EX-99 14 amend16.htm amend16.htm
EX-7i
 

 
AMENDMENT NO. 16
to the

VARIABLE ANNUITY GMIB REINSURANCE AGREEMENT

Effective March 1, 2005

Between

JACKSON NATIONAL LIFE INSURANCE COMPANY
(“CEDING COMPANY”)

and

ACE TEMPEST LIFE REINSURANCE LTD.
(“REINSURER”)



Effective May 2, 2011, this Amendment is hereby attached to and becomes a part of the above-described Reinsurance Agreement.  It is mutually agreed that the Agreement will be amended to clarify the definitions of the MONTHLY FORMULA DEDUCTIBLE and the MONTHLY FORMULA CLAIM LIMIT, to clarify the calculation of the ADJUSTED GMIB CLAIM, to remove the minimum annuity purchase amounts by product, and to include new investment funds, fund name changes and fund mergers.  To effect these changes, the following provision of this Agreement is hereby amended:


§  
Article I, DEFINITIONS, is hereby replaced by the attached Article I – DEFINITIONS.

§  
Schedule B-2, Subaccounts Subject to this Reinsurance Agreement, amendment #15, is hereby replaced by the attached Schedule B-2.

§  
Schedule C-1, Limits and Rules of the CEDING COMPANY, amendment #7, is hereby replaced by the attached Schedule C-1.

§  
Schedule H, Ceding Company Reporting Format and Data Requirements, amendment #10, is hereby replaced by the attached Schedule H.

§  
Schedule J, Calculation of ADJUSTED GMIB CLAIM, is hereby replaced by the attached Schedule J.



Jackson National Life Insurance Company                                                                                     ACE Tempest Life Reinsurance Ltd.


By  ______Lisa C. Drake__________________                                                                                                By  _______Huan Tseng________________

Name ____Lisa C. Drake__________________                                                                                                Name _____Huan Tseng________________

Title  _SVP & Chief Actuary_______________                                                                                                Title  __SVP & Chief Pricing Officer______

Date  _____4/7/11________________________                                                                                                Date ______4/4/11_____________________

 
 
 


ARTICLE I - DEFINITIONS

A. DURATION OF AGREEMENT:
 
EFFECTIVE DATE means March 1, 2005
 
BUSINESS DAY means any day that securities are traded on the New York Stock Exchange

MONTHLY VALUATION DATE means the last BUSINESS DAY of each month

REINSURANCE TERM means, for each ACTIVE CONTRACT, 25 years measured from the MONTHLY VALUATION DATE following each ACTIVE CONTRACT’s inclusion in the Agreement according to Article IV, paragraph A, B, C, or G as applicable.

TERMINATION DATE means the end of the REINSURANCE TERM for the last ACTIVE CONTRACT accepted under this Agreement.

B. CONTRACT DEFINITIONS:

ANNUITY CONTRACT means an individual variable annuity contract issued by the CEDING COMPANY to a contract owner in accordance with which CEDING COMPANY agrees to provide specified benefits in accordance with specified terms and conditions and that is or was reinsured under this Agreement, as specified in Article III, Paragraph A.
 

ACTIVE CONTRACT means an ANNUITY CONTRACT that remains in effect and has not been terminated due to death, lapse, surrender or some other valid contingency and has not been annuitized and includes one of the Guaranteed Minimum Income Benefits specified in Schedule A.

RETAIL ANNUITY PREMIUMS means all contributions (not reduced by subsequent withdrawals) made to the ANNUITY CONTRACT by or on behalf of the contract owner, commonly referred to as purchase payments, premiums, or deposits.

CONTRACT TYPE means one of the ANNUITY CONTRACT forms specified in Schedule B-1.
 

GMIB TYPE means one of the Guaranteed Minimum Income Benefits specified in Schedule A, applicable to ANNUITY CONTRACTs.

GMIB EXERCISE means an annuitization of an ACTIVE CONTRACT, where the monthly income is determined in accordance with a GMIB TYPE.

C. REINSURANCE PREMIUM DEFINITIONS:

REINSURED ACCOUNT VALUE means, for each ACTIVE CONTRACT, the sum of the invested assets in the investment funds shown in Schedule B-2 as it appears in the records of CEDING COMPANY, times the REINSURER’s quota share of risk, as shown in Schedule G.

REINSURED GMIB INCOME BASE means, for each ACTIVE CONTRACT, the contractually determined GMIB Benefit Base, subject to the CONTRACT TYPE and GMIB TYPE, times the REINSURER’s quota share of risk, as shown in Schedule G.

MONTHLY INCOME BASE means the sum of the REINSURED GMIB INCOME BASE, calculated on each MONTHLY VALUATION DATE, for all ACTIVE CONTRACTs covered by this Agreement.

QUARTERLY REINSURANCE PREMIUM RATE means the numerical value provided in Schedule D.

QUARTERLY REINSURANCE PREMIUM means the QUARTERLY REINSURANCE PREMIUM RATE times the MONTHLY INCOME BASE calculated as of MONTHLY VALUATION DATEs in March, June, September, and December of each calendar year.

REINSURANCE PREMIUM DUE DATE means the MONTHLY VALUATION DATE in March, June, September, and December of each calendar year.

REMITTANCE DATE means the last BUSINESS DAY of the month following the REINSURANCE PREMIUM DUE DATE.


D. REINSURANCE CLAIM DEFINITIONS:

ADJUSTED GMIB CLAIM means, for each ACTIVE CONTRACT that terminates through a GMIB EXERCISE, a calculated value in accordance with the formula provided in Schedule J.

REIMBURSEMENT DATE means the REMITTANCE DATE immediately following the date the REINSURER receives a request from the CEDING COMPANY for claim reimbursement.

AGGREGATE GMIB CLAIM means the sum of all ADJUSTED GMIB CLAIMs calculated through and including the current MONTHLY VALUATION DATE minus the lesser of the AGGREGATE FORMULA DEDUCTIBLE or the AGGREGATE DOLLAR DEDUCTIBLE, with the result floored at zero.

FORMULA DEDUCTIBLE RATE means the value provided in Schedule E-2.

MONTHLY FORMULA DEDUCTIBLE means the FORMULA DEDUCTIBLE RATE times the MONTHLY INCOME BASE summed over all ACTIVE CONTRACTs from their rider effective date through their first 120 MONTHLY VALUATION DATEs following the later of (i) their rider effective date or (ii) the most recent GMIB reset date.

AGGREGATE FORMULA DEDUCTIBLE means the sum of the MONTHLY FORMULA DEDUCTIBLEs through and including the current MONTHLY VALUATION DATE.

DOLLAR DEDUCTIBLE RATE means the value provided in Schedule E-1.

DOLLAR DEDUCTIBLE means the DOLLAR DEDUCTIBLE RATE times the RETAIL ANNUITY PREMIUMS attributable to each ANNUITY CONTRACT (whether or not currently active), times the quota share percentage in Schedule G.

AGGREGATE DOLLAR DEDUCTIBLE means the sum of the DOLLAR DEDUCTIBLEs for each ANNUITY CONTRACT as calculated on the current MONTHLY VALUATION DATE.

LIMITED AGGREGATE GMIB CLAIM means the least of AGGREGATE GMIB CLAIM, AGGREGATE FORMULA CLAIM LIMIT and AGGREGATE DOLLAR CLAIM LIMIT.

FORMULA CLAIM LIMIT RATE means a value provided in Schedule F-2.

MONTHLY FORMULA CLAIM LIMIT means the FORMULA CLAIM LIMIT RATE times the MONTHLY INCOME BASE summed over all ACTIVE CONTRACTs from their rider effective date through their first 120 MONTHLY VALUATION DATEs following the later of (i) their rider effective date or (ii) the most recent GMIB reset date.

AGGREGATE FORMULA CLAIM LIMIT means the sum of the MONTHLY FORMULA CLAIM LIMITS through and including the current MONTHLY VALUATION DATE.

DOLLAR CLAIM LIMIT RATE means a value provided in Schedule F-1.

DOLLAR CLAIM LIMIT means the DOLLAR CLAIM LIMIT RATE times the RETAIL ANNUITY PREMIUMS attributable to each ANNUITY CONTRACT (whether or not currently active) times the quota share percentage in Schedule G.

AGGREGATE DOLLAR CLAIM LIMIT means the sum of the DOLLAR CLAIM LIMITs for all ANNUITY CONTRACTS as calculated on the current MONTHLY VALUATION DATE.

 

JNL ACE 2005 Treaty Article I, paragraph D Amendment  #16

 
 
 

SCHEDULE B-2

Subaccounts Subject to this Reinsurance Agreement


Fund Name
Comment
Product Availability
JNL/American Funds Global Small Capitalization Fund
New 5/3/2010
All
JNL/American Funds New World Fund
New 5/3/2010
All
JNL/American Funds International Fund
New 5/3/2010
All
JNL/American Funds Growth-Income Fund
New 5/3/2010
All
JNL/American Funds Blue Chip Income and Growth Fund
New 5/3/2010
All
JNL/American Funds Global Bond Fund
New 5/3/2010
All
JNL/ BlackRock Commodity Securities Fund.
New 1/16/2007 – Name changed from JNL/Credit Suisse Global Natural Resources effective 9/28/2009.  Effective 10/11/2010, name changed from JNL/Credit Suisse Commodity Securities Fund.
All
JNL/BlackRock Global Allocation Fund
New 10/11/2010
All
JNL/Capital Guardian Global Balanced Fund
Name changed from JNL/FMR Balanced Fund effective 4/30/2007 and from JNL/FI Balanced Fund effective 12/3/2007
All
JNL/Capital Guardian Global Diversified Research Fund
Name changed from JNL/Select Global Growth Fund effective 12/3/2007
All
JNL/Capital Guardian U.S. Growth Equity Fund
Name changed from JNL/Select Large Cap Growth Fund effective 12/3/2007
All
JNL/Eagle Core Equity Fund
  
All
JNL/Eagle Small Cap Equity Fund
  
All
JNL/Franklin Templeton Founding Strategy
New 1/16/2007
All
JNL/Franklin Templeton Global Growth
New 1/16/2007
All
JNL/Franklin Templeton Income Fund
New 5/1/2006
All
JNL/Franklin Templeton International Small Cap Growth Fund
New 12/3/2007 – Name changed from JNL/Capital Guardian International Small Cap Fund effective 5/3/2010.
All
JNL/Franklin Templeton Mutual Shares
New 1/16/2007
All
JNL/Franklin Templeton Small Cap Value Fund
New 5/2/05
All
JNL/Goldman Sachs Core Plus Bond Fund
Name changed from JNL/Salomon Brothers Strategic Bond Fund effective 5/1/2006, from JNL/Western Strategic Bond Fund effective 1/16/2007, and from JNL/Western Asset Strategic Bond Fund effective 4/30/2007.
All
JNL/Goldman Sachs Emerging Markets Debt Fund
New 10/6/2008
All
JNL/Goldman Sachs Mid Cap Value Fund
New 5/2/05
All
JNL/Goldman Sachs U.S. Equity Flex
New 1/16/2007. .Effective 10/11/2010, name changed from JNL/Credit Suisse Long/Short.
All
JNL Institutional Alt 20
New 4/6/2009
All  (Restriction for Retirement Latitudes was lifted 5/3/2010)
JNL Institutional Alt 35
New 4/6/2009
All  (Restriction for Retirement Latitudes was lifted 5/3/2010)
JNL Institutional Alt 50
New 4/6/2009
All  (Restriction for Retirement Latitudes was lifted 5/3/2010)
JNL Institutional Alt 65
New 4/6/2009
All  (Restriction for Retirement Latitudes was lifted 5/3/2010)
JNL/Invesco International Growth Fund
Named changed from JNL/Putnam International Equity Fund effective 5/2/05 and from JNL/JPM International Equity Fund effective 12/3/2007. Effective 10/11/2010, name changed from JNL/AIM International Growth Fund.
All
JNL/Invesco Large Cap Growth Fund
Name changed from JNL/AIM Large Cap Growth Fund effective 10/11/2010.
All
JNL/Invesco Global Real Estate Fund
New 5/2/05, Name changed from JNL/AIM Real Estate Fund effective 10/6/2008. Effective 10/11/2010, name changed from JNL/AIM Global Real Estate Fund.
All
JNL/Invesco Small Cap Growth Fund
Name changed from JNL/AIM Small Cap Growth Fund effective 10/11/2010.
All
JNL/Ivy Asset Strategy
New 9/28/2009
All  (Restriction for Retirement Latitudes was lifted 5/3/2010)
JNL/JPMorgan International Value Fund
  
All
JNL/JPMorgan Mid-Cap Growth Fund
Name changed from JNL/FMR Capital Growth Fund effective 5/1/2006, from JNL/FMR Mid-Cap Equity Fund effective 4/30/2007, and from JNL/FI Mid-Cap Equity Fund effective 12/3/2007.  Also, JNL/Putnam Mid-Cap Growth Fund was merged with this fund effective 12/3/2007.
All
JNL/JPMorgan U.S. Government & Quality Bond Fund
Name changed from JNL/Salomon Brothers U.S. Govt. & Quality Bond Fund effective 5/1/2006,from JNL/Western U.S. Govt. & Quality Bond Fund effective 1/16/2007, and from JNL/Western Asset U.S. Govt. & Quality Bond Fund effective 4/30/2007.
All
JNL/Lazard Emerging Markets Fund
New 5/1/2006
All
JNL/Lazard Mid Cap Equity Fund
Name changed from JNL/Lazard Mid Cap Value Fund effective 3/31/2008
All
JNL/M&G Global Basics Fund
New 10/6/2008
All
JNL/M&G Global Leaders Fund
New 10/6/2008
All
JNL/Mellon Capital Management 10 X 10 Fund
New 4/30/2007.
All but Retirement Latitudes
JNL/Mellon Capital Management 25 Fund
  
All
JNL/Mellon Capital Management Bond Index Fund
  
All
JNL/Mellon Capital Management Communications Sector Fund
  
All but Retirement Latitudes
JNL/Mellon Capital Management Consumer Brands Sector Fund
  
All but Retirement Latitudes
JNL/Mellon Capital Management Oil & Gas Sector Fund
Name changed from JNL/Mellon Capital Management Energy Sector Fund effective 5/2/2005
All but Retirement Latitudes
JNL/Mellon Capital Management European 30 Fund
New 10/6/2008
All
JNL/Mellon Capital Management Financial Sector Fund
  
All but Retirement Latitudes
JNL/Mellon Capital Management Global 15 Fund
  
All
JNL/Mellon Capital Management International Index Fund
  
All
JNL/Mellon Capital Management Index 5 Fund
New 4/30/2007.
All but Retirement Latitudes
JNL/Mellon Capital Management JNL 5 Fund
  
All
JNL/Mellon Capital Management JNL Optimized 5 Fund
New 5/1/2006
All
JNL/Mellon Capital Management Healthcare Sector Fund
Name changed from JNL/Mellon Capital Management Pharmaceutical/Healthcare Sector Fund effective 5/2/05
All but Retirement Latitudes
JNL/Mellon Capital Management NYSE® International 25 Fund
New 4/30/2007.
All but Retirement Latitudes
JNL/Mellon Capital Management Pacific Rim 30 Fund
New 10/6/2008
All
JNL/Mellon Capital Management S&P ® SMid 60 Fund
New 4/30/2007.
All but Retirement Latitudes
JNL/Mellon Capital Management S&P ® 24 Fund
New 5/1/2006
All
JNL/Mellon Capital Management S&P 400 MidCap Index Fund
  
All
JNL/Mellon Capital Management S&P 500 Index Fund
Effective 4/6/2009, the JNL/Mellon Capital Management Enhanced S&P 500 Stock Index fund was merged into this fund.  Effective 9/28/2009, the JNL/PPM America Core Equity Fund was merged into this fund.
All
JNL/Mellon Capital Management Select Small-Cap Fund
  
All
JNL/Mellon Capital Management Small Cap Index Fund
Effective 4/6/2009, the JNL/Lazard Small Cap Equity fund was merged into this fund.
All
JNL/Mellon Capital Management Technology Sector Fund
  
All but Retirement Latitudes
JNL/Mellon Capital Management Dow SM Dividend
New 1/17/2006
All
JNL/Mellon Capital Management The Dowsm 10 Fund
Name changed effective 1/17/2006
All
JNL/Mellon Capital Management The S&P® 10 Fund
Name changed effective 1/17/2006
All
JNL/Mellon Capital Management VIP Fund
  
All
 
JNL/Mellon Capital Management Nasdaq®25 Fund
Name changed from JNL/Mellon Capital Management Nasdaq®15 Fund effective 12/3/2007
All
JNL/Mellon Capital Management Value Line®30 Fund
Name changed from JNL/Mellon Capital Management Value Line® 25 Fund effective 12/3/2007
All
JNL/Mellon Capital Management Global Alpha Fund
New 9/28/2009
All  (Restriction for Retirement Latitudes was lifted eff 5/3/2010)
JNL/Oppenheimer Global Growth Fund
  
All
JNL/PAM Asia ex-Japan Fund
New 3/31/2008
All
JNL/PAM China-India Fund
New 3/31/2008
All
JNL/PIMCO Real Return
New 1/16/2007
All
JNL/PIMCO Total Return Bond Fund
  
All
JNL/PPM America Floating Rate Income Fund
New 5/2/2011
All
JNL/ PPM America High Yield Bond Fund
Name changed from JNL/Salomon Brothers High Yield Bond Fund effective 5/1/2006, from JNL/Western High Yield Bond Fund effective 1/16/2007, and from JNL/Western Asset High Yield Bond Fund effective 4/30/2007.
All
JNL/PPM America Mid-Cap Value Fund
New 3/31/2008
All
JNL/PPM America Small Cap Value Fund
New 3/31/2008
All
JNL/PPM America Value Equity
Name changed from JNL/Putnam Value Equity Fund effective 1/16/2007
All  (Exclusion of Retirement Latitudes was lifted eff 10/6/08)
JNL/Red Rocks Listed Private Equity Fund
New 10/6/2008
All
JNL/S&P 4 Fund
New 12/3/2007
All
JNL/S&P Competitive Advantage Fund
New 12/3/2007
All but Retirement Latitudes
JNL/S&P Disciplined Growth
New 1/16/2007
All but Fifth Third
JNL/S&P Disciplined Moderate
New 1/16/2007
All but Fifth Third
JNL/S&P Disciplined Moderate Growth
New 1/16/2007
All but Fifth Third
JNL/S&P Dividend Income & Growth Fund
New 12/3/2007
All but Retirement Latitudes
JNL/S&P Intrinsic Value Fund
New 12/3/2007
All but Retirement Latitudes
JNL/S&P Managed Aggressive Growth Fund
  
All
JNL/S&P Managed Conservative Fund
  
All
JNL/S&P Managed Growth Fund
Effective 9/28/2009, the JNL/S&P Retirement 2020 Fund and the JNL/S&P Retirement 2025 Fund were merged into this fund.
All
JNL/S&P Managed Moderate Fund
Effective 9/28/2009, the JNL/S&P Retirement Income Fund was merged into this fund.
All
JNL/S&P Managed Moderate Growth Fund
 
Effective 9/28/2009, the JNL/S&P Retirement 2015 Fund was merged into this fund
All
JNL/S&P Total Yield Fund
New 12/3/2007
All but Retirement Latitudes
JNL/WMC Balanced
Name changed from JNL/Select Balanced effective 5/2/2011
All
JNL/WMC Money Market
Name changed from JNL/Select Money Market effective 5/2/2011
All
JNL/WMC Value
Name changed from JNL/Select Value effective 5/2/2011
All
JNL/T. Rowe Price Established Growth Fund
JNL/Alliance Capital Growth Fund was merged with this fund 5/2/05.  JNL/Alger Growth Fund and JNL Oppenheimer Growth Fund were merged with this fund on 4/30/2007.
 
All
JNL/T. Rowe Price Mid-Cap Growth Fund
  
All
JNL/T. Rowe Price Short Term Bond Fund
New 5/1/2006 – Name changed from JNL/Goldman Sachs Duration Bond Fund effective 9/28/2009
All
JNL/T. Rowe Price Value Fund
  
All
Fifth Third Balanced VIP Fund
Fund no longer available for new investments effective 8/13/2007 and was liquidated effective 10/12/2007
Fifth Third Only
Fifth Third Disciplined Value VIP Fund
Fund no longer available for new investments effective 8/13/2007 and was liquidated effective 10/12/2007
Fifth Third Only
Fifth Third Mid Cap VIP Fund
Fund no longer available for new investments effective 8/13/2007 and was liquidated effective 10/12/2007
Fifth Third Only
Fifth Third Quality Growth VIP Fund
Fund no longer available for new investments effective 8/13/2007 and was liquidated effective 10/12/2007
Fifth Third Only
 
 
JNL General Account
Guaranteed Five Year Fixed
  
All but Advisors II and Perspective A Series
12 Month DCA
  
All
6 Month DCA
  
All
Guaranteed One Year Fixed
  
All but Advisors II
Guaranteed Seven Year Fixed
  
All but Advisors II and Perspective A Series
Guaranteed Three Year Fixed
  
All but Advisors II and Perspective A Series

JNL ACE 2005 Treaty Schedule B-2 Amendment #16

 
 
 

SCHEDULE C-1

Limits and Rules of the CEDING COMPANY


1)  
The CEDING COMPANY will determine the Guaranteed Minimum Income Benefits for each qualified annuitization within seven (7) BUSINESS DAYs of receipt of election to annuitize under the GMIB.

2)  
The CEDING COMPANY reserves the right to limit cumulative RETAIL ANNUITY PREMIUMS on ANNUITY CONTRACTs to a maximum of $1,000,000.

3)  
For the purpose of Article IV paragraph G, the maximum RETAIL ANNUITY PREMIUMS per life without REINSURER’s approval is $5,000,000.

4)  
Valid issue ages for GMIB annuitants are 0 to 75, age last birthday.
 

JNL ACE 2005 Treaty Schedule C-1 Amendment #16

 
 
 

SCHEDULE H

CEDING COMPANY Reporting Format and Data Requirements

Monthly Reporting Data Requirements (prepared by CEDING COMPANY)
ACTIVE CONTRACTS and those terminating during the month only:
Insured Life (annuitant) SSN
Contract Identifier
Insured Life Indicator (Annuitant, Owner, or Other)
Insured Life Date of Birth
Insured Life Sex
Second Life Date of Birth (if joint contract)
Second Life Sex (if joint contract)
Issue Date
Qualified Status
Contract Type
Initial Retail Premium
Cumulative Retail Premium
Cumulative Withdrawals
Account value by subaccount
GMIB - Roll-up Amount
GMIB - MAV Amount
GMIB Reset Dates
Termination Date
Termination Reason (surrender, death, annuitization)
Optional benefit indicators
Spousal Continuation Indicator

Quarterly Reporting Requirements (prepared by REINSURER)
GAAP Surplus position
Standard and Poor’s Ratings

GMIB Monthly Seriatim Claim Reporting (prepared by CEDING COMPANY)
This includes the following items determined as of the Date of Annuitization:

Policy Number
Date of Annuitization
Contract Issue Date
Guaranteed Purchase Rate
Current Purchase Rate based on treaty definition
Interest rate used in calculation of Current Purchase Rate
Certain Period Elected, but not to exceed 10 years
GMIB Income Base
Account Value
Income Benefit Net Amount at Risk
ADJUSTED GMIB CLAIM
Annuitant DOB
Annuitant Sex
Joint Annuitant DOB (if applicable)
Joint Annuitant Sex (if applicable)

Quarterly Statement of Account (prepared by CEDING COMPANY)
(prepared for each CONTRACT TYPE and GMIB TYPE combination and in aggregate)

1.  Calculated value of MONTHLY INCOME BASE
2.  Calculated value of QUARTERLY REINSURANCE PREMIUM
3.  Calculated value of MONTHLY FORMULA DEDUCTIBLE, AGGREGATE FORMULA DEDUCTIBLE, DOLLAR DEDUCTIBLE and AGGREGATE DOLLAR DEDUCTIBLE
4.  Calculated value of MONTHLY FORMULA CLAIM LIMIT, AGGREGATE FORMULA CLAIM LIMIT, DOLLAR CLAIM LIMIT and AGGREGATE DOLLAR CLAIM LIMIT
5.  Calculated value of ADJUSTED GMIB CLAIMs, AGGREGATE GMIB CLAIM, and LIMITED AGGREGATE GMIB CLAIM

 
 
JNL ACE 2005 Treaty Schedule H Amendment #16


 
 
 

SCHEDULE J

Calculation of ADJUSTED GMIB CLAIM

 
A. Income Benefit Net Amount at Risk (IBNARt)
 
 
The IBNARt for each ANNUITY CONTRACT reinsured hereunder in calendar year t shall be equal to the following:
 

IBNARt = Maximum (RGIBt * Minimum (GAPRt / CAPRt, 0.8) – RAVt, 0)

where:

RGIBt is the REINSURED GMIB INCOME BASE, and RAVt is the REINSURED ACCOUNT VALUE, both as defined in Article I, calculated on the ANNUITY CONTRACT’s annuitization date that occurs on or following the contract’s calendar year t anniversary.

GAPRt is the Guaranteed Annuity Purchase Rate (monthly income per $1000 of RGIB), calculated on the ANNUITY CONTRACT’s annuitization date that occurs on or following the contract’s calendar year t anniversary, using the following assumptions:
·  
Mortality Table                                     Annuity 2000 Valuation Table – Age Nearest Birthday
·  
Age Setback                                           10 years
·  
Mortality Improvement:                          None
·  
Interest Rate:                                           2.5% all years; annual effective rate
·  
Age:                                                          Age Last Birthday on exercise date
·  
Annuity Form:                                           Life contingent immediate annuity, not to exceed 10-year certain
·  
Annuity Load:                                           2.0%.
Payment Mode:                                      Monthly, regardless of mode elected
Certain Period:                                       Elected period but no greater than 10 years
Single Life Formulas:                            Life Annuity =
 
                  
 
Life Annuity with 10 year certain period =
 
 
Joint Life Formulas:                             Joint Life Annuity =  
 
                
 
Joint Life Annuity with 10 year certain period =
 
 
Unisex Rates:                                                      40%/60% male/female blended at the qx level



CAPRt is the Current Annuity Purchase Rate (monthly income per $1000 of RGIB), calculated on the ANNUITY CONTRACT’s annuitization date that occurs on or following the contract’s  calendar year t anniversary, using the following assumptions:
·  
Mortality Table                                     Annuity 2000 Valuation Table  – Age Nearest Birthday
·  
Age Setback                                           None
·  
Mortality Improvement:Scale G (as shown in the 1995 Transactions of the Society
                                                                 of Actuaries) from calendar year 2000  to exercise year
Interest Rate:
The yield on the most recently auctioned 10-year Treasury Security, as posted in the Wall Street Journal, at the beginning of the month in which exercise occurs, plus 75 bps; annual effective rate
·  
Age:                                           Age Last Birthday on exercise date
·  
Annuity Form:                       Life contingent immediate annuity, not to exceed 10-year certain
·  
Annuity Load:                                           0.0%.
Payment Mode:                                           Monthly, regardless of mode elected
Certain Period:                                           Elected period but no greater than 10 years
Single Life Formulas:                                 same as for GAPRt
Joint Life Formulas:                                   same as for GAPRt
Unisex Rates:
Projected sex-distinct mortality rates according to Mortality
 
              Improvement section, then blended 40%/60% male/female

The impact of premium taxes, commissions, other expenses, and gender on the calculation of GAPRt and CAPRt will be applied on a consistent basis.

The monthly income calculated from CAPRt is for reinsurance purposes only, and the CEDING COMPANY may use other approaches with retail customers.
 
B. Annual Annuitization Limit Ratio (AALRatiot)
 
 
The AALRatiot for calendar year t shall be equal to the following:
 

AALRatiot = ExercisedRGIBt / EligibleRGIBt
 
 
where:

ExercisedRGIBt is the sum of the REINSURED GMIB INCOME BASE measured on the annuitization date for each ACTIVE CONTRACT that terminates through a GMIB EXERCISE on or following the contract’s calendar year t anniversary.

EligibleRGIBt is the sum a) plus b) plus c) where
a)  
is the ExercisedRGIBt,
b)  
is the sum of the REINSURED GMIB INCOME BASE as of the first MONTHLY VALUATION DATE on or following the contract’s calendar year t anniversary for each ANNUITY CONTRACT that:
i.)  
was an ACTIVE CONTRACT as of the first MONTHLY VALUATION DATE on or following the contract’s calendar year t anniversary, and
ii.)  
had been reinsured hereunder for at least 120 months for GMIB form numbers without annual resets or for 120 months since the last reset date for GMIB form numbers with annual resets, and
iii.)  
is not included in a).
c)  
is the sum of the REINSURED GMIB INCOME BASE as of the termination date for each ANNUITY CONTRACT that:
i.)  
terminated between the contract’s calendar year t anniversary and the first MONTHLY VALUATION DATE on or following the contract’s calendar year t anniversary, and
ii.)  
had been reinsured hereunder for at least 120 months for GMIB form numbers without annual resets or for 120 months since the last reset date for GMIB form numbers with annual resets, and
iii.)  
is not included in a).

 
 
C. ADJUSTED GMIB CLAIM (AdjGMIBt)
 

The ADJUSTED GMIB CLAIM for each ANNUITY CONTRACT that terminated through a GMIB EXERCISE on or following the contract’s calendar year t anniversary shall be equal to the following:

AdjGMIBt = IBNARt * (Minimum (AALRatiot, 0.20) / AALRatiot)

D. GUARANTEED ANNUITY PURCHASE RATES TABLES

The following tables contain the Guaranteed Annuity Purchase Rates for both “life only” and "life with 10-year certain" annuitization payout options for attained ages 40 through 99 and selected combinations of joint life ages. Values shown are the monthly income amounts per $1,000 applied. The purchase rates for other ages and options are to be calculated in a consistent manner.

 
 
 

Single Life Annuities
TABLE OF GUARANTEED ANNUITY PURCHASE RATES
(MONTHLY INSTALLMENTS)
                                   
 
No. of Mos.
  
No. of Mos.
  
No. of Mos.
  
No. of Mos.
  
No. of Mos.
  
No. of Mos.
Age of
Certain
Age of
Certain
Age of
Certain
Age of
Certain
Age of
Certain
Age of
Certain
Payee
    
Payee
    
Payee
    
Payee
    
Payee
    
Payee
    
Male
Life
120
Male
Life
120
Female
Life
120
Female
Life
120
Unisex
Life
120
Unisex
Life
120
40
2.85
2.84
70
4.62
4.53
40
2.74
2.74
70
4.24
4.19
40
2.78
2.78
70
4.39
4.33
41
2.88
2.87
71
4.74
4.64
41
2.76
2.76
71
4.34
4.29
41
2.81
2.81
71
4.50
4.43
42
2.9
2.90
72
4.87
4.76
42
2.79
2.79
72
4.45
4.39
42
2.84
2.83
72
4.62
4.54
43
2.93
2.93
73
5.01
4.88
43
2.81
2.81
73
4.57
4.50
43
2.86
2.86
73
4.75
4.65
44
2.97
2.96
74
5.16
5.00
44
2.84
2.84
74
4.69
4.61
44
2.89
2.89
74
4.88
4.77
45
3
2.99
75
5.32
5.13
45
2.87
2.87
75
4.83
4.73
45
2.92
2.92
75
5.02
4.89
46
3.03
3.03
76
5.49
5.27
46
2.90
2.90
76
4.97
4.85
46
2.95
2.95
76
5.18
5.02
47
3.07
3.06
77
5.67
5.41
47
2.93
2.93
77
5.12
4.99
47
2.99
2.98
77
5.34
5.16
48
3.11
3.10
78
5.87
5.56
48
2.96
2.96
78
5.28
5.13
48
3.02
3.02
78
5.51
5.30
49
3.15
3.14
79
6.07
5.72
49
2.99
2.99
79
5.46
5.27
49
3.06
3.05
79
5.70
5.45
50
3.19
3.18
80
6.29
5.87
50
3.03
3.03
80
5.65
5.43
50
3.09
3.09
80
5.90
5.61
51
3.23
3.22
81
6.53
6.04
51
3.07
3.06
81
5.85
5.59
51
3.13
3.13
81
6.12
5.77
52
3.28
3.27
82
6.78
6.20
52
3.10
3.10
82
6.07
5.76
52
3.17
3.17
82
6.35
5.94
53
3.33
3.32
83
7.04
6.37
53
3.14
3.14
83
6.31
5.94
53
3.22
3.21
83
6.60
6.12
54
3.38
3.36
84
7.33
6.55
54
3.19
3.18
84
6.57
6.12
54
3.26
3.25
84
6.87
6.30
55
3.43
3.41
85
7.63
6.72
55
3.23
3.22
85
6.85
6.31
55
3.31
3.30
85
7.16
6.48
56
3.48
3.47
86
7.96
6.90
56
3.28
3.27
86
7.15
6.51
56
3.36
3.35
86
7.47
6.67
57
3.54
3.52
87
8.31
7.07
57
3.32
3.31
87
7.48
6.71
57
3.41
3.40
87
7.80
6.86
58
3.6
3.58
88
8.68
7.24
58
3.37
3.36
88
7.83
6.91
58
3.47
3.45
88
8.16
7.05
59
3.66
3.64
89
9.08
7.42
59
3.43
3.42
89
8.21
7.11
59
3.52
3.51
89
8.55
7.23
60
3.73
3.70
90
9.51
7.58
60
3.48
3.47
90
8.63
7.30
60
3.58
3.56
90
8.97
7.42
61
3.8
3.77
91
9.97
7.75
61
3.54
3.53
91
9.08
7.50
61
3.65
3.63
91
9.43
7.60
62
3.87
3.84
92
10.46
7.90
62
3.60
3.59
92
9.57
7.68
62
3.71
3.69
92
9.92
7.77
63
3.95
3.91
93
10.98
8.05
63
3.67
3.65
93
10.10
7.86
63
3.78
3.76
93
10.44
7.94
64
4.03
3.99
94
11.54
8.19
64
3.74
3.72
94
10.67
8.03
64
3.86
3.83
94
11.01
8.10
65
4.11
4.07
95
12.13
8.32
65
3.81
3.79
95
11.29
8.19
65
3.93
3.90
95
11.62
8.24
66
4.2
4.15
96
12.77
8.44
66
3.89
3.86
96
11.96
8.33
66
4.01
3.98
96
12.28
8.38
67
4.3
4.24
97
13.44
8.55
67
3.97
3.94
97
12.68
8.46
67
4.10
4.06
97
12.98
8.50
68
4.4
4.33
98
14.16
8.65
68
4.05
4.02
98
13.44
8.58
68
4.19
4.14
98
13.73
8.61
69
4.51
4.43
99
14.93
8.74
69
4.15
4.10
99
14.25
8.68
69
4.29
4.24
99
14.52
8.71

Guaranteed Purchase Rates -Joint and Survivor Life Annuity

Age of Male Annuitant
Age of Female Contingent Annuitant
50
55
60
65
70
75
80
85
90
55
$2.89
$2.99
$3.09
$3.18
$3.25
$3.31
$3.35
$3.38
$3.40
60
2.93
3.06
3.19
3.32
3.43
3.52
3.59
3.64
3.68
65
2.96
3.11
3.27
3.44
3.60
3.75
3.87
3.96
4.02
70
2.98
3.15
3.34
3.55
3.77
3.99
4.18
4.34
4.45
75
3.00
3.18
3.39
3.64
3.92
4.21
4.51
4.77
4.98
80
3.01
3.20
3.42
3.70
4.03
4.41
4.82
5.23
5.59
85
3.02
3.21
3.45
3.74
4.11
4.56
5.09
5.68
6.25
90
3.02
3.22
3.46
3.77
4.16
4.66
5.30
6.06
6.90


Guaranteed Purchase Rates - Joint and Survivor Life Annuity and 10 Year Certain Period

Age of Male Annuitant
Age of Female Contingent Annuitant
50
55
60
65
70
75
80
85
90
55
$2.89
$2.99
$3.09
$3.18
$3.25
$3.31
$3.35
$3.38
$3.40
60
2.93
3.06
3.19
3.32
3.43
3.52
3.59
3.64
3.67
65
2.96
3.11
3.27
3.44
3.60
3.75
3.87
3.95
4.01
70
2.98
3.15
3.34
3.55
3.77
3.98
4.17
4.32
4.43
75
3.00
3.18
3.39
3.63
3.91
4.21
4.49
4.74
4.93
80
3.01
3.20
3.42
3.70
4.02
4.40
4.80
5.18
5.49
85
3.02
3.21
3.44
3.74
4.10
4.54
5.05
5.58
6.06
90
3.02
3.22
3.46
3.76
4.15
4.63
5.23
5.90
6.57



E. SAMPLE CURRENT ANNUITY PURCHASE RATES TABLES

The following tables contains sample Current Annuity Purchase Rates for both “life only” and "life with 10-year certain" annuitization payout options for attained ages 40 through 99 and selected combinations of joint life ages, based on a GMIB exercise in 2015 and a 10-year Treasury Security equal to 5% . Values shown are the monthly income amounts per $1,000 applied. The purchase rates for other ages, options, exercise years, and 10-year Treasury Security rates are to be calculated in a consistent manner.

 
 
 

Single Life Annuities
TABLE OF SAMPLE CURRENT ANNUITY PURCHASE RATES
2015 year of annuitization and 10-yr Treasury rate = 5%
(MONTHLY INSTALLMENTS)
                       
 
No. of Mos.
  
No. of Mos.
  
No. of Mos.
  
No. of Mos.
  
No. of Mos.
  
No. of Mos.
Age of
Certain
Age of
Certain
Age of
Certain
Age of
Certain
Age of
Certain
Age of
Certain
Payee
    
Payee
    
Payee
    
Payee
    
Payee
    
Payee
    
Male
Life
120
Male
Life
120
Female
Life
120
Female
Life
120
Unisex
Life
120
Unisex
Life
120
40
5.24
5.23
70
7.95
7.50
40
5.11
5.10
70
7.28
7.06
40
5.16
5.15
70
7.55
7.24
41
5.27
5.26
71
8.16
7.64
41
5.13
5.13
71
7.46
7.20
41
5.19
5.18
71
7.74
7.38
42
5.31
5.30
72
8.39
7.79
42
5.16
5.15
72
7.66
7.35
42
5.22
5.21
72
7.95
7.53
43
5.35
5.33
73
8.63
7.95
43
5.19
5.18
73
7.88
7.51
43
5.25
5.24
73
8.17
7.69
44
5.39
5.37
74
8.89
8.10
44
5.22
5.21
74
8.11
7.67
44
5.29
5.27
74
8.42
7.85
45
5.43
5.41
75
9.16
8.26
45
5.25
5.24
75
8.36
7.84
45
5.32
5.31
75
8.68
8.01
46
5.47
5.45
76
9.46
8.42
46
5.28
5.27
76
8.63
8.02
46
5.36
5.34
76
8.96
8.18
47
5.52
5.49
77
9.78
8.59
47
5.32
5.31
77
8.92
8.20
47
5.40
5.38
77
9.26
8.36
48
5.57
5.54
78
10.11
8.75
48
5.36
5.35
78
9.23
8.38
48
5.44
5.42
78
9.58
8.53
49
5.62
5.58
79
10.48
8.91
49
5.40
5.38
79
9.58
8.57
49
5.49
5.47
79
9.93
8.71
50
5.67
5.63
80
10.87
9.08
50
5.44
5.43
80
9.95
8.76
50
5.54
5.51
80
10.31
8.89
51
5.73
5.69
81
11.28
9.24
51
5.49
5.47
81
10.35
8.94
51
5.59
5.56
81
10.72
9.07
52
5.79
5.74
82
11.73
9.39
52
5.54
5.52
82
10.79
9.13
52
5.64
5.61
82
11.16
9.24
53
5.85
5.80
83
12.21
9.55
53
5.59
5.56
83
11.26
9.31
53
5.70
5.66
83
11.63
9.41
54
5.92
5.86
84
12.72
9.69
54
5.65
5.62
84
11.77
9.48
54
5.76
5.72
84
12.15
9.57
55
5.99
5.93
85
13.27
9.83
55
5.70
5.67
85
12.33
9.65
55
5.82
5.78
85
12.70
9.72
56
6.07
6.00
86
13.86
9.96
56
5.77
5.73
86
12.94
9.80
56
5.89
5.84
86
13.30
9.87
57
6.15
6.07
87
14.50
10.09
57
5.83
5.79
87
13.59
9.95
57
5.96
5.91
87
13.95
10.01
58
6.24
6.15
88
15.19
10.21
58
5.90
5.86
88
14.29
10.09
58
6.04
5.98
88
14.65
10.14
59
6.33
6.24
89
15.92
10.32
59
5.98
5.93
89
15.04
10.22
59
6.12
6.05
89
15.39
10.26
60
6.44
6.33
90
16.70
10.42
60
6.06
6.00
90
15.84
10.33
60
6.21
6.13
90
16.18
10.37
61
6.54
6.42
91
17.52
10.51
61
6.15
6.08
91
16.68
10.44
61
6.31
6.22
91
17.01
10.47
62
6.66
6.52
92
18.40
10.59
62
6.24
6.17
92
17.56
10.53
62
6.41
6.31
92
17.89
10.56
63
6.78
6.62
93
19.34
10.67
63
6.34
6.26
93
18.48
10.62
63
6.52
6.41
93
18.82
10.64
64
6.92
6.73
94
20.36
10.73
64
6.45
6.35
94
19.47
10.68
64
6.64
6.51
94
19.83
10.70
65
7.06
6.85
95
21.50
10.78
65
6.56
6.45
95
20.56
10.74
65
6.76
6.61
95
20.93
10.76
66
7.22
6.97
96
22.78
10.82
66
6.69
6.56
96
21.77
10.79
66
6.90
6.73
96
22.17
10.80
67
7.38
7.09
97
24.25
10.85
67
6.82
6.67
97
23.17
10.83
67
7.04
6.84
97
23.60
10.84
68
7.56
7.22
98
26.03
10.87
68
6.96
6.79
98
24.86
10.86
68
7.20
6.97
98
25.32
10.86
69
7.75
7.36
99
28.03
10.88
69
7.12
6.92
99
26.75
10.88
69
7.37
7.10
99
27.26
10.88

Current Purchase Rates - 2015 year of annuitization and 10-yr Treasury rate = 5%:

Joint and Survivor Life Annuity

Age of Male Annuitant
Age of Female Contingent Annuitant
50
55
60
65
70
75
80
85
90
55
$5.24
$5.36
$5.48
$5.60
$5.71
$5.80
$5.87
$5.92
$5.95
60
5.29
5.44
5.61
5.78
5.95
6.10
6.22
6.30
6.36
65
5.34
5.52
5.73
5.96
6.21
6.45
6.65
6.81
6.91
70
5.37
5.57
5.83
6.13
6.47
6.83
7.16
7.44
7.64
75
5.39
5.62
5.90
6.27
6.70
7.20
7.72
8.18
8.55
80
5.41
5.65
5.96
6.37
6.90
7.55
8.27
9.01
9.64
85
5.42
5.67
6.00
6.44
7.04
7.83
8.78
9.84
10.86
90
5.43
5.68
6.03
6.49
7.14
8.03
9.20
10.61
12.12



 
Joint and Survivor Life Annuity and 10 Year Certain Period

Age of Male Annuitant
Age of Female Contingent Annuitant
50
55
60
65
70
75
80
85
90
55
$5.24
$5.36
$5.48
$5.60
$5.71
$5.79
$5.86
$5.90
$5.92
60
5.29
5.44
5.61
5.78
5.94
6.08
6.19
6.26
6.30
65
5.33
5.51
5.72
5.96
6.20
6.42
6.61
6.73
6.80
70
5.37
5.57
5.82
6.12
6.45
6.78
7.07
7.29
7.42
75
5.39
5.61
5.89
6.25
6.66
7.12
7.56
7.90
8.12
80
5.41
5.64
5.94
6.34
6.84
7.41
8.01
8.51
8.84
85
5.42
5.66
5.98
6.40
6.95
7.63
8.36
9.02
9.49
90
5.42
5.67
5.99
6.43
7.02
7.76
8.60
9.38
9.96


 

 
JNL ACE 2005 Treaty Schedule J Amendment # 16