in impaired loans was $39 million, $56 million, and $31 million at December 31, 2019, 2018 and 2017, respectively. The Company recognized $3 million, $4 million, and $0 million of interest income during the period the loans were impaired for the years ended December 31, 2019, 2018 and 2017, respectively.

 

The following table shows the age analysis of mortgage loans aggregated by type:

 

    Farm     Residential     Commercial     Mezzanine     Total  
(in millions)                                        
December 31, 2019:                                        
Recorded Investment                                        
Current   $ 349     $ -     $ 11,165     $ 137     $ 11,651  
30 - 59 Days Past Due     -       -       -       -       -  
60 - 89 Days Past Due     -       -       -       -       -  
90 - 179 Days Past Due     -       -       -       -       -  
180 + Days Past Due     -       -       -       -       -  
                                         
December 31, 2018:                                        
Recorded Investment                                        
Current   $ 380     $ -     $ 11,707     $ 21     $ 12,108  
30 - 59 Days Past Due     -       -       -       -       -  
60 - 89 Days Past Due     -       -       -       -       -  
90 - 179 Days Past Due     -       -       -       -       -  
180 + Days Past Due     -       -       -       -       -  

 

The Company had no recorded investment of mortgage loans 90 to 179 days or 180 days or greater past due still accruing interest or where interest has been reduced in 2019 and 2018. The Company was not a participant or co-lender in a mortgage loan agreement in 2019 and 2018.

 

Generally, the terms of the restructured mortgage loans call for the Company to receive some form or combination of an equity participation in the underlying collateral, excess cash flows or an effective yield at the maturity of the loans sufficient to meet the original terms of the loans. There are no contractual commitments made to extend credit to debtors owning receivables whose terms have been modified in troubled debt restructurings. The Company accrues interest income on impaired loans to the extent deemed collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans generally is recognized on a cash basis.

 

For mortgage loans, the Company evaluates credit quality through regular monitoring of credit related exposures, considering both qualitative and quantitative factors in assigning an internal risk rating (“IRR”). These ratings are updated at least annually.

 

The carrying value of mortgage loans by IRR was as follows:

 

    December 31,  
    2019     2018  
(in millions)            
AAA   $ 335     $ 279  
AA     2,845       2,814  
A     5,169       5,505  
BBB     3,145       3,370  
BB     147       61  
B and lower and unrated     6       56  
Total   $ 11,647     $ 12,085  

 

23  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Affiliate Transactions

 

In 2019, the Company sold certain mortgages to an affiliate, John Hancock GA Mortgage Trust (“JHGMT”). These mortgages had a book value of $785 million and fair value of $800 million at the date of the transaction. The Company recognized $15 million in pre-tax realized gains before transfer to the IMR.

 

In 2019, the Company acquired at fair value, certain mortgages from an affiliate, Hancock Mortgage REIT Inc., (“HMREIT”), for $119 million.

 

In 2018, the Company sold certain mortgages to an affiliate, JHLH. These mortgages had a book value of $8 million and fair value of $8 million at the date of the transaction. The Company recognized $0 million in pre-tax realized losses before transfer to the IMR.

 

In 2018, the Company acquired, at fair value, certain mortgages from an affiliate, JHNY, for $105 million.

 

In 2018, the Company acquired, at fair value, certain mortgages from an affiliate, JHLH, for $29 million.

 

In 2017, the Company transferred two mortgages to an affiliate, Clarendon Real Estate, LLC (“CRE LLC”). The mortgages had a book value of $7 million and fair value of $7 million at the date of the transaction. The Company did not recognize any pre-tax realized gains or losses before transfer to the IMR.

 

Real Estate

 

The composition of the Company’s investment in real estate is summarized as follows:

 

    December 31,  
    2019     2018  
(in millions)            
Properties occupied by the company   $ 239     $ 236  
Properties held for the production of income     4,996       4,730  
Properties held for sale     -       -  
Less accumulated depreciation     (1,029 )     (953 )
Total   $ 4,206     $ 4,013  

 

The Company recorded $0 million, $0 million, and $0 million of impairments on real estate investments during the years ended December 31, 2019, 2018 and 2017, respectively.

 

Affiliate Transactions

 

In 2018, the Company entered into a joint venture arrangement with the University of California Board of Regents (“UC”). As part of this arrangement, the Company sold six U.S. commercial real estate properties and one other invested asset with the characteristics of real estate to Broadway Green LLC, Broadway Wacker LLC and Broadway Congress LLC, all joint venture entities formed by UC. The Company provides management services to these joint ventures and owns 10% of their equity. The real estate properties had a book value of $728 million and fair value of $985 million which resulted in pre-tax realized gains to operations of $231 million (after 10% deferral of realized gain).

 

In 2017, the Company entered into an arrangement to sell four real estate properties to Hancock U.S Real Estate Fund, LP. These properties had a book value of $325 million and fair value of $471 million, resulting in pre-tax realized gains of $135 million and a deferred gain of $10 million. As part of this arrangement, the Company also committed approximately $44 million for an 11.7% equity interest in the fund.

 

24  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Other Invested Assets

 

The Company had no investments in partnerships or LLCs that exceed 10% of its admitted assets at December 31, 2019 and 2018.

 

Other invested assets primarily consist of investments in partnerships and LLCs. The Company recorded $97 million, $39 million, and $0 million of impairments on partnerships and LLCs during the years ended December 31, 2019, 2018 and 2017, respectively. These impairments are based on significant judgement by the Company in determining whether the objective evidence of other-than-temporary impairment exists. The Company considers relevant facts and circumstances in evaluating whether the impairment of an other invested asset is other-than-temporary. Relevant facts and circumstances include (1) the length of time the fair value has been below cost; (2) the financial position of the investee; (3) the Company’s ability and intent to hold the other invested asset until it recovers. To the extent the Company determines that an other invested asset is deemed to be other-than-temporarily impaired, the difference between book and fair value would be charged to income.

 

Affiliate Transactions

 

In 2019, Manulife Private Capital and Manulife Investment Management Private Markets launched a closed-end pooled fund that offers third-party investors the opportunity to invest alongside JHUSA’s and MLI’s general account and/or their affiliates (collectively the “General Account”) in private equity funds and private equity co-investments in the US and in Canada. The fund was seeded with a pool of private equity fund investments and direct private equity co-investments from the Company. The assets sold by the Company, to seed the fund, had a book value of $451 million and fair value of $459 million which resulted in a gain to operations of $8 million.

 

In 2019, the Company acquired at fair value, certain other invested assets from an affiliate, JHFLLC, for $35 million.

 

In 2018, the Company entered into an agreement to launch John Hancock Infrastructure Fund, LP (the “Fund”), a closed-end pooled fund that will offer investors the opportunity to invest alongside the Company in a targeted infrastructure strategy focused primarily on U.S investments. The fund was seeded with the partial sale of 9 assets owned by the Company. The assets sold had a book value of $1,045 million and fair value of $1,094 million which resulted in a gain to operations of $49 million.

 

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, JHNY, for $4 million.

 

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, JHLH, for $9 million.

 

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, John Hancock Partnership Holdings I (“JHPH I”), for $39 million.

 

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, John Hancock Partnership Holdings II (“JHPH II”), for $39 million.

 

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, JHFLLC, for $6 million.

 

Other

 

The subprime lending sector, also referred to as B-paper, near-prime, or second chance lending, is the sector of the mortgage lending industry which lends to borrowers who do not qualify for prime market interest rates because of poor or insufficient credit history.

 

For purposes of this disclosure, subprime exposure is defined as the potential for financial loss through direct investment, indirect investment, or underwriting risk associated with risk from the subprime lending sector. For purposes of this note, subprime exposure is not limited solely to the risk associated with holding direct mortgage loans, but also includes any indirect risk through investments in asset-backed or structured securities, hedge funds, common stock, subsidiaries and affiliates, and insurance product issuance.

 

25  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Although it can be difficult to determine the indirect risk exposures, it should be noted that not only does it include expected losses, it also includes the potential for losses that could occur due to significantly depressed fair value of the related assets in an illiquid market.

 

The Company had no direct exposure through investments in subprime mortgage loans as of December 31, 2019 or 2018.

 

Management considers several factors when classifying a structured finance or residential mortgage-backed security holding as “subprime” or placing a security in the highest risk category. These factors include the transaction’s weighted average FICO or credit score, loan-to-value ratio (“LTV”), geographic composition, lien position, loan purpose, and loan documentation.

 

The Company has entered into certain repurchase agreements with an aggregate carrying value of $0 million and $0 million as of December 31, 2019 and 2018, respectively. For such agreements, the Company agrees to a specified term, price, and interest rate through the date of the repurchase.

 

The Company established a facility with an affiliate, MRBL whereby cash collateral can be received under a repurchase agreement program. There was no repurchase agreement activity in 2019 and 2018.

 

For securities lending transactions, the Company’s policy is to require a minimum of 102% of the fair value of securities loaned to be maintained as collateral. Positions are marked to market and adjusted on a daily basis to ensure the 102% margin requirement is maintained. There were no securities on loan as of December 31, 2019 or 2018.

 

26  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Net Investment Income and Net Realized and Other Gains (Losses)

 

Major categories of the Company’s net investment income are summarized as follows:

 

       
    2019     2018     2017  
(in millions)                        
Income:                        
Bonds   $ 2,117     $ 2,279     $ 2,146  
Preferred stocks     -       -       -  
Common stocks     125       126       23  
Mortgage loans on real estate     569       594       610  
Real estate     432       638       704  
Policy loans     188       175       176  
Cash, cash equivalents and short-term investments     45       38       33  
Other invested assets     920       1,069       1,014  
Derivatives     519       427       483  
Other income     -       (21 )     12  
Total investment income     4,915       5,325       5,201  
                         
Expenses                        
Investment expenses     (331 )     (424 )     (509 )
Investment taxes, licenses and fees, excluding federal income taxes     (51 )     (76 )     (93 )
Investment interest expense     (42 )     (48 )     (50 )
Depreciation on real estate and other invested assets     (85 )     (112 )     (123 )
Total investment expenses     (509 )     (660 )     (775 )
Net investment income   $ 4,406     $ 4,665     $ 4,426  

 

Realized capital gains (losses) and amounts transferred to the IMR are as follows:

 

       
    2019     2018     2017  
(in millions)                        
Realized capital gains (losses)   $ 735     $ 730     $ 722  
Less amount transferred to the IMR (net of related tax benefit (expense) of $(89) in 2019, $2 in 2018, and $(475) in 2017)     336       (6 )     882  
Realized capital gains (losses) before tax     399       736       (160 )
Less federal income taxes on realized capital gains (losses) before effect of transfer to the IMR     201       396       243  
Net realized capital gains (losses)   $ 198     $ 340     $ (403 )

 

27  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

6. Derivatives

 

Derivatives are financial contracts, the value of which is derived from underlying interest rates, foreign exchange rates, credit, equity price movements, indices or other market risks arising from on-balance sheet financial instruments and selected anticipated transactions. The Company uses derivatives including swaps, forward and futures agreements, floors, and options to manage current and anticipated exposures to changes in interest rates, foreign exchange rates, credit and equity market prices.

 

Over-the-counter (“OTC”) bilateral swaps are contractual agreements between the Company and a counterparty to exchange a series of cash flows based upon rates applied to a notional amount. For interest rate swaps, counterparties generally exchange fixed or floating interest rate payments based on a notional value in a single currency. Cross currency swaps involve the exchange of principal amounts between parties as well as the exchange of interest payments in one currency for the receipt of interest payments in another currency. Total return swaps are contracts that involve the exchange of payments based on changes in the values of a reference asset, including any returns such as interest earned on these assets, in return for amounts based on reference rates specified in the contract.

 

Cleared OTC interest rate swaps are contractual agreements between the Company and a counterparty whereby the transaction must be cleared through a central clearing house, and subject to mandatory margin and reporting requirements.

 

Forward and futures agreements are contractual obligations to buy or sell a financial instrument or foreign currency on a predetermined future date at a specified price. Forward contracts are OTC contracts negotiated between counterparties, whereas futures agreements are contracts with standard amounts and settlement dates that are traded on regulated exchanges.

 

Interest rate floors are contracts with counterparties which require payment of a premium for the right to receive payments when the market interest rate on specified future dates falls below the agreed upon strike price. Interest rate treasury lock contracts are customized agreements securing current interest rates on Treasury securities for payment on a future date.

 

Options are contractual agreements whereby the holder has the right, but not the obligation, to buy (call option) or sell (put option) a security, exchange rate, interest rate, or other financial instrument at a predetermined price/rate within a specified time.

 

Swaptions are contractual agreements whereby the holder has the right, but not obligation, to enter into a given swap agreement on a specified future date.

 

Types of Derivatives and Derivative Strategies

 

Interest Rate Contracts. The Company uses interest rate futures contracts, OTC interest rate swap agreements, cleared interest rate swap agreements, swaptions, and interest rate treasury locks as part of its overall strategies of managing the duration of assets and liabilities or the average life of certain asset portfolios to specified targets. Interest rate swap agreements are contracts with counterparties to exchange interest rate payments of a differing character (i.e., fixed-rate payments exchanged for variable-rate payments) based on an underlying principal balance (notional principal). The net differential to be paid or received on interest rate swap agreements is accrued and recognized as a component of net investment income.

 

The Company uses interest rate swap agreements in effective cash flow and fair value hedge accounting relationships. These derivatives hedge the variable cash flows associated with certain floating-rate bonds, as well as, future fixed income asset acquisitions, which will support the Company’s long-term care and life insurance businesses. These derivatives reduce the impact of future interest rate changes on the cost of acquiring adequate assets to support the investment income assumptions used in pricing these products. For its fair value hedging relationships, the Company uses interest rate swap agreements and interest rate treasury locks to hedge the risk of changes in fair value of existing fixed rate assets and liabilities arising from changes in benchmark interest rates.

 

Inflation swaps are used to reduce inflation risk generated from inflation-indexed liabilities. Inflation swaps are classified within interest rate swaps for disclosure purposes and are both OTC bilateral and Cleared OTC. The Company utilizes inflation swaps in effective hedge accounting relationships and other hedging relationships.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company uses exchange-traded interest rate futures primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, and to hedge against changes in interest rates on anticipated liability issuances by replicating U.S. Treasury or swap curve performance. The Company utilizes exchange-traded interest rate futures in other hedging relationships.

 

The Company also uses interest rate floors and swaptions primarily to protect against interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate floors in other hedging relationships.

 

Foreign Currency Contracts. Foreign currency derivatives, including foreign currency swaps, foreign currency forwards, and foreign currency futures are used by the Company to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies.

 

Cross currency swap agreements are used to manage the Company’s exposure to foreign exchange rate fluctuations, interest rate fluctuations, or both, on foreign currency financial instruments. Cross currency swap agreements are contracts to exchange the currencies of two different countries at the same rate of exchange at specified future dates. The net differential to be paid or received on cross currency rate swap agreements is accrued and recognized as a component of net investment income.

 

Under foreign currency forwards, the Company agrees with other parties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The maturities of these forwards correspond with the future periods in which the foreign currency transactions are expected to occur. The Company utilizes currency forwards in effective hedge accounting relationships and other hedging relationships.

 

Foreign currency futures are contractual obligations to buy or sell a foreign currency on a predetermined future date at a specified price. These contracts are standardized contracts traded on an exchange. The Company utilizes foreign exchange futures in other hedging relationships.

 

Equity Market Contracts. Total return swaps are contracts that involve the exchange of payments based on changes in the value of a reference asset, including any returns such as interest earned on these assets, in exchange for amounts based on reference rates specified in the contract. The Company utilizes total return swaps in effective hedge accounting relationships and other hedging relationships.

 

Equity index options are contractual agreements whereby the holder has the right, but not the obligation, to buy (call option) or sell (put option) an underlying equity market index on or before a specified future date at a specified price. The Company utilizes equity index options in other hedging relationships.

 

Equity index futures contracts are contractual obligations to buy or sell a specified amount of an underlying equity index at an agreed contract price on a specified date. Equity index futures are contracts with standard amounts and settlement dates that are traded on regulated exchanges. The Company utilizes equity index futures in other hedging relationships.

 

Credit Contracts. The Company manages credit risk through the issuance of credit default swaps (“CDS”). A CDS is a derivative instrument representing an agreement between two parties to exchange the credit risk of a single specified entity or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. CDS contracts typically have a five-year term.

 

Replication Synthetic Assets. Replication synthetic asset transactions (“RSATs”) are derivative transactions made in combination with a cash instrument in order to reproduce the investment characteristic of an otherwise permissible investment. The Company uses interest rate swaps and credit default swaps in these transactions when direct investments are either too expensive to acquire or otherwise unavailable in the market. Such derivatives can only be RSATs and not hedging vehicles.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The table below provides a summary of the gross notional amount and fair value of derivatives contracts for all derivatives in effective hedge accounting relationships, other hedging relationships, and RSATs:

 

        December 31, 2019  
(in millions)       Notional Amount     Carrying Value Assets     Carrying Value Liabilities     Fair Value Assets     Fair Value Liabilities  
Effective Hedge Accounting Relationships                                        
Fair value hedges   Interest rate swaps   $ 1,570     $ -     $ -     $ 260     $ 142  
    Foreign currency swaps     14       -       3       -       4  
Cash flow hedges   Interest rate swaps     6,050       -       -       666       386  
    Foreign currency swaps     322       34       -       46       -  
    Foreign currency forwards     -       -       -       -       -  
    Interest rate treasury locks     2,114       -       -       170       23  
    Equity total return swaps     41       -       -       8       -  
Total Derivatives in Effective Hedge Accounting Relationships   $ 10,111     $ 34     $ 3     $ 1,150     $ 555  
                                             
Other Hedging Relationships                                        
    Interest rate swaps   $ 130,584     $ 10,762     $ 6,884     $ 10,762     $ 6,884  
    Interest rate treasury locks     12,529       1,200       84       1,200       84  
    Interest rate options     8,247       304       -       304       -  
    Interest rate futures     7,784       -       -       -       -  
    Foreign currency swaps     1,423       387       313       387       313  
    Foreign currency forwards     540       4       1       4       1  
    Foreign currency futures     843       -       -       -       -  
    Equity total return swaps     310       12       9       12       9  
    Equity index options     5,295       346       3       346       3  
    Equity index futures     4,586       -       -       -       -  
    Credit default swaps     -       -       -       -       -  
Total Derivatives in Other Hedging Relationships   $ 172,141     $ 13,015     $ 7,294     $ 13,015     $ 7,294  
                                             
Replication Synthetic Asset Transactions                                        
    Interest rate swaps   $ 4,276     $ -     $ -     $ 268     $ 122  
    Credit default swaps     -       -       -       -       -  
Total Derivatives in Replication Synthetic Asset Transactions   $ 4,276     $ -     $ -     $ 268     $ 122  
Total Derivatives       $ 186,528     $ 13,049     $ 7,297     $ 14,433     $ 7,971  

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

        December 31, 2018  
(in millions)       Notional Amount     Carrying Value Assets     Carrying Value Liabilities     Fair Value Assets     Fair Value Liabilities  
Effective Hedge Accounting Relationships                                        
Fair value hedges   Interest rate swaps   $ 1,919     $ -     $ -     $ 259     $ 98  
    Foreign currency swaps     17       -       3       -       5  
Cash flow hedges   Interest rate swaps     6,987       -       -       484       362  
    Foreign currency swaps     421       61       -       55       -  
    Foreign currency forwards     66       -       -       -       7  
    Interest rate treasury locks     1,351       -       -       27       12  
    Equity total return swaps     32       -       -       -       6  
Total Derivatives in Effective Hedge Accounting Relationships   $ 10,793     $ 61     $ 3     $ 825     $ 490  
                                             
Other Hedging Relationships                                        
    Interest rate swaps   $ 137,873     $ 7,336     $ 3,287     $ 7,336     $ 3,287  
    Interest rate treasury locks     11,980       277       77       277       77  
    Interest rate options     8,574       230       -       230       -  
    Interest rate futures     7,977       -       -       -       -  
    Foreign currency swaps     1,439       341       269       341       269  
    Foreign currency forwards     718       19       14       19       14  
    Foreign currency futures     1,040       -       -       -       -  
    Equity total return swaps     394       11       10       11       10  
    Equity index options     4,818       236       59       236       59  
    Equity index futures     4,178       -       -       -       -  
    Credit default swaps     -       -       -       -       -  
Total Derivatives in Other Hedging Relationships   $ 178,991     $ 8,450     $ 3,716     $ 8,450     $ 3,716  
                                             
Replication Synthetic Asset Transactions                                        
    Interest rate swaps   $ 3,135     $ -     $ -     $ 19     $ 188  
    Credit default swaps     -       -       -       -       -  
Total Derivatives in Replication Synthetic Asset Transactions   $ 3,135     $ -     $ -     $ 19     $ 188  
Total Derivatives   $ 192,919     $ 8,511     $ 3,719     $ 9,294     $ 4,394  

 

Hedging Relationships

 

The Company generally does not enter into derivative contracts for speculative purposes. In certain circumstances, these hedges also meet the requirements for hedge accounting and are reported in a manner consistent with the hedged asset or liability. For the years ended December 31, 2019, 2018 and 2017, respectively, the Company recorded unrealized gains (losses) of $278 million, $231 million, and $402 million, respectively, related to derivatives that no longer qualify for hedge accounting.

 

Fair Value Hedges. The Company uses interest rate swaps to manage its exposure to changes in fair value of fixed-rate financial instruments caused by changes in interest rates. The Company also uses cross currency swaps to manage its exposure to foreign exchange rate fluctuations and interest rate fluctuations.

 

Cash Flow Hedges. The Company uses interest rate swaps and interest rate treasury locks to hedge the variability in cash flows from variable rate financial instruments and forecasted transactions. The Company also uses cross currency swaps and forward agreements to hedge currency exposure on foreign currency financial instruments and foreign currency denominated

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

expenses, respectively. Total return swaps are used to hedge the variability in cash flows associated with certain stock-based compensation awards. Inflation swaps are used to reduce inflation risk generated from inflation-indexed liabilities.

 

For the year ended December 31, 2019, all of the Company’s hedged forecast transactions qualified as cash flow hedges and no cash flow hedges were discontinued because it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship.

 

The maximum time frame for which variable cash flows are hedged is 27 years.

 

Derivatives Not Designated as Hedging Instruments (Economic Hedges) or RSAT Relationships. The Company enters into interest rate swap agreements, cancelable interest rate swap agreements, and interest rate futures contracts to manage interest rate risk, total return swap agreements to manage equity risk, and CDS to manage credit risk. The Company also uses interest rate treasury locks and interest rate floor agreements to manage exposure to interest rates without designating the derivatives as hedging instruments. Interest rate floor agreements hedge the interest rate risk associated with minimum interest rate guarantees in certain life insurance and annuity businesses.

 

The Company offers certain variable annuity products with a guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum death benefit (“GMDB”). These guarantees are effectively an embedded option on the basket of mutual funds offered to contract holders. The Company manages a hedging program to reduce its exposure to certain contracts with the GMWB and GMDB guarantees. This dynamic hedging program uses interest rate swap agreements, equity index futures (including but not limited to the Dow Jones Industrial, Standard & Poor’s 500 (“S&P”), Russell 2000, and Dow Jones Euro Stoxx 50 indices), currency futures, total return swaps, equity index options, swaptions and U.S. Treasury futures to match the sensitivities of the GMWB and GMDB liabilities to the market risk factors.

 

The Company also has a macro equity risk hedging program using equity futures and interest rate swaps, as well as equity index options. This program is designed to reduce the Company’s overall exposure to public equity markets arising from several sources including, but not limited to, variable annuity guarantees not dynamically hedged, separate account fees not associated with guarantees, and Company equity holdings.

 

The Company uses foreign currency swaps and foreign currency forwards to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

For the years ended December 31, 2019, 2018 and 2017 net gains and losses related to derivatives in other hedging relationships were recognized by the Company, and the components were recorded in net unrealized and net realized gains (losses) as follows:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Other Hedging Relationships                        
Net unrealized capital gain (loss):                        
Interest rate swaps   $ (171 )   $ (193 )   $ (805 )
Interest rate treasury locks     916       (417 )     841  
Interest rate options     89       (35 )     (73 )
Interest rate futures     (379 )     212       -  
Foreign currency swaps     18       -       6  
Foreign currency forwards     (2 )     6       (11 )
Foreign currency futures     5       (11 )     -  
Equity total return swaps     (15 )     9       3  
Equity index options     177       (133 )     102  
Equity index futures     (169 )     121       -  
Credit default swaps     -       -       -  
Total net unrealized capital gain (loss)   $ 469     $ (441 )   $ 63  
                         
Net realized capital gain (loss):                        
Interest rate swaps   $ 11     $ (225 )   $ 874  
Interest rate treasury locks     428       43       34  
Interest rate options     (17 )     (5 )     (3 )
Interest rate futures     873       (411 )     273  
Foreign currency swaps     6       4       4  
Foreign currency forwards     21       (16 )     16  
Foreign currency futures     18       61       (111 )
Equity total return swaps     (17 )     (2 )     (9 )
Equity index options     (1 )     49       22  
Equity index futures     (944 )     157       (1,104 )
Credit default swaps     1       -       -  
Total net realized capital gain (loss)   $ 379     $ (345 )   $ (4 )
Total gain (loss) from derivatives in other hedging relationships   $ 848     $ (786 )   $ 59  

 

The table above does not include unrealized gains (losses) of $17 million, ($28) million, $9 million and realized gains (losses) of $6 million, $12 million and $12 million for the years ended December 31, 2019, 2018 and 2017, respectively. These gains (losses) represent a portion of equity total return swaps used to hedge restricted share units, but that are no longer in an effective accounting hedge relationship. The gains (losses) are recorded in the General Insurance Expenses line in the Statement of Operations.

 

The Company also deferred net realized gains (losses) of $36 million, ($229) million, and $872 million (including $23 million, ($226) million, and $874 million of gains (losses) for derivatives in other hedging relationships, respectively) related to interest rates for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred net realized gains and losses are reported in IMR and amortized over the remaining period to expiration date.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Credit Default Swaps

 

The Company replicates exposure to specific issuers by selling credit protection via CDS in order to complement its cash bond investing. The Company does not employ leverage in its CDS program and therefore, does not write CDS protection in excess of its government bond holdings.

 

The Company had no CDS protection sold at December 31, 2019 and 2018.

 

The Company held no purchased credit protection at December 31, 2019 and 2018. The average credit rating of the counterparties guaranteeing the underlying credits is A and the weighted average maturity is 0 years.

 

Credit Risk

 

The Company’s exposure to loss on derivatives is limited to the amount of any net gains that may have accrued with a particular counterparty. Gross derivative counterparty exposure is measured as the total fair value (including accrued interest) of all outstanding contracts in a gain position excluding any offsetting contracts in negative positions and the impact of collateral on hand. The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to the derivative financial instruments. The current credit exposure of the Company’s derivative contracts is limited to the fair value in excess of the collateral held at the reporting date.

 

The Company manages its credit risk by entering into transactions with creditworthy counterparties, obtaining collateral where appropriate, and entering into master netting agreements that provide for a netting of payments and receipts with a single counterparty. The Company enters into credit support annexes with its OTC derivative dealers in order to manage its credit exposure to those counterparties. As part of the terms and conditions of those agreements, the pledging and accepting of collateral in connection with the Company’s derivative usage is required. As of December 31, 2019 and 2018, the Company accepted collateral consisting of cash of $828 million and $1,559 million, and various securities with a fair value of $6,105 million and $3,280 million, respectively, which is held in separate custodial accounts and not reflected within these financial statements. In addition, the Company has pledged collateral to support both the OTC derivative instruments, exchange traded futures and cleared interest rate swap transactions. For further details regarding pledged collateral see the Investments Note.

 

Under U.S. regulations, certain interest rate swap agreements and credit default swap agreements are required to be cleared through central clearing houses. These transactions are contractual agreements that require initial and variation margin collateral postings and are settled on a daily basis through a clearing house. As such, they reduce the credit risk exposure in the event of default by a counterparty.

 

Financing Premiums

 

The following table presents the Company’s aggregate, non-discounted total premium cost for derivative contracts with financing premiums and the premium cost due in each of the following four years, and thereafter.

 

Fiscal Year     Derivative Premium Payments Due  
(in millions)          
  2020     $ 98  
  2021       -  
  2022       -  
  2023       -  
  Thereafter       -  
  Total Future Settled Premiums     $ 98  

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    Undiscounted Future Premium Commitments     Derivative Fair Value With Premium Commitments     Derivative Fair Value Excluding Impact of Future Settled Premiums  
(in millions)                        
Prior Year   $ 66     $ (48 )   $ 17  
Current Year   $ 98     $ 64     $ 162  

 

Transactions with Affiliates

 

The Company has entered into a currency swap agreement with JHFC which was recorded at fair value. JHFC utilizes the currency swap to hedge currency exposure on foreign currency financial instruments. The Company has also entered into currency swap agreements with external counterparties which offset the currency swap agreement with JHFC. As of December 31, 2019 and 2018, the currency swap agreements with JHFC and the external counterparties had offsetting fair values of $310 million and $266 million, respectively.

 

The Company has entered into equity total return swap agreements with MLI which are recorded at fair value. JHUSA utilizes the equity total return swaps to hedge equity exposure on restricted share units (“RSU”). As of December 31, 2019 and 2018, the equity total return swap agreements with MLI had a fair value of $17 million and ($14) million.

 

In 2017, the Company repositioned interest rate swaps supporting affiliate reinsurance with JHRECO.  The transaction resulted in a pre-tax gain of $24 million and a post-tax increase to surplus of $16 million, net of amounts transferred to the IMR and ceded to the affiliate reinsurer.

 

7. Fair Value

 

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

 

● Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition – This category includes assets and liabilities measured at fair value. Financial instruments in this category include bonds and preferred stocks carried at the lower of cost or fair value due to their SVO quality rating, common stocks, derivatives, and separate account assets and liabilities.

 

● Other Financial Instruments Not Reported at Fair Value After Initial Recognition – This category includes assets and liabilities as follows:

 

Bonds – For bonds, including corporate debt, U.S. Treasury, commercial and residential mortgage-backed securities, asset-backed securities, collateralized debt obligations, issuances by foreign governments, and obligations of state and political subdivisions, fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). The significant inputs into these models include, but are not limited to, yield curves, credit risks and spreads, measures of volatility, and prepayment speeds.

 

Mortgage Loans on Real Estate – The fair value of unimpaired mortgage loans is estimated using discounted cash flows and takes into account the contractual maturities and discount rates, which were based on current market rates for similar maturity ranges and adjusted for risk due to the property type. The fair value of impaired mortgage loans is based on the net of the collateral less estimated cost to obtain and sell. Fair value of commercial mortgages is derived through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential mortgages is assumed to be their carrying value.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Cash, Cash Equivalents and Short-Term Investments – The carrying values for cash, cash equivalents, and short-term investments approximate their fair value due to the short-term maturities of these instruments.

 

Policy Loans – These loans are carried at unpaid principal balances, which approximate their fair values.

 

Policy Reserves – Policy reserves consist of guaranteed investment contracts. The fair values associated with these financial instruments are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread.

 

Policyholders’ and Beneficiaries’ Funds – Includes term certain contracts and supplementary contracts without life contingencies. The fair values associated with the term certain contracts and supplementary contracts without life contingencies are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread. Fair value disclosure is not required for those balances that can be withdrawn by the policyholder at any time without prior notice or penalty. The fair value is the amount estimated to be payable to the policyholder as of the reporting date which is generally the carrying value and provides no additional disclosure value.

 

Consumer Notes – The fair value of consumer notes is determined by projecting cash flows and using a spread assumption associated with the specific risks in the Signature Note contracts. The spread is calculated by taking the difference between the contractual crediting rate and the yield curve as of the issue date of each Signature Note. The calculated spread is added to the yield curve as of each future valuation date to determine the fair value of the Signature Notes.

 

Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition

 

Valuation Hierarchy

 

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

 

● Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date reflecting market transactions. Level 1 assets primarily include exchange traded equity securities and certain separate account assets.

 

● Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc.), and inputs that are derived from or corroborated by observable market data. Most bonds are classified within Level 2. Also, included in the Level 2 category are certain separate account assets and liabilities and derivative assets and liabilities.

 

● Level 3 – Fair value measurements using significant nonmarket observable inputs. These include valuations for assets and liabilities that are derived using data, some or all of which is not market observable data, including assumptions about risk. Level 3 securities include impaired bonds and less liquid securities, such as structured asset-backed securities, commercial mortgage-backed securities, and other securities that have little or no price transparency.

 

Determination of Fair Value

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not a forced liquidation or distress sale) between market participants at the measurement date, that is, an exit value.

 

When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is typically based upon alternative valuation techniques such as discounted cash flows, matrix pricing, consensus pricing services and other techniques. Broker quotes are generally used when external public vendor prices are not available.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company has a process in place that includes a review of price movements relative to the market, a comparison of prices between vendors, and a comparison to internal matrix pricing which uses predominately external observable data. Judgement is applied in adjusting external observable data for items including liquidity and credit factors.

 

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

 

Bonds

 

Refer to the previous page for the determination of fair value of bonds. Generally, impaired bonds with a NAIC designation rating of 6 whose cost is greater than its fair value are reported at fair value and are classified within Level 3.

 

Preferred Stocks

 

Preferred stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Preferred stocks not traded in active markets are classified within Level 3.

 

Common Stocks

 

Common stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Common stocks not traded in active markets are classified within Level 3.

 

Derivatives

 

The fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for OTC derivatives. The pricing models used are based on market standard valuation methodologies, and the inputs to these models are consistent with what a market participant would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), and volatility. The Company’s derivatives are generally classified within Level 2 given the significant inputs to the pricing models for most OTC derivatives are observable or can be corroborated by observable market data. Inputs that are observable generally include interest rates, foreign currency exchange rates, and interest rate curves. However, certain OTC derivatives may rely on inputs that are significant to the fair value, that are unobservable in the market or cannot be derived principally from or corroborated by observable market data and would be classified within Level 3. Inputs that are unobservable generally include broker quotes, volatilities, and inputs that are outside of the observable portion of the interest rate curve or other relevant market measures. These unobservable inputs may involve significant management judgment or estimation.

 

Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what market participants would use when pricing such instruments. The credit risk of both the counterparty and the Company are considered in determining the fair value for all OTC derivatives after taking into account the effects of netting agreements and collateral arrangements.

 

Separate Account Assets and Liabilities

 

For separate accounts structured as a non-unitized fund, the fair value of separate account assets is based on the fair value of the underlying assets owned by the separate account. For separate accounts structured as a unitized fund, the fair value of the separate account assets is based on the fair value of the underlying funds owned by the separate account. Assets owned by the Company’s separate accounts primarily include: investments in mutual funds, bonds, common stock, short-term investments, real estate, and cash and cash equivalents. Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders whose interest in the separate account assets is recorded by the Company as separate account liabilities. Separate account liabilities are set equal to the fair value of separate account assets.

 

The fair value of fund investments is based upon quoted market prices or reported net asset value (“NAV”). Fund investments that are traded in an active market and have a NAV that the Company can access at the measurement date are classified within Level 1. Level 2 assets consist primarily of bonds which are valued using matrix pricing with independent pricing data.

 

Separate account assets classified as Level 3 consist primarily of fixed maturity and equity investments in private companies, which own timber and agriculture and carry them at fair value. The values of the timber and agriculture investments are estimated using generally accepted valuation techniques. A comprehensive appraisal is performed shortly after initial purchase and at two or three-year intervals thereafter. Appraisal updates are conducted according to client contracts, generally at one-year or six-month intervals. In the quarters in which an investment is not independently appraised or its

 

37  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

valuation updated, the market value is reviewed by management. The valuation of an investment is adjusted only if there has been a significant change in economic circumstances related to the investment since acquisition or the most recent independent valuation and upon the independent appraiser’s review and concurrence with management. Further, these valuations are prepared giving consideration to the income, cost, and sales comparison approaches of estimating asset value. The significant unobservable inputs used in the fair value measurement of the Company’s timberland investments are harvest volumes, timber prices, operating costs and discount rates. Significant changes to any one of these inputs in isolation could result in a significant change to fair value measurement. Holding other factors constant, an increase to either harvest volumes or timber prices would tend to increase the fair value of a timberland investment, while an increase in operating costs or discount rate would have the opposite effect. These investments are classified as Level 3 by the companies owning them, and therefore the equity investments in these companies are considered to be Level 3 by the Company.

 

38  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The following table presents the Company’s assets and liabilities that are measured and reported at fair value in the Balance Sheets after initial recognition by fair value hierarchy level:

 

    December 31, 2019        
    Carrying Value     Total Fair Value     Level 1     Level 2     Level 3     Net Asset Value (NAV)  
(in millions)                                    
Assets:                                    
Bond with NAIC 6 rating:                                                
Industrial and misc   $ 5     $ 5     $ -     $ -     $ 5     $ -  
Loan-backed and structured securities     -       -       -       -       -       -  
Total bonds with NAIC 6 rating     5       5       -       -       5       -  
Preferred stocks:                                                
Industrial and misc     3       3       -       -       3       -  
Total preferred stocks     3       3       -       -       3       -  
Common stocks:                                                
Industrial and misc     1,050       1,050       961       -       89       -  
Total common stocks     1,050       1,050       961       -       89       -  
Derivatives:                                                
Interest rate swaps     10,762       10,762       -       10,737       25       -  
Interest rate treasury locks     1,200       1,200       -       229       971       -  
Interest rate options     304       304       -       76       228       -  
Interest rate futures     -       -       -       -       -       -  
Foreign currency swaps     387       387       -       387       -       -  
Foreign currency forwards     4       4       -       4       -       -  
Foreign currency futures     -       -       -       -       -       -  
Equity total return swaps     12       12       -       -       12       -  
Equity index options     346       346       -       346       -       -  
Equity index futures     -       -       -       -       -       -  
Credit default swaps     -       -       -       -       -       -  
Total derivatives     13,015       13,015       -       11,779       1,236       -  
Assets held in separate accounts     140,747       140,747       136,201       2,730       1,816       -  
Total assets   $ 154,820     $ 154,820     $ 137,162     $ 14,509     $ 3,149     $ -  
                                                 
Liabilities:                                                
Derivatives:                                                
Interest rate swaps   $ 6,884     $ 6,884     $ -     $ 6,787     $ 97     $ -  
Interest rate treasury locks     84       84       -       -       84       -  
Interest rate options     -       -       -       -       -       -  
Interest rate futures     -       -       -       -       -       -  
Foreign currency swaps     313       313       -       313       -       -  
Foreign currency forwards     1       1       -       1       -       -  
Foreign currency futures     -       -       -       -       -       -  
Equity total return swaps     9       9       -       -       9       -  
Equity index options     3       3       -       3       -       -  
Equity index futures     -       -       -       -       -       -  
Credit default swaps     -       -       -       -       -       -  
Total derivatives     7,294       7,294       -       7,104       190       -  
Liabilities held in separate accounts     140,747       140,747       136,201       2,730       1,816       -  
Total liabilities   $ 148,041     $ 148,041     $ 136,201     $ 9,834     $ 2,006     $ -  

 

39  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    December 31, 2018        
    Carrying Value     Total Fair Value     Level 1     Level 2     Level 3     Net Asset Value (NAV)  
(in millions)                                    
Assets:                                    
Bond with NAIC 6 rating:                                                
Industrial and misc   $ 31     $ 31     $ -     $ 25     $ 6     $ -  
Loan-backed and structured securities     -       -       -       -       -       -  
Total bonds with NAIC 6 rating     31       31       -       25       6       -  
Preferred stocks:                                                
Industrial and misc     3       3       -       -       3       -  
Total preferred stocks     3       3       -       -       3       -  
Common stocks:                                                
Industrial and misc     918       918       807       -       111       -  
Total common stocks     918       918       807       -       111       -  
Derivatives:                                                
Interest rate swaps     7,336       7,336       -       7,336       -       -  
Interest rate treasury locks     277       277       -       12       265       -  
Interest rate options     230       230       -       91       139       -  
Interest rate futures     -       -       -       -       -       -  
Foreign currency swaps     341       341       -       341       -       -  
Foreign currency forwards     19       19       -       19       -       -  
Foreign currency futures     -       -       -       -       -       -  
Equity total return swaps     11       11       -       -       11       -  
Equity index options     236       236       -       236       -       -  
Equity index futures     -       -       -       -       -       -  
Credit default swaps     -       -       -       -       -       -  
Total derivatives     8,450       8,450       -       8,035       415       -  
Assets held in separate accounts     124,131       124,131       119,774       2,553       1,804       -  
Total assets   $ 133,533     $ 133,533     $ 120,581     $ 10,613     $ 2,339     $ -  
                                                 
Liabilities:                                                
Derivatives:                                                
Interest rate swaps   $ 3,287     $ 3,287     $ -     $ 3,232     $ 55     $ -  
Interest rate treasury locks     77       77       -       17       60       -  
Interest rate options     -       -       -       -       -       -  
Interest rate futures     -       -       -       -       -       -  
Foreign currency swaps     269       269       -       269       -       -  
Foreign currency forwards     14       14       -       14       -       -  
Foreign currency futures     -       -       -       -       -       -  
Equity total return swaps     10       10       -       -       10       -  
Equity index options     59       59       -       59       -       -  
Equity index futures     -       -       -       -       -       -  
Credit default swaps     -       -       -       -       -       -  
Total derivatives     3,716       3,716       -       3,591       125       -  
Liabilities held in separate accounts     124,131       124,131       119,774       2,553       1,804       -  
Total liabilities   $ 127,847     $ 127,847     $ 119,774     $ 6,144     $ 1,929     $ -  

 

40  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Fair Value of Financial Instruments Not Reported at Fair Value in the Balance Sheet

 

The table below presents the carrying amounts and fair value by fair value hierarchy level for certain assets and liabilities that are not reported at fair value in the Balance Sheets:

 

    December 31, 2019  
    Carrying Value     Total Fair Value     Level 1     Level 2     Level 3  
(in millions)                              
Assets:                              
Bonds (1)   $ 47,188     $ 50,177     $ -     $ 47,652     $ 2,525  
Preferred stocks     12       16       -       -       16  
Mortgage loans on real estate     11,647       12,735       -       -       12,735  
Cash, cash equivalents and short term investments     3,816       3,816       2,864       952       -  
Policy loans     2,888       2,888       -       2,888       -  
Derivatives in effective hedge accounting and RSAT relationships     34       1,418       -       1,270       148  
Total assets   $ 65,585     $ 71,050     $ 2,864     $ 52,762     $ 15,424  
                                         
Liabilities:                                        
Consumer notes   $ 138     $ 162     $ -     $ -     $ 162  
Borrowed money     -       -       -       -       -  
Policy reserves     1,268       1,267       -       -       1,267  
Policyholders’ and beneficiaries’ funds     795       960       -       960       -  
Derivatives in effective hedge accounting and RSAT relationships     3       677       -       310       367  
Total liabilities   $ 2,204     $ 3,066     $ -     $ 1,270     $ 1,796  

 

    December 31, 2018  
    Carrying Value     Total Fair Value     Level 1     Level 2     Level 3  
(in millions)                              
Assets:                              
Bonds (1)   $ 44,525     $ 43,579     $ -     $ 40,875     $ 2,704  
Preferred stocks     11       12       -       -       12  
Mortgage loans on real estate     12,085       12,199       -       -       12,199  
Cash, cash equivalents and short term investments     2,988       2,988       2,381       607       -  
Policy loans     2,788       2,788       -       2,788       -  
Derivatives in effective hedge accounting and RSAT relationships     61       844       -       816       28  
Total assets   $ 62,458     $ 62,410     $ 2,381     $ 45,086     $ 14,943  
                                         
Liabilities:                                        
Consumer notes   $ 154     $ 176     $ -     $ -     $ 176  
Borrowed money     -       -       -       -       -  
Policy reserves     1,322       1,306       -       -       1,306  
Policyholders’ and beneficiaries’ funds     796       961       -       961       -  
Derivatives in effective hedge accounting and RSAT relationships     3       678       -       438       240  
Total liabilities   $ 2,275     $ 3,121     $ -     $ 1,399     $ 1,722  

 

(1) Bonds are carried at amortized cost unless they have NAIC designation rating of 6. Fair value of bonds exclude leveraged leases of $2,429 million and $2,439 million at December 31, 2019 and 2018, respectively. The Company calculates the carrying value by accruing income at its expected internal rate of return.

 

41  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Level 3 Financial Instruments

 

The changes in Level 3 financial instruments measured and reported at fair value for the years ended December 31, 2019, 2018 and 2017, are summarized as follows:

 

          Net realized/unrealized gains (losses) included in:                                   Transfers        
                                                       
    Balance at January 1, 2019     Net income (1)     Surplus     Amounts credited to separate account liabilities (2)     Purchases     Issuances     Sales     Settlements     Into Level 3 (3)     Out of Level 3 (3)     Balance at December 31, 2019  
(in millions)                                                                  
Bonds with NAIC 6 rating:                                                                                        
Impaired corporate bonds   $ 6     $ -     $ -     $ -     $ -     $ -     $ (1 )   $ -     $ -     $ -     $ 5  
Impaired mortgage-backed and asset-backed securities     -       -       -       -       -       -       -       -       -       -       -  
Total bonds with NAIC 6 rating     6       -       -       -       -       -       (1 )     -       -       -       5  
Preferred stocks:                                                                                        
Industrial and misc     3       -       -       -       -       -       -       -       -       -       3  
Total preferred stocks     3       -       -       -       -       -       -       -       -       -       3  
Common stocks:                                                                                        
Industrial and misc     111       14       (18 )     -       1       -       (19 )     -       -       -       89  
Total common stocks     111       14       (18 )     -       1       -       (19 )     -       -       -       89  
                                                                                         
Net derivatives     290       425       752       -       10       -       -       (425 )     -       (6 )     1,046  
Separate account assets/liabilities     1,804       26       -       -       35       -       (55 )     -       6       -       1,816  
Total   $ 2,214     $ 465     $ 734     $ -     $ 46     $ -     $ (75 )   $ (425 )   $ 6     $ (6 )   $ 2,959  

 

42  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

          Net realized/unrealized gains (losses) included in:                                   Transfers        
                                                       
    Balance at January 1, 2018     Net income (1)     Surplus     Amounts credited to separate account liabilities (2)     Purchases     Issuances     Sales     Settlements     Into Level 3 (3)     Out of Level 3 (3)     Balance at December 31, 2018  
(in millions)                                                                  
Bonds with NAIC 6 rating:                                                                                        
Impaired corporate bonds   $ 10     $ -     $ -     $ -     $ -     $ -     $ (1 )   $ -     $ -     $ (3 )   $ 6  
Impaired mortgage-backed and asset-backed securities     6       1       -       -       -       -       (7 )     -       -       -       -  
Total bonds with NAIC 6 rating     16       1       -       -       -       -       (8 )     -       -       (3 )     6  
Preferred stocks:                                                                                        
Industrial and misc     -       -       -       -       3       -       -       -       -       -       3  
Total preferred stocks     -       -       -       -       3       -       -       -       -       -       3  
Common stocks:                                                                                        
Industrial and misc     134       44       3       -       4       -       (76 )     -       2       -       111  
Total common stocks     134       44       3       -       4       -       (76 )     -       2       -       111  
                                                                                         
Net derivatives     728       -       (389 )     -       8       -       -       (46 )     -       (11 )     290  
Separate account assets/liabilities     1,844       133       -       -       42       -       (209 )     -       3       (9 )     1,804  
Total   $ 2,722     $ 178     $ (386 )   $ -     $ 57     $ -     $ (293 )   $ (46 )   $ 5     $ (23 )   $ 2,214  

 

43  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

          Net realized/unrealized gains (losses) included in:                                   Transfers        
                                                       
    Balance at January 1, 2017     Net income (1)     Surplus     Amounts credited to separate account liabilities (2)     Purchases     Issuances     Sales     Settlements     Into Level 3 (3)     Out of Level 3 (3)     Balance at December 31, 2017  
(in millions)                                                                  
Bonds with NAIC 6 rating:                                                                                        
Impaired corporate bonds   $ 17     $ (1 )   $ 1     $ -     $ 3     $ -     $ (7 )   $ -     $ -     $ (3 )   $ 10  
Impaired mortgage-backed and asset-backed securities     7       1       -       -       -       -       (2 )     -       -       -       6  
Total bonds with NAIC 6 rating     24       -       1       -       3       -       (9 )     -       -       (3 )     16  
Preferred stocks:                                                                                        
Industrial and misc     -       -       -       -       -       -       -       -       -       -       -  
Total preferred stocks     -       -       -       -       -       -       -       -       -       -       -  
Common stocks:                                                                                        
Industrial and misc     169       49       (24 )     -       8       -       (68 )     -       -       -       134  
Total common stocks     169       49       (24 )     -       8       -       (68 )     -       -       -       134  
                                                                                         
Net derivatives     86       -       758       -       16       -       -       (59 )     -       (73 )     728  
Separate account assets/liabilities     1,896       83       -       -       34       -       (164 )     -       6       (11 )     1,844  
Total   $ 2,175     $ 132     $ 735     $ -     $ 61     $ -     $ (241 )   $ (59 )   $ 6     $ (87 )   $ 2,722  

 

(1) This amount is included in net realized capital gains (losses) on the Statements of Operations.

 

(2) Changes in the fair value of separate account assets are credited directly to separate account liabilities in accordance with NAIC SAP and are not reflected in income.

 

(3) For financial instruments that are transferred into and/or out of Level 3, the Company uses the fair value of the instruments at the beginning of the reporting period.

 

44  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The transfers into Level 3 primarily result from securities that were impaired during the year or securities where a lack of observable market data (versus the previous year) resulted in reclassifying instruments into Level 3. The transfers out of Level 3 primarily result from observable market data becoming available for that instrument, thus eliminating the need to extrapolate market data beyond observable points. Additionally, securities carried at fair value at the beginning of the period but carried at amortized cost at the end of the period due to rating change or change in fair value relative to amortized cost, are included in transfers out of Level 3. Conversely, any securities carried at amortized cost at the beginning of the period and carried at fair value at the end of the year due to SVO rating change or change in fair value relative to amortized cost, are included into transfers into Level 3.

 

8. Reinsurance

 

Certain premiums and benefits are assumed from or ceded to affiliate and other insurance companies under various reinsurance agreements. The Company entered into these reinsurance agreements to shift underlying risk on certain of its products, and to improve cash flow and statutory capital. The ceded reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources.

 

Total reinsurance amounts included in the Company’s accompanying statutory-basis financial statements were as follows:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums earned                        
  Direct   $ 20,649     $ 20,067     $ 20,392  
  Assumed     519       603       605  
  Ceded     (6,220 )     (14,854 )     (2,711 )
  Net   $ 14,948     $ 5,816     $ 18,286  
Benefits to policyholders ceded   $ (15,433 )   $ (15,881 )   $ (16,741 )

 

Reserve amounts ceded to reinsurers not authorized in the State of Michigan are mostly covered by funds withheld assets, letters of credit or trust agreements. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2019, any material recoveries were collateralized or settled by the assuming company.

 

Neither the Company nor any of its related parties control, directly or indirectly, any external reinsurers with whom the Company conducts business. No policies issued by the Company have been reinsured with a foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel the agreement. At December 31, 2019, there were no reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.

 

As of December 31, 2019, if all reinsurance agreements were cancelled the estimated aggregate reduction in unassigned surplus is $5,603 million.

 

45  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Non-Affiliated Reinsurance

 

The table and commentary below consist of the impact of the New York Life (“NYL”) Agreements:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums ceded   $ (233 )   $ (219 )   $ (224 )
Premiums assumed     93       88       91  
Benefits ceded     (601 )     (594 )     (636 )
Benefits assumed     240       238       254  
                         
Other reinsurance receivable (payable)     -       -       (1 )
Funds held by or deposited with reinsured companies     3,038       3,183       3,316  

 

The John Hancock Life Insurance Company (“JHLICO”) closed block was established upon the demutualization of JHLICO for those designated participating policies that were in-force on February 1, 2000.

 

Effective July 1, 2015, the Company entered into coinsurance reinsurance agreements with NYL to cede 100% quota share (“QS”) of the Company’s JHLICO Closed Block policies (“NYL 100% Coinsurance”). In addition, NYL agreed to retrocede 40% QS of the same policy risks back to the Company under a coinsurance funds withheld (“FWH”) agreement (“NYL 40% FWH Retrocession”). Collectively, these agreements are known as the NYL Agreements. The NYL 100% Coinsurance keeps the assets supporting the JHLICO Closed Block together in NYL, and the NYL 40% FWH Retrocession adjusts the net reinsurance to NYL to 60% of the JHLICO Closed Block policies at risk.

 

The table and commentary below consist of the impact of the Reinsurance Group of America (“RGA”) Agreements:

 

    Year ended December 31,        
    2019     2018     2017  
(in millions)                  
Premiums ceded, net   $ (1 )   $ (2,792 )   $ (3 )
Benefits ceded, net     (623 )     (541 )     (418 )
Other reinsurance receivable     81       96       68  
Other amounts payable on reinsurance     -       -       -  

 

Effective July 1, 2018, the Company entered into a coinsurance agreement with RGA to cede 100% quota share (“QS”) of a significant block of individual pay-out annuities.  The transaction was structured such that the Company transferred the policy liabilities of $2,520 million and related invested assets of $2,829 million. The Company incurred a pre-tax loss of $72 million net of realized capital gains, including a ceding commission paid of $33 million, and a decrease of $43 million to statutory surplus.  Under the terms of the agreement, the Company will maintain responsibility for servicing the policies.

 

Effective April 1, 2012, the Company entered into a coinsurance agreement with RGA to cede its fixed deferred annuities at 90% quota share (“QS”). Subsequently, the treaty increased to 100% QS effective February 29, 2016.   The transaction was structured such that the Company transferred the actuarial liabilities and related invested assets. Under the terms of the agreement, the Company will maintain responsibility for servicing the policies.

 

46  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The table and commentary below consist of the impact of the Jackson National Life Insurance Company (“Jackson”) Agreement:

 

    Year ended December 31,  
    2019     2018  
(in millions)            
Premiums ceded, net   $ -     $ (5,317 )
Benefits ceded, net     (474 )     (134 )
                 
Funds held by or deposited with reinsured companies     -       -  
Other reinsurance receivable     45       20  
Other amounts payable on reinsurance     -       -  

 

Effective October 1, 2018, the Company entered into 100% quota share coinsurance agreement with Jackson, a wholly-owned subsidiary of Prudential plc, to reinsure a block of legacy group pay-out annuities.  The transaction was structured such that the Company transferred the policy liabilities of $4,292 million and related invested assets of $5,400 million. The Company incurred a pre-tax loss of $914 million net of realized capital gains, including a ceding commission paid of $222 million, and a decrease of $699 million to statutory surplus. Under the terms of the agreement, the Company will maintain responsibility for servicing the policies.

 

The Company has a number of reinsurance agreements with Scottish Re (U.S.), Inc. (“SRUS”). On March 6, 2019, SRUS was declared impaired and placed into rehabilitation by the Delaware Chancery Court. On May 29, 2019, the State of Michigan Department of Insurance and Financial Services (“DFIS”) revoked SRUS status as an accredited reinsurer in Michigan. As of December 31, 2019, the Company has established full provisions to offset the reserve credit and net reinsurance receivable related to the various agreements with SRUS. Refer to the subsequent events note for further details on the status of the rehabilitation proceedings.

 

Affiliated Reinsurance

 

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, JHNY:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums ceded, net   $ (159 )   $ (167 )   $ (177 )
Benefits ceded, net     (396 )     (408 )     (424 )
                         
Funds held by or deposited with reinsured companies     -       -       -  
Other reinsurance receivable     42       39       46  
Other amounts payable on reinsurance     3       5       4  
Treaty settlement received (paid)*     207       208       227  
                         
* Treaty settlement consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

 

On January 1, 2010, the assets supporting the policyholders who reside in the state of New York (“NY business”) were transferred to JHNY from the Company. The transfer included participating traditional life insurance, variable universal life insurance, universal life insurance, fixed deferred and immediate annuities, participating pension contracts where assets were

 

47  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

held in separate accounts, and variable annuities. The NY business was transferred using assumption reinsurance, modified coinsurance and coinsurance with cut-through provisions.

 

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, JHRECO:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums ceded   $ (510 )   $ (501 )   $ (256 )
Premiums ceded, impact of treaty recaptured     -       -       3,718  
Benefits ceded     (615 )     (573 )     (782 )
                         
Other reinsurance receivable     -       13       2  
Other amounts payable on reinsurance     -       -       -  
Funds held under coinsurance     7,771       7,131       7,048  
Treaty settlement received (paid)*     5       20       (8 )
                         
* Treaty settlement consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

 

The Company also reinsures a portion of the risk related to certain annuity policies. The reinsurance agreement is written on a modified coinsurance basis where the assets supporting the reinsured policies remain invested with the Company. On October 1, 2017, the Company recaptured the pay-out annuity policies with JHRECO. The recapture resulted in pre-tax income of $708 million and an increase in surplus, net of tax, of $460 million.

 

The Company reinsures a large portion of the Long Term Care (“LTC”) risk under a single accounting and capital regime, which helps to manage JHUSA’s overall risk profile and reduce strain on statutory surplus. JHUSA’s indirect parent company, MFC, is regulated on a global basis by the Canadian insurance regulator, The Office of the Superintendent of Financial Institution (“OSFI”), and reports its results on a consolidated International Financial Reporting Standards (“IFRS”) basis. As such, the agreement has no impact on the parent company financial results.

 

JHRECO does not retrocede any risks to a third party or affiliates. The risks assumed by JHRECO are solely the responsibility of JHRECO, but they are also retained within the parent company group. Reserve credits taken were $9,306 million and $9,038 million at December 31, 2019 and 2018, respectively. On December 31, 2017, JHRECO changed its domiciliary jurisdiction from Bermuda to the state of Michigan. As a result of the re-domestication of JHRECO, collateral was no longer required as of December 31, 2017. Total amount of funds withheld (including capital) on behalf of the captive reinsurer that back the long term care liabilities was $7,766 million and $7,131 million at December 31, 2019 and 2018, respectively.

 

48  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, MRBL:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums ceded   $ (3,243 )   $ (3,763 )   $ (3,320 )
Benefits ceded     (10,026 )     (10,700 )     (11,653 )
                         
Other reinsurance receivable     7       185       25  
Other amounts payable on reinsurance     367       660       389  
Funds withheld from unauthorized reinsurers     16       7       -  
Funds held under coinsurance     81       143       141  
Treaty settlement received (paid)*     (448 )     178       480  
                         
* Treaty settlement consisted primarily of ceded investment income related to non-qualifying hedging strategies and changes in the modified coinsurance and coinsurance reserves.

 

The Company reinsures 87% of certain group annuity contracts in-force with MRBL. The reinsurance agreement covers all contracts, excluding the guaranteed benefit rider.

 

The Company reinsures 90% of a significant block of variable annuity contracts in-force with MRBL. All substantial risks, including all guaranteed benefits (GMDB, Guaranteed Minimum Income Benefit (“GMIB”), and GMWB), related to certain specified policies not already reinsured to third parties, are reinsured under the agreement. The base contracts are reinsured on a modified coinsurance basis, while the guaranteed benefit reinsurance coverage is apportioned in accordance with the reinsurance agreement provisions between modified coinsurance and coinsurance FWH. The assets supporting the reinsured policies remain invested with the Company. Since the inception of the treaty in 2008, several amendments have been enacted to refine certain aspects of the treaty. The net MRBL reinsurance recoverable includes the impact of ongoing reinsurance cash flows and is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies with changes to ceded reserves and cost of reinsurance recognized as a component of benefits to policyholders on the Statements of Operations.

 

The Company’s indirect parent company, MFC, is regulated on a global basis by the Canadian insurance regulator, OSFI, and reports on a consolidated IFRS basis. The Company utilizes a dynamic hedging program to manage risks on an economic basis. The IFRS accounting for these derivatives aligns with MFC’s market-based reserving regime. The US statutory accounting and reserving framework does not provide appropriate alignment of economic risk management strategies (hedging) and associated reserve methodologies. The treaty with MRBL provides a mechanism to allow management of the majority of the variable annuity risk under a single consolidated reserve and capital regime, rather than managing the block simultaneously under two very diverse frameworks.

 

As a coinsurance / modified coinsurance treaty, MRBL holds $2,063 million and $1,989 million as a coinsurance reserve and JHUSA holds $249 million and $420 million as a modified coinsurance reserve at December 31, 2019 and 2018, respectively. The IFRS reserves that MRBL holds for variable annuities are similar in concept to Actuarial Guideline 43 (“AG 43”). The calculations are a real-world stochastic calculation at CTE(70), based on the guaranteed benefits and fees in isolation rather than the whole contract, including the cash flows generated from the dynamic hedging program and including margins for adverse deviation. The real-world stochastic scenarios are subject to Canadian Institute of Actuaries equity and bond fund return calibration criteria. Reserve credits taken were $16 million and $7 million at December 31, 2019 and 2018, respectively, and there is no supporting collateral.

 

MRBL does not retrocede any risks to a third party. The risks assumed by MRBL are solely the responsibility of MRBL, but they are also retained within MFC. This transaction has no impact on MFC’s financial statements as it reports its risks on a consolidated basis.

 

49  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

On September 30, 2018, the Company entered into a combination coinsurance and modified coinsurance agreement with MRBL to cede 95% of certain single life and survivorship variable universal life products. The transactions included the transfer from JHUSA of $662 million of policy liabilities. The transactions resulted in a pre-tax gain of $500 million, including a ceding commission received of $500 million, and an increase in surplus of $395 million net of tax, which was deferred and will be amortized over a period of approximately 20 years.

 

The Company entered into a Stop Loss Reinsurance Agreement with MRBL, effective April 1, 2017, simultaneous with entering into a coinsurance with partial funds withheld agreement with MMRC, as described below.

 

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, Manulife Reinsurance Limited (“MRL”):

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums ceded   $ (102 )   $ (133 )   $ (255 )
Benefits ceded     (623 )     (595 )     (545 )
                         
Other reinsurance receivable     -       -       -  
Other amounts payable on reinsurance     7       7       7  
Funds withheld from unauthorized reinsurers     145       329       66  
Treaty settlement received (paid)*     (30 )     (30 )     (28 )
                         
* Treaty settlement consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

 

The Company entered into a coinsurance/modified coinsurance agreement with an affiliate, MRL, to reinsure 90% of all risks not already reinsured to third parties on various universal life contracts effective December 15, 2000. Subsequent amendments added further universal life and some term contracts. The Company amended the agreement during 2014 to simplify treaty administration and to modify the structure of the treaty to a modified coinsurance FWH structure.

 

50  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The table and commentary below consist of the impact of the reinsurance agreement with an affiliate, JHLH:

 

    Years ended December 31,  
    2019     2018     2017  
(in millions)                  
Premiums ceded   $ (27 )   $ (28 )   $ (27 )
Premiums assumed     -       -       -  
Benefits ceded     (24 )     (22 )     (19 )
Benefits assumed     19       19       22  
                         
Other reinsurance receivable     1       -       -  
Other amounts payable on reinsurance     4       5       7  
Funds held under coinsurance     -       -       -  
Treaty settlement received (paid)*     (22 )     (23 )     (28 )
                         
* Treaty settlement consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

 

On December 31, 2016, the Company entered into a coinsurance agreement with an affiliate, JHLH, to reinsure 100% of a block of single premium universal life policies.

 

The table and commentary below consist of the impact of the reinsurance agreement with an affiliate, MMRC:

 

    Years ended December 31,        
    2019     2018     2017  
(in millions)                  
Premiums ceded   $ (150 )   $ (135 )   $ (373 )
Premiums assumed     -       -       -  
Benefits ceded     (22 )     (17 )     (14 )
Benefits assumed     -       -       -  
                         
Other reinsurance receivable     7       -       -  
Other amounts payable on reinsurance     -       22       18  
Funds held under coinsurance     222       102       50  
Treaty settlement received (paid)*     (6 )     (68 )     (55 )

 

* Treaty settlement consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

 

Effective April 1, 2017, the Company entered into a coinsurance with partial FWH agreement with an affiliate, MMRC, to reinsure 100% of the Company’s in-force single-life term life insurance policies and related riders, for certain policy years. The transaction included the transfer to MMRC of $284 million in net policy liabilities. Also, the Company recognized $33 million of FWH liabilities. The transactions resulted in a pre-tax gain of $251 million, including a ceding commission received of $252 million, and an increase in surplus of $163 million, net of tax, which was deferred and will be amortized over a period of approximately 15 years. Subsequent amendment added additional term contracts.

 

The reinsurance agreement with MMRC was entered into to address the surplus strain caused by the excess of XXX NAIC reserves over the VM-20 reserve levels. This transaction was within the scope of Actuarial Guideline 48, the NAIC Term Life and Universal Life with Secondary Guarantees (XXX/AXXX) Credit for Reinsurance Model Regulation (“AG 48”). In accordance with the terms of AG 48, the obligations of MMRC under the reinsurance agreement are supported by a FWH account and a credit-linked note. The FWH account is funded with assets meeting the definition of “Primary Security” under

 

51  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

AG 48 and in an amount equal to or in excess of the VM-20 reserve. The credit-linked note is in the amount of the excess of the statutory reserves over the then current “Required Level of Primary Security”.

 

The Company did not commute any material ceded reinsurance in 2019.

 

9. Federal Income Taxes

 

The components of the net deferred tax asset/(liability) are as follows:

 

    December 31, 2019  
      (1)     (2)     (3)
                      (Col 1 + 2)  
      Ordinary       Capital       Total  
(in millions)                        
                         
(a) Gross deferred tax assets   $ 1,534     $ 69     $ 1,603  
(b) Statutory valuation allowance adjustments     121       -       121  
(c) Adjusted gross deferred tax assets (a - b)     1,413       69       1,482  
(d) Deferred tax assets nonadmitted     -       -       -  
(e) Subtotal net admitted deferred tax asset (c - d)     1,413       69       1,482  
(f) Deferred tax liabilities     1,489       94       1,583  
(g) Net admitted deferred tax asset / (net deferred tax liability) (e - f)   $ (76 )   $ (25 )   $ (101 )
                         
    December 31, 2018  
      (4)     (5)     (6)
                      (Col 4 + 5)  
      Ordinary       Capital       Total  
(in millions)                        
                         
(a) Gross deferred tax assets   $ 1,674     $ 67     $ 1,741  
(b) Statutory valuation allowance adjustments     121       -       121  
(c) Adjusted gross deferred tax assets (a - b)     1,553       67       1,620  
(d) Deferred tax assets nonadmitted     -       -       -  
(e) Subtotal net admitted deferred tax asset (c - d)     1,553       67       1,620  
(f) Deferred tax liabilities     1,628       69       1,697  
(g) Net admitted deferred tax asset / (net deferred tax liability) (e - f)   $ (75 )   $ (2 )   $ (77 )
                         
    Change  
      (7)     (8)     (9)
      (Col 1 - 4)       (Col 2 - 5)       (Col 7 + 8)  
      Ordinary       Capital       Total  
(in millions)                        
                         
(a) Gross deferred tax assets   $ (140 )   $ 2     $ (138 )
(b) Statutory valuation allowance adjustments     -       -       -  
(c) Adjusted gross deferred tax assets (a - b)     (140 )     2       (138 )
(d) Deferred tax assets nonadmitted     -       -       -  
(e) Subtotal net admitted deferred tax asset (c - d)     (140 )     2       (138 )
(f) Deferred tax liabilities     (139 )     25       (114 )
(g) Net admitted deferred tax asset / (net deferred tax liability) (e - f)   $ (1 )   $ (23 )   $ (24 )

 

52  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company has recorded a valuation allowance against specific general business tax credit carryforwards of $121 million for the year ended December 31, 2019. These tax credits were generated by the legacy JHFC group and are subject to the separate return limitation rules. These credits will not expire until 2027, however due to restrictions on the utilization, management believes that it is more likely than not that the Company will not realize the benefit. In assessing the need for a valuation allowance, management considered the future reversal of taxable temporary differences, future taxable income exclusive of reversing temporary differences, taxable income in the carry back period, as well as tax planning strategies. Tax planning strategies were considered to the extent they were both prudent and feasible and if implemented, would result in the realization of deferred tax assets.

 

The amount of adjusted gross deferred tax assets admitted under each component and the resulting increase in deferred tax assets by character are as follows:

 

    December 31, 2019  
      (1)     (2)     (3)
                      (Col 1 + 2)  
      Ordinary       Capital       Total  
(in millions)                        
                         
2. Admission calculation components SSAP No. 101                        
                         
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.   $ -     $ 58     $ 58  
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.
(The lesser of 2(b)1 and 2(b)2 below)		     354       -       354  
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.     354       -       354  
2. Adjusted gross deferred tax assets allowed per limitation threshold.     1,269       -       1,269  
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.     1,059       11       1,070  
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))   $ 1,413     $ 69     $ 1,482  

 

53  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    December 31, 2018  
      (4)     (5)     (6)
                      (Col 4 + 5)  
      Ordinary       Capital       Total  
(in millions)                        
                         
2. Admission calculation components SSAP No. 101                        
                         
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.   $ -     $ 65     $ 65  
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.
(The lesser of 2(b)1 and 2(b)2 below)
    649       -       649  
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.     649       -       649  
2. Adjusted gross deferred tax assets allowed per limitation threshold.     1,328       -       1,328  
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.     904       2       906  
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))   $ 1,553     $ 67     $ 1,620  

 

    Change  
      (7)     (8)     (9)
      (Col 1 - 4)       (Col 2 - 5)       (Col 7 + 8)  
      Ordinary       Capital       Total  
(in millions)                        
                         
2. Admission calculation components SSAP No. 101                        
                         
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.   $ -     $ (7 )   $ (7 )
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.
(The lesser of 2(b)1 and 2(b)2 below)
  (295 )     -       (295 )
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.     (295 )     -       (295 )
2. Adjusted gross deferred tax assets allowed per limitation threshold.     (59 )     -       (59 )
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.     155       9       164  
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))   $ (140 )   $ 2     $ (138 )

 

54  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    2019     2018  
(in millions)                
                 
(a) Ratio percentage used to determine recovery period and threshold limitation amount     845 %     800 %
(b) Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in 2(b)2 above   $ 8,461     $ 8,854  

 

Impact of tax planning strategies is as follows:

 

    December 31, 2019  
      (1)     (2)
                 
      Ordinary       Capital  
(in millions)                
                 
(a)  Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.                
1. Adjusted Gross DTAs Amount From Note 9A1(c)   $ 1,413     $ 69  
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies     0 %     0 %
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)   $ 1,413     $ 69  
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies     0 %     0 %
                 
    December 31, 2018  
      (3)     (4)
                 
      Ordinary       Capital  
(in millions)                
                 
(a)  Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.                
1. Adjusted Gross DTAs Amount From Note 9A1(c)   $ 1,553     $ 67  
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies     0 %     0 %
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)   $ 1,553     $ 67  
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies     0 %     0 %
                 

 

55  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    Change  
      (5)     (6)
      (Col 1 - 3)       (Col 2 - 4)  
      Ordinary       Capital  
(in millions)                
                 
(a)  Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.                
1. Adjusted Gross DTAs Amount From Note 9A1(c)   $ (140 )   $ 2  
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies     0 %     0 %
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)   $ (140 )   $ 2  
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies     0 %     0 %

 

The Company’s tax planning strategies do not include the use of reinsurance.

 

There are no unrecognized deferred tax liabilities for amounts described in ASC 740-10-25-3.

 

Current income taxes incurred consist of the following major components:

 

    Years Ended December 31,  
      (1)     (2)     (3)
                      (Col 1 - 2)  
      2019       2018       Change  
(in millions)                        
                         
1.  Current income tax                        
(a) Federal   $ (286 )   $ (725 )   $ 439  
(b) Foreign     -       -       -  
(c) Subtotal     (286 )     (725 )     439  
(d) Federal income tax on net capital gains     201       396       (195 )
(e) Utilization of capital loss carryforwards     -       -       -  
(f) Other     -       -       -  
(g) Federal and foreign income taxes incurred   $ (85 )   $ (329 )   $ 244  

 

56  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:

 

    December 31,  
      (1)     (2)     (3)
                      (Col 1 - 2)  
      2019       2018       Change  
(in millions)                        
                         
2.  Deferred tax assets:                        
(a) Ordinary:                        
(1) Discounting of unpaid losses   $ -     $ -     $ -  
(2) Unearned premium reserve     -       -       -  
(3) Policyholder reserves     665       654       11  
(4) Investments     80       72       8  
(5) Deferred acquisition costs     462       412       50  
(6) Policyholder dividends accrual     49       53       (4 )
(7) Fixed assets     -       -       -  
(8) Compensation and benefits accrual     32       34       (2 )
(9) Pension accrual     18       17       1  
(10) Receivables - nonadmitted     59       54       5  
(11) Net operating loss carryforward     -       35       (35 )
(12) Tax credit carry-forward     121       333       (212 )
(13) Other (including items <5% of total ordinary tax assets)     48       10       38  
(99) Subtotal   $ 1,534     $ 1,674     $ (140 )
                         
(b) Statutory valuation allowance adjustment     121       121       -  
(c) Nonadmitted     -       -       -  
(d) Admitted ordinary deferred tax assets (2(a)(99) - 2(b) - 2(c))   $ 1,413     $ 1,553     $ (140 )
                         
(e) Capital:                        
(1) Investments   $ 69     $ 67     $ 2  
(2) Net capital loss carryforward     -       -       -  
(3) Real estate     -       -       -  
(4) Other (including items <5% of total capital tax assets)     -       -       -  
(99) Subtotal   $ 69     $ 67     $ 2  
                         
(f) Statutory valuation allowance adjustment     -       -       -  
(g) Nonadmitted     -       -       -  
(h) Admitted capital deferred tax assets (2(e)(99) - 2(f) - 2(g))   $ 69     $ 67     $ 2  
(i) Admitted deferred tax assets (2(d)+2(h))   $ 1,482     $ 1,620     $ (138 )
                         

 

57  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

3.  Deferred tax liabilities:                        
(a) Ordinary:                        
(1) Investments   $ 1,100     $ 1,150     $ (50 )
(2) Fixed assets     18       18       -  
(3) Deferred and uncollected premium     12       9       3  
(4) Policyholder reserves     256       324       (68 )
(5) Other (including items <5% of total ordinary tax liabilities)     103       127       (24 )
(99) Subtotal   $ 1,489     $ 1,628     $ (139 )
(b) Capital:                        
(1) Investments   $ 94     $ 69     $ 25  
(2) Real estate     -       -       -  
(3) Other (including items <5% of total capital tax liabilities)     -       -       -  
(99) Subtotal   $ 94     $ 69     $ 25  
                         
(c) Deferred tax liabilities (3(a)(99) + 3(b)(99))   $ 1,583     $ 1,697     $ (114 )
                         
4.  Net deferred tax assets/liabilities (2(i) - 3(c))   $ (101 )   $ (77 )   $ (24 )

 

The change in net deferred income taxes is comprised of the following:

 

    December 31,  
    2019     2018     Change  
(in millions)                  
                   
Total deferred tax assets   $ 1,482     $ 1,620     $ (138 )
Total deferred tax liabilities     1,583       1,697       (114 )
Net deferred tax assets (liabilities)   $ (101 )   $ (77 )   $ (24 )
Tax effect of unrealized gains and losses                     (126 )
Tax effect of unrealized foreign exchange gains (losses)                     (2 )
Other                     182  
Change in net deferred income taxes                   $ (78 )

 

58  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate of 21% for 2019 and 2018 and 35% for 2017 to income before income tax (including realized capital gains). The significant items causing this difference are as follows:

 

    Years Ended December 31,  
    2019     2018     2017  
(in millions)                  
                   
Ordinary provisions computed at statutory rate   $ 221     $ (7 )   $ 962  
Net realized capital gains (losses) before IMR at statutory rate     87       153       253  
Change in nonadmitted assets     -       -       -  
Reinsurance     (49 )     77       22  
Valuation allowance     -       -       -  
Tax-exempt income     (22 )     1       (22 )
Nondeductible expenses     2       2       1  
Foreign tax expense gross up     6       5       8  
Amortization of IMR     (32 )     (138 )     (68 )
Tax recorded in surplus     (11 )     14       68  
Dividend received deduction     (134 )     (159 )     (184 )
Investment in subsidiaries     (16 )     (18 )     (25 )
Prior year adjustment     (19 )     (69 )     (151 )
Tax credits     (27 )     (23 )     (24 )
Change in tax reserve     (13 )     33       4  
Pension     -       -       -  
Tax rate change     -       (185 )     570  
Other     -       2       1  
Total   $ (7 )   $ (312 )   $ 1,415  
                         
Federal and foreign income taxes incurred   $ (286 )   $ (725 )   $ 446  
Capital gains tax     201       396       243  
Change in net deferred income taxes     78       17       726  
Total statutory income tax expense (benefit)   $ (7 )   $ (312 )   $ 1,415  

 

As of December 31, 2019, the Company had the following carry forwards:

 

    Origination Year     Expiration Year     Amount  
(in millions)                    
                     
Affordable Housing Tax Credits   2007     2027       19  
    2008     2028       53  
    2009     2029       49  
                $ 121  
                     

With the enactment of the Tax Cuts and Jobs Act on December 22, 2017, the net operating loss carryback provision was repealed effective January 1, 2018. The federal income taxes incurred on capital gains available for recoupment in the event of future net capital losses were $0 million, $0 million and $323 million for the years 2019, 2018 and 2017 respectively.

 

The Company has no deposits under Section 6603 of the Internal Revenue Code.

 

59  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company is included in the consolidated federal income tax return of JHFC with the following entities:

 

Essex Corporation John Hancock Insurance Agency Inc.
Farmland Management Services, Inc. John Hancock Leasing Corp.
Guide Financial, Inc. John Hancock Life & Health Insurance Company
Hancock Farmland Services, Inc. John Hancock Life Insurance Company of New York
Hancock Forest Management Inc. John Hancock Realty Advisors Inc.
Hancock Natural Resource Group Inc. John Hancock Realty Mgt. Inc.
JH 575 Rengstorff LLC John Hancock Signature Services Inc.
JH Hostetler LLC John Hancock Natural Resource Corp.
JH Kearny Mesa 5 LLC Manulife (Michigan) Reassurance Company
JH Kearny Mesa 7 LLC Manulife Reinsurance (Bermuda) Limited
JH Kearny Mesa 9 LLC Manulife Reinsurance Limited
JH Networking Insurance Agency Inc. Manulife Service Corporation
JH Ott LLC MCC Asset Management Inc.
JH Tulare 8 LLC PT Timber Inc.
   
John Hancock Assignment Company JH Signature Insurance Agency, Inc. (formerly Signator Insurance Agency Inc.)
John Hancock Financial Corporation The Manufacturers Investment Corporation
John Hancock Financial Network Inc.  
John Hancock Funding Company LLC  
   

In accordance with the income tax sharing agreements in effect for the applicable tax years, the Company’s income tax expense (benefit) is computed as if the Company filed separate federal income tax returns with tax benefits provided for operating losses and tax credits when utilized by the consolidated group. Intercompany settlements of income taxes are made through an increase or reduction to amounts due to or from affiliates. Such settlements occur on a periodic basis in accordance with the tax sharing agreements.

 

Taxes receivable from (payable to) affiliates are $52 million and ($47) million at December 31, 2019 and 2018, respectively, and are included in other assets or current federal income taxes payable on the Balance Sheets.

 

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”), and currently tax years 2014 – 2018 are under audit.

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

    2019     2018  
(in millions)                
                 
Balance at beginning of year   $ 108     $ 60  
Additions based on tax positions related to the current year     1       2  
Payments     -       -  
Additions for tax positions of prior years     -       48  
Reductions for tax positions of prior years     (38 )     (2 )
Balance at end of year   $ 71     $ 108  

 

Included in the balances as of December 31, 2019 and 2018, are $71 million and $108 million, respectively, of unrecognized benefits that, if recognized, would affect the Company’s effective tax rate. Included in the balances as of December 31, 2019 and 2018, are $0 million and ($1) million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

 

The Company’s liability for unrecognized tax benefits is not expected to materially change in the next twelve months.

 

60  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense in the Statements of Operations. The Company recognized approximately $0 million, ($3) million, and ($10) million of interest expense / (benefit) for the years ended December 31, 2019, 2018 and 2017, respectively. The Company had approximately $7 million and $6 million accrued for interest as of December 31, 2019 and 2018, respectively. The Company did not recognize any material penalties for the years ended December 31, 2019, 2018 and 2017.

 

The Company does not have a Repatriation Transition Tax (“RTT”) liability under the Tax Cuts and Jobs Act of 2017 as the RTT was fully remitted to the IRS with the filing of the 2017 and 2018 federal income tax returns.

 

As of December 31, 2019, the Company reported an Alternative Minimum Tax (AMT) Credit carryforward of $34 million, all of which was recorded as a current tax recoverable. The Company expects to recover the remaining balance by 2021.

 

In 2018, the Company updated policy level tax reserves in accordance with the Tax Cuts and Jobs Act (the “Act”) and reflected impacts of $108 million in its temporary differences for Actuarial Liabilities in both deferred tax assets and deferred tax liabilities. The transitional deferred tax liability is being amortized into taxable income over 8 years, in the amount of $14 million per year.

 

10. Capital and Surplus

 

There are no restrictions placed on the Company’s unassigned surplus other than restrictions on dividend payments described below.

 

Under Michigan State insurance laws, no insurer may pay any shareholder dividends from any source other than statutory earned surplus without the prior approval of the Director. Dividends to the shareholder that may be paid without prior approval of the Director are limited by the laws of the State of Michigan. Such dividends are permissible if, together with other dividends or distributions made within the preceding 12 months, they do not exceed the greater of 10% of the JHUSA surplus as of December 31 of the preceding year, or the net gain from operations excluding realized capital gains and (losses) for the 12 month period ending December 31 of the immediately preceding year. For the years ended December 31, 2019, 2018 and 2017, the Company paid ordinary dividends of $845 million, $600 million and $807 million and extraordinary dividends of $0 million, $0 million, and $93 million to its parent company MIC, respectively.

 

Life/health insurance companies are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life/health insurance company is to be determined based on the various risk factors related to it. As of December 31, 2019 and 2018, based on calculations pursuant to those requirements, the Company’s total adjusted capital exceeds the company action level RBC.

 

The Company has surplus notes described below in the amount of $585 million outstanding as of December 31, 2019. The issuance of the surplus notes was approved by the insurance regulators with the following repayment conditions and restrictions: payment of principal and accrued interest otherwise required or permissible cannot be made unless approved by the Board of Directors, approved in writing by the Director, and the Company has sufficient earned surplus or such other funds as may be approved by the Director available for such payment.

 

Surplus notes in the amount of $450 million were issued on February 25, 1994, for cash pursuant to Rule 144A under the Securities Act of 1933. 100% of the issued and outstanding surplus notes are represented by a global note registered in the name of a nominee of the Depository Trust Company. The interest rate is fixed at 7.375%, and interest is payable semi-annually. The notes mature on February 15, 2024. Interest expense was $33 million for years ended December 31, 2019, 2018 and 2017. Total interest paid through December 31, 2019 was $846 million.

 

Pursuant to an amended and restated subordinated surplus note dated September 30, 2008, the Company borrowed $136 million from JHFC. Interest is calculated and reset quarterly at a fluctuating rate equal to 3-month London Inter-Bank Offered Rate (“LIBOR”) plus 125 basis points and is payable semi-annually. The note which was to have matured on December 15, 2016 was extended to December 14, 2021. Interest expense was $5 million, $5 million, and $3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Total interest paid through December 31, 2019 was $29 million.

 

61  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Under Michigan State liquidation statutes, the claims of the Depository Trust Company and JHFC (“the surplus noteholders”) come before those of the Company’s shareholders. There is no preferential treatment in claims between the surplus noteholders.

 

11. Related Party Transactions

 

Service Agreements

 

The Company has formal service agreements with MFC and MLI, which can be terminated by either party upon two months’ notice. Under the various agreements, the Company will pay a fee for services received under the agreement which includes legal, actuarial, investment, data processing, accounting, and certain other administrative services. Management fees relating to the agreement were $216 million, $296 million, and $347 million, respectively, for the years ended December 31, 2019, 2018 and 2017.

 

The Company has Administrative Service Agreements with its subsidiaries and affiliates whereby the Company will be reimbursed for operating expenses incurred by the Company. Services provided under the agreement include legal, personnel, marketing, investment accounting, and certain other administrative services and are billed based on intercompany cost allocations or total average daily net assets. The amounts earned under the agreements were $744 million, $748 million, and $767 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 

Management believes the allocation methods used are reasonable and appropriate in the circumstances; however, the Company’s Balance Sheets and Statements of Operations may not necessarily be indicative of the financial condition that would have existed if the Company operated as an unaffiliated entity.

 

Other

 

During 2019, 2018 and 2017, respectively, the Company received dividends of $22 million, $28 million, and $31 million from John Hancock Variable Trust Advisors LLC (“JHVTA”) (formerly John Hancock Investment Management Services LLC), $77 million, $83 million, and $72 million from JHD, $100 million, $100 million, and $0 million from JHNY, $0 million, $0 million, and $0 million from JHLH, $251 million, $404 million, and $231 million from John Hancock Subsidiaries LLC (“JHS LLC”), and $0 million, $1 million, and $10 million from CLA CRE Opportunity Fund I LP and $0 million, $27 million and $0 million from CIP / MCRT Longview Meadows LLC (“Concord Mews”). These dividends are included in the Company’s net investment income.

 

During 2018, the Company received a return of capital of $80 million from its 91% ownership of Concord Mews.

 

The Company did not own any shares of the stock of its parent, MIC, or its ultimate parent, MFC at December 31, 2019 and 2018, respectively.

 

The Company did not recognize any impairment write-down for its investment in subsidiaries, controlled or affiliated companies for the years ended December 31, 2019, 2018 and 2017, respectively.

 

The Company is the owner and beneficiary of corporate owned life insurance (“COLI”) policies issued by JHLH. The asset balances equal to the cash surrender value of the internal COLI policies was $586 million and $572 million at December 31, 2019 and 2018, respectively.

 

The Company operates a liquidity pool in which affiliates can invest excess cash. Terms of operation and participation in the liquidity pool are set out in the Second Restated and Amended Liquidity Pool and Loan Facility Agreement effective January 1, 2010. The maximum aggregate amounts that JHUSA can accept into the Liquidity Pool are $5 billion in U.S. dollar deposits and $200 million in Canadian dollar deposits. Under the terms of the agreement, certain participants may receive advances from the Liquidity Pool up to certain predetermined limits. By acting as the banker the Company can earn a spread over the amount it pays its affiliates and this aggregation and resulting economies of scale allows the affiliates to improve the investment return on their excess cash. Interest payable on U.S. dollar funds will be reset daily to the one-month U.S. Dollar- London Inter-Bank Bid Rate (“LIBID”) and interest payable on Canadian dollar funds is based off the one-month Canadian Dollar Offering Rate (“CDOR”) plus a spread.

 

62  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The following table details the affiliates and their participation in the Company’s Liquidity Pool:

 

    December 31,  
    2019     2018  
(In millions)            
             
The Manufacturers Investment Corporation   $ 320     $ 66  
John Hancock Financial Corporation     89       113  
Manulife Reinsurance Limited     27       17  
Manulife Reinsurance (Bermuda) Ltd.     229       141  
Manulife (Michigan) Reassurance Company     7       6  
John Hancock Life & Health Insurance Company     228       159  
John Hancock Reassurance Company, Ltd.     65       91  
John Hancock Life Insurance Company New York     520       293  
John Hancock Variable Trust Advisers LLC (formerly John Hancock Investment Management Services LLC)     20       25  
John Hancock Subsidiaries LLC     18       24  
John Hancock Insurance Agency, Inc.     6       5  
Essex Corporation     1       1  
John Hancock Signature Services Inc.     7       9  
JH Partnership Holdings I, II LP     -       -  
John Hancock Realty Advisors     3       6  
John Hancock Investment Management LLC (formerly John Hancock Advisers LLC)     41       47  
Manulife Investment Management (US) LLC (formerly Manulife Asset Management (US) LLC)     39       35  
Hancock Capital Investment Management LLC     8       15  
John Hancock RPS, LLC     49       41  
The Berkeley Financial Group, LLC     2       2  
Manulife Holdings (USA), LLC     -       -  
JH Signature Insurance Agency, Inc. (formerly Signator Insurance Agency, Inc.)     19       11  
JH Networking Insurance Agency, Inc.     6       4  
John Hancock Administrative Services LLC     -       -  
John Hancock Financial Network, Inc.     45       45  
Hancock Natural Resource Group, Inc.     35       68  
Hancock Forest Management, Inc.     6       5  
John Hancock Personal Financial Services, LLC     2       1  
John Hancock Funding Company LLC     (4 )     (9 )
Total   $ 1,788     $ 1,221  

 

Effective March 31, 1996, MLI provides a claims paying guarantee to certain U.S. policyholders. The claims guarantee agreement was terminated effective August 13, 2008, but still remains in effect with respect to policies issued by the Company prior to that date.

 

MFC fully and unconditionally guarantees payments from the guarantee periods of the accumulation phase for certain of the Company’s market value adjusted annuity contracts.

 

MFC fully and unconditionally guarantees JHLICO’s SignatureNotes. In December 2009, the entity that formerly issued these notes, JHLICO, ceased to exist and its property and obligations became the property and obligations of the Company.

 

63  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

MFC’s guarantees of the market value adjusted deferred annuity contracts and SignatureNotes are unsecured obligations of MFC and are subordinated in right of payment to the prior payment in full of all other obligations of MFC, except for other guarantees or obligations of MFC, which by their terms are designated as ranking equally in right of payment with or subordinate to MFC’s guarantees of the market value adjusted deferred annuity contracts and SignatureNotes.

 

The Company also enters into debt and reinsurance transactions with its affiliates. Refer to the debt and reinsurance notes for further details.

 

12. Commitments, Guarantees, Contingencies, and Legal Proceedings

 

Commitments: The Company has extended commitments to purchase long-term bonds of $357 million, purchase other invested assets of $1,988 million, purchase real estate of $48 million, and issue agricultural and commercial mortgages of $22 million at December 31, 2019. If funded, loans related to real estate mortgages would be fully collateralized by related properties. Approximately 34% of these commitments expire in 2020.

 

There were no leasing arrangements that the Company entered into as lessee which could have a material financial effect.

 

During 2001, the Company entered into an office ground lease agreement, which expires on September 20, 2096. In conjunction with the September 25, 2018 sale of the home office property, the total lease commitment for future years related to the office ground lease was reduced by $343 million. During 2012, the Company entered into a parking lease agreement, which expires on December 31, 2050. The terms of the lease agreements provide for adjustments in future periods. The future minimum lease payments, by year and in the aggregate, under these leases and other non-cancelable operating leases along with the associated sub-lease income are as follows:

 

      Non-cancelable Operating Leases  
  (in millions)          
  2020     $ 8  
  2021       5  
  2022       3  
  2023       2  
  2024       2  
  Thereafter       14  
  Total     $ 34  

 

The Company does not have any sublease income related to its office space.

 

The Company’s investment in leveraged leases relates to equipment used primarily in the transportation industries; however, this type of leasing transaction is not a significant part of the Company’s business activities in terms of revenue, net income, or assets.

 

As of December 31, 2018, the Company recorded a restructuring charge of approximately $56 million, net of tax, primarily related to a voluntary early retirement program as well as costs to optimize our real estate footprint in the United States.

 

Guarantees: In the course of business, the Company enters into guarantees which vary in nature and purpose and which are accounted for and disclosed under statutory accounting principles.

 

The Company has issued guarantee agreements pursuant to which the Company guarantees the obligations of JHNY and JHLH under the OTC International Swaps and Derivatives Association, Inc. (“ISDA”) cleared and exchange-traded derivative agreements and transactions entered into by JHNY and JHLH with external counterparties. The ISDA guarantees are subject to an overall limit of $1 billion of Potential Future Exposure, using a three-week and 95% confidence parameters, in calculating the counterparty risk exposure.

 

64  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company is party to a financial support agreement with JHLH pursuant to which it has agreed to maintain JHLH’s capital level such that its risk-based capital ratio shall be at or above 225% of the company action level annually. In addition, under the terms of the financial support agreement, the Company undertakes to provide sufficient liquidity to enable JHLH to make timely payment of its contractual obligations.

 

Contingencies: The Company acts as an intermediary/broker in OTC derivative instruments. In these cases, the Company enters into derivative transactions on behalf of affiliated companies and then enters into offsetting derivative transactions with the affiliate. In the event of default of either party, the Company is still obligated to fulfill its obligations with the other party.

 

The Company is subject to insurance guaranty fund laws in the states in which it does business. Pursuant to these laws, insurance companies are assessed, and required to make periodic payments, to be used to pay benefits to policyholders and claimants of insolvent or rehabilitated insurance companies. Many states allow these assessments to be credited against future premium taxes. The Company believes such assessments in excess of amounts accrued will not materially affect its financial position.

 

Legal Proceedings: The Company is regularly involved in litigation, both as a defendant and as a plaintiff. The litigation naming the Company as a defendant ordinarily involves its activities as a provider of insurance protection and wealth management products, an employer, and a taxpayer. In addition, the Michigan Department of Insurance and Financial Services, the Michigan Attorney General, the Securities and Exchange Commission (“SEC”), the Financial Regulatory Authority, and other government and regulatory bodies regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities laws, and laws governing the activities of broker-dealers. An estimation of the range of potential outcomes in any given matter is often unavailable until such matters have developed and sufficient information emerges to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals and estimates of reasonably possible losses or ranges of loss based on such reviews.

 

A class action against the Company in the U.S. District Court for the Southern District of New York (the “Southern District of NY”) in which claims are made that the Company breached, and continues to breach, the contractual terms of certain universal life policies issued between approximately 1990 and 2006 by including impermissible charges in its cost of insurance (“COI”) calculations and certain other rider charges. The Company believes that its COI calculations have been, and continue to be, in accordance with the terms of the policies. In May 2018, the parties agreed to the financial terms of a settlement in the amount of $91 million. On March 18, 2019, the court approved the $91 million settlement, and proceeds were distributed beginning in June 2019.

 

In June 2018, a class action was initiated against the Company in the Southern District of NY on behalf of owners of performance universal life policies first issued between 2003 and 2009 whose policies are subject to a COI increase announced in 2018. This case has been consolidated with an almost identical related class action that was initiated in October 2018 against the Company in the Southern District of New York and was assigned to the same judge. Discovery has commenced in these cases. No hearings on substantive matters have been scheduled. It is too early to assess the range of potential outcomes for these lawsuits.

 

65  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

13. Annuity Actuarial Reserves

 

The Company’s annuity actuarial reserves and deposit fund liabilities and related separate account liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:

 

    December 31,  2019  
    General Account     Separate Account with Guarantees     Separate Account Nonguaranteed     Total     Percent of Total  
(in millions)                              
0                                        
Subject to discretionary withdrawal:                                        
 With fair value adjustment   $ 459     $ 302     $ 1,567     $ 2,328       2 %
 At book value less current surrender charge of 5% or more     2       -       -       2       0 %
 At fair value     -       -       123,248       123,248       85 %
Total with adjustment or at fair value     461       302       124,815       125,578       87 %
At book value without adjustment (minimal or no charge or adjustment)     4,479       -       -       4,479       3 %
Not subject to discretionary withdrawal     14,322       205       189       14,716       10 %
Total (gross)     19,262       507       125,004       144,773       100 %
Reinsurance ceded     10,116       -       -       10,116          
Total (net)   $ 9,146     $ 507     $ 125,004     $ 134,657          
Amount included in book value less current surrender charge above that will move to book value without adjustment in the year after the statement date   $ -     $ -     $ -     $ -          

 

 

    December 31,  2018  
    General Account     Separate Account with Guarantees     Separate Account Nonguaranteed     Total     Percent of Total  
(in millions)                              
0                                        
Subject to discretionary withdrawal:                                        
 With fair value adjustment   $ 522     $ 337     $ 1,385     $ 2,244       2 %
 At book value less current surrender charge of 5% or more     2       -       -       2       0 %
 At fair value     -       -       109,160       109,160       83 %
Total with adjustment or at fair value     524       337       110,545       111,406       85 %
At book value without adjustment (minimal or no charge or adjustment)     4,937       -       -       4,937       4 %
Not subject to discretionary withdrawal     14,577       207       147       14,931       11 %
Total (gross)     20,038       544       110,692       131,274       100 %
Reinsurance ceded     10,830       -       -       10,830          
Total (net)   $ 9,208     $ 544     $ 110,692     $ 120,444          
Amount included in book value less current surrender charge above that will move to book value without adjustment in the year after the statement date   $ -     $ -     $ -     $ -          

 

66  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

14. Life Actuarial Reserves

 

The Company’s life actuarial reserves and related separate account liabilities that are subject to discretionary withdrawal and not subject to discretionary withdrawal provisions are summarized as follows:

 

    December 31, 2019  
    General Account       Separate Account - Nonguaranteed  
      Account Value       Cash Value       Reserve       Account Value       Cash Value       Reserve  
A. Subject to discretionary withdrawal, surrender values, or policy loans:                                                
(1) Term Policies with Cash Value   $ -     $ -     $ -     $ -     $ -     $ -  
(2) Universal Life     6,018       5,911       6,692       -       -       -  
(3) Universal Life with Secondary Guarantees     14,070       12,258       24,355       -       -       -  
(4) Indexed Universal Life     878       627       869       -       -       -  
(5) Indexed Universal Life with Secondary Guarantees     829       706       735       -       -       -  
(6) Indexed Life     -       -       -       -       -       -  
(7) Other Permanent Cash Value Life Insurance     17,608       17,608       18,733       -       -       -  
(8) Variable Life     -       -       23       1,957       1,927       1,957  
(9) Variable Universal Life     2,963       2,944       3,054       12,947       12,647       12,697  
(10) Miscellaneous Reserves     -       -       4,947       -       -       -  
                                                 
B. Not subject to discretionary withdrawal or no cash values                                                
(1) Term Policies without Cash Value     -       -       3,062       -       -       -  
(2) Accidental Death Benefits     -       -       9       -       -       -  
(3) Disability - Active Lives     -       -       43       -       -       -  
(4) Disability - Disabled Lives     -       -       148       -       -       -  
(5) Miscellaneous Reserves     -       -       320       -       -       -  
C. Total (gross: direct + assumed)   $ 42,366     $ 40,054     $ 62,990     $ 14,904     $ 14,574     $ 14,654  
D. Reinsurance Ceded     9,223       9,150       19,466       -       -       -  
E. Total (net) (C) - (D)   $ 33,143     $ 30,904     $ 43,524     $ 14,904     $ 14,574     $ 14,654  
                                                 

 

67  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    December 31, 2018  
    General Account       Separate Account - Nonguaranteed  
      Account Value       Cash Value       Reserve       Account Value       Cash Value       Reserve  
A. Subject to discretionary withdrawal, surrender values, or policy loans:                                                
(1) Term Policies with Cash Value   $ -     $ -     $ -     $ -     $ -     $ -  
(2) Universal Life     5,772       5,747       6,360       -       -       -  
(3) Universal Life with Secondary Guarantees     14,095       12,073       23,536       -       -       -  
(4) Indexed Universal Life     138       124       126       -       -       -  
(5) Indexed Universal Life with Secondary Guarantees     1,055       782       901       -       -       -  
(6) Indexed Life     -       -       -       -       -       -  
(7) Other Permanent Cash Value Life Insurance     18,005       18,005       19,155       -       -       -  
(8) Variable Life     -       -       24       1,708       1,678       1,708  
(9) Variable Universal Life     2,943       2,914       2,992       10,927       10,569       10,675  
(10) Miscellaneous Reserves     -       -       5,167       -       -       -  
                                                 
B. Not subject to discretionary withdrawal or no cash values                                                
(1) Term Policies without Cash Value     -       -       3,019       -       -       -  
(2) Accidental Death Benefits     -       -       10       -       -       -  
(3) Disability - Active Lives     -       -       46       -       -       -  
(4) Disability - Disabled Lives     -       -       155       -       -       -  
(5) Miscellaneous Reserves     -       -       364       -       -       -  
C. Total (gross: direct + assumed)   $ 42,008     $ 39,645     $ 61,855     $ 12,635     $ 12,247     $ 12,383  
D. Reinsurance Ceded     9,543       9,442       19,760       -       -       -  
E. Total (net) (C) - (D)   $ 32,465     $ 30,203     $ 42,095     $ 12,635     $ 12,247     $ 12,383  
                                                 

15. Separate Accounts

 

Separate accounts held by the Company include individual and group variable annuity and variable life products that offer guaranteed and non-guaranteed returns. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative.

 

For guarantees of amounts in the event of death, the net amount at risk is defined as the excess of the initial sum insured over the current sum insured for fixed premium variable life insurance contracts, and, for other variable life insurance contracts, is equal to the sum insured when the account value is zero and the policy is still in force.

 

The deposits related to variable annuities generally provide a GMDB. For annuity products, this can take the form of either (a) return of no less than total deposits made to the contract less any partial withdrawals; (b) total deposits made to the contract less any partial withdrawals plus a minimum return; (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary; or (d) a combination benefit of (b) and (c) above. The assets and liabilities of these accounts are carried at fair value. The GMDB reserve is held in the Company’s general account policy reserves.

 

The Company sold contracts with GMIB riders from 1998 to 2004. The GMIB rider provides a guaranteed lifetime annuity which may be elected by the contract holder after a stipulated waiting period (7 to 15 years), and which may be larger than what the contract account balance could purchase at then-current annuity purchase rates.

 

68  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The Company sold contracts with a GMWB rider and has since offered multiple variations of this optional benefit. The GMWB rider provides contract holders a guaranteed annual withdrawal amount over a specified time period or in some cases for as long as they live. In general, guaranteed annual withdrawal amounts are based on deposits and may be reduced if withdrawals exceed allowed amounts. Guaranteed amounts may also be increased as a result of “step-up” provisions which increase the benefit base to higher account values at specified intervals. Guaranteed amounts may also be increased if withdrawals are deferred over a specified period. In addition, certain versions of the GMWB rider extend lifetime guarantees to spouses.

 

Reinsurance has been utilized to mitigate risk related to some of the GMDB and GMIB riders.

 

For GMDB, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For GMIB, the net amount at risk is defined as the excess of the current annuitization income base over the current account value. For GMWB, the net amount at risk is defined as the current guaranteed withdrawal amount minus the current account value. For all the guarantees, the net amount at risk is floored at zero at the single contract level.

 

The deposits related to the variable life insurance contracts are invested in separate accounts and the Company guarantees a specified death benefit if certain specified premiums are paid by the policyholder, regardless of separate account performance.

 

The assets legally insulated from the general account are attributed to the following products/transactions:

 

Product/Transaction   Separate Account Legally Insulated Assets    

Separate Account

Not Legally Insulated Assets

  
    December 31,  
(in millions)   2019     2018     2019     2018  
Group Annuity Contracts (401K)   $ 91,376     $ 78,443     $ -     $ -  
Variable and Fixed Annuities     30,453       29,250       20       21  
Life Insurance     15,022       12,771       -       -  
Fixed Products - Institutional and stable value fund     2,009       1,743       -       -  
Fixed Products - Retail     28       26       324       351  
Investments - Funds     1,515       1,526       -       -  
Total   $ 140,403     $ 123,759     $ 344     $ 372  

 

To compensate the general account for the risk taken, the separate account paid risk charges and amounts toward separate account guarantees as follows:

 

    Risk Charges Paid to General Account     Amounts toward Separate Account Guarantees  
  (in millions)                
  2019   $ 196     $ 67  
  2018   $ 210     $ 54  
  2017   $ 220     $ 62  
  2016   $ 231     $ 89  
  2015   $ 241     $ 59  

 

The Company had the following variable annuities with guaranteed benefits:

 

69  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

    December 31,  
    2019     2018  
(in millions, except for ages)            
Account value   $ 30,730     $ 29,577  
Amount of reserve held     1,000       1,230  
Net amount at risk - gross     4,670       7,778  
Weighted average attained age     70       69  

 

The following assumptions and methodology were used to determine the amounts above at December 31, 2019 and 2018:

 

● Actuarial Guideline 43 (“AG 43”) is used in both years to determine the aggregate reserve for products falling under the scope. Assumptions used in the standard scenario are prescribed by the guideline. Assumptions used in the stochastic scenarios are detailed below.

 

● The stochastically generated projection scenarios have met the scenario calibration criteria prescribed in AG 43.

 

● In 2019 and 2018, annuity mortality is based on the Ruark Variable Annuity Table, which is based on an industry study of variable annuity deaths. The table is further adjusted by factors varied by rider types (living benefit/GMDB only) and qualified and non-qualified business.

 

● In 2019 and 2018, annuity base lapse rates vary by product, policy year, and rider type, where the lapse rates range from 0.5% to 40% for GMDB, GMIB and GMWB. In 2018 the base lapse rates also varied by utilizer status. These rates are dynamically reduced for guarantees that are in-the-money and rates are also dynamically increased for GMWBs that are out-of-the-money.

 

● For variable annuities, the swap curve at December 31 is used for discounting in both years.

 

● For variable annuities, mean return, volatility and correlation assumptions are determined by indices, which have met the calibration criteria prescribed in AG 43.

 

Account balances of variable contracts with guarantees were invested in various separate accounts with the following characteristics:

 

    December 31,  
    2019     2018  
(in millions)            
Type of Fund            
Equity   $ 26,688     $ 24,071  
Balanced     8,787       8,365  
Bonds     5,634       5,615  
Money Market     360       517  
Total   $ 41,469     $ 38,568  

 

70  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Information regarding the separate accounts of the Company is as follows:

 

    December 31,  
    2019     2018  
    Nonindexed Guarantee Less than or Equal to 4%     Nonguaranteed Separate Account     Total     Nonindexed Guarantee Less than or Equal to 4%     Nonguaranteed Separate Account     Total  
(in millions)                                    
Premiums, deposits and other considerations   $ -     $ 14,538     $ 14,538     $ -     $ 14,007     $ 14,007  
Reserves for accounts with assets at:                                                
Fair value     507       139,658       140,165       544       123,076       123,620  
Amortized cost     -       -       -       -       -       -  
Total   $ 507     $ 139,658     $ 140,165     $ 544     $ 123,076     $ 123,620  
                                                 

 

    December 31,  
    2019     2018  
    Nonindexed Guarantee Less than or Equal to 4%     Nonguaranteed Separate Account     Total     Nonindexed Guarantee Less than or Equal to 4%     Nonguaranteed Separate Account     Total  
(in millions)                                    
Reserves for separate accounts by withdrawal characteristics:                                                
Subject to discretionary withdrawal:                                                
With fair value adjustment   $ 302     $ 1,567     $ 1,869     $ 337     $ 1,385     $ 1,722  
At book value without fair value adjustments and with current surrender charge of 5% or more     -       1,240       1,240       -       1,329       1,329  
At fair value     -       134,458       134,458       -       118,543       118,543  
At book value without fair value adjustments and with current surrender charge of less than 5%     -       2,204       2,204       -       1,671       1,671  
Subtotal     302       139,469       139,771       337       122,928       123,265  
Not subject to discretionary withdrawal     205       189       394       207       148       355  
Total   $ 507     $ 139,658     $ 140,165     $ 544     $ 123,076     $ 123,620  
                                                 

 

71  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Amounts transferred to and from separate accounts are as follows:

 

    December 31,  
    2019     2018     2017  
                   
(in millions)                        
Transfers to separate accounts   $ 16,277     $ 15,071     $ 17,679  
Transfers from separate accounts     23,327       22,687       26,385  
Net transfers to (from) separate accounts   $ (7,050 )   $ (7,616 )   $ (8,706 )

 

16. Employee Benefit Plans

 

Retirement Plans: The Company participates in the John Hancock Pension Plan, a qualified defined benefit plan that covers substantially all of its employees. The Company also participates in the John Hancock Non-Qualified Pension Plan, a nonqualified defined benefit plan for employees whose qualified cash balance benefit is restricted by the Internal Revenue Code. Both plans are sponsored by MIC. The non-qualified defined benefit plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under this plan continue to be subject to the plan’s provisions.

 

The Company is jointly and severally liable for the funding requirements of the plans and will recognize its allocation, from MIC, of the required contributions to the plans as pension expense in its Statements of Operations. The allocation is derived by utilizing participant data, provided by the plan actuary, to calculate payments into the trust for the qualified plan and payments to participants for the non-qualified plan. The expense for these plans was $30 million, $26 million, and $34 million in 2019, 2018 and 2017, respectively.

 

The Company participates in the John Hancock Supplemental Retirement Plan, a non-qualified defined contribution plan maintained by MFC, which was established as of January 1, 2008 with participant directed investment options. The expense for this plan was not material for the years ended 2019, 2018 and 2017, respectively. The prior non-qualified defined contribution plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under the prior plan continue to be subject to the prior plan provisions.

 

The Company also maintains a separate rabbi trust for the purpose of holding assets to be used to satisfy its obligations with respect to certain other non-qualified retirement plans of $313 million and $308 million at December 31, 2019 and 2018, respectively. In the event of insolvency of the Company, the rabbi trust assets can be used to satisfy claims of general creditors.

 

During 2018, the Company implemented its North American voluntary early retirement program.  The program resulted in the voluntary separation of 229 employees in the U.S. by the end of 2019.  A curtailment loss of $7 million resulting from the program was recorded by MIC in earnings during the 4th quarter of 2018.  This loss represents the change in net defined benefit and retiree welfare liabilities due to employees separating sooner and with different post-retirement benefits than had previously been assumed. The Company will recognize its allocation of the curtailment loss in earnings as payments to participants are made.

 

401 (k) Plans: The Company participates in qualified defined contribution plans for its employees who meet certain eligibility requirements. These plans include the Investment-Incentive Plan for John Hancock Employees and the John Hancock Savings and Investment Plan. Both plans are sponsored by JHUSA. Expense is primarily comprised of the amounts the Company contributes to the plans, which fully matches eligible participants’ basic pre-tax or Roth contributions, subject to a 4% per participant maximum. The expense for the defined contribution plans was not material for the years ended 2019, 2018 and 2017, respectively.

 

Deferred Compensation Plan: The Company maintains the Deferred Compensation Plan for Certain Employees of John Hancock, and the Deferred Compensation Plan of the John Hancock Financial Network, both of which are deferred compensation plans sponsored by MFC. These plans are for a select group of management or highly compensated employees and certain qualified agents. The plans are fully funded and accounts are maintained by a third-party administrator. Under these plans, participants have the flexibility and opportunity to invest their plan balances in mutual funds. The liability for these plans at December 31, 2019 and 2018 was $127 million and $108 million, respectively.

 

72  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Prior to January 1, 2006, the Company offered the Legacy Deferred Compensation Plan for Certain Employees of John Hancock Life Insurance Company (USA), the legacy plan, which is closed to new participation and is unfunded. These are notional accounts and all liabilities have remained with the Company and are paid out of general account assets when a distribution is taken. The liability for this plan was not material as of December 31, 2019 and 2018 respectively.

 

Postretirement Benefit Plan: The Company participates in the John Hancock Employee Welfare Plan which is sponsored by MIC. Consistent with the pension plan, the Company is jointly and severally liable for the funding requirements of the plan and will recognize its allocation, from MIC, of the benefits earned by plan participants as postretirement benefits expense in its Statements of Operations. The allocation is derived by utilizing participant data, provided by the plan actuary, to calculate the benefits earned; i.e., service cost, relating to participants employed by the Company. In addition, any difference between actual cash paid for benefits to plan participants and benefits earned is recorded directly to unassigned surplus. The expense and charge to surplus for the John Hancock Employee Welfare Plan were not material for the years ended 2019, 2018 and 2017, respectively.

 

17. Lines of Credit, Consumer Notes and Affiliated Debt

 

Lines of Credit: At December 31, 2019, JHUSA and MIC share in a committed line of credit established by MFC totaling $1 billion, which was extended to 2023. MFC will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, the Company is required to maintain a certain minimum level of net worth and comply with certain other covenants, as long as any amount is owed to the lender under the agreement. At December 31, 2019, the Company had no outstanding borrowings under the agreement.

 

The Company had a committed line of credit agreement established by MLI totaling $1 billion. MLI committed, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, the Company is required to maintain a certain minimum level of net worth and comply with certain other covenants as long as any amount is owed to the lender under the agreement. The committed line of credit expired on March 18, 2018.

 

At December 31, 2019, the Company, MFC, and other MFC subsidiaries had a committed line of credit through a group of banks totaling $500 million pursuant to a multi-year facility, which will expire in 2021. The banks will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, MFC is required to maintain a certain minimum level of net worth, and MFC and the Company are required to comply with certain other covenants, which were met at December 31, 2019. At December 31, 2019, MFC and its subsidiaries, including the Company, had no outstanding borrowings under the agreement.

 

At December 31, 2019, the Company had a line of credit agreement established with JHS LLC totaling up to $120 million, which will expire February 15, 2022. Under the agreement, the Company may loan funds, when requested, at prevailing interest rates as determined in accordance with the line of credit agreement. At December 31, 2019, the Company had $115 million outstanding borrowings under the agreement with a fair value of $115 million. This loan replaced a senior note receivable for $30 million issued by JHS LLC during 2016, and additional advances of $25 million on February 15, 2017 and $60 million on May 21, 2018. Interest on the loan is calculated at a fluctuating rate equal to the 360 day-year for the actual number of days elapsed and is payable annually. The combined interest income on the loans was $4 million and $3 million for the years ended December 31, 2019 and 2018.

 

Effective April 17, 2018, the Company entered into a committed line of credit agreement with John Hancock Funding Company LLC, (“JHFLLC”), a wholly-owned subsidiary of JHS LLC, totaling up to $400 million which will expire April 27, 2023. Under the agreement, the Company may loan funds, when requested, at prevailing interest rates as determined in accordance with the line of credit agreement. Interest on the loan is calculated at a fluctuating rate equal to the 360 day-year for the actual number of days elapsed and is payable quarterly. Effective June 13, 2019, the agreement was terminated, and the Company had no outstanding borrowings under the agreement.

 

Consumer Notes: The Company issued consumer notes through its SignatureNotes Program. SignatureNotes may be redeemed upon the death of the holder, subject to an annual overall program redemption limitation of 1% of the aggregate securities outstanding, or $1 million, or an individual redemption limitation of $200,000 of aggregate principal. SignatureNotes have a variety of issue dates, maturities, interest rates and call provisions. The notes payable balance as of

 

73  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

December 31, 2019 and 2018 was $138 million and $154 million, respectively. Interest ranging from 4.9% to 6.0%. The notes are due in varying amounts to 2032.

 

Aggregate maturities of consumer notes are as follows: 2020-$0 million; 2021-$0 million; 2022-$13 million; 2023-$33 million; 2024-$0 million; and thereafter $92 million.

 

Interest expense on consumer notes, included in benefits to policyholders, was $4 million, $10 million, and $11 million in 2019, 2018 and 2017, respectively. Interest paid amounted to $6 million, $8 million, and $11 million in 2019, 2018 and 2017, respectively.

 

Affiliated Debt: Pursuant to a demand note receivable dated September 30, 2008, the Company had $295 million outstanding with MIC. The note, which was to have matured on March 31, 2013, was extended to March 31, 2018. This note was reported as a nonadmitted asset at December 31, 2016 since the counterparty is the parent entity of the Company; however, this note continued to accrue interest throughout the duration of the contract as per the terms of the note. Prior to March 31, 2013, the interest rate was calculated at a fluctuating rate equal to 3-month LIBOR plus 83 basis points per annum. Following the extension, the interest rate was calculated at a fluctuating rate equal to 3-month LIBOR plus 180 basis points per annum. Interest income was $0 million, $0 million, and $7 million for the years ended December 31, 2019, 2018 and 2017, respectively. The demand note receivable was fully repaid on September 30, 2017.

 

Pursuant to a promissory note dated June 28, 2012, the Company borrowed $153 million from Manulife Finance Switzerland AG (“MFSA”). Interest on the loan was calculated at a fluctuating rate equal to 3-month LIBOR plus 90 basis points per annum and was payable quarterly. In addition, the Company renewed two previously outstanding promissory notes to MFSA with an outstanding balance of $7 million and combined these notes with the new note issued on June 28, 2012, thus bringing the total principal balance due to $160 million. On June 3, 2015, the maturity date was extended for a period of one year to June 28, 2016. Following the extension, the interest rate was amended and was calculated at a fluctuating rate equal to 3-month LIBOR plus 88 basis points per annum and was payable quarterly effective from June 28, 2015. On May 31, 2016, the maturity date was extended for a period of one year to June 28, 2017. Following the extension, the interest rate was amended and was calculated at a fluctuating rate equal to 3-month LIBOR plus 88 basis points per annum and was payable quarterly effective from June 28, 2016. On May 22, 2017, the maturity date was extended for a period of one year to June 28, 2018. Following the extension, the interest rate was amended and was calculated at a fluctuating rate equal to 3-month LIBOR plus 88 basis points per annum and was payable quarterly effective from June 28, 2017. Interest expense was $0 million, $0 million, and $3 million for the years ended December 31, 2019, 2018 and 2017, respectively. The promissory note was fully repaid as of December 31, 2017.

 

Pursuant to a senior note receivable dated December 9, 2014, the Company had $40 million outstanding with JHS LLC as of December 31, 2016. During 2017, JHS LLC repaid $15 million of the outstanding loan bringing the outstanding principal balance to $25 million with a fair value of $25 million as of December 31, 2017. During 2018, JHS LLC repaid $15 million of the outstanding loan bringing the outstanding principal balance to $10 million with a fair value of $10 million as of December 31, 2018. The senior note was fully repaid on December 9, 2019. Interest on the loan is calculated at a fluctuating rate equal to the 3-month LIBOR rate plus 180 basis points per annum and is payable quarterly. Interest income was $0 million, $1 million, and $1 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 

FHLB (Federal Home Loan Bank) Agreements: The Company is a member of the Federal Home Loan Bank of Indianapolis (FHLBI). The Company uses advances from the FHLBI as a part of its liquidity management program, and any funds obtained for this purpose would be accounted for as borrowed money.

 

74  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The following table indicates the aggregate amount of the FHLBI capital stock held related to the agreement:

 

    December 31, 2019  
   

(1)

(Col 2 +3)

Total

    

(2)

General Account

    

(3)

Separate Account

  
(in millions)                  
(a)  Membership stock - Class A   $ -     $ -     $ -  
(b)  Membership stock - Class B     20       20       -  
(c)  Activity stock     -       -       -  
(d)  Excess stock     -       -       -  
(e)  Aggregate total   $ 20     $ 20     $ -  
(f)  Actual or estimated borrowing capacity as determined by the insurer   $ 451                  
                         
    December 31, 2018  
     

(1)

(Col 2 +3)

Total

      

(2)

General Account

      

(3)

Separate Account

  
(in millions)                        
(a)  Membership stock - Class A   $ -     $ -     $ -  
(b)  Membership stock - Class B     19       19       -  
(c)  Activity stock     -       -       -  
(d)  Excess stock     -       -       -  
(e)  Aggregate total   $ 19     $ 19     $ -  
(f)  Actual or estimated borrowing capacity as determined by the insurer   $ 430                  

 

FHLBI membership stock of $0 million and $0 million was classified as not eligible for redemption for the years ended December 31, 2019 and 2018, respectively.

 

The following table indicates the collateral pledged to the FHLBI at the end of the year:

 

      December 31, 2019  
(in millions)   Fair Value     Carrying Value     Aggregate Total Borrowing  
(a) General account   $ -     $ -     $ -  
(b) Separate account     -       -       -  
(c) Total collateral pledged   $ -     $ -     $ -  
                         
                         
      December 31, 2018  
(in millions)   Fair Value     Carrying Value     Aggregate Total Borrowing  
(a) General account   $ -     $ -     $ -  
(b) Separate account     -       -       -  
(c) Total collateral pledged   $ -     $ -     $ -  

 

75  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

The following table indicates the maximum collateral pledged to the FHLBI during the year:

 

    December 31, 2019  
(in millions)   Fair Value     Carrying Value     Amount Borrowed at Time of Maximum Collateral  
(a) General account   $ 572     $ 526     $ 300  
(b) Separate account     -       -       -  
(c) Total maximum collateral pledged   $ 572     $ 526     $ 300  
                         
    December 31, 2018  
(in millions)   Fair Value     Carrying Value    

Amount Borrowed at Time of Maximum Collateral

  
(a) General account   $ -     $ -     $ -  
(b) Separate account     -       -       -  
(c) Total maximum collateral pledged   $ -     $ -     $ -  

 

The following table represents the aggregate amount of borrowing from FHLBI:

 

    December 31, 2019
   

(1)

(Col 2 +3)

Total

    

(2)

General Account 

    

(3)

Separate Account

    

(4)

Funding Agreements Reserves Established

  
(in millions)                                
(a)  Debt   $ -     $ -     $ -     $ -  
(b)  Funding agreements     -       -       -       -  
(c)  Other     -       -       -       -  
(d)  Aggregate total   $ -     $ -     $ -     $ -  
                                 
                                 
    December 31, 2018  
   

(1)

(Col 2 +3)

Total

    

(2)

General Account

    

(3)

Separate Account

    

(4)

Funding Agreements Reserves Established

  
(in millions)                                
(a)  Debt   $ -     $ -     $ -     $ -  
(b)  Funding agreements     -       -       -       -  
(c)  Other     -       -       -       -  
(d)  Aggregate total   $ -     $ -     $ -     $ -  

 

The maximum amount of aggregate borrowings from FHLBI during 2019 was $300 million. The Company is not subject to any prepayment obligations under current borrowing agreements.

 

18. Closed Block

 

The Company operates a closed block for the benefit of certain classes of individual or joint traditional participating whole life insurance policies. The JHUSA closed block was established upon the demutualization of MLI for those designated participating policies that were in-force on September 23, 1999.

 

76  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

Assets were allocated to the closed block in an amount that, together with anticipated revenues from policies included in the closed block, was reasonably expected to be sufficient to support such business, including provision for payment of benefits, direct asset acquisition and disposition costs, taxes, and for continuation of dividend scales, assuming experience underlying such dividend scales continues.

 

Assets allocated to the closed block inure solely to the benefit of policyholders included in the closed block and will not revert to the benefit of the shareholders of the Company. In addition, if the assets allocated to the closed block and the revenues from the closed block business prove to be insufficient to pay the benefits guaranteed in the closed block, the Company will be required to make payments from its general funds in an amount equal to the shortfall.

 

If, over time, the aggregate performance of the assets and policies of a closed block is better than was assumed in funding that closed block, dividends to policyholders for that closed block will be increased. If, over time, the aggregate performance of the assets and policies of a closed block is less favorable than was assumed in funding that closed block, dividends to policyholders for that closed block will be reduced.

 

No reallocation, transfer, borrowing, or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without prior notification to or approval of the Insurance Department.

 

The excess of the closed block liabilities over the closed block assets represents the expected future post-tax contribution from the closed block which may be recognized in income over the period the policies and contracts in the closed block remain in force.

 

The following table sets forth certain summarized financial information relating to the JHUSA closed block.

 

    December 31,  
    2019     2018  
(in millions)            
             
Assets:                
Bonds   $ 2,145     $ 2,222  
Stocks:                
Preferred stocks     -       -  
Common stocks     -       -  
Mortgage loans on real estate     429       327  
Real estate     668       661  
Cash, cash equivalents and short-term investments     5       332  
Policy loans     1,780       1,734  
Other invested assets     437       407  
Total cash and invested assets     5,464       5,683  
Investment income due and accrued     113       110  
Premiums due     4       4  
Net deferred tax asset     35       32  
Other closed block assets     7       372  
Total closed block assets   $ 5,623     $ 6,201  
Obligations:                
Policy reserves     5,346       5,407  
Policyholders’ and beneficiaries’ funds     56       58  
Dividends payable to policyholders     295       304  
Policy benefits in process of payment     65       61  
Other policy obligations     2       6  
Other closed block obligations     192       663  
Total closed block obligations   $ 5,956     $ 6,499  

 

77  

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

 

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

19. Subsequent Events

 

The Company evaluated the recognition and disclosure of subsequent events for its December 31, 2019 financial statements through March 26, 2020, the date the financial statements were issued.

 

The Company reached a settlement agreement with the Receiver of SRUS, in rehabilitation, which was approved by the Delaware Chancery Court on February 28, 2020. Under the terms of the settlement, the yearly renewable term reinsurance agreements between the Company and SRUS were commuted and terminated effective as of January 1, 2020; certain term coinsurance agreements were novated to Hannover Life Reassurance Company of America effective January 1, 2019; and the arbitration between the Company and SRUS was dismissed with prejudice. The Company expects to record an increase in pre-tax income of approximately $130 to $160 million comprised of the cash payment and the reversal of provisions previously established for the term coinsurance business.

 

78  

 

Table of Contents

A U D I T E D F I N A N C I A L S T A T E M E N T S

John Hancock Life Insurance Company (U.S.A.) Separate Account H

December 31, 2019

1 of 80

 

John Hancock Life Insurance Company (U.S.A.)

Separate Account H

Audited Financial Statements

December 31, 2019

Contents

 

Report of Independent Registered Public Accounting Firm..........................................................

3

Statements of Assets and Liabilities ..............................................................................................

6

Statements of Operations and Changes in Contract Owners' Equity ..........................................

25

Notes to Financial Statements......................................................................................................

63

2 of 80

 

Report of Independent Registered Public Accounting Firm

To the Board of Directors of John Hancock Life Insurance Company (U.S.A.) and Contract Owners of John Hancock Life Insurance Company (U.S.A.) Separate Account H

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in the Appendix that comprise John Hancock Life Insurance Company (U.S.A.) Separate Account H (the "Separate Account") as of December 31, 2019, and the related statements of operations and changes in contract owners' equity for the two years in the period then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts as of December 31, 2019, the results of its operations and changes in contract owners' equity for each of the two years then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on each of the subaccounts' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the fund companies or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of the Separate Account since 1996.

Boston, Massachusetts

March 26, 2020

3 of 80

 

Appendix

Subaccounts comprising John Hancock Life

Insurance Company (U.S.A.) Separate Account H

500 Index Fund Series I

Lifestyle Growth Portfolio Series I

500 Index Fund Series II

Lifestyle Growth Portfolio Series II

500 Index Fund Series NAV

Lifestyle Growth Portfolio Series NAV

Active Bond Trust Series I

Lifestyle Moderate Portfolio Series I

Active Bond Trust Series II

Lifestyle Moderate Portfolio Series II

American Asset Allocation Trust Series I

Managed Volatility Aggressive Portfolio Series I

American Asset Allocation Trust Series II

Managed Volatility Aggressive Portfolio Series II

American Asset Allocation Trust Series III

Managed Volatility Balanced Portfolio Series I

American Global Growth Trust Series II

Managed Volatility Balanced Portfolio Series II

American Global Growth Trust Series III

Managed Volatility Conservative Portfolio Series I

American Growth Trust Series II

Managed Volatility Conservative Portfolio Series II

American Growth Trust Series III

Managed Volatility Growth Portfolio Series I

American Growth-Income Trust Series I

Managed Volatility Growth Portfolio Series II

American Growth-Income Trust Series II

Managed Volatility Growth Portfolio Series NAV

American Growth-Income Trust Series III

Managed Volatility Moderate Portfolio Series I

American International Trust Series II

Managed Volatility Moderate Portfolio Series II

American International Trust Series III

Mid Cap Index Trust Series I

Basic Value Focus

Mid Cap Index Trust Series II

Blue Chip Growth Trust Series I

Mid Cap Stock Trust Series I

Blue Chip Growth Trust Series II

Mid Cap Stock Trust Series II

Capital Appreciation Trust Series I

Mid Value Trust Series I

Capital Appreciation Trust Series II

Mid Value Trust Series II

Capital Appreciation Value Trust Series II

Money Market Trust Series I

Core Bond Trust Series I

Money Market Trust Series II

Core Bond Trust Series II

Money-Market Trust Series NAV

DWS Equity 500 Index

Mutual Shares Trust Series I

Emerging Markets Value Trust Series II

PIMCO All Asset

Emerging Markets Value Trust Series NAV

Real Estate Securities Trust Series I

Equity Income Trust Series I

Real Estate Securities Trust Series II

Equity Income Trust Series II

Science & Technology Trust Series I

Financial Industries Trust Series I

Science & Technology Trust Series II

Financial Industries Trust Series II

Select Bond Trust Series I

Fundamental All Cap Core Trust Series II

Select Bond Trust Series II

Fundamental Large Cap Value Trust Series I

Short Term Government Income Trust Series I

Fundamental Large Cap Value Trust Series II

Short Term Government Income Trust Series II

Global Allocation

Small Cap Index Trust Series I

Global Bond Trust Series I

Small Cap Index Trust Series II

Global Bond Trust Series II

Small Cap Opportunities Trust Series I

Global Trust Series I

Small Cap Opportunities Trust Series II

Global Trust Series II

Small Cap Stock Trust Series I

Health Sciences Trust Series I

Small Cap Stock Trust Series II

Health Sciences Trust Series II

Small Cap Value Trust Series I

High Yield Trust Series I

Small Cap Value Trust Series II

High Yield Trust Series II

Small Company Value Trust Series I

4 of 80

 

Appendix

Subaccounts comprising John Hancock Life

Insurance Company (U.S.A.) Separate Account H

International Equity Index Series I

Small Company Value Trust Series II

International Equity Index Series II

Strategic Income Opportunities Trust Series I

International Equity Index Series NAV

Strategic Income Opportunities Trust Series II

International Small Company Trust Series I

Total Bond Market Series Trust NAV

International Small Company Trust Series II

Total Bond Market Trust Series II

International Value Trust Series I

Total Stock Market Index Trust Series I

International Value Trust Series II

Total Stock Market Index Trust Series II

Investment Quality Bond Trust Series I

Ultra Short Term Bond Trust Series I

Investment Quality Bond Trust Series II

Ultra Short Term Bond Trust Series II

Lifestyle Aggressive Portfolio Series I

Value Opportunities

Lifestyle Aggressive Portfolio Series II

 

Lifestyle Balanced Portfolio Series I

 

Lifestyle Balanced Portfolio Series II

 

Lifestyle Conservative Portfolio Series I

 

Lifestyle Conservative Portfolio Series II

 

5 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Asset

 

 

500 Index Fund

 

 

500 Index Fund

 

 

500 Index Fund

 

Active Bond Trust

 

Active Bond Trust

 

 

Allocation Trust

 

 

Series I

 

 

Series II

 

 

Series NAV

 

 

Series I

 

 

Series II

 

 

Series I

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

142,076,585

$

62,607,548

$

187,146,562

$

25,396,484

$

124,666,861

$

113,207,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

4,842,937

 

 

2,242,750

 

 

6,219,636

 

 

1,211,899

 

 

6,289,837

 

 

4,962,883

Unit value

$

29.34

$

27.92

$

30.09

$

20.96

$

19.82

$

22.81

Shares

 

3,754,667

 

 

1,653,223

 

 

4,945,734

 

 

2,594,125

 

 

12,708,141

 

 

8,999,036

Cost

$

103,558,190

$

48,443,101

$

109,929,751

$

25,323,352

$

123,312,916

$

115,978,285

See accompanying notes.

6 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

American Asset

 

 

American Asset

 

American Global

 

American Global

 

 

 

 

 

 

 

 

Allocation Trust

 

 

Allocation Trust

 

Growth Trust Series

 

Growth Trust Series

 

American Growth

 

American Growth

 

 

Series II

 

 

Series III

 

 

II

 

 

III

 

 

Trust Series II

 

 

Trust Series III

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

900,003,726

$

122,258,625

$

151,504,471

$

29,729,771

$

535,195,068

$

90,207,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

41,210,803

 

 

4,588,427

 

 

5,857,465

 

 

966,792

 

 

11,473,883

 

 

2,594,074

Unit value

$

21.84

$

26.64

$

25.87

$

30.75

$

46.64

$

34.77

Shares

 

71,542,427

 

 

9,718,492

 

 

9,215,600

 

 

1,809,481

 

 

30,740,670

 

 

5,175,443

Cost

$

863,327,572

$

120,110,794

$

135,135,812

$

26,315,449

$

553,737,237

$

94,084,202

See accompanying notes.

7 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

American Growth-

 

American Growth-

 

American Growth-

 

 

American

 

 

American

 

 

 

 

Income Trust Series

 

Income Trust Series

 

Income Trust Series

 

International Trust

 

International Trust

 

 

 

 

 

I

 

 

II

 

 

III

 

 

Series II

 

 

Series III

 

Basic Value Focus

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

112,835,221

$

441,928,219

$

201,783,478

$

270,479,924

$

36,565,330

$

4,218,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

2,633,987

 

 

11,501,928

 

 

6,268,748

 

 

8,655,421

 

 

1,949,411

 

 

85,894

Unit value

$

42.84

$

38.42

$

32.19

$

31.25

$

18.76

$

49.12

Shares

 

6,888,597

 

 

27,095,538

 

 

12,349,050

 

 

13,646,818

 

 

1,851,409

 

 

307,949

Cost

$

120,150,104

$

466,098,350

$

212,857,857

$

237,379,387

$

32,128,282

$

4,119,967

See accompanying notes.

8 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

Blue Chip Growth

 

Blue Chip Growth

 

Capital Appreciation

 

Capital Appreciation

 

Capital Appreciation

 

 

Core Bond Trust

 

 

Trust Series I

 

 

Trust Series II

 

 

Trust Series I

 

 

Trust Series II

 

Value Trust Series II

 

 

Series I

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

241,695,303

$

116,834,201

$

142,529,810

$

57,288,987

$

260,485,567

$

61,700,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

3,479,298

 

 

2,455,487

 

 

4,686,518

 

 

1,315,030

 

 

9,499,228

 

 

3,442,150

Unit value

$

69.47

$

47.58

$

30.41

$

43.56

$

27.42

$

17.92

Shares

 

7,015,829

 

 

3,516,984

 

 

26,443,378

 

 

12,086,284

 

 

20,855,530

 

 

4,601,071

Cost

$

215,632,712

$

109,358,394

$

195,019,465

$

80,441,925

$

244,237,170

$

61,456,701

See accompanying notes.

9 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

 

 

Emerging Markets

 

 

 

 

 

 

 

 

Core Bond Trust

 

 

DWS Equity 500

 

Emerging Markets

 

Value Trust Series

 

Equity Income Trust

 

Equity Income Trust

 

 

Series II

 

 

Index

 

Value Trust Series II

 

 

NAV

 

 

Series I

 

 

Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

71,520,654

$

12,152,337

$

30,665,134

$

1,485,372

$

177,744,950

$

115,218,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

4,176,391

 

 

247,183

 

 

2,551,526

 

 

121,755

 

 

3,052,348

 

 

3,726,352

Unit value

$

17.12

$

49.16

$

12.02

$

12.20

$

58.23

$

30.92

Shares

 

5,341,348

 

 

525,166

 

 

3,204,298

 

 

155,536

 

 

11,579,476

 

 

7,545,430

Cost

$

71,125,410

$

9,240,444

$

32,519,354

$

1,582,245

$

185,495,625

$

120,963,264

See accompanying notes.

10 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

Fundamental All

 

Fundamental Large

 

Fundamental Large

 

 

 

 

Financial Industries

 

Financial Industries

 

 

Cap Core Trust

 

 

Cap Value Trust

 

 

Cap Value Trust

 

 

 

 

 

Trust Series I

 

 

Trust Series II

 

 

Series II

 

 

Series I

 

 

Series II

 

Global Allocation

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

9,201,500

$

13,265,478

$

43,403,587

$

190,759,963

$

141,440,064

$

254,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

341,785

 

 

473,391

 

 

962,528

 

 

6,025,331

 

 

4,994,005

 

 

10,767

Unit value

$

26.92

$

28.02

$

45.09

$

31.66

$

28.32

$

23.65

Shares

 

653,516

 

 

950,249

 

 

1,772,298

 

 

8,247,296

 

 

6,072,995

 

 

14,925

Cost

$

8,550,758

$

12,259,002

$

32,570,522

$

146,444,776

$

108,490,027

$

243,845

See accompanying notes.

11 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

Global Bond Trust

 

Global Bond Trust

 

 

 

 

Global Trust Series

 

 

Health Sciences

 

 

Health Sciences

 

 

Series I

 

 

Series II

 

Global Trust Series I

 

 

II

 

 

Trust Series I

 

 

Trust Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

22,478,608

$

53,891,847

$

95,996,383

$

26,152,255

$

50,630,689

$

60,712,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

722,008

 

 

2,737,227

 

 

3,559,744

 

 

1,201,857

 

 

582,531

 

 

729,173

Unit value

$

31.13

$

19.69

$

26.97

$

21.76

$

86.92

$

83.26

Shares

 

1,827,529

 

 

4,450,194

 

 

4,790,239

 

 

1,310,890

 

 

1,862,792

 

 

2,450,041

Cost

$

23,180,682

$

54,888,356

$

84,850,584

$

25,346,885

$

47,795,858

$

57,080,941

See accompanying notes.

12 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Small

 

 

High Yield Trust

 

 

High Yield Trust

 

International Equity

 

International Equity

 

International Equity

 

 

Company Trust

 

 

Series I

 

 

Series II

 

 

Index Series I

 

 

Index Series II

 

Index Series NAV

 

 

Series I

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

54,750,312

$

47,178,051

$

18,350,048

$

18,330,746

$

10,616,523

$

18,693,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

2,760,033

 

 

1,939,528

 

 

1,072,797

 

 

1,100,473

 

 

785,461

 

 

861,503

Unit value

$

19.84

$

24.32

$

17.10

$

16.66

$

13.52

$

21.70

Shares

 

10,310,793

 

 

8,672,436

 

 

1,002,735

 

 

1,000,587

 

 

580,455

 

 

1,299,978

Cost

$

55,965,227

$

46,591,015

$

16,820,959

$

17,510,870

$

8,896,096

$

15,535,512

See accompanying notes.

13 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

International Small

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Trust

 

International Value

 

International Value

 

Investment Quality

 

Investment Quality

 

Lifestyle Aggressive

 

 

Series II

 

 

Trust Series I

 

 

Trust Series II

 

Bond Trust Series I

 

Bond Trust Series II

 

 

Portfolio Series I

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

12,083,943

$

53,424,598

$

44,181,874

$

120,543,748

$

62,379,694

$

2,786,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

579,462

 

 

2,610,501

 

 

2,030,349

 

 

5,735,757

 

 

3,224,863

 

 

148,782

Unit value

$

20.85

$

20.47

$

21.76

$

21.02

$

19.34

$

18.73

Shares

 

841,500

 

 

4,135,031

 

 

3,422,299

 

 

10,583,297

 

 

5,471,903

 

 

178,987

Cost

$

10,915,248

$

51,218,368

$

43,364,746

$

121,271,109

$

61,846,874

$

2,456,467

See accompanying notes.

14 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

Lifestyle

 

 

Lifestyle

 

 

 

 

Lifestyle Aggressive

 

Lifestyle Balanced

 

Lifestyle Balanced

 

 

Conservative

 

 

Conservative

 

 

Lifestyle Growth

 

Portfolio Series II

 

 

Portfolio Series I

 

Portfolio Series II

 

 

Portfolio Series I

 

Portfolio Series II

 

 

Portfolio Series I

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

6,475,244

$

27,494,219

$

553,245,350

$

9,490,780

$

110,661,347

$

207,532,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

352,432

 

 

1,640,275

 

 

31,281,890

 

 

626,460

 

 

7,165,081

 

 

11,475,507

Unit value

$

18.37

$

16.76

$

17.69

$

15.15

$

15.44

$

18.08

Shares

 

415,880

 

 

1,781,868

 

 

35,785,598

 

 

693,770

 

 

8,077,471

 

 

12,265,512

Cost

$

5,749,542

$

26,025,767

$

516,481,989

$

9,236,196

$

107,713,550

$

197,309,350

See accompanying notes.

15 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

Lifestyle Growth

 

 

 

 

 

 

 

Managed Volatility

 

Managed Volatility

 

 

Lifestyle Growth

 

 

Portfolio Series

 

Lifestyle Moderate

 

Lifestyle Moderate

 

Aggressive Portfolio

 

Aggressive Portfolio

 

Portfolio Series II

 

 

NAV

 

 

Portfolio Series I

 

Portfolio Series II

 

 

Series I

 

 

Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

4,925,106,114

$

6,144,525

$

9,197,640

$

170,456,387

$

41,517,216

$

66,468,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

266,955,426

 

 

404,696

 

 

568,523

 

 

9,978,953

 

 

1,528,933

 

 

2,564,367

Unit value

$

18.45

$

15.18

$

16.18

$

17.08

$

27.15

$

25.92

Shares

 

290,738,259

 

 

363,366

 

 

619,370

 

 

11,455,402

 

 

3,883,743

 

 

6,235,284

Cost

$

4,646,761,337

$

5,907,340

$

8,719,551

$

160,841,560

$

39,165,501

$

59,359,594

See accompanying notes.

16 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

Managed Volatility

 

Managed Volatility

 

Managed Volatility

 

Managed Volatility

 

Managed Volatility

 

Managed Volatility

 

Balanced Portfolio

 

Balanced Portfolio

 

 

Conservative

 

 

Conservative

 

 

Growth Portfolio

 

 

Growth Portfolio

 

 

Series I

 

 

Series II

 

 

Portfolio Series I

 

Portfolio Series II

 

 

Series I

 

 

Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

380,723,844

$

4,759,115,107

$

93,727,154

$

845,498,208

$

398,917,605

$

6,896,470,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

15,262,080

 

 

208,520,088

 

 

3,914,787

 

 

42,134,682

 

 

16,743,641

 

 

296,880,687

Unit value

$

24.95

$

22.82

$

23.94

$

20.07

$

23.83

$

23.23

Shares

 

30,678,795

 

 

385,978,516

 

 

7,976,779

 

 

72,512,711

 

 

30,038,976

 

 

521,275,186

Cost

$

382,671,413

$

4,612,270,816

$

95,312,101

$

862,661,803

$

385,077,240

$

6,229,931,578

See accompanying notes.

17 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

Managed Volatility

 

Managed Volatility

 

Managed Volatility

 

 

 

 

 

 

 

 

 

 

 

Growth Portfolio

 

Moderate Portfolio

 

Moderate Portfolio

 

 

Mid Cap Index

 

 

Mid Cap Index

 

 

Mid Cap Stock

 

 

Series NAV

 

 

Series I

 

 

Series II

 

 

Trust Series I

 

 

Trust Series II

 

 

Trust Series I

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

458,651

$

141,679,779

$

1,476,853,070

$

83,184,093

$

60,113,618

$

131,034,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

19,749

 

 

5,471,606

 

 

67,001,075

 

 

1,882,040

 

 

1,468,191

 

 

3,149,775

Unit value

$

23.22

$

25.89

$

22.04

$

44.20

$

40.94

$

41.60

Shares

 

34,485

 

 

11,865,978

 

 

124,628,951

 

 

3,888,924

 

 

2,824,889

 

 

7,251,475

Cost

$

432,980

$

148,757,492

$

1,544,219,456

$

84,805,424

$

59,628,246

$

121,380,045

See accompanying notes.

18 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

Mid Cap Stock

 

 

Mid Value Trust

 

 

Mid Value Trust

 

Money Market Trust

 

Money Market Trust

 

Money-Market Trust

 

 

Trust Series II

 

 

Series I

 

 

Series II

 

 

Series I

 

 

Series II

 

 

Series NAV

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

74,431,293

$

43,106,122

$

43,145,664

$

23,529,238

$

111,045,980

$

4,644,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

1,491,827

 

 

1,197,829

 

 

1,272,276

 

 

1,613,238

 

 

9,749,906

 

 

375,823

Unit value

$

49.89

$

35.99

$

33.91

$

14.59

$

11.39

$

12.36

Shares

 

4,446,314

 

 

4,453,112

 

 

4,452,597

 

 

23,529,238

 

 

111,045,980

 

 

4,644,968

Cost

$

70,380,170

$

48,755,007

$

48,812,754

$

23,529,238

$

111,045,980

$

4,644,968

See accompanying notes.

19 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

Real Estate

 

 

Real Estate

 

 

Science &

 

 

Science &

 

Mutual Shares Trust

 

 

 

 

 

Securities Trust

 

 

Securities Trust

 

Technology Trust

 

Technology Trust

 

 

Series I

 

PIMCO All Asset

 

 

Series I

 

 

Series II

 

 

Series I

 

 

Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

152,712,870

$

7,848,764

$

30,586,853

$

34,623,536

$

101,864,379

$

49,722,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

6,757,963

 

 

367,008

 

 

475,800

 

 

729,668

 

 

2,201,413

 

 

929,263

Unit value

$

22.60

$

21.39

$

64.29

$

47.45

$

46.27

$

53.51

Shares

 

22,827,036

 

 

714,173

 

 

1,298,805

 

 

1,471,464

 

 

3,461,243

 

 

1,794,374

Cost

$

178,104,265

$

7,568,295

$

22,394,995

$

26,492,254

$

88,735,863

$

48,420,073

See accompanying notes.

20 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

Short Term

 

 

Short Term

 

 

 

 

 

 

 

Select Bond Trust

 

Select Bond Trust

 

Government Income

 

Government Income

 

 

Small Cap Index

 

 

Small Cap Index

 

 

Series I

 

 

Series II

 

 

Trust Series I

 

 

Trust Series II

 

 

Trust Series I

 

 

Trust Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

168,846,936

$

369,066,054

$

23,038,429

$

19,947,254

$

11,902,313

$

29,572,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

11,230,425

 

 

26,548,850

 

 

1,869,108

 

 

1,683,089

 

 

333,681

 

 

824,184

Unit value

$

15.03

$

13.90

$

12.33

$

11.85

$

35.67

$

35.88

Shares

 

12,244,158

 

 

26,724,551

 

 

1,908,735

 

 

1,651,263

 

 

796,674

 

 

1,991,404

Cost

$

166,667,455

$

362,343,827

$

23,443,471

$

19,924,118

$

11,617,715

$

28,057,533

See accompanying notes.

21 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

Small Cap

 

 

Small Cap

 

 

 

 

 

 

 

 

 

 

 

 

 

Opportunities Trust

 

Opportunities Trust

 

 

Small Cap Stock

 

 

Small Cap Stock

 

 

Small Cap Value

 

 

Small Cap Value

 

 

Series I

 

 

Series II

 

 

Trust Series I

 

 

Trust Series II

 

 

Trust Series I

 

 

Trust Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

31,997,017

$

25,691,957

$

824,976

$

31,804,821

$

738,937

$

24,815,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

765,207

 

 

656,858

 

 

25,747

 

 

790,917

 

 

22,312

 

 

727,481

Unit value

$

41.81

$

39.11

$

32.04

$

40.21

$

33.12

$

34.11

Shares

 

1,253,802

 

 

1,029,738

 

 

92,903

 

 

3,873,912

 

 

40,623

 

 

1,373,271

Cost

$

35,791,539

$

28,908,509

$

845,871

$

34,025,171

$

813,381

$

26,527,886

See accompanying notes.

22 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2019

 

 

 

 

 

 

 

 

Strategic Income

 

 

Strategic Income

 

 

 

 

 

 

 

 

Small Company

 

 

Small Company

 

Opportunities Trust

 

Opportunities Trust

 

Total Bond Market

 

Total Bond Market

 

Value Trust Series I

 

Value Trust Series II

 

 

Series I

 

 

Series II

 

Series Trust NAV

 

 

Trust Series II

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

38,287,441

$

38,190,461

$

28,056,708

$

30,786,382

$

91,184,111

$

52,973,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

765,198

 

 

972,522

 

 

1,167,636

 

 

1,383,336

 

 

6,564,337

 

 

4,043,213

Unit value

$

50.04

$

39.27

$

24.03

$

22.26

$

13.89

$

13.10

Shares

 

3,695,699

 

 

3,857,622

 

 

2,075,200

 

 

2,270,382

 

 

8,784,596

 

 

5,093,586

Cost

$

53,516,174

$

53,312,731

$

27,833,979

$

30,574,497

$

90,750,220

$

51,708,369

See accompanying notes.

23 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF ASSETS AND LIABILITIES

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

Total Stock Market

 

Total Stock Market

 

 

Ultra Short Term

 

 

Ultra Short Term

 

 

 

 

Index Trust Series I

 

Index Trust Series II

 

Bond Trust Series I

 

Bond Trust Series II

 

Value Opportunities

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value

$

44,392,596

$

36,133,626

$

9,489,340

$

216,056,209

$

2,961,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units outstanding

 

1,485,619

 

 

967,269

 

 

775,048

 

 

18,954,068

 

 

32,597

Unit value

$

29.88

$

37.36

$

12.24

$

11.40

$

90.84

Shares

 

1,846,614

 

 

1,509,341

 

 

824,443

 

 

18,771,174

 

 

120,471

Cost

$

38,224,946

$

26,579,474

$

9,554,651

$

216,408,884

$

2,457,972

See accompanying notes.

24 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

500 Index Fund Series I

 

 

500 Index Fund Series II

 

 

500 Index Fund Series NAV

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

2,249,004

$

1,860,749

$

872,952

$

662,612

$

3,121,438

$

2,612,776

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,980,345)

 

(2,106,554)

 

 

(934,665)

 

(949,432)

 

 

(1,884,214)

 

(2,046,285)

Net investment income (loss)

 

268,659

 

(245,805)

 

 

(61,713)

 

(286,820)

 

 

1,237,224

 

566,491

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

2,005,210

 

2,223,016

 

 

864,968

 

892,043

 

 

2,723,284

 

3,072,780

Net realized gain (loss)

 

5,704,366

 

6,201,809

 

 

4,608,325

 

5,280,233

 

 

19,015,002

 

17,318,343

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,709,576

 

8,424,825

 

 

5,473,293

 

6,172,276

 

 

21,738,286

 

20,391,123

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

26,336,506

 

(15,967,158)

 

 

9,201,295

 

(9,483,425)

 

 

25,032,315

 

(29,645,848)

Net increase (decrease) in net assets from operations

 

34,314,741

 

(7,788,138)

 

 

14,612,875

 

(3,597,969)

 

 

48,007,825

 

(8,688,234)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

231,436

 

215,929

 

 

76,750

 

93,227

 

 

167,393

 

120,009

Transfers between sub-accounts and the

 

(1,700,094)

 

330,230

 

 

1,638,897

 

2,521,098

 

 

(11,373,603)

 

(1,311,521)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(14,945,805)

 

(15,618,806)

 

 

(6,140,122)

 

(6,419,447)

 

 

(21,194,141)

 

(22,990,943)

Annual contract fee

 

(216,824)

 

(229,808)

 

 

(219,970)

 

(219,012)

 

 

(1,586,953)

 

(1,678,092)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,631,287)

 

(15,302,455)

 

 

(4,644,445)

 

(4,024,134)

 

 

(33,987,304)

 

(25,860,547)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

17,683,454

 

(23,090,593)

 

 

9,968,430

 

(7,622,103)

 

 

14,020,521

 

(34,548,781)

Net assets at beginning of period

 

124,393,131

 

147,483,724

 

 

52,639,118

 

60,261,221

 

 

173,126,041

 

207,674,822

Net assets at end of period

$

142,076,585

$

124,393,131

$

62,607,548

$

52,639,118

$

187,146,562

$

173,126,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

5,483,417

 

6,105,141

 

 

2,418,409

 

2,585,889

 

 

7,467,644

 

8,459,157

Units issued

 

144,991

 

298,524

 

 

333,287

 

366,323

 

 

97,377

 

292,691

Units redeemed

 

(785,471)

 

(920,248)

 

 

(508,946)

 

(533,803)

 

 

(1,345,385)

 

(1,284,204)

Units, end of period

 

4,842,937

 

5,483,417

 

 

2,242,750

 

2,418,409

 

 

6,219,636

 

7,467,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

25 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Active Bond Trust Series I

 

 

Active Bond Trust Series II

 

 

American Asset Allocation Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

695,395

$

849,077

$

3,117,196

$

3,898,011

$

1,476,055

$

1,854,732

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(382,743)

 

(407,520)

 

 

(2,012,044)

 

(2,217,926)

 

 

(1,606,587)

 

(1,740,690)

Net investment income (loss)

 

312,652

 

441,557

 

 

1,105,152

 

1,680,085

 

 

(130,532)

 

114,042

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

-

 

-

 

 

11,825,464

 

13,464,732

Net realized gain (loss)

 

13,902

 

(203,761)

 

 

(830,536)

 

(2,237,607)

 

 

3,365,720

 

5,749,292

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,902

 

(203,761)

 

 

(830,536)

 

(2,237,607)

 

 

15,191,184

 

19,214,024

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

1,604,469

 

(845,057)

 

 

8,384,712

 

(2,942,710)

 

 

4,028,420

 

(26,395,775)

Net increase (decrease) in net assets from operations

 

1,931,023

 

(607,261)

 

 

8,659,328

 

(3,500,232)

 

 

19,089,072

 

(7,067,709)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

79,938

 

94,701

 

 

57,523

 

68,258

 

 

277,148

 

380,953

Transfers between sub-accounts and the

 

1,605,697

 

(88,277)

 

 

9,536,211

 

(2,177,144)

 

 

546,503

 

53,035

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(3,915,853)

 

(2,524,297)

 

 

(13,849,476)

 

(17,824,867)

 

 

(11,562,865)

 

(12,016,481)

Annual contract fee

 

(43,058)

 

(39,967)

 

 

(375,813)

 

(414,263)

 

 

(117,107)

 

(136,161)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,273,276)

 

(2,557,840)

 

 

(4,631,555)

 

(20,348,016)

 

 

(10,856,321)

 

(11,718,654)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(342,253)

 

(3,165,101)

 

 

4,027,773

 

(23,848,248)

 

 

8,232,751

 

(18,786,363)

Net assets at beginning of period

 

25,738,737

 

28,903,838

 

 

120,639,088

 

144,487,336

 

 

104,975,117

 

123,761,480

Net assets at end of period

$

25,396,484

$

25,738,737

$

124,666,861

$

120,639,088

$

113,207,868

$

104,975,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,321,839

 

1,451,268

 

 

6,519,934

 

7,618,528

 

 

5,496,001

 

6,072,330

Units issued

 

151,868

 

58,838

 

 

723,481

 

518,450

 

 

208,937

 

225,711

Units redeemed

 

(261,808)

 

(188,267)

 

 

(953,578)

 

(1,617,044)

 

 

(742,055)

 

(802,040)

Units, end of period

 

1,211,899

 

1,321,839

 

 

6,289,837

 

6,519,934

 

 

4,962,883

 

5,496,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

26 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

American Asset Allocation Trust Series II

 

 

American Asset Allocation Trust Series III

 

 

American Global Growth Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

10,934,296

$

14,593,040

$

2,011,554

$

2,513,547

$

793,923

$

925,056

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(12,809,810)

 

(14,180,256)

 

 

(1,078,769)

 

(1,181,298)

 

 

(2,152,955)

 

(2,396,755)

Net investment income (loss)

 

(1,875,514)

 

412,784

 

 

932,785

 

1,332,249

 

 

(1,359,032)

 

(1,471,699)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

96,405,666

 

111,887,201

 

 

12,860,175

 

14,794,155

 

 

14,486,141

 

8,902,642

Net realized gain (loss)

 

47,917,895

 

64,173,555

 

 

5,172,657

 

7,279,076

 

 

4,515,432

 

8,855,412

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

144,323,561

 

176,060,756

 

 

18,032,832

 

22,073,231

 

 

19,001,573

 

17,758,054

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

13,250,951

 

(235,414,403)

 

 

3,027,266

 

(29,941,227)

 

 

23,672,597

 

(31,568,115)

Net increase (decrease) in net assets from operations

 

155,698,998

 

(58,940,863)

 

 

21,992,883

 

(6,535,747)

 

 

41,315,138

 

(15,281,760)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

463,630

 

555,537

 

 

38,122

 

30,600

 

 

209,924

 

220,866

Transfers between sub-accounts and the

 

(11,232,148)

 

(8,655,408)

 

 

(2,090,173)

 

(1,365,547)

 

 

(9,914,393)

 

(2,162,256)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(106,870,383)

 

(118,757,856)

 

 

(13,315,447)

 

(15,649,920)

 

 

(13,934,670)

 

(20,642,073)

Annual contract fee

 

(6,485,267)

 

(6,976,976)

 

 

(682,738)

 

(730,313)

 

 

(809,905)

 

(870,960)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(124,124,168)

 

(133,834,703)

 

 

(16,050,236)

 

(17,715,180)

 

 

(24,449,044)

 

(23,454,423)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

31,574,830

 

(192,775,566)

 

 

5,942,647

 

(24,250,927)

 

 

16,866,094

 

(38,736,183)

Net assets at beginning of period

 

868,428,896

 

1,061,204,462

 

 

116,315,978

 

140,566,905

 

 

134,638,377

 

173,374,560

Net assets at end of period

$

900,003,726

$

868,428,896

$

122,258,625

$

116,315,978

$

151,504,471

$

134,638,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

47,315,029

 

54,126,606

 

 

5,240,224

 

5,984,170

 

 

6,910,615

 

7,935,807

Units issued

 

296,775

 

196,483

 

 

12,663

 

6,455

 

 

164,520

 

425,075

Units redeemed

 

(6,401,001)

 

(7,008,060)

 

 

(664,460)

 

(750,401)

 

 

(1,217,670)

 

(1,450,267)

Units, end of period

 

41,210,803

 

47,315,029

 

 

4,588,427

 

5,240,224

 

 

5,857,465

 

6,910,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

27 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

American Global Growth Trust Series III

 

 

American Growth Trust Series II

 

 

American Growth Trust Series III

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

281,475

$

304,977

$

3,841,888

$

1,710,380

$

1,041,245

$

678,148

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(268,871)

 

(282,681)

 

 

(8,093,186)

 

(8,902,195)

 

 

(814,236)

 

(880,181)

Net investment income (loss)

 

12,604

 

22,296

 

 

(4,251,298)

 

(7,191,815)

 

 

227,009

 

(202,033)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

2,850,141

 

1,698,613

 

 

92,750,500

 

100,089,623

 

 

15,505,162

 

16,505,644

Net realized gain (loss)

 

1,103,876

 

834,600

 

 

10,944,502

 

52,886,652

 

 

2,421,023

 

4,582,882

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,954,017

 

2,533,213

 

 

103,695,002

 

152,976,275

 

 

17,926,185

 

21,088,526

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

4,583,880

 

(5,296,165)

 

 

31,714,232

 

(148,951,749)

 

 

4,895,562

 

(20,516,689)

Net increase (decrease) in net assets from operations

 

8,550,501

 

(2,740,656)

 

 

131,157,936

 

(3,167,289)

 

 

23,048,756

 

369,804

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

13,344

 

6,354

 

 

316,215

 

483,181

 

 

45,255

 

17,188

Transfers between sub-accounts and the

 

(3,014,090)

 

814,964

 

 

(28,495,994)

 

(20,557,843)

 

 

(6,027,914)

 

(4,140,048)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(2,633,082)

 

(2,873,512)

 

 

(61,500,015)

 

(74,850,434)

 

 

(9,253,265)

 

(9,883,377)

Annual contract fee

 

(155,450)

 

(157,024)

 

 

(1,845,078)

 

(2,001,087)

 

 

(586,537)

 

(612,822)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,789,278)

 

(2,209,218)

 

 

(91,524,872)

 

(96,926,183)

 

 

(15,822,461)

 

(14,619,059)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

2,761,223

 

(4,949,874)

 

 

39,633,064

 

(100,093,472)

 

 

7,226,295

 

(14,249,255)

Net assets at beginning of period

 

26,968,548

 

31,918,422

 

 

495,562,004

 

595,655,476

 

 

82,981,676

 

97,230,931

Net assets at end of period

$

29,729,771

$

26,968,548

$

535,195,068

$

495,562,004

$

90,207,971

$

82,981,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,174,421

 

1,252,683

 

 

13,670,917

 

16,058,791

 

 

3,092,636

 

3,579,993

Units issued

 

14,862

 

82,166

 

 

209,547

 

559,080

 

 

35,899

 

119,968

Units redeemed

 

(222,491)

 

(160,428)

 

 

(2,406,581)

 

(2,946,954)

 

 

(534,461)

 

(607,325)

Units, end of period

 

966,792

 

1,174,421

 

 

11,473,883

 

13,670,917

 

 

2,594,074

 

3,092,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

28 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

American Growth-Income Trust Series I

 

 

American Growth-Income Trust Series II

 

 

American Growth-Income Trust Series III

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

1,624,218

$

1,608,729

$

6,109,053

$

6,065,412

$

3,667,260

$

3,612,847

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,622,196)

 

(1,780,383)

 

 

(6,821,559)

 

(7,535,900)

 

 

(1,830,060)

 

(1,984,015)

Net investment income (loss)

 

2,022

 

(171,654)

 

 

(712,506)

 

(1,470,488)

 

 

1,837,200

 

1,628,832

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

12,814,275

 

14,171,725

 

 

52,080,169

 

57,242,000

 

 

23,502,903

 

25,461,036

Net realized gain (loss)

 

(250,715)

 

4,019,698

 

 

2,130,479

 

27,670,715

 

 

2,619

 

3,096,649

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,563,560

 

18,191,423

 

 

54,210,648

 

84,912,715

 

 

23,505,522

 

28,557,685

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

10,623,537

 

(21,314,964)

 

 

39,894,649

 

(95,062,904)

 

 

19,154,688

 

(33,420,377)

Net increase (decrease) in net assets from operations

 

23,189,119

 

(3,295,195)

 

 

93,392,791

 

(11,620,677)

 

 

44,497,410

 

(3,233,860)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

74,896

 

80,859

 

 

278,932

 

325,001

 

 

75,738

 

39,740

Transfers between sub-accounts and the

 

(3,086,555)

 

(2,652,453)

 

 

(18,194,875)

 

(9,439,251)

 

 

(9,193,271)

 

(6,874,013)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(9,935,605)

 

(12,700,094)

 

 

(50,658,427)

 

(65,790,816)

 

 

(21,037,818)

 

(21,613,036)

Annual contract fee

 

(213,910)

 

(233,901)

 

 

(1,670,097)

 

(1,821,928)

 

 

(1,300,970)

 

(1,359,553)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,161,174)

 

(15,505,589)

 

 

(70,244,467)

 

(76,726,994)

 

 

(31,456,321)

 

(29,806,862)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

10,027,945

 

(18,800,784)

 

 

23,148,324

 

(88,347,671)

 

 

13,041,089

 

(33,040,722)

Net assets at beginning of period

 

102,807,276

 

121,608,060

 

 

418,779,895

 

507,127,566

 

 

188,742,389

 

221,783,111

Net assets at end of period

$

112,835,221

$

102,807,276

$

441,928,219

$

418,779,895

$

201,783,478

$

188,742,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

2,972,560

 

3,387,677

 

 

13,514,027

 

15,764,325

 

 

7,330,807

 

8,379,737

Units issued

 

30,125

 

68,945

 

 

121,565

 

482,756

 

 

45,572

 

218,379

Units redeemed

 

(368,698)

 

(484,062)

 

 

(2,133,664)

 

(2,733,054)

 

 

(1,107,631)

 

(1,267,309)

Units, end of period

 

2,633,987

 

2,972,560

 

 

11,501,928

 

13,514,027

 

 

6,268,748

 

7,330,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

29 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

American International Trust Series II

 

 

American International Trust Series III

 

 

Basic Value Focus

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

2,148,320

$

7,573,108

$

464,889

$

1,188,581

$

90,192

$

71,363

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(4,169,731)

 

(4,725,580)

 

 

(334,707)

 

(370,706)

 

 

(59,427)

 

(67,821)

Net investment income (loss)

 

(2,021,411)

 

2,847,528

 

 

130,182

 

817,875

 

 

30,765

 

3,542

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

19,200,246

 

11,503,923

 

 

2,571,323

 

1,513,206

 

 

340,833

 

461,816

Net realized gain (loss)

 

14,272,252

 

17,790,411

 

 

1,987,092

 

1,719,631

 

 

166,441

 

135,449

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,472,498

 

29,294,334

 

 

4,558,415

 

3,232,837

 

 

507,274

 

597,265

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

18,950,358

 

(77,584,323)

 

 

2,478,883

 

(9,626,853)

 

 

258,816

 

(979,826)

Net increase (decrease) in net assets from operations

 

50,401,445

 

(45,442,461)

 

 

7,167,480

 

(5,576,141)

 

 

796,855

 

(379,019)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

250,831

 

255,482

 

 

46,370

 

5,584

 

 

-

 

-

Transfers between sub-accounts and the

 

(6,791,116)

 

13,729,000

 

 

(933,064)

 

2,403,498

 

 

(48,281)

 

(142,935)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(33,347,029)

 

(39,793,367)

 

 

(4,160,081)

 

(4,841,425)

 

 

(348,939)

 

(567,873)

Annual contract fee

 

(1,075,161)

 

(1,187,096)

 

 

(287,441)

 

(309,207)

 

 

(9,662)

 

(10,837)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,962,475)

 

(26,995,981)

 

 

(5,334,216)

 

(2,741,550)

 

 

(406,882)

 

(721,645)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

9,438,970

 

(72,438,442)

 

 

1,833,264

 

(8,317,691)

 

 

389,973

 

(1,100,664)

Net assets at beginning of period

 

261,040,954

 

333,479,396

 

 

34,732,066

 

43,049,757

 

 

3,828,929

 

4,929,593

Net assets at end of period

$

270,479,924

$

261,040,954

$

36,565,330

$

34,732,066

$

4,218,902

$

3,828,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

10,102,987

 

11,002,549

 

 

2,255,035

 

2,403,967

 

 

95,425

 

109,061

Units issued

 

339,775

 

799,093

 

 

61,863

 

172,864

 

 

267

 

1,017

Units redeemed

 

(1,787,341)

 

(1,698,655)

 

 

(367,487)

 

(321,796)

 

 

(9,798)

 

(14,653)

Units, end of period

 

8,655,421

 

10,102,987

 

 

1,949,411

 

2,255,035

 

 

85,894

 

95,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

30 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Blue Chip Growth Trust Series I

 

 

Blue Chip Growth Trust Series II

 

 

Capital Appreciation Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

- $

59,503

$

- $

-

$

48,361

$

376,629

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(3,508,624)

 

(3,720,320)

 

 

(1,830,020)

 

(1,936,797)

 

 

(2,001,206)

 

(2,131,839)

Net investment income (loss)

 

(3,508,624)

 

(3,660,817)

 

 

(1,830,020)

 

(1,936,797)

 

 

(1,952,845)

 

(1,755,210)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

33,720,320

 

33,723,155

 

 

16,710,750

 

16,433,673

 

 

89,472,263

 

24,661,514

Net realized gain (loss)

 

17,397,864

 

19,230,998

 

 

843,595

 

4,459,504

 

 

(7,691,640)

 

6,731,333

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,118,184

 

52,954,153

 

 

17,554,345

 

20,893,177

 

 

81,780,623

 

31,392,847

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

10,177,381

 

(45,938,877)

 

 

12,068,338

 

(17,960,982)

 

 

(43,594,326)

 

(31,282,606)

Net increase (decrease) in net assets from operations

 

57,786,941

 

3,354,459

 

 

27,792,663

 

995,398

 

 

36,233,452

 

(1,644,969)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

407,148

 

346,958

 

 

238,998

 

455,790

 

 

108,209

 

197,432

Transfers between sub-accounts and the

 

(6,147,149)

 

(5,145,305)

 

 

(6,854,071)

 

5,270,850

 

 

(3,752,199)

 

(983,760)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(26,531,256)

 

(25,312,057)

 

 

(11,490,552)

 

(14,129,863)

 

 

(12,310,985)

 

(15,088,029)

Annual contract fee

 

(353,435)

 

(370,713)

 

 

(351,075)

 

(359,830)

 

 

(246,417)

 

(261,444)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(32,624,692)

 

(30,481,117)

 

 

(18,456,700)

 

(8,763,053)

 

 

(16,201,392)

 

(16,135,801)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

25,162,249

 

(27,126,658)

 

 

9,335,963

 

(7,767,655)

 

 

20,032,060

 

(17,780,770)

Net assets at beginning of period

 

216,533,054

 

243,659,712

 

 

107,498,238

 

115,265,893

 

 

122,497,750

 

140,278,520

Net assets at end of period

$

241,695,303

$

216,533,054

$

116,834,201

$

107,498,238

$

142,529,810

$

122,497,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

3,989,809

 

4,509,791

 

 

2,880,174

 

3,103,134

 

 

5,276,879

 

5,905,808

Units issued

 

68,217

 

123,979

 

 

139,736

 

398,212

 

 

61,764

 

203,509

Units redeemed

 

(578,728)

 

(643,961)

 

 

(564,423)

 

(621,172)

 

 

(652,125)

 

(832,438)

Units, end of period

 

3,479,298

 

3,989,809

 

 

2,455,487

 

2,880,174

 

 

4,686,518

 

5,276,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

31 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Capital Appreciation Trust Series II

 

 

Capital Appreciation Value Trust Series II

 

 

Core Bond Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

4,069

$

26,159

$

3,076,312

$

5,046,881

$

1,484,498

$

1,611,556

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(857,992)

 

(964,841)

 

 

(3,551,987)

 

(3,703,878)

 

 

(926,810)

 

(1,016,885)

Net investment income (loss)

 

(853,923)

 

(938,682)

 

 

(475,675)

 

1,343,003

 

 

557,688

 

594,671

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

37,210,141

 

10,773,437

 

 

16,197,394

 

19,561,342

 

 

-

 

-

Net realized gain (loss)

 

(6,148,909)

 

1,323,837

 

 

2,052,992

 

1,161,668

 

 

(216,478)

 

(728,642)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31,061,232

 

12,097,274

 

 

18,250,386

 

20,723,010

 

 

(216,478)

 

(728,642)

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

(15,669,639)

 

(11,951,970)

 

 

34,280,699

 

(24,529,333)

 

 

3,743,557

 

(1,461,071)

Net increase (decrease) in net assets from operations

 

14,537,670

 

(793,378)

 

 

52,055,410

 

(2,463,320)

 

 

4,084,767

 

(1,595,042)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

148,132

 

188,477

 

 

237,785

 

353,360

 

 

156,795

 

58,483

Transfers between sub-accounts and the

 

(2,662,311)

 

1,008,554

 

 

(3,950,588)

 

(5,946,426)

 

 

726,937

 

(1,574,355)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(5,339,508)

 

(7,365,947)

 

 

(29,300,329)

 

(27,045,582)

 

 

(6,788,315)

 

(8,153,799)

Annual contract fee

 

(190,136)

 

(205,316)

 

 

(1,863,916)

 

(1,961,290)

 

 

(119,009)

 

(129,503)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,043,823)

 

(6,374,232)

 

 

(34,877,048)

 

(34,599,938)

 

 

(6,023,592)

 

(9,799,174)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

6,493,847

 

(7,167,610)

 

 

17,178,362

 

(37,063,258)

 

 

(1,938,825)

 

(11,394,216)

Net assets at beginning of period

 

50,795,140

 

57,962,750

 

 

243,307,205

 

280,370,463

 

 

63,639,187

 

75,033,403

Net assets at end of period

$

57,288,987

$

50,795,140

$

260,485,567

$

243,307,205

$

61,700,362

$

63,639,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,523,414

 

1,691,874

 

 

10,874,787

 

12,364,275

 

 

3,784,692

 

4,369,480

Units issued

 

52,697

 

207,780

 

 

188,816

 

119,101

 

 

231,090

 

141,037

Units redeemed

 

(261,081)

 

(376,240)

 

 

(1,564,375)

 

(1,608,589)

 

 

(573,632)

 

(725,825)

Units, end of period

 

1,315,030

 

1,523,414

 

 

9,499,228

 

10,874,787

 

 

3,442,150

 

3,784,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

32 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Core Bond Trust Series II

 

 

DWS Equity 500 Index

 

 

Emerging Markets Value Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

1,592,588

$

1,711,214

$

184,331

$

165,950

$

901,635

$

865,202

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,137,086)

 

(1,243,335)

 

 

(189,162)

 

(203,808)

 

 

(456,483)

 

(580,555)

Net investment income (loss)

 

455,502

 

467,879

 

 

(4,831)

 

(37,858)

 

 

445,152

 

284,647

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

569,806

 

1,108,207

 

 

-

 

-

Net realized gain (loss)

 

(212,925)

 

(967,084)

 

 

710,975

 

738,599

 

 

(735,322)

 

(164,022)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(212,925)

 

(967,084)

 

 

1,280,781

 

1,846,806

 

 

(735,322)

 

(164,022)

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

4,231,106

 

(1,601,694)

 

 

1,628,784

 

(2,520,155)

 

 

2,896,993

 

(6,065,973)

Net increase (decrease) in net assets from operations

 

4,473,683

 

(2,100,899)

 

 

2,904,734

 

(711,207)

 

 

2,606,823

 

(5,945,348)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

73,214

 

131,047

 

 

-

 

-

 

 

37,955

 

101,145

Transfers between sub-accounts and the

 

2,467,588

 

(4,032,829)

 

 

(495,487)

 

(413,318)

 

 

(111,142)

 

(1,263,301)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(7,427,932)

 

(9,598,927)

 

 

(888,598)

 

(1,017,764)

 

 

(2,688,201)

 

(4,137,247)

Annual contract fee

 

(197,703)

 

(210,323)

 

 

(50,650)

 

(54,157)

 

 

(123,981)

 

(149,646)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,084,833)

 

(13,711,032)

 

 

(1,434,735)

 

(1,485,239)

 

 

(2,885,369)

 

(5,449,049)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(611,150)

 

(15,811,931)

 

 

1,469,999

 

(2,196,446)

 

 

(278,546)

 

(11,394,397)

Net assets at beginning of period

 

72,131,804

 

87,943,735

 

 

10,682,338

 

12,878,784

 

 

30,943,680

 

42,338,077

Net assets at end of period

$

71,520,654

$

72,131,804

$

12,152,337

$

10,682,338

$

30,665,134

$

30,943,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

4,476,676

 

5,341,711

 

 

278,624

 

314,256

 

 

2,808,960

 

3,264,187

Units issued

 

552,147

 

160,650

 

 

1,292

 

1,445

 

 

249,459

 

286,073

Units redeemed

 

(852,432)

 

(1,025,685)

 

 

(32,733)

 

(37,077)

 

 

(506,893)

 

(741,300)

Units, end of period

 

4,176,391

 

4,476,676

 

 

247,183

 

278,624

 

 

2,551,526

 

2,808,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

33 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Emerging Markets Value Trust Series NAV

 

 

Equity Income Trust Series I

 

 

Equity Income Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

45,841

$

43,337

$

3,345,901

$

3,255,408

$

1,930,828

$

1,785,659

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(14,593)

 

(17,219)

 

 

(2,401,504)

 

(2,687,015)

 

 

(1,601,769)

 

(1,763,447)

Net investment income (loss)

 

31,248

 

26,118

 

 

944,397

 

568,393

 

 

329,059

 

22,212

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

14,205,980

 

21,880,986

 

 

8,965,857

 

13,425,290

Net realized gain (loss)

 

(19,591)

 

7,755

 

 

3,015,112

 

6,741,873

 

 

(2,628,317)

 

2,618,360

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,591)

 

7,755

 

 

17,221,092

 

28,622,859

 

 

6,337,540

 

16,043,650

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

124,257

 

(275,380)

 

 

17,593,470

 

(47,921,790)

 

 

15,514,745

 

(27,867,487)

Net increase (decrease) in net assets from operations

 

135,914

 

(241,507)

 

 

35,758,959

 

(18,730,538)

 

 

22,181,344

 

(11,801,625)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

-

 

-

 

 

162,155

 

206,858

 

 

198,839

 

298,188

Transfers between sub-accounts and the

 

42,407

 

55,514

 

 

7,693,432

 

(5,773,427)

 

 

9,598,720

 

(3,694,759)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(144,912)

 

(215,791)

 

 

(17,903,738)

 

(19,633,311)

 

 

(10,456,627)

 

(13,449,616)

Annual contract fee

 

(395)

 

(430)

 

 

(230,906)

 

(258,196)

 

 

(320,694)

 

(330,163)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(102,900)

 

(160,707)

 

 

(10,279,057)

 

(25,458,076)

 

 

(979,762)

 

(17,176,350)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

33,014

 

(402,214)

 

 

25,479,902

 

(44,188,614)

 

 

21,201,582

 

(28,977,975)

Net assets at beginning of period

 

1,452,358

 

1,854,572

 

 

152,265,048

 

196,453,662

 

 

94,017,127

 

122,995,102

Net assets at end of period

$

1,485,372

$

1,452,358

$

177,744,950

$

152,265,048

$

115,218,709

$

94,017,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

130,686

 

142,910

 

 

3,216,393

 

3,727,107

 

 

3,781,609

 

4,389,304

Units issued

 

5,327

 

6,064

 

 

301,233

 

45,291

 

 

481,639

 

115,821

Units redeemed

 

(14,258)

 

(18,288)

 

 

(465,278)

 

(556,005)

 

 

(536,896)

 

(723,516)

Units, end of period

 

121,755

 

130,686

 

 

3,052,348

 

3,216,393

 

 

3,726,352

 

3,781,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

34 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Financial Industries Trust Series I

 

 

Financial Industries Trust Series II

 

 

Fundamental All Cap Core Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

373,100

$

124,345

$

491,385

$

164,029

$

101,608

$

92,929

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(137,130)

 

(163,321)

 

 

(195,084)

 

(230,391)

 

 

(672,566)

 

(742,150)

Net investment income (loss)

 

235,970

 

(38,976)

 

 

296,301

 

(66,362)

 

 

(570,958)

 

(649,221)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

498,549

 

674,944

 

 

720,932

 

915,508

 

 

3,176,855

 

5,875,987

Net realized gain (loss)

 

117,263

 

548,624

 

 

172,286

 

558,176

 

 

3,539,791

 

3,357,259

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

615,812

 

1,223,568

 

 

893,218

 

1,473,684

 

 

6,716,646

 

9,233,246

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

1,482,963

 

(2,763,044)

 

 

2,008,049

 

(3,561,756)

 

 

5,992,654

 

(14,758,300)

Net increase (decrease) in net assets from operations

 

2,334,745

 

(1,578,452)

 

 

3,197,568

 

(2,154,434)

 

 

12,138,342

 

(6,174,275)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

8,713

 

8,059

 

 

43,286

 

30,986

 

 

35,188

 

72,464

Transfers between sub-accounts and the

 

(848,825)

 

(921,931)

 

 

(21,840)

 

(812,479)

 

 

(1,815,239)

 

(268,746)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(723,768)

 

(712,539)

 

 

(1,297,549)

 

(1,737,369)

 

 

(3,868,889)

 

(4,725,902)

Annual contract fee

 

(27,649)

 

(30,293)

 

 

(42,682)

 

(46,373)

 

 

(166,869)

 

(181,845)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,591,529)

 

(1,656,704)

 

 

(1,318,785)

 

(2,565,235)

 

 

(5,815,809)

 

(5,104,029)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

743,216

 

(3,235,156)

 

 

1,878,783

 

(4,719,669)

 

 

6,322,533

 

(11,278,304)

Net assets at beginning of period

 

8,458,284

 

11,693,440

 

 

11,386,695

 

16,106,364

 

 

37,081,054

 

48,359,358

Net assets at end of period

$

9,201,500

$

8,458,284

$

13,265,478

$

11,386,695

$

43,403,587

$

37,081,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

407,419

 

474,458

 

 

526,724

 

625,106

 

 

1,098,058

 

1,221,295

Units issued

 

25,202

 

41,652

 

 

51,514

 

53,501

 

 

85,406

 

69,318

Units redeemed

 

(90,836)

 

(108,691)

 

 

(104,847)

 

(151,883)

 

 

(220,936)

 

(192,555)

Units, end of period

 

341,785

 

407,419

 

 

473,391

 

526,724

 

 

962,528

 

1,098,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

35 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Fundamental Large Cap Value Trust Series I

 

Fundamental Large Cap Value Trust Series I

 

 

Global Allocation

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

2,077,276

$

2,171,428

$

1,311,194

$

1,389,364

$

2,816

$

1,982

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(2,660,347)

 

(2,985,295)

 

 

(2,221,187)

 

(2,533,995)

 

 

(3,518)

 

(3,522)

Net investment income (loss)

 

(583,071)

 

(813,867)

 

 

(909,993)

 

(1,144,631)

 

 

(702)

 

(1,540)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

2,922,995

 

-

 

 

2,222,165

 

-

 

 

8,331

 

9,269

Net realized gain (loss)

 

4,502,948

 

5,067,381

 

 

5,579,369

 

4,960,562

 

 

1,153

 

455

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,425,943

 

5,067,381

 

 

7,801,534

 

4,960,562

 

 

9,484

 

9,724

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

45,290,053

 

(40,776,930)

 

 

33,531,268

 

(32,906,560)

 

 

27,523

 

(30,246)

Net increase (decrease) in net assets from operations

 

52,132,925

 

(36,523,416)

 

 

40,422,809

 

(29,090,629)

 

 

36,305

 

(22,062)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

226,838

 

246,043

 

 

250,683

 

303,852

 

 

-

 

-

Transfers between sub-accounts and the

 

(4,440,512)

 

(3,591,346)

 

 

(10,797,836)

 

814,929

 

 

(5,906)

 

91

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(18,471,291)

 

(22,088,734)

 

 

(17,896,624)

 

(20,200,308)

 

 

(1,723)

 

(1,253)

Annual contract fee

 

(255,044)

 

(280,065)

 

 

(530,237)

 

(594,997)

 

 

(761)

 

(736)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,940,009)

 

(25,714,102)

 

 

(28,974,014)

 

(19,676,524)

 

 

(8,390)

 

(1,898)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

29,192,916

 

(62,237,518)

 

 

11,448,795

 

(48,767,153)

 

 

27,915

 

(23,960)

Net assets at beginning of period

 

161,567,047

 

223,804,565

 

 

129,991,269

 

178,758,422

 

 

226,710

 

250,670

Net assets at end of period

$

190,759,963

$

161,567,047

$

141,440,064

$

129,991,269

$

254,625

$

226,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

6,828,258

 

7,733,962

 

 

6,141,427

 

6,913,782

 

 

11,153

 

11,243

Units issued

 

52,331

 

102,855

 

 

100,527

 

396,715

 

 

84

 

55

Units redeemed

 

(855,258)

 

(1,008,559)

 

 

(1,247,949)

 

(1,169,070)

 

 

(470)

 

(145)

Units, end of period

 

6,025,331

 

6,828,258

 

 

4,994,005

 

6,141,427

 

 

10,767

 

11,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

36 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Global Bond Trust Series I

 

 

Global Bond Trust Series II

 

 

Global Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

1,461,372

$

697,347

$

3,471,207

$

1,700,423

$

2,028,457

$

1,963,853

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(338,548)

 

(386,937)

 

 

(861,400)

 

(1,010,537)

 

 

(1,184,304)

 

(1,412,030)

Net investment income (loss)

 

1,122,824

 

310,410

 

 

2,609,807

 

689,886

 

 

844,153

 

551,823

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

-

 

-

 

 

3,425,006

 

-

Net realized gain (loss)

 

(91,367)

 

(58,458)

 

 

(236,683)

 

(631,401)

 

 

3,259,144

 

4,327,952

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(91,367)

 

(58,458)

 

 

(236,683)

 

(631,401)

 

 

6,684,150

 

4,327,952

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

87,352

 

(1,135,089)

 

 

57,724

 

(2,316,949)

 

 

5,419,777

 

(21,967,408)

Net increase (decrease) in net assets from operations

 

1,118,809

 

(883,137)

 

 

2,430,848

 

(2,258,464)

 

 

12,948,080

 

(17,087,633)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

17,669

 

15,808

 

 

456,561

 

108,472

 

 

88,780

 

134,713

Transfers between sub-accounts and the

 

(131,635)

 

(416,725)

 

 

2,494,594

 

(4,081,827)

 

 

(244,737)

 

1,062,831

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(2,653,123)

 

(2,908,914)

 

 

(6,875,402)

 

(9,809,923)

 

 

(9,894,020)

 

(9,705,830)

Annual contract fee

 

(37,403)

 

(40,608)

 

 

(218,952)

 

(254,464)

 

 

(303,853)

 

(326,019)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,804,492)

 

(3,350,439)

 

 

(4,143,199)

 

(14,037,742)

 

 

(10,353,830)

 

(8,834,305)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(1,685,683)

 

(4,233,576)

 

 

(1,712,351)

 

(16,296,206)

 

 

2,594,250

 

(25,921,938)

Net assets at beginning of period

 

24,164,291

 

28,397,867

 

 

55,604,198

 

71,900,404

 

 

93,402,133

 

119,324,071

Net assets at end of period

$

22,478,608

$

24,164,291

$

53,891,847

$

55,604,198

$

95,996,383

$

93,402,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

811,355

 

917,345

 

 

2,952,426

 

3,739,056

 

 

3,921,397

 

4,161,094

Units issued

 

28,442

 

33,861

 

 

330,024

 

159,261

 

 

137,711

 

231,536

Units redeemed

 

(117,789)

 

(139,851)

 

 

(545,223)

 

(945,891)

 

 

(499,364)

 

(471,233)

Units, end of period

 

722,008

 

811,355

 

 

2,737,227

 

2,952,426

 

 

3,559,744

 

3,921,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

37 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Global Trust Series II

 

 

Health Sciences Trust Series I

 

 

Health Sciences Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

503,173

$

506,404

$

- $

-

$

- $

-

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(421,198)

 

(532,606)

 

 

(720,648)

 

(789,628)

 

 

(921,176)

 

(1,055,054)

Net investment income (loss)

 

81,975

 

(26,202)

 

 

(720,648)

 

(789,628)

 

 

(921,176)

 

(1,055,054)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

953,574

 

-

 

 

3,549,205

 

5,037,233

 

 

4,630,907

 

6,790,013

Net realized gain (loss)

 

33,550

 

1,116,899

 

 

(2,498,983)

 

(1,729,855)

 

 

(2,709,953)

 

(4,544,407)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

987,124

 

1,116,899

 

 

1,050,222

 

3,307,378

 

 

1,920,954

 

2,245,606

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

2,374,937

 

(6,229,830)

 

 

11,086,770

 

(2,700,749)

 

 

12,684,211

 

(1,715,149)

Net increase (decrease) in net assets from operations

 

3,444,036

 

(5,139,133)

 

 

11,416,344

 

(182,999)

 

 

13,683,989

 

(524,597)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

43,661

 

83,222

 

 

58,577

 

147,585

 

 

111,058

 

160,425

Transfers between sub-accounts and the

 

(1,022,764)

 

(2,105,893)

 

 

(2,269,090)

 

(324,896)

 

 

(2,663,442)

 

(438,638)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(2,747,905)

 

(4,030,585)

 

 

(4,453,967)

 

(4,937,993)

 

 

(6,391,828)

 

(6,400,594)

Annual contract fee

 

(102,298)

 

(129,103)

 

 

(120,628)

 

(127,030)

 

 

(196,981)

 

(220,570)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,829,306)

 

(6,182,359)

 

 

(6,785,108)

 

(5,242,334)

 

 

(9,141,193)

 

(6,899,377)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(385,270)

 

(11,321,492)

 

 

4,631,236

 

(5,425,333)

 

 

4,542,796

 

(7,423,974)

Net assets at beginning of period

 

26,537,525

 

37,859,017

 

 

45,999,453

 

51,424,786

 

 

56,169,215

 

63,593,189

Net assets at end of period

$

26,152,255

$

26,537,525

$

50,630,689

$

45,999,453

$

60,712,011

$

56,169,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,391,375

 

1,658,271

 

 

670,096

 

743,747

 

 

849,302

 

964,531

Units issued

 

93,720

 

73,646

 

 

33,744

 

48,785

 

 

34,345

 

112,032

Units redeemed

 

(283,238)

 

(340,542)

 

 

(121,309)

 

(122,436)

 

 

(154,474)

 

(227,261)

Units, end of period

 

1,201,857

 

1,391,375

 

 

582,531

 

670,096

 

 

729,173

 

849,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

38 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

High Yield Trust Series I

 

 

High Yield Trust Series II

 

 

International Equity Index Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

2,869,556

$

3,435,790

$

2,357,490

$

2,804,166

$

369,711

$

327,457

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(648,494)

 

(710,852)

 

 

(726,530)

 

(797,367)

 

 

(200,184)

 

(212,419)

Net investment income (loss)

 

2,221,062

 

2,724,938

 

 

1,630,960

 

2,006,799

 

 

169,527

 

115,038

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

-

 

-

 

 

-

 

4,869

Net realized gain (loss)

 

(649,799)

 

(1,415,471)

 

 

(755,927)

 

(1,816,313)

 

 

308,662

 

357,894

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(649,799)

 

(1,415,471)

 

 

(755,927)

 

(1,816,313)

 

 

308,662

 

362,763

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

5,637,813

 

(3,620,440)

 

 

5,146,550

 

(2,444,718)

 

 

1,995,983

 

(2,727,999)

Net increase (decrease) in net assets from operations

 

7,209,076

 

(2,310,973)

 

 

6,021,583

 

(2,254,232)

 

 

2,474,172

 

(2,250,198)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

20,230

 

12,257

 

 

46,819

 

29,241

 

 

40,925

 

17,723

Transfers between sub-accounts and the

 

1,841,302

 

(1,238,844)

 

 

430,069

 

(1,864,531)

 

 

4,796,061

 

(85,988)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(5,618,260)

 

(6,998,844)

 

 

(4,149,208)

 

(6,170,508)

 

 

(1,137,792)

 

(939,458)

Annual contract fee

 

(290,452)

 

(308,261)

 

 

(197,954)

 

(211,925)

 

 

(38,741)

 

(35,881)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,047,180)

 

(8,533,692)

 

 

(3,870,274)

 

(8,217,723)

 

 

3,660,453

 

(1,043,604)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

3,161,896

 

(10,844,665)

 

 

2,151,309

 

(10,471,955)

 

 

6,134,625

 

(3,293,802)

Net assets at beginning of period

 

51,588,416

 

62,433,081

 

 

45,026,742

 

55,498,697

 

 

12,215,423

 

15,509,225

Net assets at end of period

$

54,750,312

$

51,588,416

$

47,178,051

$

45,026,742

$

18,350,048

$

12,215,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

2,981,649

 

3,438,490

 

 

2,088,366

 

2,456,073

 

 

856,547

 

920,999

Units issued

 

281,074

 

230,428

 

 

290,303

 

131,310

 

 

369,042

 

63,038

Units redeemed

 

(502,690)

 

(687,269)

 

 

(439,141)

 

(499,017)

 

 

(152,792)

 

(127,490)

Units, end of period

 

2,760,033

 

2,981,649

 

 

1,939,528

 

2,088,366

 

 

1,072,797

 

856,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

39 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

International Equity Index Series II

 

 

International Equity Index Series NAV

 

International Small Company Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

328,258

$

293,626

$

233,663

$

250,579

$

386,667

$

277,579

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(192,814)

 

(232,500)

 

 

(153,428)

 

(176,431)

 

 

(262,469)

 

(329,907)

Net investment income (loss)

 

135,444

 

61,126

 

 

80,235

 

74,148

 

 

124,198

 

(52,328)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

4,870

 

 

-

 

3,655

 

 

731,319

 

-

Net realized gain (loss)

 

264,337

 

638,081

 

 

134,301

 

184,642

 

 

865,980

 

1,578,688

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

264,337

 

642,951

 

 

134,301

 

188,297

 

 

1,597,299

 

1,578,688

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

1,875,430

 

(3,059,863)

 

 

1,487,649

 

(1,974,369)

 

 

1,684,677

 

(6,344,140)

Net increase (decrease) in net assets from operations

 

2,275,211

 

(2,355,786)

 

 

1,702,185

 

(1,711,924)

 

 

3,406,174

 

(4,817,780)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

26,821

 

51,150

 

 

8,375

 

22,242

 

 

16,634

 

28,415

Transfers between sub-accounts and the

 

5,953,059

 

41,355

 

 

672,727

 

40,772

 

 

(275,477)

 

(1,257,573)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(1,234,620)

 

(1,495,338)

 

 

(800,590)

 

(1,298,072)

 

 

(1,878,161)

 

(1,686,534)

Annual contract fee

 

(45,798)

 

(53,442)

 

 

(46,062)

 

(52,799)

 

 

(44,426)

 

(42,664)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,699,462

 

(1,456,275)

 

 

(165,550)

 

(1,287,857)

 

 

(2,181,430)

 

(2,958,356)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

6,974,673

 

(3,812,061)

 

 

1,536,635

 

(2,999,781)

 

 

1,224,744

 

(7,776,136)

Net assets at beginning of period

 

11,356,073

 

15,168,134

 

 

9,079,888

 

12,079,669

 

 

17,468,933

 

25,245,069

Net assets at end of period

$

18,330,746

$

11,356,073

$

10,616,523

$

9,079,888

$

18,693,677

$

17,468,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

814,211

 

918,163

 

 

802,770

 

902,476

 

 

972,342

 

1,106,783

Units issued

 

501,701

 

204,019

 

 

80,899

 

24,044

 

 

23,995

 

38,303

Units redeemed

 

(215,439)

 

(307,971)

 

 

(98,208)

 

(123,750)

 

 

(134,834)

 

(172,744)

Units, end of period

 

1,100,473

 

814,211

 

 

785,461

 

802,770

 

 

861,503

 

972,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

40 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

International Small Company Trust Series II

 

 

International Value Trust Series I

 

 

International Value Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

207,215

$

183,380

$

1,455,771

$

1,576,412

$

1,119,265

$

1,182,437

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(180,189)

 

(231,834)

 

 

(786,320)

 

(974,187)

 

 

(691,304)

 

(863,658)

Net investment income (loss)

 

27,026

 

(48,454)

 

 

669,451

 

602,225

 

 

427,961

 

318,779

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

474,658

 

-

 

 

-

 

-

 

 

-

 

-

Net realized gain (loss)

 

325,003

 

923,413

 

 

928,899

 

2,615,844

 

 

22,064

 

1,890,220

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

799,661

 

923,413

 

 

928,899

 

2,615,844

 

 

22,064

 

1,890,220

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

1,375,173

 

(4,113,641)

 

 

3,850,553

 

(14,138,796)

 

 

3,909,472

 

(11,301,294)

Net increase (decrease) in net assets from operations

 

2,201,860

 

(3,238,682)

 

 

5,448,903

 

(10,920,727)

 

 

4,359,497

 

(9,092,295)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

83,273

 

66,284

 

 

66,635

 

106,948

 

 

286,666

 

208,762

Transfers between sub-accounts and the

 

(653,180)

 

(283,153)

 

 

(1,331,948)

 

(1,037,493)

 

 

(389,754)

 

(927,924)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(1,075,376)

 

(1,732,351)

 

 

(5,187,431)

 

(6,216,159)

 

 

(4,358,681)

 

(6,921,536)

Annual contract fee

 

(48,482)

 

(52,711)

 

 

(117,920)

 

(136,832)

 

 

(142,820)

 

(175,057)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,693,765)

 

(2,001,931)

 

 

(6,570,664)

 

(7,283,536)

 

 

(4,604,589)

 

(7,815,755)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

508,095

 

(5,240,613)

 

 

(1,121,761)

 

(18,204,263)

 

 

(245,092)

 

(16,908,050)

Net assets at beginning of period

 

11,575,848

 

16,816,461

 

 

54,546,359

 

72,750,622

 

 

44,426,966

 

61,335,016

Net assets at end of period

$

12,083,943

$

11,575,848

$

53,424,598

$

54,546,359

$

44,181,874

$

44,426,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

668,861

 

763,609

 

 

2,949,301

 

3,294,988

 

 

2,250,880

 

2,586,872

Units issued

 

23,203

 

69,536

 

 

69,709

 

65,394

 

 

100,494

 

69,025

Units redeemed

 

(112,602)

 

(164,284)

 

 

(408,509)

 

(411,081)

 

 

(321,025)

 

(405,017)

Units, end of period

 

579,462

 

668,861

 

 

2,610,501

 

2,949,301

 

 

2,030,349

 

2,250,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

41 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Investment Quality Bond Trust Series I

 

 

Investment Quality Bond Trust Series II

 

 

Lifestyle Aggressive Portfolio Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

2,996,138

$

3,427,726

$

1,430,663

$

1,586,601

$

40,120

$

40,446

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,280,241)

 

(1,370,946)

 

 

(946,553)

 

(993,873)

 

 

(37,233)

 

(35,912)

Net investment income (loss)

 

1,715,897

 

2,056,780

 

 

484,110

 

592,728

 

 

2,887

 

4,534

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

882,050

 

 

-

 

440,572

 

 

145,539

 

56,556

Net realized gain (loss)

 

(928,071)

 

(1,986,577)

 

 

(474,445)

 

(1,386,654)

 

 

20,764

 

47,884

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(928,071)

 

(1,104,527)

 

 

(474,445)

 

(946,082)

 

 

166,303

 

104,440

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

8,606,760

 

(3,528,968)

 

 

4,326,220

 

(1,321,292)

 

 

376,740

 

(339,381)

Net increase (decrease) in net assets from operations

 

9,394,586

 

(2,576,715)

 

 

4,335,885

 

(1,674,646)

 

 

545,930

 

(230,407)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

107,704

 

59,757

 

 

135,857

 

82,893

 

 

5,500

 

-

Transfers between sub-accounts and the

 

7,859,323

 

(2,542,534)

 

 

6,839,516

 

(650,097)

 

 

161,148

 

267,849

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(12,691,141)

 

(13,423,601)

 

 

(7,163,684)

 

(7,286,807)

 

 

(41,965)

 

(170,224)

Annual contract fee

 

(643,352)

 

(673,578)

 

 

(214,415)

 

(228,396)

 

 

(10,739)

 

(10,081)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,367,466)

 

(16,579,956)

 

 

(402,726)

 

(8,082,407)

 

 

113,944

 

87,544

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

4,027,120

 

(19,156,671)

 

 

3,933,159

 

(9,757,053)

 

 

659,874

 

(142,863)

Net assets at beginning of period

 

116,516,628

 

135,673,299

 

 

58,446,535

 

68,203,588

 

 

2,126,950

 

2,269,813

Net assets at end of period

$

120,543,748

$

116,516,628

$

62,379,694

$

58,446,535

$

2,786,824

$

2,126,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

6,011,005

 

6,868,000

 

 

3,237,257

 

3,684,653

 

 

142,085

 

136,196

Units issued

 

514,920

 

328,515

 

 

586,851

 

374,497

 

 

13,928

 

17,763

Units redeemed

 

(790,168)

 

(1,185,510)

 

 

(599,245)

 

(821,893)

 

 

(7,231)

 

(11,874)

Units, end of period

 

5,735,757

 

6,011,005

 

 

3,224,863

 

3,237,257

 

 

148,782

 

142,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

42 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Lifestyle Aggressive Portfolio Series II

 

 

Lifestyle Balanced Portfolio Series I

 

 

Lifestyle Balanced Portfolio Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

81,380

$

84,761

$

516,057

$

537,495

$

9,405,491

$

10,793,457

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(93,708)

 

(90,712)

 

 

(294,645)

 

(270,820)

 

 

(7,080,721)

 

(7,369,100)

Net investment income (loss)

 

(12,328)

 

(5,951)

 

 

221,412

 

266,675

 

 

2,324,770

 

3,424,357

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

355,911

 

128,647

 

 

748,281

 

364,513

 

 

15,743,603

 

8,288,547

Net realized gain (loss)

 

65,106

 

187,020

 

 

112,363

 

158,987

 

 

6,330,574

 

7,075,326

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

421,017

 

315,667

 

 

860,644

 

523,500

 

 

22,074,177

 

15,363,873

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

849,955

 

(887,278)

 

 

2,616,121

 

(2,067,831)

 

 

53,621,701

 

(50,677,836)

Net increase (decrease) in net assets from operations

 

1,258,644

 

(577,562)

 

 

3,698,177

 

(1,277,656)

 

 

78,020,648

 

(31,889,606)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

-

 

4,232

 

 

36,904

 

72,004

 

 

5,717,300

 

15,462,292

Transfers between sub-accounts and the

 

399,216

 

488,033

 

 

3,434,625

 

3,169,070

 

 

57,692,338

 

(20,311,801)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(201,999)

 

(296,212)

 

 

(1,371,645)

 

(2,592,413)

 

 

(61,799,419)

 

(56,620,911)

Annual contract fee

 

(28,174)

 

(26,350)

 

 

(134,919)

 

(136,485)

 

 

(4,177,239)

 

(4,333,745)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

169,043

 

169,703

 

 

1,964,965

 

512,176

 

 

(2,567,020)

 

(65,804,165)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

1,427,687

 

(407,859)

 

 

5,663,142

 

(765,480)

 

 

75,453,628

 

(97,693,771)

Net assets at beginning of period

 

5,047,557

 

5,455,416

 

 

21,831,077

 

22,596,557

 

 

477,791,722

 

575,485,493

Net assets at end of period

$

6,475,244

$

5,047,557

$

27,494,219

$

21,831,077

$

553,245,350

$

477,791,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

342,608

 

331,950

 

 

1,517,651

 

1,482,255

 

 

31,342,811

 

35,280,396

Units issued

 

40,465

 

76,948

 

 

255,474

 

290,714

 

 

5,216,505

 

4,523,063

Units redeemed

 

(30,641)

 

(66,290)

 

 

(132,850)

 

(255,318)

 

 

(5,277,426)

 

(8,460,648)

Units, end of period

 

352,432

 

342,608

 

 

1,640,275

 

1,517,651

 

 

31,281,890

 

31,342,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

43 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Lifestyle Conservative Portfolio Series I

 

 

Lifestyle Conservative Portfolio Series II

 

 

Lifestyle Growth Portfolio Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

202,759

$

219,662

$

2,154,080

$

2,472,179

$

3,642,994

$

4,495,045

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(122,387)

 

(115,525)

 

 

(1,424,068)

 

(1,362,139)

 

 

(2,009,274)

 

(2,144,763)

Net investment income (loss)

 

80,372

 

104,137

 

 

730,012

 

1,110,040

 

 

1,633,720

 

2,350,282

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

186,303

 

85,720

 

 

2,038,128

 

926,699

 

 

9,211,642

 

2,653,349

Net realized gain (loss)

 

79,783

 

(75,609)

 

 

757,570

 

230,468

 

 

3,351,329

 

2,898,618

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

266,086

 

10,111

 

 

2,795,698

 

1,157,167

 

 

12,562,971

 

5,551,967

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

664,944

 

(395,512)

 

 

7,354,524

 

(5,688,436)

 

 

23,255,819

 

(22,532,658)

Net increase (decrease) in net assets from operations

 

1,011,402

 

(281,264)

 

 

10,880,234

 

(3,421,229)

 

 

37,452,510

 

(14,630,409)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

20,550

 

350

 

 

3,582,660

 

2,041,931

 

 

87,784

 

126,739

Transfers between sub-accounts and the

 

923,754

 

2,214,631

 

 

14,364,886

 

27,150,243

 

 

(2,506,208)

 

1,232,275

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(1,018,798)

 

(1,358,480)

 

 

(22,510,533)

 

(15,726,402)

 

 

(18,890,442)

 

(18,358,425)

Annual contract fee

 

(44,011)

 

(36,388)

 

 

(909,285)

 

(873,114)

 

 

(1,365,373)

 

(1,402,303)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(118,505)

 

820,113

 

 

(5,472,272)

 

12,592,658

 

 

(22,674,239)

 

(18,401,714)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

892,897

 

538,849

 

 

5,407,962

 

9,171,429

 

 

14,778,271

 

(33,032,123)

Net assets at beginning of period

 

8,597,883

 

8,059,034

 

 

105,253,385

 

96,081,956

 

 

192,754,184

 

225,786,307

Net assets at end of period

$

9,490,780

$

8,597,883

$

110,661,347

$

105,253,385

$

207,532,455

$

192,754,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

632,431

 

574,117

 

 

7,531,874

 

6,605,886

 

 

12,842,491

 

13,985,436

Units issued

 

264,727

 

260,556

 

 

3,035,255

 

3,654,246

 

 

319,445

 

439,544

Units redeemed

 

(270,698)

 

(202,242)

 

 

(3,402,048)

 

(2,728,258)

 

 

(1,686,429)

 

(1,582,489)

Units, end of period

 

626,460

 

632,431

 

 

7,165,081

 

7,531,874

 

 

11,475,507

 

12,842,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

44 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Lifestyle Growth Portfolio Series II

 

 

Lifestyle Growth Portfolio Series NAV

 

 

Lifestyle Moderate Portfolio Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

76,892,658

$

98,028,411

$

110,286

$

142,813

$

179,520

$

196,203

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(68,471,327)

 

(75,342,116)

 

 

(80,282)

 

(86,986)

 

 

(100,436)

 

(89,421)

Net investment income (loss)

 

8,421,331

 

22,686,295

 

 

30,004

 

55,827

 

 

79,084

 

106,782

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

221,461,993

 

65,600,412

 

 

277,795

 

81,243

 

 

199,252

 

103,487

Net realized gain (loss)

 

79,101,936

 

83,602,063

 

 

2,633

 

6,399

 

 

40,981

 

11,584

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300,563,929

 

149,202,475

 

 

280,428

 

87,642

 

 

240,233

 

115,071

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

556,917,670

 

(558,470,310)

 

 

805,833

 

(611,902)

 

 

793,704

 

(587,542)

Net increase (decrease) in net assets from operations

 

865,902,930

 

(386,581,540)

 

 

1,116,265

 

(468,433)

 

 

1,113,021

 

(365,689)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

18,451,306

 

28,793,737

 

 

-

 

-

 

 

11,899

 

8,498

Transfers between sub-accounts and the

 

(6,642,211)

 

(85,600,466)

 

 

-

 

-

 

 

1,416,304

 

1,256,305

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(524,004,510)

 

(602,413,509)

 

 

(939,960)

 

(472,702)

 

 

(1,033,719)

 

(823,354)

Annual contract fee

 

(37,596,629)

 

(39,821,554)

 

 

-

 

-

 

 

(35,359)

 

(36,534)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(549,792,044)

 

(699,041,792)

 

 

(939,960)

 

(472,702)

 

 

359,125

 

404,915

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

316,110,886

 

(1,085,623,332)

 

 

176,305

 

(941,135)

 

 

1,472,146

 

39,226

Net assets at beginning of period

 

4,608,995,228

 

5,694,618,560

 

 

5,968,220

 

6,909,355

 

 

7,725,494

 

7,686,268

Net assets at end of period

$

4,925,106,114

$

4,608,995,228

$

6,144,525

$

5,968,220

$

9,197,640

$

7,725,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

299,274,342

 

340,523,803

 

 

474,393

 

509,119

 

 

547,708

 

518,269

Units issued

 

6,941,849

 

6,651,000

 

 

-

 

-

 

 

111,268

 

132,014

Units redeemed

 

(39,260,765)

 

(47,900,461)

 

 

(69,697)

 

(34,726)

 

 

(90,453)

 

(102,575)

Units, end of period

 

266,955,426

 

299,274,342

 

 

404,696

 

474,393

 

 

568,523

 

547,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

45 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

 

 

 

 

Managed Volatility Aggressive Portfolio

 

 

Managed Volatility Aggressive Portfolio

 

 

Lifestyle Moderate Portfolio Series II

 

 

Series I

 

 

 

Series II

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

3,013,232

$

3,433,686

$

531,374

$

921,181

$

721,581

$

1,298,548

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(2,204,772)

 

(2,228,010)

 

 

(612,959)

 

(724,631)

 

 

(1,019,628)

 

(1,183,505)

Net investment income (loss)

 

808,460

 

1,205,676

 

 

(81,585)

 

196,550

 

 

(298,047)

 

115,043

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

4,008,704

 

2,396,615

 

 

4,067,688

 

2,998,996

 

 

6,459,918

 

4,829,788

Net realized gain (loss)

 

2,054,035

 

1,372,441

 

 

1,409,762

 

3,506,649

 

 

2,598,968

 

4,742,998

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,062,739

 

3,769,056

 

 

5,477,450

 

6,505,645

 

 

9,058,886

 

9,572,786

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

14,980,914

 

(13,312,517)

 

 

1,811,360

 

(10,928,571)

 

 

2,484,857

 

(16,635,400)

Net increase (decrease) in net assets from operations

 

21,852,113

 

(8,337,785)

 

 

7,207,225

 

(4,226,376)

 

 

11,245,696

 

(6,947,571)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

770,263

 

4,829,406

 

 

67,337

 

106,693

 

 

261,076

 

252,248

Transfers between sub-accounts and the

 

20,303,648

 

(434,231)

 

 

(2,507,352)

 

(6,614,549)

 

 

(1,783,838)

 

(2,262,846)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(19,788,413)

 

(18,787,892)

 

 

(3,599,752)

 

(3,129,606)

 

 

(6,242,222)

 

(9,643,441)

Annual contract fee

 

(1,450,998)

 

(1,469,535)

 

 

(163,432)

 

(195,798)

 

 

(267,690)

 

(290,773)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(165,500)

 

(15,862,252)

 

 

(6,203,199)

 

(9,833,260)

 

 

(8,032,674)

 

(11,944,812)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

21,686,613

 

(24,200,037)

 

 

1,004,026

 

(14,059,636)

 

 

3,213,022

 

(18,892,383)

Net assets at beginning of period

 

148,769,774

 

172,969,811

 

 

40,513,190

 

54,572,826

 

 

63,255,102

 

82,147,485

Net assets at end of period

$

170,456,387

$

148,769,774

$

41,517,216

$

40,513,190

$

66,468,124

$

63,255,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

9,928,150

 

10,893,620

 

 

1,783,705

 

2,163,240

 

 

2,910,117

 

3,402,922

Units issued

 

2,469,897

 

1,698,971

 

 

12,337

 

11,013

 

 

14,823

 

58,394

Units redeemed

 

(2,419,094)

 

(2,664,441)

 

 

(267,109)

 

(390,548)

 

 

(360,573)

 

(551,199)

Units, end of period

 

9,978,953

 

9,928,150

 

 

1,528,933

 

1,783,705

 

 

2,564,367

 

2,910,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

46 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Managed Volatility Balanced Portfolio

 

 

Managed Volatility Balanced Portfolio

 

 

Managed Volatility Conservative Portfolio

 

 

Series I

 

 

 

Series II

 

 

 

Series I

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

7,294,097

$

9,196,193

$

82,882,535

$

107,466,477

$

2,193,566

$

2,559,648

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(4,583,336)

 

(5,121,416)

 

 

(69,974,700)

 

(78,315,410)

 

 

(1,180,244)

 

(1,293,990)

Net investment income (loss)

 

2,710,761

 

4,074,777

 

 

12,907,835

 

29,151,067

 

 

1,013,322

 

1,265,658

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

16,725,060

 

27,484,324

 

 

214,223,687

 

353,015,220

 

 

-

 

2,932,781

Net realized gain (loss)

 

1,821,842

 

6,542,176

 

 

153,835,568

 

152,626,273

 

 

(2,338,916)

 

(2,813,007)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,546,902

 

34,026,500

 

 

368,059,255

 

505,641,493

 

 

(2,338,916)

 

119,774

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

36,668,260

 

(62,126,722)

 

 

331,765,674

 

(860,885,595)

 

 

12,150,373

 

(4,902,350)

Net increase (decrease) in net assets from operations

 

57,925,923

 

(24,025,445)

 

 

712,732,764

 

(326,093,035)

 

 

10,824,779

 

(3,516,918)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

242,750

 

355,143

 

 

4,553,955

 

5,978,644

 

 

74,390

 

105,804

Transfers between sub-accounts and the

 

(9,165,700)

 

(8,947,141)

 

 

(54,863,061)

 

(51,180,647)

 

 

160,420

 

(2,900,330)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(36,435,983)

 

(41,980,991)

 

 

(576,169,031)

 

(630,778,818)

 

 

(11,300,150)

 

(12,290,375)

Annual contract fee

 

(2,000,545)

 

(2,125,974)

 

 

(31,954,827)

 

(34,489,579)

 

 

(447,365)

 

(477,576)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(47,359,478)

 

(52,698,963)

 

 

(658,432,964)

 

(710,470,400)

 

 

(11,512,705)

 

(15,562,477)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

10,566,445

 

(76,724,408)

 

 

54,299,800

 

(1,036,563,435)

 

 

(687,926)

 

(19,079,395)

Net assets at beginning of period

 

370,157,399

 

446,881,807

 

 

4,704,815,307

 

5,741,378,742

 

 

94,415,080

 

113,494,475

Net assets at end of period

$

380,723,844

$

370,157,399

$

4,759,115,107

$

4,704,815,307

$

93,727,154

$

94,415,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

17,256,894

 

19,484,951

 

 

239,171,453

 

272,743,013

 

 

4,417,350

 

5,110,489

Units issued

 

160,005

 

147,304

 

 

1,488,323

 

2,572,718

 

 

198,983

 

70,070

Units redeemed

 

(2,154,819)

 

(2,375,361)

 

 

(32,139,688)

 

(36,144,278)

 

 

(701,546)

 

(763,209)

Units, end of period

 

15,262,080

 

17,256,894

 

 

208,520,088

 

239,171,453

 

 

3,914,787

 

4,417,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

47 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Managed Volatility Conservative Portfolio

 

 

 

 

 

 

Managed Volatility Growth Portfolio Series

 

 

Series II

 

 

Managed Volatility Growth Portfolio Series I

 

 

II

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

18,338,516

$

21,891,475

$

6,654,899

$

8,943,961

$

102,377,606

$

143,454,446

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(12,784,255)

 

(14,170,541)

 

 

(4,548,856)

 

(5,117,399)

 

 

(100,459,857)

 

(113,775,111)

Net investment income (loss)

 

5,554,261

 

7,720,934

 

 

2,106,043

 

3,826,562

 

 

1,917,749

 

29,679,335

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

27,420,720

 

 

28,420,781

 

35,560,132

 

 

503,285,298

 

634,861,052

Net realized gain (loss)

 

(21,447,967)

 

(27,499,028)

 

 

9,916,117

 

11,260,160

 

 

216,197,873

 

288,986,562

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,447,967)

 

(78,308)

 

 

38,336,898

 

46,820,292

 

 

719,483,171

 

923,847,614

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

110,906,912

 

(44,242,296)

 

 

25,022,541

 

(81,774,205)

 

 

394,212,247

 

(1,541,869,011)

Net increase (decrease) in net assets from operations

 

95,013,206

 

(36,599,670)

 

 

65,465,482

 

(31,127,351)

 

 

1,115,613,167

 

(588,342,062)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

1,366,866

 

1,954,855

 

 

1,293,917

 

532,278

 

 

7,602,717

 

11,239,308

Transfers between sub-accounts and the

 

9,751,917

 

(18,463,731)

 

 

(9,304,330)

 

(8,207,258)

 

 

(128,360,214)

 

(57,434,341)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(119,826,318)

 

(132,184,862)

 

 

(36,484,776)

 

(39,581,773)

 

 

(764,565,628)

 

(855,551,802)

Annual contract fee

 

(6,349,902)

 

(6,938,294)

 

 

(2,491,082)

 

(2,652,590)

 

 

(49,328,154)

 

(53,113,252)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(115,057,437)

 

(155,632,032)

 

 

(46,986,271)

 

(49,909,343)

 

 

(934,651,279)

 

(954,860,087)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(20,044,231)

 

(192,231,702)

 

 

18,479,211

 

(81,036,694)

 

 

180,961,888

 

(1,543,202,149)

Net assets at beginning of period

 

865,542,439

 

1,057,774,141

 

 

380,438,394

 

461,475,088

 

 

6,715,508,818

 

8,258,710,967

Net assets at end of period

$

845,498,208

$

865,542,439

$

398,917,605

$

380,438,394

$

6,896,470,706

$

6,715,508,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

48,163,939

 

56,528,717

 

 

18,851,163

 

21,052,474

 

 

339,906,281

 

384,256,728

Units issued

 

1,673,045

 

1,893,535

 

 

145,917

 

84,753

 

 

1,713,561

 

4,491,271

Units redeemed

 

(7,702,302)

 

(10,258,313)

 

 

(2,253,439)

 

(2,286,064)

 

 

(44,739,155)

 

(48,841,718)

Units, end of period

 

42,134,682

 

48,163,939

 

 

16,743,641

 

18,851,163

 

 

296,880,687

 

339,906,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

48 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

Managed Volatility Growth Portfolio Series

 

 

Managed Volatility Moderate Portfolio

 

 

Managed Volatility Moderate Portfolio

 

 

NAV

 

 

 

Series I

 

 

 

Series II

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

7,829

$

9,812

$

2,904,103

$

3,644,279

$

27,740,253

$

35,656,051

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(5,153)

 

(5,376)

 

 

(1,742,608)

 

(1,962,703)

 

 

(21,597,429)

 

(24,200,760)

Net investment income (loss)

 

2,676

 

4,436

 

 

1,161,495

 

1,681,576

 

 

6,142,824

 

11,455,291

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

31,488

 

36,662

 

 

5,193,328

 

9,450,062

 

 

54,922,435

 

100,536,139

Net realized gain (loss)

 

1,774

 

4,346

 

 

(1,643,390)

 

(743,716)

 

 

(7,037,781)

 

7,106,477

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,262

 

41,008

 

 

3,549,938

 

8,706,346

 

 

47,884,654

 

107,642,616

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

35,777

 

(79,621)

 

 

15,563,806

 

(18,133,917)

 

 

152,559,297

 

(207,217,143)

Net increase (decrease) in net assets from operations

 

71,715

 

(34,177)

 

 

20,275,239

 

(7,745,995)

 

 

206,586,775

 

(88,119,236)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

-

 

-

 

 

71,708

 

175,404

 

 

4,628,945

 

3,975,441

Transfers between sub-accounts and the

 

-

 

-

 

 

(3,957,776)

 

(2,491,878)

 

 

(6,969,944)

 

(12,664,151)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(21,357)

 

(20,600)

 

 

(13,991,527)

 

(19,759,359)

 

 

(198,892,878)

 

(208,778,254)

Annual contract fee

 

-

 

-

 

 

(719,785)

 

(765,382)

 

 

(10,441,026)

 

(11,244,993)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,357)

 

(20,600)

 

 

(18,597,380)

 

(22,841,215)

 

 

(211,674,903)

 

(228,711,957)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

50,358

 

(54,777)

 

 

1,677,859

 

(30,587,210)

 

 

(5,088,128)

 

(316,831,193)

Net assets at beginning of period

 

408,293

 

463,070

 

 

140,001,920

 

170,589,130

 

 

1,481,941,198

 

1,798,772,391

Net assets at end of period

$

458,651

$

408,293

$

141,679,779

$

140,001,920

$

1,476,853,070

$

1,481,941,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

20,790

 

21,769

 

 

6,226,658

 

7,152,400

 

 

77,231,623

 

88,426,556

Units issued

 

-

 

-

 

 

121,461

 

101,669

 

 

875,748

 

2,117,110

Units redeemed

 

(1,041)

 

(979)

 

 

(876,513)

 

(1,027,411)

 

 

(11,106,296)

 

(13,312,043)

Units, end of period

 

19,749

 

20,790

 

 

5,471,606

 

6,226,658

 

 

67,001,075

 

77,231,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

49 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Mid Cap Index Trust Series I

 

 

Mid Cap Index Trust Series II

 

 

Mid Cap Stock Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

918,404

$

1,001,065

$

550,673

$

623,663

$

- $

-

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,097,048)

 

(1,254,222)

 

 

(960,626)

 

(1,144,216)

 

 

(1,795,167)

 

(1,848,075)

Net investment income (loss)

 

(178,644)

 

(253,157)

 

 

(409,953)

 

(520,553)

 

 

(1,795,167)

 

(1,848,075)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

6,717,704

 

6,192,235

 

 

4,889,787

 

4,713,404

 

 

19,662,641

 

14,042,255

Net realized gain (loss)

 

(163,892)

 

1,251,156

 

 

399,233

 

2,760,362

 

 

2,333,527

 

8,547,197

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,553,812

 

7,443,391

 

 

5,289,020

 

7,473,766

 

 

21,996,168

 

22,589,452

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

11,079,914

 

(17,895,895)

 

 

7,787,940

 

(15,421,330)

 

 

15,486,181

 

(22,395,774)

Net increase (decrease) in net assets from operations

 

17,455,082

 

(10,705,661)

 

 

12,667,007

 

(8,468,117)

 

 

35,687,182

 

(1,654,397)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

105,479

 

75,705

 

 

71,050

 

177,448

 

 

115,659

 

143,983

Transfers between sub-accounts and the

 

(3,300,106)

 

(989,414)

 

 

(3,466,702)

 

(1,802,737)

 

 

(5,117,313)

 

(3,733,800)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(7,638,193)

 

(10,007,270)

 

 

(5,982,160)

 

(10,871,613)

 

 

(11,365,661)

 

(15,202,093)

Annual contract fee

 

(248,065)

 

(265,329)

 

 

(206,895)

 

(246,402)

 

 

(436,438)

 

(443,917)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,080,885)

 

(11,186,308)

 

 

(9,584,707)

 

(12,743,304)

 

 

(16,803,753)

 

(19,235,827)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

6,374,197

 

(21,891,969)

 

 

3,082,300

 

(21,211,421)

 

 

18,883,429

 

(20,890,224)

Net assets at beginning of period

 

76,809,896

 

98,701,865

 

 

57,031,318

 

78,242,739

 

 

112,150,715

 

133,040,939

Net assets at end of period

$

83,184,093

$

76,809,896

$

60,113,618

$

57,031,318

$

131,034,144

$

112,150,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

2,156,341

 

2,409,972

 

 

1,719,916

 

2,047,512

 

 

3,593,496

 

4,139,818

Units issued

 

19,980

 

96,745

 

 

24,991

 

59,057

 

 

101,578

 

160,107

Units redeemed

 

(294,281)

 

(350,376)

 

 

(276,716)

 

(386,653)

 

 

(545,299)

 

(706,429)

Units, end of period

 

1,882,040

 

2,156,341

 

 

1,468,191

 

1,719,916

 

 

3,149,775

 

3,593,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

50 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Mid Cap Stock Trust Series II

 

 

Mid Value Trust Series I

 

 

Mid Value Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

- $

-

$

463,240

$

377,081

$

378,074

$

283,091

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,166,129)

 

(1,183,969)

 

 

(612,450)

 

(730,417)

 

 

(692,683)

 

(826,794)

Net investment income (loss)

 

(1,166,129)

 

(1,183,969)

 

 

(149,210)

 

(353,336)

 

 

(314,609)

 

(543,703)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

11,941,184

 

8,312,649

 

 

5,395,718

 

3,858,807

 

 

5,456,032

 

3,921,109

Net realized gain (loss)

 

(172,103)

 

282,414

 

 

(1,635,580)

 

152,210

 

 

(1,849,772)

 

(220,333)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,769,081

 

8,595,063

 

 

3,760,138

 

4,011,017

 

 

3,606,260

 

3,700,776

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

9,174,326

 

(8,953,543)

 

 

3,313,397

 

(9,198,547)

 

 

3,525,078

 

(9,060,169)

Net increase (decrease) in net assets from operations

 

19,777,278

 

(1,542,449)

 

 

6,924,325

 

(5,540,866)

 

 

6,816,729

 

(5,903,096)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

111,364

 

296,428

 

 

76,745

 

62,760

 

 

122,819

 

114,094

Transfers between sub-accounts and the

 

(1,989,819)

 

1,575,157

 

 

(709,109)

 

(1,345,892)

 

 

(577,592)

 

(456,086)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(6,822,116)

 

(9,097,637)

 

 

(3,755,136)

 

(5,823,130)

 

 

(5,005,444)

 

(5,144,628)

Annual contract fee

 

(232,764)

 

(240,141)

 

 

(116,158)

 

(128,960)

 

 

(141,985)

 

(164,874)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,933,335)

 

(7,466,193)

 

 

(4,503,658)

 

(7,235,222)

 

 

(5,602,202)

 

(5,651,494)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

10,843,943

 

(9,008,642)

 

 

2,420,667

 

(12,776,088)

 

 

1,214,527

 

(11,554,590)

Net assets at beginning of period

 

63,587,350

 

72,595,992

 

 

40,685,455

 

53,461,543

 

 

41,931,137

 

53,485,727

Net assets at end of period

$

74,431,293

$

63,587,350

$

43,106,122

$

40,685,455

$

43,145,664

$

41,931,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,679,065

 

1,857,493

 

 

1,332,351

 

1,540,959

 

 

1,448,284

 

1,623,098

Units issued

 

79,412

 

134,155

 

 

17,040

 

26,333

 

 

32,103

 

28,623

Units redeemed

 

(266,650)

 

(312,583)

 

 

(151,562)

 

(234,941)

 

 

(208,111)

 

(203,437)

Units, end of period

 

1,491,827

 

1,679,065

 

 

1,197,829

 

1,332,351

 

 

1,272,276

 

1,448,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

51 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Money Market Trust Series I

 

 

Money Market Trust Series II

 

 

Money-Market Trust Series NAV

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

506,096

$

479,988

$

2,066,662

$

1,870,643

$

94,245

$

87,745

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(381,287)

 

(463,915)

 

 

(1,773,961)

 

(2,124,060)

 

 

(73,314)

 

(86,965)

Net investment income (loss)

 

124,809

 

16,073

 

 

292,701

 

(253,417)

 

 

20,931

 

780

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

-

 

-

 

 

-

 

-

Net realized gain (loss)

 

-

 

-

 

 

-

 

-

 

 

-

 

-

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

-

 

 

-

 

-

 

 

-

 

-

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

(2)

 

-

 

 

-

 

1

 

 

(2)

 

(1)

Net increase (decrease) in net assets from operations

 

124,807

 

16,073

 

 

292,701

 

(253,416)

 

 

20,929

 

779

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

-

 

-

 

 

52,198

 

1,472,253

 

 

-

 

-

Transfers between sub-accounts and the

 

(1,513,562)

 

(2,831,707)

 

 

(2,750,198)

 

(8,159,707)

 

 

53,388

 

(444,432)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(3,818,617)

 

(3,176,565)

 

 

(15,460,994)

 

(21,462,762)

 

 

(397,078)

 

(708,846)

Annual contract fee

 

(107,898)

 

(123,582)

 

 

(1,306,937)

 

(1,436,573)

 

 

(30,161)

 

(35,082)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,440,077)

 

(6,131,854)

 

 

(19,465,931)

 

(29,586,789)

 

 

(373,851)

 

(1,188,360)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(5,315,270)

 

(6,115,781)

 

 

(19,173,230)

 

(29,840,205)

 

 

(352,922)

 

(1,187,581)

Net assets at beginning of period

 

28,844,508

 

34,960,289

 

 

130,219,210

 

160,059,415

 

 

4,997,890

 

6,185,471

Net assets at end of period

$

23,529,238

$

28,844,508

$

111,045,980

$

130,219,210

$

4,644,968

$

4,997,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,992,848

 

2,435,130

 

 

11,460,162

 

14,058,988

 

 

405,768

 

503,018

Units issued

 

25,979

 

41,120

 

 

117,064

 

192,567

 

 

17,679

 

3,005

Units redeemed

 

(405,589)

 

(483,402)

 

 

(1,827,320)

 

(2,791,393)

 

 

(47,624)

 

(100,255)

Units, end of period

 

1,613,238

 

1,992,848

 

 

9,749,906

 

11,460,162

 

 

375,823

 

405,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

52 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Mutual Shares Trust Series I

 

 

PIMCO All Asset

 

 

 

Real Estate Securities Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

2,928,679

$

2,126,383

$

205,147

$

263,748

$

633,400

$

489,877

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,379,812)

 

(1,501,778)

 

 

(122,928)

 

(151,955)

 

 

(454,435)

 

(450,977)

Net investment income (loss)

 

1,548,867

 

624,605

 

 

82,219

 

111,793

 

 

178,965

 

38,900

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

5,898,669

 

5,748,070

 

 

-

 

-

 

 

240,936

 

-

Net realized gain (loss)

 

(11,711,739)

 

(9,504,473)

 

 

(61,128)

 

(196,334)

 

 

1,974,082

 

2,132,676

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,813,070)

 

(3,756,403)

 

 

(61,128)

 

(196,334)

 

 

2,215,018

 

2,132,676

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

34,157,877

 

(11,772,375)

 

 

721,923

 

(583,609)

 

 

4,777,483

 

(3,729,475)

Net increase (decrease) in net assets from operations

 

29,893,674

 

(14,904,173)

 

 

743,014

 

(668,150)

 

 

7,171,466

 

(1,557,899)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

75,024

 

31,528

 

 

-

 

-

 

 

72,933

 

39,767

Transfers between sub-accounts and the

 

(4,017,623)

 

4,914,781

 

 

(326,747)

 

(1,197,103)

 

 

(772,553)

 

(1,551,185)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(15,793,279)

 

(16,461,092)

 

 

(577,339)

 

(2,009,912)

 

 

(2,768,341)

 

(3,627,347)

Annual contract fee

 

(1,050,429)

 

(1,103,090)

 

 

(19,713)

 

(23,885)

 

 

(56,368)

 

(54,989)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,786,307)

 

(12,617,873)

 

 

(923,799)

 

(3,230,900)

 

 

(3,524,329)

 

(5,193,754)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

9,107,367

 

(27,522,046)

 

 

(180,785)

 

(3,899,050)

 

 

3,647,137

 

(6,751,653)

Net assets at beginning of period

 

143,605,503

 

171,127,549

 

 

8,029,549

 

11,928,599

 

 

26,939,716

 

33,691,369

Net assets at end of period

$

152,712,870

$

143,605,503

$

7,848,764

$

8,029,549

$

30,586,853

$

26,939,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

7,753,647

 

8,334,910

 

 

411,974

 

569,467

 

 

534,733

 

636,862

Units issued

 

5,293

 

399,860

 

 

3,821

 

2,915

 

 

30,430

 

21,509

Units redeemed

 

(1,000,977)

 

(981,123)

 

 

(48,787)

 

(160,408)

 

 

(89,363)

 

(123,638)

Units, end of period

 

6,757,963

 

7,753,647

 

 

367,008

 

411,974

 

 

475,800

 

534,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

53 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Real Estate Securities Trust Series II

 

 

Science & Technology Trust Series I

 

 

Science & Technology Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

646,959

$

549,667

$

119,705

$

-

$

- $

-

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(532,265)

 

(538,005)

 

 

(1,445,798)

 

(1,516,927)

 

 

(749,039)

 

(797,301)

Net investment income (loss)

 

114,694

 

11,662

 

 

(1,326,093)

 

(1,516,927)

 

 

(749,039)

 

(797,301)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

267,558

 

-

 

 

17,018,351

 

14,342,029

 

 

8,492,269

 

7,515,914

Net realized gain (loss)

 

1,795,616

 

1,791,186

 

 

6,790,656

 

9,956,526

 

 

2,778,943

 

3,001,878

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,063,174

 

1,791,186

 

 

23,809,007

 

24,298,555

 

 

11,271,212

 

10,517,792

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

5,718,139

 

(3,627,700)

 

 

6,915,637

 

(23,495,596)

 

 

3,639,446

 

(10,654,576)

Net increase (decrease) in net assets from operations

 

7,896,007

 

(1,824,852)

 

 

29,398,551

 

(713,968)

 

 

14,161,619

 

(934,085)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

51,085

 

99,879

 

 

126,172

 

215,273

 

 

76,065

 

208,558

Transfers between sub-accounts and the

 

264,868

 

(2,243,474)

 

 

(4,165,713)

 

(2,946,840)

 

 

(2,436,481)

 

3,608,532

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(3,684,693)

 

(4,164,764)

 

 

(8,578,743)

 

(9,994,681)

 

 

(4,449,560)

 

(4,733,637)

Annual contract fee

 

(104,207)

 

(106,785)

 

 

(208,610)

 

(219,912)

 

 

(166,753)

 

(182,221)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,472,947)

 

(6,415,144)

 

 

(12,826,894)

 

(12,946,160)

 

 

(6,976,729)

 

(1,098,768)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

4,423,060

 

(8,239,996)

 

 

16,571,657

 

(13,660,128)

 

 

7,184,890

 

(2,032,853)

Net assets at beginning of period

 

30,200,476

 

38,440,472

 

 

85,292,722

 

98,952,850

 

 

42,537,203

 

44,570,056

Net assets at end of period

$

34,623,536

$

30,200,476

$

101,864,379

$

85,292,722

$

49,722,093

$

42,537,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

804,076

 

966,645

 

 

2,511,294

 

2,859,342

 

 

1,080,860

 

1,104,734

Units issued

 

49,951

 

20,252

 

 

82,500

 

129,563

 

 

124,161

 

244,595

Units redeemed

 

(124,359)

 

(182,821)

 

 

(392,381)

 

(477,611)

 

 

(275,758)

 

(268,469)

Units, end of period

 

729,668

 

804,076

 

 

2,201,413

 

2,511,294

 

 

929,263

 

1,080,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

54 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short Term Government Income Trust Series

 

 

Select Bond Trust Series I

 

 

Select Bond Trust Series II

 

 

 

I

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

4,281,363

$

4,949,279

$

8,854,494

$

10,762,228

$

396,255

$

518,885

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(1,524,554)

 

(1,654,763)

 

 

(5,578,220)

 

(6,163,012)

 

 

(358,924)

 

(374,609)

Net investment income (loss)

 

2,756,809

 

3,294,516

 

 

3,276,274

 

4,599,216

 

 

37,331

 

144,276

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

-

 

-

 

 

-

 

-

Net realized gain (loss)

 

(99,266)

 

(2,069,893)

 

 

1,733,549

 

(6,176,007)

 

 

(285,936)

 

(307,122)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(99,266)

 

(2,069,893)

 

 

1,733,549

 

(6,176,007)

 

 

(285,936)

 

(307,122)

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

10,133,756

 

(3,853,448)

 

 

21,582,342

 

(6,923,625)

 

 

702,417

 

(15,286)

Net increase (decrease) in net assets from operations

 

12,791,299

 

(2,628,825)

 

 

26,592,165

 

(8,500,416)

 

 

453,812

 

(178,132)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

153,124

 

30,462

 

 

160,371

 

219,067

 

 

28,559

 

109,246

Transfers between sub-accounts and the

 

12,033,367

 

(5,118,508)

 

 

(62,662,411)

 

94,195,253

 

 

1,757,726

 

535,522

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(17,797,593)

 

(17,656,065)

 

 

(48,563,846)

 

(56,340,015)

 

 

(3,928,367)

 

(2,744,987)

Annual contract fee

 

(1,190,927)

 

(1,255,363)

 

 

(2,239,783)

 

(2,396,181)

 

 

(50,148)

 

(50,395)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,802,029)

 

(23,999,474)

 

 

(113,305,669)

 

35,678,124

 

 

(2,192,230)

 

(2,150,614)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

5,989,270

 

(26,628,299)

 

 

(86,713,504)

 

27,177,708

 

 

(1,738,418)

 

(2,328,746)

Net assets at beginning of period

 

162,857,666

 

189,485,965

 

 

455,779,558

 

428,601,850

 

 

24,776,847

 

27,105,593

Net assets at end of period

$

168,846,936

$

162,857,666

$

369,066,054

$

455,779,558

$

23,038,429

$

24,776,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

11,694,988

 

13,425,264

 

 

35,085,514

 

32,359,937

 

 

2,048,837

 

2,229,433

Units issued

 

1,039,648

 

683,952

 

 

5,093,907

 

13,605,063

 

 

478,788

 

220,135

Units redeemed

 

(1,504,211)

 

(2,414,228)

 

 

(13,630,571)

 

(10,879,486)

 

 

(658,517)

 

(400,731)

Units, end of period

 

11,230,425

 

11,694,988

 

 

26,548,850

 

35,085,514

 

 

1,869,108

 

2,048,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

55 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Short Term Government Income Trust Series

 

 

 

 

 

 

 

 

 

 

 

 

II

 

 

 

Small Cap Index Trust Series I

 

 

Small Cap Index Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

288,615

$

383,880

$

116,894

$

131,030

$

224,805

$

243,347

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(322,279)

 

(345,439)

 

 

(185,575)

 

(215,314)

 

 

(471,382)

 

(556,755)

Net investment income (loss)

 

(33,664)

 

38,441

 

 

(68,681)

 

(84,284)

 

 

(246,577)

 

(313,408)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

1,114,217

 

818,948

 

 

2,669,239

 

1,949,307

Net realized gain (loss)

 

(143,997)

 

(455,679)

 

 

123,505

 

452,966

 

 

524,531

 

1,393,300

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(143,997)

 

(455,679)

 

 

1,237,722

 

1,271,914

 

 

3,193,770

 

3,342,607

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

489,970

 

188,226

 

 

1,301,419

 

(2,859,505)

 

 

3,004,989

 

(6,931,367)

Net increase (decrease) in net assets from operations

 

312,309

 

(229,012)

 

 

2,470,460

 

(1,671,875)

 

 

5,952,182

 

(3,902,168)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

21,549

 

29,918

 

 

28,020

 

25,558

 

 

50,340

 

79,850

Transfers between sub-accounts and the

 

3,798,367

 

3,932,145

 

 

(682,354)

 

39,308

 

 

(767,068)

 

(293,169)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(5,965,941)

 

(5,242,835)

 

 

(1,306,632)

 

(834,419)

 

 

(2,947,927)

 

(4,439,134)

Annual contract fee

 

(66,342)

 

(75,679)

 

 

(32,692)

 

(36,508)

 

 

(124,799)

 

(143,143)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,212,367)

 

(1,356,451)

 

 

(1,993,658)

 

(806,061)

 

 

(3,789,454)

 

(4,795,596)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

(1,900,058)

 

(1,585,463)

 

 

476,802

 

(2,477,936)

 

 

2,162,728

 

(8,697,764)

Net assets at beginning of period

 

21,847,312

 

23,432,775

 

 

11,425,511

 

13,903,447

 

 

27,409,629

 

36,107,393

Net assets at end of period

$

19,947,254

$

21,847,312

$

11,902,313

$

11,425,511

$

29,572,357

$

27,409,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,870,549

 

1,988,007

 

 

394,435

 

418,638

 

 

939,136

 

1,076,540

Units issued

 

601,313

 

875,540

 

 

11,987

 

36,368

 

 

36,389

 

43,461

Units redeemed

 

(788,773)

 

(992,998)

 

 

(72,741)

 

(60,571)

 

 

(151,341)

 

(180,865)

Units, end of period

 

1,683,089

 

1,870,549

 

 

333,681

 

394,435

 

 

824,184

 

939,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

56 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Small Cap Opportunities Trust Series I

 

 

Small Cap Opportunities Trust Series II

 

 

Small Cap Stock Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

122,885

$

152,918

$

42,193

$

67,864

$

- $

-

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(472,264)

 

(556,091)

 

 

(403,542)

 

(477,638)

 

 

(6,563)

 

(6,741)

Net investment income (loss)

 

(349,379)

 

(403,173)

 

 

(361,349)

 

(409,774)

 

 

(6,563)

 

(6,741)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

2,607,034

 

7,226,419

 

 

2,140,414

 

5,834,208

 

 

210,056

 

46,269

Net realized gain (loss)

 

(987,671)

 

198,085

 

 

(914,452)

 

396,349

 

 

11,780

 

2,094

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,619,363

 

7,424,504

 

 

1,225,962

 

6,230,557

 

 

221,836

 

48,363

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

5,406,507

 

(12,161,820)

 

 

4,424,779

 

(9,937,225)

 

 

12,278

 

(73,152)

Net increase (decrease) in net assets from operations

 

6,676,491

 

(5,140,489)

 

 

5,289,392

 

(4,116,442)

 

 

227,551

 

(31,530)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

56,786

 

61,138

 

 

25,053

 

88,639

 

 

-

 

-

Transfers between sub-accounts and the

 

(1,250,592)

 

(545,253)

 

 

(617,484)

 

(732,788)

 

 

45,807

 

10,936

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(2,984,538)

 

(3,553,219)

 

 

(2,717,646)

 

(3,170,058)

 

 

(84,814)

 

(60,187)

Annual contract fee

 

(75,306)

 

(85,421)

 

 

(89,897)

 

(105,083)

 

 

(210)

 

(199)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,253,650)

 

(4,122,755)

 

 

(3,399,974)

 

(3,919,290)

 

 

(39,217)

 

(49,450)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

2,422,841

 

(9,263,244)

 

 

1,889,418

 

(8,035,732)

 

 

188,334

 

(80,980)

Net assets at beginning of period

 

29,574,176

 

38,837,420

 

 

23,802,539

 

31,838,271

 

 

636,642

 

717,622

Net assets at end of period

$

31,997,017

$

29,574,176

$

25,691,957

$

23,802,539

$

824,976

$

636,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

874,606

 

974,597

 

 

753,786

 

853,932

 

 

27,172

 

28,803

Units issued

 

13,692

 

36,613

 

 

18,495

 

33,448

 

 

2,629

 

697

Units redeemed

 

(123,091)

 

(136,604)

 

 

(115,423)

 

(133,594)

 

 

(4,054)

 

(2,328)

Units, end of period

 

765,207

 

874,606

 

 

656,858

 

753,786

 

 

25,747

 

27,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

57 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Small Cap Stock Trust Series II

 

 

Small Cap Value Trust Series I

 

 

Small Cap Value Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

- $

-

$

4,024

$

4,927

$

91,361

$

131,514

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(468,418)

 

(462,719)

 

 

(6,550)

 

(6,917)

 

 

(365,238)

 

(445,120)

Net investment income (loss)

 

(468,418)

 

(462,719)

 

 

(2,526)

 

(1,990)

 

 

(273,877)

 

(313,606)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

9,323,728

 

1,910,714

 

 

48,276

 

88,270

 

 

1,633,611

 

3,462,628

Net realized gain (loss)

 

392,917

 

(483,381)

 

 

(5,664)

 

(385)

 

 

(1,191,476)

 

(1,505,354)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,716,645

 

1,427,333

 

 

42,612

 

87,885

 

 

442,135

 

1,957,274

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

(354,688)

 

(3,009,624)

 

 

113,265

 

(180,081)

 

 

5,041,839

 

(5,235,985)

Net increase (decrease) in net assets from operations

 

8,893,539

 

(2,045,010)

 

 

153,351

 

(94,186)

 

 

5,210,097

 

(3,592,317)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

33,137

 

129,480

 

 

-

 

-

 

 

30,459

 

41,948

Transfers between sub-accounts and the

 

(672,626)

 

2,649,272

 

 

4,579

 

376

 

 

(1,127,702)

 

(2,515,699)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(1,977,392)

 

(3,044,607)

 

 

(36,006)

 

(16,178)

 

 

(1,944,038)

 

(3,336,921)

Annual contract fee

 

(81,693)

 

(79,999)

 

 

(122)

 

(126)

 

 

(63,462)

 

(75,796)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,698,574)

 

(345,854)

 

 

(31,549)

 

(15,928)

 

 

(3,104,743)

 

(5,886,468)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

6,194,965

 

(2,390,864)

 

 

121,802

 

(110,114)

 

 

2,105,354

 

(9,478,785)

Net assets at beginning of period

 

25,609,856

 

28,000,720

 

 

617,135

 

727,249

 

 

22,709,662

 

32,188,447

Net assets at end of period

$

31,804,821

$

25,609,856

$

738,937

$

617,135

$

24,815,016

$

22,709,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

865,860

 

887,366

 

 

23,369

 

23,867

 

 

825,018

 

1,004,416

Units issued

 

106,247

 

210,765

 

 

468

 

98

 

 

28,175

 

48,461

Units redeemed

 

(181,190)

 

(232,271)

 

 

(1,525)

 

(596)

 

 

(125,712)

 

(227,859)

Units, end of period

 

790,917

 

865,860

 

 

22,312

 

23,369

 

 

727,481

 

825,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

58 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

 

Small Company Value Trust Series I

 

 

Small Company Value Trust Series II

 

Strategic Income Opportunities Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

314,349

$

153,270

$

247,387

$

73,671

$

767,884

$

1,194,864

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(553,217)

 

(637,885)

 

 

(589,746)

 

(682,381)

 

 

(421,857)

 

(500,452)

Net investment income (loss)

 

(238,868)

 

(484,615)

 

 

(342,359)

 

(608,710)

 

 

346,027

 

694,412

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

17,627,588

 

3,613,950

 

 

18,374,164

 

3,762,418

 

 

-

 

-

Net realized gain (loss)

 

(855,594)

 

2,239,600

 

 

(2,354,195)

 

2,021,451

 

 

(96,159)

 

(152,713)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,771,994

 

5,853,550

 

 

16,019,969

 

5,783,869

 

 

(96,159)

 

(152,713)

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

(8,775,220)

 

(10,950,321)

 

 

(7,947,973)

 

(10,995,014)

 

 

2,264,222

 

(2,691,988)

Net increase (decrease) in net assets from operations

 

7,757,906

 

(5,581,386)

 

 

7,729,637

 

(5,819,855)

 

 

2,514,090

 

(2,150,289)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

57,531

 

54,930

 

 

103,441

 

135,114

 

 

17,351

 

13,669

Transfers between sub-accounts and the

 

(631,653)

 

(1,853,811)

 

 

(874,563)

 

(424,013)

 

 

(676,336)

 

(2,214,961)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(2,835,186)

 

(4,241,112)

 

 

(3,248,422)

 

(5,080,184)

 

 

(2,685,552)

 

(3,835,530)

Annual contract fee

 

(75,819)

 

(83,600)

 

 

(115,210)

 

(131,701)

 

 

(41,990)

 

(52,614)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,485,127)

 

(6,123,593)

 

 

(4,134,754)

 

(5,500,784)

 

 

(3,386,527)

 

(6,089,436)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

4,272,779

 

(11,704,979)

 

 

3,594,883

 

(11,320,639)

 

 

(872,437)

 

(8,239,725)

Net assets at beginning of period

 

34,014,662

 

45,719,641

 

 

34,595,578

 

45,916,217

 

 

28,929,145

 

37,168,870

Net assets at end of period

$

38,287,441

$

34,014,662

$

38,190,461

$

34,595,578

$

28,056,708

$

28,929,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

840,097

 

968,872

 

 

1,082,149

 

1,224,233

 

 

1,319,270

 

1,589,928

Units issued

 

16,991

 

11,182

 

 

24,700

 

48,947

 

 

48,201

 

61,879

Units redeemed

 

(91,890)

 

(139,957)

 

 

(134,327)

 

(191,031)

 

 

(199,835)

 

(332,537)

Units, end of period

 

765,198

 

840,097

 

 

972,522

 

1,082,149

 

 

1,167,636

 

1,319,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

59 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Strategic Income Opportunities Trust Series

 

 

 

 

 

 

 

 

 

 

 

 

II

 

 

 

Total Bond Market Series Trust NAV

 

 

Total Bond Market Trust Series II

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

780,348

$

1,207,207

$

2,084,010

$

2,619,222

$

1,130,997

$

1,256,079

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(507,331)

 

(578,433)

 

 

(821,512)

 

(895,801)

 

 

(777,364)

 

(791,680)

Net investment income (loss)

 

273,017

 

628,774

 

 

1,262,498

 

1,723,421

 

 

353,633

 

464,399

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

-

 

-

 

 

-

 

-

Net realized gain (loss)

 

(113,061)

 

(146,271)

 

 

(724,814)

 

(1,901,971)

 

 

(404,354)

 

(833,692)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(113,061)

 

(146,271)

 

 

(724,814)

 

(1,901,971)

 

 

(404,354)

 

(833,692)

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

2,526,678

 

(2,925,402)

 

 

5,874,011

 

(1,112,212)

 

 

3,373,510

 

(800,408)

Net increase (decrease) in net assets from operations

 

2,686,634

 

(2,442,899)

 

 

6,411,695

 

(1,290,762)

 

 

3,322,789

 

(1,169,701)

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

26,975

 

46,213

 

 

107,673

 

12,432

 

 

18,036

 

23,455

Transfers between sub-accounts and the

 

1,508,389

 

(693,610)

 

 

7,039,600

 

(2,102,150)

 

 

8,219,047

 

7,039,830

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(3,926,670)

 

(4,855,181)

 

 

(10,864,580)

 

(11,138,292)

 

 

(12,445,539)

 

(8,921,272)

Annual contract fee

 

(93,086)

 

(105,235)

 

 

(848,827)

 

(895,933)

 

 

(395,817)

 

(384,237)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,484,392)

 

(5,607,813)

 

 

(4,566,134)

 

(14,123,943)

 

 

(4,604,273)

 

(2,242,224)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

202,242

 

(8,050,712)

 

 

1,845,561

 

(15,414,705)

 

 

(1,281,484)

 

(3,411,925)

Net assets at beginning of period

 

30,584,140

 

38,634,852

 

 

89,338,550

 

104,753,255

 

 

54,254,779

 

57,666,704

Net assets at end of period

$

30,786,382

$

30,584,140

$

91,184,111

$

89,338,550

$

52,973,295

$

54,254,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,489,159

 

1,747,679

 

 

6,903,807

 

8,001,184

 

 

4,408,111

 

4,595,430

Units issued

 

157,549

 

119,867

 

 

633,115

 

369,944

 

 

1,406,525

 

1,476,686

Units redeemed

 

(263,372)

 

(378,387)

 

 

(972,585)

 

(1,467,321)

 

 

(1,771,423)

 

(1,664,005)

Units, end of period

 

1,383,336

 

1,489,159

 

 

6,564,337

 

6,903,807

 

 

4,043,213

 

4,408,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

60 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

 

Total Stock Market Index Trust Series I

 

 

Total Stock Market Index Trust Series II

 

 

Ultra Short Term Bond Trust Series I

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

657,248

$

521,061

$

473,307

$

359,147

$

152,733

$

179,293

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative charges

 

(625,757)

 

(669,456)

 

 

(570,504)

 

(615,188)

 

 

(82,613)

 

(79,058)

Net investment income (loss)

 

31,491

 

(148,395)

 

 

(97,197)

 

(256,041)

 

 

70,120

 

100,235

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

2,841,844

 

1,422,199

 

 

2,348,543

 

1,190,257

 

 

-

 

-

Net realized gain (loss)

 

769,286

 

1,334,241

 

 

2,769,113

 

2,346,423

 

 

135,503

 

(90,561)

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,611,130

 

2,756,440

 

 

5,117,656

 

3,536,680

 

 

135,503

 

(90,561)

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

6,687,219

 

(5,488,713)

 

 

3,341,110

 

(5,767,979)

 

 

965

 

34,045

Net increase (decrease) in net assets from operations

 

10,329,840

 

(2,880,668)

 

 

8,361,569

 

(2,487,340)

 

 

206,588

 

43,719

 

 

 

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase payments

 

59,727

 

47,183

 

 

27,675

 

65,793

 

 

-

 

-

Transfers between sub-accounts and the

 

(996,484)

 

(2,350,936)

 

 

(1,261,664)

 

(729,170)

 

 

10,620,324

 

6,840,269

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(3,938,575)

 

(3,337,361)

 

 

(3,113,183)

 

(3,200,255)

 

 

(11,580,080)

 

(5,192,464)

Annual contract fee

 

(70,310)

 

(83,334)

 

 

(145,640)

 

(156,396)

 

 

(57,577)

 

(62,690)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,945,642)

 

(5,724,448)

 

 

(4,492,812)

 

(4,020,028)

 

 

(1,017,333)

 

1,585,115

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

5,384,198

 

(8,605,116)

 

 

3,868,757

 

(6,507,368)

 

 

(810,745)

 

1,628,834

Net assets at beginning of period

 

39,008,398

 

47,613,514

 

 

32,264,869

 

38,772,237

 

 

10,300,085

 

8,671,251

Net assets at end of period

$

44,392,596

$

39,008,398

$

36,133,626

$

32,264,869

$

9,489,340

$

10,300,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

1,667,740

 

1,891,536

 

 

1,097,829

 

1,219,652

 

 

859,864

 

727,684

Units issued

 

10,081

 

55,264

 

 

13,103

 

11,758

 

 

1,066,380

 

876,326

Units redeemed

 

(192,202)

 

(279,060)

 

 

(143,663)

 

(133,581)

 

 

(1,151,196)

 

(744,146)

Units, end of period

 

1,485,619

 

1,667,740

 

 

967,269

 

1,097,829

 

 

775,048

 

859,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

61 of 80

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY

For the years ended December 31,

 

 

Ultra Short Term Bond Trust Series II

 

 

Value Opportunities

 

 

2019

 

2018

 

 

2019

 

2018

Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend distributions received

$

3,219,407

$

2,513,749

$

44,056

$

34,390

Expenses:

 

 

 

 

 

 

 

 

 

Mortality and expense risk and

 

 

 

 

 

 

 

 

 

administrative charges

 

(2,617,704)

 

(2,377,800)

 

 

(42,151)

 

(45,950)

Net investment income (loss)

 

601,703

 

135,949

 

 

1,905

 

(11,560)

Realized gains (losses) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital gain distributions received

 

-

 

-

 

 

232,014

 

285,649

Net realized gain (loss)

 

1,159,370

 

(2,085,497)

 

 

120,838

 

82,806

Realized gains (losses)

 

 

 

 

 

 

 

 

 

 

1,159,370

 

(2,085,497)

 

 

352,852

 

368,455

Unrealized appreciation (depreciation) during

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the period

 

717,222

 

1,468,227

 

 

324,136

 

(577,954)

Net increase (decrease) in net assets from operations

 

2,478,295

 

(481,321)

 

 

678,893

 

(221,059)

 

 

 

 

 

 

Changes from principal transactions:

 

 

 

 

 

 

 

 

 

Purchase payments

 

636,508

 

917,992

 

 

-

 

-

Transfers between sub-accounts and the

 

212,880,410

 

139,507,495

 

 

(78,960)

 

(22,864)

company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Withdrawals

 

(175,298,097)

 

(149,544,960)

 

 

(309,355)

 

(185,442)

Annual contract fee

 

(1,264,283)

 

(1,148,397)

 

 

(9,753)

 

(10,242)

Net increase (decrease) in net assets from principal

 

 

 

 

 

 

 

 

 

 

36,954,538

 

(10,267,870)

 

 

(398,068)

 

(218,548)

transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

 

39,432,833

 

(10,749,191)

 

 

280,825

 

(439,607)

Net assets at beginning of period

 

176,623,376

 

187,372,567

 

 

2,680,343

 

3,119,950

Net assets at end of period

$

216,056,209

$

176,623,376

$

2,961,168

$

2,680,343

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

Units, beginning of period

 

15,670,778

 

16,588,059

 

 

39,596

 

41,565

Units issued

 

18,610,432

 

15,843,730

 

 

10

 

167

Units redeemed

 

(15,327,142)

 

(16,761,011)

 

 

(7,009)

 

(2,136)

Units, end of period

 

18,954,068

 

15,670,778

 

 

32,597

 

39,596

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

62 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS

December 31, 2019

1. Organization

John Hancock Life Insurance Company (U.S.A.) Separate Account H (the "Account") is a separate account established by John Hancock Life Insurance Company (U.S.A.) (the "Company"). The Account operates as a Unit Investment Trust under the Investment Company Act of 1940, as amended (the "Act") and is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 Financial Services – Investment Companies. The Account consists of 108 active sub-accounts which are exclusively invested in a corresponding portfolio of the John Hancock Variable Insurance Trust (the "Trust"), and 5 active sub-accounts that are invested in portfolios of other Non-affiliated Trusts (the "Non-affiliated Trusts"). The Trust and Non-affiliated Trusts are registered under the Act as an open-ended management investment company, commonly known as a mutual fund, which does not transact with the general public. The Account is a funding vehicle for the allocation of net premiums under variable annuity contracts (the "Contracts") issued by the Company.

The Company is a stock life insurance company organized originally under the laws of the State of Maine in 1955 and later in 1992, the Company changed its state of domicile to the State of Michigan. The Company is an indirect, wholly owned subsidiary of Manulife Financial Corporation ("MFC"), a Canadian based publicly traded life insurance company. MFC and its subsidiaries are known collectively as Manulife Financial.

The Company is required to maintain assets in the Account with a total fair value of at least equal to the reserves and other liabilities relating to the variable benefits under all Contracts participating in the Account. These assets may not be charged with liabilities which arise from any other business the Company conducts. However, all obligations under the Contracts are general corporate obligations of the Company.

In addition to the Account, certain contract owners may also allocate funds to the fixed account, which is part of the Company's general account. Because of exemptive and exclusionary provisions, interests in the fixed account have not been registered under the Securities Act of 1933, and the Company's general account has not been registered as an investment company under the Investment Company Act of 1940. Net interfund transfers include transfers between separate and general accounts.

Each sub-account holds shares of a particular series ("Portfolio") of a registered investment company. Sub- accounts that invest in Portfolios of the Trust may offer 4 classes of units to fund Contracts issued by the Company. These classes, Series I, Series II, Series III and Series NAV, represent an interest in the same Trust Portfolio, but in different classes of that Portfolio. Series I, Series II, Series III and Series NAV shares of the Trust Portfolio differ in the level of 12b-1 fees and other expenses assessed against the Portfolio's assets.

Funds transferred in 2019 are as follows:

Transferred from

Transferred to

Effective Date

International Growth Stock Trust Series II

International Equity Index Series II

11/01/2019

Utilities Trust Series I

Equity Income Trust Series I

11/01/2019

Utilities Trust Series II

Equity Income Trust Series II

11/01/2019

63 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

2. Significant Accounting Policies

Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates.

Valuation of Investments

Investments made in the Portfolios of the Trust, and of the Non-affiliated Trusts, are valued at fair value based on the reported net asset values of such Portfolios. Investment transactions are recorded on the trade date. Income from dividends, and gains from realized gain distributions are recorded on the ex-dividend date. Realized gains and losses on the sales of investments are computed on a first-in, first-out basis.

Net Assets in Payout (Annuitization) Period

A portion of net assets is allocated to annuity policies in the payout period. The liability for these policies is calculated using statutory accounting using mortality assumptions and an assumed interest rate. Mortality assumptions are based on the Individual Annuity Mortality Table in effect at the time of annuitization. The assumed interest rate is 3% to 4%, as regulated by the laws of the respective states. The mortality risk is borne entirely by the Company and may result in additional amounts being transferred into the variable annuity account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company.

Amounts Receivable/Payable

Receivables/Payables from/to Portfolios/the Company are due to unsettled contract transactions (net of asset- based charges) and/or subsequent/preceding purchases/sales of the respective Portfolios' shares. The amounts are due from/to either the respective Portfolio and/or the Company for the benefit of contract owners. There are no unsettled policy transactions at December 31, 2019.

64 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS

December 31, 2019

3. Federal Income Taxes

The Account does not file separate tax returns. The taxable income of the Account is consolidated with that of the Company within the consolidated federal tax return. Any tax contingencies arising from the taxable income generated by the Account is the responsibility of the Company and the Company holds any and all tax contingencies on its financial statements. The Company's consolidated federal tax return for the years 2014 and 2015 are currently under examination by the Internal Revenue Service. The years from 2015 are also open for examination by the internal revenue service. The Account is not a party to the consolidated tax sharing agreement thus no amount of income taxes or tax contingencies are passed through to the Account. The legal form of the Account is not taxable in any state or foreign jurisdictions.

The income taxes topic of the FASB ASC establishes a minimum threshold for financial statement recognition of the benefit of positions taken, or expected to be taken, in filing tax returns (including whether the Account is taxable in certain jurisdictions). The topic requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as tax expense or benefit.

The Account complies with the provisions of FASB ASC Topic 740, Income Taxes. As of December 31, 2019, the Account did not have a liability for any uncertain tax positions. The Account recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statements of Operations and Changes in Contract Owners' Equity.

4. Transactions with Affiliates

The Company has an administrative services agreement with Manulife Financial, whereby Manulife Financial or its designee, with the consent of the Company, performs certain services on behalf of the Company necessary for the operation of the Account. John Hancock Investment Management Services, LLC ("JHIMS"), a Delaware limited liability company controlled by MFC, serves as investment adviser for the Trust.

John Hancock Distributors, LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principle underwriter of the Contracts pursuant to a distribution agreement with the Company. Contracts are sold by registered representatives of either John Hancock Distributors, LLC or other broker-dealers having distribution agreements with John Hancock Distributors, LLC.

Certain officers of the Account are officers and directors of JHUSA or the Trust.

Contract charges, as described in Note 9, are paid to the Company.

65 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

5. Fair Value Measurements

ASC 820 "Fair Value Measurements and Disclosures" provides a single definition of fair value for accounting purposes, establishes a consistent framework for measuring fair value, and expands disclosure requirements about fair value measurements. ASC 820 defines fair value as the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit value. An exit value is not a forced liquidation or distressed sale.

Following ASC 820 guidance, the Account has categorized its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Account's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

•Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Account has the ability to access at the measurement date.

•Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

•Level 3 – Fair value measurements using significant non market observable inputs.

All of the Account's sub-accounts' investments in a Portfolio of the Trust were valued at the reported net asset value of the Portfolio and categorized as Level 1 as of December 31, 2019. The following table presents the Account's assets that are measured at fair value on a recurring basis by fair value hierarchy level under ASC 820, as of December 31, 2019:

 

 

Level 1

Level 2

Level 3

 

Total

Mutual Funds

 

 

 

 

 

 

Affiliated

$

29,390,789,796

 

-

-

29,390,789,796

NonAffiliated

$

27,435,796

 

-

-

27,435,796

 

 

 

 

 

 

 

Total

$

29,418,225,592

 

-

-

29,418,225,592

 

 

 

 

 

 

 

Assets owned by the Account are primarily open-ended mutual fund investments issued by the Trust. These are classified within Level 1, as fair values of the underlying funds are based upon reported net asset values ("NAV"), which represent the values at which each sub-account can redeem its investments.

Changes in valuation techniques may result in transfer in or out of an assigned level within the disclosure hierarchy. Transfers between investment levels may occur as the availability of a price source or data used in an investment's valuation changes. Transfers between investment levels are recognized at the beginning of the reporting period. There have been no transfers between any level of fair value measurements during the period ended December 31, 2019.

66 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

6. Purchases and Sales of Investments

The cost of purchases including reinvestment of dividend distributions and proceeds from the sales of investments in the Portfolios of the Trust and Non-affiliated Trusts during 2019 were as follows:

Sub-Account

 

Purchases

 

Sales

500 Index Fund Series I

$

7,934,913

$

22,292,332

500 Index Fund Series II

 

9,905,167

 

13,746,357

500 Index Fund Series NAV

 

8,117,047

 

38,143,842

Active Bond Trust Series I

 

3,776,663

 

5,737,288

Active Bond Trust Series II

 

16,592,318

 

20,118,721

American Asset Allocation Trust Series I

 

17,564,651

 

16,726,041

American Asset Allocation Trust Series II

 

111,660,492

 

141,254,507

American Asset Allocation Trust Series III

 

15,162,289

 

17,419,565

American Global Growth Trust Series II

 

18,444,975

 

29,766,912

American Global Growth Trust Series III

 

3,535,234

 

6,461,768

American Growth Trust Series II

 

103,670,238

 

106,695,910

American Growth Trust Series III

 

17,639,966

 

17,730,257

American Growth-Income Trust Series I

 

15,535,836

 

15,880,713

American Growth-Income Trust Series II

 

60,640,118

 

79,516,922

American Growth-Income Trust Series III

 

28,472,496

 

34,588,714

American International Trust Series II

 

29,948,830

 

53,732,471

American International Trust Series III

 

4,071,139

 

6,703,849

Basic Value Focus

 

440,092

 

475,376

Blue Chip Growth Trust Series I

 

37,400,942

 

39,813,969

Blue Chip Growth Trust Series II

 

22,225,567

 

25,801,539

Capital Appreciation Trust Series I

 

91,039,469

 

19,721,448

Capital Appreciation Trust Series II

 

39,255,996

 

10,943,601

Capital Appreciation Value Trust Series II

 

24,025,803

 

43,181,133

Core Bond Trust Series I

 

5,493,288

 

10,959,191

Core Bond Trust Series II

 

11,018,244

 

15,647,573

DWS Equity 500 Index

 

805,687

 

1,675,446

Emerging Markets Value Trust Series II

 

3,689,894

 

6,130,112

Emerging Markets Value Trust Series NAV

 

108,104

 

179,754

Equity Income Trust Series I

 

32,575,745

 

27,704,424

Equity Income Trust Series II

 

25,043,887

 

16,728,732

Financial Industries Trust Series I

 

1,471,800

 

2,328,807

Financial Industries Trust Series II

 

2,524,465

 

2,826,018

Fundamental All Cap Core Trust Series II

 

6,589,704

 

9,799,615

Fundamental Large Cap Value Trust Series I

 

6,308,519

 

26,908,607

Fundamental Large Cap Value Trust Series II

 

5,302,626

 

32,964,467

Global Allocation

 

12,968

 

13,729

Global Bond Trust Series I

 

2,374,633

 

4,056,301

Global Bond Trust Series II

 

9,525,497

 

11,058,890

Global Trust Series I

 

8,080,403

 

14,165,073

Global Trust Series II

 

3,313,925

 

6,107,684

Health Sciences Trust Series I

 

6,015,518

 

9,972,068

Health Sciences Trust Series II

 

6,742,284

 

12,173,748

High Yield Trust Series I

 

9,757,739

 

11,583,858

High Yield Trust Series II

 

9,060,444

 

11,299,756

International Equity Index Series I

 

6,386,408

 

2,556,427

International Equity Index Series II

 

8,322,782

 

3,487,876

International Equity Index Series NAV

 

1,291,427

 

1,376,742

International Growth Stock Trust Series II (c)

 

8,868,995

 

16,864,117

International Small Company Trust Series I

 

1,578,214

 

2,904,126

67 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

6. Purchases and Sales of Investments (continued):

 

 

 

 

Sub-Account

 

Purchases

 

Sales

International Small Company Trust Series II

$

1,109,061

$

2,301,142

International Value Trust Series I

 

2,752,047

 

8,653,259

International Value Trust Series II

 

3,148,868

 

7,325,495

Investment Quality Bond Trust Series I

 

14,056,305

 

17,707,875

Investment Quality Bond Trust Series II

 

12,173,616

 

12,092,232

Lifestyle Aggressive Portfolio Series I

 

424,215

 

161,845

Lifestyle Aggressive Portfolio Series II

 

1,122,438

 

609,813

Lifestyle Balanced Portfolio Series I

 

5,305,963

 

2,371,305

Lifestyle Balanced Portfolio Series II

 

109,235,740

 

93,734,384

Lifestyle Conservative Portfolio Series I

 

4,186,936

 

4,038,767

Lifestyle Conservative Portfolio Series II

 

48,146,026

 

50,850,156

Lifestyle Growth Portfolio Series I

 

18,123,140

 

29,952,018

Lifestyle Growth Portfolio Series II

 

407,880,954

 

727,789,676

Lifestyle Growth Portfolio Series NAV

 

388,081

 

1,020,243

Lifestyle Moderate Portfolio Series I

 

2,105,176

 

1,467,715

Lifestyle Moderate Portfolio Series II

 

45,344,053

 

40,692,388

Managed Volatility Aggressive Portfolio Series I

 

4,855,261

 

7,072,357

Managed Volatility Aggressive Portfolio Series II

 

7,459,897

 

9,330,699

Managed Volatility Balanced Portfolio Series I

 

27,796,877

 

55,720,534

Managed Volatility Balanced Portfolio Series II

 

312,963,008

 

744,264,453

Managed Volatility Conservative Portfolio Series I

 

7,229,783

 

17,729,166

Managed Volatility Conservative Portfolio Series II

 

46,931,646

 

156,434,823

Managed Volatility Growth Portfolio Series I

 

38,557,215

 

55,016,660

Managed Volatility Growth Portfolio Series II

 

615,163,336

 

1,044,611,568

Managed Volatility Growth Portfolio Series NAV

 

39,316

 

26,510

Managed Volatility Moderate Portfolio Series I

 

11,255,471

 

23,498,027

Managed Volatility Moderate Portfolio Series II

 

99,263,887

 

249,873,531

Mid Cap Index Trust Series I

 

8,364,577

 

12,906,401

Mid Cap Index Trust Series II

 

6,305,318

 

11,410,193

Mid Cap Stock Trust Series I

 

23,369,468

 

22,305,747

Mid Cap Stock Trust Series II

 

15,593,324

 

13,751,604

Mid Value Trust Series I

 

6,392,397

 

5,649,548

Mid Value Trust Series II

 

6,686,987

 

7,147,767

Money Market Trust Series I

 

848,017

 

6,163,287

Money Market Trust Series II

 

3,142,974

 

22,316,203

Money-Market Trust Series NAV

 

305,554

 

658,476

Mutual Shares Trust Series I

 

8,905,477

 

22,244,248

PIMCO All Asset

 

280,542

 

1,122,121

Real Estate Securities Trust Series I

 

2,682,215

 

5,786,646

Real Estate Securities Trust Series II

 

3,190,272

 

6,280,966

Science & Technology Trust Series I

 

19,832,374

 

16,967,012

Science & Technology Trust Series II

 

14,727,594

 

13,961,095

Select Bond Trust Series I

 

19,468,925

 

23,514,146

Select Bond Trust Series II

 

75,653,143

 

185,682,536

Short Term Government Income Trust Series I

 

6,201,674

 

8,356,574

Short Term Government Income Trust Series II

 

7,343,057

 

9,589,089

Small Cap Index Trust Series I

 

1,613,675

 

2,561,796

Small Cap Index Trust Series II

 

4,068,787

 

5,435,577

Small Cap Opportunities Trust Series I

 

3,219,806

 

5,215,803

Small Cap Opportunities Trust Series II

 

2,791,413

 

4,412,320

Small Cap Stock Trust Series I

 

278,471

 

114,194

Small Cap Stock Trust Series II

 

13,225,806

 

7,069,072

68 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

6. Purchases and Sales of Investments (continued):

 

 

 

 

Sub-Account

 

Purchases

 

Sales

Small Cap Value Trust Series I

$

66,251

$

52,052

Small Cap Value Trust Series II

 

2,615,344

 

4,360,353

Small Company Value Trust Series I

 

18,722,317

 

4,818,724

Small Company Value Trust Series II

 

19,481,471

 

5,584,418

Strategic Income Opportunities Trust Series I

 

1,873,847

 

4,914,345

Strategic Income Opportunities Trust Series II

 

4,068,188

 

6,279,566

Total Bond Market Series Trust NAV

 

10,659,868

 

13,963,502

Total Bond Market Trust Series II

 

18,936,659

 

23,187,296

Total Stock Market Index Trust Series I

 

3,740,796

 

5,813,104

Total Stock Market Index Trust Series II

 

3,237,014

 

5,478,481

Ultra Short Term Bond Trust Series I

 

13,123,017

 

14,070,232

Ultra Short Term Bond Trust Series II

 

206,337,374

 

168,781,132

Utilities Trust Series I (a)

 

1,782,021

 

16,076,357

Utilities Trust Series II (b)

 

1,503,416

 

14,177,575

Value Opportunities

 

276,690

 

440,838

Ref6notes

(a)Terminated as an investment option and funds transferred to Equity Income Trust Series I on November 1, 2019. The information above represents operations and change in owner's contract holder equities from beginning of the year through termination date.

(b)Terminated as an investment option and funds transferred to Equity Income Trust Series II on November 1, 2019. The information above represents operations and change in owner's contract holder equities from beginning of the year through termination date.

(c)Terminated as an investment option and funds transferred to International Equity Index Series II on November 1, 2019. The information above represents operations and change in owner's contract holder equities from beginning of the year through termination date.

69 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values

A summary of unit values and units outstanding for variable annuity contracts and the expense and income ratios, excluding expenses of the underlying Portfolios, were as follows:


At December 31,





For the years and periods ended December 31,



Units

Unit Fair Value


Assets

Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)


(000s)

Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

500 Index Fund Series I(*)

2019

4,843

$ 31.41 to $ 28.31


$ 142,077 .


1.90 % to 0.45 %

1.66 %

30.47 % to 28.59 %

.

2018

5,483

24.08 to 22.02


124,393 .


1.90 to 0.45

1.30

-5.12 to -6.50

.

2017

6,105

25.38 to 23.55


147,484 .


1.90 to 0.45

1.66

20.98 to 19.24

.

2016

6,884

20.98 to 19.75


138,794 .


1.90 to 0.45

3.09

11.09 to 9.49

.

2015

2,528

18.88 to 18.04


46,424 .


1.90 to 0.45

1.60

0.65 to -0.80

.

.

.

.

.

..


.

.

500 Index Fund Series II(*)

2019

2,243

30.97 to 27.62


62,608 .


2.05 to 0.45

1.51

30.24 to 28.17

.

2018

2,418

23.78 to 21.55


52,639 .


2.05 to 0.45

1.13

-5.31 to -6.83

.

2017

2,586

25.12 to 23.13


60,261 .


2.05 to 0.45

1.50

20.74 to 18.83

.

2016

2,741

20.80 to 19.46


53,568 .


2.05 to 0.45

1.67

10.87 to 9.11

.

2015

2,354

18.76 to 17.84


42,522 .


2.05 to 0.45

1.44

0.41 to -1.19

.

.

.

.

.

..


.

.

500 Index Fund Series NAV(*)

2019

6,220

30.75 to 26.36


187,147 .


2.05 to 0.80

1.69

30.11 to 28.50

.

2018

7,468

23.63 to 20.51


173,126 .


2.05 to 0.80

1.31

-5.41 to -6.59

.

2017

8,459

24.98 to 21.96


207,675 .


2.05 to 0.80

1.69

20.58 to 19.08

.

2016

10,016

20.72 to 18.44


204,469 .


2.05 to 0.80

1.74

10.76 to 9.38

.

2015

11,198

18.71 to 16.86


206,755 .


2.05 to 0.80

1.68

0.35 to -0.90

.

.

.

.

.

..


.

.

Active Bond Trust Series I(*)

2019

1,212

24.28 to 19.63


25,396 .


1.90 to 0.45

2.69

8.76 to 7.20

.

2018

1,322

22.32 to 18.31


25,739 .


1.90 to 0.45

3.10

-1.05 to -2.48

.

2017

1,451

22.56 to 18.77


28,904 .


1.90 to 0.45

3.43

4.37 to 2.88

.

2016

1,603

21.62 to 18.25


30,912 .


1.90 to 0.45

3.56

3.87 to 2.38

.

2015

1,808

20.81 to 17.83


33,841 .


1.90 to 0.45

4.84

-0.28 to -1.72

.

.

.

.

.

..


.

.

Active Bond Trust Series II(*)

2019

6,290

18.65 to 13.40


124,667 .


2.05 to 1.00

2.53

7.94 to 6.81

.

2018

6,520

17.46 to 12.42


120,639 .


2.05 to 1.00

2.89

-1.79 to -2.82

.

2017

7,619

17.97 to 12.64


144,487 .


2.05 to 1.00

3.21

3.59 to 2.51

.

2016

7,880

17.53 to 12.20


145,180 .


2.05 to 1.20

3.34

2.12 to -2.40

.

2015

8,870

18.40 to 17.16


159,363 .


2.05 to 1.40

4.57

-1.53 to -2.16

.

.

.

.

.

..


.

.

American Asset Allocation Trust Series I(*)

2019

4,963

25.68 to 21.37


113,208 .


1.90 to 0.45

1.34

20.24 to 18.50

.

2018

5,496

21.36 to 18.03


104,975 .


1.90 to 0.45

1.57

-5.34 to -6.71

.

2017

6,072

22.56 to 19.33


123,761 .


1.90 to 0.45

1.17

15.27 to 13.62

.

2016

6,564

19.57 to 17.01


117,189 .


1.90 to 0.45

1.26

8.50 to 6.94

.

2015

6,939

18.04 to 15.91


115,278 .


1.90 to 0.45

1.99

0.60 to -0.84

.

.

.

.

.

..


.

.

American Asset Allocation Trust Series II(*)

2019

41,211

22.15 to 20.67


900,004 .


2.05 to 1.00

1.22

19.47 to 18.22

.

2018

47,315

18.54 to 17.49


868,429 .


2.05 to 1.00

1.47

-6.01 to -7.00

.

2017

54,127

19.73 to 18.80


1,061,204 .


2.05 to 1.00

1.07

14.54 to 13.35

.

2016

61,102

17.22 to 16.59


1,050,388 .


2.05 to 1.00

1.09

7.83 to 6.71

.

2015

67,055

15.97 to 15.55


1,082,182 .


2.05 to 1.00

1.83

-0.09 to -1.14

.

.

.

.

.

..


.

.

American Asset Allocation Trust Series III(*)

2019

4,588

26.96 to 24.66


122,259 .


1.55 to 0.80

1.67

20.19 to 19.30

.

2018

5,240

22.43 to 20.67


116,316 .


1.55 to 0.80

1.91

-5.39 to -6.10

.

2017

5,984

23.71 to 22.01


140,567 .


1.55 to 0.80

1.50

15.33 to 14.47

.

2016

6,706

20.56 to 19.23


136,740 .


1.55 to 0.80

1.61

8.56 to 7.75

.

2015

7,351

18.93 to 17.85


138,210 .


1.55 to 0.80

2.33

0.53 to -0.22

.

.

.

.

.

..


.

.

American Global Growth Trust Series II(*)

2019

5,857

26.45 to 24.42


151,504 .


2.05 to 1.00

0.54

33.32 to 31.93

.

2018

6,911

19.84 to 18.51


134,638 .


2.05 to 1.00

0.57

-10.37 to -11.31

.

2017

7,936

22.14 to 20.87


173,375 .


2.05 to 1.00

0.17

29.62 to 28.27

.

2016

9,113

17.08 to 16.27


154,324 .


2.05 to 1.00

0.76

-0.89 to -1.93

.

2015

10,462

17.23 to 16.59


179,743 .


2.05 to 1.00

1.40

5.44 to 4.33

.

.

.

.

.

..


.

.

American Global Growth Trust Series III(*)

2019

967

31.20 to 28.54


29,730 .


1.55 to 0.80

0.96

34.10 to 33.10

.

2018

1,174

23.27 to 21.44


26,969 .


1.55 to 0.80

1.00

-9.77 to -10.45

.

2017

1,253

25.79 to 23.94


31,918 .


1.55 to 0.80

0.56

30.30 to 29.33

.

2016

1,575

19.79 to 18.51


30,846 .


1.55 to 0.80

1.27

-0.17 to -0.92

.

2015

1,603

19.82 to 18.68


31,462 .


1.55 to 0.80

1.86

6.17 to 5.37

.

.

.

.

.

..


.

.

American Growth Trust Series II(*)

2019

11,474

61.79 to 47.32


535,195 .


2.05 to 0.45

0.73

29.61 to 27.55

.

2018

13,671

47.67 to 37.10


495,562 .


2.05 to 0.45

0.30

-1.16 to -2.74

.

2017

16,059

48.23 to 38.15


595,655 .


2.05 to 0.45

0.27

27.17 to 25.15

.

2016

19,385

37.93 to 30.48


571,028 .


2.05 to 0.45

0.32

8.54 to 6.82

.

2015

22,432

34.94 to 28.53


615,541 .


2.05 to 0.45

0.09

5.87 to 4.19

.

.

.

.

.

..


.

.

American Growth Trust Series III(*)

2019

2,594

35.27 to 32.26


90,208 .


1.55 to 0.80

1.17

29.76 to 28.79

.

2018

3,093

27.18 to 25.05


82,982 .


1.55 to 0.80

0.71

-1.08 to -1.82

.

2017

3,580

27.48 to 25.51


97,231 .


1.55 to 0.80

0.70

27.20 to 26.25

.

2016

4,375

21.60 to 20.21


93,545 .


1.55 to 0.80

0.80

8.61 to 7.80

.

2015

4,752

19.89 to 18.75


93,651 .


1.55 to 0.80

0.58

6.02 to 5.22

.

.

.

.

.

..


.

.

American Growth-Income Trust Series I(*)

2019

2,634

50.79 to 39.89


112,835 .


1.90 to 0.45

1.49

25.14 to 23.34

.

2018

2,973

40.59 to 32.34


102,807 .


1.90 to 0.45

1.35

-2.62 to -4.03

.

2017

3,388

41.68 to 33.70


121,608 .


1.90 to 0.45

1.03

21.49 to 19.74

.

2016

3,892

34.31 to 28.14


116,152 .


1.90 to 0.45

1.59

10.61 to 9.01

.

2015

4,390

31.02 to 25.81


119,693 .


1.90 to 0.45

1.27

0.66 to -0.79

.

.

.

.

.

..


.

.

70 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,





For the years and periods ended December 31,



Units

Unit Fair Value


Assets

Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)


(000s)

Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

American Growth-Income Trust Series II(*)

2019

11,502

$ 50.14 to $ 38.40


$ 441,928 .


2.05 % to 0.45 %

1.39 %

25.08 % to 23.10 %

.

2018

13,514

40.09 to 31.20


418,780 .


2.05 to 0.45

1.25

-2.71 to -4.26

.

2017

15,764

41.20 to 32.59


507,128 .


2.05 to 0.45

0.95

21.34 to 19.42

.

2016

18,765

33.96 to 27.29


503,087 .


2.05 to 0.45

1.50

10.56 to 8.81

.

2015

22,083

30.71 to 25.08


541,100 .


2.05 to 0.45

1.13

0.51 to -1.08

.

.

.

.

.

..


.

.

American Growth-Income Trust Series III(*)

2019

6,269

32.64 to 29.85


201,783 .


1.55 to 0.80

1.84

25.16 to 24.22

.

2018

7,331

26.08 to 24.03


188,742 .


1.55 to 0.80

1.68

-2.60 to -3.34

.

2017

8,380

26.77 to 24.86


221,783 .


1.55 to 0.80

1.39

21.42 to 20.51

.

2016

9,932

22.05 to 20.63


216,784 .


1.55 to 0.80

1.99

10.65 to 9.83

.

2015

11,058

19.93 to 18.78


218,366 .


1.55 to 0.80

1.66

0.66 to -0.10

.

.

.

.

.

..


.

.

American International Trust Series II(*)

2019

8,655

33.55 to 18.93


270,480 .


2.05 to 1.00

0.79

21.05 to 19.79

.

2018

10,103

28.01 to 15.64


261,041 .


2.05 to 1.00

2.48

-14.45 to -15.35

.

2017

11,003

33.09 to 18.28


333,479 .


2.05 to 1.00

0.71

30.19 to 28.84

.

2016

13,582

25.68 to 14.04


316,695 .


2.05 to 1.00

0.82

1.95 to 0.88

.

2015

15,090

25.46 to 13.78


347,869 .


2.05 to 1.00

0.94

-5.92 to -6.91

.

.

.

.

.

..


.

.

American International Trust Series III(*)

2019

1,949

19.03 to 17.40


36,565 .


1.55 to 0.80

1.28

21.91 to 21.00

.

2018

2,255

15.61 to 14.38


34,732 .


1.55 to 0.80

2.98

-13.90 to -14.54

.

2017

2,404

18.13 to 16.83


43,050 .


1.55 to 0.80

1.17

31.07 to 30.09

.

2016

2,989

13.83 to 12.94


40,895 .


1.55 to 0.80

1.30

2.66 to 1.90

.

2015

3,173

13.47 to 12.70


42,336 .


1.55 to 0.80

1.43

-5.30 to -6.01

.

.

.

.

.

..


.

.

Basic Value Focus

2019

86

58.86 to 28.85


4,219 .


1.80 to 1.40

2.23

21.99 to 21.51

.

2018

95

48.25 to 23.75


3,829 .


1.80 to 1.40

1.55

-9.34 to -9.71

.

2017

109

53.22 to 26.30


4,930 .


1.80 to 1.40

1.31

6.65 to 6.22

.

2016

127

49.91 to 24.76


5,279 .


1.80 to 1.40

1.29

16.24 to 15.78

.

2015

154

42.93 to 21.39


5,468 .


1.80 to 1.40

1.32

-7.38 to -7.75

.

.

.

.

.

..


.

.

Blue Chip Growth Trust Series I(*)

2019

3,479

62.74 to 42.74


241,695 .


1.90 to 0.45

0.00

29.21 to 27.35

.

2018

3,990

48.55 to 33.56


216,533 .


1.90 to 0.45

0.02

1.51 to 0.04

.

2017

4,510

47.83 to 33.54


243,660 .


1.90 to 0.45

0.07

35.67 to 33.73

.

2016

5,095

35.26 to 25.08


204,902 .


1.90 to 0.45

0.01

0.36 to -1.09

.

2015

5,839

35.13 to 25.36


236,562 .


1.90 to 0.45

0.00

10.56 to 8.97

.

.

.

.

.

..


.

.

Blue Chip Growth Trust Series II(*)

2019

2,455

51.97 to 36.08


116,834 .


2.05 to 1.00

0.00

28.24 to 26.90

.

2018

2,880

40.96 to 28.13


107,498 .


2.05 to 1.00

0.00

0.76 to -0.30

.

2017

3,103

41.08 to 27.92


115,266 .


2.05 to 1.00

0.00

34.62 to 33.22

.

2016

3,627

30.84 to 20.74


100,570 .


2.05 to 1.00

0.00

-0.38 to -1.43

.

2015

4,254

31.28 to 20.82


119,386 .


2.05 to 1.00

0.00

9.73 to 8.58

.

.

.

.

.

..


.

.

Capital Appreciation Trust Series I(*)

2019

4,687

37.31 to 36.37


142,530 .


1.90 to 0.45

0.04

32.30 to 30.39

.

2018

5,277

28.61 to 27.49


122,498 .


1.90 to 0.45

0.26

-1.25 to -2.68

.

2017

5,906

29.40 to 27.84


140,279 .


1.90 to 0.45

0.06

35.92 to 33.97

.

2016

6,883

21.94 to 20.48


121,452 .


1.90 to 0.45

0.00

-1.52 to -2.94

.

2015

7,856

22.61 to 20.80


142,010 .


1.90 to 0.45

0.00

10.96 to 9.36

.

.

.

.

.

..


.

.

Capital Appreciation Trust Series II(*)

2019

1,315

51.08 to 34.84


57,289 .


2.05 to 1.00

0.01

31.33 to 29.95

.

2018

1,523

39.31 to 26.53


50,795 .


2.05 to 1.00

0.04

-1.98 to -3.01

.

2017

1,692

40.53 to 27.07


57,963 .


2.05 to 1.00

0.00

34.85 to 33.45

.

2016

1,997

30.37 to 20.07


51,049 .


2.05 to 1.00

0.00

-2.25 to -3.27

.

2015

2,332

31.39 to 20.53


61,537 .


2.05 to 1.00

0.00

10.06 to 8.91

.

.

.

.

.

..


.

.

Capital Appreciation Value Trust Series II(*)

2019

9,499

27.72 to 26.05


260,486 .


2.05 to 1.00

1.18

22.86 to 21.58

.

2018

10,875

22.80 to 21.20


243,307 .


2.05 to 1.00

1.88

-0.90 to -1.94

.

2017

12,364

23.25 to 21.39


280,370 .


2.05 to 1.00

1.23

13.85 to 12.66

.

2016

14,097

20.64 to 18.79


281,362 .


2.05 to 1.00

1.10

6.77 to 5.66

.

2015

14,890

19.53 to 17.60


293,194 .


2.05 to 1.00

0.89

4.05 to 2.97

.

.

.

.

.

..


.

.

Core Bond Trust Series I(*)

2019

3,442

21.30 to 17.22


61,700 .


1.90 to 0.45

2.37

7.84 to 6.29

.

2018

3,785

19.75 to 16.20


63,639 .


1.90 to 0.45

2.37

-1.04 to -2.47

.

2017

4,369

19.96 to 16.61


75,033 .


1.90 to 0.45

2.03

2.94 to 1.46

.

2016

5,044

19.39 to 16.37


85,004 .


1.90 to 0.45

1.90

2.28 to 0.81

.

2015

6,088

18.95 to 16.24


101,222 .


1.90 to 0.45

2.33

-2.01 to -2.98

.

.

.

.

.

..


.

.

Core Bond Trust Series II(*)

2019

4,176

16.68 to 13.28


71,521 .


2.05 to 1.00

2.20

6.97 to 5.85

.

2018

4,477

15.76 to 12.42


72,132 .


2.05 to 1.00

2.18

-1.78 to -2.81

.

2017

5,342

16.21 to 12.64


87,944 .


2.05 to 1.00

1.87

2.18 to 1.12

.

2016

6,142

16.03 to 12.37


99,553 .


2.05 to 1.00

1.72

1.52 to 0.46

.

2015

7,077

15.96 to 12.19


113,078 .


2.05 to 1.00

2.00

-1.92 to -2.50

.

.

.

.

.

..


.

.

DWS Equity 500 Index

2019

247

51.34 to 39.09


12,152 .


2.05 to 1.40

1.58

28.82 to 27.99

.

2018

279

39.85 to 30.54


10,682 .


2.05 to 1.40

1.32

-6.33 to -6.94

.

2017

314

42.55 to 32.82


12,879 .


2.05 to 1.40

1.40

19.38 to 18.61

.

2016

370

35.64 to 27.67


12,733 .


2.05 to 1.40

1.74

9.65 to 8.94

.

2015

421

32.50 to 25.40


13,229 .


2.05 to 1.40

1.28

-0.64 to -1.29

.

.

.

.

.

..


.

.

71 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,




For the years and periods ended December 31,



Units

Unit Fair Value

Assets



Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)

(000s)



Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Emerging Markets Value Trust Series II(*)

2019

2,552

$ 12.29 to $ 11.86

$ 30,665 .


2.05 % to 0.45 %

2.93 %

10.21 % to 8.46 %

.

2018

2,809

11.15 to 10.94

30,944 .


2.05 to 0.45

2.23

-14.18 to -15.55

.

2017

3,264

12.99 to 12.95

42,338 .


2.05 to 0.45

4.38

3.91 to 3.63

.

.

.

.

.

..

.


.

Emerging Markets Value Trust Series NAV(*)

2019

122

12.26 to 12.06

1,485 .


1.55 to 0.80

3.20

10.01 to 9.19

.

2018

131

11.14 to 11.04

1,452 .


1.55 to 0.80

2.58

-14.17 to -14.82

.

2017

143

12.98 to 12.97

1,855 .


1.55 to 0.80

5.49

3.86 to 3.72

.

.

.

.

.

..

.


.

Equity Income Trust Series I(*)

2019

3,052

47.38 to 30.65

177,745 .


1.90 to 0.45

2.05

25.78 to 23.97

.

2018

3,216

37.67 to 24.73

152,265 .


1.90 to 0.45

1.79

-9.99 to -11.29

.

2017

3,727

41.85 to 27.87

196,454 .


1.90 to 0.45

2.21

15.77 to 14.11

.

2016

4,250

36.15 to 24.43

195,429 .


1.90 to 0.45

2.19

18.59 to 16.88

.

2015

4,831

30.48 to 20.90

188,429 .


1.90 to 0.45

1.85

-7.17 to -8.50

.

.

.

.

.

..

.


.

Equity Income Trust Series II(*)

2019

3,726

38.57 to 34.14

115,219 .


2.05 to 0.45

1.88

25.61 to 23.61

.

2018

3,782

30.71 to 27.62

94,017 .


2.05 to 0.45

1.59

-10.16 to -11.60

.

2017

4,389

34.18 to 31.24

122,995 .


2.05 to 0.45

2.02

15.48 to 13.66

.

2016

5,116

29.60 to 27.49

125,642 .


2.05 to 0.45

2.04

18.38 to 16.50

.

2015

5,626

25.00 to 23.60

118,166 .


2.05 to 0.45

1.67

-7.33 to -8.80

.

.

.

.

.

..

.


.

Financial Industries Trust Series I(*)

2019

342

27.49 to 25.73

9,202 .


1.90 to 1.40

4.12

29.96 to 29.31

.

2018

407

21.15 to 19.90

8,458 .


1.90 to 1.40

1.15

-15.68 to -16.11

.

2017

474

25.09 to 23.72

11,693 .


1.90 to 1.40

1.16

13.69 to 13.12

.

2016

533

22.07 to 20.97

11,595 .


1.90 to 1.40

1.53

17.71 to 17.12

.

2015

543

18.75 to 17.90

10,015 .


1.90 to 1.40

0.99

-4.00 to -4.48

.

.

.

.

.

..

.


.

Financial Industries Trust Series II(*)

2019

473

30.49 to 25.15

13,265 .


2.05 to 1.00

3.93

30.21 to 28.85

.

2018

527

23.67 to 19.31

11,387 .


2.05 to 1.00

1.12

-15.48 to -16.37

.

2017

625

28.30 to 22.85

16,106 .


2.05 to 1.00

0.96

13.88 to 12.69

.

2016

772

25.11 to 20.07

17,537 .


2.05 to 1.00

1.24

18.02 to 16.79

.

2015

840

21.50 to 17.00

16,184 .


2.05 to 1.00

0.71

-3.85 to -4.85

.

.

.

.

.

..

.


.

Fundamental All Cap Core Trust Series II(*)

2019

963

42.75 to 19.21

43,404 .


2.05 to 1.00

0.24

34.83 to 33.42

.

2018

1,098

32.04 to 14.25

37,081 .


2.05 to 1.00

0.20

-14.21 to -15.11

.

2017

1,221

37.75 to 16.61

48,359 .


2.05 to 1.00

0.55

26.16 to 24.85

.

2016

1,348

33.04 to 30.23

43,337 .


2.05 to 1.40

0.18

6.61 to 5.92

.

2015

1,546

30.99 to 28.54

46,759 .


2.05 to 1.40

0.00

2.39 to 1.73

.

.

.

.

.

..

.


.

Fundamental Large Cap Value Trust Series I(*)

2019

6,025

37.42 to 29.81

190,760 .


1.90 to 0.45

1.14

35.24 to 33.30

.

2018

6,828

27.67 to 22.36

161,567 .


1.90 to 0.45

1.07

-17.41 to -18.61

.

2017

7,734

33.50 to 27.48

223,805 .


1.90 to 0.45

1.59

16.91 to 15.23

.

2016

9,036

28.65 to 23.85

225,924 .


1.90 to 0.45

2.20

9.68 to 8.10

.

2015

10,281

26.13 to 22.06

236,820 .


1.90 to 0.45

0.96

-1.55 to -2.97

.

.

.

.

.

..

.


.

Fundamental Large Cap Value Trust Series II(*)

2019

4,994

28.76 to 17.03

141,440 .


2.05 to 1.00

0.93

34.24 to 32.84

.

2018

6,141

21.65 to 12.69

129,991 .


2.05 to 1.00

0.87

-18.06 to -18.92

.

2017

6,914

26.70 to 15.49

178,758 .


2.05 to 1.00

1.40

16.03 to 14.83

.

2016

8,056

23.25 to 13.35

180,517 .


2.05 to 1.00

2.00

8.86 to 7.73

.

2015

9,295

21.59 to 12.26

192,421 .


2.05 to 1.00

0.77

-2.28 to -3.30

.

.

.

.

.

..

.


.

Global Allocation

2019

11

27.84 to 22.45

255

.


1.75 to 1.40

1.15

16.19 to 15.79

.

2018

11

24.04 to 19.32

227

.


1.75 to 1.40

0.81

-8.81 to -9.13

.

2017

11

26.46 to 21.18

251

.


1.75 to 1.40

0.84

12.17 to 11.78

.

2016

35

23.67 to 18.89

679

.


1.75 to 1.40

1.13

2.51 to 2.15

.

2015

37

23.17 to 18.42

689

.


1.75 to 1.40

0.95

-2.25 to -2.59

.

.

.

.

.

..

.


.

Global Bond Trust Series I(*)

2019

722

22.96 to 16.96

22,479 .


1.90 to 0.80

6.27

5.53 to 4.38

.

2018

811

22.00 to 16.07

24,164 .


1.90 to 0.80

2.63

-2.68 to -3.75

.

2017

917

22.86 to 16.51

28,398 .


1.90 to 0.80

2.23

7.89 to 6.71

.

2016

1,098

21.42 to 15.30

31,470 .


1.90 to 0.80

0.00

2.23 to 1.11

.

2015

1,173

21.18 to 14.97

32,986 .


1.90 to 0.80

2.51

-4.27 to -5.32

.

.

.

.

.

..

.


.

Global Bond Trust Series II(*)

2019

2,737

17.25 to 12.41

53,892 .


2.05 to 1.00

6.28

5.03 to 3.93

.

2018

2,952

16.59 to 11.82

55,604 .


2.05 to 1.00

2.63

-3.01 to -4.03

.

2017

3,739

17.29 to 12.18

71,900 .


2.05 to 1.00

1.93

7.40 to 6.29

.

2016

4,013

16.27 to 11.34

73,029 .


2.05 to 1.00

0.00

1.89 to 0.83

.

2015

4,374

16.13 to 11.13

79,194 .


2.05 to 1.00

2.52

-4.69 to -5.68

.

.

.

.

.

..

.


.

Global Trust Series I(*)

2019

3,560

25.94 to 19.46

95,996 .


1.90 to 0.45

2.13

15.52 to 13.86

.

2018

3,921

22.45 to 17.09

93,402 .


1.90 to 0.45

1.76

-14.88 to -16.11

.

2017

4,161

26.38 to 20.37

119,324 .


1.90 to 0.45

1.83

18.35 to 16.65

.

2016

4,783

22.29 to 17.46

116,485 .


1.90 to 0.45

4.46

8.97 to 7.41

.

2015

5,315

20.45 to 16.26

120,663 .


1.90 to 0.45

1.87

-6.84 to -8.18

.

.

.

.

.

..

.


.

Global Trust Series II(*)

2019

1,202

24.60 to 14.11

26,152 .


2.05 to 1.00

1.89

14.68 to 13.48

.

2018

1,391

21.67 to 12.30

26,538 .


2.05 to 1.00

1.50

-15.50 to -16.39

.

2017

1,658

25.92 to 14.56

37,859 .


2.05 to 1.00

1.66

17.45 to 16.23

.

2016

1,883

22.30 to 12.39

36,828 .


2.05 to 1.00

4.26

8.15 to 7.02

72 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,





For the years and periods ended December 31,



Units

Unit Fair Value


Assets

Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)


(000s)

Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Global Trust Series II(*)

2015

2,175

$ 20.84 to $ 11.46


$ 39,571 .


2.05 % to 1.00 %

1.64 %

-7.54 % to -8.51 %

.

.

.

.

.

..

.


.

Health Sciences Trust Series I(*)

2019

583

105.69 to 79.48


50,631 .


1.90 to 0.45

0.00

28.10 to 26.26

.

2018

670

82.50 to 62.95


45,999 .


1.90 to 0.45

0.00

0.23 to -1.22

.

2017

744

82.31 to 63.72


51,425 .


1.90 to 0.45

0.00

26.94 to 25.11

.

2016

898

64.85 to 50.93


49,474 .


1.90 to 0.45

0.07

-10.97 to -12.26

.

2015

1,125

72.84 to 58.05


70,280 .


1.90 to 0.45

0.00

12.19 to 10.57

.

.

.

.

.

..

.


.

Health Sciences Trust Series II(*)

2019

729

89.58 to 38.31


60,712 .


2.05 to 1.00

0.00

27.12 to 25.79

.

2018

849

71.22 to 30.14


56,169 .


2.05 to 1.00

0.00

-0.48 to -1.53

.

2017

965

72.32 to 30.28


63,593 .


2.05 to 1.00

0.00

25.99 to 24.68

.

2016

1,141

58.00 to 24.04


59,857 .


2.05 to 1.00

0.00

-11.66 to -12.58

.

2015

1,420

66.36 to 27.21


86,054 .


2.05 to 1.00

0.00

11.38 to 10.21

.

.

.

.

.

..

.


.

High Yield Trust Series I(*)

2019

2,760

32.06 to 26.46


54,750 .


1.90 to 0.45

5.25

15.14 to 13.49

.

2018

2,982

27.84 to 23.32


51,588 .


1.90 to 0.45

5.78

-3.45 to -4.85

.

2017

3,438

28.84 to 24.50


62,433 .


1.90 to 0.45

5.17

7.02 to 5.48

.

2016

3,940

26.95 to 23.23


68,642 .


1.90 to 0.45

6.74

15.74 to 14.08

.

2015

4,437

23.28 to 20.36


66,200 .


1.90 to 0.45

7.09

-8.73 to -10.05

.

.

.

.

.

..

.


.

High Yield Trust Series II(*)

2019

1,940

25.71 to 16.21


47,178 .


2.05 to 1.00

4.98

14.35 to 13.15

.

2018

2,088

22.72 to 14.18


45,027 .


2.05 to 1.00

5.44

-4.12 to -5.13

.

2017

2,456

23.95 to 14.79


55,499 .


2.05 to 1.00

5.00

6.07 to 4.96

.

2016

2,726

22.81 to 13.94


58,286 .


2.05 to 1.00

6.48

15.00 to 13.80

.

2015

3,361

20.05 to 12.12


62,634 .


2.05 to 1.00

6.71

-9.46 to -10.40

.

.

.

.

.

..

.


.

International Equity Index Series I(*)

2019

1,073

17.08 to 16.48


18,350 .


1.90 to 1.40

2.71

19.68 to 19.09

.

2018

857

14.27 to 13.84


12,215 .


1.90 to 1.40

2.28

-15.30 to -15.72

.

2017

921

16.85 to 16.42


15,509 .


1.90 to 1.40

2.16

25.54 to 24.91

.

2016

1,006

13.42 to 13.15


13,508 .


1.90 to 1.40

2.58

3.00 to 2.48

.

2015

1,124

13.03 to 12.83


14,658 .


1.90 to 1.40

2.21

-7.22 to -7.69

.

.

.

.

.

..

.


.

International Equity Index Series II(*)

2019

1,100

18.02 to 16.07


18,331 .


2.05 to 0.45

2.65

20.57 to 18.65

.

2018

814

14.95 to 13.54


11,356 .


2.05 to 0.45

2.00

-14.66 to -16.02

.

2017

918

17.52 to 16.13


15,168 .


2.05 to 0.45

2.04

26.47 to 24.47

.

2016

907

13.85 to 12.96


11,992 .


2.05 to 0.45

2.38

3.77 to 2.12

.

2015

1,008

13.35 to 12.69


12,971 .


2.05 to 0.45

1.94

-6.53 to -8.02

.

.

.

.

.

..

.


.

International Equity Index Series NAV(*)

2019

785

13.86 to 12.78


10,617 .


2.05 to 1.40

2.45

19.75 to 18.98

.

2018

803

11.57 to 10.74


9,080 .


2.05 to 1.40

2.29

-15.30 to -15.86

.

2017

902

13.66 to 12.76


12,080 .


2.05 to 1.40

2.16

25.68 to 24.87

.

2016

1,045

10.87 to 10.22


11,152 .


2.05 to 1.40

2.67

2.98 to 2.31

.

2015

1,117

10.56 to 9.99


11,604 .


2.05 to 1.40

2.32

-7.11 to -7.72

.

.

.

.

.

..

.


.

International Small Company Trust Series I(*)

2019

862

23.98 to 20.70


18,694 .


1.90 to 0.45

2.15

22.05 to 20.30

.

2018

972

19.65 to 17.21


17,469 .


1.90 to 0.45

1.23

-20.46 to -21.61

.

2017

1,107

24.70 to 21.95


25,245 .


1.90 to 0.45

1.38

28.88 to 27.03

.

2016

1,275

19.17 to 17.28


22,787 .


1.90 to 0.45

1.91

4.43 to 2.93

.

2015

1,458

18.35 to 16.79


25,204 .


1.90 to 0.45

1.77

6.07 to 4.54

.

.

.

.

.

..

.


.

International Small Company Trust Series II(*)

2019

579

19.98 to 19.86


12,084 .


2.05 to 1.00

1.76

21.14 to 19.87

.

2018

669

16.66 to 16.40


11,576 .


2.05 to 1.00

1.22

-21.07 to -21.90

.

2017

764

21.34 to 20.77


16,816 .


2.05 to 1.00

1.23

27.89 to 26.56

.

2016

860

16.86 to 16.24


14,898 .


2.05 to 1.00

1.69

3.66 to 2.57

.

2015

988

16.44 to 15.67


16,605 .


2.05 to 1.00

1.63

5.33 to 4.23

.

.

.

.

.

..

.


.

International Value Trust Series I(*)

2019

2,611

26.08 to 21.52


53,425 .


1.90 to 0.45

2.71

11.83 to 10.22

.

2018

2,949

23.32 to 19.53


54,546 .


1.90 to 0.45

2.39

-15.42 to -16.64

.

2017

3,295

27.57 to 23.43


72,751 .


1.90 to 0.45

1.76

16.62 to 14.94

.

2016

3,782

23.65 to 20.38


72,355 .


1.90 to 0.45

2.56

11.74 to 10.13

.

2015

3,228

21.16 to 18.51


55,740 .


1.90 to 0.45

1.76

-8.23 to -9.55

.

.

.

.

.

..

.


.

International Value Trust Series II(*)

2019

2,030

25.69 to 15.24


44,182 .


2.05 to 1.00

2.55

11.01 to 9.86

.

2018

2,251

23.39 to 13.72


44,427 .


2.05 to 1.00

2.17

-16.02 to -16.90

.

2017

2,587

28.15 to 16.34


61,335 .


2.05 to 1.00

1.58

15.72 to 14.51

.

2016

3,078

24.58 to 14.12


63,599 .


2.05 to 1.00

2.25

10.83 to 9.67

.

2015

2,780

22.41 to 12.74


51,915 .


2.05 to 1.00

1.48

-8.86 to -9.82

.

.

.

.

.

..

.


.

Investment Quality Bond Trust Series I(*)

2019

5,736

32.24 to 20.78


120,544 .


1.90 to 0.45

2.51

8.87 to 7.31

.

2018

6,011

29.62 to 19.36


116,517 .


1.90 to 0.45

2.69

-1.26 to -2.69

.

2017

6,868

30.00 to 19.90


135,673 .


1.90 to 0.45

2.57

4.14 to 2.64

.

2016

7,267

28.80 to 19.39


139,695 .


1.90 to 0.45

2.19

3.82 to 2.33

.

2015

7,725

27.74 to 18.94


144,236 .


1.90 to 0.45

1.80

-1.26 to -2.68

.

.

.

.

.

..

.


.

Investment Quality Bond Trust Series II(*)

2019

3,225

17.55 to 13.64


62,380 .


2.05 to 0.35

2.34

8.77 to 6.93

.

2018

3,237

16.41 to 12.54


58,447 .


2.05 to 0.35

2.49

-1.27 to -2.95

.

2017

3,685

16.91 to 12.70


68,204 .


2.05 to 0.35

2.46

3.94 to 2.19

.

2016

3,793

16.54 to 12.21


68,484 .


2.05 to 0.80

1.95

1.97 to -2.34

73 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,





For the years and periods ended December 31,



Units

Unit Fair Value


Assets

Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)


(000s)

Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Investment Quality Bond Trust Series II(*)

2015

4,206

$ 16.23 to $ 12.33


$ 74,512 .


2.05 % to 1.00 %

1.60 %

-2.00 % to -3.03 %

.

.

.

.

.

..


.

.

Lifestyle Aggressive Portfolio Series I(*)

2019

149

18.85 to 18.46


2,787 .


1.75 to 1.40

1.63

25.24 to 24.80

.

2018

142

15.05 to 14.79


2,127 .


1.75 to 1.40

1.71

-10.12 to -10.44

.

2017

136

16.75 to 16.51


2,270 .


1.75 to 1.40

1.34

20.10 to 19.68

.

2016

206

13.94 to 13.80


2,852 .


1.75 to 1.40

2.49

8.03 to 7.65

.

2015

122

12.91 to 12.82


1,566 .


1.75 to 1.40

2.49

-2.92 to -3.26

.

.

.

.

.

..


.

.

Lifestyle Aggressive Portfolio Series II(*)

2019

352

19.08 to 18.07


6,475 .


1.90 to 1.00

1.41

25.52 to 24.40

.

2018

343

15.20 to 14.52


5,048 .


1.90 to 1.00

1.52

-9.96 to -10.77

.

2017

332

16.88 to 16.28


5,455 .


1.90 to 1.00

1.49

20.36 to 19.28

.

2016

325

14.03 to 13.65


4,472 .


1.90 to 1.00

1.57

8.26 to 7.29

.

2015

322

12.96 to 12.72


4,109 .


1.90 to 1.00

1.65

-2.73 to -3.60

.

.

.

.

.

..


.

.

Lifestyle Balanced Portfolio Series I(*)

2019

1,640

17.14 to 16.03


27,494 .


1.90 to 0.80

2.06

16.80 to 15.52

.

2018

1,518

14.68 to 13.88


21,831 .


1.90 to 0.80

2.32

-5.13 to -6.17

.

2017

1,482

15.47 to 14.79


22,597 .


1.90 to 0.80

2.67

11.42 to 10.21

.

2016

1,142

13.88 to 13.42


15,651 .


1.90 to 0.80

2.45

5.26 to 4.11

.

2015

1,039

13.19 to 12.89


13,587 .


1.90 to 0.80

2.64

-0.75 to -1.83

.

.

.

.

.

..


.

.

Lifestyle Balanced Portfolio Series II(*)

2019

31,282

17.40 to 15.69


553,245 .


2.05 to 0.35

1.76

17.15 to 15.18

.

2018

31,343

14.85 to 13.63


477,792 .


2.05 to 0.35

1.97

-4.96 to -6.57

.

2017

35,280

15.63 to 14.58


575,485 .


2.05 to 0.35

1.99

11.77 to 9.89

.

2016

36,267

13.98 to 13.27


536,198 .


2.05 to 0.35

2.13

5.52 to 3.74

.

2015

34,915

13.25 to 12.79


501,437 .


2.05 to 0.35

2.25

-0.57 to -2.25

.

.

.

.

.

..


.

.

Lifestyle Conservative Portfolio Series I(*)

2019

626

15.55 to 14.54


9,491 .


1.90 to 0.80

2.09

11.56 to 10.34

.

2018

632

13.94 to 13.18


8,598 .


1.90 to 0.80

2.50

-2.76 to -3.83

.

2017

574

14.33 to 13.71


8,059 .


1.90 to 0.80

3.22

6.11 to 4.95

.

2016

397

13.51 to 13.06


5,295 .


1.90 to 0.80

2.85

3.56 to 2.42

.

2015

360

13.04 to 12.79


4,648 .


1.75 to 0.80

3.26

-0.63 to -1.57

.

.

.

.

.

..


.

.

Lifestyle Conservative Portfolio Series II(*)

2019

7,165

15.78 to 14.23


110,661 .


2.05 to 0.35

2.01

11.83 to 9.95

.

2018

7,532

14.11 to 12.94


105,253 .


2.05 to 0.35

2.48

-2.51 to -4.16

.

2017

6,606

14.47 to 13.51


96,082 .


2.05 to 0.35

2.22

6.37 to 4.58

.

2016

7,345

13.61 to 12.91


101,444 .


2.05 to 0.35

2.35

3.81 to 2.06

.

2015

7,130

13.11 to 12.65


96,548 .


2.05 to 0.35

2.60

-0.38 to -2.06

.

.

.

.

.

..


.

.

Lifestyle Growth Portfolio Series I(*)

2019

11,476

18.26 to 17.08


207,532 .


1.90 to 0.80

1.79

20.49 to 19.17

.

2018

12,842

15.15 to 14.33


192,754 .


1.90 to 0.80

2.08

-6.87 to -7.89

.

2017

13,985

16.27 to 15.56


225,786 .


1.90 to 0.80

3.78

15.21 to 13.96

.

2016

5,512

14.12 to 13.65


77,271 .


1.90 to 0.80

3.92

6.38 to 5.21

.

2015

1,892

13.27 to 12.98


24,955 .


1.90 to 0.80

2.32

-0.91 to -2.00

.

.

.

.

.

..


.

.

Lifestyle Growth Portfolio Series II(*)

2019

266,955

18.54 to 16.72


4,925,106 .


2.05 to 0.35

1.57

20.78 to 18.74

.

2018

299,274

15.35 to 14.08


4,608,995 .


2.05 to 0.35

1.83

-6.64 to -8.22

.

2017

340,524

16.44 to 15.34


5,694,619 .


2.05 to 0.35

3.06

15.49 to 13.55

.

2016

157,663

14.23 to 13.51


2,337,397 .


2.05 to 0.35

2.54

6.64 to 4.85

.

2015

95,432

13.35 to 12.89


1,376,978 .


2.05 to 0.35

2.06

-0.60 to -2.27

.

.

.

.

.

..


.

.

Lifestyle Growth Portfolio Series NAV(*)

2019

405

14.25 to 14.13


6,145 .


1.60 to 1.20

1.78

20.07 to 19.59

.

2018

474

11.87 to 11.81


5,968 .


1.60 to 1.20

2.15

-7.20 to -7.57

.

2017

509

12.79 to 12.78


6,909 .


1.60 to 1.20

10.66

2.33 to 2.26

.

.

.

.

.

..


.

.

Lifestyle Moderate Portfolio Series I(*)

2019

569

16.59 to 15.51


9,198 .


1.90 to 0.80

2.17

15.04 to 13.79

.

2018

548

14.42 to 13.63


7,725 .


1.90 to 0.80

2.65

-4.35 to -5.40

.

2017

518

15.07 to 14.41


7,686 .


1.90 to 0.80

2.39

9.55 to 8.36

.

2016

473

13.76 to 13.30


6,422 .


1.90 to 0.80

2.75

4.66 to 3.51

.

2015

367

13.15 to 12.85


4,780 .


1.90 to 0.80

2.87

-0.70 to -1.79

.

.

.

.

.

..


.

.

Lifestyle Moderate Portfolio Series II(*)

2019

9,979

16.85 to 15.20


170,456 .


2.05 to 0.35

1.80

15.31 to 13.37

.

2018

9,928

14.61 to 13.41


148,770 .


2.05 to 0.35

2.04

-4.11 to -5.74

.

2017

10,894

15.24 to 14.22


172,970 .


2.05 to 0.35

2.10

9.89 to 8.04

.

2016

11,299

13.87 to 13.16


165,570 .


2.05 to 0.35

2.16

4.91 to 3.14

.

2015

11,425

13.22 to 12.76


163,275 .


2.05 to 0.35

2.27

-0.45 to -2.13

.

.

.

.

.

..


.

.

Managed Volatility Aggressive Portfolio Series I(*)

2019

1,529

29.05 to 24.22


41,517 .


1.90 to 0.45

1.27

20.24 to 18.51

.

2018

1,784

24.16 to 20.43


40,513 .


1.90 to 0.45

1.88

-8.87 to -10.19

.

2017

2,163

26.51 to 22.75


54,573 .


1.90 to 0.45

1.65

22.27 to 20.52

.

2016

2,558

21.68 to 18.88


53,179 .


1.90 to 0.45

1.55

1.50 to 0.04

.

2015

2,986

21.36 to 18.87


61,877 .


1.90 to 0.45

1.82

-6.27 to -7.62

.

.

.

.

.

..


.

.

Managed Volatility Aggressive Portfolio Series II(*)

2019

2,564

30.01 to 19.68


66,468 .


2.05 to 1.00

1.10

19.43 to 18.18

.

2018

2,910

25.39 to 16.48


63,255 .


2.05 to 1.00

1.71

-9.53 to -10.48

.

2017

3,403

28.37 to 18.21


82,147 .


2.05 to 1.00

1.47

21.35 to 20.09

.

2016

4,068

23.62 to 15.01


81,402 .


2.05 to 1.00

1.36

0.65 to -0.40

.

2015

4,830

23.72 to 14.91


96,527 .


2.05 to 1.00

1.65

-6.99 to -7.96

.

.

.

.

.

..


.

.

74 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,




For the years and periods ended December 31,



Units

Unit Fair Value

Assets



Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)

(000s)



Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Managed Volatility Balanced Portfolio Series I(*)

2019

15,262

$ 34.49 to $ 24.54

$ 380,724 .


1.90 % to 0.45 %

1.92 %

17.39 % to 15.70 %

.

2018

17,257

29.38 to 21.21

370,157 .


1.90 to 0.45

2.19

-5.31 to -6.69

.

2017

19,485

31.03 to 22.72

446,882 .


1.90 to 0.45

2.12

13.62 to 11.99

.

2016

22,184

27.31 to 20.29

452,285 .


1.90 to 0.45

2.01

4.32 to 2.82

.

2015

25,247

26.18 to 19.73

499,014 .


1.90 to 0.45

2.28

-2.69 to -4.09

.

.

.

.

.

..


.

.

Managed Volatility Balanced Portfolio Series II(*)

2019

208,520

25.76 to 20.76

4,759,115 .


2.05 to 0.35

1.73

17.32 to 15.34

.

2018

239,171

22.34 to 17.69

4,704,815 .


2.05 to 0.35

2.01

-5.37 to -6.97

.

2017

272,743

24.01 to 18.70

5,741,379 .


2.05 to 0.35

1.94

13.43 to 11.52

.

2016

308,429

21.53 to 16.48

5,812,156 .


2.05 to 0.35

1.83

4.25 to 2.49

.

2015

345,536

21.01 to 15.81

6,388,484 .


2.05 to 0.35

2.10

-2.73 to -4.37

.

.

.

.

.

..


.

.

Managed Volatility Conservative Portfolio Series I(*)

2019

3,915

34.57 to 22.27

93,727 .


1.90 to 0.45

2.30

12.87 to 11.25

.

2018

4,417

30.63 to 20.02

94,415 .


1.90 to 0.45

2.47

-2.62 to -4.03

.

2017

5,110

31.45 to 20.86

113,494 .


1.90 to 0.45

2.40

7.33 to 5.79

.

2016

5,842

29.30 to 19.71

122,691 .


1.90 to 0.45

2.33

4.11 to 2.61

.

2015

6,324

28.14 to 19.21

128,980 .


1.90 to 0.45

2.43

-0.40 to -1.84

.

.

.

.

.

..


.

.

Managed Volatility Conservative Portfolio Series II(*)

2019

42,135

20.09 to 16.54

845,498 .


2.10 to 0.35

2.11

12.78 to 10.82

.

2018

48,164

17.82 to 14.93

865,542 .


2.10 to 0.35

2.29

-2.74 to -4.43

.

2017

56,529

18.32 to 15.62

1,057,774 .


2.10 to 0.35

2.20

7.29 to 5.43

.

2016

65,943

17.07 to 14.81

1,177,865 .


2.10 to 0.35

2.11

3.95 to 2.15

.

2015

71,826

16.42 to 14.50

1,280,720 .


2.10 to 0.35

2.27

-0.50 to -2.23

.

.

.

.

.

..


.

.

Managed Volatility Growth Portfolio Series I(*)

2019

16,744

31.92 to 24.20

398,918 .


1.90 to 0.45

1.70

19.02 to 17.31

.

2018

18,851

26.82 to 20.63

380,438 .


1.90 to 0.45

2.05

-6.97 to -8.31

.

2017

21,052

28.83 to 22.50

461,475 .


1.90 to 0.45

1.93

18.06 to 16.37

.

2016

23,895

24.42 to 19.33

448,830 .


1.90 to 0.45

1.80

2.87 to 1.39

.

2015

26,636

23.73 to 19.07

493,044 .


1.90 to 0.45

2.08

-4.96 to -6.33

.

.

.

.

.

..


.

.

Managed Volatility Growth Portfolio Series II(*)

2019

296,881

20.80 to 20.60

6,896,471 .


2.10 to 0.35

1.48

18.90 to 16.84

.

2018

339,906

17.80 to 17.33

6,715,509 .


2.10 to 0.35

1.85

-7.03 to -8.65

.

2017

384,257

19.49 to 18.63

8,258,711 .


2.10 to 0.35

1.75

17.94 to 15.90

.

2016

429,283

16.82 to 15.80

7,922,154 .


2.10 to 0.35

1.61

2.78 to 1.00

.

2015

484,650

16.65 to 15.37

8,822,906 .


2.10 to 0.35

1.89

-5.15 to -6.79

.

.

.

.

.

..


.

.

Managed Volatility Growth Portfolio Series NAV(*)

2019

20

23.22 to 23.22

459

.


1.20 to 1.20

1.83

18.25 to 18.25

.

2018

21

19.64 to 19.64

408

.


1.20 to 1.20

2.20

-7.68 to -7.68

.

2017

22

21.27 to 21.27

463

.


1.20 to 1.20

2.08

17.30 to 17.30

.

2016

23

18.14 to 18.14

415

.


1.20 to 1.20

1.68

2.15 to 2.15

.

2015

36

17.75 to 17.75

648

.


1.20 to 1.20

2.25

-5.69 to -5.69

.

.

.

.

.

..


.

.

Managed Volatility Moderate Portfolio Series I(*)

2019

5,472

35.91 to 24.28

141,680 .


1.90 to 0.45

2.04

16.20 to 14.52

.

2018

6,227

30.90 to 21.20

140,002 .


1.90 to 0.45

2.30

-4.42 to -5.80

.

2017

7,152

32.33 to 22.51

170,589 .


1.90 to 0.45

2.23

11.38 to 9.78

.

2016

8,026

29.03 to 20.50

173,313 .


1.90 to 0.45

2.08

4.82 to 3.31

.

2015

8,859

27.69 to 19.84

185,318 .


1.90 to 0.45

2.38

-1.36 to -2.78

.

.

.

.

.

..


.

.

Managed Volatility Moderate Portfolio Series II(*)

2019

67,001

23.84 to 21.53

1,476,853 .


2.05 to 0.35

1.85

16.02 to 14.06

.

2018

77,232

20.90 to 18.56

1,481,941 .


2.05 to 0.35

2.14

-4.46 to -6.08

.

2017

88,427

22.25 to 19.42

1,798,772 .


2.05 to 0.35

2.04

11.26 to 9.39

.

2016

100,351

20.34 to 17.46

1,869,034 .


2.05 to 0.35

1.89

4.75 to 2.99

.

2015

110,160

19.75 to 16.67

2,024,903 .


2.05 to 0.35

2.18

-1.47 to -3.13

.

.

.

.

.

..


.

.

Mid Cap Index Trust Series I(*)

2019

1,882

58.04 to 42.11

83,184 .


1.90 to 0.45

1.12

25.02 to 23.22

.

2018

2,156

46.42 to 34.17

76,810 .


1.90 to 0.45

1.08

-11.86 to -13.13

.

2017

2,410

52.67 to 39.34

98,702 .


1.90 to 0.45

0.70

15.29 to 13.64

.

2016

833

45.68 to 34.62

31,408 .


1.90 to 0.45

1.19

19.57 to 17.85

.

2015

906

38.20 to 29.37

28,899 .


1.90 to 0.45

0.99

-3.03 to -4.43

.

.

.

.

.

..


.

.

Mid Cap Index Trust Series II(*)

2019

1,468

46.80 to 25.67

60,114 .


2.05 to 1.00

0.91

24.19 to 22.89

.

2018

1,720

41.05 to 38.08

57,031 .


2.05 to 0.45

0.87

-12.06 to -13.46

.

2017

2,048

46.68 to 44.01

78,243 .


2.05 to 0.45

0.29

14.99 to 13.17

.

2016

1,726

40.59 to 38.89

58,289 .


2.05 to 0.45

0.99

19.38 to 17.49

.

2015

1,870

34.00 to 33.10

53,499 .


2.05 to 0.45

0.79

-3.24 to -4.77

.

.

.

.

.

..


.

.

Mid Cap Stock Trust Series I(*)

2019

3,150

56.57 to 49.16

131,034 .


1.90 to 0.45

0.00

33.92 to 31.99

.

2018

3,593

42.24 to 37.25

112,151 .


1.90 to 0.45

0.00

-2.00 to -3.42

.

2017

4,140

43.10 to 38.57

133,041 .


1.90 to 0.45

0.00

27.96 to 26.13

.

2016

4,809

33.68 to 30.58

121,359 .


1.90 to 0.45

0.00

0.14 to -1.30

.

2015

5,402

33.64 to 30.98

137,975 .


1.90 to 0.45

0.00

2.53 to 1.06

.

.

.

.

.

..


.

.

Mid Cap Stock Trust Series II(*)

2019

1,492

54.99 to 30.69

74,431 .


2.05 to 1.00

0.00

32.91 to 31.53

.

2018

1,679

41.81 to 23.09

63,587 .


2.05 to 1.00

0.00

-2.69 to -3.72

.

2017

1,857

43.43 to 23.73

72,596 .


2.05 to 1.00

0.00

26.99 to 25.67

.

2016

2,116

34.56 to 18.69

65,594 .


2.05 to 1.00

0.00

-0.59 to -1.63

.

2015

2,503

35.13 to 18.80

78,719 .


2.05 to 1.00

0.00

1.73 to 0.66

.

.

.

.

.

..


.

.

75 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,





For the years and periods ended December 31,



Units

Unit Fair Value


Assets

Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)


(000s)

Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Mid Value Trust Series I(*)

2019

1,198

$ 42.42 to $ 33.40


$ 43,106 .


1.90 % to 0.80 %

1.10 %

18.58 % to 17.29 %

.

2018

1,332

35.77 to 28.47


40,685 .


1.90 to 0.80

0.75

-11.56 to -12.53

.

2017

1,541

40.44 to 32.55


53,462 .


1.90 to 0.80

0.96

10.55 to 9.34

.

2016

1,772

36.58 to 29.77


55,945 .


1.90 to 0.80

1.13

23.03 to 21.69

.

2015

1,952

29.73 to 24.46


50,465 .


1.90 to 0.80

1.07

-4.20 to -5.25

.

.

.

.

.

..


.

.

Mid Value Trust Series II(*)

2019

1,272

31.97 to 15.44


43,146 .


2.05 to 1.00

0.88

17.97 to 16.74

.

2018

1,448

27.39 to 13.09


41,931 .


2.05 to 1.00

0.56

-11.82 to -12.74

.

2017

1,623

31.39 to 14.84


53,486 .


2.05 to 1.00

0.75

10.10 to 8.96

.

2016

1,917

28.81 to 13.48


58,010 .


2.05 to 1.00

0.94

21.26 to 7.83

.

2015

2,069

25.46 to 23.76


51,504 .


2.05 to 1.40

0.84

-4.98 to -5.60

.

.

.

.

.

..


.

.

Money Market Trust Series I(*)

2019

1,613

16.31 to 10.88


23,529 .


1.90 to 0.45

1.93

1.48 to 0.02

.

2018

1,993

16.08 to 10.88


28,845 .


1.90 to 0.45

1.52

1.09 to -0.38

.

2017

2,435

15.90 to 10.92


34,960 .


1.90 to 0.45

0.58

0.14 to -1.30

.

2016

3,042

15.88 to 11.06


43,632 .


1.90 to 0.45

0.07

-0.38 to -1.81

.

2015

3,751

15.94 to 11.26


55,030 .


1.90 to 0.45

0.00

-0.45 to -1.88

.

.

.

.

.

..


.

.

Money Market Trust Series II(*)

2019

9,750

12.53 to 10.51


111,046 .


2.05 to 0.35

1.73

1.38 to -0.33

.

2018

11,460

12.36 to 10.54


130,219 .


2.05 to 0.35

1.31

0.98 to -0.73

.

2017

14,059

12.24 to 10.62


160,059 .


2.05 to 0.35

0.38

0.04 to -1.64

.

2016

17,027

12.24 to 10.80


195,792 .


2.05 to 0.35

0.00

-0.35 to -2.03

.

2015

20,096

12.28 to 11.02


234,593 .


2.05 to 0.35

0.00

-0.35 to -2.03

.

.

.

.

.

..


.

.

Money-Market Trust Series NAV(*)

2019

376

12.39 to 12.10


4,645 .


2.05 to 1.40

1.97

0.57 to -0.08

.

2018

406

12.32 to 12.11


4,998 .


2.05 to 1.40

1.57

0.17 to -0.48

.

2017

503

12.30 to 12.17


6,185 .


2.05 to 1.40

0.63

-0.75 to -1.40

.

2016

612

12.40 to 12.34


7,595 .


2.05 to 1.40

0.15

-0.83 to -1.26

.

.

.

.

.

..


.

.

Mutual Shares Trust Series I(*)

2019

6,758

22.90 to 20.95


152,713 .


1.55 to 0.80

1.94

22.14 to 21.23

.

2018

7,754

18.75 to 17.28


143,606 .


1.55 to 0.80

1.30

-9.69 to -10.37

.

2017

8,335

20.76 to 19.28


171,128 .


1.55 to 0.80

5.64

7.46 to 6.66

.

2016

8,991

19.32 to 18.08


171,995 .


1.55 to 0.80

6.47

15.78 to 14.91

.

2015

10,364

16.69 to 15.73


171,427 .


1.55 to 0.80

2.03

-5.44 to -6.15

.

.

.

.

.

..


.

.

PIMCO All Asset

2019

367

25.34 to 19.72


7,849 .


2.05 to 0.45

2.57

10.94 to 9.18

.

2018

412

22.84 to 18.06


8,030 .


2.05 to 0.45

2.70

-6.02 to -7.52

.

2017

569

24.30 to 19.53


11,929 .


2.05 to 0.45

4.21

12.68 to 10.90

.

2016

665

21.57 to 17.61


12,494 .


2.05 to 0.45

2.18

12.08 to 10.30

.

2015

819

19.24 to 15.97


13,886 .


2.05 to 0.45

2.75

-9.72 to -11.16

.

.

.

.

.

..


.

.

Real Estate Securities Trust Series I(*)

2019

476

69.14 to 54.22


30,587 .


1.90 to 0.45

2.08

28.82 to 26.97

.

2018

535

53.67 to 42.70


26,940 .


1.90 to 0.45

1.64

-3.90 to -5.29

.

2017

637

55.85 to 45.09


33,691 .


1.90 to 0.45

0.50

5.76 to 4.24

.

2016

753

52.80 to 43.25


37,894 .


1.90 to 0.45

3.29

6.44 to 4.91

.

2015

837

49.61 to 41.23


40,017 .


1.90 to 0.45

1.78

2.21 to 0.74

.

.

.

.

.

..


.

.

Real Estate Securities Trust Series II(*)

2019

730

64.10 to 47.21


34,624 .


2.05 to 0.45

1.91

28.50 to 26.47

.

2018

804

49.88 to 37.33


30,200 .


2.05 to 0.45

1.62

-4.08 to -5.61

.

2017

967

52.00 to 39.55


38,440 .


2.05 to 0.45

0.35

5.58 to 3.91

.

2016

1,160

49.25 to 38.06


43,998 .


2.05 to 0.45

3.06

6.21 to 4.53

.

2015

1,294

46.37 to 36.41


46,932 .


2.05 to 0.45

1.58

2.00 to 0.39

.

.

.

.

.

..


.

.

Science & Technology Trust Series I(*)

2019

2,201

52.73 to 35.66


101,864 .


1.90 to 0.45

0.12

37.44 to 35.46

.

2018

2,511

38.37 to 26.33


85,293 .


1.90 to 0.45

0.00

-1.06 to -2.49

.

2017

2,859

38.78 to 27.00


98,953 .


1.90 to 0.45

0.05

40.50 to 38.48

.

2016

3,224

27.60 to 19.50


79,957 .


1.90 to 0.45

0.00

7.90 to 6.35

.

2015

3,699

25.58 to 18.33


85,966 .


1.90 to 0.45

0.00

6.21 to 4.68

.

.

.

.

.

..


.

.

Science & Technology Trust Series II(*)

2019

929

61.75 to 42.48


49,722 .


2.05 to 1.00

0.00

36.37 to 34.95

.

2018

1,081

45.76 to 31.15


42,537 .


2.05 to 1.00

0.00

-1.78 to -2.81

.

2017

1,105

47.08 to 31.72


44,570 .


2.05 to 1.00

0.00

39.42 to 37.97

.

2016

1,227

34.12 to 22.75


35,527 .


2.05 to 1.00

0.00

7.08 to 5.96

.

2015

1,410

32.20 to 21.25


38,509 .


2.05 to 1.00

0.00

5.43 to 4.33

.

.

.

.

.

..


.

.

Select Bond Trust Series I(*)

2019

11,230

15.17 to 14.27


168,847 .


1.55 to 0.80

2.57

8.08 to 7.27

.

2018

11,695

14.04 to 13.30


162,858 .


1.55 to 0.80

2.75

-1.23 to -1.97

.

2017

13,425

14.21 to 13.57


189,486 .


1.55 to 0.80

2.73

2.85 to 2.08

.

2016

13,920

13.82 to 13.29


191,260 .


1.55 to 0.80

2.86

2.24 to 1.48

.

2015

14,570

13.52 to 13.10


196,023 .


1.55 to 0.80

2.77

-0.55 to -1.30

.

.

.

.

.

..


.

.

Select Bond Trust Series II(*)

2019

26,549

13.85 to 13.48


369,066 .


2.05 to 0.80

2.33

7.86 to 6.52

.

2018

35,086

12.84 to 12.65


455,780 .


2.05 to 0.80

2.59

-1.43 to -2.66

.

2017

32,360

13.03 to 13.00


428,602 .


2.05 to 0.80

2.54

2.64 to 1.37

.

2016

34,035

12.82 to 12.69


442,267 .


2.05 to 0.80

2.61

2.03 to 0.77

.

2015

34,819

12.73 to 12.44


446,363 .


2.05 to 0.80

2.65

-0.75 to -1.99

.

.

.

.

.

..


.

.

Short Term Government Income Trust Series I(*)

2019

1,869

13.49 to 11.73


23,038 .


1.90 to 0.45

1.64

2.92 to 1.44

76 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,




For the years and periods ended December 31,



Units

Unit Fair Value

Assets



Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)

(000s)



Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Short Term Government Income Trust Series I(*)

2018

2,049

$ 13.11 to $ 11.56

$ 24,777 .


1.90 % to 0.45 %

2.07 %

0.38 % to -1.07 %

.

2017

2,229

13.06 to 11.68

27,106 .


1.90 to 0.45

1.39

0.12 to -1.32

.

2016

2,450

13.04 to 11.84

30,066 .


1.90 to 0.45

1.54

0.12 to -1.32

.

2015

2,697

13.03 to 12.00

33,354 .


1.90 to 0.45

1.70

0.19 to -1.25

.

.

.

.

.

..

.


.

Short Term Government Income Trust Series II(*)

2019

1,683

12.20 to 11.34

19,947 .


2.05 to 1.00

1.43

2.15 to 1.09

.

2018

1,871

11.95 to 11.21

21,847 .


2.05 to 1.00

1.78

-0.37 to -1.42

.

2017

1,988

11.99 to 11.38

23,433 .


2.05 to 1.00

1.14

-0.63 to -1.66

.

2016

2,420

12.07 to 11.57

28,883 .


2.05 to 1.00

1.39

-0.55 to -1.59

.

2015

2,504

12.13 to 11.75

30,243 .


2.05 to 1.00

1.56

-0.64 to -1.68

.

.

.

.

.

..

.


.

Small Cap Index Trust Series I(*)

2019

334

36.12 to 35.33

11,902 .


1.90 to 1.40

0.97

23.31 to 22.69

.

2018

394

29.29 to 28.79

11,426 .


1.90 to 1.40

0.94

-12.66 to -13.10

.

2017

419

33.54 to 33.14

13,903 .


1.90 to 1.40

0.43

12.80 to 12.24

.

2016

468

29.73 to 29.52

13,815 .


1.90 to 1.40

1.15

19.29 to 18.70

.

2015

478

24.92 to 24.87

11,851 .


1.90 to 1.40

0.97

-5.90 to -6.37

.

.

.

.

.

..

.


.

Small Cap Index Trust Series II(*)

2019

824

43.64 to 40.78

29,572 .


2.05 to 0.45

0.77

24.22 to 22.24

.

2018

939

35.13 to 33.36

27,410 .


2.05 to 0.45

0.71

-11.95 to -13.36

.

2017

1,077

39.90 to 38.50

36,107 .


2.05 to 0.45

0.24

13.67 to 11.87

.

2016

1,276

35.10 to 34.42

38,444 .


2.05 to 0.45

0.95

20.16 to 18.26

.

2015

1,360

29.21 to 29.10

34,539 .


2.05 to 0.45

0.77

-5.22 to -6.73

.

.

.

.

.

..

.


.

Small Cap Opportunities Trust Series I(*)

2019

765

49.64 to 38.98

31,997 .


1.90 to 0.45

0.39

24.97 to 23.17

.

2018

875

39.72 to 31.65

29,574 .


1.90 to 0.45

0.41

-14.23 to -15.48

.

2017

975

46.32 to 37.44

38,837 .


1.90 to 0.45

0.41

10.58 to 8.99

.

2016

1,113

41.89 to 34.36

40,503 .


1.90 to 0.45

0.46

18.93 to 17.22

.

2015

1,308

35.22 to 29.31

40,448 .


1.90 to 0.45

0.07

-5.59 to -6.95

.

.

.

.

.

..

.


.

Small Cap Opportunities Trust Series II(*)

2019

657

36.92 to 23.13

25,692 .


2.05 to 1.00

0.17

24.01 to 22.71

.

2018

754

30.08 to 18.65

23,803 .


2.05 to 1.00

0.23

-14.88 to -15.78

.

2017

854

35.72 to 21.91

31,838 .


2.05 to 1.00

0.23

9.76 to 8.62

.

2016

941

32.88 to 19.96

32,081 .


2.05 to 1.00

0.26

18.06 to 16.83

.

2015

1,126

28.15 to 16.91

32,505 .


2.05 to 1.00

0.00

-6.28 to -7.26

.

.

.

.

.

..

.


.

Small Cap Stock Trust Series I(*)

2019

26

32.36 to 29.60

825

.


1.55 to 0.80

0.00

36.92 to 35.90

.

2018

27

23.64 to 21.78

637

.


1.55 to 0.80

0.00

-5.95 to -6.66

.

2017

29

25.13 to 23.34

718

.


1.55 to 0.80

0.00

25.46 to 24.53

.

2016

36

20.03 to 18.74

712

.


1.55 to 0.80

0.00

1.48 to 0.72

.

2015

31

19.74 to 18.61

616

.


1.55 to 0.80

0.00

-9.58 to -10.26

.

.

.

.

.

..

.


.

Small Cap Stock Trust Series II(*)

2019

791

48.37 to 38.25

31,805 .


2.05 to 0.45

0.00

37.13 to 34.95

.

2018

866

35.28 to 28.34

25,610 .


2.05 to 0.45

0.00

-5.87 to -7.37

.

2017

887

37.48 to 30.60

28,001 .


2.05 to 0.45

0.00

25.71 to 23.72

.

2016

999

29.81 to 24.73

25,360 .


2.05 to 0.45

0.00

1.68 to 0.07

.

2015

1,168

29.32 to 24.72

29,370 .


2.05 to 0.45

0.00

-9.46 to -10.90

.

.

.

.

.

..

.


.

Small Cap Value Trust Series I(*)

2019

22

33.72 to 30.84

739

.


1.55 to 0.80

0.59

25.51 to 24.58

.

2018

23

26.86 to 24.76

617

.


1.55 to 0.80

0.68

-13.20 to -13.85

.

2017

24

30.95 to 28.74

727

.


1.55 to 0.80

0.93

2.91 to 2.14

.

2016

26

30.08 to 28.14

761

.


1.55 to 0.80

0.70

21.69 to 20.79

.

2015

29

24.71 to 23.29

699

.


1.55 to 0.80

0.46

-2.14 to -2.88

.

.

.

.

.

..

.


.

Small Cap Value Trust Series II(*)

2019

727

33.39 to 23.53

24,815 .


2.05 to 1.00

0.38

25.08 to 23.77

.

2018

825

26.98 to 18.82

22,710 .


2.05 to 1.00

0.45

-13.53 to -14.44

.

2017

1,004

31.53 to 21.76

32,188 .


2.05 to 1.00

0.72

2.47 to 1.40

.

2016

1,187

31.10 to 21.24

37,335 .


2.05 to 1.00

0.49

21.23 to 19.97

.

2015

1,254

25.92 to 17.52

32,752 .


2.05 to 1.00

0.24

-2.55 to -3.57

.

.

.

.

.

..

.


.

Small Company Value Trust Series I(*)

2019

765

50.94 to 44.91

38,287 .


1.90 to 1.40

0.85

23.78 to 23.16

.

2018

840

41.15 to 36.46

34,015 .


1.90 to 1.40

0.36

-14.16 to -14.59

.

2017

969

47.94 to 42.69

45,720 .


1.90 to 1.40

0.23

9.95 to 9.40

.

2016

1,134

43.61 to 39.02

48,702 .


1.90 to 1.40

0.77

30.48 to 29.83

.

2015

1,276

33.42 to 30.06

42,043 .


1.90 to 1.40

1.30

-6.91 to -7.38

.

.

.

.

.

..

.


.

Small Company Value Trust Series II(*)

2019

973

42.49 to 23.84

38,190 .


2.05 to 1.00

0.66

23.97 to 22.68

.

2018

1,082

34.63 to 19.23

34,596 .


2.05 to 1.00

0.17

-13.96 to -14.87

.

2017

1,224

40.68 to 22.35

45,916 .


2.05 to 1.00

0.21

10.15 to 9.01

.

2016

1,433

37.32 to 20.29

49,189 .


2.05 to 1.00

0.58

30.73 to 29.37

.

2015

1,591

28.85 to 15.52

41,844 .


2.05 to 1.00

0.94

-6.73 to -7.70

.

.

.

.

.

..

.


.

Strategic Income Opportunities Trust Series I(*)

2019

1,168

28.10 to 22.39

28,057 .


1.90 to 0.45

2.71

10.41 to 8.82

.

2018

1,319

25.45 to 20.58

28,929 .


1.90 to 0.45

3.60

-5.46 to -6.83

.

2017

1,590

26.92 to 22.08

37,169 .


1.90 to 0.45

3.10

5.12 to 3.61

.

2016

1,725

25.61 to 21.32

38,766 .


1.90 to 0.45

2.35

4.65 to 3.14

.

2015

1,924

24.47 to 20.67

41,768 .


1.90 to 0.45

2.38

0.76 to -0.69

.

.

.

.

.

..

.


.

Strategic Income Opportunities Trust Series II(*)

2019

1,383

21.48 to 14.97

30,786 .


2.05 to 1.00

2.50

9.65 to 8.50

77 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7. Unit Values (continued):


At December 31,





For the years and periods ended December 31,



Units

Unit Fair Value


Assets

Expense Ratio

Investment

Total Return

Sub-account

Year

(000s)

Highest to Lowest (a)


(000s)

Highest to Lowest (b)

Income Ratio (c)

Highest to Lowest (d)

Strategic Income Opportunities Trust Series II(*)

2018

1,489

$ 19.80 to $ 13.65


$ 30,584 .


2.05 % to 1.00 %

3.43 %

-6.23 % to -7.22 %

.

2017

1,748

21.34 to 14.56


38,635 .


2.05 to 1.00

2.91

4.32 to 3.24

.

2016

1,846

20.67 to 13.96


39,250 .


2.05 to 1.00

2.14

3.94 to 2.85

.

2015

2,111

20.09 to 13.43


43,541 .


2.05 to 1.00

2.20

0.01 to -1.04

.

.

.

.

.

..


.

.

Total Bond Market Series Trust NAV(*)

2019

6,564

14.00 to 13.26


91,184 .


1.55 to 0.80

2.30

7.44 to 6.63

.

2018

6,904

13.03 to 12.44


89,339 .


1.55 to 0.80

2.67

-1.04 to -1.79

.

2017

8,001

13.17 to 12.67


104,753 .


1.55 to 0.80

2.81

2.52 to 1.75

.

2016

8,492

12.84 to 12.45


108,577 .


1.55 to 0.80

2.63

1.63 to 0.87

.

2015

8,801

12.64 to 12.34


110,833 .


1.55 to 0.80

2.65

-0.50 to -1.24

.

.

.

.

.

..


.

.

Total Bond Market Trust Series II(*)

2019

4,043

14.10 to 12.53


52,973 .


2.10 to 0.45

2.12

7.54 to 5.78

.

2018

4,408

13.11 to 11.84


54,255 .


2.10 to 0.45

2.34

-0.94 to -2.57

.

2017

4,595

12.82 to 12.16


57,667 .


2.10 to 1.00

2.50

2.06 to 0.94

.

2016

5,640

12.56 to 12.04


69,701 .


2.10 to 1.00

2.39

1.17 to 0.06

.

2015

5,155

12.42 to 12.05


63,180 .


2.05 to 1.00

2.65

-0.94 to -1.98

.

.

.

.

.

..


.

.

Total Stock Market Index Trust Series I(*)

2019

1,486

36.07 to 33.26


44,393 .


1.90 to 0.45

1.54

29.05 to 27.19

.

2018

1,668

27.95 to 26.15


39,008 .


1.90 to 0.45

1.15

-6.13 to -7.49

.

2017

1,892

29.78 to 28.26


47,614 .


1.90 to 0.45

1.72

20.05 to 18.33

.

2016

501

23.89 to 21.17


10,728 .


1.90 to 1.40

1.43

10.82 to 10.27

.

2015

550

21.66 to 19.10


10,649 .


1.90 to 1.40

1.10

-2.02 to -2.51

.

.

.

.

.

..


.

.

Total Stock Market Index Trust Series II(*)

2019

967

40.76 to 18.71


36,134 .


2.05 to 1.00

1.35

28.12 to 26.78

.

2018

1,098

32.15 to 14.61


32,265 .


2.05 to 1.00

0.95

-6.86 to -7.84

.

2017

1,220

34.89 to 15.68


38,772 .


2.05 to 1.00

1.19

19.13 to 17.89

.

2016

1,153

29.59 to 13.16


31,020 .


2.05 to 1.00

1.25

9.88 to 5.30

.

2015

1,236

26.93 to 25.22


30,186 .


2.05 to 1.40

1.09

-2.21 to -2.85

.

.

.

.

.

..


.

.

Ultra Short Term Bond Trust Series I(*)

2019

775

12.35 to 11.51


9,489 .


1.55 to 0.80

1.63

2.29 to 1.53

.

2018

860

12.07 to 11.34


10,300 .


1.55 to 0.80

2.06

0.59 to -0.17

.

2017

728

12.00 to 11.35


8,671 .


1.55 to 0.80

1.65

-0.14 to -0.89

.

2016

906

12.02 to 11.46


10,817 .


1.55 to 0.80

1.65

-0.28 to -1.02

.

2015

771

12.05 to 11.57


9,255 .


1.55 to 0.80

1.36

-0.83 to -1.57

.

.

.

.

.

..


.

.

Ultra Short Term Bond Trust Series II(*)

2019

18,954

12.63 to 10.71


216,056 .


2.10 to 0.35

1.78

2.55 to 0.78

.

2018

15,671

12.31 to 10.63


176,623 .


2.10 to 0.35

1.53

0.84 to -0.92

.

2017

16,588

12.21 to 10.73


187,373 .


2.10 to 0.35

1.34

0.11 to -1.62

.

2016

21,661

12.20 to 10.90


246,916 .


2.10 to 0.35

1.36

-0.03 to -1.76

.

2015

19,420

12.20 to 11.10


223,573 .


2.10 to 0.35

1.26

-0.50 to -2.23

.

.

.

.

.

..


.

.

Value Opportunities

2019

33

148.61 to 41.87


2,961 .


1.80 to 1.40

1.54

26.98 to 26.47

.

2018

40

117.04 to 33.11


2,680 .


1.80 to 1.40

1.11

-7.84 to -8.21

.

2017

42

126.98 to 36.07


3,120 .


1.80 to 1.40

0.71

12.27 to 11.83

.

2016

53

113.10 to 32.25


3,310 .


1.80 to 1.40

0.10

21.74 to 21.25

.

2015

63

92.91 to 26.60


3,114 .


1.80 to 1.40

0.09

-8.06 to -8.43

78 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

7.Unit Values (continued):

(*)Sub-account that invests in affiliated Trust.

(a)As the unit fair value is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract unit values are not within the ranges presented.

(b)These ratios represent the annualized contract expenses of the separate account, consisting primarily of the items known as "Revenue from underlying fund (12b-1, STA, Other)" and "Revenue from Sub-account" (formerly referred to as the administrative maintenance charges and sales and service fees (AMC and SSF)). The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to unitholder accounts through the redemption of units and expenses of the underlying fund are excluded.

(c)These ratios represent the distributions from net investment income received by the sub-account from the underlying Portfolio, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against policyholder accounts either through the reductions in the unit values or the redemptions of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying Portfolio in which the sub-accounts invest.

(d)These ratios, represent the total return for the periods indicated, including changes in the value of the underlying Portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options indicated in footnote 1 with a date notation, if any, denote the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. For closed sub-accounts, the total return is calculated from the beginning of the reporting period to the date the sub-account closed. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

79 of 80

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2019

8. Diversification Requirements

The Internal Revenue Service has issued regulations under Section 817(h) of the Internal Revenue Code ("the Code"). Under the provisions of Section 817(h) of the Code, a Contract will not be treated as a variable annuity contract for federal tax purposes for any period for which the investments of the Account on which the contract is based are not adequately diversified. The Code provides that the "adequately diversified" requirement may be met if the underlying investments satisfy either a statutory safe harbor test or diversification requirement set forth in regulations issued by the Secretary of the Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and the Account will continue to meet such requirements.

9. Contract Charges

The expense ratio represents the contract expenses of the Account for the period indicated and includes only those expenses that are charged through a reduction of the unit value. Included in this category are mortality and expense charges, and the cost of any riders the policy holder has elected. These fees range between 0.35% and 2.10% of net assets of the sub-account depending on the type of contract. In addition, annual contract charges of up to $30 per policy are made through redemption of units.

80 of 80

Table of Contents
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
(1) Financial Statements of the Registrant, John Hancock Life Insurance Company (U.S.A.) Separate Account H. [FILED HEREWITH]
(2) Financial Statements of the Depositor, John Hancock Life Insurance Company (U.S.A.). [FILED HEREWITH]
(b) Exhibits
(1) (i) Resolution of the Board of Directors of Manufacturers Life Insurance Company (U.S.A.) establishing The Manufacturers Life Insurance Company Separate Account H—Incorporated by reference to Exhibit (1)(i) to pre-effective amendment no. 1 to this registration statement, file number 333-70728, filed January 2, 2002 (the “Pre-Effective Amendment”).
(2) Agreements for custody of securities and similar investments -NOT APPLICABLE.
(3) (i) Underwriting Agreement dated August 10, 1995—Incorporated by reference to Exhibit (b) (3) (i) to Form N-4, file number 033-76162, filed February 25, 1998.
(ii) Distribution and Servicing Agreement dated February 17, 2009, incorporated by reference to Exhibit 24(b) (3) (ii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(iii) General Agent and Broker Dealer Selling Agreement, incorporated by reference to Exhibit 24. (b) (3) (iii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(4) (i) (A) Form of Specimen Flexible Purchase Payment Individual Deferred Variable Annuity Contract, Non-Participating (v20/21)—Incorporated by reference to Exhibit (b) (4) (i) (A) to post-effective amendment no. 4 to registration statement on Form N-4 (file no. 33-76162) filed April 7, 1997.
(B) Form of Specimen Income Plus for Life Rider, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(C) Form of Specimen Income Plus for Life—Joint Life Rider, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(D) Form of Specimen Principal Plus for Life Rider, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(E) Form of Specimen Principal Plus for Life Plus Annual Automatic Step-up Rider, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(F) Form of Specimen Principal Returns Rider, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(G) Form of Specimen Annual Step Death Benefit Rider, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(ii) (B) Form of Specimen Flexible Purchase Payment Individual Deferred Variable Annuity Contract, Non-Participating (v7)—Incorporated by reference to Exhibit (b) (4) (i) (B) to post-effective amendment no. 4 to registration statement on Form N-4 (file no. 33-76162) filed April 7, 1997.
(1) Form of Specimen Death Benefit Endorsement to Flexible Purchase Payment Individual Deferred Variable Annuity Contract, Non-Participating (v7)—Previously filed as Exhibit (b) (4) (ii) (B) (1) to post-effective amendment no. 4 to Form N-4 (file no. 33-76162) filed February 25, 1998.
(2) Form of Specimen Endorsements to Contract (v7): (i) Individual Retirement Annuity Endorsement; (ii) Retirement Equity Act Endorsement; (iii) Tax-sheltered Annuity Endorsement; (iv) Qualified Plan Endorsement Section 401 Plans—Previously filed as Exhibit (b) (4) (ii) (B) (2) to post-effective amendment no. 4 to Form N-4 (file no. 33-76162) filed February 25, 1998.

 

(C) Form of Specimen Death Benefit Endorsement to Venture 3 Contract, Non-Participating—Previously filed as Exhibit (b) (4) (ii) (C) to post-effective amendment no. 4 to Form N-4 (file no. 33-76162) filed February 25, 1998.
(D) Form of Fixed Account Endorsement (v20/21)—Previously filed as Exhibit (b) (4) (ii) (E) to post-effective amendment no. 6 to Form N-4 (file no. 33-76162) filed March 1, 1999.
(E) Form of Roth Individual Retirement Annuity Endorsement—Previously filed as Exhibit (b) (4) (ii) (F) to post-effective amendment no. 6 to Form N-4 (file no. 33-76162) filed March 1, 1999.
(iii) Form of Guaranteed Income Rider (v20/21)—Previously filed as Exhibit (b) (4) (iii) to post-effective amendment no. 4 to Form N-4 (file no. 33-76162) filed February 25, 1998.
(iv) Form of Specimen Income Plus for Life (Quarterly Step-up Review) Rider (BR001NQ.08), incorporated by reference to Exhibit (b) (4) (iv) to Post-Effective Amendment No. 27 to this Registration Statement, File No. 333-70728, filed June 13, 2008.
(v) Form of Specimen Income Plus for Life (Quarterly Step-up Review) Rider (BR001Q.08), incorporated by reference to Exhibit (b) (4) (v) to Post-Effective Amendment No. 27 to this Registration Statement, File No. 333-70728, filed June 13, 2008
(vi) Form of Specimen Income Plus for Life (Quarterly Step-up Review) Rider (BR002NQ.08), incorporated by reference to Exhibit (b) (4) (vi) to Post-Effective Amendment No. 27 to this Registration Statement, File No. 333-70728, filed June 13, 2008.
(vii) Form of Specimen Income Plus for Life (Quarterly Step-up Review) Rider (BR002Q.08), incorporated by reference to Exhibit (b) (4) (vii) to Post-Effective Amendment No. 27 to this Registration Statement, File No. 333-70728, filed June 13, 2008.
(viii) Form of Specimen Income Plus for Life 5.09 single-life Rider (BR004Q.07), incorporated by reference to Exhibit 24(b) (4) (viii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(ix) Form of Specimen Income Plus for Life 5.09 single-life Rider (BR004NQ.07) ), incorporated by reference to Exhibit 24(b) (4) (ix) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(x) Form of Specimen Income Plus for Life joint-life 5.09 Rider (BR005Q.07) ), incorporated by reference to Exhibit 24(b) (4) (x) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(xi) Form of Specimen Income Plus for Life joint-life 5.09 Rider (BR005NQ.07) ), incorporated by reference to Exhibit 24(b) (4) (xi) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(xii) Form of Specimen Principal Plus for Life Rider Series Endorsement Terminating the Principal Plus for Life Rider and All In Force Guaranteed Minimum Death Benefits Provided Under Such Rider (END.PPFLOFFER 0719). [FILED HEREWITH]
(5) (i) Form of Specimen Application for Flexible Purchase Payment Individual Deferred Combination Fixed and Variable Annuity Contract, Non-Participating—Incorporated by reference to Exhibit (b) (5) (i) to post effective amendment 5 to file number 333-24657, filed February 28, 2000.
(ii) Form of Specimen Application for Flexible Purchase Payment Individual Deferred Combination Fixed and Variable Annuity Contract (VENTURE.APP.009.98)—Incorporated by reference to Exhibit (b) (5) (i) to post-effective amendment no. 3 to this registration statement, filed March 1, 1999.
(iii) Form of Specimen Flexible Payment Deferred Variable Annuity Application for Venture (APPVEN0507), incorporated by reference to Exhibit (b) (5) (iii) to Post-Effective Amendment No. 27 to this Registration Statement, File No. 333-70728, filed June 13, 2008.
(6) (i) Restated Articles of Redomestication of The Manufacturers Life Insurance Company (U.S.A.)—Incorporated by reference to Exhibit A(6) to the registration statement on Form S-6 filed July 20, 2000 (File No. 333-41814).
(ii) Certificate of Amendment to Certificate of Incorporation of the Company, Name Change July 1984— Incorporated by reference to Exhibit (3) (i) (a) to Form 10Q of The Manufacturers Life Insurance Company of North America, filed November 14, 1997.

 

(iii) Certificate of Amendment to Certificate of Incorporation of the Company changing its name to John Hancock Life Insurance Company (U.S.A.) effective January 1, 2005—Incorporated by reference to Exhibit (b) (6) (iii) to post-effective amendment no. 20 to this registration statement, filed May 1, 2007.
(iv) By-laws of The Manufacturers Life Insurance Company (U.S.A.)—Incorporated by reference to Exhibit A(6) (b) to the registration statement on Form S-6 filed July 20, 2000 (File No. 333-41814).
(v) Amendment to By-Laws reflecting the Company’s name change to John Hancock Life Insurance Company (U.S.A.) effective January 1, 2005—Incorporated by reference to Exhibit (b) (6) (v) to Post-Effective Amendment No. 20 to this registration statement, filed May 1, 2007.
(vi) Amended and Restated By-Laws of John Hancock Life Insurance Company (U.S.A.) effective June 15, 2010, incorporated by reference to Exhibit 24 (b) (6) (vi) to Post-Effective Amendment No. 35 to this Registration Statement, File No. 333-70728, filed November 8, 2010.
(vii) Amended and Restated Articles of Redomestication and Articles of Incorporation of John Hancock Life Insurance Company (U.S.A.) effective July 26, 2010, incorporated by referenced to Exhibit 24 (b) (6) (vii) to Post-Effective Amendment No. 35 to this Registration Statement File No. 333-70728, filed November 8, 2010.
(viii) Amended and Restated By-Laws of John Hancock Life Insurance Company (U.S.A.) dated October 23, 2012, incorporated by reference to Exhibit 24(b)(6)(viii) to Post-Effective Amendment No. 6 to Registration Statement File No. 333-162245, filed January 18, 2013.
(7) (a) (i) Guaranteed Death Benefit Reinsurance Agreement for Ven 3 contracts between John Hancock Life Insurance Company (U.S.A.) (formerly North American Security Life Insurance Company) and Connecticut General Life Insurance Company (“CIGNA”), effective July 1, 1995, incorporated by reference to Exhibit 24.(b)(7)(a)(i) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(ii) Guaranteed Death Benefit Reinsurance Agreement for Ven 7 contracts between John Hancock Life Insurance Company (U.S.A.) (formerly North American Security Life Insurance Company) and CIGNA, effective July 1, 1995, incorporated by reference to Exhibit 24.(b)(7)(a)(ii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.[Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(iii) Guaranteed Death Benefit Reinsurance Agreement for old Ven 20 series contracts between John Hancock Life Insurance Company (U.S.A.) (formerly North American Security Life Insurance Company) and CIGNA, effective July 1, 1995, incorporated by reference to Exhibit 24.(b)(7)(a)(iii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.[Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(iv) Variable Annuity Reinsurance Agreement for Ven 20 series contracts between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company of North America) and CIGNA, effective July 1, 1998, incorporated by reference to Exhibit 24.(b)(7)(a)(iv) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.[Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(b) (i) Automatic Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly North American Security Life Insurance Company) and Swiss Re Life Company America, effective August 1, 1995, incorporated by reference to Exhibit 24.(b)(7)(b)(i) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(ii) Automatic Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company of North America) and Swiss Re Life Company America, effective July 1, 1998, incorporated by reference to Exhibit 24.(b)(7)(b)(ii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.[Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]

 

(c) (i) Automatic Reinsurance Agreement No. 2001-47 between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company of North America) and AXA Corporate Solutions Life Reinsurance Company, incorporated by reference to Exhibit 24.(b)(7)(c)(i) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.[Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(ii) Automatic Reinsurance Agreement No. 2001-48 between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company of North America) and AXA Corporate Solutions Life Reinsurance Company, incorporated by reference to Exhibit 24.(b)(7)(c)(ii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.[Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(d) (i) Variable Annuity GEM Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company (U.S.A.)) and ACE Tempest Life Reinsurance Ltd., incorporated by reference to Exhibit 24.(b)(7)(d)(i) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(ii) Variable Annuity GMDB Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company (U.S.A.)) and ACE Tempest Life Reinsurance Ltd., incorporated by reference to Exhibit 7(d)(ii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(iii) Variable Annuity GMIB Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly The Manufacturers Life Insurance Company (U.S.A.)) and ACE Tempest Life Reinsurance Ltd., incorporated by reference to Exhibit 24.(b)(7)(d)(iii) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(e) Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly North American Security Life Insurance Company) and Merrill Lynch Life Insurance Company, effective January 1, 1997, incorporated by reference to Exhibit 24.(b)(7)(e) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(f) Amended and Restated Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) and Manulife Reinsurance (Bermuda) Limited, effective October 1, 2008, incorporated by reference to Exhibit 24. (b)(7)(f) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(g) Reinsurance Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly North American Security Life Insurance Company) and Paine Webber Life Insurance Company, effective December 31, 1994, incorporated by reference to Exhibit 24.(b)(7)(g) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on April 3, 2019.]
(8) Other material contracts not made in the ordinary course of business which are to be performed in whole or in part on or after the date the registration statement is filed:
(i) (A) CSC Customer Agreement dated June 30, 2004, incorporated by reference to Exhibit 24(b)(8)(a)(i) to Post-Effective Amendment No. 3 to Registration Statement, File No. 333-143073, filed April 1, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on March 29, 2019.]

 

(B) Addendum No. 2 to the Remote Service Exhibit Number 1 dated July 1, 2006 with CSC, incorporated by reference to Exhibit 24(b)(8)(a)(ii) to Post-Effective Amendment No. 3 to Registration Statement, File No. 333-143073, filed April 1, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on March 29, 2019.]
(ii) (A) Merger Agreement with The Manufacturers Life Insurance Company (U.S.A.) and The Manufacturers Life Insurance Company of North America, incorporated by reference to Exhibit 24.(b)(8)(ii)(A) to Post-Effective Amendment 31 to this Registration Statement, File No. 333-70728, filed on April 30, 2009.
(iii) (A) Participation Agreement among John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance Company and John Hancock Trust dated April 20, 2005. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.
(B) Shareholder Information Agreement between John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance, and John Hancock Trust portfolios (except American Funds Insurance Series) dated April 16, 2007. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.
(C) Shareholder Information Agreement between John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance, and John Hancock Trust on behalf of series of the Trust that are feeder funds of the American Funds Insurance Series dated April 16, 2007. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.
(D) Shareholder Information Agreement dated October 16, 2007 between John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, and DWS Scudder Distributors, Inc. on behalf of series of the DWS Investments VIT Funds, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(E) Participation Agreement dated April 30, 2004 among The Manufacturers Insurance Company (U.S.A.), The Manufacturers Insurance Company of New York, PIMCO Variable Insurance Trust and PIMCO Advisors Distributors LLC, incorporated by reference to Exhibit (26)(H)(1) to Pre-Effective Amendment No. 2 to Registration Statement, File No. 333-152406, filed November 21, 2008.
(F) Shareholder Information Agreement between John Hancock Life Insurance Company (U.S.A.) and/or John Hancock Life Insurance Company of New York and Allianz Global Investors Distributors LLC on behalf of PIMCO Funds and Fixed Income Shares dated April 16, 2007, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(G) Shareholder Information Agreement dated April 16, 2007 by and between BlackRock Distributors, Inc, John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York, incorporated by reference to Post-Effective Amendment No. 24 to this Registration Statement, File No. 333-70728, filed on April 28, 2008.
(9) Opinion of Counsel and consent to its use as to the legality of the securities being registered—Incorporated by reference to Exhibit 24(b)(9) to the Pre-Effective Amendment.
(10) Written consent of Ernst & Young LLP, independent registered public accounting firm. [FILED HEREWITH]
(11) All financial statements omitted from Item 23, Financial Statements—NOT APPLICABLE.
(12) Agreements in consideration for providing initial capital between or among Registrant, Depositor, Underwriter or initial contract owners—NOT APPLICABLE.
(13) Schedules of computation—Incorporated by reference to Exhibit (b)(13) to post-effective amendment no. 2 to Form N-4, file number 33-76162, filed March 1, 1996.
(14) Financial Data Schedule—NOT APPLICABLE.

 

(15) (i) Powers of Attorney for Thomas Borshoff, James R. Boyle, Ruth Ann Fleming, James D. Gallagher, Scott S. Hartz, Rex Schlaybaugh, Jr., and John G. Vrysen—incorporated by reference to Exhibit 24(b)(15) to Post-Effective Amendment 33 to this Registration Statement, File No. 333-70728, filed on May 3, 2010.
(ii) Power of Attorney for Steven Finch, incorporated by reference to Exhibit 24(b)(15)(ii) to Post-Effective Amendment No. 34 to this Registration Statement, File No. 333-70728, filed August 2, 2010.
(iii) Power of Attorney for Paul M. Connolly, incorporated by reference to Exhibit 24(b)(15)(iii) to Post-Effective Amendment No. 36 to this Registration Statement, File No. 333-70728, filed on May 2, 2011.
(iv) Power of Attorney for Marianne Harrison, incorporated by reference to Exhibit 24(b)(15)(iv) to Post-Effective Amendment No. 38 to this Registration Statement, File No. 333-70728, filed on April 30, 2012.
(v) Power of Attorney for Craig Bromley, incorporated by reference to Exhibit 24(b)(15)(v) to Post-Effective Amendment No. 40 to this Registration Statement, File No. 333-70728, filed on April 26, 2013.
(vi) Power of Attorney for Michael Doughty, incorporated by reference to Exhibit 24(b)(15)(vi) to Post-Effective Amendment No. 40 to this Registration Statement, File No. 333-70728, filed on April 28, 2014.
(vii) Power of Attorney for Linda A. Davis Watters, incorporated by reference to Exhibit 24(b)(15)(vii) to Post-Effective Amendment No. 45 to this Registration Statement, File No. 333-70728, filed on April 28, 2017.
(viii) Power of Attorney for Marianne Harrison, incorporated by reference to Exhibit 24(b)(15)(viii) to Post-Effective Amendment No. 46 to this Registration Statement, File No. 333-70728, filed on April 27, 2018.
(ix) Power of Attorney for Brooks Tingle, incorporated by reference to Exhibit 24(b)(15)(ix) to Post-Effective Amendment No. 47 to this Registration Statement, File No. 333-70728, filed on April 26, 2019.
(x) Power of Attorney for J. Stephanie Nam, incorporated by reference to Exhibit 24(b)(15)(x) to Post-Effective Amendment No. 48 to Registration Statement, File No. 333-70728, filed on July 26, 2019.
(xi) Power of Attorney for Ken Ross, incorporated by reference to Exhibit 24(b)(15)(xi) to Post-Effective Amendment No. 48 to Registration Statement, File No. 333-70728, filed on July 26, 2019.
(xii) Power of Attorney for Henry H. Wong, incorporated by reference to Exhibit 24(b)(15)(xii) to Post-Effective Amendment No. 48 to Registration Statement, File No. 333-70728, filed on July 26, 2019.
Item 25. Directors and Officers of the Depositor.
Officers and Directors of John Hancock Life Insurance Company (U.S.A.) Effective as of March 25, 2020
Name and Principal Business Address   Position with Depositor
Marianne Harrison

200 Berkeley Street

Boston, MA 02116
   Chair, President & Chief Executive Officer
Paul M. Connolly

75 Indian Spring Road

Milton, MA 02186
   Director
James D. Gallagher

200 Berkeley Street

Boston, MA 02116
   Director, Executive Vice President
J. Stephanie Nam

1 West 72nd Street, Apt. 35

New York NY 10023
   Director
Ken Ross

200 Berkeley St.

Boston, MA 02116
   Director
Rex Schlaybaugh, Jr.

400 Renaissance Center

Detroit, MI 48243
   Director
Brooks Tingle

200 Berkeley Street

Boston, MA 02116
   Director, Senior Vice President

 

Name and Principal Business Address   Position with Depositor
John G. Vrysen

200 Berkeley Street

Boston, MA 02116
   Director
Linda A. Davis Watters

200 Berkeley Street

Boston, MA 02116
   Director
Henry H. Wong

200 Berkeley Street

Boston, MA 02116
   Director
Executive Vice Presidents
    
Andrew G. Arnott*
    
Christopher Paul Conkey**
    
Scott S. Hartz**
   Chief Investment Officer – U.S. Investments
Naveed Irshad**
   Head of Legacy Business
Halina K. von dem Hagen***
   Treasurer
Shamus Weiland*
   Chief Information Officer
Senior Vice Presidents
    
Emanuel Alves*
   General Counsel
John C.S. Anderson**
    
Michael Biagiotti*
    
Kevin J. Cloherty**
    
Peter DeFrancesco*
   Head of Digital – Direct to Consumer
Barbara Goose*
   Chief Marketing Officer
Linda Levyne*
    
Patrick McGuinness*
    
William McPadden**
    
Joelle Metzman**
    
Patrick M. Murphy*
    
Lee Ann Murray**
    
Sebastian Pariath*
   Head of Operations and Chief Information Officer
Martin Sheerin*
   Chief Financial Officer
Curt Smith*
    
Anthony Teta*
    
Leo Zerilli**
    
Vice Presidents
    
Lynda Abend*
    
John Addeo**
    
Mark Akerson*
    
Kevin Askew**
    
Zahir Bhanji***
   CFO JH Insurance
Stephen J. Blewitt**
    
Alan M. Block**
    
Paul Boyne**
    
Jon Bourgault**
   Senior Counsel
Ian B. Brodie**
    
Randall B. Brown*
    
Ted Bruntrager*
   Chief Risk Officer
Grant Buchanan***
    
Daniel C. Budde**
    
Robert Burrow**
    
Jennifer Toone Campanella**
    
Rick A. Carlson*
    
Patricia Rosch Carrington**
    
Todd J. Cassler*
    
Ken K. Cha*
    
Diana Chan***
   Treasury Operations
Brian Collins*
    

 

Name and Principal Business Address   Position with Depositor
William E. Corson**
    
Kenneth D’Amato*
    
John J. Danello**
    
Robert Donahue*
    
Jeffrey Duckworth*
    
Carolyn Flanagan**
    
Lauren Marx Fleming**
    
Philip J. Fontana**
    
Carl O. Fowler**
    
Scott Francolini*
    
Paul Gallagher**
    
Thomas C. Goggins**
    
Susan Ghalili*
    
Jeffrey N. Given**
    
Howard C. Greene**
    
Christopher Griswold*
    
Erik Gustafson**
    
Richard Harris***
   Appointed Actuary
Ellie Harrison*
   US Human Resources
John Hatch*
    
Michael Hession*
    
John Hibbs*
    
Kevin Hill*
    
James C. Hoodlet*
    
Sesh Iyengar**
    
Daniel S. Janis III**
    
Mitchell Karman**
   CCO & Counsel
Recep C. Kendircioglu**
    
Neal P. Kerins*
    
Frank Knox**
   CCO – Retail Funds
Hung Ko***
   Treasury
Diane R. Landers**
    
Michael Landolfi**
    
Scott Lively**
    
Jeffrey H. Long**
    
Jennifer Lundmark*
    
Edward P. Macdonald**
    
Patrick MacDonnell**
    
Kevin McGuire*
    
Nathaniel I. Margolis**
    
Robert G. Maulden**
    
John B. Maynard**
    
Karen McCafferty**
    
Scott A. McFetridge**
    
Jonathan McGee**
    
Ann McNally*
    
Michael McNamara*
    
Steven E. Medina**
    
Maureen Milet**
   CCO – Investments
Scott Morin*
    
Catherine Murphy*
   Deputy Appointed Actuary
Jeffrey H. Nataupsky**
    
Scott Navin**
    
Sinead O’Connor*
    
Jeffrey Packard**
    
Gary M. Pelletier**
    
David Pemstein**
    
Charlie Philbrook*
    

 

Name and Principal Business Address   Position with Depositor
David Plumb*
    
Tracey Polsgrove*
    
Todd Renneker**
    
Charles A. Rizzo**
    
Robert William Rizzo*
    
Susan Roberts*
    
Keri Rogers**
    
Ian Roke**
    
Josephine M. Rollka*
    
Ronald J. Rovner*
    
Devon Russell*
    
Thomas Samoluk**
    
Emory W. Sanders*
    
Jeffrey R. Santerre**
    
Martin C. Schafer*
    
Dolores (Dee Dee) Schreitmueller*
    
Christopher L. Sechler**
    
Thomas Shea**
    
Gordon Shone**
    
Susan Simi**
    
Darren Smith**
    
Rob Stanley*
    
Paddy Subbaraman**
    
Wilfred Talbot*
    
Gary Tankersley*
    
Nathan Thooft**
    
Tony Todisco*
    
Brian E. Torrisi**
    
Len van Greuning*
    
Simonetta Vendittelli*
   Controller
Peter de Vries*
    
Lisa Ann Welch**
    
Adam Wise**
    
R. Blake Witherington**
    
Sameh Youssef*
    
Ross Zilber*
    
*Principal Business Office is 200 Berkeley Street, Boston, MA 02116
**Principal Business Office is 197 Clarendon Street, Boston, MA 02116
***Principal Business Office is 200 Bloor Street, Toronto, Canada M4W1E5
****Principal Business Office is 250 Bloor Street, Toronto, Canada M4W1E5
Item 26. Persons Controlled by or Under Common Control with Depositor or Registrant.
Registrant is a separate account of John Hancock Life Insurance Company (U.S.A.) (the “Company”), operated as a unit investment trust. Registrant supports benefits payable under the Company’s variable annuity contracts by investing assets allocated to various investment options in shares of John Hancock Trust (the “Trust”), which is a “series” type of mutual fund registered under the Investment Company Act of 1940 (the “Act”) as an open-end management investment company. The purchasers of variable annuity and variable life insurance contracts, in connection with which the Trust is used, will have the opportunity to instruct the Company with respect to the voting of the shares of the Series Fund held by Registrant as to certain matters. Subject to the voting instructions, the Company directly controls Registrant.
On the effective date of this Amendment to the Registration Statement, the Company and its affiliates are controlled by Manulife Financial Corporation (“MFC”). A list of other persons controlled by MFC as of December 31, 2019, appears below:

 

 

Item 27. Number of Contract Owners.
As of March 31, 2020 there were 55,695 qualified contracts and 39,491 non-qualified contracts of the series offered hereby outstanding.
Item 28. Indemnification.
Article XIV of the Restated Articles of Redomestication of the Company provides as follows:
No director of this Corporation shall be personally liable to the Corporation or its shareholders or policyholders for monetary damages for breach of the director’s fiduciary duty, provided that the foregoing shall not eliminate or limit the liability of a director for any of the following:
i) a breach of the director’s duty or loyalty to the Corporation or its shareholders or policyholders;
ii) acts or omissions not in good faith or that involve intentional misconduct or knowing violation of law;
iii) a violation of Sections 5036, 5276 or 5280 of the Michigan Insurance Code, being MCLA 500.5036, 500.5276 and 500.5280;
iv) a transaction from which the director derived an improper personal benefit; or
v) an act or omission occurring on or before the date of filing of these Articles of Incorporation.
If the Michigan Insurance Code is hereafter amended to authorize the further elimination or limitation of the liability of directors. then the liability of a director of the Corporation, in addition to the limitation on personal liability contained herein, shall be eliminated or limited to the fullest extent permitted by the Michigan Insurance Code as so amended. No amendment or repeal of this Article XIV shall apply to or have any effect on the liability or alleged liability of any director of the Corporation for or with respect to any acts or omissions of such director occurring prior to the effective date of any such amendment or repeal.
Notwithstanding the foregoing, Registrant hereby makes the following undertaking pursuant to Rule 484 under the Securities Act of 1933:
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 29. Principal Underwriters.
(a) Set forth below is information concerning other investment companies for which John Hancock Distributors, LLC (“JHD LLC”), the principal underwriter of the contracts, acts as investment adviser or principal underwriter.
Name of Investment Company   Capacity in Which Acting
John Hancock Life Insurance Company (U.S.A.) Separate Account H
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account A
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account N
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account I
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account L
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account M
   Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account A
   Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account B
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account Q
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account W
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account X
   Principal Underwriter
John Hancock Variable Life Account UV
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account R
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account T
   Principal Underwriter

 

Name of Investment Company   Capacity in Which Acting
John Hancock Variable Life Account S
   Principal Underwriter
John Hancock Variable Life Account U
   Principal Underwriter
John Hancock Variable Life Account V
   Principal Underwriter
(b) John Hancock Life Insurance Company (U.S.A.) is the sole member of JHD LLC and the following comprise the Board of Managers and Officers of JHD LLC.
Name   Title
James C. Hoodlet*
   Director
Gary Tankersley*
   Director, President and Chief Executive Officer
Martin Sheerin*
   Director
Christopher Walker***
   Director, Vice President, Investments
Tracy Lannigan**
   Secretary
Brian Collins**
   Vice President, US Taxation
Jeffrey H. Long**
   Chief Financial Officer and Financial Operations Principal
*Principal Business Office is 200 Berkeley Street, Boston, MA 02116
**Principal Business Office is 197 Clarendon Street, Boston, MA 02116
***Principal Business Office is 200 Bloor Street, Toronto, Canada M4W1E5
(c) None.
Item 30. Location of Accounts and Records.
All books and records are maintained at 200 Berkeley Street, Boston, MA 02116.
Item 31. Management Services.
None.
Item 32. Undertakings.
(a) Representation of Insurer Pursuant to Section 26 of the Investment Company Act of 1940
John Hancock Life Insurance Company (U.S.A.) (“Company”) hereby represents that the fees and charges deducted under the contracts issued pursuant to this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company.
(b) Representation of Registrant Pursuant to Section 403(b) of the Internal Revenue Code of 1986, as amended
Registrant is relying on a no-action letter issued in connection with funding vehicles for retirement plans meeting the requirements of Section 403(b) of the Internal Revenue Code of 1986, as amended, on November 28, 1988, SEC Reference No. IP-6-88, and is complying with the provisions of paragraphs 1-4 of such no action letter.
(c) Undertakings Pursuant to Item 32 of Form N-4
(1) The Depositor and Registrant will file a post-effective amendment to this registration statement as frequently as is necessary to insure that the audited financial statements in the registration statement are never longer than 16 months old for so long as payments under the variable annuity contracts may be accepted;
(2) The Depositor and Registrant will include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and
(3) The Depositor and Registrant will deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request.

 

SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant and the Depositor certify that they meet all the requirements for effectiveness of this post-effective amendment to the Registration Statement pursuant to Securities Act of 1933 Rule 485(b) and they have caused this amended Registration Statement to be signed on their behalf in the City of Boston, Massachusetts, on this 24th day of April, 2020.
John Hancock Life Insurance Company (U.S.A.) Separate Account H
(Registrant)
By: John Hancock Life Insurance Company (U.S.A.)
(Depositor)
By: /s/ Marianne Harrison
Marianne Harrison
Chair and President
John Hancock Life Insurance Company (U.S.A.)
By: /s/ Marianne Harrison
Marianne Harrison
Chair and President

 

SIGNATURES
As required by the Securities Act of 1933, this amended Registration Statement has been signed by the following persons in their capacities with the Depositor on this 24th day of April, 2020.
Signature Title
/s/ Marianne Harrison
Marianne Harrison 		Chair and President
(Principal Executive Officer)
/s/ Martin Sheerin
Martin Sheerin 		Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
/s/ Simonetta Vendittelli
Simonetta Vendittelli 		Vice President and Controller
(Principal Accounting Officer)
*
Paul M. Connolly 		Director
*
James D. Gallagher 		Director
*
J. Stephanie Nam 		Director
*
Ken Ross 		Director
*
Rex Schlaybaugh, Jr. 		Director
*
Brooks Tingle 		Director
*
John G. Vrysen 		Director
*
Linda A. Davis Watters 		Director
*
Henry H. Wong 		Director
*/s/ Thomas J. Loftus
Thomas J. Loftus
Pursuant to Power of Attorney 		Senior Counsel—Annuities

 

EXHIBIT INDEX
Item No.   Description
24(b)(4)(xii)   Form of Specimen Endorsement for Principal Plus for Life Rider Series
24(b)(10)   Consent of Independent Registered Public Accounting Firm