As filed with the U.S. Securities and Exchange Commission on April 24, 2009

Registration No. 333-131139

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-6

SEC File No 811-8329

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

POST EFFECTIVE AMENDMENT NO. 3 [X]

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 36 [X]

John Hancock Life Insurance Company of New York SEPARATE ACCOUNT B

(Exact Name of Registrant)

John Hancock Life Insurance Company of New York

(Name of Depositor)

197 Clarendon Street

Boston, MA 02116

(Complete address of depositor’s principal executive offices)

Depositor’s Telephone Number: 617-572-6000

JAMES C. HOODLET, ESQ.

John Hancock Life Insurance Company of New York

U.S. INSURANCE LAW

JOHN HANCOCK PLACE

BOSTON, MA 02117

(Name and complete address of agent for service)

It is proposed that this filing will become effective (check appropriate box)

[ ] immediately upon filing pursuant to paragraph (b) of Rule 485

[X ] on May 1, 2009 pursuant to paragraph (b) of Rule 485

[ ] 60 days after filing pursuant to paragraph (a) (1) of Rule 485

[ ] on (date) 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 amendment

Pursuant to the provisions of Rule 24f-2, Registrant has registered an indefinite amount of the securities under the Securities Act of 1933.

Prospectus dated May 1, 2009

for interests in

Separate Account B

Interests are made available under

CORPORATE VUL

a flexible premium variable universal life insurance policy issued by

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

(“John Hancock NY”)

The policy provides a fixed account option with fixed rates of return declared by John Hancock NY

and the following investment accounts:

500 Index B	Financial Services	Money Market B
Active Bond	Franklin Templeton Founding Allocation	Natural Resources
All Cap Core	Fundamental Value	Optimized All Cap
All Cap Growth	Global	Optimized Value
All Cap Value	Global Allocation	Overseas Equity
Alpha Opportunities	Global Bond	Pacific Rim
American Asset Allocation	Global Real Estate	PIMCO VIT All Asset
American Blue Chip Income and Growth	Health Sciences	Real Estate Securities
American Bond	High Yield	Real Return Bond
American Diversified Growth and Income	International Core	Science & Technology
American Fundamental Holdings	International Equity Index B	Short-Term Bond
American Global Diversification	International Opportunities	Small Cap Growth
American Growth	International Small Cap	Small Cap Index
American Growth-Income	International Value	Small Cap Opportunities
American International	Investment Quality Bond	Small Cap Value
American New World	Large Cap	Small Company Value
Balanced	Large Cap Value	Strategic Bond
Blue Chip Growth	Lifestyle Aggressive	Strategic Income
Capital Appreciation	Lifestyle Balanced	Total Bond Market B
Capital Appreciation Value	Lifestyle Conservative	Total Return
Core Allocation Plus	Lifestyle Growth	Total Stock Market Index
Core Bond	Lifestyle Moderate	U.S. Government Securities
Core Strategy	Mid Cap Index	U.S. High Yield Bond
Disciplined Diversification	Mid Cap Intersection	Utilities
Emerging Small Company	Mid Cap Stock	Value
Equity-Income	Mid Value

* * * * * * * * * * * *

Please note that the Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

GUIDE TO THIS PROSPECTUS

This prospectus is arranged in the following way:

• Starting on the next page is a Table of Contents for this prospectus.

• The section after the Table of Contents is called “Summary of Benefits and Risks.” It contains a summary of the benefits available under the policy and of the principal risks of purchasing the policy. You should read this section before reading any other section of this prospectus.

• Behind the Summary of Benefits and Risks section is a section called “Fee Tables” that describes the fees and expenses you will pay when buying, owning and surrendering the policy.

• Behind the Fee Tables section is a section called “Detailed Information.” This section gives more details about the policy. It may repeat certain information contained in the Summary of Benefits and Risks section in order to put the more detailed information in proper context.

• Finally, on the back cover of this prospectus is information concerning the Statement of Additional Information (the “SAI”) and how the SAI, personalized illustrations and other information can be obtained.

Prior to making any investment decisions, you should carefully review this product prospectus and all applicable supplements. In addition, you will receive the prospectuses for the underlying funds that we make available as investment options under the policies. The funds’ prospectuses describe the investment objectives, policies and restrictions of, and the risks relating to, investment in the funds. In the case of any of the portfolios that are operated as feeder funds, the prospectus for the corresponding master fund is also provided. If you need to obtain additional copies of any of these documents, please contact your John Hancock NY representative or contact our Service Office at the address and telephone number on the back page of this product prospectus.

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TABLE OF CONTENTS

	Page No.
SUMMARY OF BENEFITS AND RISKS	4
The nature of the policy	4
Summary of policy benefits	4
Death benefit	4
Surrender of the policy	4
Withdrawals	4
Policy loans	4
Optional supplementary benefit riders	5
Investment options	5
Summary of policy risks	5
Lapse risk	5
Investment risk	5
Transfer risk	5
Early surrender risk	5
Market timing risk	5
Tax risks	6
FEE TABLES	7
DETAILED INFORMATION	14
Table of Investment Options and Investment Subadvisers	14
Description of John Hancock NY	25
Description of Separate Account B	25
The fixed account	26
The death benefit	26
Limitations on payment of death benefit	26
Base Face Amount vs. Supplemental Face Amount	26
The minimum death benefit	27
When the insured person reaches 100	27
Requesting an increase in coverage	27
Requesting a decrease in coverage	28
Change of death benefit option	28
Tax consequences of coverage changes	28
Your beneficiary	28
Ways in which we pay out policy proceeds	28
Changing a payment option	29
Tax impact of payment option chosen	29
Premiums	29
Planned premiums	29
Minimum initial premium	29
Maximum premium payments	29
Processing premium payments	29
Ways to pay premiums	30
Lapse and reinstatement	30
Lapse	30
Death during grace period	30
Reinstatement	30
The policy value	31
Allocation of future premium payments	31
Transfers of existing policy value	31
Surrender and withdrawals	33
Surrender	33
Withdrawals	33
Policy loans	33

	Page No.
Repayment of policy loans	34
Effects of policy loans	34
Description of charges at the policy level	34
Deduction from premium payments	34
Deductions from policy value	34
Additional information about how certain policy charges work	35
Sales expenses and related charges	35
Method of deduction	35
Reduced charges for eligible classes	35
Other charges we could impose in the future	35
Description of charges at the portfolio level	36
Other policy benefits, rights and limitations	36
Optional supplementary benefit riders you can add	36
Variations in policy terms	37
Procedures for issuance of a policy	37
Commencement of insurance coverage	37
Backdating	37
Temporary coverage prior to policy delivery	37
Monthly deduction dates	38
Changes that we can make as to your policy	38
The owner of the policy	38
Policy cancellation right	38
Reports that you will receive	39
Assigning your policy	39
When we pay policy proceeds	39
General	39
Delay to challenge coverage	39
Delay for check clearance	39
Delay of separate account proceeds	39
Delay of general account surrender proceeds	39
How you communicate with us	40
General rules	40
Telephone, facsimile and internet transactions	40
Distribution of policies	41
Compensation	41
Tax considerations	42
General	42
Death benefit proceeds and other policy distributions	42
Policy loans	43
Diversification rules and ownership of the Account	44
7-pay premium limit and modified endowment contract status	44
Corporate and H.R. 10 retirement plans	45
Withholding	45
Life insurance purchases by residents of Puerto Rico	45
Life insurance purchases by non-resident aliens	45
Financial statements reference	45
Registration statement filed with the SEC	46
Independent registered public accounting firm	46

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SUMMARY OF BENEFITS AND RISKS

The nature of the policy

The policy’s primary purpose is to provide lifetime protection against economic loss due to the death of the insured person. The policy is unsuitable as a short-term savings vehicle because of the substantial policy-level charges. We are obligated to pay all amounts promised under the policy. The value of the amount you have invested under the policy may increase or decrease daily based on the investment results of the investment accounts that you choose. The amount we pay to the policy’s beneficiary upon the death of the insured person (we call this the “death benefit”) may be similarly affected. That’s why the policy is referred to as a “variable” life insurance policy. We call the investments you make in the policy “premiums” or “premium payments.” The amount we require as your first premium depends upon the specifics of your policy and the insured person. Except as noted in the “Detailed Information” section of this prospectus, you can make any other premium payments you wish at any time. That’s why the policy is called a “flexible premium” policy.

Summary of policy benefits

Death benefit

When the insured person dies, we will pay the death benefit minus any policy debt and unpaid fees and charges. There are two ways of calculating the death benefit (Option 1 and Option 2). You choose which one you want in the application. The two death benefit options are:

• Option 1 - The death benefit will equal the greater of (1) the Total Face Amount, or (2) the minimum death benefit (as described under “The minimum death benefit” provision in the “Detailed Information” section of this prospectus).

• Option 2 - The death benefit will equal the greater of (1) the Total Face Amount plus the policy value on the date of death, or (2) the minimum death benefit.

Surrender of the policy

You may surrender the policy in full at any time. If you do, we will pay you the policy value less any outstanding policy debt. This is called your “net cash surrender value.” You must return your policy when you request a surrender.

If you have not taken a loan on your policy, the “policy value” of your policy will, on any given date, be equal to:

• the amount you invested,

• plus any gain or minus any loss of the investment experience of the investment options you’ve chosen,

• minus all charges we deduct, and

• minus all withdrawals you have made.

If you take a loan on your policy, your policy value will be computed somewhat differently (see “Effects of policy loans”).

Withdrawals

After the first policy year, you may make a withdrawal of part of your surrender value. Generally, each withdrawal must be at least $500. We reserve the right to charge a fee of up to the lesser of 2% of the withdrawal amount or $25 for each withdrawal. Your policy value is automatically reduced by the amount of the withdrawal and the fee. A withdrawal may also reduce the Total Face Amount (see “Surrender and withdrawals — Withdrawals”). We reserve the right to refuse a withdrawal if it would reduce the net cash surrender value or the Total Face Amount below certain minimum amounts.

Policy loans

If your policy is in full force and has sufficient policy value, you may borrow from it at any time by completing the appropriate form. Generally, the minimum amount of each loan is $500. The maximum amount you can borrow is determined by a formula as described in your policy. Interest is charged on each loan. You can pay the interest or allow it to become part of the outstanding loan balance. You can repay all or part of a loan at any time. If there is an outstanding loan when the insured person dies, it will be deducted from the death benefit. Policy loans permanently affect the calculation of your policy value, and may also result in adverse tax consequences.

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Optional supplementary benefit riders

When you apply for the policy, you can request any of the optional supplementary benefit riders that we make available. Charges for most riders will be deducted monthly from the policy value. Some riders may not be available in combination with other riders or benefits (see “Other policy benefits, rights and limitations — Optional supplementary benefit riders you can add”).

Investment options

The policy offers a number of investment options, as listed on page 1 of this prospectus. These investment options are subaccounts of Separate Account B (the “Account” or “Separate Account”), a separate account operated by us under New York law. There is also a “fixed account” option that provides a fixed rate of return. The variable investment options have returns that vary depending upon the investment results of underlying portfolios. These options are referred to in this prospectus as “investment accounts.” The fixed account and the investment accounts are sometimes collectively referred to in this prospectus as the “accounts.” The investment accounts cover a broad spectrum of investment styles and strategies. Although the portfolios of the series funds that underlie those investment accounts operate like publicly traded mutual funds, there are important differences between the investment accounts and publicly traded mutual funds. You can transfer money from one investment account to another without tax liability. Moreover, any dividends and capital gains distributed by each underlying portfolio are automatically reinvested and reflected in the portfolio’s value and create no taxable event for you. If and when policy earnings are distributed (generally as a result of a surrender or withdrawal), they will be treated as ordinary income instead of as capital gains. Also, you must keep in mind that you are purchasing an insurance policy and you will be assessed charges at the policy level as well as at the fund level. Such policy level charges, in aggregate, are significant and will reduce the investment performance of your policy.

Summary of policy risks

Lapse risk

If the net cash surrender value is insufficient to pay the charges when due, your policy can terminate (i.e. “lapse”). This can happen because you haven’t paid enough premiums or because the investment performance of the investment accounts you’ve chosen has been poor or because of a combination of both factors. You will be given a “grace period” within which to make additional premium payments to keep the policy in effect. If lapse occurs, you may be given the opportunity to reinstate the policy by making the required premium payments and satisfying certain other conditions.

Since withdrawals reduce your policy value, withdrawals increase the risk of lapse. Policy loans also increase the risk of lapse.

Investment risk

As mentioned above, the investment performance of any investment account may be good or bad. Your policy value will rise or fall based on the investment performance of the investment accounts you’ve chosen. Some investment accounts are riskier than others. These risks (and potential rewards) are discussed in detail in the prospectuses of the underlying portfolios.

Transfer risk

There is a risk that you will not be able to transfer your policy value from one investment account to another because of limitations on the dollar amount or frequency of transfers you can make. The limitations on transfers out of the fixed account option are more restrictive than those that apply to transfers out of investment accounts.

Early surrender risk

Depending on the policy value at the time you are considering surrender, there may be little or no surrender value payable to you.

Market timing risk

Investment accounts in variable life insurance products can be a prime target for abusive transfer activity because these products value their investment accounts on a daily basis and allow transfers among investment accounts without immediate tax consequences. As a result, some investors may seek to frequently transfer into and out of investment accounts in reaction

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to market news or to exploit a perceived pricing inefficiency. Whatever the reason, long-term investors in an investment account can be harmed by frequent transfer activity since such activity may expose the investment account’s underlying portfolio to increased portfolio transaction costs and/or disrupt the portfolio manager’s ability to effectively manage the portfolio’s investments in accordance with the portfolio’s investment objectives 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 impose restrictions on transfers (see “Transfers of existing policy value”) and reserve the right to change, suspend or terminate telephone, facsimile and internet transaction privileges (see “How you communicate with us”). In addition, we reserve the right to take other actions at any time to restrict trading, including, but not limited to: (i) restricting the number of transfers made during a defined period, (ii) restricting the dollar amount of transfers, and (iii) restricting transfers into and out of certain investment accounts. We also reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the underlying portfolio.

While we seek to identify and prevent disruptive frequent trading activity, it may not always be possible to do so.

Therefore, no assurance can be given that the restrictions we impose will be successful in preventing all disruptive frequent trading and avoiding harm to long-term investors.

Tax risks

Life insurance death benefits are ordinarily not subject to income tax. Other Federal and state taxes may apply as further discussed below. In general, you will be taxed on the amount of lifetime distributions that exceed the premiums paid under the policy. Any taxable distribution will be treated as ordinary income (rather than as capital gains) for tax purposes.

In order for you to receive the tax benefits extended to life insurance under the Internal Revenue Code, your policy must comply with certain requirements of the Code. We will monitor your policy for compliance with these requirements, but a policy might fail to qualify as life insurance in spite of our monitoring. If this were to occur, you would be subject to income tax on the income credited to your policy for the period of disqualification and all subsequent periods. The tax laws also contain a so-called “7 pay limit” that limits the amount of premium that can be paid in relation to the policy’s death benefit. If the limit is violated, the policy will be treated as a “modified endowment contract,” which can have adverse tax consequences. There are also certain Treasury Department rules referred to as the “investor control rules” that determine whether you would be treated as the “owner” of the assets underlying your policy. If that were determined to be the case, you would be taxed on any income or gains those assets generate. In other words, you would lose the value of the so-called “inside build-up” that is a major benefit of life insurance.

There is a tax risk associated with policy loans. Although no part of a loan is treated as income to you when the loan is made (unless your policy is a “modified endowment contract”), surrender or lapse of the policy would result in the loan being treated as a distribution at the time of lapse or surrender. This could result in a considerable tax bill. Under certain circumstances involving large amounts of outstanding loans and an insured person of advanced age, you might find yourself having to choose between high premium requirements to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.

Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws can vary greatly depending upon the circumstances of each owner or beneficiary. There can also be unfavorable tax consequences on such things as the change of policy ownership or assignment of ownership interests. For these and all the other reasons mentioned above, we recommend you consult with a qualified tax adviser before buying the policy and before exercising certain rights under the policy.

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FEE TABLES

This section contains five tables that describe all of the fees and expenses that you will pay when buying and owning the policy. In the first three tables, certain entries show the minimum charge, the maximum charge and the charge for a representative insured person. The charges shown in these tables may not be particularly relevant to your current situation. For more information, contact your John Hancock NY representative. Other entries show only the maximum charge we can assess and are labeled as such. Except where necessary to show a rate greater than zero, all rates shown in the tables have been rounded to two decimal places as required by prospectus disclosure rules. Consequently, the actual rates charged may be slightly higher or lower than those shown in the tables.

The first table below describes the fees and expenses that you will pay at the time that you pay a premium, withdraw policy value, surrender the policy, lapse the policy or transfer policy value between investment accounts. A portion of the premium charge is used to cover premium taxes. Currently, the premium tax in New York is 0.7% of each premium payment.

Transaction Fees
Charge	When Charge is Deducted	Amount Deducted
Maximum premium charge	Upon payment of premium	7% of each premium paid (currently, 1.5%)
Maximum withdrawal fee	Upon making a withdrawal	The lesser of 2% of the withdrawal amount or $25(1)
Maximum transfer fee	Upon each transfer into or out of an investment account beyond an annual limit of not less than 12	$25 (currently $0)(1)

(1) This charge is not currently imposed, but we reserve the right to do so in the policy.

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The next two tables describe the charges and expenses that you will pay periodically during the time you own the policy. These tables do not include fees and expenses paid at the portfolio level. Except for the policy loan interest rate and the charge for the Enhanced Cash Value Rider, all of the charges shown in the tables are deducted from your policy value. The second table is devoted only to optional supplementary rider benefits. The charges shown in these tables may not be particularly relevant to your current situation. For more information about the cost of insurance rates and other charges talk to your John Hancock representative.

Periodic Charges Other Than Fund Operating Expenses
	When Charge is Deducted	Amount Deducted
Charge		Guaranteed Rate	Current Rate
Cost of insurance charge(1)	Monthly
Minimum charge		$0.07 per $1,000 of NAR	$0.05 per $1,000 of NAR
Maximum charge		$83.33 per $1,000 of NAR	$83.33 per $1,000 of NAR
Charge for representative insured person		$0.38 per $1,000 of NAR	$0.13 per $1,000 of NAR
Face Amount charge(2)	Monthly for 10 policy years from the Policy Date
Minimum charge		$0.09 per $1,000 of Base Face Amount in policy years 1-10	$0.09 per $1,000 of Base Face Amount in policy years 1-3
			$0.06 per $1,000 of Base Face Amount in policy years 4-6
			$0.03 per $1,000 of Base Face Amount in policy years 7-10
Maximum charge		$1.08 per $1,000 of Base Face Amount in policy years 1-10	$1.08 per $1,000 of Base Face Amount in policy years 1-3
			$0.72 per $1,000 of Base Face Amount in policy years 4-6
			$0.36 per $1,000 of Base Face Amount in policy years 7-10
Charge for representative insured person		$0.28 per $1,000 of Base Face Amount	$0.28 per $1,000 of Base Face Amount in policy years 1-3
			$0.19 per $1,000 of Base Face Amount in policy years 4-6
			$0.09 per $1,000 of Base Face Amount in policy years 7-10
Administrative charge	Monthly	$12	$9
Asset-based risk charge(3)	Monthly	0.08% of policy value in policy years 1-10	0.03% of policy value in policy years 1-10
		0.03% of policy value in policy year 11 and thereafter	0.004% of policy value in policy year 11 and thereafter
Maximum policy loan interest rate(4)	Accrues daily Payable annually	3.75%	3.75%

(1) The cost of insurance charge is determined by multiplying the amount of insurance for which we are at risk (the net amount at risk or “NAR”) by the applicable cost of insurance rate. The rates vary widely depending upon the length of time the policy has been in effect, the insurance risk characteristics of the insured person and (generally) the gender of the insured person. The minimum rate shown in the table is the rate in the first policy year for a policy issued to cover a 15 year old female preferred underwriting risk. The maximum rate shown in the table at both guaranteed and current rates is the rate in the first policy year for a policy issued to cover a 90 year old male substandard smoker underwriting risk. This includes the so-called extra mortality charge. The representative insured person referred to in the table is a 45 year old male standard non-smoker underwriting risk with a policy in the first policy year.

(2) This charge is determined by multiplying the Base Face Amount at issue by the applicable rate. The rates vary by the sex and issue age of the insured person and duration (Policy Year). The minimum rate shown in the table is for a 15 year old female. The maximum rate shown in the table is for a 90 year old male. The representative insured person referred to in the table is a 45 year old male.

(3) This charge only applies to that portion of policy value held in the investment accounts. The charge determined does not apply to any fixed account.

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(4) 3.75% is the maximum effective annual interest rate we can charge and applies only during policy years 1-10. The effective annual interest rate is 3.00% thereafter (although we reserve the right to increase the rate after the tenth policy year to as much as 3.25%). The amount of any loan is transferred from the accounts to a special loan account which earns interest at an effective annual rate of 3.00%. Therefore, the cost of a loan is the difference between the loan interest we charge and the interest we credit to the special loan account.

Rider Charges
	When Charge is
Charge	Deducted	Amount Deducted
Enhanced Cash Value Rider	Upon payment of premium	0.5% of premium paid in the first 7 policy years, up to the Limiting Premium (1) for each policy year stated in the Policy
		Specifications page of the policy.
Change of Life Insured Rider	At exercise of benefit	$250
Overloan Protection Rider (2)	At exercise of benefit
Minimum charge		0.04%
Maximum charge		8.00%

(1) The “Limiting Premium” is an amount determined by multiplying the Base Face Amount at issue by an applicable rate which varies by the sex and issue age of the insured person. The minimum rate is for a 15-year old female and is $17.90 per $1000 of Base Face Amount. The maximum rate is for a 90-year old male and is $216.26 per $1,000 of Base Face Amount. The rate for a representative insured person is for a 45 year old male and is $56.49 per $1000 of Base Face Amount. Thus, for the representative 45 year old male with $100,000 of Base Face Amount, the Limiting Premium for the policy year would be $5,649.00.

(2) The charge for this rider is determined as a percentage of unloaned account value. The rates vary by the attained age of the insured person at the time of exercise. The rates also differ according to the tax qualification test elected at issue. The guaranteed minimum rate for the guideline premium test is .04% (currently .04%) and the guaranteed maximum rate is 2.50% (currently 2.50%). The guaranteed minimum rate for the cash value accumulation test is .054% (currently .054%) and the guaranteed maximum rate is 8.00% (currently 8.00%). The minimum rate shown in the table is for an insured person who has reached attained age 99 and the guideline premium test has been elected. The maximum rate shown is for an insured person who has reached attained age 75 and the cash value accumulation test has been elected.

The next table describes the minimum and maximum portfolio level fees and expenses charged by any of the portfolios underlying a variable investment option offered through this prospectus, expressed as a percentage of average net assets (rounded to two decimal places). These expenses are deducted from portfolio assets.

Total Annual Portfolio Operating Expenses	Minimum	Maximum
Range of expenses, including management fees, distribution and/or service (12b-1) fees, and other expenses	0.50%	1.64%

The next table describes the fees and expenses for each portfolio underlying a variable investment option offered through this prospectus. None of the portfolios charge a sales load or surrender fee. The fees and expenses do not reflect the fees and expenses of any variable insurance contract or qualified plan that may use the portfolio as its underlying investment medium. Except for the American Asset Allocation, American International, American Diversified Growth and Income, American Global Diversification, American Growth, American Growth-Income, American Blue Chip Income and Growth, American Bond, American New World, American Fundamental Holdings and PIMCO VIT All Asset portfolios, all of the portfolios shown in the table are NAV class shares that are not subject to Rule 12b-1 fees. Except as indicated in the footnotes appearing at the end of the table, the expense ratios are based upon the portfolio’s actual expenses for the year ended December 31, 2008.

As noted in the footnotes to the table, for certain portfolios John Hancock Investment Management Services, Inc. (the “Adviser”) has agreed to waive a portion of its fees or reimburse the portfolio for expenses when, and to the extent that, the net operating expenses exceed an agreed upon expense limitation. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements for a period of three years following the beginning of the month in which such reimbursement or waiver occurred.

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Portfolio Annual Expenses

(as a percentage of portfolio average net assets, rounded to two decimal places)

Portfolio	Management Fees	12b-1 Fees	Other Expenses	Acquired Fund Fees and Expenses	Total1 Operating Expenses
500 Index B2	0.47%	0.00%	0.03%	0.00%	0.50%
Active Bond3	0.60%	0.00%	0.04%	0.00%	0.64%
All Cap Core3	0.77%	0.00%	0.05%	0.00%	0.82%
All Cap Growth3	0.85%	0.00%	0.10%	0.00%	0.95%
All Cap Value3	0.85%	0.00%	0.09%	0.00%	0.94%
Alpha Opportunities3,4	1.02%	0.00%	0.04%	0.00%	1.06%
American Asset Allocation5,6	0.31%	0.60%	0.05%	0.00%	0.96%
American Blue Chip Income and Growth5	0.42%	0.60%	0.07%	0.00%	1.09%
American Bond5	0.39%	0.60%	0.05%	0.00%	1.04%
American Diversified Growth and Income4,7	0.05%	0.60%	0.04%	0.63%	1.32%
American Fundamental Holdings4,7	0.05%	0.60%	0.04%	0.40%	1.09%
American Global Diversification4,7	0.05%	0.60%	0.04%	0.63%	1.32%
American Growth5	0.32%	0.60%	0.05%	0.00%	0.97%
American Growth-Income5	0.27%	0.60%	0.05%	0.00%	0.92%
American International5	0.49%	0.60%	0.07%	0.00%	1.16%
American New World4,5,6	0.76%	0.60%	0.18%	0.00%	1.54%
Balanced8	0.84%	0.00%	0.07%	0.00%	0.91%
Blue Chip Growth3,8	0.81%	0.00%	0.04%	0.00%	0.85%
Capital Appreciation3	0.72%	0.00%	0.04%	0.00%	0.76%
Capital Appreciation Value3,8,9	0.95%	0.00%	0.15%	0.00%	1.10%
Core Allocation Plus3,9	0.92%	0.00%	0.22%	0.00%	1.14%
Core Bond3,9	0.64%	0.00%	0.07%	0.00%	0.71%
Core Strategy10	0.05%	0.00%	0.05%	0.52%	0.62%
Disciplined Diversification3,11	0.80%	0.00%	0.19%	0.00%	0.99%
Emerging Small Company3	0.97%	0.00%	0.08%	0.00%	1.05%
Equity-Income3,8	0.81%	0.00%	0.05%	0.00%	0.86%
Financial Services3	0.82%	0.00%	0.08%	0.00%	0.90%
Franklin Templeton Founding Allocation12	0.04%	0.00%	0.04%	0.83%	0.91%
Fundamental Value3	0.76%	0.00%	0.05%	0.00%	0.81%
Global3,9,13,14	0.81%	0.00%	0.11%	0.00%	0.92%
Global Allocation3,9	0.85%	0.00%	0.10%	0.05%	1.00%
Global Bond3,9	0.70%	0.00%	0.10%	0.00%	0.80%
Global Real Estate3	0.93%	0.00%	0.12%	0.00%	1.05%
Health Sciences3,8,9	1.05%	0.00%	0.08%	0.00%	1.13%
High Yield3	0.66%	0.00%	0.06%	0.00%	0.72%
International Core3,9	0.89%	0.00%	0.14%	0.00%	1.03%
International Equity Index B2	0.53%	0.00%	0.06%	0.00%	0.59%
International Opportunities3,9	0.87%	0.00%	0.13%	0.00%	1.00%
International Small Cap3,9	0.94%	0.00%	0.16%	0.00%	1.10%
International Value3,9,13	0.81%	0.00%	0.14%	0.00%	0.95%
Investment Quality Bond3	0.59%	0.00%	0.09%	0.00%	0.68%
Large Cap3	0.72%	0.00%	0.03%	0.00%	0.75%
Large Cap Value3	0.81%	0.00%	0.05%	0.00%	0.86%
Lifestyle Aggressive	0.04%	0.00%	0.04%	0.86%	0.94%
Lifestyle Balanced	0.04%	0.00%	0.03%	0.76%	0.83%

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Portfolio	Management Fees	12b-1 Fees	Other Expenses	Acquired Fund Fees and Expenses	Total1 Operating Expenses
Lifestyle Conservative	0.04%	0.00%	0.03%	0.71%	0.78%
Lifestyle Growth	0.04%	0.00%	0.03%	0.76%	0.83%
Lifestyle Moderate	0.04%	0.00%	0.03%	0.74%	0.81%
Mid Cap Index3,15	0.47%	0.00%	0.03%	0.00%	0.50%
Mid Cap Intersection3	0.87%	0.00%	0.06%	0.00%	0.93%
Mid Cap Stock3	0.84%	0.00%	0.05%	0.00%	0.89%
Mid Value3,8	0.98%	0.00%	0.10%	0.00%	1.08%
Money Market B2	0.49%	0.00%	0.04%	0.00%	0.53%
Natural Resources3	1.00%	0.00%	0.08%	0.00%	1.08%
Optimized All Cap3	0.68%	0.00%	0.06%	0.00%	0.74%
Optimized Value3	0.65%	0.00%	0.05%	0.00%	0.70%
Overseas Equity3,9	0.98%	0.00%	0.14%	0.00%	1.12%
Pacific Rim3,9	0.80%	0.00%	0.25%	0.00%	1.05%
PIMCO VIT All Asset16	0.43%	0.25%	0.20%	0.76%	1.64%
Real Estate Securities3	0.70%	0.00%	0.05%	0.00%	0.75%
Real Return Bond3,9,17	0.68%	0.00%	0.06%	0.00%	0.74%
Science & Technology3,8,9	1.05%	0.00%	0.07%	0.00%	1.12%
Short-Term Bond3	0.59%	0.00%	0.07%	0.00%	0.66%
Small Cap Growth3	1.06%	0.00%	0.08%	0.00%	1.14%
Small Cap Index3,15	0.49%	0.00%	0.04%	0.00%	0.53%
Small Cap Opportunities3,13	1.00%	0.00%	0.06%	0.00%	1.06%
Small Cap Value3	1.06%	0.00%	0.06%	0.00%	1.12%
Small Company Value3,8	1.02%	0.00%	0.06%	0.00%	1.08%
Strategic Bond3,9	0.67%	0.00%	0.06%	0.00%	0.73%
Strategic Income3	0.69%	0.00%	0.08%	0.00%	0.77%
Total Bond Market B2,18	0.47%	0.00%	0.05%	0.00%	0.52%
Total Return3,17	0.69%	0.00%	0.06%	0.00%	0.75%
Total Stock Market Index3,15	0.49%	0.00%	0.04%	0.00%	0.53%
U.S. Government Securities3	0.61%	0.00%	0.09%	0.00%	0.70%
U.S. High Yield Bond3	0.73%	0.00%	0.06%	0.00%	0.79%
Utilities3,9	0.83%	0.00%	0.10%	0.00%	0.93%
Value3	0.74%	0.00%	0.06%	0.00%	0.80%

¹Total Operating Expenses may include fees and expenses incurred indirectly by a portfolio as a result of its investment in other investment companies (each an “Acquired Fund”), and in those cases the Total Operating Expenses will be expected to vary based upon an allocation of the portfolio’s assets among the Acquired Fund portfolios and upon the total annual operating expenses of these portfolios, and may be higher or lower than those shown in the table. The Total Operating Expenses shown in the table may not correlate to the portfolio’s ratio of expenses to average net assets shown in the financial highlights section in the prospectus for the portfolios, which does not include Acquired Fund fees and expenses. For the International Equity Index B portfolio, Total Operating Expenses include Acquired Fund fees and expenses which are less than 0.01%.

²John Hancock Trust (the “Trust”) sells shares of these portfolios only to certain variable life insurance and variable annuity separate accounts of ours and our affiliates. Each portfolio is subject to an agreement between the Trust and the Adviser under which the Adviser has agreed to waive its advisory fee (or, if necessary, reimburse expenses of the portfolio) in an amount so that the rate of the portfolio’ Total Operating Expenses does not exceed its net operating expenses as listed below. A portfolio’s Total Operating Expenses includes all of its ordinary operating expenses, including advisory fees and 12b-1 fees, but excludes taxes, brokerage commissions, interest, litigation and indemnification expenses and extraordinary expenses (estimated at 0.01% or less of the portfolio’s average net assets) of the portfolio not incurred in the ordinary course of the portfolio’s business. Under the agreement, the Adviser’s obligation to provide the expense cap with respect to a particular portfolio will remain in effect until May 1, 2010 and will terminate after that date only if the Trust, without the prior written consent of the Adviser, sells shares of the portfolio to (or has shares of the portfolio held by) any person other than the variable life insurance or variable annuity separate accounts of ours or any of our affiliates that are specified in the agreement. The fees shown in the table do not reflect this expense cap. If this expense cap had been reflected, the net operating expenses for the portfolios would be as

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indicated below. For more information, please see the prospectus for the participating portfolios for additional information.

Portfolio	Net Operating Expenses	Portfolio	Net Operating Expenses
500 Index B	0.25%	Money Market B	0.29%
International Equity Index B	0.35%	Total Bond Market B	0.25%

³Effective January 1, 2006, the Adviser has voluntarily agreed to waive its advisory fee for certain portfolios or otherwise reimburse the expenses of those portfolios. The reimbursement will be equal, on an annualized basis, to 0.02% of that portion of the aggregate net assets of all the participating portfolios that exceeds $50 billion. The amount of the reimbursement will be calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each portfolio. The fees shown in the table do not reflect this waiver. If all applicable waivers or reimbursements had been reflected, the net operating expenses for these portfolios would be as indicated below. For more information, please see the prospectus for the participating portfolios for additional information.

Portfolio	Net Operating Expenses	Portfolio	Net Operating Expenses	Portfolio	Net Operating Expenses
Active Bond	0.64%	Global Real Estate	1.05%	Pacific Rim	1.05%
All Cap Core	0.82%	Health Sciences	1.13%	Real Estate Securities	0.75%
All Cap Growth	0.95%	High Yield	0.72%	Real Return Bond	0.74%
All Cap Value	0.94%	International Core	1.03%	Science and Technology	1.12%
Alpha Opportunities	1.06%	International Opportunities	1.00%	Short Term Bond	0.66%
Blue Chip Growth	0.85%	International Small Cap	1.10%	Small Cap Growth	1.14%
Capital Appreciation	0.76%	International Value	0.93%	Small Cap Index	0.53%
Capital Appreciation Value	1.10%	Investment Quality Bond	0.68%	Small Cap Opportunities	1.06%
Core Allocation Plus	1.14%	Large Cap	0.75%	Small Cap Value	1.12%
Core Bond	0.71%	Large Cap Value	0.86%	Small Company Value	1.08%
Disciplined Diversification	0.70%	Mid Cap Index	0.50%	Strategic Bond	0.73%
Emerging Small Company	1.05%	Mid Cap Intersection	0.93%	Strategic Income	0.77%
Equity-Income	0.86%	Mid Cap Stock	0.89%	Total Return	0.75%
Financial Services	0.90%	Mid Value	1.08%	Total Stock Market Index	0.53%
Fundamental Value	0.81%	Natural Resources	1.08%	U.S. Government Securities	0.70%
Global	0.91%	Optimized All Cap	0.74%	U.S. High Yield Bond	0.79%
Global Allocation	1.00%	Optimized Value	0.70%	Utilities	0.93%
Global Bond	0.80%	Overseas Equity	1.12%	Value	0.80%

⁴For portfolios that have not commenced operations or have inception dates of less than six months before December 31, 2008, expenses are estimated.

⁵Capital Research Management Company voluntarily waived a portion of its management fee from September 1, 2004 through December 31, 2008. The fees shown in the table do not reflect this waiver. See the financial highlights table in the American Funds Insurance Series’ prospectus or annual report for further information.

⁶The table reflects the fees and expenses of the master and feeder portfolios. The Adviser has contractually limited other ordinary expenses at the feeder portfolio level to 0.03% until May 1, 2010, and the table reflects this limit. Other portfolio level expenses consist of operating expenses of the portfolio, excluding adviser fees, 12b-1 fees, transfer agent fees, blue sky fees, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business.

⁷The Adviser has contractually agreed to waive its management fee of 0.05% of average annual net assets until May 1, 2010. The fees shown in the table do not reflect this waiver. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the American Diversified Growth and Income, American Fundamental Holdings and American Global Diversification portfolios would be 1.27%, 1.04% and 1.27%, respectively.

⁸T. Rowe Price has voluntarily agreed to waive a portion of its subadvisory fee for certain portfolios. This waiver is based on the combined average daily net assets of these portfolios and the following funds of John Hancock Funds II: Blue Chip Growth, Equity-Income, Mid Value, Small Company Value, Spectrum Income and Real Estate Equity portfolios. The John Hancock Funds II portfolios are not offered under your policy. Based on the combined average daily net assets of the portfolios, the percentage fee reduction (as a percentage of the subadvisory fee) is as follows: 0% for the first $750 million, 5% for the next $750 million, 7.5% for the next $1.5 billion, and 10% if over $3 billion. The Adviser has also voluntarily agreed to reduce the advisory fee for each portfolio by the amount that the subadvisory fee is reduced. These voluntary fee waivers may be terminated by T. Rowe Price or the Adviser at any time. The fees shown in the table do not reflect these waivers. For more information, please see the prospectus for the underlying portfolios.

⁹ Other Expenses reflect an estimated expense based on a new custody fee pursuant to an agreement between the Trust and its custodian, which became effective on April 1, 2009.

¹⁰The Adviser has contractually agreed to reimburse ordinary expenses of the portfolio that exceed 0.02% of the average annual net assets of the portfolio. Expenses include all expenses of the portfolio except 12b-1 fees, underlying portfolio expenses, class specific expenses such

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as blue sky and transfer agency fees, portfolio brokerage, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. This reimbursement may be terminated any time after May 1, 2010. The fees shown in the table do not reflect this reimbursement. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the portfolio would be 0.54%. For more information, please see the prospectus for the underlying portfolio.

¹¹The Adviser has contractually agreed to reimburse ordinary expenses of the portfolio that exceed 0.70% of the average annual net assets of the portfolio. Expenses include all expenses of the portfolio except 12b-1 fees, class specific expenses such as blue sky and transfer agency fees, portfolio brokerage, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. This contractual reimbursement will be in effect until May 1, 2010 and thereafter until terminated by the Adviser on notice to the Trust. The fees shown in the table do not reflect this reimbursement. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the portfolio would be 0.70%. For more information, please see the prospectus for the underlying portfolio.

¹²The Adviser has contractually agreed to limit ordinary portfolio expenses to 0.025% until May 1, 2010. Portfolio expenses include advisory fees and other ordinary operating expenses of the portfolio, but exclude 12b-1fees, underlying fund expenses, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. The fees shown in the table do not reflect this waiver. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the portfolio would be 0.86%. For more information, please see the prospectus for the underlying portfolio.

¹³The Adviser has contractually agreed to waive its advisory fees so that the amount retained by the Adviser after payment of the subadvisory fees for the portfolio does not exceed 0.45% of the portfolio’s average net assets. This advisory fee waiver will remain in place until May 1, 2010. The fees shown in the table do not reflect this waiver. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the Global, International Value and Small Cap Opportunities portfolios would be 0.91%, 0.93% and 1.06%, respectively. For more information, please see the prospectus for the underlying portfolios.

¹⁴The Adviser has contractually agreed to reduce its advisory fee for a class of shares of the portfolio in an amount equal to the amount by which the ordinary expenses of such class of the portfolio exceed the expense limit (as a percentage of the average annual net assets of the portfolio attributable to the class) of 0.15% and, if necessary, to remit to that class of the portfolio an amount necessary to ensure that such expenses do not exceed that expense limit. Ordinary expenses means all the expenses of a class of a portfolio excluding advisory fees, 12b-1 fees, transfer agency fees and service fees, blue sky fees, taxes, portfolio brokerage commissions, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Trust’s business. This contractual reimbursement will be in effect until May 1, 2010 and thereafter until terminated by the Adviser on notice to the portfolio. The fees shown in the table do not reflect this reimbursement. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the portfolio would be 0.91%. For more information, please see the prospectus for the underlying portfolio.

¹⁵The Adviser has voluntarily agreed to reduce its advisory fee for a class of shares of the portfolio in an amount equal to the amount by which the ordinary expenses of such class of the portfolio exceed the expense limit (as a percentage of the average annual net assets of the portfolio attributable to the class) of 0.05% and, if necessary, to remit to that class of the portfolio an amount necessary to ensure that such expenses do not exceed that expense limit. Ordinary expenses means all the expenses of a class of the portfolio excluding advisory fees, 12b-1 fees, transfer agency fees and service fees, blue sky fees, taxes, portfolio brokerage commissions, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Trust’s business. This expense limitation will continue in effect unless otherwise terminated by the Adviser upon notice to the Trust. This voluntary expense limitation may be terminated at any time. The fees shown in the table do not reflect this expense limitation. For more information, please refer to the prospectus for the underlying portfolios.

¹⁶Management Fees for the PIMCO VIT All Asset portfolio reflect an advisory fee and supervisory and administrative fee payable by the portfolio to Pacific Investment Management Company LLC (“PIMCO”). Other Expenses reflect a service fee of 0.20%. Acquired Fund fees and expenses for the portfolio are based upon an allocation of the portfolio’s assets among the underlying portfolios and upon the total annual operating expenses of the Institutional Class of these underlying portfolios. Acquired Fund fees and expenses will vary with changes in the expenses of the underlying portfolios, as well as allocation of the portfolio’s assets, and may be higher or lower than those shown in the table. For a listing of the expenses associated with each underlying portfolio for the most recent fiscal year, please refer to the prospectus for the underlying portfolio. PIMCO has contractually agreed through May 1, 2010 to reduce its advisory fee to the extent that the underlying portfolio expenses attributable to advisory, supervisory and administrative fees exceed 0.64% of the total assets invested in the underlying portfolios. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. This expense reduction is implemented based on a calculation of Acquired Fund fees and expenses attributable to advisory, supervisory and administrative fees that are different from the calculation of Acquired Fund fees and expenses shown in the table. The fees in the table do not reflect this expense reduction. If all applicable waivers or reimbursements had been reflected, the net operating expenses for the portfolio would be 1.62%. For more information, please see the prospectus for the underlying portfolio.

¹⁷Other Expenses reflect the estimate of amounts to be paid as substitute dividend expenses on securities borrowed for the settlement of short sales.

¹⁸Other Expenses do not include an interest expense which was charged in 2008. This expense is considered extraordinary and not anticipated in the future.

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DETAILED INFORMATION

This section of the prospectus provides additional detailed information that is not contained in the Summary of Benefits and Risks section.

Table of Investment Options and Investment Subadvisers

When you select a Separate Account investment option, we invest your money in shares of a corresponding portfolio of the John Hancock Trust (the “Trust” or “JHT”) (or the PIMCO Variable Insurance Trust (the “PIMCO Trust”) with respect to the PIMCO VIT All Asset portfolio) and hold the shares in a subaccount of the Separate Account. The Fee Tables show the investment management fees, Rule 12b-1 fees and other operating expenses for these portfolio shares as a percentage (rounded to two decimal places) of each portfolio’s average net assets for 2008, except as indicated in the footnotes appearing at the end of the table. Fees and expenses of the portfolios are not fixed or specified under the terms of the policies 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 will earn on any Separate Account investment options you select.

The John Hancock Trust and the PIMCO Trust are so-called “series” type mutual funds and each is registered under the Investment Company Act of 1940 (“1940 Act”) as an open-end management investment company. John Hancock Investment Management Services, LLC (“JHIMS”) provides investment advisory services to the Trust and receives investment management fees for doing so. JHIMS pays a portion of its investment management fees to other firms that manage the Trust’s portfolios. We are affiliated with JHIMS and may indirectly benefit from any investment management fees JHIMS retains. The PIMCO VIT 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.

Each of the American Asset Allocation, American Blue Chip Income and Growth, American Bond, American Diversified Growth and Income, American Global Diversification, American Growth-Income, American Growth, American New World, American Fundamental Holdings, and American International portfolios invests in Series 1 shares of the corresponding investment portfolio of the Trust and is subject to a 0.60% Rule 12b-1 fee. The American Asset Allocation, American Growth, American International, American Growth-Income, American New World, American Blue Chip Income and Growth and American Bond portfolios operate as “feeder funds,” which means that the portfolios do not buy investment securities directly. Instead, they invest in a “master fund” which in turn purchases investment securities. Each of the American feeder fund portfolios has the same investment objective and limitations as its master fund. The prospectus for the American Fund master fund is included with the prospectuses for the underlying funds. We pay American Funds Distributors, Inc., the principal underwriter for the American Funds Insurance Series, a percentage of some or all of the amounts allocated to the “American” portfolios of the Trust for the marketing support services it provides.

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 portfolios 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 that are deducted from a portfolio’s assets for the services we or our affiliates provide to that portfolio. These compensation payments do not, however, result in any charge to you in addition to what is shown in the Fee Tables.

The following table provides a general description of the portfolios that underlie the variable investment options we make available under the policy. You bear the investment risk of any portfolio you choose as an investment option for your policy. You can find a full description of each portfolio, including the investment objectives, policies, restrictions, and risks, in the prospectus for that portfolio. You should read the portfolio’s prospectus carefully before investing in the corresponding variable investment option.

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The investment options in the Separate Account are not publicly traded mutual funds. The investment options are only available to you as investment options in the policies, 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 investment options also may be available through participation in certain qualified pension or retirement plans. The portfolios’ investment advisers and managers (i.e. subadvisers) 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 investment option 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 investment options of our Separate Account.

The portfolios available under the policies are as described in the following table:

Portfolio	Portfolio Manager	Investment Objective and Strategy
500 Index B	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a broad-based U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the S&P 500 Index* and (b) securities (which may or may not be included in the S&P 500 Index) that the subadviser believes as a group will behave in a manner similar to the index. The subadviser may determine that the portfolio’s investments in certain instruments, such as index futures, total return swaps and exchanged traded portfolios (“ETFs”) have similar economic characteristics to investments that are in the S&P 500 Index.
Active Bond	Declaration Management & Research LLC/ MFC Global Investment Management (U.S.), LLC	To seek to provide income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in a diversified mix of debt securities and instruments.
All Cap Core	Deutsche Investment Management Americas Inc.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests in common stocks, other equity securities and other asset classes of those companies within the Russell 3000 Index.*
All Cap Growth	Invesco AIM Capital Management, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests its assets principally in common stocks of companies of all market capitalizations. The subadviser focuses on stocks of companies exhibiting long-term sustainable earnings and cash flow growth that is not yet reflected in investor expectations or equity valuations.
All Cap Value	Lord, Abbett & Co., LLC	To seek capital appreciation. Under normal market conditions, the portfolio invests in equity securities of U.S. and multinational companies in all capitalization ranges that the subadviser believes are undervalued. The portfolio will invest at least 50% of its net assets in equity securities of large, seasoned companies with market capitalizations at the time of purchase that fall within the market capitalization range of the Russell 1000 Index.* This range varies daily. The portfolio will invest the remainder of its assets in mid-sized and small company securities.
Alpha Opportunities	Wellington Management Company, LLP	To seek long-term total return. The portfolio employs a “multiple sleeve structure” which means the portfolio has several components that are managed separately in different styles. The portfolio seeks to attain its objective by combining these different component styles into a single portfolio.
American Asset Allocation	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to provide high total return (including income and capital gains) consistent with preservation of capital over the long term. The portfolio invests all of its assets in Class 1 shares of the master fund, the Asset Allocation Fund, a series of American Funds Insurance Series. The master fund invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments. In addition, the master fund may invest up to 25% of its debt assets in lower quality debt securities (rated Ba or below by Moody’s and BB or below by S&P or unrated but determined to be of equivalent quality). Such securities are sometimes referred to as “junk bonds.” The master fund is designed for investors seeking above-average total return.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
American Blue Chip Income and Growth	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to produce income exceeding the average yield on U.S. stocks generally (as represented by the average yield on the S&P 500 Index*) and to provide an opportunity for growth of principal consistent with sound common stock investing. The portfolio invests all of its assets in Class 1 shares of the master fund, the Blue Chip Income and Growth portfolio, a series of American Funds Insurance Series. The master portfolio invests primarily in common stocks of larger, more established companies based in the U.S. with market capitalizations of $4 billion and above. The master fund may also invest up to 10% of its assets in common stocks of larger, non-U.S. companies, as long as they are listed or traded in the U.S. The master portfolio will invest, under normal market conditions, at least 90% of its assets in equity securities. The portfolio is designed for investors seeking both income and capital appreciation.
American Bond	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to maximize current income and preserve capital. The portfolio invests all of its assets in Class 1 shares of the master fund, the Bond portfolio, a series of American Funds Insurance Series. The master fund normally invests at least 80% of its net assets (plus borrowing for investment purposes) in bonds. The master fund will invest at least 65% of its assets in investment-grade debt securities (including cash and cash equivalents) and may invest up to 35% of its assets in bonds that are rated Ba 1 or below by Moody’s and BB+ or below by S&P or that are unrated but determined to be of equivalent quality (so called “junk bonds”). It may invest in bonds of issuers domiciled outside the U.S.. The portfolio may also invest up to 20% of its assets in preferred stocks, including convertible and non-convertible preferred stocks. The portfolio is designed for investors seeking income and more price stability than stocks, and capital preservation over the long term.
American Diversified Growth & Income	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital and income. The portfolio invests in underlying portfolios as well as other types of investments. Under normal market conditions, the portfolio will generally invest between 70% and 80% of its assets in equity securities, which include securities held by the underlying portfolios, and between 20% and 30% of its assets in fixed income securities, which include securities held by the underlying portfolios.
American Fundamental Holdings	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. The portfolio invests in underlying portfolios as well as other types of investments. The portfolio operates as a fund of funds and currently invests primarily in four underlying portfolios of the American Funds Insurance Series: Bond portfolio, Growth portfolio, Growth-Income portfolio, and International portfolio. The portfolio is permitted to invest in six other underlying portfolios of the American Funds Insurance Series: Asset Allocation portfolio, Blue Chip Income and Growth portfolio, Global Growth portfolio, Global Small Capitalization portfolio, High-Income Bond portfolio, and New World portfolio as well as other underlying portfolios. When purchasing shares of the American Funds Insurance Series, the portfolio only purchases Class 1 shares (which are not subject to Rule 12b-1 fees).
American Global Diversification	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. The portfolio invests in underlying portfolios as well as other types of investments. Under normal market conditions, the portfolio will invest a significant portion of its assets in securities, which include securities held by the underlying portfolios, that are located outside of the U.S.
American Growth	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow. The portfolio invests all of its assets in Class 1 shares of the master fund, the Growth portfolio, a series of American Funds Insurance Series. The Growth portfolio invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The Growth portfolio may also invest up to 15% of its assets in equity securities of issuers domiciled outside the U.S. and Canada. In seeking to pursue its investment objective, the portfolio may invest in the securities of issuers representing a broad range of market capitalizations. The portfolio is designed for investors seeking capital appreciation through stocks. Investors in the portfolio should have a long-term perspective and be able to tolerate potentially wide price fluctuations.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
American Growth–Income	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investments grow and to provide the shareholder with income over time. The portfolio invests all of its assets in Class 1 shares of the master portfolio, the Growth-Income portfolio, a series of American Funds Insurance Series. The Growth-Income portfolio invests primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. The Growth-Income portfolio may invest up to 15% of its assets in securities of issuers domiciled outside the U.S. and not included in the S&P 500 Index.* The portfolio is designed for investors seeking both capital appreciation and income.
American International	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow. The portfolio invests all of its assets in Class 1 shares of the master fund, the International portfolio, a series of American Funds Insurance Series. The International portfolio invests primarily in common stocks of companies located outside the U.S. The portfolio is designed for investors seeking capital appreciation through stocks. Investors in the portfolio should have a long-term perspective and be able to tolerate potentially wide price fluctuations.
American New World	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow over time. The portfolio invests all of its assets in Class 1 shares of the master fund, the New World portfolio, a series of American Funds Insurance Series. The New World portfolio invests primarily in stocks of companies with significant exposure to countries with developing economies and/or markets. The New World portfolio may also invest in debt securities of issuers, including issuers of lower rated bonds, with exposure to these countries. Under normal market conditions, the portfolio will invest at least 35% of its assets in equity and debt securities of issuers primarily based in what the subadviser deems qualified countries that have developing economies and/or markets. In addition, the portfolio may invest up to 25% of its assets in nonconvertible debt securities of issuers, including issuers of lower rated bonds (“junk bonds”) and government bonds, primarily based in qualified countries or that have a significant portion of their assets or revenues attributable to developing countries. The portfolio may also, to a limited extent, invest in securities of issuers based in nonqualified developing countries.
Balanced	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests in both equity and fixed-income securities. The portfolio employs growth, value and core approaches to allocate its assets among stocks of small, medium and large-capitalization companies in both the U.S. and foreign countries. The portfolio may purchase a variety of fixed income securities, including investment grade and below investment grade debt securities with maturities that range from short to longer term, as well as cash. Under normal market conditions, 55-75% of the portfolio will be invested in equity securities and 25-45% of the portfolio will be invested in fixed-income securities. The precise mix of equity and fixed-income securities will depend on the subadviser’s outlook for the markets and generally reflect the subadviser’s long-term, strategic asset allocation analysis. The subadviser anticipates that adjustments to the targeted asset allocation will result primarily from changes to its outlook for the global and domestic economies, industry sectors and financial markets, and its assessment of the relative attractiveness of each asset class.
Blue Chip Growth	T. Rowe Price Associates, Inc.	To seek to provide long-term growth of capital. Current income is a secondary objective. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of large and medium-sized blue chip growth companies. These are firms that, in the subadviser’s view, are well established in their industries and have the potential for above-average earnings growth.
Capital Appreciation	Jennison Associates, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity and equity related securities of companies that, at the time of investment, exceed $1 billion in market capitalization and that the subadviser believes have above-average growth prospects. These companies are generally medium to large-capitalization companies.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Capital Appreciation Value	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in common stocks of established U.S. companies that have above-average potential for capital growth. Common stocks typically constitute at least 50% of the portfolio’s total assets. The remaining assets are generally invested in other securities, including convertible securities, corporate and government debt, foreign securities, futures and options. The portfolio may invest up to 20% of its total assets in foreign securities.
Core Allocation Plus	Wellington Management Company, LLP	To seek total return, consisting of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. The portfolio will allocate its assets between fixed income securities, which may include investment grade and below investment grade debt securities with maturities that range from short to longer term, and equity securities, based upon the subadviser’s targeted asset mix, which may change over time. Under normal circumstances, the targeted asset mix may range between 50%-75% equity instruments and 25%-50% fixed income instruments and will generally reflect the subadviser’s long term, strategic asset allocation analysis. The subadviser anticipates that adjustments to the targeted asset allocation will result primarily from changes to its outlook for the global and domestic economies, industry sectors and financial markets and, to a lesser extent, its opinion of the relative attractiveness of each asset class.
Core Bond	Wells Capital Management, Incorporated	To seek total return consisting of income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in a broad range of investment grade debt securities, including U.S. Government obligations, corporate bonds, mortgage-backed and other asset-backed securities and money market instruments. The subadviser invests in debt securities that the subadviser believes offer attractive yields and are undervalued relative to issues of similar credit quality and interest rate sensitivity. The portfolio may also invest in unrated bonds that the subadviser believes are comparable to investment grade debt securities.
Core Strategy	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. Current income is also a consideration. Under normal market conditions, the portfolio invests in a number of the other index portfolios of JHT. The portfolio invests approximately 70% of its total assets in underlying portfolios which invest primarily in equity securities and approximately 30% of its total assets in underlying portfolios which invest primarily in fixed income securities.
Disciplined Diversification	Dimensional Fund Advisors LP	To seek total return consisting of capital appreciation and current income. Under normal market conditions, the portfolio invests primarily in equity securities and fixed-income securities of domestic and international issuers, including equities of issuers in emerging markets, in accordance with the following range of allocations:
		Target Allocation	Range of Allocations
		Equity Securities: 70%	65% – 75%
		Fixed-Income Securities: 30%	25% – 35%
		The portfolio may invest outside these ranges and may invest defensively during unusual or unsettled market conditions.
Emerging Small Company	RCM Capital Management, LLC	To seek long term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in securities of small cap companies. The subadviser defines small cap companies as U.S. companies that have a market capitalization that does not exceed the highest market capitalization of any company contained in either the Russell 2000 Index* or the S&P Small Cap Index.*
Equity-Income	T. Rowe Price Associates, Inc.	To seek to provide substantial dividend income and also long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities, with at least 65% in common stocks of well-established companies paying above-average dividends.
Financial Services	Davis Selected Advisers, L.P.	To seek growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks of companies that, at the time of investment, are principally engaged in financial services.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Franklin Templeton Founding Allocation	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. The portfolio operates as a fund of funds and invests in other portfolios and in other investment companies as well as other types of investments. The portfolio currently invests primarily in three underlying portfolios: Global, Income and Mutual Shares portfolios, as described in the JHT prospectus. The portfolio may purchase any portfolios except other JHT funds of funds and the American feeder funds. When purchasing shares of other JHT funds, the Franklin Templeton Founding Allocation Fund only purchases NAV shares (which are not subject to Rule 12b-1 fees).
Fundamental Value	Davis Selected Advisers, L.P.	To seek growth of capital. Under normal market conditions, the portfolio invests primarily in common stocks of U.S. companies with market capitalizations of at least $10 billion. The portfolio may also invest in companies with smaller capitalizations.
Global	Templeton Global Advisors Limited	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in the equity securities of companies located throughout the world, including emerging markets.
Global Allocation	UBS Global Asset Management (Americas) Inc.	To seek total return, consisting of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. The portfolio will allocate its assets between fixed income securities and equity securities.
Global Bond	Pacific Investment Management Company LLC	To seek maximum total return, consistent with preservation of capital and prudent investment management. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income instruments that are economically tied to at least three countries (one of which may be the U.S.), which may be represented by futures contracts (including related options) with respect to such securities, and options on such securities. These fixed income instruments may be denominated in non-U.S. currencies or in U.S. dollars, which may be represented by forwards or derivatives, such as options, futures contracts, or swap agreements.
Global Real Estate	Deutsche Investment Management Americas Inc.	To seek a combination of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. real estate investments (“REITs”), foreign entities with tax-transparent structures similar to REITs and U.S. and foreign real estate operating companies. Equity securities include common stock, preferred stock and securities convertible into common stock. The portfolio will be invested in issuers located in at least three different countries, including the U.S.
Health Sciences	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks of companies engaged, at the time of investment, in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences.
High Yield	Western Asset Management Company	To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in high yield securities, including corporate bonds, preferred stocks, U.S. Government and foreign securities, mortgage-backed securities, loan assignments or participations and convertible securities which have the following ratings (or, if unrated, are considered by the subadviser to be of equivalent quality): Corporate Bonds, Preferred Stocks and Convertible Securities
		Rating Agency
		Moody’s	Ba through C
		S&P	BB through D
International Core	Grantham, Mayo, Van Otterloo & Co, LLC	To seek high total return. Under normal market conditions, the portfolio invests at least 80% of its total assets in equity investments. The portfolio typically invests in equity investments in companies from developed markets outside the U.S. The portfolio seeks to achieve its objective by outperforming its benchmark, the MSCI EAFE Index.*

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Portfolio	Portfolio Manager	Investment Objective and Strategy
International Equity Index B	SSgA Funds Management, Inc.	To seek 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. Under normal market conditions, the portfolio invests at least 80% of its assets in securities listed in the MSCI All CountryWorld Ex U.S. Index* or American Depository Receipts or Global Depository Receipts representing such securities.
International Opportunities	Marsico Capital Management, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in common stocks of foreign companies that are selected for their long-term growth potential. The portfolio may invest in companies of any size throughout the world. The portfolio invests in issuers from at least three different countries not including the U.S. The portfolio may invest in common stocks of companies economically tied to emerging markets. Some issuers or securities in the portfolio may be based in or economically tied to the U.S.
International Small Cap	Franklin Templeton Investment Corp.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in investments of smaller companies outside the U.S., including emerging markets, which have total stock market capitalizations or annual revenues of $4 billion or less.
International Value	Templeton Investment Counsel, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests primarily in equity securities of companies located outside the U.S., including in emerging markets.
Investment Quality Bond	Wellington Management Company, LLP	To provide a high level of current income consistent with the maintenance of principal and liquidity. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in bonds rated investment grade at the time of investment. The portfolio will tend to focus on corporate bonds and U.S. government bonds with intermediate to longer term maturities.
Large Cap	UBS Global Asset Management (Americas) Inc.	To seek to maximize total return, consisting of capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. large capitalization companies. The portfolio defines large capitalization companies as those with a market capitalization range, at the time of investment, equal to that of the portfolio’s benchmark, the Russell 1000 Index.*
Large Cap Value	BlackRock Investment Management, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of large cap companies selected from those that are, at the time of purchase, included in the Russell 1000 Value Index.* The portfolio will seek to achieve its investment objective by investing primarily in a diversified portfolio of equity securities of large cap companies located in the U.S. The portfolio will seek to outperform the Russell 1000 Value Index by investing in equity securities that the subadviser believes are selling at below normal valuations.
Lifestyle Aggressive	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Current income is not a consideration. The portfolio operates as a fund of funds and, except as otherwise described below, generally invests approximately 100% of its assets in underlying portfolios that invest primarily in equity securities.
Lifestyle Balanced	MFC Global Investment Management (U.S.A.) Limited	To seek a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. The portfolio operates as a fund of funds and generally invests approximately 40% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 60% in underlying portfolios that invest primarily in equity securities.
Lifestyle Conservative	MFC Global Investment Management (U.S.A.) Limited	To seek a high level of current income with some consideration given to growth of capital. The portfolio operates as a fund of funds and generally invests approximately 80% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 20% in underlying portfolios that invest primarily in equity securities.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Lifestyle Growth	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Current income is also a consideration. The portfolio operates as a fund of funds and, except as otherwise described below, generally invests approximately 20% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 80% in underlying portfolios that invest primarily in equity securities.
Lifestyle Moderate	MFC Global Investment Management (U.S.A.) Limited	To seek a balance between a high level of current income and growth of capital, with a greater emphasis on income. The portfolio operates as a fund of funds and, except as otherwise described below, generally invests approximately 60% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 40% in underlying portfolios that invest primarily in equity securities.
Mid Cap Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a mid-cap U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the S&P MidCap 400 Index* and (b) securities (which may or may not be included in the S&P MidCap 400 Index) that the subadviser believes as a group will behave in a manner similar to the index.
Mid Cap Intersection	Wellington Management Company, LLP	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium-sized companies with significant capital appreciation potential. For the purposes of the portfolio, “medium-sized companies” are those with market capitalizations, at the time of investment, within the market capitalization range of companies represented in either the Russell MidCap Index* or the S&P MidCap 400 Index.*
Mid Cap Stock	Wellington Management Company, LLP	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium-sized companies with significant capital appreciation potential. For the portfolio, “medium-sized companies” are those with market capitalizations within the collective market capitalization range of companies represented in either the Russell MidCap Index* or the S&P MidCap 400 Index.*
Mid Value	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets in companies with market capitalizations that are within the S&P MidCap 400 Index* or the Russell MidCap Value Index.* The portfolio invests in a diversified mix of common stocks of mid-size U.S. companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation.
Money Market B	MFC Global Investment Management (U.S.A.) Limited	To seek to obtain maximum current income consistent with preservation of principal and liquidity. Under normal market conditions, the portfolio invests in high quality, U.S. dollar denominated money market instruments. Certain market conditions may cause the return of the portfolio to become low or possibly negative.
Natural Resources	Wellington Management Company, LLP	To seek long-term total return. Under normal market conditions, the portfolio will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity and equity-related securities of natural resource-related companies worldwide, including emerging markets. Natural resource-related companies include companies that own or develop energy, metals, forest products and other natural resources, or supply goods and services to such companies.
Optimized All Cap	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity securities of U.S. companies. The portfolio will focus on equity securities of U.S. companies across the three market capitalization ranges of large, mid and small.
Optimized Value	MFC Global Investment Management (U.S.A.) Limited	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity securities of U.S. companies with the potential for long-term growth of capital, with a market capitalization range, at the time of investment, equal to that of the portfolio’s benchmark, the Russell 1000 Value Index.*

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Overseas Equity	Capital Guardian Trust Company	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of a diversified mix of large established and medium-sized foreign companies located primarily in developed countries (outside of the U.S.) and, to a lesser extent, in emerging markets.
Pacific Rim	MFC Global Investment Management (U.S.A.) Limited	To seek to achieve long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks and equity-related securities of established, larger-capitalization non-U.S. companies located in the Pacific Rim region, including emerging markets, that have attractive long-term prospects for growth of capital. Current income from dividends and interest will not be an important consideration in the selection of portfolio securities.
PIMCO VIT All Asset (a series of PIMCO Variable Insurance Trust) (only Class M is available for sale)	Pacific Investment Management Company LLC	To seek maximum real return consistent with preservation of real capital and prudent investment management. The portfolio invests primarily in a diversified mix of: (a) common stocks of large and mid sized U.S. companies, and (b) bonds with an overall intermediate term average maturity.
Real Estate Securities	Deutsche Investment Management Americas Inc.	To seek to achieve a combination of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of real estate investments and real estate companies. Equity securities include common stock, preferred stock and securities convertible into common stock.
Real Return Bond	Pacific Investment Management Company LLC	To seek maximum real return, consistent with preservation of real capital and prudent investment management. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus borrowings for investment purposes) in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. Governments, their agencies or instrumentalities and corporations, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.
Science & Technology	T. Rowe Price Associates, Inc. RCM Capital Management LLC	To seek long-term growth of capital. Current income is incidental to the portfolio’s objective. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of companies expected to benefit from the development, advancement, and/or use of science and technology. For purposes of satisfying this requirement, common stock may include equity linked notes and derivatives relating to common stocks, such as options on equity linked notes.
Short-Term Bond	Declaration Management & Research, LLC	To seek income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) at the time of investment in a diversified mix of debt securities and instruments. The securities and instruments will have an average credit quality rating of “A” or “AA” and a weighted average effective maturity between one and three years, and no more than 15% of the portfolio’s net assets will be invested in high yield bonds.
Small Cap Growth	Wellington Management Company, LLP	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in small-cap companies. For the purposes of the portfolio, “small-cap companies” are those with market capitalizations, at the time of investment, not exceeding the maximum market capitalization of any company represented in either the Russell 2000 Index* or the S&P SmallCap 600.*
Small Cap Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a small-cap U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the Russell 2000 Index* and (b) securities (which may or may not be included in the Russell 2000 Index) that the subadviser believes as a group will behave in a manner similar to the index.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Small Cap Opportunities	Invesco AIM Capital Management, Inc. & Dimensional Fund Advisors LP	To seek long-term capital appreciation. Under normal market conditions, Invesco AIM Capital Management, Inc. invests at least 80% of its subadvised net assets (plus any borrowings for investment purposes) in equity securities of small-capitalization companies. Dimensional Fund Advisors LP generally will invest its subadvised net assets in a broad and diverse group of readily marketable common stocks of small and mid cap companies traded on a principal U.S. exchange or on the over-the-counter market that Dimensional Fund Advisers LP determines to be value stocks at the time of purchase.
Small Cap Value	Wellington Management Company, LLP	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in small-cap companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation. For the purposes of the portfolio, “small-cap companies” are those with market capitalizations, at the time of investment, not exceeding the maximum market capitalization of any company represented in either the Russell 2000 Index* or the S&P Small Cap 600 Index.*
Small Company Value	T. Rowe Price Associates, Inc.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in companies with market capitalizations, at the time of investment, that do not exceed the maximum market capitalization of any security in the Russell 2000 Index.* The portfolio invests in small companies whose common stocks are believed to be undervalued.
Strategic Bond	Western Asset Management Company	To seek a high level of total return consistent with preservation of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities.
Strategic Income	MFC Global Investment Management (U.S.) LLC	To seek a high level of current income. Under normal market conditions, the portfolio invests at least 80% of its assets in the following types of securities: foreign government and corporate debt securities from developed and emerging markets, U.S. Government and agency securities, and domestic high-yield bonds.
Total Bond Market B	Declaration Management & Research LLC	To seek to track the performance of the Barclays Capital U.S. Aggregate Bond Index** (which represents the U.S. investment grade bond market). Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in securities listed in the Barclays Capital U.S. Aggregate Bond Index.
Total Return	Pacific Investment Management Company LLC	To seek maximum total return, consistent with preservation of capital and prudent investment management. Under normal market conditions, the portfolio invests at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives, such as options, futures contracts, or swap agreements.
Total Stock Market Index	MFC Global Investment Management (U.S.A.) Limited	Seeks to approximate the aggregate total return of a broad U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the Wilshire 5000 Total Market Index* and (b) securities (which may or may not be included in the Wilshire 5000 Total Market Index) that the subadviser believes as a group will behave in a manner similar to the index.
U.S. Government Securities	Western Asset Management Company	To obtain a high level of current income consistent with preservation of capital and maintenance of liquidity. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and derivative securities such as collateralized mortgage obligations backed by such securities and futures contracts. The portfolio may invest the balance of its assets in non-U.S Government securities including, but not limited to, fixed rate and adjustable rate mortgage-backed securities, asset-backed securities, corporate debt securities and money market instruments.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
U.S. High Yield Bond	Wells Capital Management Incorporated	To seek total return with a high level of current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in U.S. corporate debt securities that are, at the time of investment, below investment grade, including preferred and other convertible securities in below investment grade debt securities (sometimes referred to as “junk bonds” or high yield securities). The portfolio also invests in corporate debt securities and may buy preferred and other convertible securities and bank loans.
Utilities	MFS Investment Management	To seek capital growth and current income (income above that available from the portfolio invested entirely in equity securities). Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in securities of companies in the utilities industry. Securities in the utilities industry may include equity and debt securities of domestic and foreign companies (including emerging markets).
Value	Van Kampen Investments	To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. Under normal market conditions, the portfolio invests in equity securities of companies with capitalizations, at the time of investment, similar to the market capitalization of companies in the Russell MidCapValue Index.*

*“Wilshire 5000 Total Market Index ^®” is a trademark of Wilshire Associates. “MSCI All Country World Ex US Index” is a trademark of Morgan Stanley & Co. Incorporated. “Russell 1000, ^®” “Russell 2000, ^®” “Russell 1000 Value, ^®” “Russell 3000, ^®” “Russell MidCap, ^®” and “Russell MidCap Value ^®” are trademarks of Frank Russell Company. “S&P 500, ^®” “S&P MidCap 400, ^®” and “S&P SmallCap 600 ^®” are trademarks of The McGraw-Hill Companies, Inc. None of the portfolios are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the portfolios.

The indices referred to in the portfolio descriptions track companies having the ranges of approximate market capitalization, as of February 28, 2009, set out below:

Wilshire 5000 Total Market Index — $1 million to $385 billion

MSCI All Country World Ex US Index — $199 million to $176 billion

MSCI EAFE Index — $199 million to $126 billion

Russell 1000 Index — $41 million to $337.9 billion

Russell 1000 Value Index — $41 million to $337.9 billion

Russell 2000 Index — $3.2 million to $3.7 billion

Russell 3000 Index — $3 million to $337.9 billion

Russell MidCap Index — $41 million to $13.8 billion

Russell MidCap Value Index — $41 million to $13.8 billion

S&P 500 Index — $224 million to $337.9 billion

S&P MidCap 400 Index — $42 million to $4.6 billion

S&P SmallCap 600 Index — $200 million to $1 billion

**The Barclays Capital U.S. Aggregate Bond Index (which represents the U.S. investment grade bond market) is a bond index that relies on indicators such as quality, liquidity, term and duration as relevant measures of performance.

If the 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 of the Trust or another open-end registered investment company. 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 appropriate insurance regulatory authorities and the SEC (to the extent required by the 1940 Act).

We will purchase and redeem series fund shares for the Account at their net asset value without any sales or redemption charges. Shares of a series fund represent an interest in one of the funds of the series fund which corresponds to a subaccount of the Account. Any dividend or capital gains distributions received by the Account will be reinvested in shares of that same fund at their net asset value as of the dates paid.

On each business day, shares of each series fund are purchased or redeemed by us for each subaccount based on, among other things, the amount of net premiums allocated to the subaccount, distributions reinvested, and transfers to, from and among subaccounts, all to be effected as of that date. Such purchases and redemptions are effected at each series fund’s net asset value per share determined for that same date. A “business day” is any date on which the New York Stock Exchange is open for trading. We compute policy values for each business day as of the close of that day (usually 4:00 p.m. Eastern time).

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We will vote shares of the portfolios held in the Account at the shareholder meetings according to voting instructions received from persons having the voting interest under the policies. We will determine the number of portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. Proxy material will be distributed to each person having the voting interest under the contract together with appropriate forms for giving voting instructions. We will vote all portfolio shares that we hold (including our own shares and those we hold in the Account for policy owners) in proportion to the instructions so received. The effect of this proportional voting is that a small number of policy owners can determine the outcome of a vote.

We determine the number of a series fund’s shares held in a subaccount attributable to each owner by dividing the amount of a policy’s account value held in the subaccount by the net asset value of one share in the series fund. Fractional votes will be counted. We determine the number of shares as to which the owner may give instructions as of the record date for a series fund’s meeting. Owners of policies may give instructions regarding the election of the Board of Trustees or Board of Directors of a series fund, ratification of the selection of independent auditors, approval of series fund investment advisory agreements and other matters requiring a shareholder vote. We will furnish owners with information and forms to enable owners to give voting instructions. However, we may, in certain limited circumstances permitted by the SEC’s rules, disregard voting instructions. If we do disregard voting instructions, you will receive a summary of that action and the reasons for it in the next semi-annual report to owners.

The voting privileges described above reflect our understanding of applicable Federal securities law requirements. To the extent that applicable law, regulations or interpretations change to eliminate or restrict the need for such voting privileges, we reserve the right to proceed in accordance with any such revised requirements. We also reserve the right, subject to compliance with applicable law, including approval of owners if so required, (1) to transfer assets determined by John Hancock NY to be associated with the class of policies to which your policy belongs from the Account to another separate account or subaccount, (2) to deregister the Account under the 1940 Act, (3) to substitute for the fund shares held by a subaccount any other investment permitted by law, and (4) to take any action necessary to comply with or obtain any exemptions from the 1940 Act. Any such change will be made only if, in our judgment, the change would best serve the interests of owners of policies in your policy class or would be appropriate in carrying out the purposes of such policies. We would notify owners of any of the foregoing changes and to the extent legally required, obtain approval of affected owners and any regulatory body prior thereto. Such notice and approval, however, may not be legally required in all cases.

Description of John Hancock NY

John Hancock NY is a stock life insurance company organized under the laws of New York on February 10, 1992. Our principal office is located at 100 Summit Lake Drive, Second Floor, Valhalla, New York 10595. We are a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.). Our ultimate parent is Manulife Financial Corporation (“MFC”), a publicly traded company based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial. However, neither John Hancock NY nor any of its affiliated companies guarantees the investment performance of the Account.

We are ranked and rated by independent financial rating services, which may include Moody’s, Standard & Poor’s, Fitch and A.M. Best. The purpose of these ratings is to reflect the financial strength or claims-paying ability of the company, but they do not specifically relate to its products, the performance (return) of these products, the value of any investment in these products upon withdrawal or to individual securities held in any portfolio. These ratings do not apply to the safety and performance of the Separate Account.

Description of Separate Account B

The investment accounts shown on page 1 are in fact subaccounts of Separate Account B, a separate account operated by us under New York law. The Account meets the definition of “separate account” under the Federal securities laws and is registered as a unit investment trust under the 1940 Act. Such registration does not involve supervision by the SEC of the management of the Account or of us.

The Account’s assets are our property. Each policy provides that amounts we hold in the Account pursuant to the policies cannot be reached by any other persons who may have claims against us and can’t be used to pay any indebtedness of John Hancock NY other than those arising out of policies that use the Account. Income, gains and losses credited to, or charged against, the Account reflect the Account’s own investment experience and not the investment experience of John Hancock NY’s other assets.

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New subaccounts may be added and made available to policy owners from time to time. Existing subaccounts may be modified or deleted at any time.

The fixed account

Our obligations under any fixed account are backed by our general account assets. Our general account consists of assets owned by us other than those in the Account and in other separate accounts that we may establish. Subject to applicable law, we have sole discretion over the investment of assets of the general account and policy owners do not share in the investment experience of, or have any preferential claim on, those assets. Instead, we guarantee that the policy value allocated to any fixed account will accrue interest daily at an effective annual rate that we determine without regard to the actual investment experience of the general account. We currently offer only one fixed account — the standard fixed account. The effective annual rate we declare for the fixed account will never be less than 3%. We reserve the right to offer one or more additional fixed accounts with characteristics that differ from those of the current fixed account, but we are under no obligation to do so.

Because of exemptive and exclusionary provisions, interests in our fixed account have not been and will not be registered under the Securities Act of 1933 (“1933 Act”) and our general account has not been registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are subject to the provisions of these acts, and we have been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to any fixed account. Disclosure regarding fixed accounts, however, is subject to certain generally-applicable provisions of the Federal securities laws relating to accuracy and completeness of statements made in prospectuses.

The death benefit

In your application for the policy, you will tell us how much life insurance coverage you want on the life of the insured person. This is called the “Total Face Amount.” Total Face Amount is composed of the Base Face Amount and any Supplemental Face Amount you elect. The Supplemental Face Amount you can have generally cannot exceed 900% of the Base Face Amount at the Issue Date. Thereafter, increases to the Supplemental Face Amount cannot exceed 400% of the Total Face Amount at the Issue Date. There are a number of factors you should consider in determining whether to elect coverage in the form of Base Face Amount or in the form of Supplemental Face Amount. These factors are discussed under “Base Face Amount vs. Supplemental Face Amount” below.

When the insured person dies, we will pay the death benefit minus any outstanding policy debt and unpaid fees and charges. There are two ways of calculating the death benefit. You must choose which one you want in the application. The two death benefit options are described below.

• Option 1 - The death benefit will equal the greater of (1) the Total Face Amount, or (2) the minimum death benefit (as described below).

• Option 2 - The death benefit will equal the greater of (1) the Total Face Amount plus the policy value on the date of death, or (2) the minimum death benefit.

For the same premium payments, the death benefit under Option 2 will tend to be higher than the death benefit under Option 1. On the other hand, the monthly insurance charge will be higher under Option 2 to compensate us for the additional insurance risk. Because of that, the policy value will tend to be higher under Option 1 than under Option 2 for the same premium payments.

Limitations on payment of death benefit

If the insured person commits suicide within two years from the Issue Date of the policy, the amount payable will be equal to the premiums paid, less the amount of any policy debt on the date of death, and less any withdrawals.

Also if an application misstated the age or sex of the insured person, we will adjust, if necessary, the Base Face Amount, any Supplemental Face Amount, and every other benefit to that which would have been purchased at the correct age or sex by the most recent cost of insurance charge.

Base Face Amount vs. Supplemental Face Amount

As noted above, you should consider a number of factors in determining whether to elect coverage in the form of Base Face Amount or in the form of Supplemental Face Amount.

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For the same amount of premiums paid, the amount of the Face Amount charge deducted from policy value and the amount of compensation paid to the selling insurance agent will generally be less if coverage is included as Supplemental Face Amount, rather than as Base Face Amount. On the other hand, the amount of any Supplemental Face Amount included in the calculation of the death benefit at and after the policy anniversary nearest the insured person’s 100^th birthday will be limited to the lesser of the current Supplemental Face Amount or the policy value.

If your priority is to reduce your Face Amount charges, you may wish to maximize the proportion of the Supplemental Face Amount. However, if your priority is to maximize the death benefit when the insured person reaches age 100, then you may wish to maximize the proportion of the Base Face Amount.

The minimum death benefit

In order for a policy to qualify as life insurance under Federal tax law, there has to be a minimum amount of insurance in relation to policy value. There are two tests that can be applied under Federal tax law — the “guideline premium test” and the “cash value accumulation test.” You must elect which test you wish to have applied at issue. Once elected, the test cannot be changed without our approval.

Under the guideline premium test, we compute the minimum death benefit each business day by multiplying the policy value (and any benefit under the Enhanced Cash Value Rider) on that date by the death benefit factor applicable on that date. Factors for some ages are shown in the table below:

Attained Age	Applicable Factor
40 and under	250%
45	215%
50	185%
55	150%
60	130%
65	120%
70	115%
75	105%
90	105%
95 and above	100%

A table showing the factor for each age will appear in the policy.

Under the cash value accumulation test, we compute the minimum death benefit each business day by multiplying the policy value (and any benefit under the Enhanced Cash Value Rider) on that date by the death benefit factor applicable on that date. The factor decreases as attained age increases. A table showing the factor for each age will appear in the policy.

The cash value accumulation test may be preferable if you want to fund the policy so that the minimum death benefit will increase earlier than would be required under the guideline premium test, or if you want to fund the policy at the “7 pay” limit for the full seven years (see “Tax considerations”).

To the extent that the calculation of the minimum death benefit under the selected life insurance qualification test causes the death benefit to exceed our limits, we reserve the right to return premiums or distribute a portion of the policy value so that the resulting amount of insurance is maintained within our limits. Alternatively, if we should decide to accept the additional amount of insurance, we may require additional evidence of insurability.

When the insured person reaches 100

At and after the policy anniversary nearest the insured person’s 100^th birthday, the following will occur:

• Any Supplemental Face Amount will be limited (see “Base Face Amount vs. Supplemental Face Amount”).

• We will stop deducting any monthly deductions.

• We will stop accepting any premium payments.

Requesting an increase in coverage

After the first policy year, you may make a written request for an unscheduled increase in the Supplemental Face Amount. We must receive your written request within two months of your next policy anniversary. Generally, each such

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increase must be at least $50,000. However, you will have to provide us with evidence that the insured person qualifies for the same risk classification that applied to them at issue. Generally, any increase will be effective on the next policy anniversary following the date we approve the request.

Requesting a decrease in coverage

After the first policy year, we may approve a reduction in the Base Face Amount or the Supplemental Face Amount, but only if:

• the remaining Total Face Amount will be at least $100,000,

• the remaining Base Face Amount will be at least $50,000, and

• the remaining Total Face Amount will at least equal the minimum required by the tax laws to maintain the policy’s life insurance status.

An approved decrease will take effect on the monthly deduction date on or next following the date we approve the request. We reserve the right to require that the Supplemental Face Amount be fully depleted before the Base Face Amount can be reduced.

Change of death benefit option

The death benefit option may be changed from Option 2 to Option 1 after the first policy year. We reserve the right to limit a request for a change if the change would cause the policy to fail to qualify as life insurance for tax purposes. We will not allow a change in death benefit option if it would cause the Total Face Amount to decrease below $100,000.

A change in the death benefit option from Option 2 to Option 1 will result in a change in the policy’s Total Face Amount, in order to avoid any change in the amount of the death benefit. The new Total Face Amount will be equal to the Total Face Amount prior to the change plus the policy value as of the date of the change. The change will take effect on the monthly deduction date on or next following the date the written request for the change is received at our Service Office.

If you change the death benefit option, the Federal tax law test (“guideline premium test” or “cash value accumulation test”) that you elected at issue will continue to apply. Please read “The minimum death benefit” for more information about these Federal tax laws tests.

Tax consequences of coverage changes

A change in the death benefit option or Total Face Amount will often change the policy’s limits under the Federal tax law test that you elected. To avoid having the policy cease to qualify as life insurance for tax purposes, we reserve the right to (i) refuse or limit a change in the death benefit option or Total Face Amount and (ii) change the Guideline Single Premium or Guideline Level Premium, as applicable. Please read “Tax considerations” to learn about possible tax consequences of changing your insurance coverage under the policy.

Your beneficiary

You name your beneficiary when you apply for the policy. The beneficiary is entitled to the proceeds we pay following the insured person’s death. You may change the beneficiary during the insured person’s lifetime. Such a change requires the consent of any named irrevocable beneficiary. A new beneficiary designation will not affect any payments we make before we receive it. If no beneficiary is living when the insured person dies, we will pay the insurance proceeds to the owner or the owner’s estate.

Ways in which we pay out policy proceeds

You may choose to receive proceeds from the policy as a single sum. This includes proceeds that become payable because of death or surrender. Alternatively, you can select to have proceeds of $1,000 or more applied to any of the other payment options we may offer at the time. You cannot choose an option if the monthly payments under the option would be less than $50. We will issue a supplementary agreement when the proceeds are applied to any alternative payment option. That agreement will spell out the terms of the option in full. If no alternative payment option is chosen, proceeds may be paid as a single sum.

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Changing a payment option

You can change the payment option at any time before the proceeds are payable. If you haven’t made a choice, the payee of the proceeds has a prescribed period in which he or she can make that choice.

Tax impact of payment option chosen

There may be tax consequences to you or your beneficiary depending upon which payment option is chosen. You should consult with a qualified tax adviser before making that choice.

Premiums

Planned premiums

The Policy Specifications page of your policy will show the “Planned Premium” for the policy. You choose this amount in the policy application. You will also choose how often to pay premiums — annually, semi-annually, quarterly or monthly. The premium reminder notice we send you is based on the amount and period you choose. However, payment of Planned Premiums is not necessarily required. You need only pay enough premium to keep the policy in force (see “Lapse and reinstatement”).

Minimum initial premium

The Minimum Initial Premium is set forth in the Policy Specifications page of your policy. After the payment of the initial premium, premiums may be paid at any time and in any amount until the insured person’s attained age 100, subject to the limitations on premium amount described below.

Maximum premium payments

Federal tax law limits the amount of premium payments you can make relative to the amount of your policy’s insurance coverage. We will not knowingly accept any amount by which a premium payment exceeds this limit. If you exceed certain other limits, the law may impose a penalty on amounts you take out of your policy. More discussion of these tax law requirements is provided under “Tax considerations.”

Large premium payments may expose us to unanticipated investment risk, and we will generally refuse to accept premiums in excess of the Maximum Annual Premium limit set forth in the Policy Specifications. In addition, in order to limit our investment risk exposure under certain market conditions, we may refuse to accept additional premium payments that are not in excess of the Maximum Annual Premium limit.nbsp; This may be the case, for example, in an environment of decreasing interest rates, where we may not be able to acquire investments for our general account that will sufficiently match the liabilities we are incurring under our fixed account guarantees. Excessive allocations may also interfere with the effective management of our variable investment account portfolios, if we are unable to make an orderly investment of the additional premium into the portfolios. Also, we may refuse to accept an amount of additional premium if the amount of the additional premium would increase our insurance risk exposure, and the insured person doesn’t provide us with adequate evidence that he or she continues to meet our requirements for issuing insurance.

We will notify you in writing of our refusal to accept additional premium under these provisions within three days following the date that it is received by us, and will promptly thereafter take the necessary steps to return the premium to you. Notwithstanding the foregoing limits on the additional premium that we will accept, we will not refuse to accept any premium necessary to prevent the policy from terminating.

Processing premium payments

No premiums will be accepted prior to our receipt of a completed application at our Service Office. All premiums received prior to the Issue Date of the policy will be held in the general account and credited with interest from the date of receipt at the rate then being earned on amounts allocated to the Money Market B investment account. All premiums received on or after the Issue Date, but prior to the Allocation Date, will be held in the Money Market B investment account. The “Allocation Date” of the policy is the 10th day after the Issue Date. The Issue Date is shown on the Policy Specifications page of the policy. On the Allocation Date, the Net Premiums paid plus interest credited, if any, will be allocated among the investment accounts or the fixed account in accordance with the policy owner’s instructions. The “Net Premium” is the premium paid less the premium charge we deduct from it.

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Any Net Premium received on or after the Allocation Date will be allocated among investment accounts or the fixed account as of the business day on or next following the date the premium is received at the Service Office. Monthly deductions are normally due on the Policy Date and at the beginning of each policy month thereafter. However, if the monthly deductions are due prior to the Contract Completion Date, they will be deducted from policy value on the Contract Completion Date instead of the dates they were due (see “Procedures for issuance of a policy” for the definition of “Contract Completion Date”).

Payment of premiums will not guarantee that the policy will stay in force. Conversely, failure to pay premiums will not necessarily cause the policy to lapse.

Ways to pay premiums

If you pay premiums by check or money order, they must be drawn on a U.S. bank in U.S. dollars and made payable to “John Hancock.” We will not accept credit card checks. We will not accept starter or third party checks if they fail to satisfy our administrative requirements. Premiums after the first must be sent to the John Hancock NY Service Office at the appropriate address shown on the back cover of this prospectus. We will also accept premiums by wire or by exchange from another insurance company.

Lapse and reinstatement

Lapse

A policy will go into default if at the beginning of any policy month the policy’s net cash surrender value would be zero or below after deducting the monthly deductions then due. Therefore, a policy could lapse eventually if increases in policy value (prior to deduction of policy charges) are not sufficient to cover policy charges. A lapse could have adverse tax consequences as described under “Tax considerations.” We will notify you of the default and will allow a 61 day grace period in which you may make a premium payment sufficient to bring the policy out of default. The required payment will be equal to the amount necessary to bring the net cash surrender value to zero, if it was less than zero on the date of default, plus the monthly deductions due at the date of default and payable at the beginning of each of the two policy months thereafter, plus any applicable premium charge. If the required payment is not received by the end of the grace period, the policy will terminate (i.e., “lapse”) with no value.

Death during grace period

If the insured person should die during the grace period, the policy value used in the calculation of the death benefit will be the policy value as of the date of default and the insurance benefit will be reduced by any outstanding monthly deductions due at the time of death.

Reinstatement

You can reinstate a policy that has gone into default and terminated at any time within 21 days following the date of termination without furnishing evidence of insurability, subject to the following conditions:

(a)	The insured person’s risk classification is standard or preferred, and
(b)	The insured person’s attained age is less than 46.

By making a written request, you can reinstate a policy that has gone into default and terminated at any time within the three-year period following the date of termination subject to the following conditions:

(a)	You must provide to us evidence of the insured person’s insurability that is satisfactory to us; and
(b)	You must pay a premium equal to the amount that was required to bring the policy out of default immediately prior to termination, plus the amount needed to keep the policy in force to the next scheduled date for payment of the Planned Premium.

If the reinstatement is approved, the date of reinstatement will be the later of the date we approve your request or the date the required payment is received at our Service Office. The policy value on the date of reinstatement, prior to the crediting of any Net Premium paid in connection with the reinstatement, will be equal to the policy value on the date the policy terminated. Any policy debt not paid upon termination of a policy will be reinstated if the policy is reinstated.

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The incontestability provisions will apply from the effective date of reinstatement. A surrendered policy cannot be reinstated.

The policy value

From each premium payment you make, we deduct the applicable premium charges described under “Deduction from premium payments.” We invest the rest (known as the “Net Premium”) in the accounts (fixed or investment) you’ve elected. Special investment rules apply to premiums processed prior to the Allocation Date (see “Processing premium payments”).

Over time, the amount you’ve invested in any investment account will increase or decrease the same as if you had invested the same amount directly in the corresponding underlying portfolio and had reinvested all portfolios’ dividends and distributions in additional portfolio shares, except that we will deduct certain additional charges which will reduce your policy value. We describe these charges under “Description of charges at the policy level.”

We calculate the unit values for each investment account once every business day as of the close of trading on the New York Stock Exchange, usually 4:00 p.m. Eastern time. Sales and redemptions within any investment account will be transacted using the unit value next calculated after we receive your request either in writing or other form that we specify. If we receive your request before the close of our business day, we’ll use the unit value calculated as of the end of that business day. If we receive your request at or after the close of our business day, we’ll use the unit value calculated as of the end of the next business day. If a scheduled transaction falls on a day that is not a business day, we’ll process it as of the end of the next business day.

The amount you’ve invested in the fixed account will earn interest at the rates we declare from time to time. For the fixed account, we guarantee that this rate will be at least 3%. If you want to know what the current declared rate is for the fixed account, just call or write to us. The asset-based risk charge only applies to that portion of the policy value held in the investment accounts. The charge determined does not apply to the fixed account. Otherwise, the policy level charges applicable to the fixed account are the same as those applicable to the investment accounts. We reserve the right to offer one or more additional fixed accounts with characteristics that differ from those of the current fixed account, but we are under no obligation to do so.

Allocation of future premium payments

At any time, you may change the accounts (fixed or investment) in which future premium payments will be invested. You make the original allocation in the application for the policy. The percentages you select must be in whole numbers and must total 100%.

Transfers of existing policy value

You may also transfer your existing policy value from one account (fixed or investment) to another. To do so, you must tell us how much to transfer, either as a whole number percentage or as a specific dollar amount. A confirmation of each transfer will be sent to you. Without our approval, the maximum amount you may transfer to or from any account in any policy year is $1,000,000.

The policies are not designed for professional market timing organizations or other persons or entities that use programmed or frequent transfers among investment accounts. As a consequence, we have reserved the right to impose limits on the number and frequency of transfers into and out of investment accounts and to impose a fee of up to $25 for any transfer beyond an annual limit (which will not be less than twelve). No transfer fee will be imposed on any transfer from an investment account into a fixed account if the transfer occurs during the following periods:

• within 18 months after the policy’s Issue Date, or

• within 60 days after the later of the effective date of a material change in the investment objectives of any investment account or the date you are notified of the change.

Subject to the restrictions set forth below, you may transfer existing policy value into or out of investment accounts. Transfers out of a fixed account are subject to additional limitations noted below.

Our current practice is to restrict transfers into or out of investment accounts to two per calendar month (except with respect to those policies described in the following paragraphs). For purposes of this restriction, and in applying the limitation on the number of free transfers, any transfers made during the period from the opening of a business day (usually 9:00 a.m. Eastern time) to the close of that business day (usually 4:00 p.m. Eastern time) are considered one transfer. You may, however,

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transfer to the Money Market B investment account even if the two transfer per month limit has been reached, but only if 100% of the account value in all investment accounts is transferred to the Money Market B investment account. If such a transfer to the Money Market B investment account is made, then for the 30 calendar day period after such transfer no transfers from the Money Market B investment account to any other accounts (fixed or investment) may be made. If your policy offers a dollar cost averaging or automatic asset allocation rebalancing program, any transfers pursuant to such program are not considered transfers subject to these restrictions on frequent trading. The restrictions described in this paragraph will be applied uniformly to all policy owners subject to the restrictions.

Policies such as yours may be purchased by a corporation or other entity as a means to informally finance the liabilities created by an employee benefit plan, and to this end the entity may aggregately manage the policies purchased to match its liabilities under the plan. Policies sold under these circumstances are subject to special transfer restrictions. In lieu of the two transfers per month restriction, we will allow the policy owner under these circumstances to rebalance the investment options in its policies within the following limits: (i) during the 10 calendar day period after any policy values are transferred from one investment account into a second investment account, the values can only be transferred out of the second investment account if they are transferred into the Money Market B investment account; and (ii) any policy values that would otherwise not be transferable by application of the 10 day limit described above and that are transferred into the Money Market B investment account may not be transferred out of the Money Market B investment account into any other accounts (fixed or investment) for 30 calendar days. The restrictions described in this paragraph will be applied uniformly to all policy owners subject to the restrictions.

Subject to our approval, we may offer policies purchased by a corporation or other entity that has purchased policies to match its liabilities under an employee benefit plan, as described above, the ability to electronically rebalance the investment options in its policies. Under these circumstances, in lieu of imposing any specific limit upon the number and timing of transfers, we will monitor aggregate trades among the subaccounts for frequency, pattern and size for potentially harmful investment practices. If we detect trading activity that we believe may be harmful to the overall operation of any investment account or underlying portfolio, we may impose conditions on policies employing electronic rebalancing to submit trades, including setting limits upon the number and timing of transfers, and revoking privileges to make trades by any means other than written communication submitted via U.S. mail.

While we seek to identify and prevent disruptive frequent trading activity, it may not always be possible to do so. Therefore no assurance can be given that the restrictions we impose will be successful in preventing all disruptive frequent trading and avoiding harm to long-term investors. The restrictions described in these paragraphs will be applied uniformly to all policy holders subject to the restrictions.

Rule 22c-2 under the 1940 Act requires us to provide tax identification numbers and other policy owner transaction information to the Trust or to other investment companies in which the Separate Account invests, at their request. An investment company will use this information to identify any pattern or frequency of investment account transfers that may violate their frequent trading policy. An investment company may require us to impose trading restrictions in addition to those described above if violations of their frequent trading policy are discovered.

Transfers out of the fixed account option are limited to the greater of (i) the fixed account maximum transfer amount of $2,000, or (ii) the fixed account maximum transfer percentage of 25% multiplied by the amount of the fixed account on the immediately preceding policy anniversary. Any transfer which involves a transfer out of the fixed account may not involve a transfer to the Money Market B investment account.

We reserve the right to impose a minimum amount limit on transfers out of any fixed account. We also reserve the right to impose different restrictions on any additional fixed account that we may offer in the future.

Dollar cost averaging. We may offer policy owners a dollar cost averaging (“DCA”) program. Under the DCA program, you will designate an amount that will be transferred monthly from one investment account into any other investment account(s) or the fixed account. If insufficient funds exist to effect a DCA transfer, the transfer will not be effected and you will be so notified. No fee is charged for this program.

We reserve the right to cease to offer this program as of 90 days after written notice is sent to you.

Asset allocation balancer transfers. Under the asset allocation balancer program you will designate an allocation of policy value among investment accounts. We will move amounts among the investment accounts at specified intervals you select - annually, semi-annually, quarterly or monthly. A change to your premium allocation instructions will automatically

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result in a change in asset allocation balancer instructions so that the two are identical unless you either instruct us otherwise or have elected the dollar cost averaging program. No fee is charged for this program.

We reserve the right to cease to offer this program as of 90 days after written notice is sent to you.

Surrender and withdrawals

Surrender

You may surrender your policy in full at any time. If you do, we will pay you the policy value less any policy debt. This is called your “net cash surrender value.” You must return your policy when you request a surrender. We will process surrenders on the day we receive the surrender request (unless such day is not a business day, in which case we will process surrenders as of the business day next following the date of the receipt).

Withdrawals

After the first policy year, you may make a withdrawal of part of your net cash surrender value once in each policy month. Generally, each withdrawal must be at least $500. There is a withdrawal fee for each withdrawal of the lesser of 2% of the withdrawal amount or $25. We will automatically reduce the policy value of your policy by the amount of the withdrawal fee. Unless otherwise specified by you, each account (fixed and investment) will be reduced in the same proportion as the policy value is then allocated among them. We will not permit a withdrawal if it would cause your net cash surrender value to fall below 3 months’ worth of monthly deductions (see “Deductions from policy value”). We also reserve the right to refuse any withdrawal that would cause the policy’s Total Face Amount to fall below $100,000 or the Base Face Amount to fall below $50,000.

Because it reduces the policy value, any withdrawal will reduce your death benefit under either Option 1 or Option 2 (see “The death benefit”). Under Option 1, such a withdrawal may also reduce the Total Face Amount. Generally, any such reduction in the Total Face Amount will be implemented by first reducing any Supplemental Face Amount then in effect. We may approve reductions in the Base Face Amount prior to eliminating the Supplemental Face Amount. You should consider a number of factors in determining whether to continue coverage in the form of Base Face Amount or Supplemental Face Amount (see “Base Face Amount vs. Supplemental Face Amount”). If such a reduction in Total Face Amount would cause the policy to fail the Internal Revenue Code’s definition of life insurance, we will not permit the withdrawal.

Policy loans

You may borrow from your policy at any time by completing a form satisfactory to us. The amount available for loan will not be less than 90% of the net cash surrender value. The maximum amount you can borrow is the amount determined as set out below.

• We first determine the net cash surrender value of your policy.

• We then subtract an amount equal to 12 times the monthly deductions then being deducted from policy value.

• We then multiply the resulting amount by 0.75% in policy years 1 through 10 and 0% thereafter (although we reserve the right to increase the percentage after the tenth policy year to as much as .25%).

• We then subtract the third item above from the second item above.

The minimum amount of each loan is $500. The interest charged on any loan is an effective annual rate of 3.75% in the first 10 policy years and 3.00% thereafter. However, we reserve the right to increase the percentage after the tenth policy year to as much as 3.25%. Accrued interest will be added to the loan daily and will bear interest at the same rate as the original loan amount. Unless otherwise specified by you, the amount of the loan is deducted from the accounts (fixed and investment) in the same proportion as the policy value is then allocated among them. The amount of the loan is then placed in a special loan account. This special loan account will earn interest at an effective annual rate of 3.00%. The tax consequences of a loan interest credited differential of 0% are unclear. You should consult a tax adviser before effecting a loan to evaluate possible tax consequences. If we determine that a loan will be treated as a taxable distribution because of the differential between the loan interest rate and the rate being credited on the special loan account, we reserve the right to increase the rate charged on the loan to a rate that would, in our reasonable judgment, result in the transaction being treated as a loan under Federal tax

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law. The right to increase the rate charged on the loan is restricted in some states. Please see your John Hancock NY representative for details. We process policy loans as of the business day on or next following the day we receive the loan request.

Repayment of policy loans

You can repay all or part of a loan at any time. Each repayment will be allocated among the accounts as set out below.

• The same proportionate part of the loan as was borrowed from the fixed account will be repaid to that fixed account.

• The remainder of the repayment will be allocated among the accounts in the same way a new premium payment would be allocated (unless otherwise specified by you).

If you want a payment to be used as a loan repayment, you must include instructions to that effect. Otherwise, all payments will be assumed to be premium payments. We process loan repayments as of the day we receive the repayment.

Effects of policy loans

The policy value, the net cash surrender value, and any death benefit are permanently affected by any loan, whether or not it is repaid in whole or in part. This is because the amount of the loan is deducted from the accounts and placed in a special loan account. The accounts and the special loan account will generally have different rates of investment return.

The amount of the outstanding loan (which includes accrued and unpaid interest) is subtracted from the amount otherwise payable when the policy proceeds become payable.

Taking out a loan on the policy increases the risk that the policy may lapse because of the difference between the interest rate charged on the loan and the interest rate credited to the special loan account. Also, whenever the outstanding loan equals or exceeds your policy value after the insured person reaches age 100, the policy will terminate 31 days after we have mailed notice of termination to you (and to any assignee of record at such assignee’s last known address) specifying the amount that must be paid to avoid termination, unless a repayment of at least the amount specified is made within that period. Policy loans may also result in adverse tax consequences under certain circumstances (see “Tax considerations”).

Description of charges at the policy level

Deduction from premium payments

• Premium charge - A charge to help defray our sales costs and related taxes. The current charge is 1.5% of each premium paid, although we reserve the right to increase the percentage to as high as 7%.

Deductions from policy value

• Administrative charge - A monthly charge to help cover our administrative costs. This is a flat dollar charge of up to $12.

• Face Amount charge - A monthly charge for the first ten policy years to primarily help cover sales costs. To determine the charge we multiply the amount of Base Face Amount at issue by a rate which varies by duration (Policy Year) and by the insured person’s sex and issue age.

• Cost of insurance charge - A monthly charge for the cost of insurance. To determine the charge, we multiply the net amount of insurance for which we are then at risk by a cost of insurance rate. The rate is derived from an actuarial table. The table in your policy will show the maximum cost of insurance rates. The cost of insurance rates that we currently apply are generally less than the maximum rates. The current rates will never be more than the maximum rates shown in the policy. The cost of insurance we use will depend on age of the insured person at issue, the insurance risk characteristics and (usually) gender of the insured person, the and the length of time the policy has been in effect. Regardless of the table used, cost of insurance rates generally increase each year that you own your policy, as the insured person’s age increases. (The insured person’s “age” on any date is his or her age on the birthday nearest that date.) For death benefit Option 1, the net amount at risk is equal to the greater of zero, or the result of (a) minus (b) where:

(a)	is the death benefit as of the first day of the Policy Month, divided by 1.0024663; and
(b)	is the policy value as of the first day of the Policy Month after the deduction of all other monthly deductions.

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Since the net amount at risk for death benefit Option 1 is based on a formula that includes as factors the death benefit and the policy value, the net amount at risk is affected by the investment performance of the investment accounts chosen, payment of premiums and charges assessed.

If the minimum death benefit is greater than the Total Face Amount, the cost of insurance charge will reflect the amount of that additional benefit.

For death benefit Option 2, the net amount at risk is equal to the Total Face Amount of insurance divided by 1.0024663.

• Asset-based risk charge - A monthly charge to help cover sales, administrative and other costs. The charge is a percentage of that portion of your policy value allocated to investment accounts. This charge does not apply to the current fixed account.

• Supplementary benefits charges - Monthly charges for any supplementary insurance benefits added to the policy by means of a rider.

• Withdrawal fee - A fee for each withdrawal of policy value to compensate us for the administrative expenses of processing the withdrawal. The fee is the lesser of 2% of the withdrawal amount or $25. This fee is not currently imposed, but we reserve the right to do so.

Additional information about how certain policy charges work

Sales expenses and related charges

The premium charges help to compensate us for the cost of selling our policies (see “Description of charges at the policy level”). The amount of the charges in any policy year does not specifically correspond to sales expenses for that year. We expect to recover our total sales expenses over the life of the policies. To the extent that the premium 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 policies, or from our general assets. Similarly, administrative expenses not fully recovered by the administrative charge may also be recovered from such other sources.

Method of deduction

We deduct the monthly deductions described in the Fee Tables section from your policy’s accounts (fixed and investment) in proportion to the amount of policy value you have in each, unless otherwise specified by you.

Reduced charges for eligible classes

The charges otherwise applicable may be reduced with respect to policies issued to a class of associated individuals or to a trustee, employer or similar entity where we anticipate that the sales to the members of the class will result in lower than normal sales or administrative expenses, lower taxes or lower risks to us. We will make these reductions in accordance with our rules in effect at the time of the application for a policy. The factors we consider in determining the eligibility of a particular group for reduced charges, and the level of the reduction, are as follows: the nature of the association and its organizational framework; the method by which sales will be made to the members of the class; the facility with which premiums will be collected from the associated individuals and the association’s capabilities with respect to administrative tasks; the anticipated lapse and surrender rates of the policies; the size of the class of associated individuals and the number of years it has been in existence; the aggregate amount of premiums paid; and any other such circumstances which result in a reduction in sales or administrative expenses, lower taxes or lower risks. Any reduction in charges will be reasonable and will apply uniformly to all prospective policy purchasers in the class and will not unfairly discriminate against any owner.

Other charges we could impose in the future

Except for a portion of the premium charge, we currently make no charge for our Federal income taxes. However, if we incur, or expect to incur, income taxes attributable to any subaccount of the Account or this class of policies in future years, we reserve the right to make a charge for such taxes. Any such charge would reduce what you earn on any affected investment accounts. However, we expect that no such charge will be necessary.

We also reserve the right to increase the premium charge in order to correspond with changes in the state premium tax levels or in the Federal income tax treatment of the deferred acquisition costs for this type of policy. Currently, the premium tax in New York is 0.7% of each premium payment.

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Under current laws, we may incur state and local taxes (in addition to premium taxes) in several states. At present, these taxes are not significant. If there is a material change in applicable state or local tax laws, we may make charges for such taxes.

Description of charges at the portfolio level

The portfolios must pay investment management fees and other operating expenses. These fees and expenses (shown in the tables of portfolio annual expenses under “Fee Tables”) are different for each portfolio and reduce the investment return of each portfolio. Therefore, they also indirectly reduce the return you will earn on any investment accounts you select. Expenses of the portfolios are not fixed or specified under the terms of the policy, and those expenses may vary from year to year.

Other policy benefits, rights and limitations

Optional supplementary benefit riders you can add

When you apply for a policy, you can request any of the optional supplementary benefit riders that we then make available. Availability of any rider, the benefits it provides and the charges for it may vary by state. Our rules and procedures will govern eligibility for any rider and, in some cases, the configuration of the actual rider benefits. Each rider contains specific details that you should review before you decide to choose the rider. Charges for most riders will be deducted from the policy value. We may change these charges (or the rates that determine them), but not above any applicable maximum amount stated in the Policy Specifications page of your policy. We may add to, delete from or modify the list of optional supplementary benefit riders.

• Enhanced Cash Value Rider - This rider provides for payment of an additional benefit to the policy owner upon surrender of the policy in the first seven policy years. The Enhanced Cash Value Rider benefit is calculated as a percentage of the lesser of (i) cumulative premiums paid to date or (ii) the “Limiting Premium” shown in the Policy Specifications page of your policy, minus any withdrawals and policy debt. The percentage starts at 11% and reduces to 0% in the eighth policy year. The cumulative premiums for any policy year are equal to the lesser of the actual premium paid in that policy year and the Limiting Premium. The Enhanced Cash Value Rider is only available if: (i) notice of surrender is received at our Service Office prior to the death of the insured person, (ii) such surrender is not the result of an exchange under section 1035 of the Internal Revenue Code, and (iii) the rider has not terminated pursuant to its terms. This rider does not increase the available loan value of the policy.

• Change of Life Insured Rider - This rider is only available to certain owners purchasing the policy in connection with the financing of employee benefit plan obligations. If you elect this rider, you may change the life insured on or after the second policy anniversary. You must have an insurable interest in the new life insured, and the new life insured must consent in writing to the change. We will require evidence which satisfies us of the new life insured’s insurability, and the premiums and charges after the change date will reflect the new life insured’s age, sex, risk classification and any additional rating which applies. Supplementary benefit riders on the old life insured will be canceled as of the change date. Supplementary benefits riders may be added on the new life insured as of the change date, subject to our normal requirements and restrictions for such benefits. The incontestability and suicide provisions of the policy will apply to the entire Face Amount beginning anew as of the change date.

• Overloan Protection Rider - This rider will prevent your policy from lapsing on any date if policy debt exceeds the death benefit. The benefit is subject to a number of eligibility requirements relating to, among other things, the number of years the policy has been in force, the attained age of the life insured, the death benefit option elected and the tax status of the policy.

When the Overloan Protection benefit in this rider is invoked, all values in the investment accounts are immediately transferred to the fixed account and will continue to grow at the current fixed account interest rate. Transfer fees do not apply to these transfers. Thereafter, policy changes and transactions are limited as set forth in the rider; for example, death benefit increases or decreases, additional premium payments, policy loans, withdrawals, surrender and transfers are no longer allowed. Any outstanding policy debt will remain. Interest will continue to be charged at the policy’s specified loan interest rate, and the policy’s loan account will continue to be credited with the policy’s loan interest credited rate. Any supplementary benefit rider requiring a monthly deduction will automatically be terminated.

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When the Overloan Protection Rider causes the policy to be converted into a fixed policy, there is risk that the Internal Revenue Service could assert that the policy has been effectively terminated and that the outstanding loan balance should be treated as a distribution. Depending on the circumstances, all or part of such deemed distribution may be taxable as income. You should consult a tax adviser as to the risks associated with the Overloan Protection Rider.

Variations in policy terms

We may vary the charges and other terms of our policies where special circumstances result in sales or administrative expenses, mortality risks or other risks that are different from those normally associated with the policies. These include the type of variations discussed under “Reduced charges for eligible classes.” No variation in any charge will exceed any maximum stated in this prospectus with respect to that charge.

Any variation discussed above will be made only in accordance with uniform rules that we adopt and that we apply fairly to our customers.

Procedures for issuance of a policy

Generally, the policy is available with a minimum Total Face Amount at issue of $100,000 and a minimum Base Face Amount at issue of $50,000. At the time of issue, the insured person must have an attained age of no more than 90. The insured person must meet certain health and other insurance risk criteria called “underwriting standards.”

Policies issued in connection with certain employee plans will not directly reflect the sex of the insured person in either the premium rates or the charges or values under the policy.

Commencement of insurance coverage

After you apply for a policy, it can sometimes take up to several weeks for us to gather and evaluate all the information we need to decide whether to issue a policy to you and, if so, what the insured person’s risk classification should be. After we approve an application for a policy and assign an appropriate insurance risk classification, we will prepare the policy for delivery. We will not pay a death benefit under a policy unless the policy is in effect when the insured person dies (except for the circumstances described under “Temporary coverage prior to policy delivery” below).

The policy will take effect only if all of the following conditions are satisfied:

• The policy is delivered to and received by the applicant.

• The Minimum Initial Premium is received by us.

• The insured person is living and there has been no deterioration in the insurability of the insured person since the date of the application.

The date all of the above conditions are satisfied is referred to in this prospectus as the “Contract Completion Date.” If all of the above conditions are satisfied, the policy will take effect on the date shown in the policy as the “Policy Date.” That is the date on which we begin to deduct monthly charges. Policy months, policy years and policy anniversaries are all measured from the Policy Date.

Backdating

Under limited circumstances, we may backdate a policy, upon request, by assigning a Policy Date earlier than the date the application is signed. However, in no event will a policy be backdated earlier than six months from the date of application for the policy, the earliest date allowed by New York state law. The most common reasons for backdating are to preserve a younger age at issue for the insured person or to retain a common monthly deduction date in certain corporate-owned life insurance cases involving multiple policies issued over time. If used to preserve age, backdating will result in lower insurance charges. However, monthly deductions will begin earlier than would otherwise be the case. Monthly deductions for the period the Policy Date is backdated will actually be deducted from policy value on the Contract Completion Date.

Temporary coverage prior to policy delivery

If a specified amount of premium is paid with the application for a policy and other conditions are met, we will provide temporary term life insurance coverage on the insured person for a period prior to the time coverage under the policy takes effect. Such temporary term coverage will be subject to the terms and conditions described in the Temporary Life Insurance

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Agreement and Receipt attached to the application for the policy, including conditions to coverage and limits on amount and duration of coverage.

Monthly deduction dates

Each charge that we deduct monthly is assessed against your policy value at the close of business on the Policy Date and at the close of the first day in each subsequent policy month.

Changes that we can make as to your policy

We reserve the right to make any changes in the policy necessary to ensure the policy is within the definition of life insurance under the Federal tax laws and is in compliance with any changes in Federal or state tax laws.

In our policies, we reserve the right to make certain changes if they would serve the best interests of policy owners or would be appropriate in carrying out the purposes of the policies. These changes include those listed below:

• Changes necessary to comply with or obtain or continue exemptions under the Federal securities laws.

• Combining or removing fixed accounts or investment accounts.

• Changes in the form of organization of any separate account.

Any such changes will be made only to the extent permitted by applicable laws and only in the manner permitted by such laws. When required by law, we will obtain your approval of the changes and the approval of any appropriate regulatory authority.

The owner of the policy

Who owns the policy? That’s up to the person who applies for the policy. The owner of the policy is the person who can exercise most of the rights under the policy, such as the right to choose the accounts in which to invest or the right to surrender the policy. In many cases, the person buying the policy is also the person who will be the owner. However, the application for a policy can name another person or entity (such as a trust) as owner. Whenever we’ve used the term “you” in this prospectus, we’ve assumed that the reader is the person who has whatever right or privilege is being discussed. There may be tax consequences if the owner and the insured person are different, so you should discuss this issue with your tax adviser.

While the insured person is alive, you will have a number of options under the policy. These options include those listed below:

• Determine when and how much you invest in the various accounts.

• Borrow or withdraw amounts you have in the accounts.

• Change the beneficiary who will receive the death benefit.

• Change the amount of insurance.

• Turn in (i.e., “surrender”) the policy for the full amount of its net cash surrender value.

• Choose the form in which we will pay out the death benefit or other proceeds.

It is possible to name so-called “joint owners” of the policy. If more than one person owns a policy, all owners must join in most requests to exercise rights under the policy.

Policy cancellation right

You have the right to cancel your policy within ten days after you receive it. This is often referred to as the “free look” period. During this period, your premiums will be allocated as described under “Processing premium payments” in this prospectus. To cancel your policy, simply deliver or mail the policy to:

• John Hancock NY at either of the addresses shown on the back cover of this prospectus, or

• the John Hancock NY representative who delivered the policy to you.

The date of cancellation will be the date of such mailing or delivery. You will receive a refund of any premiums you’ve paid.

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Reports that you will receive

At least annually, we will send you a statement setting forth at least the following information as of the end of the most recent reporting period: the amount of the death benefit, the portion of the policy value in the fixed account and in each investment account, premiums received and charges deducted from premiums since the last report, any outstanding policy loan (and interest charged for the preceding policy year), and any further information required by law. Moreover, you also will receive confirmations of premium payments, transfers among accounts, policy loans, partial withdrawals and certain other policy transactions.

Semi-annually we will send you a report containing the financial statements of the portfolios, including a list of securities held in each portfolio.

Assigning your policy

You may assign your rights in the policy to someone else as collateral for a loan or for some other reason. Assignments do not require the consent of any revocable beneficiary. A copy of the assignment must be forwarded to us. We are not responsible for any payment we make or any action we take before we receive a copy of the assignment at our Service Office. Nor are we responsible for the validity of the assignment or its efficacy in meeting your objectives. An absolute assignment is a change of ownership. All collateral assignees of record must usually consent to any surrender, withdrawal or loan from the policy.

When we pay policy proceeds

General

We will ordinarily pay any death benefit, withdrawal, surrender value or loan within seven days after we receive the last required form or request (and, with respect to the death benefit, any other documentation that may be required). If we don’t have information about the desired manner of payment within seven days after the date we receive documentation of the insured person’s death, we will pay the proceeds as a single sum.

Delay to challenge coverage

We may challenge the validity of your insurance policy based on any material misstatements made to us in the application for the policy. We cannot make such a challenge, however, beyond certain time limits that are specified by New York state law.

Delay for check clearance

We reserve the right to defer payment of that portion of your policy value that is attributable to a premium payment made by check for a reasonable period of time (not to exceed fifteen days) to allow the check to clear the banking system. We will not delay payment longer than necessary for us to verify a check has cleared the banking system.

Delay of separate account proceeds

We reserve the right to defer payment of any death benefit, loan or other distribution that is derived from an investment account if (1) the New York Stock Exchange is closed (other than customary weekend and holiday closings) or trading on the New York Stock Exchange is restricted; (2) an emergency exists, as determined by the SEC, as a result of which disposal of securities is not reasonably practicable or it is not reasonably practicable to fairly determine the policy value; or (3) the SEC by order permits the delay for the protection of owners. Transfers and allocations of policy value among the investment accounts may also be postponed under these circumstances. If we need to defer calculation of separate account values for any of the foregoing reasons, all delayed transactions will be processed at the next values that we do compute.

Delay of general account surrender proceeds

New York state law allows us to defer payment of any portion of the net cash surrender value derived from the fixed account for up to six months. These laws were enacted many years ago to help insurance companies in the event of a liquidity crisis.

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How you communicate with us

General rules

You should mail or express all checks and money orders for premium payments and loan repayments to the John Hancock NY Service Office at the appropriate address shown on the back cover.

Under our current rules, certain requests must be made in writing and be signed and dated by you. Those requests include the following.

• loans

• surrenders or withdrawals

• change of death benefit option

• increase or decrease in Face Amount

• change of beneficiary

• election of payment option for policy proceeds

• tax withholding elections

• election of telephone/internet transaction privilege

The following requests may be made either in writing (signed and dated by you) or by telephone or fax or through the Company’s secured website, if a special form is completed (see “Telephone, facsimile and internet transactions” below).

• transfers of policy value among accounts

• change of allocation among accounts for new premium payments

You should mail or express all written requests to our Service Office at the appropriate address shown on the back cover. You should also send notice of the insured person’s death and related documentation to our Service Office. We do not consider that we’ve “received” any communication until such time as it has arrived at the proper place and in the proper and complete form.

We have special forms that should be used for a number of the requests mentioned above. You can obtain these forms from our Service Office or your John Hancock NY representative. Each communication to us must include your name, your policy number and the name of the insured person. We cannot process any request that doesn’t include this required information. Any communication that arrives after the close of our business day, or on a day that is not a business day, will be considered “received” by us on the next following business day. Our business day currently closes at 4:00 p.m. Eastern time, but special circumstances (such as suspension of trading on a major exchange) may dictate an earlier closing time.

Telephone, facsimile and internet transactions

If you complete a special authorization form, you can request transfers among accounts and changes of allocation among accounts simply by telephoning us at 1-800-521-1234 or by faxing us at 617-572-7008 or through the Company’s secured website. Any fax or internet request should include your name, daytime telephone number, policy number and, in the case of transfers and changes of allocation, the names of the accounts involved. We will honor telephone and internet instructions from anyone who provides the correct identifying information, so there is a risk of loss to you if this service is used by an unauthorized person. However, you will receive written confirmation of all telephone/internet transactions. There is also a risk that you will be unable to place your request due to equipment malfunction or heavy phone line or internet usage. If this occurs, you should submit your request in writing.

If you authorize telephone or internet transactions, you will be liable for any loss, expense or cost arising out of any unauthorized or fraudulent telephone or internet instructions which we reasonably believe to be genuine, unless such loss, expense or cost is the result of our mistake or negligence. We employ procedures which provide safeguards against the execution of unauthorized transactions which are reasonably designed to confirm that instructions received by telephone or internet are genuine. These procedures include requiring personal identification, the use of a unique password for internet authorization, recording of telephone calls, and providing written confirmation to the owner. If we do not employ reasonable procedures to confirm that instructions communicated by telephone or internet are genuine, we may be liable for any loss due to unauthorized or fraudulent instructions.

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As stated earlier in this prospectus, the policies are not designed for professional market timing organizations or other persons or entities that use programmed or frequent transfers among investment options. To discourage disruptive frequent trading, we have imposed certain transfer restrictions (see “Transfers of existing policy value”). In addition, we also reserve the right to change our telephone, facsimile and internet transaction privileges outlined in this section at any time, and to suspend or terminate any or all of those privileges with respect to any owners who we feel are abusing the privileges to the detriment of other owners.

Distribution of policies

John Hancock Distributors LLC (“JH Distributors”), a Delaware limited liability company affiliated with us, is the principal distributor and underwriter of the securities 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 Trust, whose securities are used to fund certain investment accounts under the policies and under other annuity and life insurance products we offer.

JH Distributors’ principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5 and it also maintains offices with us at 197 Clarendon Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934 (the “1934 Act”) and a member of the Financial Industry Regulatory Authority (“FINRA”).

We offer the policies for sale through individuals who are licensed as insurance agents and who are registered representatives of broker-dealers that have entered into selling agreements with JH Distributors. These broker-dealers may include our affiliate Signator Investors, Inc. In addition, we, either directly or through JH Distributors, have entered into agreements with other financial intermediaries that provide marketing, sales support and certain administrative services to help promote the policies (“financial intermediaries”). In a limited number of cases, we have entered into loans, leases or other financial agreements with these broker-dealers or financial intermediaries or their affiliates.

Compensation

The broker-dealers and other financial intermediaries that distribute or support the marketing of our policies may be compensated by means of various compensation and revenue sharing arrangements. A general description of these arrangements is set out below under “Standard compensation” and “Additional compensation and revenue sharing.” These arrangements may differ between firms, and not all broker-dealers or financial intermediaries will receive the same compensation and revenue sharing benefits for distributing our policies. Also, a broker-dealer may receive more or less compensation or other benefits for the promotion and sale of our policy than it would expect to receive from another issuer.

Under their own arrangements, broker-dealers determine how much of any amounts received from us is to be paid to their registered representatives. Our affiliated broker-dealer may pay its registered representatives additional compensation and benefits, such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the policies that they would not receive in connection with the sale of policies issued by unaffiliated companies.

Policy owners do not pay any compensation or revenue sharing benefits 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 an underlying fund’s distribution plan (“12b-1 fees”), the fees and charges imposed under the policy and other sources.

You should contact your registered representative for more information on compensation arrangements in connection with your purchase of a policy. We provide additional information on special compensation or reimbursement arrangements involving broker-dealers and other financial intermediaries in the Statement of Additional Information, which is available upon request.

Standard compensation. JH Distributors pays compensation to broker-dealers for the promotion and sale of the policies, and for providing ongoing service in relation to policies that have already been purchased. We may also pay a limited number of broker-dealers commissions or overrides to “wholesale” the policies; that is, to provide marketing support and training services to the broker-dealer firms that do the actual selling.

The compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement. The compensation paid is not expected to exceed 35% of target premium, and 6% of premium in excess of target, paid in the first policy year, 6% of target and excess premium paid in years 2-5, and 4.75% of target and excess premium paid in years 6-10.

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This compensation schedule is exclusive of additional compensation and revenue sharing and inclusive of overrides and expense allowances paid to broker-dealers for sale of the policies (not including riders).

Additional compensation and revenue sharing. To the extent permitted by SEC and FINRA rules and other applicable laws and regulations, we may enter into special compensation or reimbursement arrangements (“revenue sharing”), either directly or through JH Distributors, with selected broker-dealers and other financial intermediaries. In consideration of these arrangements, a firm may feature our policy in its sales system, give us preferential access to sales staff, or allow JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm’s sales force. We hope to benefit from these revenue sharing and other arrangements through increased sales of our policies.

Selling broker-dealers and other financial intermediaries may receive, directly or indirectly, additional payments in the form of cash, other compensation or reimbursement. These additional compensation or reimbursement arrangements may include, for example, payments in connection with the firm’s “due diligence” examination of the policies, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payment for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public or client seminars, advertising and sales campaigns regarding the policies, payments to assist a firm in connection with its systems, operations and marketing expenses and/or other events or activities sponsored by the firms. We may contribute to, as well as sponsor, various educational programs, sales promotions, and/or other contests in which participating firms and their sales persons may receive gifts and prizes such as merchandise, cash or other rewards as may be permitted under FINRA rules and other applicable laws and regulations.

Tax considerations

This description of Federal income tax consequences is only a brief summary and is neither exhaustive nor authoritative. It was written to support the promotion of our products. It does not constitute legal or tax advice, and it is not intended to be used and cannot be used to avoid any penalties that may be imposed on you. Tax consequences will vary based on your own particular circumstances, and for further information you should consult a qualified tax adviser. Federal, state and local tax laws, regulations and interpretations can change from time to time. As a result, the tax consequences to you and the beneficiary may be altered, in some cases retroactively. The policy may be used in various arrangements, including non-qualified deferred compensation or salary continuation plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the value of using the policy in any such arrangement depends in part on the tax consequences, a qualified tax adviser should be consulted for advice.

General

We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of the Separate Account in our taxable income and take deductions for investment income credited to our “policy holder 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 the Separate Account for any resulting income tax costs, other than a “DAC tax” charge we may impose against the Separate Account to compensate us for the finance costs attributable to the acceleration of our income tax liabilities by reason of a “DAC tax adjustment.” We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the series funds. These benefits can be material. We do not pass these benefits through to the Separate Account, principally because: (i) the deductions and credits are allowed to us and not the policy owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on the Separate Account assets that are passed through to policy owners.

The policies permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the policies or the Separate Account. Currently, we do not anticipate making any specific charge for such taxes other than any DAC tax charge and premium 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.

Death benefit proceeds and other policy distributions

Generally, death benefits paid under policies such as yours are not subject to income tax. Earnings on your policy value are ordinarily not subject to income tax as long as we don’t pay them out to you. If we do pay out any amount of your policy value upon surrender or partial withdrawal, all or part of that distribution would generally be treated as a return of the premiums you’ve paid and not subjected to income tax. However certain distributions associated with a reduction in death

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benefit or other policy benefits within the first fifteen years after issuance of the policy are ordinarily taxable in whole or in part. Amounts you borrow are generally not taxable to you.

However, some of the tax rules change if your policy is found to be a modified endowment contract. This can happen if you’ve paid premiums in excess of limits prescribed by the tax laws. Additional taxes and penalties may be payable for policy distributions of any kind, including loans. (See “7-pay premium limit and modified endowment contract status” below.)

We expect the policy to receive the same Federal income and estate tax treatment as fixed benefit life insurance policies. Section 7702 of the Internal Revenue Code defines a life insurance contract for Federal tax purposes. For a policy to be treated as a life insurance contract, it must satisfy either the cash value accumulation test or the guideline premium test. These tests limit the amount of premium that you may pay into the policy. We will monitor compliance with these standards. If we determine that a policy does not satisfy section 7702, we may take whatever steps are appropriate and reasonable to bring it into compliance with section 7702.

If the policy complies with section 7702, the death benefit proceeds under the policy ordinarily should be excludable from the beneficiary’s gross income under section 101 of the Internal Revenue Code.

Increases in policy value as a result of interest or investment experience will not be subject to Federal income tax unless and until values are received through actual or deemed distributions. In general, unless the policy is a modified endowment contract, the owner will be taxed on the amount of distributions that exceed the premiums paid under the policy. An exception to this general rule occurs in the case of a decrease in the policy’s death benefit or any other change that reduces benefits under the policy in the first fifteen years after the policy is issued and that results in a cash distribution to the policy owner. Changes that reduce benefits include partial withdrawals, death benefit option changes, and distributions required to keep the policy in compliance with section 7702. For purposes of this rule any distribution within the two years immediately before a reduction in benefits will also be treated as if it caused the reduction. A cash distribution that reduces policy benefits will be taxed in whole or in part (to the extent of any gain in the policy) under rules prescribed in section 7702. The taxable amount is subject to limits prescribed in section 7702(f)(7). Any taxable distribution will be ordinary income to the owner (rather than capital gain).

Distributions for tax purposes include amounts received upon surrender or partial withdrawals. You may also be deemed to have received a distribution for tax purposes if you assign all or part of your policy rights or change your policy’s ownership.

It is possible that, despite our monitoring, a policy might fail to qualify as a life insurance contract under section 7702 of the Internal Revenue Code. This could happen, for example, if we inadvertently failed to return to you any premium payments that were in excess of permitted amounts, or if any of the funds failed to meet certain investment diversification or other requirements of the Internal Revenue Code. If this were to occur, you would be subject to income tax on the income credited to the policy from the date of issue to the date of the disqualification and for subsequent periods.

Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws will depend on the circumstances of each owner or beneficiary. If the person insured by the policy is also its owner, either directly or indirectly through an entity such as a revocable trust, the death benefit will be includible in his or her estate for purposes of the Federal estate tax. If the owner is not the person insured, the value of the policy will be includible in the owner’s estate upon his or her death. Even if ownership has been transferred, the death proceeds or the policy value may be includible in the former owner’s estate if the transfer occurred less than three years before the former owner’s death or if the former owner retained certain kinds of control over the policy. You should consult your tax adviser regarding these possible tax consequences.

Because there may be unfavorable tax consequences (including recognition of taxable income and the loss of income tax-free treatment for any death benefit payable to the beneficiary), you should consult a qualified tax adviser prior to changing the policy’s ownership or making any assignment of ownership interests.

Policy loans

We expect that, except as noted below (see “7-pay premium limit and modified endowment contract status”), loans received under the policy will be treated as indebtedness of an owner and that no part of any loan will constitute income to the owner. However, if the policy terminates for any reason other than the payment of the death benefit, the amount of any outstanding loan that was not previously considered income will be treated as if it had been distributed to the owner upon such termination. This could result in a considerable tax bill. Under certain circumstances involving large amounts of

43

outstanding loans, you might find yourself having to choose between high premiums required to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.

Diversification rules and ownership of the Account

Your policy will not qualify for the tax benefits of a life insurance contract unless the Account follows certain rules requiring diversification of investments underlying the policy. In addition, the rules require that the policy owner not have “investment control” over the underlying assets.

In certain circumstances, the owner of a variable life insurance policy may be considered the owner, for Federal income tax purposes, of the assets of the separate account used to support the policy. In those circumstances, income and gains from the separate account assets would be includible in the policy owner’s gross income. The Internal Revenue Service (“IRS”) has stated in published rulings that a variable policy owner will be considered the owner of separate account assets if the policy 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 sub-accounts 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 life insurance or annuity contract despite the owner’s ability to allocate funds among as many as twenty subaccounts.

The ownership rights under your policy are similar to, but different in certain respects from, those described in IRS rulings in which it was determined that policyholders were not owners of separate account assets. Since you have greater flexibility in allocating premiums and policy values than was the case in those rulings, it is possible that you would be treated as the owner of your policy’s proportionate share of the assets of the Account.

We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that the funds will be able to operate as currently described in the series funds’ prospectuses, or that a series fund will not have to change any fund’s investment objectives or policies. We have reserved the right to modify your policy if we believe doing so will prevent you from being considered the owner of your policy’s proportionate share of the assets of the Account, but we are under no obligation to do so.

7-pay premium limit and modified endowment contract status

At the time of policy issuance, we will determine whether the Planned Premium schedule will exceed the 7-pay limit discussed below. If so, our standard procedures prohibit issuance of the policy unless you sign a form acknowledging that fact.

The 7-pay limit is the total of net level premiums that would have been payable at any time for a comparable fixed policy to be fully “paid-up” after the payment of seven equal annual premiums. “Paid-up” means that no further premiums would be required to continue the coverage in force until maturity, based on certain prescribed assumptions. If the total premiums paid at any time during the first seven policy years exceed the 7-pay limit, the policy will be treated as a modified endowment contract, which can have adverse tax consequences.

Policies classified as modified endowment contracts are subject to the following tax rules:

• First, all partial withdrawals from such a policy are treated as ordinary income subject to tax up to the amount equal to the excess (if any) of the policy value immediately before the distribution over the investment in the policy at such time. If you own any other modified endowment contracts issued to you in the same calendar year by the same insurance company or its affiliates, their values will be combined with the value of the policy from which you take the withdrawal for purposes of determining how much of the withdrawal is taxable as ordinary income.

• Second, loans taken from or secured by such a policy and assignments or pledges of any part of its value are treated as partial withdrawals from the policy and taxed accordingly. Past-due loan interest that is added to the loan amount is treated as an additional loan.

• Third, a 10% additional income tax is imposed on the portion of any distribution (including distributions on surrender) from, or loan taken from or secured by, such a policy that is included in income except where the distribution or loan:

• is made on or after the date on which the policy owner attains age 59 ¹/2;

• is attributable to the policy owner becoming disabled; or

44

• is part of a series of substantially equal periodic payments for the life (or life expectancy) of the policy owner or the joint lives (or joint life expectancies) of the policy owner and the policy owner’s beneficiary.

These exceptions to the 10% additional tax do not apply in situations where the policy is not owned by an individual.

Furthermore, any time there is a “material change” in a policy, the policy will begin a new 7-pay testing period as if it were a newly-issued policy. The material change rules for determining whether a policy is a modified endowment contract are complex. In general, however, the determination of whether a policy will be a modified endowment contract after a material change depends upon the relationship among the death benefit of the policy at the time of such change, the policy value at the time of the change, and the additional premiums paid into the policy during the seven years starting with the date on which the material change occurs.

Moreover, if there is a reduction in benefits under a policy (such as a reduction in the death benefit or the reduction or cancellation of certain rider benefits) during a 7-pay testing period, the 7-pay limit will generally be recalculated based on the reduced benefits and the policy will be re-tested from the beginning of the 7-pay testing period using the lower limit. If the premiums paid to date at any point during the 7-pay testing period are greater than the recalculated 7-pay limit, the policy will become a modified endowment contract.

If your policy is issued as a result of a section 1035 exchange, it may be considered to be a modified endowment contract if the death benefit under the new policy is smaller than the death benefit under the exchanged policy, or if you reduce coverage in your new policy after it is issued. Therefore, if you desire to reduce the face amount as part of a 1035 exchange, a qualified tax adviser should be consulted for advice.

All modified endowment contracts issued by the same insurer (or its affiliates) to the same owner during any calendar year generally are required to be treated as one contract for the purpose of applying the modified endowment contract rules. A policy received in exchange for a modified endowment contract will itself also be a modified endowment contract. You should consult your tax adviser if you have questions regarding the possible impact of the 7-pay limit on your policy.

Corporate and H.R. 10 retirement plans

The policy may be acquired in connection with the funding of retirement plans satisfying the qualification requirements of section 401 of the Internal Revenue Code. If so, the Internal Revenue Code provisions relating to such plans and life insurance benefits thereunder should be carefully scrutinized. We are not responsible for compliance with the terms of any such plan or with the requirements of applicable provisions of the Internal Revenue Code.

Withholding

To the extent that policy distributions to you are taxable, they are generally subject to withholding for your Federal income tax liability. However if you reside in the United States, you can generally choose not to have tax withheld from distributions.

Life insurance purchases by residents of Puerto Rico

In Rev. Rul. 2004-75, 2004-31 I.R.B. 109, the IRS ruled that income received by residents of Puerto Rico under a life insurance policy issued by a United States company is U.S.-source income that is subject to United States Federal income tax.

Life insurance purchases by non-resident aliens

If you are not a U.S. citizen or resident, you will generally be subject to U.S. Federal withholding tax on taxable distributions from life insurance policies at a 30% rate, unless a lower treaty rate applies. In addition, you may be subject to state and/or municipal taxes and taxes imposed by your country of citizenship or residence. You should consult with a qualified tax adviser before purchasing a policy.

Financial statements reference

The financial statements of John Hancock NY and the Account can be found in the Statement of Additional Information. The financial statements of John Hancock NY should be distinguished from the financial statements of the Account and should be considered only as bearing upon the ability of John Hancock NY to meet its obligations under the policies. Our general account is comprised of securities and other investments, the value of which may decline during periods of adverse

45

market conditions. To the extent required, the company intends to rely upon the exemption set forth in Rule 12h-7 of the Securities Exchange Act of 1934 from the periodic reporting requirements under that act.

Registration statement filed with the SEC

This prospectus omits certain information contained in the Registration Statement which has been filed with the SEC. More details may be obtained from the SEC upon payment of the prescribed fee.

Independent registered public accounting firm

The financial statements of John Hancock Life Insurance Company of New York at December 31, 2008 and 2007, and for each of the three years in the period ended December 31, 2008, and the financial statements of Separate Account B of John Hancock Life Insurance Company of New York at December 31, 2008, and for each of the two years in the period ended December 31, 2008, appearing in the 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.

46

In addition to this prospectus, John Hancock NY has filed with the SEC a Statement of Additional Information (the “SAI”) which contains additional information about John Hancock NY and the Account, including information on our history, services provided to the Account and legal and regulatory matters. The SAI and personalized illustrations of death benefits, policy values and surrender values are available, without charge, upon request. You may obtain the personalized illustrations from your John Hancock NY representative. The SAI may be obtained by contacting the John Hancock NY Service Office. You should also contact the John Hancock NY Service Office to request any other information about your policy or to make any inquiries about its operation.

SERVICE OFFICE

Express Delivery	Mail Delivery
Specialty Products	Specialty Products & Distribution
197 Clarendon Street, C-6	P.O. Box 192
Boston, MA 02117	Boston, MA 02117-0192
Phone:	Fax:
1-800-521-1234	617-572-7008

Information about the Account (including the SAI) can be reviewed and copied at the SEC’s Public Reference Branch, 100 F Street, NE, Room 1580, Washington, DC, 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 202-551-5850. Reports and other information about the Account are available on the SEC’s Internet website at http://www.sec.gov. Copies of such information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549-0102.

1940 Act File No. 811-8329 — 1933 Act File No. 333-131139

Statement of Additional Information

dated May 1, 2009

for interests in

John Hancock Life Insurance Company of New York Account B (“Registrant”)

Interests are made available under

CORPORATE VUL

a flexible premium variable universal life insurance policy issued by

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

(“John Hancock NY”)

This is a Statement of Additional Information (“SAI”). It is not the prospectus. The prospectus, dated the same date as this SAI, may be obtained from a John Hancock NY representative or by contacting the John Hancock NY Servicing Office at Specialty Products, 197 Clarendon Street, C-6, Boston, MA 02117 or telephoning 1-800-521-1234.

TABLE OF CONTENTS

Contents of this SAI	Page No.
Description of the Depositor	2
Description of the Registrant	2
Services	2
Independent Registered Public Accounting Firm	2
Legal and Regulatory Matters	2
Principal Underwriter/Distributor	3
Additional Information About Charges	3
Financial Statements of Registrant and Depositor

Description of the Depositor

Under the Federal securities laws, the entity responsible for organization of the registered separate account underlying the variable life insurance policy is known as the “Depositor”. The Depositor is John Hancock NY, a stock life insurance company organized under the laws of New York in 1992. We are a licensed life insurance company in the state of New York. Until 2004, John Hancock NY had been known as The Manufacturers Life Insurance Company of New York.

John Hancock NY is a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.), a life insurance company domiciled in Michigan. Our ultimate parent is Manulife Financial Corporation (“MFC”), a publicly traded company based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial.

Description of the Registrant

Under the Federal securities laws, the registered separate account underlying the variable life insurance policy is known as the “Registrant.” In this case, the Registrant is John Hancock Life Insurance Company of New York Separate Account B (the “Account”), a separate account established by John Hancock NY under New York law. The variable investment options shown on page 1 of the prospectus are subaccounts of the Account. The Account meets the definition of “separate account” under the Federal securities laws and is registered as a unit investment trust under the Investment Company Act of 1940 (“1940 Act”). Such registration does not involve supervision by the Securities and Exchange Commission (“SEC”) of the management of the Account or of John Hancock NY.

New subaccounts may be added and made available to policy owners from time to time. Existing subaccounts may be modified or deleted at any time.

Services

Administration of policies issued by John Hancock NY and of registered separate accounts organized by John Hancock NY may be provided by John Hancock Life Insurance Company (U.S.A.), or other affiliates. Neither John Hancock NY nor the separate accounts are assessed any charges for such services.

Custodianship and depository services for the Registrant are provided by State Street Bank. State Street Bank’s address is 225 Franklin Street, Boston, Massachusetts, 02110.

Independent Registered Public Accounting Firm

The financial statements of John Hancock Life Insurance Company of New York at December 31, 2008 and 2007, and for each of the three years in the period ended December 31, 2008, and the financial statements of Separate Account B of John Hancock Life Insurance Company of New York at December 31, 2008, and for each of the two years in the period ended December 31, 2008, 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.

Legal and Regulatory Matters

There are no legal proceedings to which the Depositor, the Account or the principal underwriter is a party or to which the assets of the Account are subject that are likely to have a material adverse effect on the Account or the ability of the principal underwriter to perform its contract with the Account or of the Depositor to meet its obligations under the policies.

On June 25, 2007, John Hancock Investment Management Services, LLC (the “Adviser”) and John Hancock Distributors LLC (the “Distributor”) and two of their affiliates (collectively, the “John Hancock Affiliates”) reached a settlement with the SEC that resolved an investigation of certain practices relating to the John Hancock Affiliates’ variable annuity and mutual fund operations involving directed brokerage and revenue sharing. Under the terms of the settlement, each John Hancock Affiliate was censured and agreed to pay a $500,000 civil penalty to the United States Treasury. In addition, the Adviser and the Distributor agreed to pay disgorgement of $14,838,943 and prejudgment interest of $2,001,999 to the John Hancock Trust funds that participated in the Adviser’s commission recapture program during the period from 2000 to April 2004. Collectively, all John Hancock Affiliates agreed to pay a total disgorgement of $16,926,420 and

2

prejudgment interest of $2,361,460 to the entities advised or distributed by John Hancock Affiliates. The Adviser discontinued the use of directed brokerage in recognition of the sale of fund shares in April 2004.

Principal Underwriter/Distributor

John Hancock Distributors LLC (“JH Distributors”), a Delaware limited liability company that we control, is the principal distributor and underwriter of the securities offered through this prospectus. JH Distributors acts as the principal distributor of a number of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of John Hancock Trust (the “Trust”), whose securities are used to fund certain variable investment options under the policies and under other annuity and life insurance products we offer.

JH Distributors’ principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5 and it also maintains offices with us at 197 Clarendon Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Act of 1934 (the “1934 Act”) and is a member of the Financial Industry Regulatory Authority (“FINRA”).

We offer the policies for sale through individuals who are licensed as insurance agents and who are registered representatives of broker-dealers that have entered into selling agreements with JH Distributors. These broker-dealers may include our affiliate Signator Investors, Inc.

The aggregate dollar amount of underwriting commissions paid to JH Distributors by the Depositor and its affiliates in connection with the sale of variable life products in 2008, 2007, and 2006 was $224,191,519, $236,021,417, and $128,705,303 respectively. JH Distributors did not retain any of these amounts during such periods.

The compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement. Compensation is exclusive of additional compensation and revenue sharing and inclusive of overrides and expense allowances paid to broker-dealers for sale of the policies (not including riders). The compensation paid is not expected to exceed 35% of target premium, and 6% of premium in excess of target, paid in the first policy year, 6% of target and excess premium paid in years 2-5, and 4.75% of target and excess premium paid in years 6-10.

The registered representative through whom your policy is sold will be compensated pursuant to the registered representative’s own arrangement with his or her broker-dealer. Compensation to broker-dealers for the promotion and sale of the policies is not paid directly by policy owners but will be recouped through the fees and charges imposed under the policy.

Additional compensation and revenue sharing arrangements may be offered to certain broker-dealer firms or other financial intermediaries. The terms of such arrangements may differ among firms we select based on various factors. In general, the arrangements involve three types of payments or any combination thereof:

• Fixed dollar payments: The amount of these payments varies widely. JH Distributors may, for example, make one or more payments in connection with a firm’s conferences, seminars or training programs, seminars for the public, advertising and sales campaigns regarding the policies, to assist a firm in connection with its systems, operations and marketing expenses, or for other activities of a selling firm or wholesaler. JH Distributors may make these payments upon the initiation of a relationship with a firm, and at any time thereafter.

• Payments based upon sales: 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. JH Distributors makes these payments on a periodic basis.

• Payments based upon “assets under management”: These payments are based upon a percentage of the policy value of some or all of our (and/or our affiliates’) insurance products that were sold through the firm. JH Distributors makes these payments on a periodic basis.

Our affiliated broker-dealer may pay their respective registered representatives additional cash incentives, such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the policies that they would not receive in connection with the sale of policies issued by unaffiliated companies.

Additional Information About Charges

A policy will not be issued until the underwriting process has been completed to the Depositor’s satisfaction. The underwriting process generally includes the obtaining of information concerning your age, medical history, occupation and other personal information. This information is then used to determine the cost of insurance charge.

3

Reduction In Charges

The policy is available for purchase by corporations and other groups or sponsoring organizations. Group or sponsored arrangements may include reduction or elimination of withdrawal charges and deductions for employees, officers, directors, agents and immediate family members of the foregoing. John Hancock NY reserves the right to reduce any of the Policy’s charges on certain cases where it is expected that the amount or nature of such cases will result in savings of sales, underwriting, administrative, commissions or other costs. Eligibility for these reductions and the amount of reductions will be determined by a number of factors, including the number of lives to be insured, the total premiums expected to be paid, total assets under management for the policyowner, the nature of the relationship among the insured individuals, the purpose for which the policies are being purchased, expected persistency of the individual policies, and any other circumstances which John Hancock NY believes to be relevant to the expected reduction of its expenses. Some of these reductions may be guaranteed and others may be subject to withdrawal or modifications, on a uniform case basis. Reductions in charges will not be unfairly discriminatory to any policyowners. John Hancock NY may modify from time to time, on a uniform basis, both the amounts of reductions and the criteria for qualification.

4

AUDITED FINANCIAL STATEMENTS

John Hancock Life Insurance Company of New York

Years Ended December 31, 2008, 2007, and 2006

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

INDEX TO AUDITED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	F-2
Audited Financial Statements:
Balance Sheets- As of December 31, 2008 and 2007	F-3
Statements of Operations- For the Years Ended December 31, 2008, 2007, and 2006	F-4
Statements of Changes in Shareholder’s Equity and Comprehensive Income- For the Years Ended December 31, 2008, 2007, and 2006	F-5
Statements of Cash Flows- For the Years Ended December 31, 2008, 2007, and 2006	F-6
Notes to Financial Statements	F-7

F-1

Report of Independent Registered Public Accounting Firm

The Board of Directors

John Hancock Life Insurance Company of New York

We have audited the accompanying balance sheets of John Hancock Life Insurance Company of New York (the “Company”) as of December 31, 2008 and 2007, and the related statements of operations, changes in shareholder’s equity and comprehensive income, and cash flows for each of the three years in the period ended December 31, 2008. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of John Hancock Life Insurance Company of New York at December 31, 2008 and 2007 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2008 in conformity with U.S. generally accepted accounting principles.

/s/ ERNST & YOUNG LLP

Boston, MA

April 16, 2009

F-2

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

BALANCE SHEETS

	December 31,
	2008	2007
	(in thousands)
Assets
Investments
Fixed maturities:
Available-for-sale—at fair value (amortized cost: 2008—$670,054; 2007—$510,322)	$725,526	$	528,685
Investment in unconsolidated affiliate	800		800
Policy loans	43,226		35,092
Short-term investments	514,258		194,215
Other invested assets	79		83
Total Investments	1,283,889		758,875
Cash and cash equivalents	63,746		33,093
Accrued investment income	18,674		18,554
Deferred policy acquisition costs and deferred sales inducements	599,054		431,254
Amounts due from affiliates	17		443
Reinsurance recoverable	54,470		40,308
Embedded derivatives recoverable for certain separate account guarantees	40,182		19,959
Other assets	11,435		9,472
Separate account assets	4,864,500		6,513,671
Total Assets	$6,935,967	$	7,825,629
Liabilities and Shareholder’s Equity
Liabilities
Future policy benefits	$867,327	$	634,018
Policyholders’ funds	2,890		2,797
Unearned revenue	41,947		18,054
Unpaid claims and claim expense reserves	6,577		1,762
Amounts due to affiliates	18,166		22,680
Amounts payable for securities	-		5,157
Current income tax payable	16,152		38,588
Deferred income tax liability	61,030		73,425
Embedded derivatives payable for certain separate account guarantees	275,495		48,246
Other liabilities	41,135		31,813
Separate account liabilities	4,864,500		6,513,671
Total Liabilities	6,195,219		7,390,211
Commitments and Legal Proceedings (Note 7)
Shareholder’s Equity
Common stock ($1.00 par value; 3,000,000 shares authorized; 2,000,002 and 2,000,001 shares issued and outstanding at December 31, 2008 and 2007, respectively)	2,000		2,000
Additional paid-in capital	413,306		113,306
Retained earnings	298,205		308,478
Accumulated other comprehensive income	27,237		11,634
Total Shareholder’s Equity	740,748		435,418
Total Liabilities and Shareholder’s Equity	$6,935,967	$	7,825,629

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

F-3

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

STATEMENTS OF OPERATIONS

	Years ended December 31,
	2008			2007			2006
	(in thousands)
Revenues
Premiums	$	17,894		$	5,376		$	164
Fee income		162,777			154,376			110,718
Net investment income		173,579			172,360			136,194
Net realized investment and other gains (losses)		10,058			(5,749	)		(2,657	)
Total revenues		364,308			326,363			244,419
Benefits and expenses
Benefits to policyholders		366,299			75,041			30,548
Amortization of deferred policy acquisition costs and deferred sales inducements		(35,091	)		38,260			61,840
Other operating costs and expenses		54,527			50,072			39,655
Total benefits and expenses		385,735			163,373			132,043
(Loss) income before income taxes		(21,427	)		162,990			112,376
Income tax (benefit) expense		(11,154	)		48,261			39,903
Net (loss) income	$	(10,273	)	$	114,729		$	72,473

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

F-4

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

STATEMENTS OF CHANGES IN SHAREHOLDER’S

EQUITY AND COMPREHENSIVE INCOME

		Additional					Accumulated Other		Total
	Capital	Paid-in		Retained			Comprehensive		Shareholder’s			Outstanding
	Stock	Capital		Earnings			Income		Equity			Shares
	(in thousands)
Balance at January 1, 2006	$2,000	$	113,306	$	121,276		$	69	$	236,651		2,000
Comprehensive income:
Net income					72,473					72,473
Other comprehensive income, net of tax:
Net unrealized investment gains								958		958
Comprehensive income										73,431
Balance at December 31, 2006	$2,000	$	113,306	$	193,749		$	1,027	$	310,082		2,000
Comprehensive income:
Net income					114,729					114,729
Other comprehensive income, net of tax:
Net unrealized investment gains								10,607		10,607
Comprehensive income										125,336
Balance at December 31, 2007	$2,000	$	113,306	$	308,478		$	11,634	$	435,418		2,000
Comprehensive income:
Net loss					(10,273	)				(10,273	)
Other comprehensive income, net of tax:
Net unrealized investment gains								15,603		15,603
Comprehensive income										5,330
Capital contribution from Parent			300,000							300,000
Balance at December 31, 2008	$2,000	$	413,306	$	298,205		$	27,237	$	740,748		2,000

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

F-5

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

STATEMENTS OF CASH FLOWS

	Years ended December 31,
	2008	2007			2006
	(in thousands)
Cash flows from operating activities:
Net (loss) income	$(10,273)	$	114,729		$	72,473
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(10,058)		5,749			2,657
Increase in reinsurance recoverable	(14,162)		(8,904	)		(14,228	)
Amortization of deferred policy acquisition costs and deferred sales inducements	(35,091)		38,260			61,840
Capitalization of deferred policy acquisition costs and deferred sales inducements	(142,500)		(139,185	)		(114,573	)
Increase in accrued investment income	(120)		(1,944	)		(4,061	)
Decrease in other assets and other liabilities, net	222,832		66,389			40,514
Increase in policyholder liabilities and accruals, net	129,739		31,565			13,641
(Decrease) increase in deferred income taxes	(20,826)		15,075			2,322
Net cash provided by operating activities	119,541		121,734			60,585
Cash flows from investing activities:
Sales of:
Fixed maturities	122,486		30,918			45,385
Maturities of:
Fixed maturities	112,521		108,552			94,433
Purchases of:
Fixed maturities	(389,489)		(293,284	)		(243,091	)
Other invested assets	(29)		(83	)		-
Net purchases of short-term investments	(320,215)		(41,161	)		16,675
Policy loans advanced, net	(8,134)		(6,747	)		(6,781	)
Net change in payable for undeliverable securities	(5,157)		5,160			-
Net cash used in investing activities	(488,017)		(196,645	)		(93,379	)
Cash flows from financing activities:
Capital contribution from Parent	300,000		-			-
Deposits and interest credited to policyholder account balances	462,623		345,150			224,127
Net transfers to separate accounts from policyholders’ funds	(227,428)		(157,569	)		(98,483	)
Return of policyholder funds	(136,066)		(105,025	)		(91,546	)
Net cash provided by financing activities	399,129		82,556			34,098
Net increase in cash and cash equivalents	30,653		7,645			1,304
Cash and cash equivalents at beginning of year	33,093		25,448			24,144
Cash and cash equivalents at end of year	$63,746	$	33,093		$	25,448

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

F-6

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS

(IN THOUSANDS UNLESS OTHERWISE STATED)

Note 1—Summary of Significant Accounting Policies

Business. John Hancock Life Insurance Company of New York (the “Company”) is a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.) (“JHUSA”). JHUSA 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 stock life insurance company.

The Company provides a wide range of insurance and investment products to both individual and institutional customers located exclusively in the State of New York. These products, including individual life insurance, individual and group fixed and variable annuities, and group pension contracts, are sold through an extensive network of agents, securities dealers, and other financial institutions.

Basis of Presentation. These financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

The Company’s investment in John Hancock Investment Management Services, LLC (“JHIMS”), an affiliated company, is accounted for using the equity method of accounting and is included in investment in unconsolidated affiliate. Other equity investments in which the Company does not have a controlling financial interest, but has significant influence, are recorded using the equity method of accounting and are included in other invested assets.

Reclassifications. Certain prior year amounts have been reclassified to conform to the current year presentation.

Investments. The Company classifies its fixed maturity securities as available-for-sale and records these securities at fair value. Unrealized investment gains and losses related to available-for-sale securities are reflected in shareholder’s equity, net of policyholder related amounts and deferred income taxes. Interest income is generally recognized on the accrual basis. The amortized cost of debt securities is adjusted for other-than-temporary impairments, amortization of premiums, and accretion of discounts to maturity. Amortization of premium and accretion of discounts are included in net investment income. Impairments in value deemed to be other-than-temporary are reported as a component of net realized investment and other gains (losses).

Policy loans are carried at unpaid principal balances.

Short-term investments, which include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase, are reported at fair value.

Derivative Financial Instruments. The Company is a party to financial instruments that may contain embedded derivatives. The Company assesses each identified embedded derivative to determine whether bifurcation is required. If it is determined that the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract. Embedded derivatives are carried at fair value with changes in fair value reported in net realized investment and other gains (losses) or benefits to policyholders for certain separate account guarantees.

Cash and Cash Equivalents. Cash and cash equivalents include cash and all highly liquid debt investments with a remaining maturity of three months or less when purchased.

Deferred Policy Acquisition Costs and Deferred Sales Inducements. Deferred policy acquisition costs (“DAC”) are costs that vary with, and are related primarily to, the production of new insurance business and have been deferred to the extent that they are deemed recoverable. Such costs include sales commissions, certain costs of policy issuance and underwriting, and certain agency expenses. Similarly, any amounts assessed as initiation fees or front-end loads are recorded as unearned revenue. The Company tests the recoverability of DAC at least annually.

F-7

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 1—Summary of Significant Accounting Policies – (continued)

For annuity, group pension contracts, universal life insurance, and investment-type products, DAC and unearned revenue are amortized generally in proportion to the change in present value of expected gross profits arising principally from surrender charges, investment results, including realized gains (losses), and mortality and expense margins. DAC amortization is adjusted retrospectively when estimates are revised. For annuity, universal life insurance, and investment-type products, the DAC asset is adjusted for the impact of unrealized gains (losses) on investments as if these gains (losses) had been realized, with corresponding credits or charges included in accumulated other comprehensive income.

DAC and unearned revenue related to non-participating traditional life insurance is amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves.

The Company offers sales inducements, including enhanced crediting rates or bonus payments, to contract holders on certain of its individual and group annuity products. The Company defers sales inducements and amortizes them over the life of the underlying contracts using the same methodology and assumptions used to amortize DAC.

Reinsurance. Assets and liabilities related to reinsurance ceded contracts are reported on a gross basis. The accompanying Statements of Operations reflect premiums, benefits, and settlement expenses net of reinsurance ceded. Reinsurance premiums, commissions, expense reimbursements, benefits, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The Company remains liable to its policyholders to the extent that counterparties to reinsurance ceded contracts do not meet their contractual obligations.

Separate Account Assets and Liabilities. Separate account assets and liabilities reported on the Company’s Balance Sheets represent funds that are administered and invested by the Company to meet specific investment objectives of the contract holders. Net investment income and net realized investment and other gains (losses) generally accrue directly to such contract holders who bear the investment risk, subject, in some cases, to principal guarantees and minimum guaranteed rates of income. The assets of each separate account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account assets are reported at fair value. Deposits, surrenders, net investment income, net realized investment and other gains (losses), and the related liability changes of separate accounts are offset within the same line item in the Statements of Operations. Fees charged to contract holders, principally mortality, policy administration, investment management, and surrender charges, are included in the revenues of the Company.

Future Policy Benefits and Policyholders’ Funds. Benefit liabilities for annuities during the accumulation period are equal to accumulated contract holders’ fund balances and after annuitization are equal to the present value of expected future payments.

For non-participating traditional life insurance policies, future policy benefits are estimated using a net level premium method based upon actuarial assumptions as to mortality, persistency, interest, and expenses established at the policy issue date. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience, which, together with interest and expense assumptions, include a margin for adverse deviation.

Policyholders’ funds are primarily related to group pension contracts and are equal to the total of the policyholder account values before surrender charges. Policyholder account values include deposits plus credited interest or change in investment value less expense and mortality fees, as applicable, and withdrawals. Policy benefits are charged to expense and include benefit claims incurred in the period in excess of related policy account balances and interest credited to policyholders’ account balances.

Liabilities for unpaid claims and claim expenses include estimates of payments to be made on reported life insurance claims and estimates of incurred but not reported claims based on historical claims development patterns.

Estimates of future policy benefit reserves, claim reserves, and expenses are reviewed on a regular basis and adjusted as necessary. Any changes in estimates are reflected in current earnings.

F-8

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 1—Summary of Significant Accounting Policies – (continued)

Revenue Recognition. Premiums from non-participating traditional life insurance and annuity policies with life contingencies are recognized as revenue when due.

Deposits related to universal life contracts are credited to policyholders’ account balances. Revenues from these contracts, as well as separate accounts, annuities and group pension contracts, consist of amounts assessed against policyholders’ account balances for mortality, policy administration, and surrender charges and are recorded in fee income in the period in which the services are provided.

Income Taxes. The provision for federal income taxes includes amounts currently payable or recoverable and deferred income taxes, computed under the liability method, resulting from temporary differences between the tax basis and book basis of assets and liabilities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.

Recent Accounting Pronouncements

Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133” (“SFAS No. 161”)

In March 2008, the FASB issued SFAS No. 161 which provides extensively expanded disclosure requirements for derivative instruments and hedging activities and applies to all derivative instruments, including bifurcated derivative instruments and related hedged items which are accounted for under SFAS No. 133. SFAS No. 161 will be effective for the Company’s financial statements in 2009. The adoption of this guidance is not expected to have any material impact on the Company’s Balance Sheets or Statements of Operations.

Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”)

Effective January 1, 2008, the Company adopted SFAS No. 157, which 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. SFAS No. 157 requires, among other things, an exit value approach for valuing assets and liabilities, using the best available information about what a market would bear. The exit value approach focuses on the price 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. Exit values for liabilities should include margins for risk even if they are not observable. SFAS No. 157 provides guidance on how to measure fair value when required under existing accounting standards. SFAS No. 157 establishes a fair value hierarchy based on the observability of the inputs to valuation techniques used to measure fair value, classified in three levels (“Level 1, 2 and 3”) with the most observable input level being Level 1. The impact of changing of valuation methods to comply with SFAS No. 157 resulted in adjustments to actuarial liabilities, which were recorded as a decrease in net income of $14.3 million, net of tax, as of January 1, 2008.

FASB Financial Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109” (“FIN No. 48”)

In June 2006, the FASB issued FIN No. 48 which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. FIN No. 48 requires evaluation of whether a tax position taken on a tax return is more likely than not to be sustained if challenged, and if so, evaluation of the largest benefit that is more than 50% likely of being realized on ultimate settlement. Differences between these benefits and actual tax positions result in either (a) an increase in a liability for income taxes payable or a reduction of an income tax refund receivable, (b) a reduction in a deferred tax asset or an increase in a deferred tax liability, or both (a) and (b). FIN No. 48 requires recording a cumulative effect of adoption in retained earnings as of beginning of year of adoption.

FIN No. 48 was effective for the Company’s financial statements beginning January 1, 2007. The Company had no cumulative effect of adoption to its January 1, 2007 retained earnings. Adoption of FIN No. 48 had no material impact on the Company’s Balance Sheets at December 31, 2007 or Statements of Operations for the year ended December 31, 2007.

F-9

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 1—Summary of Significant Accounting Policies – (continued)

AICPA Statement of Position 05-1, “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts” (“SOP 05-1”)

In September 2005, the Accounting Standards Executive Committee (“AcSEC”) of the American Institute of Certified Public Accountants (“AICPA”) issued SOP 05-1. SOP 05-1 provides guidance on accounting for deferred acquisition costs of internal replacements of insurance and investment contracts. An internal replacement that is determined to result in a replacement contract that is substantially changed from the replaced contract should be accounted for as an extinguishment of the replaced contract. Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from extinguished contracts should no longer be deferred and should be charged to expense.

SOP 05-1 was effective for the Company’s internal replacements occurring on or after January 1, 2007. Retrospective adoption is not permitted. In connection with the Company’s adoption of SOP 05-01 as of January 1, 2007, there was no material impact to the Company’s Balance Sheets or Statements of Operations.

Note 2—Investments

Fixed Maturities

The Company’s investments in fixed maturities classified as available-for-sale are summarized below:

	December 31, 2008
	Amortized Cost	Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities:
Corporate securities	$339,083	$	22,522	$	2,728	$	358,877
Debt securities issued by foreign governments	2,010		30		-		2,040
U.S. Treasury securities and obligations of U.S. government corporations and agencies	328,961		35,680		32		364,609
Total fixed maturities available-for-sale	$670,054	$	58,232	$	2,760	$	725,526
	December 31, 2007
	Amortized Cost	Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Fixed maturities:
Corporate securities	$212,563	$	5,264	$	45	$	217,782
Debt securities issued by foreign governments	8,596		7		5		8,598
U.S. Treasury securities and obligations of U.S. government corporations and agencies	289,163		13,142		-		302,305
Total fixed maturities available-for-sale	$510,322	$	18,413	$	50	$	528,685

The amortized cost and fair value of fixed maturities at December 31, 2008, by contractual maturity, are shown below:

	Amortized Cost	Fair Value
Fixed maturities:
Due in one year or less	$112,929	$	113,314
Due after one year through five years	289,639		308,203
Due after five years through ten years	168,538		184,464
Due after ten years	98,948		119,545
Total	$670,054	$	725,526

Expected maturities may differ from contractual maturities because eligible borrowers may exercise their right to call or prepay obligations with or without call or prepayment penalties.

F-10

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 2—Investments – (continued)

Fixed Maturities Impairment Review

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 market value is less than 80 percent of amortized cost for six months or more to determine whether impairments need to be taken. 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 Credit 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 maturities 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 is deemed to be other-than-temporarily impaired, the difference between amortized cost and fair value would be charged to earnings.

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 our assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that 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 our investment professionals who determine the fair value estimates and other-than-temporary impairments, and (4) the risk that new information obtained by us or changes in other facts and circumstances lead us to change our intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to earnings in a future period.

The cost amounts for fixed maturity securities are net of the other-than-temporary impairment charges.

The following table shows the carrying value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities have been in a continuous unrealized loss position:

Unrealized Losses on Fixed Maturity Securities — By Investment Age

	Year ended December 31, 2008
	Less than 12 months				12 months or more				Total
	Carrying     Value		Unrealized     Losses		Carrying     Value		Unrealized     Losses		Carrying     Value		Unrealized     Losses
Corporate securities	$	96,056	$	2,728	$	-	$	-	$	96,056	$	2,728
U.S. Treasury securities and obligations of U.S. government corporations and agencies		9,984		32		-		-		9,984		32
Total	$	106,040	$	2,760	$	-	$	-	$	106,040	$	2,760

F-11

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 2—Investments – (continued)

	Year ended December 31, 2007
	Less than 12 months				12 months or more				Total
	Carrying     Value		Unrealized     Losses		Carrying     Value		Unrealized     Losses		Carrying     Value		Unrealized     Losses
Corporate securities	$	-	$	-	$	7,134	$	45	$	7,134	$	45
Debt securities issued by foreign governments		-		-		5,031		5		5,031		5
Total	$	-	$	-	$	12,165	$	50	$	12,165	$	50

Unrealized losses can be created by rising interest rates or by rising credit concerns and hence 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. The Company did not hold any below investment grade fixed maturity securities at December 31, 2008 and December 31, 2007.

At December 31, 2008 and 2007, there were 37 and 5 fixed maturity securities with an aggregate gross unrealized loss of $2,760 and $50, respectively, of which the single largest unrealized loss was $472 and $20, respectively. The Company anticipates that these fixed maturity securities will perform in accordance with their contractual terms and currently has the ability and intent to hold these securities until they recover or mature.

There were no non-income producing available-for-sale securities for the year ended December 31, 2008. Non-income producing assets represent investments that have not produced income for the twelve months preceding December 31, 2008.

Assets on Deposit

As of December 31, 2008 and 2007, fixed maturity securities with a fair value of $589 and $497 were on deposit with the State of New York as required by law.

Equity Method Investments

The Company has a 38% equity ownership in JHIMS, which is included in investment in unconsolidated affiliate, and is allocated approximately 39% of earnings pursuant to the Limited Liability Company Agreement. As of December 31, 2008 and 2007, total assets of JHIMS were $27,146 and $39,838, respectively, and total liabilities of JHIMS were $25,413 and $37,732, respectively. Income earned from the Company’s investment in JHIMS was $136,734, $139,199, and $112,874 for the years ended December 31, 2008, 2007, and 2006, respectively, and is included in net investment income. For the years ended December 31, 2008, 2007, and 2006, net income of JHIMS was $350,370, $352,922, and $283,029, respectively.

F-12

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 2—Investments – (continued)

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

The following information summarizes the components of net investment income and net realized investment and other gains (losses):

	Years ended December 31,
	2008		2007			2006
Net investment income
Fixed maturities	$	30,460	$	26,682		$	20,004
Policy loans		3,053		2,547			1,727
Short-term investments		4,646		4,605			2,398
Other (1)		136,690		139,203			112,874
Gross investment income		174,849		173,037			137,003
Less investment expenses		1,270		677			809
Net investment income	$	173,579	$	172,360		$	136,194
Net realized investment and other gains (losses)
Fixed maturities	$	5,788	$	(1,639	)	$	(2,554	)
Short-term investments		8		1			-
Other		4,262		(4,111	)		(103	)
Net realized investment and other gains (losses)	$	10,058	$	(5,749	)	$	(2,657	)

(1) Primarily represents income earned from the Company’s investment in JHIMS.

Gross gains were realized on the sale of available-for-sale securities of $7,454, $443, and $0 for the years ended December 31, 2008, 2007, and 2006, respectively, and gross losses were realized on the sale of available-for-sale securities of $148, $0, and $1,131 for the years ended December 31, 2008, 2007, and 2006, respectively. In addition, other-than-temporary impairments on available-for-sale securities of $1,550, $2,082, and $1,562 for the years ended December 31, 2008, 2007, and 2006, respectively, were recognized in the Statements of Operations.

Note 3—Income Taxes

The Company joins with its affiliates in filing a consolidated tax return.

In accordance with the income tax sharing agreements in effect for the applicable tax years, the income tax provision (or benefit) is computed as if each entity filed separate federal income tax returns. The tax charge to each of the respective companies will not be more than that which each company would have paid on a separate return basis. 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. Tax benefits from operating losses are provided at the U.S. statutory rate plus any tax credits attributable, provided the consolidated group utilizes such benefits currently.

F-13

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 3—Income Taxes – (continued)

The components of income taxes were as follows:

	Years ended December 31,
	2008	2007		2006
Current taxes:
Federal	$9,672	$	33,186	$	37,581
Deferred taxes:
Federal	(20,826)		15,075		2,322
Total income tax (benefit) expense	$(11,154)	$	48,261	$	39,903

A reconciliation of income taxes at the federal income tax rate to income tax expense charged to operations follows:

	Years ended December 31,
	2008	2007			2006
Tax at 35%	$(7,500)	$	57,047		$	39,331
Add (deduct):
Prior year taxes	2,986		(10,962	)		(8	)
Dividends received deduction	(6,347)		(11,031	)		(1,909	)
Unrecognized tax benefits	168		13,798			2,411
Other	(461)		(591	)		78
Total income tax (benefit) expense	$(11,154)	$	48,261		$	39,903

Deferred income tax assets and liabilities result from tax effecting the differences between the financial statement values and income tax values of assets and liabilities at each Balance Sheet date. Deferred tax assets and liabilities consisted of the following:

	December 31,
	2008	2007
Deferred tax assets:
Differences in computing policy reserves	$107,681	$	98,627
Securities and other investments	79,130		12,881
Unearned revenue	14,681		6,319
Other	6,807		3,134
Total deferred tax assets	208,299		120,961
Deferred tax liabilities:
Unrealized gains on investments	14,666		6,511
Deferred policy acquisition costs	170,874		119,002
Reinsurance	67,823		55,890
Deferred sales inducements	15,966		12,983
Total deferred tax liabilities	269,329		194,386
Net deferred tax liabilities	$61,030	$	73,425

At December 31, 2008 and December 31, 2007 the Company had $0 of operating loss carryforwards. The Company believes that it will realize the full benefit of its deferred tax assets.

F-14

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 3—Income Taxes – (continued)

The Company made income tax payments of $32,024 and $32,462 in 2008 and 2007, respectively. The Company received an income tax refund of $492 in 2006.

The Company files income tax returns in the U.S. federal jurisdiction and in New York. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by taxing authorities for years before 2003.

The Internal Revenue Service (“IRS”) completed its examinations for years 1998 through 2003 on December 31, 2005. The Company filed protests with the IRS Appeals Division of various adjustments raised by the IRS in its examinations of these years. The issues under protest were resolved in the third quarter of 2008 and the results of that resolution are reflected in these statements. The IRS commenced an examination of the Company’s income tax returns for years 2004 through 2005 in the third quarter of 2007. It is anticipated that the examination will be completed by the end of 2009.

The Company adopted the provisions of FIN No. 48 on January 1, 2007. In connection with the adoption of FIN No. 48, the Company did not recognize an increase or decrease in its liability for unrecognized tax benefits.

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

	December 31,
	2008	2007
Balance, beginning of year	$16,208	$	7,322
Additions based on tax positions related to the current year	3,366		4,704
(Reductions) additions for tax positions of prior years	(3,198)		4,182
Balance, end of year	$16,376	$	16,208

Included in the balance as of December 31, 2008 and 2007, respectively are $16,376 and $16,208 of unrecognized benefits that, if recognized, would affect the Company’s effective tax rate.

Included in the balance as of December 31, 2008, are $0 of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest or penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of taxes to an earlier period.

The Company recognizes interest accrued related to unrecognized tax benefits in interest expense (part of other operating costs and expenses) and penalties in income tax expense. During the years ended December 31, 2008, 2007, and 2006, the Company recognized approximately $(846), $845, and $354 in interest expense, respectively. The Company had approximately $353 and $1,199 accrued for interest as of December 31, 2008 and December 31, 2007, respectively. The Company did not recognize any material amounts of penalties during the years ended December 31, 2008, 2007, and 2006.

Note 4—Related Party Transactions

Service Agreements

The Company has formal service agreements with MLI and JHUSA. Under these agreements, the Company will pay direct investment and operating expenses incurred by MLI and JHUSA on behalf of the Company. Services provided under the agreements include legal, personnel, marketing, investment accounting, and certain other administrative services and are billed based on intercompany cost allocations. Pursuant to an administrative services agreement effective for 2001 and beyond, all intercompany services are billed through JHUSA to the Company. Pursuant to an investment services agreement, all investment services are billed directly by MLI to the Company. Costs incurred under the agreements were $47,236, $44,939, and $38,088 for the years ended December 31, 2008, 2007, and 2006, respectively. As of December 31, 2008 and December 31, 2007, the Company had accrued payables of $8,663 and $14,908, respectively.

F-15

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 4—Related Party Transactions – (continued)

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

Capital Stock Transactions

On December 24, 2008, the Company issued one share of common stock to JHUSA for $300 million in cash.

Other

John Hancock Distributors, LLC, a wholly owned subsidiary of JHUSA, is the exclusive distributor of all variable annuity, variable life, and group pension contracts issued by the Company. For the years ended December 31, 2008, 2007, and 2006, the Company was billed underwriting commissions of $138,198, $138,822, and $106,609, respectively. The Company had accrued payables for services provided of $3,591 and $4,383 at December 31, 2008 and 2007, respectively.

The Company had a receivable from JHIMS relating to distributions of $8,907 and $10,585, which was included in accrued investment income at December 31, 2008 and 2007, respectively.

The Company participates in a liquidity pool operated by JHUSA, in which affiliates can invest excess cash. Terms of participation in the liquidity pool are set out in the Liquidity Pool and Loan Facility Agreements effective November 13, 2007. The Company had $66,091 and $21,795 invested in this pool at December 31, 2008 and 2007, respectively.

Note 5—Reinsurance

The effect of reinsurance on life premiums written and earned was as follows:

	Years ended December 31,
	2008						2007						2006
	Premiums						Premiums						Premiums
	Written			Earned			Written			Earned			Written			Earned
Direct	$	69,263		$	70,116		$	34,919		$	35,035		$	18,448		$	18,693
Ceded		(52,222	)		(52,222	)		(29,659	)		(29,659	)		(18,529	)		(18,529	)
Net life premiums	$	17,041		$	17,894		$	5,260		$	5,376		$	(81	)	$	164

At December 31, 2008, the Company had treaties with twenty-two reinsurers (twenty non-affiliated and two affiliated). The per policy life risk retained by the Company is capped at a maximum of $100. In 2008, recoveries under these agreements totaled $28,010 on $35,001 of death claims. In 2007, recoveries under these agreements totaled $14,008 on $17,180 of death claims. In 2006, recoveries under these agreements totaled $2,204 on $3,911 of death claims.

The Company utilizes reinsurance agreements to provide for greater diversification of business, allowing management to control exposure to potential losses arising from large risks and provide additional capacity for growth. 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 among the reinsurers.

F-16

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Pension and Other Postretirement Benefit Plans

The Company participates in a funded qualified defined benefit plan (the “Plan”), which is sponsored by an affiliate, John Hancock Financial Services, Inc. (“JHFS”). Historically, pension benefits were calculated utilizing a traditional formula. Under the traditional formula, benefits are provided based upon length of service and final average compensation. As of July 1,1998, all defined benefit pension plans were amended to a cash balance basis. Under the cash balance formula, participants are credited with benefits equal to a percentage of eligible pay, as well as interest. In addition, early retirement benefits are subsidized for certain grandfathered employees. The costs associated with the Plan were charged to the Company and were not material for the years ended December 31, 2008, 2007, and 2006, respectively.

The Company also participates in unfunded non-qualified defined benefit plans, which provide supplemental benefits in excess of the compensation limit outlined in the Internal Revenue Code, for certain employees. The non-qualified defined benefit plans are sponsored by JHFS.

The Company participates in postretirement medical and life insurance benefit plans for its retired employees and their spouses, which are sponsored by JHFS. Certain employees hired prior to 2005 who meet age and service criteria may be eligible for these postretirement benefits in accordance with the plans’ provisions. The majority of retirees contribute a portion of the total cost of postretirement medical benefits. Life insurance benefits are based on final compensation subject to the plan maximum.

The employee welfare plan was amended effective January 1, 2007 whereby participants who had not reached a certain age and years of service with the Company were no longer eligible for such Company contributory benefits. Also the number of years of service required to be eligible for the benefit was increased to 15 years for all participants. The future retiree life insurance coverage amount was frozen as of December 31, 2006.

The Company participates in a qualified defined contribution plan sponsored by JHFS. The costs associated with the defined contribution plan were charged to the Company and were not material for the years ended December 31, 2008, 2007, and 2006.

The Company uses a December 31 measurement date to account for its pension and other postretirement benefit plans.

F-17

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 7—Commitments and Legal Proceedings

Commitments. The Company leases office space under operating lease agreements, which will expire in March of 2010. Rental expenses were $75, $75, and $94 for the years ended December 31, 2008, 2007, and 2006, respectively.

The future minimum lease payments by year and in the aggregate, under the remaining operating leases are presented below:

	Operating     Leases
2009	$	73
2010		18
Total minimum lease payments	$	91

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 and as a taxpayer. In addition, the New York Insurance Department, the New York Attorney General, the United States Securities and Exchange Commission, the Financial Industry 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. The Company does not believe that the conclusion of any current legal or regulatory matters, either individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations.

Note 8—Shareholder’s Equity

Capital Stock

The Company has one class of capital stock, common stock. All of the outstanding common stock of the Company is owned by JHUSA, the parent.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows:

	Net Unrealized Investment Gains (Losses)			Accumulated Other Comprehensive Income
Balance at January 1, 2006	$	69		$	69
Gross unrealized investment gains (net of deferred income tax expense of $242)		451			451
Reclassification adjustment for losses realized in net income (net of income tax benefit of $396)		735			735
Adjustment for deferred policy acquisition costs and deferred sales inducements (net of deferred income tax benefit of $122)		(228	)		(228	)
Net unrealized investment gains		958			958
Balance at December 31, 2006	$	1,027		$	1,027

F-18

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 8—Shareholder’s Equity – (continued)

	Net Unrealized Investment   Gains (Losses)			Accumulated Other Comprehensive   Income
Balance at January 1, 2007	$	1,027		$	1,027
Gross unrealized investment gains (net of deferred income tax expense of $6,194)		11,503			11,503
Reclassification adjustment for gains realized in net income (net of income tax expense of $155)		(288	)		(288	)
Adjustment for deferred policy acquisition costs and deferred sales inducements (net of deferred income tax benefit of $327)		(608	)		(608	)
Net unrealized investment gains		10,607			10,607
Balance at December 31, 2007	$	11,634		$	11,634
Gross unrealized investment gains (net of deferred income tax expense of $15,483)	$	28,753		$	28,753
Reclassification adjustment for gains realized in net income (net of income tax expense of $2,557)		(4,749	)		(4,749	)
Adjustment for deferred policy acquisition costs, deferred sales inducements and unearned revenue liability (net of deferred income tax benefit of $2,971)		(5,514	)		(5,514	)
Adjustment for policyholder liabilities (net of deferred income tax benefit of $1,554)		(2,887	)		(2,887	)
Net unrealized investment gains		15,603			15,603
Balance at December 31, 2008	$	27,237		$	27,237

Net unrealized investment gains (losses) included on the Company’s Balance Sheets as a component of shareholder’s equity are summarized below:

	December 31,
	2008			2007			2006
Balance, end of year comprises:
Unrealized investment gains on:
Fixed maturities	$	55,472		$	18,363		$	564
Short-term and other investments		62			241			786
Total		55,534			18,604			1,350
Amounts of unrealized investment (losses) gains attributable to:
Deferred policy acquisition costs, deferred sales inducements and unearned revenue liability		(9,190	)		(705	)		230
Policyholder liabilities		(4,441	)		-			-
Deferred income taxes		(14,666	)		(6,265	)		(553	)
Total		(28,297	)		(6,970	)		(323	)
Net unrealized investment gains	$	27,237		$	11,634		$	1,027

F-19

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 8—Shareholder’s Equity – (continued)

Statutory Results

The Company is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile, which is New York.

The Company’s statutory net (loss) income for the years ended December 31, 2008, 2007, and 2006 was $(329,444) (unaudited), $66,248, and $55,395, respectively.

The Company’s statutory capital and surplus as of December 31, 2008 and 2007 was $218,287 (unaudited) and $223,839, respectively.

There was a prescribed practice for the year ended December 31, 2008. Additional reserves for guaranteed benefits on variable annuities pursuant to State of New York Regulation 128 of $236,100 were recorded. This reserve adjustment reduced statutory operating income and surplus by $153,465, net of tax. This required adjustment reduced statutory operations and surplus by an amount in excess of the amount required as defined by The National Association of Insurance Commissioners Accounting Practices and Procedures.

Under New York insurance law, no insurer may pay any shareholder dividends from any source other than statutory unassigned surplus without the prior approval of the Superintendent of Insurance (the “Superintendent”). New York law also limits the aggregate amount of dividends an insurer may pay in any calendar year, without the prior permission of the Superintendent, to the lesser of (i) 10% of its statutory policyholders’ surplus as of the immediately preceding calendar year or (ii) the company’s statutory net gain from operations for the immediately preceding calendar year, not including realized capital gains, if such insurer is a life company.

Note 9—Capital Maintenance Agreement

Pursuant to a capital maintenance agreement and subject to regulatory approval, MLI has agreed to maintain the Company’s statutory capital and surplus at a specified level and to ensure that sufficient funds are available for the timely payment of contractual obligations.

Note 10—Segment Information

The Company operates in the following three business segments: (1) Protection and (2) Wealth Management, which primarily serve retail customers and (3) Corporate.

The Company’s reportable segments are strategic business units offering different products and services. The reportable segments are managed separately, as they focus on different products, markets, and distribution channels.

Protection Segment. Offers a variety of individual life insurance products, including whole life, term life, universal life, and variable life insurance. Products are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing.

Wealth Management Segment. Offers individual and group annuities and group pension contracts. Individual annuities consist of fixed deferred annuities, fixed immediate annuities, and variable annuities. This segment distributes its products through multiple distribution channels, including insurance agents and brokers affiliated with the Company, securities brokerage firms, financial planners, and banks.

Corporate. Includes corporate operations primarily related to certain financing activities and income on capital not specifically allocated to the reporting segments.

The accounting policies of the segments are the same as those described in Note 1—Summary of Significant Accounting Policies. Allocations of net investment income are based on the amount of assets allocated to each segment. Other costs and operating expenses are allocated to each segment based on a review of the nature of such costs, cost allocations utilizing time studies, and other relevant allocation methodologies.

F-20

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Segment Information – (continued)

The following table summarizes selected financial information by segment for the periods indicated:

	Protection			Wealth Management			Corporate			Total
2008
Revenues from external customers	$	82,549		$	98,123		$	(1	)	$	180,671
Net investment income		11,807			23,333			138,439			173,579
Net realized investment and other gains (losses)		10,408			781			(1,131	)		10,058
Revenues	$	104,764		$	122,237		$	137,307		$	364,308
Net (loss) income	$	(5,102	)	$	(90,670	)	$	85,499		$	(10,273	)
Supplemental Information:
Equity in net income of investees accounted for by the equity method	$	214		$	21,188		$	115,332		$	136,734
Carrying value of investments accounted for under the equity method		-			-			800			800
Amortization of deferred policy acquisition costs and deferred sales inducements		(8,081	)		(27,010	)		-			(35,091	)
Income tax (benefit) expense		(2,975	)		(59,430	)		51,251			(11,154	)
Segment assets	$	613,523		$	5,370,457		$	951,987		$	6,935,967
	Protection			Wealth Management			Corporate			Total
2007
Revenues from external customers	$	61,435		$	98,318		$	(1	)	$	159,752
Net investment income		6,925			30,190			135,245			172,360
Net realized investment and other (losses) gains		(5,132	)		180			(797	)		(5,749	)
Revenues	$	63,228		$	128,688		$	134,447		$	326,363
Net income	$	5,318		$	16,335		$	93,076		$	114,729
Supplemental Information:
Equity in net income of investees accounted for by the equity method	$	165		$	21,582		$	117,452		$	139,199
Carrying value of investments accounted for under the equity method		-			-			800			800
Amortization of deferred policy acquisition costs and deferred sales inducements		14,838			23,422			-			38,260
Income tax expense		2,776			5,826			39,659			48,261
Segment assets	$	429,618		$	6,859,426		$	536,585		$	7,825,629

F-21

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Segment Information – (continued)

	Protection			Wealth Management			Corporate			Total
2006
Revenues from external customers	$	35,299		$	75,583		$	-		$	110,882
Net investment income		4,497			25,611			106,086			136,194
Net realized investment and other losses		(1,677	)		(190	)		(790	)		(2,657	)
Revenues	$	38,119		$	101,004		$	105,296		$	244,419
Net (loss) income	$	(2,510	)	$	6,724		$	68,259		$	72,473
Supplemental Information:
Equity in net income of investees accounted for by the equity method	$	98		$	17,034		$	95,742		$	112,874
Carrying value of investments accounted for under the equity method		-			-			800			800
Amortization of deferred policy acquisition costs and deferred sales inducements		24,353			37,487			-			61,840
Income tax (benefit) expense		(964	)		3,502			37,365			39,903

The Company operates primarily in the United States and has no reportable major customers.

Note 11—Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments. Fair values have been determined by using available market information and the valuation methodologies described below.

	December 31,
	2008				2007
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities:
Available-for-sale	$	725,526	$	725,526	$	528,685	$	528,685
Policy loans		43,226		43,226		35,092		35,092
Short-term investments		514,258		514,258		194,215		194,215
Cash and cash equivalents		63,746		63,746		33,093		33,093
Embedded derivatives		40,182		40,182		19,959		19,959
Separate account assets		4,864,500		4,864,500		6,513,671		6,513,671
Liabilities:
Fixed rate deferred and immediate annuities		66,067		65,650		53,833		53,726
Embedded derivatives		275,495		275,495		48,246		48,246

Effective January 1, 2008, the Company adopted SFAS No. 157, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS No. 157 defines fair value as the price 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. The exit value assumes the asset or liability is exchanged in an orderly transaction; it is not a forced liquidation or distressed sale.

SFAS No. 157 resulted in effectively creating the following two primary categories of financial instruments for the purpose of fair value disclosure.

• Financial Instruments Measured at Fair Value and Reported in the Balance Sheets—This category includes assets and liabilities measured at fair value on a recurring and non recurring basis. Financial instruments measured on a recurring basis include fixed maturities, short-term investments, derivatives and separate account assets. Assets and liabilities measured at fair value on a non recurring basis include mortgage loans, joint ventures and limited partnership interests, which are reported at fair value only in a period in which an impairment is recognized.

F-22

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 11—Fair Value of Financial Instruments – (continued)

• Other Financial Instruments not Reported at Fair Value – This category includes assets and liabilities which do not require the additional SFAS No. 157 disclosures, as follows:

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

Cash and cash equivalents – The carrying values for cash and cash equivalents approximate fair value due to the short-term maturities of these instruments.

Fixed-rate deferred and immediate annuities – The fair value of these financial instruments are estimated by projecting multiple stochastically generated interest rate scenarios under a risk neutral environment reflecting inputs (interest rates, volatility, etc.) observable at the valuation date.

Financial Instruments Measured at Fair Value on the Balance Sheets

Valuation Hierarchy

Following SFAS No. 157 guidance, 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. Valuations are based on quoted prices reflecting market transactions involving assets or liabilities identical to those being measured. Level 1 securities primarily include 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 debt securities and short-term investments are classified within Level 2.

• Level 3 – Fair value measurements using significant non market 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. Embedded derivatives related to reinsurance agreements or product guarantees are included in this category.

Determination of Fair Value

The valuation methodologies used to determine the fair values of assets and liabilities under SFAS No. 157 reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. When available, the Company uses quoted market prices to determine fair value, and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon valuation techniques which discount expected cash flows utilizing independent market observable interest rates based on the credit quality and duration of the instrument. Items valued using models are classified according to the lowest level input that is significant to the valuation. Thus, an item may be classified in Level 3 even though significant market observable inputs are used.

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.

F-23

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 11—Fair Value of Financial Instruments – (continued)

Fair Value Measurements on a Recurring Basis

Fixed Maturities

For fixed maturities, including corporate, US Treasury, Government of Canada, provincial and municipal securities, 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. These fixed maturities are classified within Level 2. Fixed maturities with significant pricing inputs which are unobservable are classified within Level 3.

Short-term Investments

Short-term investments are comprised of securities due to mature within one year of the date of purchase that are traded in active markets, and are classified within Level 1 as fair values are based on quoted market prices. Securities such as commercial paper and discount notes are classified within Level 2 because these securities are typically not actively traded due to their short maturities and, as such, their cost generally approximates fair value.

Embedded Derivatives

As defined in SFAS No. 133 “Accounting for Derivative Instruments and Hedging Activities” (“SFAS No. 133”) and Statement of Position (“SOP 03-1”), Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, the Company holds assets and liabilities classified as embedded derivatives, which are reported separately on the balance sheets. Those assets include guaranteed minimum income benefits that are ceded under modified coinsurance reinsurance arrangements (“Reinsurance GMIB Assets”). Liabilities include policyholder benefits offered under variable annuity contracts such as guaranteed minimum withdrawal benefits with a term certain (“GMWB”).

Embedded derivatives are recorded in financial statements at fair value, separately from their host contract, and the change in their fair value is reflected in benefits to policyholders. Many factors including, but not limited to, market conditions, credit ratings, variations in actuarial assumptions regarding policyholder liabilities and risk margins related to non-capital market inputs may result in significant fluctuations in the fair value of these embedded derivatives that could materially affect net income.

The fair value of embedded derivatives is estimated as the present value of future benefits less the present value of future fees. The fair value calculation includes assumptions for risk margins including nonperformance risk.

Risk margins are established to capture the risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, persistency, partial withdrawal and surrenders. The establishment of these actuarial assumptions, risk margins, nonperformance risk, and other inputs requires the use of significant judgment.

Nonperformance risk refers to the risk that the obligation will not be fulfilled and affects the value of the liability. The fair value measurement assumes that the nonperformance risk is the same before and after the transfer. Therefore, fair value reflects the reporting entity’s own credit risk.

F-24

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 11—Fair Value of Financial Instruments – (continued)

Nonperformance risk for liabilities held by the Company is based on MFC’s own credit risk, which is determined by taking into consideration publicly available information relating to MFC’s debt as well as its claims paying ability. Nonperformance risk is also reflected in the Reinsurance GMIB assets held by the Company. The credit risk of the reinsurance companies is most representative of the nonperformance risk for Reinsurance GMIB assets, and is derived from publicly available information relating to the reinsurance companies’ publicly issued debt.

Separate Account Assets

Separate account assets are reported at fair value and reported as a summarized total on the balance sheets in accordance with SOP 03-1. The fair value of separate account assets are based on the fair value of the underlying assets owned by the separate account. Assets owned by the Company’s separate accounts primarily include: investments in mutual funds, and short-term investments and cash and cash equivalents.

The fair value of mutual fund investments is based upon quoted market prices or reported net asset values (“NAV”). Open-ended mutual fund investments are included in Level 1. The fair values of fixed maturity securities, equity securities, short-term investments, and cash equivalents held by separate accounts are determined on a basis consistent with the methodologies described herein for similar financial instruments held within the Company’s general account.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by SFAS No. 157 fair value hierarchy levels, as of December 31, 2008.

	December 31, 2008
	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Fixed maturities:
Available-for-sale	$	725,526	$	-	$	725,526	$	-
Short-term investments		514,258		-		514,258		-
Separate account assets (1)		4,864,500		4,864,500		-		-
Embedded derivatives		40,182		-		-		40,182
Total assets at fair value	$	6,144,466	$	4,864,500	$	1,239,784	$	40,182
Liabilities:
Embedded derivatives	$	275,495	$	-	$	-	$	275,495
Total liabilities at fair value	$	275,495	$	-	$	-	$	275,495

(1) Separate account assets are recorded at fair value. 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 as prescribed by SOP 03-1.

F-25

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 11—Fair Value of Financial Instruments – (continued)

Level 3 Financial Instruments

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Net Embedded Derivatives
Balance at January 1, 2008	$	(28,287	)
Net realized/unrealized gains (losses) included in:
Net income (1)		(207,026	)
Other comprehensive income		-
Purchases, issuances, (sales) and (settlements), net		-
Transfers in and/or (out) of Level 3, net (2)		-
Balance at December 31, 2008	$	(235,313	)
Gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31, 2008	$	(207,026	)

(1) This amount is included in benefits to policyholders on the statement of operations. All gains and losses on level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is not practicable to track realized and unrealized gains (losses) separately on a contract by contract basis.

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

Financial Instruments Measured at Fair Value on a Non Recurring Basis

Certain financial assets are reported at fair value on a non recurring basis, including investments such as mortgage loans, joint ventures and limited partnership interests, which are reported at fair value only in a period in which an impairment is recognized. The fair value of these securities is calculated using either models that are widely accepted in the financial services industry or the valuation of collateral underlying impaired mortgages. During the reporting period, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

Note 12—Certain Separate Accounts

The Company issues variable annuity and variable life contracts through its separate accounts for which investment income and investment gains and losses accrue to, and investment risk is borne by, the contract holder. All contracts contain certain guarantees, which are discussed more fully below.

The assets supporting the variable portion of variable annuities are carried at fair value and reported on the Balance Sheets as separate account assets with an equivalent amount reported for separate account liabilities. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenue, and changes in liabilities for minimum guarantees are included in benefits to policyholders in the Company’s Statements of Operations. In 2008 and 2007, there were no gains or losses on transfers of assets from the general account to the separate account.

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.

F-26

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 12—Certain Separate Accounts – (continued)

The following table reflects variable life insurance contracts with guarantees held by the Company:

	December 31,
	2008		2007
	(in millions, except for age)
Life insurance contracts with guaranteed benefits
In the event of death
Account value	$	24	$	18
Net amount at risk related to deposits		5		5
Average attained age of contract holders		43		41

Many of the variable annuity contracts issued by the Company offer various guaranteed minimum death, income, and/or withdrawal benefits. Guaranteed Minimum Death Benefit (“GMDB”) features guarantee the contract holder either (a) 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, or (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary.

The Company sold contracts with Guaranteed Minimum Income Benefit (“GMIB”) riders from 2001 to 2004. The GMIB rider provides a guaranteed lifetime annuity, which may be elected by the contract holder after a stipulated waiting period (ten years), and which may be larger than what the contract account balance would purchase at then-current annuity purchase rates.

In 2004, the Company introduced 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.

F-27

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 12—Certain Separate Accounts – (continued)

The Company had the following variable annuity contracts with guarantees. Amounts at risk are shown net of reinsurance. Note that the Company’s variable annuity contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive.

	December 31,
	2008		2007
	(in millions, except for ages)
Guaranteed Minimum Death Benefit
Return of net deposits
In the event of death
Account value	$	1,078	$	1,259
Net amount at risk- net of reinsurance		328		3
Average attained age of contract holders		57		58
Highest specified anniversary account value minus withdrawals post anniversary
In the event of death
Account value	$	2,322	$	3,348
Net amount at risk- net of reinsurance		656		40
Average attained age of contract holders		57		57
Guaranteed Minimum Income Benefit
Account value	$	401	$	675
Net amount at risk- net of reinsurance		-		-
Average attained age of contract holders		53		52
Guaranteed Minimum Withdrawal Benefit
Account value	$	2,075	$	2,514
Net amount at risk		860		9
Average attained age of contract holders		56		54

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

	December 31,
	2008		2007
	(in millions)
Type of Fund
Domestic Equity	$	681	$	1,210
International Equity		169		255
Balanced		1,899		2,451
Bonds		298		410
Money Market		155		83
Total	$	3,202	$	4,409

F-28

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 12—Certain Separate Accounts – (continued)

The following table summarizes the liabilities for guarantees on variable contracts reflected in the general account:

	Guaranteed         Minimum         Death          Benefit         (GMDB)			Guaranteed Minimum Income Benefit (GMIB)			Guaranteed Minimum Withdrawal Benefit (GMWB)		Total
	(in millions)
Balance at January 1, 2008	$	11		$	4		$	48	$	63
Incurred guarantee benefits		(8	)		-			-		(8	)
Other reserve changes		33			8			229		270
Balance at December 31, 2008		36			12			277		325
Reinsurance recoverable		(1	)		(40	)		-		(41	)
Net balance at December 31, 2008	$	35		$	(28	)	$	277	$	284
Balance at January 1, 2007	$	10		$	2		$	6	$	18
Incurred guarantee benefits		(3	)		-			-		(3	)
Other reserve changes		4			2			42		48
Balance at December 31, 2007		11			4			48		63
Reinsurance recoverable		-			(20	)		-		(20	)
Net balance at December 31, 2007	$	11		$	(16	)	$	48	$	43

The GMDB gross and ceded reserves, the GMIB gross reserves, and the life portion of the GMWB reserves were determined in accordance with SOP 03-1, and the GMIB reinsurance recoverable and GMWB gross reserve were determined in accordance with SFAS No. 133.

The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefits to policyholders, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the amounts above at December 31, 2008 and 2007:

• Data used included 1,000 stochastically generated investment performance scenarios. For SFAS No. 133 calculations, risk neutral scenarios were used.

• For life products, reserves were established using stochastic modeling of future separate account returns and best estimate mortality, lapse, and premium persistency assumptions, which vary by product.

• Mean return and volatility assumptions were determined by asset class. Market consistent observed volatilities were used where available for SFAS No. 133 calculations.

• Annuity mortality was based on the 1994 MGDB table multiplied by factors varied by rider types (living benefit/GMDB only) and qualified and non-qualified business.

• Annuity base lapse rates vary by contract type, rider type, commission type and duration. The base lapse rates ranges from 2% to 41.5%.

• The discount rate is 7% (in-force issued before 2004) or 6.4% (in-force issued after 2003) in the SOP 03-1 calculations. The discount rates used for SFAS No. 133 calculations is based on the term structure of swap curves with a credit spread based on the credit standing of MFC (for GMWB) and the reinsurers (for GMIB).

F-29

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS – (CONTINUED)

Note 13—Deferred Policy Acquisition Costs and Deferred Sales Inducements

The balance of and changes in deferred policy acquisition costs as of and for the years ended December 31, were as follows:

	December 31,
	2008			2007
Balance, beginning of year	$	394,160		$	299,620
Capitalization		134,192			130,139
Amortization (1)		34,804			(34,784	)
Change in unrealized investment gains and losses		(9,805	)		(815	)
Balance, end of year	$	553,351		$	394,160

The balance of and changes in deferred sales inducements (“DSI”) as of and for the years ended December 31, were as follows:

	December 31,
	2008		2007
Balance, beginning of year	$	37,094	$	31,645
Capitalization		8,308		9,046
Amortization (1)		287		(3,476	)
Change in unrealized investment gains and losses		14		(121	)
Balance, end of year	$	45,703	$	37,094

(1) In 2008, DAC & DSI amortization includes significant unlocking due to the impact of lower estimated gross profit arising from higher benefits to policyholders related to certain separate account guarantees. This unlocking contributed to the overall negative amortization during the year.

Note 14—Subsequent Event

Capital Stock Transactions

On March 30, 2009, the Company received a capital contribution of $300 million in the form of cash and fixed maturities from JHUSA in exchange for one share of common stock.

F-30

John Hancock Life Insurance Company of New York Separate Account B

Audited Financial Statements

Year ended December 31, 2008 with Report of Independent Registered Public Accounting Firm

John Hancock Life Insurance Company of New York Separate Account B

Audited Financial Statements

Year ended December 31, 2008

Contents

Report of Independent Registered Public Accounting Firm	5
Statements of Assets and Contract Owners’ Equity	8
Statements of Operations and Changes in Contract Owners’ Equity	12
Notes to Financial Statements	76
Organization	76
Significant Accounting Policies	77
Contract Charges	79
Purchases and Sales of Investments	79
Transaction with Affiliates	82
Diversification Requirements	83
Comparatives	83
Financial Highlights	84

Report of Independent Registered Public Accounting Firm

To the Contract Owners of the sub-accounts of

John Hancock Life Insurance Company of New York Separate Account B

“Active” sub-accounts
500 Index Trust B Series 0	Global Bond Trust Series 1
500 Index Trust Series 1	Global Real Estate Trust Series 0
Active Bond Trust Series 0	Global Real Estate Trust Series 1
Active Bond Trust Series 1	Global Trust Series 0
All Cap Core Trust Series 0	Global Trust Series 1
All Cap Core Trust Series 1	Health Sciences Trust Series 0
All Cap Growth Trust Series 0	Health Sciences Trust Series 1
All Cap Growth Trust Series 1	High Yield Trust Series 0
All Cap Value Trust Series 0	High Yield Trust Series 1
All Cap Value Trust Series 1	Income & Value Trust Series 0
American Asset Allocation Trust Series 1	Income & Value Trust Series 1
American Blue Chip Income and Growth Trust Series 1	Index Allocation Trust Series 0
American Bond Trust Series 1	International Core Trust Series 0
American Growth Trust Series 1	International Core Trust Series 1
American Growth-Income Trust Series 1	International Equity Index Trust A Series 1
American International Trust Series 1	International Equity Index Trust B Series 0
Blue Chip Growth Trust Series 0	International Opportunities Trust Series 0
Blue Chip Growth Trust Series 1	International Opportunities Trust Series 1
Capital Appreciation Trust Series 0	International Small Cap Trust Series 0
Capital Appreciation Trust Series 1	International Small Cap Trust Series 1
Classic Value Trust Series 0	International Value Trust Series 0
Classic Value Trust Series 1	International Value Trust Series 1
Core Allocation Plus Trust Series 0	Investment Quality Bond Trust Series 0
Core Bond Trust Series 0	Investment Quality Bond Trust Series 1
Core Bond Trust Series 1	Large Cap Trust Series 0
Core Equity Trust Series 0	Large Cap Trust Series 1
Disciplined Diversification Trust Series 0	Large Cap Value Trust Series 0
Emerging Markets Value Trust Series 0	Large Cap Value Trust Series 1
Emerging Small Company Trust Series 0	Lifestyle Aggressive Trust Series 0
Emerging Small Company Trust Series 1	Lifestyle Aggressive Trust Series 1
Equity-Income Trust Series 0	Lifestyle Balanced Trust Series 0
Equity-Income Trust Series 1	Lifestyle Balanced Trust Series 1
Financial Services Trust Series 0	Lifestyle Conservative Trust Series 0
Financial Services Trust Series 1	Lifestyle Conservative Trust Series 1
Franklin Templeton Founding Allocation Trust Series 0	Lifestyle Growth Trust Series 0
Fundamental Value Trust Series 0	Lifestyle Growth Trust Series 1
Fundamental Value Trust Series 1	Lifestyle Moderate Trust Series 0
Global Allocation Trust Series 0	Lifestyle Moderate Trust Series 1
Global Allocation Trust Series 1	Mid Cap Index Trust Series 0
Global Bond Trust Series 0	Mid Cap Index Trust Series 1

5

Report of Independent Registered Public Accounting Firm

Mid Cap Intersection Trust Series 0	Small Cap Value Trust Series 1
Mid Cap Stock Trust Series 0	Small Company Trust Series 1
Mid Cap Stock Trust Series 1	Small Company Value Trust Series 0
Mid Cap Value Trust Series 0	Small Company Value Trust Series 1
Mid Cap Value Trust Series 1	Strategic Bond Trust Series 0
Mid Value Trust Series 0	Strategic Bond Trust Series 1
Money Market Trust B Series 0	Strategic Income Trust Series 0
Money Market Trust Series 1	Strategic Income Trust Series 1
Natural Resources Trust Series 0	Total Bond Market Trust B Series 0
Natural Resources Trust Series 1	Total Return Trust Series 0
Optimized All Cap Trust Series 0	Total Return Trust Series 1
Optimized All Cap Trust Series 1	Total Stock Market Index Trust Series 0
Optimized Value Trust Series 0	Total Stock Market Index Trust Series 1
Overseas Equity Trust Series 0	U.S. Government Securities Trust Series 0
Pacific Rim Trust Series 0	U.S. Government Securities Trust Series 1
Pacific Rim Trust Series 1	U.S. High Yield Bond Trust Series 0
Real Estate Securities Trust Series 0	U.S. High Yield Bond Trust Series 1
Real Estate Securities Trust Series 1	U.S. Large Cap Trust Series 0
Real Return Bond Trust Series 0	U.S. Large Cap Trust Series 1
Real Return Bond Trust Series 1	Utilities Trust Series 0
Science & Technology Trust Series 0	Utilities Trust Series 1
Science & Technology Trust Series 1	Value Trust Series 0
Short-Term Bond Trust Series 0	Value Trust Series 1
Small Cap Growth Trust Series 0	All Asset Portfolio Series 0
Small Cap Growth Trust Series 1	All Asset Portfolio Series 1
Small Cap Index Trust Series 0	Brandes International Equity Trust
Small Cap Index Trust Series 1	Business Opportunity Value Trust
Small Cap Opportunities Trust Series 0	CSI Equity Trust
Small Cap Opportunities Trust Series 1	Frontier Capital Appreciation Trust
Small Cap Value Trust Series 0	Turner Core Growth Trust
“Closed” sub-accounts
Dynamic Growth Trust Series 0	Quantitative Mid Cap Trust Series 1
Dynamic Growth Trust Series 1	Small Cap Trust Series 0
Emerging Growth Trust Series 0	Small Cap Trust Series 1
Emerging Growth Trust Series 1	U.S. Core Trust Series 0
Growth & Income Trust Series 0	U.S. Core Trust Series 1
Managed Trust Series 0	U.S. Global Leaders Growth Trust Series 0
Quantitative Mid Cap Trust Series 0	U.S. Global Leaders Growth Trust Series 1

6

Report of Independent Registered Public Accounting Firm

We have audited the accompanying statements of assets and contract owners’ equity of John Hancock Life Insurance Company of New York Separate Account B (the “Account”), comprised of the active sub-accounts as of December 31, 2008, and the related statements of operations and changes in contract owners’ equity of the active and closed sub-accounts for each of the two years in the period then ended (or years since inception), and the financial highlights for each of the five years in the period then ended (or years since inception). These financial statements and financial highlights are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Account's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the custodian or fund manager of the underlying portfolios. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the active sub-accounts constituting John Hancock Life Insurance Company of New York Separate Account B at December 31, 2008, and the results of its operations and changes in contract owners’ equity of the active and closed sub-accounts for each of the two years in the period then ended (or years since inception), and the financial highlights for each of the five years in the period then ended (or years since inception), in conformity with U.S. generally accepted accounting principles.

Toronto, Canada	/s/ ERNST & YOUNG LLP
April 14, 2009	Chartered Accountants
	Licensed Public Accountants

7

John Hancock Life Insurance Company of New York Separate Account B

Statements of Assets and Contract Owners’ Equity

December 31, 2008

Assets
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
500 Index Trust B Series 0 - 56,796 shares (cost $825,497)	$	638,383
500 Index Trust Series 1 - 55,686 shares (cost $642,975)		438,252
Active Bond Trust Series 0 - 1,691 shares (cost $15,179)		13,378
Active Bond Trust Series 1 - 32,198 shares (cost $306,794)		254,685
All Cap Core Trust Series 0 - 914 shares (cost $17,968)		10,683
All Cap Core Trust Series 1 - 20,271 shares (cost $391,630)		236,967
All Cap Growth Trust Series 0 - 137 shares (cost $1,949)		1,586
All Cap Growth Trust Series 1 - 4,563 shares (cost $75,167)		52,660
All Cap Value Trust Series 0 - 10,329 shares (cost $87,153)		57,842
All Cap Value Trust Series 1 - 24,168 shares (cost $227,285)		135,826
American Asset Allocation Trust Series 1 - 135 shares (cost $1,276)		1,139
American Blue Chip Income and Growth Trust Series 1 - 12,436 shares (cost $163,239)		110,055
American Bond Trust Series 1 - 4,358 shares (cost $54,109)		46,626
American Growth Trust Series 1 - 45,597 shares (cost $879,161)		529,382
American Growth-Income Trust Series 1 - 85,361 shares (cost $1,552,618)		984,213
American International Trust Series 1 - 36,903 shares (cost $841,546)		528,085
Blue Chip Growth Trust Series 0 - 23,563 shares (cost $442,290)		287,475
Blue Chip Growth Trust Series 1 - 37,110 shares (cost $637,940)		453,858
Capital Appreciation Trust Series 0 - 3,798 shares (cost $31,845)		23,813
Capital Appreciation Trust Series 1 - 26,650 shares (cost $237,274)		167,094
Classic Value Trust Series 0 - 10,002 shares (cost $100,214)		63,913
Classic Value Trust Series 1 - 149 shares (cost $1,742)		950
Core Allocation Plus Trust Series 0 - 21 shares (cost $178)		177
Core Bond Trust Series 0 - 4 shares (cost $51)		53
Core Bond Trust Series 1 - 8,808 shares (cost $108,233)		108,608
Core Equity Trust Series 0 - 1,203 shares (cost $8,538)		5,680
Disciplined Diversification Trust Series 0 - 57 shares (cost $624)		505
Dynamic Growth Trust Series 0		—
Dynamic Growth Trust Series 1		—
Emerging Growth Trust Series 0		—
Emerging Growth Trust Series 1		—
Emerging Markets Value Trust Series 0 - 2,010 shares (cost $21,116)		13,528
Emerging Small Company Trust Series 0 - 1,009 shares (cost $21,721)		14,049
Emerging Small Company Trust Series 1 - 1,569 shares (cost $41,033)		21,789
Equity-Income Trust Series 0 - 38,333 shares (cost $598,212)		380,650
Equity-Income Trust Series 1 - 40,954 shares (cost $604,720)		407,905
Financial Services Trust Series 0 - 8,466 shares (cost $108,071)		63,662
Financial Services Trust Series 1 - 10,039 shares (cost $138,729)		75,597
Franklin Templeton Founding Allocation Trust Series 0 - 189 shares (cost $1,581)		1,389
Fundamental Value Trust Series 0 - 10,274 shares (cost $146,403)		100,275
Fundamental Value Trust Series 1 - 58,717 shares (cost $721,462)		574,837
Global Allocation Trust Series 0 - 4,374 shares (cost $40,435)		29,747

8

John Hancock Life Insurance Company of New York Separate Account B

Statements of Assets and Contract Owners’ Equity

December 31, 2008

Assets
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
Global Allocation Trust Series 1 - 8,779 shares (cost $98,736)	$	59,871
Global Bond Trust Series 0 - 24,598 shares (cost $373,674)		354,462
Global Bond Trust Series 1 - 22,592 shares (cost $332,480)		326,232
Global Real Estate Trust Series 0 - 849 shares (cost $4,907)		5,239
Global Real Estate Trust Series 1 - 64 shares (cost $633)		395
Global Trust Series 0 - 5,465 shares (cost $92,697)		57,546
Global Trust Series 1 - 12,980 shares (cost $198,763)		136,814
Growth & Income Trust Series 0		—
Health Sciences Trust Series 0 - 6,751 shares (cost $86,895)		70,006
Health Sciences Trust Series 1 - 16,643 shares (cost $244,228)		172,259
High Yield Trust Series 0 - 40,162 shares (cost $371,445)		235,348
High Yield Trust Series 1 - 17,435 shares (cost $164,411)		102,692
Income & Value Trust Series 0 - 4,974 shares (cost $50,964)		35,565
Income & Value Trust Series 1 - 19,856 shares (cost $213,302)		141,971
Index Allocation Trust Series 0 - 207 shares (cost $2,015)		2,007
International Core Trust Series 0 - 19,869 shares (cost $258,108)		160,941
International Core Trust Series 1 - 8,386 shares (cost $108,688)		68,092
International Equity Index Trust A Series 1 - 6,775 shares (cost $135,690)		80,892
International Equity Index Trust B Series 0 - 13,198 shares (cost $237,128)		147,285
International Opportunities Trust Series 0 - 21,374 shares (cost $324,741)		176,120
International Opportunities Trust Series 1 - 11,014 shares (cost $192,081)		90,752
International Small Cap Trust Series 0 - 14,939 shares (cost $235,914)		123,994
International Small Cap Trust Series 1 - 6,039 shares (cost $117,968)		50,366
International Value Trust Series 0 - 9,660 shares (cost $143,172)		87,033
International Value Trust Series 1 - 23,428 shares (cost $379,941)		212,254
Investment Quality Bond Trust Series 0 - 17,187 shares (cost $191,416)		177,718
Investment Quality Bond Trust Series 1 - 31,400 shares (cost $364,955)		325,300
Large Cap Trust Series 0 - 1,436 shares (cost $14,984)		12,232
Large Cap Trust Series 1 - 10,107 shares (cost $153,465)		86,413
Large Cap Value Trust Series 0 - 31,113 shares (cost $638,608)		437,140
Large Cap Value Trust Series 1 - 19,893 shares (cost $414,123)		279,502
Lifestyle Aggressive Trust Series 0 - 887,682 shares (cost $7,530,871)		4,820,115
Lifestyle Aggressive Trust Series 1 - 39,625 shares (cost $371,677)		215,166
Lifestyle Balanced Trust Series 0 - 601,129 shares (cost $7,068,567)		5,169,712
Lifestyle Balanced Trust Series 1 - 356,998 shares (cost $4,479,427)		3,066,613
Lifestyle Conservative Trust Series 0 - 11,002 shares (cost $134,218)		113,099
Lifestyle Conservative Trust Series 1 - 33,146 shares (cost $427,657)		340,083
Lifestyle Growth Trust Series 0 - 979,753 shares (cost $12,326,333)		7,838,028
Lifestyle Growth Trust Series 1 - 133,516 shares (cost $1,728,582)		1,066,797
Lifestyle Moderate Trust Series 0 - 66,245 shares (cost $829,674)		606,807
Lifestyle Moderate Trust Series 1 - 58,597 shares (cost $753,700)		536,162
Managed Trust Series 0		—

9

John Hancock Life Insurance Company of New York Separate Account B

Statements of Assets and Contract Owners’ Equity

December 31, 2008

Assets
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
Mid Cap Index Trust Series 0 - 36,988 shares (cost $655,864)	$	394,657
Mid Cap Index Trust Series 1 - 16,813 shares (cost $276,422)		179,393
Mid Cap Intersection Trust Series 0 - 158 shares (cost $1,801)		1,067
Mid Cap Stock Trust Series 0 - 30,057 shares (cost $439,907)		263,601
Mid Cap Stock Trust Series 1 - 26,700 shares (cost $375,260)		233,356
Mid Cap Value Trust Series 0 - 9,314 shares (cost $132,753)		67,898
Mid Cap Value Trust Series 1 - 26,660 shares (cost $398,487)		194,882
Mid Value Trust Series 0 - 24,079 shares (cost $268,815)		161,810
Money Market Trust B Series 0 - 6,253,211 shares (cost $6,253,211)		6,253,211
Money Market Trust Series 1 - 173,114 shares (cost $1,731,142)		1,731,142
Natural Resources Trust Series 0 - 21,542 shares (cost $570,232)		287,155
Natural Resources Trust Series 1 - 7,283 shares (cost $216,467)		97,811
Optimized All Cap Trust Series 0 - 5,959 shares (cost $80,738)		51,490
Optimized All Cap Trust Series 1 - 334 shares (cost $3,152)		2,873
Optimized Value Trust Series 0 - 667 shares (cost $9,748)		4,826
Overseas Equity Trust Series 0 - 34,494 shares (cost $382,714)		255,603
Pacific Rim Trust Series 0 - 12,415 shares (cost $117,344)		74,861
Pacific Rim Trust Series 1 - 24,062 shares (cost $261,203)		144,135
Quantitative Mid Cap Trust Series 0		—
Quantitative Mid Cap Trust Series 1		—
Real Estate Securities Trust Series 0 - 40,069 shares (cost $524,835)		282,887
Real Estate Securities Trust Series 1 - 31,596 shares (cost $559,450)		224,331
Real Return Bond Trust Series 0 - 20,736 shares (cost $272,924)		239,506
Real Return Bond Trust Series 1 - 1,846 shares (cost $24,490)		21,529
Science & Technology Trust Series 0 - 18,161 shares (cost $230,042)		150,194
Science & Technology Trust Series 1 - 18,318 shares (cost $226,708)		151,121
Short-Term Bond Trust Series 0 - 3,288 shares (cost $31,031)		22,919
Small Cap Growth Trust Series 0 - 25,525 shares (cost $164,885)		157,744
Small Cap Growth Trust Series 1 - 3,487 shares (cost $21,464)		21,479
Small Cap Index Trust Series 0 - 23,073 shares (cost $341,652)		211,348
Small Cap Index Trust Series 1 - 11,305 shares (cost $162,350)		103,558
Small Cap Opportunities Trust Series 0 - 9,655 shares (cost $202,697)		108,133
Small Cap Opportunities Trust Series 1 - 5,516 shares (cost $115,260)		62,219
Small Cap Trust Series 0		—
Small Cap Trust Series 1		—
Small Cap Value Trust Series 0 - 9,296 shares (cost $148,315)		109,045
Small Cap Value Trust Series 1 - 3,165 shares (cost $45,453)		37,219
Small Company Trust Series 1 - 1,631 shares (cost $23,764)		10,424
Small Company Value Trust Series 0 - 7,625 shares (cost $131,939)		98,665
Small Company Value Trust Series 1 - 18,931 shares (cost $387,872)		245,536
Strategic Bond Trust Series 0 - 4,580 shares (cost $44,819)		38,423
Strategic Bond Trust Series 1 - 31,453 shares (cost $352,382)		264,832

10

John Hancock Life Insurance Company of New York Separate Account B

Statements of Assets and Contract Owners’ Equity

December 31, 2008

Assets
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
Strategic Income Trust Series 0 - 2,502 shares (cost $32,222)	$	27,975
Strategic Income Trust Series 1 - 9,376 shares (cost $124,683)		105,013
Total Bond Market Trust B Series 0 - 6,170 shares (cost $61,378)		60,897
Total Return Trust Series 0 - 23,535 shares (cost $325,468)		316,074
Total Return Trust Series 1 - 40,562 shares (cost $553,451)		546,372
Total Stock Market Index Trust Series 0 - 5,560 shares (cost $64,847)		44,312
Total Stock Market Index Trust Series 1 - 9,275 shares (cost $105,537)		73,919
U.S. Core Trust Series 0		—
U.S. Core Trust Series 1		—
U.S. Global Leaders Growth Trust Series 0		—
U.S. Global Leaders Growth Trust Series 1		—
U.S. Government Securities Trust Series 0 - 38,876 shares (cost $484,214)		471,174
U.S. Government Securities Trust Series 1 - 48,658 shares (cost $639,191)		592,168
U.S. High Yield Bond Trust Series 0 - 10,241 shares (cost $127,815)		94,216
U.S. High Yield Bond Trust Series 1 - 1,667 shares (cost $21,010)		15,321
U.S. Large Cap Trust Series 0 - 35,930 shares (cost $550,928)		338,821
U.S. Large Cap Trust Series 1 - 22,166 shares (cost $309,964)		209,467
Utilities Trust Series 0 - 28,529 shares (cost $377,580)		232,795
Utilities Trust Series 1 - 8,251 shares (cost $110,658)		67,328
Value Trust Series 0 - 4,126 shares (cost $53,570)		40,559
Value Trust Series 1 - 27,693 shares (cost $474,862)		272,504
Sub-accounts invested in Outside Trust Portfolios:
All Asset Portfolio Series 0 - 595 shares (cost $5,453)	$	5,492
All Asset Portfolio Series 1 - 2,384 shares (cost $27,928)		22,002
Brandes International Equity Trust - 149 shares (cost $2,220)		1,409
Business Opportunity Value Trust - 245 shares (cost $2,662)		1,887
CSI Equity Trust - 3,971 shares (cost $59,495)		41,858
Frontier Capital Appreciation Trust - 60 shares (cost $1,359)		825
Turner Core Growth Trust - 174 shares (cost $2,666)		1,684
Total Assets	$	51,369,294
Contract Owners’ Equity
Variable universal life insurance contracts	$	51,369,294

See accompanying notes.

11

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

	Sub-Account
	500 Index Trust B Series 0						500 Index Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	15,351		$	11,048		$	4,607		$	19,614
Net investment income (loss)		15,351			11,048			4,607			19,614
Realized gains (losses) on investments:
Capital gain distributions		2,629			—			—			—
Net realized gains (losses)		(28,264	)		1,606			30,989			58,444
Realized gains (losses)		(25,635	)		1,606			30,989			58,444
Unrealized appreciation (depreciation) during the period		(202,193	)		1,038			(305,928	)		(36,203	)
Net increase (decrease) in assets from operations		(212,477	)		13,692			(270,332	)		41,855
Changes from principal transactions:
Transfer of net premiums		369,367			86,308			66,655			152,898
Transfer on terminations		(53,562	)		(27,536	)		(67,902	)		(149,212	)
Transfer on policy loans		—			—			(31	)		(27	)
Net interfund transfers		119,053			158,089			(153,072	)		(100,607	)
Net increase (decrease) in assets from principal transactions		434,858			216,861			(154,350	)		(96,948	)
Total increase (decrease) in assets		222,381			230,553			(424,682	)		(55,093	)
Assets, beginning of period		416,002			185,449			862,934			918,027
Assets, end of period	$	638,383		$	416,002		$	438,252		$	862,934

(n) Fund available in prior year but no activity.

See accompanying notes.

12

Sub-Account
Active Bond Trust Series 0						Active Bond Trust Series 1						All Asset Portfolio Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (n)
$	705		$	79		$	15,951		$	32,169		$	215
	705			79			15,951			32,169			215
	—			—			—			—			18
	(124	)		10			(4,381	)		644			(103	)
	(124	)		10			(4,381	)		644			(85	)
	(1,746	)		(58	)		(43,240	)		(18,281	)		38
	(1,165	)		31			(31,670	)		14,532			168
	4,840			1,601			13,369			36,769			—
	(2,768	)		(865	)		(12,938	)		(16,477	)		(145	)
	—			—			(16,060	)		(12	)		—
	10,874			675			(65,933	)		(17,672	)		5,469
	12,946			1,411			(81,562	)		2,608			5,324
	11,781			1,442			(113,232	)		17,140			5,492
	1,597			155			367,917			350,777			—
$	13,378		$	1,597		$	254,685		$	367,917		$	5,492

13

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	All Asset Portfolio Series 1						All Cap Core Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07 (n)
Income:
Dividend income distribution	$	1,409		$	1,615		$	266		$	136
Net investment income (loss)		1,409			1,615			266			136
Realized gains (losses) on investments:
Capital gain distributions		73			—			—			—
Net realized gains (losses)		(89	)		1			(617	)		18
Realized gains (losses)		(16	)		1			(617	)		18
Unrealized appreciation (depreciation) during the period		(5,724	)		53			(6,645	)		(640	)
Net increase (decrease) in assets from operations		(4,331	)		1,669			(6,996	)		(486	)
Changes from principal transactions:
Transfer of net premiums		3,400			3,400			3,907			12,528
Transfer on terminations		(889	)		(608	)		(2,895	)		(1,707	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		—			—			86			6,246
Net increase (decrease) in assets from principal transactions		2,511			2,792			1,098			17,067
Total increase (decrease) in assets		(1,820	)		4,461			(5,898	)		16,581
Assets, beginning of period		23,822			19,361			16,581			—
Assets, end of period	$	22,002		$	23,822		$	10,683		$	16,581

(n) Fund available in prior year but no activity.

See accompanying notes.

14

Sub-Account
All Cap Core Trust Series 1						All Cap Growth Trust Series 0						All Cap Growth Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	5,691		$	5,772		$	8		$	1		$	238		$	52
	5,691			5,772			8			1			238			52
	—			—			—			—			—			—
	2,916			28,874			(199	)		12			244			11,768
	2,916			28,874			(199	)		12			244			11,768
	(162,490	)		(30,747	)		(371	)		3			(36,110	)		(318	)
	(153,883	)		3,899			(562	)		16			(35,628	)		11,502
	22,703			40,646			1,421			867			10,820			16,755
	(24,604	)		(27,004	)		(790	)		(360	)		(10,188	)		(36,987	)
	(32	)		(25	)		—			—			—			—
	10,429			231,189			729			149			2,872			1
	8,496			244,806			1,360			656			3,504			(20,231	)
	(145,387	)		248,705			798			672			(32,124	)		(8,729	)
	382,354			133,649			788			116			84,784			93,513
$	236,967		$	382,354		$	1,586		$	788		$	52,660		$	84,784

15

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	All Cap Value Trust Series 0						All Cap Value Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	581		$	568		$	1,379		$	2,951
Net investment income (loss)		581			568			1,379			2,951
Realized gains (losses) on investments:
Capital gain distributions		919			16,908			3,737			70,494
Net realized gains (losses)		(8,950	)		(16	)		(1,534	)		1,158
Realized gains (losses)		(8,031	)		16,892			2,203			71,652
Unrealized appreciation (depreciation) during the period		(11,522	)		(17,889	)		(56,472	)		(61,663	)
Net increase (decrease) in assets from operations		(18,972	)		(429	)		(52,890	)		12,940
Changes from principal transactions:
Transfer of net premiums		38,031			8,211			6,762			7,190
Transfer on terminations		(11,597	)		(4,342	)		(5,961	)		(5,167	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		6,581			30,406			20,288			7
Net increase (decrease) in assets from principal transactions		33,015			34,275			21,089			2,030
Total increase (decrease) in assets		14,043			33,846			(31,801	)		14,970
Assets, beginning of period		43,799			9,953			167,627			152,657
Assets, end of period	$	57,842		$	43,799		$	135,826		$	167,627

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

See accompanying notes.

16

Sub-Account
American Asset Allocation Trust Series 1		American Blue Chip Income and Growth Trust Series 1						American Bond Trust Series 1
Year Ended Dec. 31/08 (m)		Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	33	$	5,485		$	2,580		$	4,218		$	917
	33		5,485			2,580			4,218			917
	—		1,190			17,613			1			8
	(16)		(19,002	)		603			(1,049	)		4
	(16)		(17,812	)		18,216			(1,048	)		12
	(137)		(38,730	)		(20,629	)		(7,235	)		(260	)
	(120)		(51,057	)		167			(4,065	)		669
	964		46,478			61,363			11,890			17,405
	(399)		(22,767	)		(17,351	)		(6,125	)		(2,573	)
	—		—			—			—			—
	694		16,093			11,843			9,450			17,691
	1,259		39,804			55,855			15,215			32,523
	1,139		(11,253	)		56,022			11,150			33,192
	—		121,308			65,286			35,476			2,284
$	1,139	$	110,055		$	121,308		$	46,626		$	35,476

17

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	American Growth Trust Series 1						American Growth-Income Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	14,533		$	5,575		$	29,481		$	38,032
Net investment income (loss)		14,533			5,575			29,481			38,032
Realized gains (losses) on investments:
Capital gain distributions		6,585			53,816			23,354			56,790
Net realized gains (losses)		(16,961	)		23,568			(19,011	)		15,059
Realized gains (losses)		(10,376	)		77,384			4,343			71,849
Unrealized appreciation (depreciation) during the period		(348,273	)		(34,562	)		(623,659	)		(56,760	)
Net increase (decrease) in assets from operations		(344,116	)		48,397			(589,835	)		53,121
Changes from principal transactions:
Transfer of net premiums		215,570			115,090			373,913			313,457
Transfer on terminations		(94,324	)		(54,743	)		(56,677	)		(42,238	)
Transfer on policy loans		(17,580	)		—			—			—
Net interfund transfers		193,274			152,203			(17,190	)		13,731
Net increase (decrease) in assets from principal transactions		296,940			212,550			300,046			284,950
Total increase (decrease) in assets		(47,176	)		260,947			(289,789	)		338,071
Assets, beginning of period		576,558			315,611			1,274,002			935,931
Assets, end of period	$	529,382		$	576,558		$	984,213		$	1,274,002

See accompanying notes.

18

Sub-Account
American International Trust Series 1						Blue Chip Growth Trust Series 0						Blue Chip Growth Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	28,089		$	11,180		$	1,134		$	792		$	2,081		$	5,475
	28,089			11,180			1,134			792			2,081			5,475
	12,310			44,915			3,210			—			11,200			—
	(8,218	)		12,619			(9,687	)		2,717			3,252			50,451
	4,092			57,534			(6,477	)		2,717			14,452			50,451
	(358,085	)		13,248			(161,930	)		6,574			(363,799	)		34,466
	(325,904	)		81,962			(167,273	)		10,083			(347,266	)		90,392
	167,652			121,926			96,103			98,096			62,415			96,759
	(87,323	)		(49,977	)		(39,571	)		(19,296	)		(41,445	)		(81,691	)
	(25	)		(37	)		—			—			(4,734	)		(13,916	)
	165,595			206,492			282,407			15,083			(1,340	)		(12,511	)
	245,899			278,404			338,939			93,883			14,896			(11,359	)
	(80,005	)		360,366			171,666			103,966			(332,370	)		79,033
	608,090			247,724			115,809			11,843			786,228			707,195
$	528,085		$	608,090		$	287,475		$	115,809		$	453,858		$	786,228

19

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Brandes International Equity Trust			Business Opportunity Value Trust
	Year Ended Dec. 31/08 (n)			Year Ended Dec. 31/08 (n)
Income:
Dividend income distribution	$	67			—
Net investment income (loss)		67			—
Realized gains (losses) on investments:
Capital gain distributions		115			—
Net realized gains (losses)		(66	)		(70	)
Realized gains (losses)		49			(70	)
Unrealized appreciation (depreciation) during the period		(811	)		(775	)
Net increase (decrease) in assets from operations		(695	)		(845	)
Changes from principal transactions:
Transfer of net premiums		—			—
Transfer on terminations		(164	)		(292	)
Transfer on policy loans		—			—
Net interfund transfers		2,268			3,024
Net increase (decrease) in assets from principal transactions		2,104			2,732
Total increase (decrease) in assets		1,409			1,887
Assets, beginning of period		—			—
Assets, end of period	$	1,409		$	1,887

(n) Fund available in prior year but no activity.

See accompanying notes.

20

Sub-Account
Capital Appreciation Trust Series 0						Capital Appreciation Trust Series 1						Classic Value Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	155		$	16		$	1,059		$	720		$	1,814		$	853
	155			16			1,059			720			1,814			853
	—			8			—			975			652			4,827
	(578	)		117			(1,074	)		1,226			(6,088	)		(157	)
	(578	)		125			(1,074	)		2,201			(5,436	)		4,670
	(8,294	)		163			(97,205	)		22,982			(24,274	)		(11,795	)
	(8,717	)		304			(97,220	)		25,903			(27,896	)		(6,272	)
	5,084			2,191			36,117			35,826			44,884			37,429
	(3,938	)		(1,404	)		(26,181	)		(25,044	)		(10,577	)		(15,918	)
	—			—			—			—			—			—
	26,132			2,525			1,767			2,767			11,847			13,878
	27,278			3,312			11,703			13,549			46,154			35,389
	18,561			3,616			(85,517	)		39,452			18,258			29,117
	5,252			1,636			252,611			213,159			45,655			16,538
$	23,813		$	5,252		$	167,094		$	252,611		$	63,913		$	45,655

21

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Classic Value Trust Series 1						Core Allocation Plus Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (m)
Income:
Dividend income distribution	$	27		$	56		$	1
Net investment income (loss)		27			56			1
Realized gains (losses) on investments:
Capital gain distributions		37			338			—
Net realized gains (losses)		(1,199	)		26			(1	)
Realized gains (losses)		(1,162	)		364			(1	)
Unrealized appreciation (depreciation) during the period		56			(919	)		(2	)
Net increase (decrease) in assets from operations		(1,079	)		(499	)		(2	)
Changes from principal transactions:
Transfer of net premiums		1,021			2,423			—
Transfer on terminations		(2,031	)		(883	)		—
Transfer on policy loans		—			—			—
Net interfund transfers		—			75			179
Net increase (decrease) in assets from principal transactions		(1,010	)		1,615			179
Total increase (decrease) in assets		(2,089	)		1,116			177
Assets, beginning of period		3,039			1,923			—
Assets, end of period	$	950		$	3,039		$	177

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

(n) Fund available in prior year but no activity.

See accompanying notes.

22

Sub-Account
Core Bond Trust Series 0						Core Bond Trust Series 1						Core Equity Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07 (n)			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	3		$	48		$	4,714		$	1,168		$	1,122			—
	3			48			4,714			1,168			1,122			—
	—			—			—			—			101			41
	(11	)		—			(4	)		9			(613	)		6
	(11	)		—			(4	)		9			(512	)		47
	33			(32	)		224			(153	)		(2,758	)		(114	)
	25			16			4,934			1,024			(2,148	)		(67	)
	—			—			2,334			2,333			6,439			2,058
	(21	)		(30	)		(1,534	)		(636	)		(2,651	)		(1,366	)
	—			—			—			—			—			—
	(1,318	)		1,381			84,797			—			3,014			235
	(1,339	)		1,351			85,597			1,697			6,802			927
	(1,314	)		1,367			90,531			2,721			4,654			860
	1,367			—			18,077			15,356			1,026			166
$	53		$	1,367		$	108,608		$	18,077		$	5,680		$	1,026

23

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	CSI Equity Trust						Disciplined Diversification Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07 (n)			Year Ended Dec. 31/08 (m)
Income:
Dividend income distribution	$	566		$	248		$	7
Net investment income (loss)		566			248			7
Realized gains (losses) on investments:
Capital gain distributions		47			2,400			—
Net realized gains (losses)		(4,260	)		(19	)		(13	)
Realized gains (losses)		(4,213	)		2,381			(13	)
Unrealized appreciation (depreciation) during the period		(15,179	)		(2,458	)		(119	)
Net increase (decrease) in assets from operations		(18,826	)		171			(125	)
Changes from principal transactions:
Transfer of net premiums		40,732			25,469			—
Transfer on terminations		(7,252	)		(2,943	)		(58	)
Transfer on policy loans		—			—			—
Net interfund transfers		—			4,507			688
Net increase (decrease) in assets from principal transactions		33,480			27,033			630
Total increase (decrease) in assets		14,654			27,204			505
Assets, beginning of period		27,204			—			—
Assets, end of period	$	41,858		$	27,204		$	505

(n) Fund available in prior year but no activity.

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

(l) Terminated as an investment option and funds transferred to Mid Cap Stock Trust on April 28, 2008.

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

See accompanying notes.

24

Sub-Account
Dynamic Growth Trust Series 0					Dynamic Growth Trust Series 1					Emerging Growth Trust Series 0
Year Ended Dec. 31/8 (l)		Year Ended Dec. 31/07 (n)			Year Ended Dec. 31/08 (l)		Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ag)			Year Ended Dec. 31/07
—			—		—			—		$	616		$	260
—			—		—			—			616			260
—			—		—			—			1,368			41,602
—			—		7,032			4,153			(141,043	)		(811	)
—			—		7,032			4,153			(139,675	)		40,791
—			—		(11,478	)		577			36,894			(37,529	)
—			—		(4,446	)		4,730			(102,165	)		3,522
23			46		1,721			6,604			45,850			48,125
(20	)		(40	)	(1,404	)		(22,171	)		(11,285	)		(8,868	)
—			—		—			8,461			(1	)		(230	)
(9	)		—		(41,846	)		(549	)		(99,076	)		4,285
(6	)		6		(41,529	)		(7,655	)		(64,512	)		43,312
(6	)		6		(45,975	)		(2,925	)		(166,677	)		46,834
6			—		45,975			48,900			166,677			119,843
—		$	6		—		$	45,975			—		$	166,677

25

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Emerging Growth Trust Series 1						Emerging Markets Value Trust Series 0
	Year Ended Dec. 31/08 (ag)			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07 (f)
Income:
Dividend income distribution	$	121		$	38		$	473		$	2
Net investment income (loss)		121			38			473			2
Realized gains (losses) on investments:
Capital gain distributions		276			8,950			—			5
Net realized gains (losses)		(28,922	)		(499	)		(1,063	)		3
Realized gains (losses)		(28,646	)		8,451			(1,063	)		8
Unrealized appreciation (depreciation) during the period		11,296			(7,335	)		(7,589	)		—
Net increase (decrease) in assets from operations		(17,229	)		1,154			(8,179	)		10
Changes from principal transactions:
Transfer of net premiums		3,693			4,002			10,590			186
Transfer on terminations		(7,209	)		(1,498	)		(2,275	)		(76	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		(12,390	)		—			13,130			142
Net increase (decrease) in assets from principal transactions		(15,906	)		2,504			21,445			252
Total increase (decrease) in assets		(33,135	)		3,658			13,266			262
Assets, beginning of period		33,135			29,477			262			—
Assets, end of period		—		$	33,135		$	13,528		$	262

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

(f) Reflects the period from commencement of operations on April 30, 2007 through December 31, 2007.

See accompanying notes.

26

Sub-Account
Emerging Small Company Trust Series 0						Emerging Small Company Trust Series 1						Equity-Income Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
	—			—			—			—		$	13,008		$	10,367
	—			—			—			—			13,008			10,367
	5			576			17			12,868			11,079			40,275
	(562	)		(12	)		(2,821	)		(950	)		(67,581	)		(774	)
	(557	)		564			(2,804	)		11,918			(56,502	)		39,501
	(7,060	)		(650	)		(13,816	)		(7,710	)		(166,380	)		(51,804	)
	(7,617	)		(86	)		(16,620	)		4,208			(209,874	)		(1,936	)
	8,742			7,126			5,439			3,663			155,590			385,855
	(1,973	)		(673	)		(4,573	)		(12,005	)		(50,628	)		(37,285	)
	—			(118	)		(34	)		6,217			—			—
	4,201			3,683			(1,345	)		(18,255	)		70,475			57,825
	10,970			10,018			(513	)		(20,380	)		175,437			406,395
	3,353			9,932			(17,133	)		(16,172	)		(34,437	)		404,459
	10,696			764			38,922			55,094			415,087			10,628
$	14,049		$	10,696		$	21,789		$	38,922		$	380,650		$	415,087

27

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Equity-Income Trust Series 1						Financial Services Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	13,910		$	17,952		$	824		$	674
Net investment income (loss)		13,910			17,952			824			674
Realized gains (losses) on investments:
Capital gain distributions		15,590			70,636			3,868			10,527
Net realized gains (losses)		(71,762	)		9,796			(18,046	)		(108	)
Realized gains (losses)		(56,172	)		80,432			(14,178	)		10,419
Unrealized appreciation (depreciation) during the period		(175,997	)		(79,238	)		(27,228	)		(17,211	)
Net increase (decrease) in assets from operations		(218,259	)		19,146			(40,582	)		(6,118	)
Changes from principal transactions:
Transfer of net premiums		50,318			77,693			30,085			19,710
Transfer on terminations		(51,890	)		(45,242	)		(16,531	)		(5,566	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		(15,029	)		100,127			19,808			61,996
Net increase (decrease) in assets from principal transactions		(16,601	)		132,578			33,362			76,140
Total increase (decrease) in assets		(234,860	)		151,724			(7,220	)		70,022
Assets, beginning of period		642,765			491,041			70,882			860
Assets, end of period	$	407,905		$	642,765		$	63,662		$	70,882

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

(n) Fund available in prior year but no activity.

See accompanying notes.

28

Sub-Account
Financial Services Trust Series 1						Franklin Templeton Founding Allocation Trust Series 0			Frontier Capital Appreciation Trust
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (m)			Year Ended Dec. 31/08 (n)
$	960		$	1,839		$	50			—
	960			1,839			50			—
	6,062			20,157			—			22
	388			7,766			(50	)		(47	)
	6,450			27,923			(50	)		(25	)
	(66,188	)		(40,092	)		(193	)		(535	)
	(58,778	)		(10,330	)		(193	)		(560	)
	8,781			7,252			449			—
	(5,867	)		(6,712	)		(222	)		(127	)
	—			—			—			—
	(1,195	)		4,826			1,355			1,512
	1,719			5,366			1,582			1,385
	(57,059	)		(4,964	)		1,389			825
	132,656			137,620			—			—
$	75,597		$	132,656		$	1,389		$	825

29

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Fundamental Value Trust Series 0						Fundamental Value Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	1,240		$	2,839		$	6,449		$	7,069
Net investment income (loss)		1,240			2,839			6,449			7,069
Realized gains (losses) on investments:
Capital gain distributions		1,152			6,248			4,619			17,138
Net realized gains (losses)		(19,382	)		193			(16,536	)		6,172
Realized gains (losses)		(18,230	)		6,441			(11,917	)		23,310
Unrealized appreciation (depreciation) during the period		(40,786	)		(5,357	)		(172,667	)		(12,341	)
Net increase (decrease) in assets from operations		(57,776	)		3,923			(178,135	)		18,038
Changes from principal transactions:
Transfer of net premiums		77,476			142,352			34,575			53,002
Transfer on terminations		(26,868	)		(19,272	)		(31,030	)		(22,491	)
Transfer on policy loans		—			—			(11	)		(10	)
Net interfund transfers		(78,648	)		58,113			288,668			117,986
Net increase (decrease) in assets from principal transactions		(28,040	)		181,193			292,202			148,487
Total increase (decrease) in assets		(85,816	)		185,116			114,067			166,525
Assets, beginning of period		186,091			975			460,770			294,245
Assets, end of period	$	100,275		$	186,091		$	574,837		$	460,770

See accompanying notes.

30

Sub-Account
Global Allocation Trust Series 0						Global Allocation Trust Series 1						Global Bond Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	2,136		$	661		$	4,300		$	5,222		$	1,111		$	11,564
	2,136			661			4,300			5,222			1,111			11,564
	19			854			147			8,018			—			—
	(1,648	)		9			364			1,288			144			(168	)
	(1,629	)		863			511			9,306			144			(168	)
	(9,182	)		(1,515	)		(34,996	)		(11,197	)		(22,068	)		3,709
	(8,675	)		9			(30,185	)		3,331			(20,813	)		15,105
	10,750			1,090			14,128			14,420			68,098			43,339
	(1,603	)		(819	)		(4,247	)		(4,207	)		(18,295	)		(11,287	)
	—			—			—			—			—			—
	16,253			12,538			(3,035	)		19,783			146,271			18,863
	25,400			12,809			6,846			29,996			196,074			50,915
	16,725			12,818			(23,339	)		33,327			175,261			66,020
	13,022			204			83,210			49,883			179,201			113,181
$	29,747		$	13,022		$	59,871		$	83,210		$	354,462		$	179,201

31

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Global Bond Trust Series 1						Global Real Estate Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (m)
Income:
Dividend income distribution	$	1,907		$	23,114		$	316
Net investment income (loss)		1,907			23,114			316
Realized gains (losses) on investments:
Capital gain distributions		—			—			—
Net realized gains (losses)		1,459			551			(1,868	)
Realized gains (losses)		1,459			551			(1,868	)
Unrealized appreciation (depreciation) during the period		(17,097	)		7,304			332
Net increase (decrease) in assets from operations		(13,731	)		30,969			(1,220	)
Changes from principal transactions:
Transfer of net premiums		21,051			40,570			1,897
Transfer on terminations		(15,989	)		(10,336	)		(263	)
Transfer on policy loans		295			4			—
Net interfund transfers		(13,346	)		9,480			4,825
Net increase (decrease) in assets from principal transactions		(7,989	)		39,718			6,459
Total increase (decrease) in assets		(21,720	)		70,687			5,239
Assets, beginning of period		347,952			277,265			—
Assets, end of period	$	326,232		$	347,952		$	5,239

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

See accompanying notes.

32

Sub-Account
Global Real Estate Trust Series 1			Global Trust Series 0						Global Trust Series 1
Year Ended Dec. 31/08 (m)			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	24		$	1,581		$	1,072		$	3,719		$	5,414
	24			1,581			1,072			3,719			5,414
	—			—			3,218			—			12,758
	(9	)		(1,640	)		393			2,172			25,154
	(9	)		(1,640	)		3,611			2,172			37,912
	(238	)		(31,732	)		(5,239	)		(83,542	)		(40,227	)
	(223	)		(31,791	)		(556	)		(77,651	)		3,099
	—			11,330			19,264			24,843			31,389
	(37	)		(5,308	)		(1,937	)		(6,175	)		(53,047	)
	—			—			—			—			—
	655			25,620			4,219			(986	)		(17,790	)
	618			31,642			21,546			17,682			(39,448	)
	395			(149	)		20,990			(59,969	)		(36,349	)
	—			57,695			36,705			196,783			233,132
$	395		$	57,546		$	57,695		$	136,814		$	196,783

33

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Growth & Income Trust Series 0						Health Sciences Trust Series 0
	Year Ended Dec. 31/08 (ad)			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	289		$	782			—			—
Net investment income (loss)		289			782			—			—
Realized gains (losses) on investments:
Capital gain distributions		—			4,100			1,012			6,479
Net realized gains (losses)		(9,589	)		35			(5,913	)		96
Realized gains (losses)		(9,589	)		4,135			(4,901	)		6,575
Unrealized appreciation (depreciation) during the period		4,270			(4,316	)		(15,172	)		(1,725	)
Net increase (decrease) in assets from operations		(5,030	)		601			(20,073	)		4,850
Changes from principal transactions:
Transfer of net premiums		9,557			36,272			15,151			23,116
Transfer on terminations		(4,015	)		(8,144	)		(9,359	)		(9,321	)
Transfer on policy loans		—			—			(1	)		(164	)
Net interfund transfers		(60,928	)		25,520			36,433			10,851
Net increase (decrease) in assets from principal transactions		(55,386	)		53,648			42,224			24,482
Total increase (decrease) in assets		(60,416	)		54,249			22,151			29,332
Assets, beginning of period		60,416			6,167			47,855			18,523
Assets, end of period		—		$	60,416		$	70,006		$	47,855

(ad) Terminated as an investment option and funds transferred to Optimized All Cap Trust on April 28, 2008.

See accompanying notes.

34

Sub-Account
Health Sciences Trust Series 1						High Yield Trust Series 0						High Yield Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
	—			—		$	27,377		$	24,765		$	12,734		$	19,212
	—			—			27,377			24,765			12,734			19,212
	5,169			43,822			—			—			—			—
	7,064			1,537			(6,233	)		(76	)		(3,221	)		509
	12,233			45,359			(6,233	)		(76	)		(3,221	)		509
	(86,043	)		(10,638	)		(113,485	)		(23,028	)		(53,059	)		(17,420	)
	(73,810	)		34,721			(92,341	)		1,661			(43,546	)		2,301
	15,509			17,481			54,895			55,563			13,275			29,231
	(20,567	)		(9,452	)		(13,571	)		(8,932	)		(16,234	)		(12,257	)
	—			—			—			—			—			—
	(3,577	)		22,200			68,229			31,840			(7,740	)		(3,556	)
	(8,635	)		30,229			109,553			78,471			(10,699	)		13,418
	(82,445	)		64,950			17,212			80,132			(54,245	)		15,719
	254,704			189,754			218,136			138,004			156,937			141,218
$	172,259		$	254,704		$	235,348		$	218,136		$	102,692		$	156,937

35

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Income & Value Trust Series 0						Income & Value Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07 (n)			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	1,329		$	473		$	5,735		$	8,318
Net investment income (loss)		1,329			473			5,735			8,318
Realized gains (losses) on investments:
Capital gain distributions		401			1,707			4,029			15,775
Net realized gains (losses)		(2,310	)		(29	)		248			2,135
Realized gains (losses)		(1,909	)		1,678			4,277			17,910
Unrealized appreciation (depreciation) during the period		(11,490	)		(3,909	)		(73,626	)		(24,598	)
Net increase (decrease) in assets from operations		(12,070	)		(1,758	)		(63,614	)		1,630
Changes from principal transactions:
Transfer of net premiums		29,243			343			8,260			33,916
Transfer on terminations		(6,064	)		(921	)		(8,925	)		(11,801	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		1,213			25,579			(8,579	)		2,834
Net increase (decrease) in assets from principal transactions		24,392			25,001			(9,244	)		24,949
Total increase (decrease) in assets		12,322			23,243			(72,858	)		26,579
Assets, beginning of period		23,243			—			214,829			188,250
Assets, end of period	$	35,565		$	23,243		$	141,971		$	214,829

(n) Fund available in prior year but no activity.

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

See accompanying notes.

36

Sub-Account
Index Allocation Trust Series 0			International Core Trust Series 0						International Core Trust Series 1
Year Ended Dec. 31/08 (m)			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	5		$	11,631		$	2,620		$	4,900		$	2,675
	5			11,631			2,620			4,900			2,675
	—			2,869			15,362			1,304			15,497
	(11	)		(18,408	)		(421	)		2,176			20,595
	(11	)		(15,539	)		14,941			3,480			36,092
	(9	)		(85,056	)		(12,136	)		(50,994	)		(23,538	)
	(15	)		(88,964	)		5,425			(42,614	)		15,229
	28			72,668			107,687			9,128			10,756
	(47	)		(22,107	)		(10,732	)		(13,670	)		(10,108	)
	—			—			—			129			(9	)
	2,041			63,194			33,527			6,531			(33,617	)
	2,022			113,755			130,482			2,118			(32,978	)
	2,007			24,791			135,907			(40,496	)		(17,749	)
	—			136,150			243			108,588			126,337
$	2,007		$	160,941		$	136,150		$	68,092		$	108,588

37

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	International Equity Index Trust A Series 1						International Equity Index Trust B Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	2,583		$	3,669		$	5,742		$	4,217
Net investment income (loss)		2,583			3,669			5,742			4,217
Realized gains (losses) on investments:
Capital gain distributions		757			4,665			1,358			5,946
Net realized gains (losses)		899			29,070			(12,976	)		(37	)
Realized gains (losses)		1,656			33,735			(11,618	)		5,909
Unrealized appreciation (depreciation) during the period		(66,168	)		(24,690	)		(89,232	)		(2,527	)
Net increase (decrease) in assets from operations		(61,929	)		12,714			(95,108	)		7,599
Changes from principal transactions:
Transfer of net premiums		2,976			10,308			76,135			33,434
Transfer on terminations		(6,006	)		(3,775	)		(23,849	)		(11,444	)
Transfer on policy loans		305			(217	)		(1,114	)		(2,364	)
Net interfund transfers		31,267			(42,958	)		41,341			94,543
Net increase (decrease) in assets from principal transactions		28,542			(36,642	)		92,513			114,169
Total increase (decrease) in assets		(33,387	)		(23,928	)		(2,595	)		121,768
Assets, beginning of period		114,279			138,207			149,880			28,112
Assets, end of period	$	80,892		$	114,279		$	147,285		$	149,880

See accompanying notes.

38

Sub-Account
International Opportunities Trust Series 0						International Opportunities Trust Series 1						International Small Cap Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	3,482		$	3,063		$	1,809		$	2,530		$	5,304		$	1,853
	3,482			3,063			1,809			2,530			5,304			1,853
	8,392			34,591			6,070			30,596			1,401			15,845
	(9,048	)		975			(2,420	)		2,791			(13,399	)		991
	(656	)		35,566			3,650			33,387			(11,998	)		16,836
	(145,148	)		(6,376	)		(96,498	)		(8,184	)		(93,411	)		(19,275	)
	(142,322	)		32,253			(91,039	)		27,733			(100,105	)		(586	)
	75,368			65,684			7,239			12,310			68,567			34,406
	(16,396	)		(9,464	)		(7,655	)		(4,293	)		(12,540	)		(7,110	)
	—			—			—			—			—			—
	35,749			20,569			(1,327	)		118,319			76,075			47,649
	94,721			76,789			(1,743	)		126,336			132,102			74,945
	(47,601	)		109,042			(92,782	)		154,069			31,997			74,359
	223,721			114,679			183,534			29,465			91,997			17,638
$	176,120		$	223,721		$	90,752		$	183,534		$	123,994		$	91,997

39

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	International Small Cap Trust Series 1						International Value Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	2,284		$	4,040		$	4,316		$	3,042
Net investment income (loss)		2,284			4,040			4,316			3,042
Realized gains (losses) on investments:
Capital gain distributions		1,184			39,856			2,812			10,006
Net realized gains (losses)		(1,280	)		18,446			(9,148	)		1,181
Realized gains (losses)		(96	)		58,302			(6,336	)		11,187
Unrealized appreciation (depreciation) during the period		(57,076	)		(49,574	)		(48,989	)		(9,101	)
Net increase (decrease) in assets from operations		(54,888	)		12,768			(51,009	)		5,128
Changes from principal transactions:
Transfer of net premiums		10,261			15,076			43,307			48,400
Transfer on terminations		(5,101	)		(67,797	)		(14,790	)		(9,996	)
Transfer on policy loans		—			3,463			—			—
Net interfund transfers		(2,363	)		2,365			12,624			17,102
Net increase (decrease) in assets from principal transactions		2,797			(46,893	)		41,141			55,506
Total increase (decrease) in assets		(52,091	)		(34,125	)		(9,868	)		60,634
Assets, beginning of period		102,457			136,582			96,901			36,267
Assets, end of period	$	50,366		$	102,457		$	87,033		$	96,901

See accompanying notes.

40

Sub-Account
International Value Trust Series 1						Investment Quality Bond Trust Series 0						Investment Quality Bond Trust Series 1
Year Ended Dec. 31/08			Year Ended. Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	11,072		$	18,007		$	10,604		$	1,204		$	23,116		$	37,267
	11,072			18,007			10,604			1,204			23,116			37,267
	10,898			65,078			—			—			—			—
	(18,649	)		33,127			(187	)		24			(18,593	)		(2,501	)
	(7,751	)		98,205			(187	)		24			(18,593	)		(2,501	)
	(183,577	)		(79,360	)		(13,584	)		(459	)		(16,522	)		(9,555	)
	(180,256	)		36,852			(3,167	)		769			(11,999	)		25,211
	39,942			44,614			4,433			3,784			14,708			34,571
	(28,290	)		(22,074	)		(3,855	)		(2,506	)		(13,532	)		(12,613	)
	601			(447	)		—			—			(6,416	)		(16,259	)
	(58,264	)		(44,164	)		167,020			7			(95,083	)		1,741
	(46,011	)		(22,071	)		167,598			1,285			(100,323	)		7,440
	(226,267	)		14,781			164,431			2,054			(112,322	)		32,651
	438,521			423,740			13,287			11,233			437,622			404,971
$	212,254		$	438,521		$	177,718		$	13,287		$	325,300		$	437,622

41

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Large Cap Trust Series 0						Large Cap Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	257		$	8		$	1,749		$	1,383
Net investment income (loss)		257			8			1,749			1,383
Realized gains (losses) on investments:
Capital gain distributions		—			59			—			10,401
Net realized gains (losses)		(1,041	)		(2	)		(22,105	)		641
Realized gains (losses)		(1,041	)		57			(22,105	)		11,042
Unrealized appreciation (depreciation) during the period		(2,631	)		(122	)		(47,386	)		(20,363	)
Net increase (decrease) in assets from operations		(3,415	)		(57	)		(67,742	)		(7,938	)
Changes from principal transactions:
Transfer of net premiums		6,321			1,549			8,549			25,471
Transfer on terminations		(1,733	)		(770	)		(31,307	)		(11,670	)
Transfer on policy loans		—			—			(4,402	)		(340	)
Net interfund transfers		9,720			607			(17,818	)		175,537
Net increase (decrease) in assets from principal transactions		14,308			1,386			(44,978	)		188,998
Total increase (decrease) in assets		10,893			1,329			(112,720	)		181,060
Assets, beginning of period		1,339			10			199,133			18,073
Assets, end of period	$	12,232		$	1,339		$	86,413		$	199,133

See accompanying notes.

42

Sub-Account
Large Cap Value Trust Series 0						Large Cap Value Trust Series 1						Lifestyle Aggressive Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	8,694		$	3,996		$	5,191		$	1,957		$	124,796		$	62,756
	8,694			3,996			5,191			1,957			124,796			62,756
	—			22,259			—			12,208			506,330			12,842
	(23,333	)		2,530			(6,593	)		10,628			(144,262	)		10,731
	(23,333	)		24,789			(6,593	)		22,836			362,068			23,573
	(182,519	)		(20,634	)		(135,321	)		(18,001	)		(2,652,817	)		(67,738	)
	(197,158	)		8,151			(136,723	)		6,792			(2,165,953	)		18,591
	161,818			85,796			40,375			34,888			756,906			412,226
	(49,918	)		(19,163	)		(29,947	)		(16,377	)		(412,762	)		(113,518	)
	—			—			499			8			(66	)		—
	114,709			90,766			207,433			(80,794	)		5,149,012			986,226
	226,609			157,399			218,360			(62,275	)		5,493,090			1,284,934
	29,451			165,550			81,637			(55,483	)		3,327,137			1,303,525
	407,689			242,139			197,865			253,348			1,492,978			189,453
$	437,140		$	407,689		$	279,502		$	197,865		$	4,820,115		$	1,492,978

43

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Lifestyle Aggressive Trust Series 1						Lifestyle Balanced Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	5,398		$	14,849		$	222,631		$	238,488
Net investment income (loss)		5,398			14,849			222,631			238,488
Realized gains (losses) on investments:
Capital gain distributions		25,163			3,526			104,218			8,288
Net realized gains (losses)		(5,430	)		(1,700	)		(453,923	)		13,027
Realized gains (losses)		19,733			1,826			(349,705	)		21,315
Unrealized appreciation (depreciation) during the period		(154,932	)		(8,052	)		(1,797,756	)		(109,169	)
Net increase (decrease) in assets from operations		(129,801	)		8,623			(1,924,830	)		150,634
Changes from principal transactions:
Transfer of net premiums		66,363			64,455			697,742			1,774,669
Transfer on terminations		(15,145	)		(14,399	)		(451,959	)		(299,887	)
Transfer on policy loans		—			—			(8,143	)		—
Net interfund transfers		82,750			(65,445	)		1,749,135			1,777,804
Net increase (decrease) in assets from principal transactions		133,968			(15,389	)		1,986,775			3,252,586
Total increase (decrease) in assets		4,167			(6,766	)		61,945			3,403,220
Assets, beginning of period		210,999			217,765			5,107,767			1,704,547
Assets, end of period	$	215,166		$	210,999		$	5,169,712		$	5,107,767

See accompanying notes.

44

Sub-Account
Lifestyle Balanced Trust Series 1						Lifestyle Conservative Trust Series 0						Lifestyle Conservative Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			`Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	131,581		$	348,280		$	5,047		$	5,211		$	16,585		$	29,218
	131,581			348,280			5,047			5,211			16,585			29,218
	171,423			7,584			1,600			180			7,299			980
	(11,450	)		15,908			(3,851	)		413			(2,301	)		1,365
	159,973			23,492			(2,251	)		593			4,998			2,345
	(1,700,631	)		(86,247	)		(18,876	)		(2,121	)		(82,708	)		(12,199	)
	(1,409,077	)		285,525			(16,080	)		3,683			(61,125	)		19,364
	54,177			62,874			14,542			5,831			14,010			55,520
	(197,935	)		(148,288	)		(8,830	)		(4,773	)		(7,824	)		(7,549	)
	—			—			—			—			—			—
	626			631			48,585			13,893			(8,121	)		1,013
	(143,132	)		(84,783	)		54,297			14,951			(1,935	)		48,984
	(1,552,209	)		200,742			38,217			18,634			(63,060	)		68,348
	4,618,822			4,418,080			74,882			56,248			403,143			334,795
$	3,066,613		$	4,618,822		$	113,099		$	74,882		$	340,083		$	403,143

45

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Lifestyle Growth Trust Series 0						Lifestyle Growth Trust Series 1
	Years Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	279,753		$	359,459		$	37,618		$	133,459
Net investment income (loss)		279,753			359,459			37,618			133,459
Realized gains (losses) on investments:
Capital gain distributions		430,570			21,125			84,927			8,571
Net realized gains (losses)		(273,347	)		45,502			(71,128	)		45,258
Realized gains (losses)		157,223			66,627			13,799			53,829
Unrealized appreciation (depreciation) during the period		(4,336,527	)		(187,206	)		(698,074	)		(58,304	)
Net increase (decrease) in assets from operations		(3,899,551	)		238,880			(646,657	)		128,984
Changes from principal transactions:
Transfer of net premiums		2,022,323			2,517,557			139,318			173,552
Transfer on terminations		(925,109	)		(507,329	)		(270,136	)		(88,011	)
Transfer on policy loans		(16,208	)		(2,230	)		(44,029	)		—
Net interfund transfers		3,429,460			2,369,397			63,610			(227,892	)
Net increase (decrease) in assets from principal transactions		4,510,466			4,377,395			(111,237	)		(142,351	)
Total increase (decrease) in assets		610,915			4,616,275			(757,894	)		(13,367	)
Assets, beginning of period		7,227,113			2,610,838			1,824,691			1,838,058
Assets, end of period	$	7,838,028		$	7,227,113		$	1,066,797		$	1,824,691

(ai) Terminated as an investment option and funds transferred to Lifestyle Balanced Trust on November 10, 2008.

See accompanying notes.

46

Sub-Account
Lifestyle Moderate Trust Series 0						Lifestyle Moderate Trust Series 1						Managed Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ai)			Year Ended Dec. 31/07
$	29,358		$	26,704		$	26,249		$	53,012		$	411		$	1,791
	29,358			26,704			26,249			53,012			411			1,791
	14,445			767			15,049			927			429			1,081
	(16,036	)		1,837			(2,379	)		(41	)		(22,629	)		(95	)
	(1,591	)		2,604			12,670			886			(22,200	)		986
	(206,283	)		(17,736	)		(210,174	)		(18,676	)		2,866			(2,868	)
	(178,516	)		11,572			(171,255	)		35,222			(18,923	)		(91	)
	139,845			114,134			25,359			25,404			61,496			49,588
	(74,873	)		(26,271	)		(21,699	)		(20,831	)		(14,759	)		(10,649	)
	—			—			—			—			—			—
	167,463			349,352			—			—			(80,815	)		13,897
	232,435			437,215			3,660			4,573			(34,078	)		52,836
	53,919			448,787			(167,595	)		39,795			(53,001	)		52,745
	552,888			104,101			703,757			663,962			53,001			256
$	606,807		$	552,888		$	536,162		$	703,757			—		$	53,001

47

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Mid Cap Index Trust Series 0						Mid Cap Index Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	5,261		$	6,251		$	2,027		$	1,880
Net investment income (loss)		5,261			6,251			2,027			1,880
Realized gains (losses) on investments:
Capital gain distributions		10,712			57,987			3,218			17,942
Net realized gains (losses)		(8,115	)		1,075			(107	)		8,307
Realized gains (losses)		2,597			59,062			3,111			26,249
Unrealized appreciation (depreciation) during the period		(220,834	)		(41,419	)		(99,692	)		(18,368	)
Net increase (decrease) in assets from operations		(212,976	)		23,894			(94,554	)		9,761
Changes from principal transactions:
Transfer of net premiums		128,253			112,092			15,783			12,723
Transfer on terminations		(24,442	)		(21,071	)		(13,776	)		(11,256	)
Transfer on policy loans		—			—			2,757			(89	)
Net interfund transfers		44,912			13,760			130,247			381
Net increase (decrease) in assets from principal transactions		148,723			104,781			135,011			1,759
Total increase (decrease) in assets		(64,253	)		128,675			40,457			11,520
Assets, beginning of period		458,910			330,235			138,936			127,416
Assets, end of period	$	394,657		$	458,910		$	179,393		$	138,936

(f) Reflects the period from commencement of operations on April 30, 2007 through December 31, 2007.

See accompanying notes.

48

Sub-Account
Mid Cap Intersection Trust Series 0					Mid Cap Stock Trust Series 0						Mid Cap Stock Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07 (f)		Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	3			—		—		$	15			—			—
	3			—		—			15			—			—
	—			—		11,017			66,963			7,973			80,984
	(124	)		—		(58,799	)		830			(384	)		19,437
	(124	)		—		(47,782	)		67,793			7,589			100,421
	(736	)		1		(156,347	)		(23,009	)		(174,632	)		(32,226	)
	(857	)		1		(204,129	)		44,799			(167,043	)		68,195
	—			—		114,317			215,639			30,345			28,635
	(591	)		—		(34,327	)		(18,622	)		(24,650	)		(59,785	)
	—			—		—			—			201			9,279
	1,403			1,111		30,715			58,454			64,627			(16,035	)
	812			1,111		110,705			255,471			70,523			(37,906	)
	(45	)		1,112		(93,424	)		300,270			(96,520	)		30,289
	1,112			—		357,025			56,755			329,876			299,587
$	1,067		$	1,112	$	263,601		$	357,025		$	233,356		$	329,876

49

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Mid Cap Value Trust Series 0						Mid Cap Value Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	1,827		$	885		$	4,968		$	3,472
Net investment income (loss)		1,827			885			4,968			3,472
Realized gains (losses) on investments:
Capital gain distributions		3,981			21,903			10,900			88,749
Net realized gains (losses)		(12,141	)		(981	)		(9,286	)		4,241
Realized gains (losses)		(8,160	)		20,922			1,614			92,990
Unrealized appreciation (depreciation) during the period		(37,371	)		(27,520	)		(127,589	)		(95,709	)
Net increase (decrease) in assets from operations		(43,704	)		(5,713	)		(121,007	)		753
Changes from principal transactions:
Transfer of net premiums		18,725			35,170			24,854			38,987
Transfer on terminations		(11,781	)		(7,859	)		(15,661	)		(16,671	)
Transfer on policy loans		—			—			(7	)		(8	)
Net interfund transfers		3,248			61,424			(2,140	)		(10,348	)
Net increase (decrease) in assets from principal transactions		10,192			88,735			7,046			11,960
Total increase (decrease) in assets		(33,512	)		83,022			(113,961	)		12,713
Assets, beginning of period		101,410			18,388			308,843			296,130
Assets, end of period	$	67,898		$	101,410		$	194,882		$	308,843

See accompanying notes.

50

Sub-Account
Mid Value Trust Series 0						Money Market Trust B Series 0						Money Market Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	2,744		$	5,447		$	76,381		$	57,280		$	27,098		$	73,849
	2,744			5,447			76,381			57,280			27,098			73,849
	4,670			49,794			—			—			—			—
	(43,322	)		(5,184	)		—			—			—			—
	(38,652	)		44,610			—			—			—			—
	(49,768	)		(57,509	)		—			—			—			—
	(85,676	)		(7,452	)		76,381			57,280			27,098			73,849
	76,264			233,032			17,401,623			12,575,271			315,648			371,722
	(24,133	)		(26,256	)		(604,585	)		(290,944	)		(297,634	)		(847,674	)
	(984	)		(2,340	)		(19,334	)		(19,764	)		4,421			(1,761	)
	(38,439	)		34,356			(13,276,626	)		(10,482,723	)		155,843			(89,252	)
	12,708			238,792			3,501,078			1,781,840			178,278			(566,965	)
	(72,968	)		231,340			3,577,459			1,839,120			205,376			(493,116	)
	234,778			3,438			2,675,752			836,632			1,525,766			2,018,882
$	161,810		$	234,778		$	6,253,211		$	2,675,752		$	1,731,142		$	1,525,766

51

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Natural Resources Trust Series 0						Natural Resources Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	3,095		$	1,702		$	1,092		$	2,204
Net investment income (loss)		3,095			1,702			1,092			2,204
Realized gains (losses) on investments:
Capital gain distributions		9,922			76,156			6,781			86,185
Net realized gains (losses)		(33,817	)		1,451			(16,983	)		4,300
Realized gains (losses)		(23,895	)		77,607			(10,202	)		90,485
Unrealized appreciation (depreciation) during the period		(251,231	)		(32,533	)		(97,257	)		(32,292	)
Net increase (decrease) in assets from operations		(272,031	)		46,776			(106,367	)		60,397
Changes from principal transactions:
Transfer of net premiums		132,399			71,268			7,037			8,377
Transfer on terminations		(51,546	)		(18,123	)		(9,323	)		(7,340	)
Transfer on policy loans		(1,310	)		(2,427	)		—			—
Net interfund transfers		214,588			137,899			(51,096	)		6,257
Net increase (decrease) in assets from principal transactions		294,131			188,617			(53,382	)		7,294
Total increase (decrease) in assets		22,100			235,393			(159,749	)		67,691
Assets, beginning of period		265,055			29,662			257,560			189,869
Assets, end of period	$	287,155		$	265,055		$	97,811		$	257,560

(aj) Fund renamed on April 28, 2008. Previously known as Quantitative All Cap Trust.

(n) Fund available in prior year but no activity.

(ak) Fund renamed on April 28, 2008. Previously known as Quantitative Value Trust.

See accompanying notes.

52

Sub-Account
Optimized All Cap Trust Series 0						Optimized All Cap Trust Series 1						Optimized Value Trust Series 0
Year Ended Dec. 31/08 (aj)			Year Ended Dec. 31/07 (n)			Year Ended Dec. 31/08 (aj)			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ak)			Year Ended Dec. 31/07
$	649		$	112		$	50		$	576		$	178		$	153
	649			112			50			576			178			153
	—			926			—			6,443			—			620
	(3,929	)		(4	)		(16,583	)		(11	)		(178	)		(14	)
	(3,929	)		922			(16,583	)		6,432			(178	)		606
	(27,787	)		(1,462	)		5,589			(5,750	)		(3,416	)		(1,472	)
	(31,067	)		(428	)		(10,944	)		1,258			(3,416	)		(713	)
	26,572			4,512			11,706			11,706			268			—
	(10,059	)		(789	)		(1,599	)		(2,194	)		(357	)		(260	)
	—			—			—			—			—			—
	56,137			6,612			(44,298	)		(7	)		—			4,096
	72,650			10,335			(34,191	)		9,505			(89	)		3,836
	41,583			9,907			(45,135	)		10,763			(3,505	)		3,123
	9,907			—			48,008			37,245			8,331			5,208
$	51,490		$	9,907		$	2,873		$	48,008		$	4,826		$	8,331

53

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Overseas Equity Trust Series 0						Pacific Rim Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	7,568		$	1,050		$	1,753		$	568
Net investment income (loss)		7,568			1,050			1,753			568
Realized gains (losses) on investments:
Capital gain distributions		3,006			6,025			1,418			9,526
Net realized gains (losses)		(2,413	)		185			(11,791	)		252
Realized gains (losses)		593			6,210			(10,373	)		9,778
Unrealized appreciation (depreciation) during the period		(123,075	)		(4,132	)		(32,602	)		(10,145	)
Net increase (decrease) in assets from operations		(114,914	)		3,128			(41,222	)		201
Changes from principal transactions:
Transfer of net premiums		34,593			26,308			55,818			14,928
Transfer on terminations		(7,431	)		(3,694	)		(13,035	)		(4,998	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		283,172			28,393			23,085			33,269
Net increase (decrease) in assets from principal transactions		310,334			51,007			65,868			43,199
Total increase (decrease) in assets		195,420			54,135			24,646			43,400
Assets, beginning of period		60,183			6,048			50,215			6,815
Assets, end of period	$	255,603		$	60,183		$	74,861		$	50,215

(ae) Terminated as an investment option and funds transferred to Mid Cap Index Trust on April 28, 2008.

(n) Fund available in prior year but no activity.

See accompanying notes.

54

Sub-Account
Pacific Rim Trust Series 1						Quantitative Mid Cap Trust Series 0						Quantitative Mid Cap Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ae)			Year Ended Dec. 31/07 (n)			Year Ended Dec. 31/08 (ae)			Year Ended Dec. 31/07
$	3,406		$	3,980		$	1		$	16		$	52		$	604
	3,406			3,980			1			16			52			604
	4,560			56,540			3			359			124			22,832
	(930	)		8,997			(894	)		(7	)		(47,812	)		(238	)
	3,630			65,537			(891	)		352			(47,688	)		22,594
	(99,485	)		(49,460	)		797			(797	)		43,989			(26,363	)
	(92,449	)		20,057			(93	)		(429	)		(3,647	)		(3,165	)
	20,465			25,770			14			—			3,030			15,821
	(8,891	)		(9,652	)		(47	)		(88	)		(1,075	)		(3,614	)
	—			—			—			—			—			—
	2,075			(22,094	)		(2,870	)		3,513			(121,421	)		5,212
	13,649			(5,976	)		(2,903	)		3,425			(119,466	)		17,419
	(78,800	)		14,081			(2,996	)		2,996			(123,113	)		14,254
	222,935			208,854			2,996			—			123,113			108,859
$	144,135		$	222,935			—		$	2,996			—		$	123,113

55

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Real Estate Securities Trust Series 0						Real Estate Securities Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	13,396		$	11,699		$	11,572		$	11,465
Net investment income (loss)		13,396			11,699			11,572			11,465
Realized gains (losses) on investments:
Capital gain distributions		5,210			215,589			5,232			218,526
Net realized gains (losses)		(202,135	)		(55,523	)		(22,131	)		9,106
Realized gains (losses)		(196,925	)		160,066			(16,899	)		227,632
Unrealized appreciation (depreciation) during the period		7,797			(256,097	)		(136,299	)		(308,762	)
Net increase (decrease) in assets from operations		(175,732	)		(84,332	)		(141,626	)		(69,665	)
Changes from principal transactions:
Transfer of net premiums		133,692			363,684			10,943			13,504
Transfer on terminations		(48,016	)		(42,945	)		(21,820	)		(16,009	)
Transfer on policy loans		—			—			(16,998	)		—
Net interfund transfers		(12,474	)		(27,497	)		12,348			(6,767	)
Net increase (decrease) in assets from principal transactions		73,202			293,242			(15,527	)		(9,272	)
Total increase (decrease) in assets		(102,530	)		208,910			(157,153	)		(78,937	)
Assets, beginning of period		385,417			176,507			381,484			460,421
Assets, end of period	$	282,887		$	385,417		$	224,331		$	381,484

See accompanying notes.

56

Sub-Account
Real Return Bond Trust Series 0						Real Return Bond Trust Series 1						Science & Technology Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	1,152		$	10,281		$	64		$	721			—			—
	1,152			10,281			64			721			—			—
	4,804			—			272			—			—			—
	(2,057	)		(317	)		(7	)		40			(1,007	)		862
	2,747			(317	)		265			40			(1,007	)		862
	(36,526	)		3,740			(3,237	)		425			(104,725	)		24,212
	(32,627	)		13,704			(2,908	)		1,186			(105,732	)		25,074
	47,466			95,626			2,667			649			53,219			45,767
	(15,686	)		(8,096	)		(1,294	)		(1,274	)		(12,109	)		(7,856	)
	—			—			—			—			—			—
	90,362			(9,581	)		12,004			—			32,092			7,398
	122,142			77,949			13,377			(625	)		73,202			45,309
	89,515			91,653			10,469			561			(32,530	)		70,383
	149,991			58,338			11,060			10,499			182,724			112,341
$	239,506		$	149,991		$	21,529		$	11,060		$	150,194		$	182,724

57

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Science & Technology Trust Series 1						Short-Term Bond Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution		—			—		$	2,006		$	1,677
Net investment income (loss)		—			—			2,006			1,677
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gains (losses)		6,919			6,229			886			(9	)
Realized gains (losses)		6,919			6,229			886			(9	)
Unrealized appreciation (depreciation) during the period		(157,312	)		57,451			(6,927	)		(1,189	)
Net increase (decrease) in assets from operations		(150,393	)		63,680			(4,035	)		479
Changes from principal transactions:
Transfer of net premiums		52,982			55,982			385,309			14,020
Transfer on terminations		(43,487	)		(30,915	)		(2,160	)		(1,138	)
Transfer on policy loans		(11,848	)		3,576			—			—
Net interfund transfers		(98,299	)		(1,159	)		(373,664	)		465
Net increase (decrease) in assets from principal transactions		(100,652	)		27,484			9,485			13,347
Total increase (decrease) in assets		(251,045	)		91,164			5,450			13,826
Assets, beginning of period		402,166			311,002			17,469			3,643
Assets, end of period	$	151,121		$	402,166		$	22,919		$	17,469

(al) Reflects the period from commencement of operations on November 10, 2008 through December 31, 2008.

See accompanying notes.

58

Sub-Account
Small Cap Growth Trust Series 0						Small Cap Growth Trust Series 1			Small Cap Index Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (al)			Year Ended Dec. 31/08			Year Ended Dec. 31/07
	—			—			—		$	3,733		$	5,378
	—			—			—			3,733			5,378
	313			274			—			2,400			39,277
	(4,415	)		35			(17	)		(37,764	)		1,826
	(4,102	)		309			(17	)		(35,364	)		41,103
	(7,070	)		(141	)		15			(75,288	)		(57,044	)
	(11,172	)		168			(2	)		(106,919	)		(10,563	)
	21,523			1,383			291			73,595			173,766
	(7,506	)		(516	)		(246	)		(19,596	)		(19,606	)
	(1	)		(288	)		—			—			—
	153,219			126			21,436			(32,850	)		18,666
	167,235			705			21,481			21,149			172,826
	156,063			873			21,479			(85,770	)		162,263
	1,681			808			—			297,118			134,855
$	157,744		$	1,681		$	21,479		$	211,348		$	297,118

59

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Small Cap Index Trust Series 1						Small Cap Opportunities Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	1,782		$	2,591		$	3,414		$	2,658
Net investment income (loss)		1,782			2,591			3,414			2,658
Realized gains (losses) on investments:
Capital gain distributions		1,343			19,912			3,436			8,679
Net realized gains (losses)		281			2,579			(3,909	)		(104	)
Realized gains (losses)		1,624			22,491			(473	)		8,575
Unrealized appreciation (depreciation) during the period		(55,343	)		(28,688	)		(72,293	)		(22,757	)
Net increase (decrease) in assets from operations		(51,937	)		(3,606	)		(69,352	)		(11,524	)
Changes from principal transactions:
Transfer of net premiums		9,794			19,837			40,497			38,039
Transfer on terminations		(6,639	)		(8,069	)		(7,625	)		(11,416	)
Transfer on policy loans		262			(230	)		—			—
Net interfund transfers		1,592			640			9,358			5,706
Net increase (decrease) in assets from principal transactions		5,009			12,178			42,230			32,329
Total increase (decrease) in assets		(46,928	)		8,572			(27,122	)		20,805
Assets, beginning of period		150,486			141,914			135,255			114,450
Assets, end of period	$	103,558		$	150,486		$	108,133		$	135,255

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

See accompanying notes.

60

Sub-Account
Small Cap Opportunities Trust Series 1						Small Cap Trust Series 0						Small Cap Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ag)			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ag)			Year Ended Dec. 31/07
$	2,144		$	1,999		$	2			—		$	1			—
	2,144			1,999			2			—			1			—
	2,699			6,779			115			1,376			154			1,268
	(1,077	)		1,014			(5,842	)		19			(6,894	)		(153	)
	1,622			7,793			(5,727	)		1,395			(6,740	)		1,115
	(48,313	)		(18,318	)		1,527			(1,529	)		1,547			(1,177	)
	(44,547	)		(8,526	)		(4,198	)		(134	)		(5,192	)		(62	)
	12,151			20,175			4,490			5,297			5,035			3,718
	(6,341	)		(7,052	)		(1,773	)		(1,508	)		(308	)		(336	)
	390			5			—			—			—			—
	(4,705	)		4,239			(6,562	)		1,271			(8,230	)		(2,445	)
	1,495			17,367			(3,845	)		5,060			(3,503	)		937
	(43,052	)		8,841			(8,043	)		4,926			(8,695	)		875
	105,271			96,430			8,043			3,117			8,695			7,820
$	62,219		$	105,271			—		$	8,043			—		$	8,695

61

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Small Cap Value Trust Series 0						Small Cap Value Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07 (g)
Income:
Dividend income distribution	$	1,389		$	408		$	467		$	93
Net investment income (loss)		1,389			408			467			93
Realized gains (losses) on investments:
Capital gain distributions		129			7,406			54			1,637
Net realized gains (losses)		(2,180	)		(50	)		(259	)		(1	)
Realized gains (losses)		(2,051	)		7,356			(205	)		1,636
Unrealized appreciation (depreciation) during the period		(32,783	)		(8,927	)		(6,252	)		(1,983	)
Net increase (decrease) in assets from operations		(33,445	)		(1,163	)		(5,990	)		(254	)
Changes from principal transactions:
Transfer of net premiums		11,559			6,873			3,145			1,295
Transfer on terminations		(5,919	)		(2,609	)		(789	)		(31	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		95,375			5,333			23,339			16,504
Net increase (decrease) in assets from principal transactions		101,015			9,597			25,695			17,768
Total increase (decrease) in assets		67,570			8,434			19,705			17,514
Assets, beginning of period		41,475			33,041			17,514			—
Assets, end of period	$	109,045		$	41,475		$	37,219		$	17,514

(g) Reflects the period from commencement of operations on November 12, 2007 through December 31, 2007.

See accompanying notes.

62

Sub-Account
Small Company Trust Series 1						Small Company Value Trust Series 0						Small Company Value Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
	—			—		$	845		$	95		$	2,621		$	709
	—			—			845			95			2,621			709
	18			2,803			1,521			10,911			7,687			78,095
	(570	)		(110	)		(13,372	)		569			(33,529	)		15,875
	(552	)		2,693			(11,851	)		11,480			(25,842	)		93,970
	(7,497	)		(4,000	)		(18,304	)		(15,429	)		(90,410	)		(99,016	)
	(8,049	)		(1,307	)		(29,310	)		(3,854	)		(113,631	)		(4,337	)
	2,672			2,956			31,639			29,440			20,968			37,253
	(693	)		(662	)		(11,348	)		(6,291	)		(53,756	)		(27,434	)
	—			—			—			—			(5,347	)		(16,715	)
	—			—			22,397			39,450			(69,218	)		(3,979	)
	1,979			2,294			42,688			62,599			(107,353	)		(10,875	)
	(6,070	)		987			13,378			58,745			(220,984	)		(15,212	)
	16,494			15,507			85,287			26,542			466,520			481,732
$	10,424		$	16,494		$	98,665		$	85,287		$	245,536		$	466,520

63

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Special Value Trust Series 0			Special Value Trust Series 1
	Year Ended Dec. 31/07 (v)			Year Ended Dec. 31/07 (v)
Income:
Dividend income distribution	$	96		$	393
Net investment income (loss)		96			393
Realized gains (losses) on investments:
Capital gain distributions		600			5,961
Net realized gains (losses)		(820	)		(5,928	)
Realized gains (losses)		(220	)		33
Unrealized appreciation (depreciation) during the period		—			(537	)
Net increase (decrease) in assets from operations		(124	)		(111	)
Changes from principal transactions:
Transfer of net premiums		5,263			1,850
Transfer on terminations		(642	)		(553	)
Transfer on policy loans		—			—
Net interfund transfers		(4,587	)		(16,504	)
Net increase (decrease) in assets from principal transactions		34			(15,207	)
Total increase (decrease) in assets		(90	)		(15,318	)
Assets, beginning of period		90			15,318
Assets, end of period		—			—

(v) Terminated as an investment option and funds transferred to Small Cap Value Trust on November 12, 2007.

See accompanying notes.

64

Sub-Account
Strategic Bond Trust Series 0						Strategic Bond Trust Series 1						Strategic Income Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	2,675		$	290		$	21,298		$	26,790		$	2,634		$	235
	2,675			290			21,298			26,790			2,634			235
	—			—			—			—			—			—
	(1,361	)		(8	)		(4,376	)		791			(138	)		25
	(1,361	)		(8	)		(4,376	)		791			(138	)		25
	(6,174	)		(293	)		(65,948	)		(28,246	)		(4,185	)		(60	)
	(4,860	)		(11	)		(49,026	)		(665	)		(1,689	)		200
	9,147			2,029			32,132			40,605			12,759			6,479
	(3,951	)		(1,202	)		(13,085	)		(14,048	)		(4,201	)		(4,940	)
	—			—			—			—			—			—
	34,220			564			(7,302	)		7,749			9,655			9,601
	39,416			1,391			11,745			34,306			18,213			11,140
	34,556			1,380			(37,281	)		33,641			16,524			11,340
	3,867			2,487			302,113			268,472			11,451			111
$	38,423		$	3,867		$	264,832		$	302,113		$	27,975		$	11,451

65

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Strategic Income Trust Series 1						Strategic Opportunities Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/07 (e)
Income:
Dividend income distribution	$	11,513		$	798		$	1,355
Net investment income (loss)		11,513			798			1,355
Realized gains (losses) on investments:
Capital gain distributions		—			—			—
Net realized gains (losses)		(1,572	)		(4	)		53,119
Realized gains (losses)		(1,572	)		(4	)		53,119
Unrealized appreciation (depreciation) during the period		(20,688	)		1,281			(42,523	)
Net increase (decrease) in assets from operations		(10,747	)		2,075			11,951
Changes from principal transactions:
Transfer of net premiums		4,488			5,228			4,200
Transfer on terminations		(4,861	)		(1,511	)		(7,539	)
Transfer on policy loans		—			—			(13,765	)
Net interfund transfers		76,593			23			(184,432	)
Net increase (decrease) in assets from principal transactions		76,220			3,740			(201,536	)
Total increase (decrease) in assets		65,473			5,815			(189,585	)
Assets, beginning of period		39,540			33,725			189,585
Assets, end of period	$	105,013		$	39,540			—

(e) Terminated as an investment option and funds transferred to Large Cap Trust on April 30, 2007.

(ac) Fund renamed on October 1, 2007. Previously known as Bond Index Trust B.

See accompanying notes.

66

Sub-Account
Total Bond Market Trust B Series 0						Total Return Trust Series 0						Total Return Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07 (ac)			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	2,920		$	701		$	13,670		$	15,960		$	25,524		$	34,412
	2,920			701			13,670			15,960			25,524			34,412
	—			—			2,363			—			5,423			—
	64			29			554			403			(3,960	)		(896	)
	64			29			2,917			403			1,463			(896	)
	(245	)		(236	)		(8,221	)		(467	)		(11,272	)		5,165
	2,739			494			8,366			15,896			15,715			38,681
	24,135			13,444			64,888			94,172			52,133			81,913
	(6,260	)		(1,788	)		(18,575	)		(11,561	)		(41,183	)		(29,920	)
	—			—			—			—			—			—
	25,152			2,974			19,858			32,211			15,969			(4,372	)
	43,027			14,630			66,171			114,822			26,919			47,621
	45,766			15,124			74,537			130,718			42,634			86,302
	15,131			7			241,537			110,819			503,738			417,436
$	60,897		$	15,131		$	316,074		$	241,537		$	546,372		$	503,738

67

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Total Stock Market Index Trust Series 0						Total Stock Market Index Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	856		$	397		$	1,612		$	2,433
Net investment income (loss)		856			397			1,612			2,433
Realized gains (losses) on investments:
Capital gain distributions		46			994			174			4,276
Net realized gains (losses)		(4,570	)		(7	)		(514	)		2,312
Realized gains (losses)		(4,524	)		987			(340	)		6,588
Unrealized appreciation (depreciation) during the period		(17,904	)		(2,640	)		(45,629	)		(3,532	)
Net increase (decrease) in assets from operations		(21,572	)		(1,256	)		(44,357	)		5,489
Changes from principal transactions:
Transfer of net premiums		34,689			968			10,766			11,270
Transfer on terminations		(10,090	)		(2,259	)		(7,223	)		(7,436	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		7,271			34,256			1,390			(748	)
Net increase (decrease) in assets from principal transactions		31,870			32,965			4,933			3,086
Total increase (decrease) in assets		10,298			31,709			(39,424	)		8,575
Assets, beginning of period		34,014			2,305			113,343			104,768
Assets, end of period	$	44,312		$	34,014		$	73,919		$	113,343

(n) Fund available in prior year but no activity.

(ah) Terminated as an investment option and funds transferred to Fundamental Value Trust on November 10, 2008.

See accompanying notes.

68

Sub-Account
Turner Core Growth Trust		U.S. Core Trust Series 0						U.S. Core Trust Series 1
Year Ended Dec. 31/08 (n)		Year Ended Dec. 31/08 (ah)			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (ah)			Year Ended Dec. 31/07
	—	$	48		$	5		$	6,801		$	13,040
	—		48			5			6,801			13,040
	—		4			25			5,018			54,054
	(87)		(1,083	)		9			(221,462	)		5,949
	(87)		(1,079	)		34			(216,444	)		60,003
	(982)		34			(43	)		18,495			(66,428	)
	(1,069)		(997	)		(4	)		(191,148	)		6,615
	—		609			583			36,176			49,337
	(271)		(492	)		(409	)		(36,294	)		(38,212	)
	—		—			—			(4,104	)		—
	3,024		579			20			(378,882	)		(7,556	)
	2,753		696			194			(383,104	)		3,569
	1,684		(301	)		190			(574,252	)		10,184
	—		301			111			574,252			564,068
$	1,684		—		$	301			—		$	574,252

69

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	U.S. Global Leaders Growth Trust Series 0						U.S. Global Leaders Growth Trust Series 1
	Year Ended Dec. 31/08 (af)			Year Ended Dec. 31/07			Year Ended Dec. 31/08 (af)			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	8		$	23		$	103		$	373
Net investment income (loss)		8			23			103			373
Realized gains (losses) on investments:
Capital gain distributions		271			—			3,722			—
Net realized gains (losses)		807			17			(1,070	)		23
Realized gains (losses)		1,078			17			2,652			23
Unrealized appreciation (depreciation) during the period		(17	)		14			(2,598	)		637
Net increase (decrease) in assets from operations		1,069			54			157			1,033
Changes from principal transactions:
Transfer of net premiums		933			3,004			502			2,163
Transfer on terminations		(539	)		(1,535	)		(865	)		(2,833	)
Transfer on policy loans		—			—			—			(60	)
Net interfund transfers		(3,551	)		23			(28,805	)		53
Net increase (decrease) in assets from principal transactions		(3,157	)		1,492			(29,168	)		(677	)
Total increase (decrease) in assets		(2,088	)		1,546			(29,011	)		356
Assets, beginning of period		2,088			542			29,011			28,655
Assets, end of period		—		$	2,088			—		$	29,011

(af) Terminated as an investment option and funds transferred to Blue Chip Growth Trust on April 28, 2008.

See accompanying notes.

70

Sub-Account
U.S. Government Securities Trust Series 0						U.S. Government Securities Trust Series 1						U.S. High Yield Bond Trust Series 0
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	16,070		$	8,873		$	22,579		$	47,076		$	6,613		$	11,173
	16,070			8,873			22,579			47,076			6,613			11,173
	—			—			—			—			—			—
	(758	)		(12	)		(12,646	)		(2,506	)		(281	)		3
	(758	)		(12	)		(12,646	)		(2,506	)		(281	)		3
	(9,682	)		(5,355	)		(18,617	)		(26,025	)		(30,026	)		(8,101	)
	5,630			3,506			(8,684	)		18,545			(23,694	)		3,075
	17,586			3,164			36,425			65,835			5,445			1,767
	(10,017	)		(2,861	)		(30,941	)		(20,984	)		(2,560	)		(986	)
	—			—			(5,997	)		(15,672	)		—			—
	347,404			6,401			736			6,959			7,243			1,719
	354,973			6,704			223			36,138			10,128			2,500
	360,603			10,210			(8,461	)		54,683			(13,566	)		5,575
	110,571			100,361			600,629			545,946			107,782			102,207
$	471,174		$	110,571		$	592,168		$	600,629		$	94,216		$	107,782

71

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	U.S. High Yield Bond Trust Series 1						U.S. Large Cap Trust Series 0
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	1,072		$	1,773		$	11,362		$	4,489
Net investment income (loss)		1,072			1,773			11,362			4,489
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gains (losses)		(125	)		13			(16,871	)		396
Realized gains (losses)		(125	)		13			(16,871	)		396
Unrealized appreciation (depreciation) during the period		(5,018	)		(1,297	)		(190,226	)		(21,580	)
Net increase (decrease) in assets from operations		(4,071	)		489			(195,735	)		(16,695	)
Changes from principal transactions:
Transfer of net premiums		2,334			2,333			105,697			174,938
Transfer on terminations		(795	)		(649	)		(21,447	)		(14,927	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		—			—			3,615			49,776
Net increase (decrease) in assets from principal transactions		1,539			1,684			87,865			209,787
Total increase (decrease) in assets		(2,532	)		2,173			(107,870	)		193,092
Assets, beginning of period		17,853			15,680			446,691			253,599
Assets, end of period	$	15,321		$	17,853		$	338,821		$	446,691

See accompanying notes.

72

Sub-Account
U.S. Large Cap Trust Series 1						Utilities Trust Series 0						Utilities Trust Series 1
Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
$	6,857		$	4,207		$	9,240		$	3,651		$	2,791		$	2,158
	6,857			4,207			9,240			3,651			2,791			2,158
	—			—			9,637			45,763			3,883			26,291
	2,045			14,534			(17,368	)		4,736			(3,008	)		5,414
	2,045			14,534			(7,731	)		50,499			875			31,705
	(140,628	)		(20,995	)		(128,774	)		(19,531	)		(50,277	)		(7,684	)
	(131,726	)		(2,254	)		(127,265	)		34,619			(46,611	)		26,179
	23,180			51,428			72,411			62,746			2,584			15,815
	(27,521	)		(63,722	)		(44,283	)		(15,380	)		(6,278	)		(6,292	)
	(3,266	)		(30	)		(1,185	)		(2,335	)		—			—
	1,213			6,237			66,452			142,326			(5,262	)		(7,613	)
	(6,394	)		(6,087	)		93,395			187,357			(8,956	)		1,910
	(138,120	)		(8,341	)		(33,870	)		221,976			(55,567	)		28,089
	347,587			355,928			266,665			44,689			122,895			94,806
$	209,467		$	347,587		$	232,795		$	266,665		$	67,328		$	122,895

73

John Hancock Life Insurance Company of New York Separate Account B

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Value Trust Series 0						Value Trust Series 1
	Year Ended Dec. 31/08			Year Ended Dec. 31/07			Year Ended Dec. 31/08			Year Ended Dec. 31/07
Income:
Dividend income distribution	$	566		$	100		$	4,074		$	4,947
Net investment income (loss)		566			100			4,074			4,947
Realized gains (losses) on investments:
Capital gain distributions		823			2,405			9,413			109,308
Net realized gains (losses)		(4,695	)		82			(4,797	)		12,435
Realized gains (losses)		(3,872	)		2,487			4,616			121,743
Unrealized appreciation (depreciation) during the period		(10,949	)		(2,419	)		(164,719	)		(100,398	)
Net increase (decrease) in assets from operations		(14,255	)		168			(156,029	)		26,292
Changes from principal transactions:
Transfer of net premiums		36,464			5,709			17,376			21,271
Transfer on terminations		(4,779	)		(1,491	)		(18,776	)		(18,005	)
Transfer on policy loans		—			—			(4,576	)		(17,419	)
Net interfund transfers		11,677			3,925			55,433			39,660
Net increase (decrease) in assets from principal transactions		43,362			8,143			49,457			25,507
Total increase (decrease) in assets		29,107			8,311			(106,572	)		51,799
Assets, beginning of period		11,452			3,141			379,076			327,277
Assets, end of period	$	40,559		$	11,452		$	272,504		$	379,076

See accompanying notes.

74

Total
Year Ended Dec. 31/08		Year Ended Dec. 31/07
$	1,576,992	$	2,043,626
	1,576,992		2,043,626
	1,673,960		2,455,229
	(2,530,967)		629,986
	(857,007)		3,085,215
	(20,455,633)		(3,031,341	)
	(19,735,648)		2,097,500
	26,962,304		23,683,891
	(5,359,238)		(4,188,453	)
	(183,984)		(98,295	)
	(111,406)		(3,147,689	)
	21,307,676		16,249,454
	1,572,028		18,346,954
	49,797,266		31,450,312
$	51,369,294	$	49,797,266

75

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements

December 31, 2008

1. Organization

John Hancock Life Insurance Company of New York Separate Account B (the “Account”) is a separate account administered and sponsored by John Hancock Life Insurance Company of New York (the “Company”). The Account operates as a Unit Investment Trust registered under the Investment Company Act of 1940, as amended (the “Act”) and has 133 active investment sub-accounts that invest in shares of a particular John Hancock Trust (the “Trust”) portfolio and 7 sub-accounts that invest in shares of other outside investment trusts. The Trust is registered under the Act as an open-end management investment company, commonly known as a mutual fund, which does not transact with the general public. Instead, the Trust deals primarily with insurance companies by providing the investment medium for variable contracts. The Account is a funding vehicle for the allocation of net premiums under single premium variable life and variable universal life insurance contracts (the “Contracts”) issued by the Company.

The Company is a wholly owned subsidiary of John Hancock Life Insurance Company (U.S.A.) (“JHUSA”) which in turn is an indirect, wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian-based publicly traded stock life insurance company.

The Company is required to maintain assets in the Account with a total fair value 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.

Additional assets are held in the Company’s general account to cover the contingency that the guaranteed minimum death benefit might exceed the death benefit which would have been payable in the absence of such guarantee.

Each sub-account that invests in Portfolios of the John Hancock Trust may offer two classes of units to fund the Contracts issued by the Company. These classes, Series 1 and Series 0, represent an interest in the same Trust Portfolio but in different share classes of that Portfolio. Series 1 represents interests in Series 1 shares of the Portfolio and Series 0 represents interests in Series NAV shares of the Trust's Portfolio. Series 1 and Series NAV shares differ in the level of 12b-1 fees and other expenses assessed against the Portfolio's assets.

As the result of portfolio changes, the following sub-accounts of the Account were renamed as follows:

Previous Name	New Name	Effective Date
Quantitative All Cap Trust	Optimized All Cap Trust	April 28, 2008
Quantitative Value Trust	Optimized Value Trust	April 28, 2008

76

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

The following sub-accounts of the Account were commenced as investment options:

New	Effective Date
American Asset Allocation Trust	April 28, 2008
Capital Appreciation Value Trust	April 28, 2008
Core Allocation Plus Trust	April 28, 2008
Disciplined Diversification Trust	April 28, 2008
Franklin Templeton Founding Allocation Trust	April 28, 2008
Global Real Estate Trust	April 28, 2008
Index Allocation Trust	April 28, 2008
Small Cap Growth Trust Series 1	November 10, 2008

The following sub-accounts of the Account were terminated as investment options and the funds were transferred to existing sub-accounts as follows:

Terminated	Fund Transferred To	Effective Date
Dynamic Growth Trust	Mid Cap Stock Trust	April 28, 2008
Emerging Growth Trust	Small Cap Growth Trust	November 10, 2008
Growth & Income Trust	Optimized All Cap Trust	April 28, 2008
Managed Trust	Lifestyle Balanced Trust	November 10, 2008
Quantitative Mid Cap Trust	Mid Cap Index Trust	April 28, 2008
Small Cap Trust	Small Cap Growth Trust	November 10, 2008
U.S. Core Trust	Fundamental Value Trust	November 10, 2008
U.S. Global Leaders Growth Trust	Blue Chip Growth Trust	April 28, 2008

Where a fund has two series, the changes noted above apply to both Series 0 and Series 1 except for Small Cap Growth Trust Series 1 which was added in 2008 (Small Cap Growth Trust Series 0 was added in 2005).

2. Significant Accounting Policies

Investments of each sub-account consist of shares in the respective portfolio of the Trusts. These shares are carried at fair value which is calculated using the fair value of the investment securities underlying each Trust portfolio. Transactions are recorded on the trade date. Income from dividends is recorded on the ex-dividend date. Realized gains and losses on the sale of investments are computed on the basis of the specifically identified cost of the investment sold.

In addition to the Account, a contract holder may also allocate funds to the fixed account contained within 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 Act. Net interfund transfers include interfund transfers between separate and general accounts.

77

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

The operations of the Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (the “Code”). Under the current provisions of the Code, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the Contracts. Based on this, no charge is being made currently to the Account for federal income taxes. The Company will periodically reassess this position taking into account changes in the tax law. Such a charge may be made in future years for any federal income taxes that would be attributable to the Contracts.

Effective January 1, 2008, the Company adopted SFAS 157, Fair Value Measurements (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 defines fair value as the price 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 SFAS 157 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.

For all investments in Level 1, 2 or 3, fair value is typically the net asset value (“NAV”) of the underlying investment fund which represents the value at which each sub-account can redeem its investments.

The following table presents the Account's assets that are measured at fair value on a recurring basis by SFAS 157 fair value hierarchy level, as of December 31, 2008.

	Mutual Funds
Level 1	$	51,369,294
Level 2		—
Level 3		—
	$	51,369,294

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported herein. Actual results could differ from those estimates.

78

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

3. Contract Charges

The Company deducts certain charges from gross premiums before placing the remaining net premiums in the sub-account. In the event of a surrender by the contract holder, surrender charges may be levied by the Company against the contract value at the time of termination to cover sales and administrative expenses associated with the underwriting and issuing of the Contract. Additionally, each month a deduction consisting of an administration charge, a charge for cost of insurance, a charge for mortality and expense risks and charges for supplementary benefits is deducted from the contract value. Contract charges are paid through the redemption of sub-account units and are reflected as terminations.

4. Purchases and Sales of Investments

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2008 were as follows:

	Purchases		Sales
Sub-accounts:
500 Index Trust B Series 0	$	568,617	$	115,779
500 Index Trust Series 1		65,987		215,731
Active Bond Trust Series 0		15,185		1,535
Active Bond Trust Series 1		28,406		94,017
All Cap Core Trust Series 0		3,322		1,958
All Cap Core Trust Series 1		39,666		25,480
All Cap Growth Trust Series 0		1,953		585
All Cap Growth Trust Series 1		12,203		8,462
All Cap Value Trust Series 0		44,080		9,565
All Cap Value Trust Series 1		30,657		4,452
American Asset Allocation Trust Series 1		1,358		66
American Blue Chip Income and Growth Trust Series 1		93,637		47,157
American Bond Trust Series 1		29,403		9,969
American Growth Trust Series 1		493,518		175,461
American Growth-Income Trust Series 1		446,532		93,651
American International Trust Series 1		423,332		137,033
Blue Chip Growth Trust Series 0		398,617		55,334
Blue Chip Growth Trust Series 1		104,249		76,072
Capital Appreciation Trust Series 0		34,220		6,787
Capital Appreciation Trust Series 1		30,907		18,145
Classic Value Trust Series 0		56,511		7,891
Classic Value Trust Series 1		789		1,735
Core Allocation Plus Trust Series 0		349		170
Core Bond Trust Series 0		67		1,404
Core Bond Trust Series 1		91,844		1,532
Core Equity Trust Series 0		9,801		1,777
Disciplined Diversification Trust Series 0		700		64
Dynamic Growth Trust Series 0		8		14
Dynamic Growth Trust Series 1		1,197		42,726
Emerging Growth Trust Series 0		69,823		132,350
Emerging Growth Trust Series 1		4,888		20,395
Emerging Markets Value Trust Series 0		26,452		4,534
Emerging Small Company Trust Series 0		12,215		1,238

79

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

	Purchases		Sales
Sub-accounts:
Emerging Small Company Trust Series 1	$	5,261	$	5,758
Equity-Income Trust Series 0		365,712		166,189
Equity-Income Trust Series 1		317,639		304,739
Financial Services Trust Series 0		56,327		18,274
Financial Services Trust Series 1		17,092		8,351
Franklin Templeton Founding Allocation Trust Series 0		1,797		166
Fundamental Value Trust Series 0		122,093		147,741
Fundamental Value Trust Series 1		478,598		175,328
Global Allocation Trust Series 0		38,757		11,202
Global Allocation Trust Series 1		18,502		7,209
Global Bond Trust Series 0		224,879		27,695
Global Bond Trust Series 1		55,568		61,650
Global Real Estate Trust Series 0		10,231		3,456
Global Real Estate Trust Series 1		679		36
Global Trust Series 0		37,715		4,492
Global Trust Series 1		30,126		8,725
Growth & Income Trust Series 0		8,157		63,253
Health Sciences Trust Series 0		75,451		32,216
Health Sciences Trust Series 1		29,129		32,595
High Yield Trust Series 0		164,703		27,774
High Yield Trust Series 1		24,586		22,551
Income & Value Trust Series 0		32,072		5,949
Income & Value Trust Series 1		21,427		20,907
Index Allocation Trust Series 0		2,079		52
International Core Trust Series 0		163,665		35,410
International Core Trust Series 1		19,107		10,785
International Equity Index Trust A Series 1		36,413		4,532
International Equity Index Trust B Series 0		153,595		53,983
International Opportunities Trust Series 0		131,394		24,798
International Opportunities Trust Series 1		21,794		15,659
International Small Cap Trust Series 0		166,727		27,920
International Small Cap Trust Series 1		13,166		6,901
International Value Trust Series 0		74,165		25,896
International Value Trust Series 1		58,727		82,768
Investment Quality Bond Trust Series 0		181,651		3,449
Investment Quality Bond Trust Series 1		37,600		114,806
Large Cap Trust Series 0		20,168		5,602
Large Cap Trust Series 1		23,184		66,412
Large Cap Value Trust Series 0		317,372		82,069
Large Cap Value Trust Series 1		263,103		39,552
Lifestyle Aggressive Trust Series 0		6,506,755		382,538
Lifestyle Aggressive Trust Series 1		182,975		18,446
Lifestyle Balanced Trust Series 0		6,193,030		3,879,406
Lifestyle Balanced Trust Series 1		341,571		181,699
Lifestyle Conservative Trust Series 0		78,336		17,391
Lifestyle Conservative Trust Series 1		37,894		15,944
Lifestyle Growth Trust Series 0		6,202,506		981,717
Lifestyle Growth Trust Series 1		455,037		443,730
Lifestyle Moderate Trust Series 0		377,274		101,037
Lifestyle Moderate Trust Series 1		58,482		13,525
Managed Trust Series 0		55,707		88,944

80

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

	Purchases		Sales
Sub-accounts:
Mid Cap Index Trust Series 0	$	208,476	$	43,780
Mid Cap Index Trust Series 1		149,143		8,887
Mid Cap Intersection Trust Series 0		1,381		566
Mid Cap Stock Trust Series 0		256,232		134,510
Mid Cap Stock Trust Series 1		97,288		18,791
Mid Cap Value Trust Series 0		27,221		11,222
Mid Cap Value Trust Series 1		41,901		18,987
Mid Value Trust Series 0		117,544		97,422
Money Market Trust B Series 0		14,369,301		10,791,843
Money Market Trust Series 1		667,354		461,978
Natural Resources Trust Series 0		367,206		60,058
Natural Resources Trust Series 1		43,389		88,898
Optimized All Cap Trust Series 0		88,042		14,744
Optimized All Cap Trust Series 1		11,786		45,928
Optimized Value Trust Series 0		437		348
Overseas Equity Trust Series 0		327,129		6,222
Pacific Rim Trust Series 0		90,861		21,823
Pacific Rim Trust Series 1		33,080		11,465
Quantitative Mid Cap Trust Series 0		19		2,917
Quantitative Mid Cap Trust Series 1		3,151		122,440
Real Estate Securities Trust Series 0		228,946		137,137
Real Estate Securities Trust Series 1		49,006		47,728
Real Return Bond Trust Series 0		189,488		61,391
Real Return Bond Trust Series 1		14,959		1,246
Science & Technology Trust Series 0		91,470		18,268
Science & Technology Trust Series 1		45,682		146,334
Short-Term Bond Trust Series 0		402,330		390,841
Small Cap Growth Trust Series 0		185,137		17,589
Small Cap Growth Trust Series 1		21,697		217
Small Cap Index Trust Series 0		136,372		109,091
Small Cap Index Trust Series 1		15,212		7,078
Small Cap Opportunities Trust Series 0		57,204		8,124
Small Cap Opportunities Trust Series 1		16,544		10,206
Small Cap Trust Series 0		4,230		7,958
Small Cap Trust Series 1		5,238		8,586
Small Cap Value Trust Series 0		107,977		5,444
Small Cap Value Trust Series 1		27,005		790
Small Company Trust Series 1		2,689		693
Small Company Value Trust Series 0		80,243		35,189
Small Company Value Trust Series 1		38,403		135,447
Strategic Bond Trust Series 0		53,794		11,702
Strategic Bond Trust Series 1		53,070		20,027
Strategic Income Trust Series 0		23,920		3,073
Strategic Income Trust Series 1		102,867		15,135
Total Bond Market Trust B Series 0		71,063		25,115
Total Return Trust Series 0		211,878		129,674
Total Return Trust Series 1		157,502		99,637
Total Stock Market Index Trust Series 0		49,066		16,295
Total Stock Market Index Trust Series 1		13,717		6,998
U.S. Core Trust Series 0		4,359		3,610
U.S. Core Trust Series 1		40,106		411,391

81

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

	Purchases		Sales
Sub-accounts:
U.S. Global Leaders Growth Trust Series 0	$	19,620	$	22,498
U.S. Global Leaders Growth Trust Series 1		4,152		29,495
U.S. Government Securities Trust Series 0		396,253		25,210
U.S. Government Securities Trust Series 1		153,166		130,364
U.S. High Yield Bond Trust Series 0		19,524		2,784
U.S. High Yield Bond Trust Series 1		3,406		795
U.S. Large Cap Trust Series 0		173,946		74,719
U.S. Large Cap Trust Series 1		41,228		40,764
Utilities Trust Series 0		183,391		71,118
Utilities Trust Series 1		8,995		11,277
Value Trust Series 0		56,731		11,980
Value Trust Series 1		87,418		24,475
All Asset Portfolio Series 0		10,570		5,014
All Asset Portfolio Series 1		4,882		889
Brandes International Equity Trust		2,489		203
Business Opportunity Value Trust		3,013		281
CSI Equity Trust		49,719		15,626
Frontier Capital Appreciation Trust		1,536		130
Turner Core Growth Trust		3,018		265
	$	48,075,643	$	23,517,026

5. Transaction with Affiliates

John Hancock Distributors LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principal 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 who are also authorized as variable life insurance agents under applicable state insurance laws. Registered representatives are compensated on a commission basis.

JHUSA has a formal service agreement with its ultimate parent company, MFC, which can be terminated by either party upon two months' notice. Under this agreement, JHUSA pays for legal, actuarial, investment and certain other administrative services.

The majority of the investments held by the Account are invested in the Trust (Note 1).

82

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

6. Diversification Requirements

The Internal Revenue Service has issued regulations under Section 817(h) of the Code. Under the provisions of Section 817(h) of the Code, a variable life contract will not be treated as a life 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 harbour test or diversification requirements set forth in regulations issued by the Secretary of Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and it intends that the Account will continue to meet such requirements.

7. Comparatives

The comparative financial statements of certain Sub-accounts have been restated from the prior year financial statements previously presented. The restatement comprises of reclassification between the various line items in the Statement of Operations and Changes in Contract Owners' Equity. The reclassification did not result in changes to assets and net increase (decrease) in assets from operations.

83

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	500 Index Trust B Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	16,278		7,938		1,378			—
Units issued	28,361		11,409		7,702			1,443
Units redeemed	(5,845	)	(3,069	)	(1,142	)		(65	)
Units, end of period	38,794		16,278		7,938			1,378
Unit value, end of period $	16.66		26.53		15.76 to 25.20		$	13.63
Assets, end of period $	638,383		416,002		185,449		$	18,787
Investment income ratio*	3.17	%	3.27	%	0.26	%		0.00	%
Total return, lowest to highest**	(37.19%) to (24.71	%)	1.47% to 5.25	%	13.10% to 15.56	%		9.07	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	500 Index Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	63,192		70,520		62,342		60,823		34,393
Units issued	5,265		11,331		22,234		11,060		32,006
Units redeemed	(17,346	)	(18,659	)	(14,056	)	(9,541	)	(5,576	)
Units, end of period	51,111		63,192		70,520		62,342		60,823
Unit value, end of period $	8.58		13.66		13.02		11.30		10.83
Assets, end of period $	438,252		862,934		918,027		704,129		658,730
Investment income ratio*	0.72	%	2.17	%	0.86	%	1.50	%	0.84	%
Total return, lowest to highest**	(37.21	%)	4.90	%	15.27	%	4.29	%	10.26	%

84

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Active Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	36		3		—
Units issued	334		56		5
Units redeemed	(36	)	(23	)	(2	)
Units, end of period	334		36		3
Unit value, end of period $	40.09		44.78		43.05
Assets, end of period $	13,378		1,597		155
Investment income ratio*	11.17	%	12.84	%	0.20	%
Total return, lowest to highest**	(10.55%) to (7.37	%)	2.87% to 4.03	%	4.54% to 5.10	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Active Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	26,667		26,454		25,013		—
Units issued	912		3,681		3,756		27,106
Units redeemed	(6,945	)	(3,468	)	(2,315	)	(2,093	)
Units, end of period	20,634		26,667		26,454		25,013
Unit value, end of period $	12.34		13.80		13.26		12.70
Assets, end of period $	254,685		367,917		350,777		317,641
Investment income ratio*	5.25	%	8.80	%	2.70	%	0.00	%
Total return, lowest to highest**	(10.53	%)	4.05	%	4.42	%	1.59	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

85

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	All Asset Portfolio Series 0
	Year Ended Dec. 31/08 (n)
Units, beginning of period	—
Units issued	1,107
Units redeemed	(554	)
Units, end of period	553
Unit value, end of period $	9.93
Assets, end of period $	5,492
Investment income ratio*	16.50	%
Total return, lowest to highest**	(17.73%) to (12.60	%)

(n) Fund available in prior year but no activity.

	Sub-Account
	All Asset Portfolio Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,425		1,251		—
Units issued	202		212		1,300
Units redeemed	(57	)	(38	)	(49	)
Units, end of period	1,570		1,425		1,251
Unit value, end of period $	14.01		16.72		15.48
Assets, end of period $	22,002		23,822		19,361
Investment income ratio*	5.84	%	7.35	%	5.67	%
Total return, lowest to highest**	(16.17	%)	8.00	%	4.36	%

(n) Fund available in prior year but no activity.

86

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	All Cap Core Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (n)
Units, beginning of period	1,243		—
Units issued	269		1,343
Units redeemed	(187	)	(100	)
Units, end of period	1,325		1,243
Unit value, end of period $	8.05		13.34
Assets, end of period $	10,683		16,581
Investment income ratio*	1.85	%	1.24	%
Total return, lowest to highest**	(39.60%) to (26.69	%)	0.17% to 2.70	%

(n) Fund available in prior year but no activity.

	Sub-Account
	All Cap Core Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	33,933		12,178		15,363		15,972		22,110
Units issued	3,672		27,487		983		1,909		3,535
Units redeemed	(2,772	)	(5,732	)	(4,168	)	(2,518	)	(9,673	)
Units, end of period	34,833		33,933		12,178		15,363		15,972
Unit value, end of period $	6.80		11.27		10.98		9.56		8.77
Assets, end of period $	236,967		382,354		133,649		146,942		140,054
Investment income ratio*	1.73	%	1.64	%	0.65	%	0.75	%	0.39	%
Total return, lowest to highest**	(39.63	%)	2.66	%	14.75	%	9.08	%	16.32	%

87

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	All Cap Growth Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	57		9		—
Units issued	196		83		14
Units redeemed	(57	)	(35	)	(5	)
Units, end of period	196		57		9
Unit value, end of period $	8.09		13.92		12.42
Assets, end of period $	1,586		788		116
Investment income ratio*	0.66	%	0.21	%	0.00	%
Total return, lowest to highest**	(41.91%) to (26.41	%)	4.36% to 12.08	%	5.38% to 6.63	%

(n) Fund available in prior year but no activity.

	Sub-Account
	All Cap Growth Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	6,384		7,890		6,624		8,720		11,094
Units issued	1,308		1,744		1,860		1,838		2,545
Units redeemed	(862	)	(3,250	)	(594	)	(3,934	)	(4,919	)
Units, end of period	6,830		6,384		7,890		6,624		8,720
Unit value, end of period $	7.71		13.28		11.85		11.12		10.20
Assets, end of period $	52,660		84,784		93,513		73,666		88,974
Investment income ratio*	0.35	%	0.05	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(41.94	%)	12.05	%	6.57	%	8.99	%	6.52	%

88

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	All Cap Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	3,188		788		—
Units issued	3,528		2,785		806
Units redeemed	(803	)	(385	)	(18	)
Units, end of period	5,913		3,188		788
Unit value, end of period $	9.78		13.74		12.64
Assets, end of period $	57,842		43,799		9,953
Investment income ratio*	1.17	%	3.10	%	0.00	%
Total return, lowest to highest**	(28.80%) to (19.83	%)	2.47% to 8.68	%	6.65% to 13.82	%

(n) Fund available in prior year but no activity.

	Sub-Account
	All Cap Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	8,816		8,697		8,538		7,732		22,808
Units issued	1,490		331		394		1,030		256
Units redeemed	(275	)	(212	)	(235	)	(224	)	(15,332	)
Units, end of period	10,031		8,816		8,697		8,538		7,732
Unit value, end of period $	13.54		19.02		17.55		15.44		14.60
Assets, end of period $	135,826		167,627		152,657		131,790		112,900
Investment income ratio*	0.89	%	1.79	%	0.93	%	0.53	%	0.36	%
Total return, lowest to highest**	(28.78	%)	8.32	%	13.71	%	5.71	%	15.96	%

89

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	American Asset Allocation Trust Series 1
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	166
Units redeemed	(9	)
Units, end of period	157
Unit value, end of period $	7.26
Assets, end of period $	1,139
Investment income ratio*	11.12	%
Total return, lowest to highest**	(28.47%) to (19.62	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

	Sub-Account
	American Blue Chip Income and Growth Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (n)
Units, beginning of period	8,000		4,332		904		426		—
Units issued	8,084		4,344		5,756		698		439
Units redeemed	(4,065	)	(676	)	(2,328	)	(220	)	(13	)
Units, end of period	12,019		8,000		4,332		904		426
Unit value, end of period $	8.36 to 12.48		13.21 to 19.72		12.99 to 19.40		16.58		15.53
Assets, end of period $	110,055		121,308		65,286		14,986		6,621
Investment income ratio*	4.88	%	2.85	%	0.29	%	0.20	%	0.00	%
Total return, lowest to highest**	(36.72%) to (22.98	%)	(2.84%) to 1.65	%	13.18% to 16.99	%	6.76	%	9.32	%

(n) Fund available in prior year but no activity.

90

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	American Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	3,197		212		—
Units issued	2,390		5,686		228
Units redeemed	(949	)	(2,701	)	(16	)
Units, end of period	4,638		3,197		212
Unit value, end of period $	10.02 to 12.52		11.10 to 13.87		10.78 to 13.47
Assets, end of period $	46,626		35,476		2,284
Investment income ratio*	10.75	%	4.78	%	0.00	%
Total return, lowest to highest**	(10.67%) to (6.10	%)	2.36% to 2.96	%	5.39% to 6.57	%

(n) Fund available in prior year but no activity.

	Sub-Account
	American Growth Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	30,805		17,752		7,376		876		356
Units issued	36,483		20,581		14,117		6,844		629
Units redeemed	(11,151	)	(7,528	)	(3,741	)	(344	)	(109	)
Units, end of period	56,137		30,805		17,752		7,376		876
Unit value, end of period $	8.21 to 12.36		14.71 to 22.15		13.15 to 19.79		18.02		15.57
Assets, end of period $	529,382		576,558		315,611		132,931		13,637
Investment income ratio*	2.37	%	1.18	%	0.25	%	0.00	%	0.00	%
Total return, lowest to highest**	(44.20%) to (31.29	%)	3.36% to 11.94	%	8.22% to 9.80	%	15.79	%	12.10	%

91

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	American Growth-Income Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	70,285		53,718		26,256		14,681		469
Units issued	25,724		21,660		31,289		16,824		14,683
Units redeemed	(7,159	)	(5,093	)	(3,827	)	(5,249	)	(471	)
Units, end of period	88,850		70,285		53,718		26,256		14,681
Unit value, end of period $	8.17		13.20 to 19.70		12.61 to 18.83		16.40		15.56
Assets, end of period $	984,213		1,274,002		935,931		430,661		228,373
Investment income ratio*	2.27	%	3.13	%	1.12	%	0.52	%	0.47	%
Total return, lowest to highest**	(38.08%) to (24.49	%)	(0.67%) to 4.64	%	11.61% to 14.80	%	5.44	%	9.96	%

	Sub-Account
	American International Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	26,925		11,401		7,600		1,042		169
Units issued	23,850		23,067		9,241		6,830		934
Units redeemed	(7,924	)	(7,543	)	(5,440	)	(272	)	(61	)
Units, end of period	42,851		26,925		11,401		7,600		1,042
Unit value, end of period $	10.14 to 17.85		17.60 to 30.98		14.72 to 25.91		21.86		18.05
Assets, end of period $	528,085		608,090		247,724		166,111		18,804
Investment income ratio*	4.52	%	2.44	%	0.86	%	0.27	%	0.18	%
Total return, lowest to highest**	(42.37%) to (26.02	%)	9.35% to 19.58	%	10.32% to 18.54	%	21.07	%	18.88	%

92

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Blue Chip Growth Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,677		193		—
Units issued	6,570		3,090		281
Units redeemed	(1,004	)	(1,606	)	(88	)
Units, end of period	7,243		1,677		193
Unit value, end of period $	39.69		69.05		61.21
Assets, end of period $	287,475		115,809		11,843
Investment income ratio*	0.44	%	1.03	%	0.04	%
Total return, lowest to highest**	(42.52%) to (28.71	%)	5.35% to 12.81	%	9.59% to 10.44	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Blue Chip Growth Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	58,223		59,046		54,238		55,058		44,396
Units issued	8,612		9,241		11,264		9,424		13,515
Units redeemed	(8,350	)	(10,064	)	(6,456	)	(10,244	)	(2,853	)
Units, end of period	58,485		58,223		59,046		54,238		55,058
Unit value, end of period $	7.76		13.50		11.98		10.93		10.35
Assets, end of period $	453,858		786,228		707,195		592,796		569,861
Investment income ratio*	0.32	%	0.72	%	0.19	%	0.40	%	0.11	%
Total return, lowest to highest**	(42.53	%)	12.75	%	9.58	%	5.60	%	9.03	%

93

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Brandes International Equity Trust
	Year Ended Dec. 31/08 (n)
Units, beginning of period	—
Units issued	71
Units redeemed	(8	)
Units, end of period	63
Unit value, end of period $	22.36
Assets, end of period $	1,409
Investment income ratio*	8.54	%
Total return, lowest to highest**	(39.84%) to (24.43	%)

(n) Fund available in prior year but no activity.

	Sub-Account
	Business Opportunity Value Trust
	Year Ended Dec. 31/08 (n)
Units, beginning of period	—
Units issued	202
Units redeemed	(24	)
Units, end of period	178
Unit value, end of period $	10.58
Assets, end of period $	1,887
Investment income ratio*	0.00	%
Total return, lowest to highest**	(34.70%) to (23.56	%)

(n) Fund available in prior year but no activity.

94

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Capital Appreciation Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	378		131		—
Units issued	3,114		307		163
Units redeemed	(761	)	(60	)	(32	)
Units, end of period	2,731		378		131
Unit value, end of period $	8.72		13.89		12.43
Assets, end of period $	23,813		5,252		1,636
Investment income ratio*	0.89	%	0.54	%	0.00	%
Total return, lowest to highest**	(37.24%) to (23.78	%)	7.66% to 11.70	%	2.38% to 7.46	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Capital Appreciation Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	17,812		16,776		1,128		1,150		602
Units issued	2,481		2,248		17,599		199		595
Units redeemed	(1,525	)	(1,212	)	(1,951	)	(221	)	(47	)
Units, end of period	18,768		17,812		16,776		1,128		1,150
Unit value, end of period $	8.90		14.18		12.71		12.43		10.90
Assets, end of period $	167,094		252,611		213,159		14,011		12,533
Investment income ratio*	0.48	%	0.30	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(37.22	%)	11.61	%	2.26	%	13.99	%	9.33	%

95

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Classic Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	3,990		1,264		—
Units issued	7,177		3,807		1,479
Units redeemed	(908	)	(1,081	)	(215	)
Units, end of period	10,259		3,990		1,264
Unit value, end of period $	6.23		11.44		13.09
Assets, end of period $	63,913		45,655		16,538
Investment income ratio*	3.51	%	2.65	%	8.62	%
Total return, lowest to highest**	(45.55%) to (29.61	%)	(12.58%) to (12.50	%)	13.46% to 16.14	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Classic Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	197		109		23		—
Units issued	58		99		87		23
Units redeemed	(142	)	(11	)	(1	)	—
Units, end of period	113		197		109		23
Unit value, end of period $	8.41		15.44		17.67		15.22
Assets, end of period $	950		3,039		1,923		349
Investment income ratio*	1.24	%	1.99	%	2.20	%	1.20	%
Total return, lowest to highest**	(45.55	%)	(12.58	%)	16.04	%	9.42	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

96

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Core Allocation Plus Trust Series 0
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	51
Units redeemed	(26	)
Units, end of period	25
Unit value, end of period $	6.91
Assets, end of period $	177
Investment income ratio*	11.56	%
Total return, lowest to highest**	(31.54%) to (20.17	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

	Sub-Account
	Core Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (n)
Units, beginning of period	123		—
Units issued	6		123
Units redeemed	(124	)	—
Units, end of period	5		123
Unit value, end of period $	11.53		11.15
Assets, end of period $	53		1,367
Investment income ratio*	3.98	%	89.64	%
Total return, lowest to highest**	1.09% to 3.36	%	4.77% to 6.36	%

(n) Fund available in prior year but no activity.

97

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Core Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,298		1,171		—
Units issued	6,360		174		1,187
Units redeemed	(110	)	(47	)	(16	)
Units, end of period	7,548		1,298		1,171
Unit value, end of period $	14.39		13.93		13.11
Assets, end of period $	108,608		18,077		15,356
Investment income ratio*	12.47	%	7.20	%	0.00	%
Total return, lowest to highest**	3.29	%	6.27	%	3.79	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Core Equity Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	88		13		—
Units issued	1,200		143		19
Units redeemed	(212	)	(68	)	(6	)
Units, end of period	1,076		88		13
Unit value, end of period $	5.28		11.59		12.31
Assets, end of period $	5,680		1,026		166
Investment income ratio*	34.18	%	0.06	%	0.00	%
Total return, lowest to highest**	(54.46%) to (30.69	%)	(6.41%) to (5.85	%)	6.73% to 12.62	%

(n) Fund available in prior year but no activity.

98

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	CSI Equity Trust
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (n)
Units, beginning of period	1,472		—
Units issued	2,834		1,536
Units redeemed	(985	)	(64	)
Units, end of period	3,321		1,472
Unit value, end of period $	12.61		18.48
Assets, end of period $	41,858		27,204
Investment income ratio*	1.30	%	3.40	%
Total return, lowest to highest**	(31.79%) to (20.72	%)	4.87% to 8.61	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Disciplined Diversification Trust Series 0
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	79
Units redeemed	(9	)
Units, end of period	70
Unit value, end of period $	7.22
Assets, end of period $	505
Investment income ratio*	3.08	%
Total return, lowest to highest**	(28.63%) to (18.51	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

99

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Dynamic Growth Trust Series 0
	Year Ended Dec. 31/08 (l)		Year Ended Dec. 31/07 (n)
Units, beginning of period	—		—
Units issued	1		1
Units redeemed	(1	)	(1	)
Units, end of period	—		—
Unit value, end of period $	12.82		14.19
Assets, end of period $	—		6
Investment income ratio*	0.00	%	0.00	%
Total return, lowest to highest**	(9.61	%)	1.69% to 9.44	%

(l) Terminated as an investment option and funds transferred to Mid Cap Stock Trust on April 28, 2008.

(n) Fund available in prior year but no activity.

	Sub-Account
	Dynamic Growth Trust Series 1
	Year Ended Dec. 31/08 (l)		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	6,961		8,090		10,609		15,366		56,383
Units issued	204		755		835		1,666		4,592
Units redeemed	(7,165	)	(1,884	)	(3,354	)	(6,423	)	(45,609	)
Units, end of period	—		6,961		8,090		10,609		15,366
Unit value, end of period $	5.97		6.61		6.05		5.45		4.85
Assets, end of period $	—		45,975		48,900		57,773		74,472
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(9.66	%)	9.27	%	11.02	%	12.40	%	10.01	%

(l) Terminated as an investment option and funds transferred to Mid Cap Stock Trust on April 28, 2008.

100

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Emerging Growth Trust Series 0
	Year Ended Dec. 31/08 (ag)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	12,011		8,983		—
Units issued	5,737		3,720		9,038
Units redeemed	(17,748	)	(692	)	(55	)
Units, end of period	—		12,011		8,983
Unit value, end of period $	7.09		13.88		13.34
Assets, end of period $	—		166,677		119,843
Investment income ratio*	0.42	%	0.18	%	0.00	%
Total return, lowest to highest**	(48.90%) to (37.59	%)	0.36% to 4.02	%	2.01% to 11.59	%

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

(n) Fund available in prior year but no activity.

	Sub-Account
	Emerging Growth Trust Series 1
	Year Ended Dec. 31/08 (ag)		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	1,519		1,403		270		192		31
Units issued	247		180		1,240		97		174
Units redeemed	(1,766	)	(64	)	(107	)	(19	)	(13	)
Units, end of period	—		1,519		1,403		270		192
Unit value, end of period $	11.15		21.82		21.00		18.82		17.48
Assets, end of period $	—		33,135		29,477		5,087		3,358
Investment income ratio*	0.43	%	0.12	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(48.90	%)	3.88	%	11.59	%	7.65	%	6.90	%

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

101

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Emerging Markets Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (f)
Units, beginning of period	22		—
Units issued	2,848		31
Units redeemed	(523	)	(9	)
Units, end of period	2,347		22
Unit value, end of period $	5.77		11.99
Assets, end of period $	13,528		262
Investment income ratio*	6.06	%	2.32	%
Total return, lowest to highest**	(51.92	%)	7.16% to 19.94	%

(f) Reflects the period from commencement of operations on April 30, 2007 through December 31, 2007.

	Sub-Account
	Emerging Small Company Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	833		64		—
Units issued	1,224		814		82
Units redeemed	(129	)	(45	)	(18	)
Units, end of period	1,928		833		64
Unit value, end of period $	7.29		12.83		11.87
Assets, end of period $	14,049		10,696		764
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(43.23%) to (31.25	%)	0.05% to 8.08	%	(1.27%) to 2.44	%

(n) Fund available in prior year but no activity.

102

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Emerging Small Company Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	2,343		3,582		3,818		3,347		5,076
Units issued	389		174		533		1,469		1,042
Units redeemed	(420	)	(1,413	)	(769	)	(998	)	(2,771	)
Units, end of period	2,312		2,343		3,582		3,818		3,347
Unit value, end of period $	9.42		16.61		15.38		15.01		14.29
Assets, end of period $	21,789		38,922		55,094		57,331		47,846
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(43.28	%)	8.05	%	2.41	%	5.05	%	11.51	%

	Sub-Account
	Equity-Income Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	13,704		363		—
Units issued	12,580		23,890		405
Units redeemed	(6,667	)	(10,549	)	(42	)
Units, end of period	19,617		13,704		363
Unit value, end of period $	19.40		30.29		29.30
Assets, end of period $	380,650		415,087		10,628
Investment income ratio*	2.87	%	3.42	%	0.00	%
Total return, lowest to highest**	(35.94%) to (23.36	%)	(0.41%) to 3.39	%	14.00% to 19.05	%

(n) Fund available in prior year but no activity.

103

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Equity-Income Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	34,921		27,570		25,710		30,571		23,364
Units issued	19,705		10,346		7,808		7,052		16,065
Units redeemed	(20,020	)	(2,995	)	(5,948	)	(11,913	)	(8,858	)
Units, end of period	34,606		34,921		27,570		25,710		30,571
Unit value, end of period $	11.79		18.41		17.81		14.96		14.40
Assets, end of period $	407,905		642,765		491,041		384,717		440,193
Investment income ratio*	2.47	%	2.96	%	1.48	%	1.21	%	1.14	%
Total return, lowest to highest**	(35.96	%)	3.35	%	19.02	%	3.92	%	14.81	%

	Sub-Account
	Financial Services Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	3,330		38		—
Units issued	3,338		3,579		49
Units redeemed	(1,267	)	(287	)	(11	)
Units, end of period	5,401		3,330		38
Unit value, end of period $	11.79		21.29		22.83
Assets, end of period $	63,662		70,882		860
Investment income ratio*	1.21	%	2.04	%	0.00	%
Total return, lowest to highest**	(44.63%) to (28.65	%)	(6.73%) to (3.84	%)	19.86% to 23.16	%

(n) Fund available in prior year but no activity.

104

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Financial Services Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	7,478		7,229		6,809		6,538		4,277
Units issued	781		1,398		919		590		2,661
Units redeemed	(560	)	(1,149	)	(499	)	(319	)	(400	)
Units, end of period	7,699		7,478		7,229		6,809		6,538
Unit value, end of period $	9.82		17.74		19.04		15.46		14.09
Assets, end of period $	75,597		132,656		137,620		105,283		92,098
Investment income ratio*	0.93	%	1.22	%	0.35	%	0.37	%	0.37	%
Total return, lowest to highest**	(44.65	%)	(6.81	%)	23.11	%	9.78	%	10.38	%

	Sub-Account
	Franklin Templeton Founding Allocation Trust Series 0
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	228
Units redeemed	(24	)
Units, end of period	204
Unit value, end of period $	6.79
Assets, end of period $	1,389
Investment income ratio*	12.87	%
Total return, lowest to highest**	(32.68%) to (21.32	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

105

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Frontier Capital Appreciation Trust
	Year Ended Dec. 31/08 (n)
Units, beginning of period	—
Units issued	35
Units redeemed	(4	)
Units, end of period	31
Unit value, end of period $	26.44
Assets, end of period $	825
Investment income ratio*	0.00	%
Total return, lowest to highest**	(42.03%) to (33.95	%)

(n) Fund available in prior year but no activity.

	Sub-Account
	Fundamental Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	14,098		77		—
Units issued	10,758		26,145		136
Units redeemed	(12,348	)	(12,124	)	(59	)
Units, end of period	12,508		14,098		77
Unit value, end of period $	8.02		13.20		12.68
Assets, end of period $	100,275		186,091		975
Investment income ratio*	1.07	%	2.19	%	0.00	%
Total return, lowest to highest**	(39.27%) to (27.52	%)	1.75% to 4.08	%	12.76% to 14.55	%

(n) Fund available in prior year but no activity.

106

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Fundamental Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	24,906		16,548		20,132		11,529		8,641
Units issued	37,966		10,471		4,722		11,202		4,284
Units redeemed	(11,670	)	(2,113	)	(8,306	)	(2,599	)	(1,396	)
Units, end of period	51,202		24,906		16,548		20,132		11,529
Unit value, end of period $	11.23		18.50		17.78		15.53		14.27
Assets, end of period $	574,837		460,770		294,245		312,615		164,493
Investment income ratio*	1.56	%	1.72	%	0.86	%	0.32	%	0.47	%
Total return, lowest to highest**	(39.32	%)	4.04	%	14.51	%	8.85	%	11.80	%

	Sub-Account
	Global Allocation Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,007		16		—
Units issued	3,635		1,016		23
Units redeemed	(1,146	)	(25	)	(7	)
Units, end of period	3,496		1,007		16
Unit value, end of period $	8.51		12.93		12.31
Assets, end of period $	29,747		13,022		204
Investment income ratio*	12.78	%	19.26	%	0.46	%
Total return, lowest to highest**	(34.21%) to (24.39	%)	2.47% to 5.06	%	9.71% to 13.58	%

(n) Fund available in prior year but no activity.

107

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Global Allocation Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	5,724		3,608		3,597		3,470		2,732
Units issued	1,088		2,389		1,742		452		928
Units redeemed	(544	)	(273	)	(1,731	)	(325	)	(190	)
Units, end of period	6,268		5,724		3,608		3,597		3,470
Unit value, end of period $	9.55		14.54		13.83		12.18		11.47
Assets, end of period $	59,871		83,210		49,883		43,823		39,805
Investment income ratio*	5.85	%	7.50	%	0.84	%	0.93	%	0.98	%
Total return, lowest to highest**	(34.29	%)	5.14	%	13.50	%	6.20	%	12.73	%

	Sub-Account
	Global Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	8,011		5,545		—
Units issued	9,818		3,005		5,572
Units redeemed	(1,251	)	(539	)	(27	)
Units, end of period	16,578		8,011		5,545
Unit value, end of period $	21.38		22.37		20.41
Assets, end of period $	354,462		179,201		113,181
Investment income ratio*	0.41	%	7.93	%	0.00	%
Total return, lowest to highest**	(10.44%) to (1.77	%)	7.85% to 9.61	%	1.63% to 5.27	%

(n) Fund available in prior year but no activity.

108

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Global Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	22,161		19,361		16,616		10,497		2,551
Units issued	3,522		4,338		4,861		6,724		8,329
Units redeemed	(3,931	)	(1,538	)	(2,116	)	(605	)	(383	)
Units, end of period	21,752		22,161		19,361		16,616		10,497
Unit value, end of period $	15.00		15.70		14.32		13.60		14.56
Assets, end of period $	326,232		347,952		277,265		226,054		152,809
Investment income ratio*	0.57	%	7.50	%	0.00	%	4.02	%	1.92	%
Total return, lowest to highest**	(4.48	%)	9.64	%	5.26	%	(6.54	%)	10.24	%

	Sub-Account
	Global Real Estate Trust Series 0
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	1,633
Units redeemed	(693	)
Units, end of period	940
Unit value, end of period $	5.57
Assets, end of period $	5,239
Investment income ratio*	17.21	%
Total return, lowest to highest**	(44.26%) to (31.57	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

109

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Global Real Estate Trust Series 1
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	77
Units redeemed	(6	)
Units, end of period	71
Unit value, end of period $	5.57
Assets, end of period $	395
Investment income ratio*	11.81	%
Total return, lowest to highest**	(44.31	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

	Sub-Account
	Global Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	4,197		2,705		—
Units issued	3,152		1,807		4,115
Units redeemed	(432	)	(315	)	(1,410	)
Units, end of period	6,917		4,197		2,705
Unit value, end of period $	8.32		13.75		13.57
Assets, end of period $	57,546		57,695		36,705
Investment income ratio*	2.48	%	2.20	%	0.00	%
Total return, lowest to highest**	(39.49%) to (23.39	%)	(1.71%) to 1.32	%	12.88% to 20.42	%

(n) Fund available in prior year but no activity.

110

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Global Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	13,022		15,633		13,660		10,170		7,868
Units issued	2,650		1,996		3,448		4,290		2,852
Units redeemed	(695	)	(4,607	)	(1,475	)	(800	)	(550	)
Units, end of period	14,977		13,022		15,633		13,660		10,170
Unit value, end of period $	9.13		15.11		14.91		12.39		11.19
Assets, end of period $	136,814		196,783		233,132		169,295		113,832
Investment income ratio*	2.29	%	2.27	%	1.20	%	1.17	%	1.62	%
Total return, lowest to highest**	(39.55	%)	1.34	%	20.32	%	10.72	%	14.75	%

	Sub-Account
	Growth & Income Trust Series 0
	Year Ended Dec. 31/08 (ad)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (p)
Units, beginning of period	735		78		—
Units issued	106		763		82
Units redeemed	(841	)	(106	)	(4	)
Units, end of period	—		735		78
Unit value, end of period $	75.32		82.20		78.98
Assets, end of period $	—		60,416		6,167
Investment income ratio*	0.53	%	2.05	%	0.00	%
Total return, lowest to highest**	(8.36	%)	1.54% to 4.07	%	11.54% to 12.72	%

(ad) Terminated as an investment option and funds transferred to Optimized All Cap Trust on April 28, 2008.

(p) Fund renamed on May 1, 2006. Previously known as Growth & Income II Trust. Fund available in prior year but no activity.

111

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Health Sciences Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	2,773		1,264		—
Units issued	5,272		2,035		1,285
Units redeemed	(2,262	)	(526	)	(21	)
Units, end of period	5,783		2,773		1,264
Unit value, end of period $	12.11		17.26		14.66
Assets, end of period $	70,006		47,855		18,523
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(29.86%) to (21.80	%)	11.46% to 17.73	%	8.44% to 13.10	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Health Sciences Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	11,458		10,045		7,865		7,240		6,320
Units issued	1,181		1,818		2,638		1,182		1,376
Units redeemed	(1,585	)	(405	)	(458	)	(557	)	(456	)
Units, end of period	11,054		11,458		10,045		7,865		7,240
Unit value, end of period $	15.58		22.23		18.89		17.43		15.48
Assets, end of period $	172,259		254,704		189,754		137,096		112,026
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(29.90	%)	17.67	%	8.37	%	12.64	%	15.31	%

112

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	High Yield Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	16,740		10,763		—
Units issued	11,169		8,735		10,771
Units redeemed	(2,298	)	(2,758	)	(8	)
Units, end of period	25,611		16,740		10,763
Unit value, end of period $	9.19		13.03		12.82
Assets, end of period $	235,348		218,136		138,004
Investment income ratio*	11.61	%	13.38	%	0.00	%
Total return, lowest to highest**	(29.78%) to (24.36	%)	1.64% to 3.36	%	7.71% to 10.48	%

(n) Fund available in prior year but no activity.

	Sub-Account
	High Yield Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	11,356		10,385		10,591		15,031		21,088
Units issued	936		1,736		1,881		1,853		5,217
Units redeemed	(1,750	)	(765	)	(2,087	)	(6,293	)	(11,274	)
Units, end of period	10,542		11,356		10,385		10,591		15,031
Unit value, end of period $	9.73		13.81		13.59		12.31		11.88
Assets, end of period $	102,692		156,937		141,218		130,490		178,566
Investment income ratio*	9.17	%	13.17	%	6.77	%	5.47	%	5.11	%
Total return, lowest to highest**	(29.51	%)	1.62	%	10.35	%	3.69	%	11.06	%

113

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Income & Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (n)
Units, beginning of period	1,948		—
Units issued	2,889		2,021
Units redeemed	(574	)	(73	)
Units, end of period	4,263		1,948
Unit value, end of period $	8.34		11.93
Assets, end of period $	35,565		23,243
Investment income ratio*	4.39	%	8.14	%
Total return, lowest to highest**	(30.07%) to (17.93	%)	(1.62%) to 1.11	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Income & Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	14,381		12,741		11,488		11,677		7,571
Units issued	899		2,408		2,250		1,768		5,225
Units redeemed	(1,678	)	(768	)	(997	)	(1,957	)	(1,119	)
Units, end of period	13,602		14,381		12,741		11,488		11,677
Unit value, end of period $	10.44		14.94		14.78		13.60		12.92
Assets, end of period $	141,971		214,829		188,250		156,202		150,894
Investment income ratio*	3.10	%	4.09	%	1.93	%	1.60	%	0.98	%
Total return, lowest to highest**	(30.13	%)	1.11	%	8.66	%	5.22	%	7.65	%

114

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Index Allocation Trust Series 0
	Year Ended Dec. 31/08 (m)
Units, beginning of period	—
Units issued	274
Units redeemed	(7	)
Units, end of period	267
Unit value, end of period $	7.52
Assets, end of period $	2,007
Investment income ratio*	3.30	%
Total return, lowest to highest**	(25.51%) to (17.79	%)

(m) Reflects the period from commencement of operations on April 28, 2008 through December 31, 2008.

	Sub-Account
	International Core Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (o)
Units, beginning of period	8,229		17		—
Units issued	10,546		14,581		18
Units redeemed	(2,937	)	(6,369	)	(1	)
Units, end of period	15,838		8,229		17
Unit value, end of period $	10.16		16.55		14.84
Assets, end of period $	160,941		136,150		243
Investment income ratio*	6.00	%	2.85	%	0.00	%
Total return, lowest to highest**	(38.58%) to (22.22	%)	3.06% to 11.46	%	12.48% to 24.81	%

(o) Fund renamed on May 1, 2006. Previously known as International Stock Trust. Fund available in prior year but no activity.

115

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	International Core Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (j)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	6,950		9,008		6,260		6,294		8,503
Units issued	950		616		3,307		1,468		1,831
Units redeemed	(800	)	(2,674	)	(559	)	(1,502	)	(4,040	)
Units, end of period	7,100		6,950		9,008		6,260		6,294
Unit value, end of period $	9.59		15.63		14.02		11.24		9.69
Assets, end of period $	68,092		108,588		126,337		70,365		61,015
Investment income ratio*	5.34	%	1.97	%	0.57	%	0.71	%	0.66	%
Total return, lowest to highest**	(38.62	%)	11.42	%	24.77	%	15.94	%	15.60	%

(j) Fund renamed on May 1, 2006. Previously known as International Stock Trust.

	Sub-Account
	International Equity Index Trust A Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (h)		Year Ended Dec. 31/04 (a)
Units, beginning of period	4,570		6,380		5,918		2,431		—
Units issued	1,480		2,071		1,015		3,675		2,492
Units redeemed	(217	)	(3,881	)	(553	)	(188	)	(61	)
Units, end of period	5,833		4,570		6,380		5,918		2,431
Unit value, end of period $	13.87		25.00		21.66		17.26		14.81
Assets, end of period $	80,892		114,279		138,207		102,169		35,999
Investment income ratio*	2.43	%	3.92	%	0.76	%	0.58	%	0.51	%
Total return, lowest to highest**	(44.54	%)	15.42	%	25.48	%	16.61	%	18.44	%

(h) Fund renamed on May 2, 2005. Previously known as International Equity Index Fund.

(a) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

116

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	International Equity Index Trust B Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	3,143		683		—
Units issued	3,847		2,948		2,503
Units redeemed	(1,437	)	(488	)	(1,820	)
Units, end of period	5,553		3,143		683
Unit value, end of period $	26.52		47.69		41.18
Assets, end of period $	147,285		149,880		28,112
Investment income ratio*	3.57	%	5.34	%	0.00	%
Total return, lowest to highest**	(44.38%) to (27.72	%)	6.22% to 15.82	%	15.34% to 27.11	%

(n) Fund available in prior year but no activity.

	Sub-Account
	International Opportunities Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	12,088		7,441		—
Units issued	8,867		6,627		7,463
Units redeemed	(1,727	)	(1,980	)	(22	)
Units, end of period	19,228		12,088		7,441
Unit value, end of period $	9.16		18.51		15.41
Assets, end of period $	176,120		223,721		114,679
Investment income ratio*	1.71	%	1.79	%	0.00	%
Total return, lowest to highest**	(50.51%) to (34.21	%)	14.07% to 20.10	%	13.70% to 23.96	%

(n) Fund available in prior year but no activity.

117

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	International Opportunities Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	7,946		1,532		547		—
Units issued	765		7,316		1,113		551
Units redeemed	(764	)	(902	)	(128	)	(4	)
Units, end of period	7,947		7,946		1,532		547
Unit value, end of period $	11.42		23.10		19.23		15.53
Assets, end of period $	90,752		183,534		29,465		8,493
Investment income ratio*	1.32	%	1.83	%	0.47	%	0.00	%
Total return, lowest to highest**	(50.56	%)	20.10	%	23.84	%	24.24	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	International Small Cap Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	5,849		1,236		—
Units issued	13,032		7,734		1,273
Units redeemed	(2,110	)	(3,121	)	(37	)
Units, end of period	16,771		5,849		1,236
Unit value, end of period $	7.39		15.73		14.27
Assets, end of period $	123,994		91,997		17,638
Investment income ratio*	4.40	%	3.42	%	0.00	%
Total return, lowest to highest**	(53.00%) to (37.64	%)	(8.01%) to 10.20	%	13.15% to 27.73	%

(n) Fund available in prior year but no activity.

118

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	International Small Cap Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	4,806		7,055		6,861		3,671		5,539
Units issued	617		1,564		1,251		3,625		1,251
Units redeemed	(398	)	(3,813	)	(1,057	)	(435	)	(3,119	)
Units, end of period	5,025		4,806		7,055		6,861		3,671
Unit value, end of period $	10.03		21.32		19.36		15.16		13.77
Assets, end of period $	50,366		102,457		136,582		103,993		50,538
Investment income ratio*	2.83	%	3.06	%	1.06	%	0.79	%	0.09	%
Total return, lowest to highest**	(52.98	%)	10.13	%	27.72	%	10.10	%	21.07	%

	Sub-Account
	International Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	6,077		2,492		—
Units issued	5,367		6,247		3,776
Units redeemed	(1,928	)	(2,662	)	(1,284	)
Units, end of period	9,516		6,077		2,492
Unit value, end of period $	9.15		15.95		14.55
Assets, end of period $	87,033		96,901		36,267
Investment income ratio*	4.57	%	4.31	%	1.61	%
Total return, lowest to highest**	(42.64%) to (26.82	%)	5.24% to 9.61	%	17.67% to 29.61	%

(n) Fund available in prior year but no activity.

119

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	International Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	17,675		18,705		14,042		9,724		3,385
Units issued	1,949		3,518		6,436		7,069		7,075
Units redeemed	(4,702	)	(4,548	)	(1,773	)	(2,751	)	(736	)
Units, end of period	14,922		17,675		18,705		14,042		9,724
Unit value, end of period $	14.23		24.81		22.65		17.48		15.81
Assets, end of period $	212,254		438,521		423,740		245,465		153,774
Investment income ratio*	3.32	%	4.27	%	1.63	%	0.86	%	1.09	%
Total return, lowest to highest**	(42.66	%)	9.52	%	29.60	%	10.54	%	21.55	%

	Sub-Account
	Investment Quality Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,192		1,070		—
Units issued	15,322		334		9,465
Units redeemed	(315	)	(212	)	(8,395	)
Units, end of period	16,199		1,192		1,070
Unit value, end of period $	10.97		11.15		10.50
Assets, end of period $	177,718		13,287		11,233
Investment income ratio*	14.51	%	9.33	%	0.07	%
Total return, lowest to highest**	(3.10%) to 0.35	%	4.83% to 6.23	%	3.64% to 4.76	%

(n) Fund available in prior year but no activity.

120

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Investment Quality Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	27,112		26,647		25,320		22,899		26,345
Units issued	898		2,980		4,806		3,205		6,592
Units redeemed	(7,514	)	(2,515	)	(3,479	)	(784	)	(10,038	)
Units, end of period	20,496		27,112		26,647		25,320		22,899
Unit value, end of period $	15.87		16.14		15.20		14.67		14.35
Assets, end of period $	325,300		437,622		404,971		371,559		328,600
Investment income ratio*	5.64	%	9.08	%	6.08	%	5.46	%	5.87	%
Total return, lowest to highest**	(1.68	%)	6.21	%	3.57	%	2.26	%	4.81	%

	Sub-Account
	Large Cap Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	103		—		—
Units issued	2,182		127		3
Units redeemed	(725	)	(24	)	(3	)
Units, end of period	1,560		103		—
Unit value, end of period $	7.84		12.96		12.77
Assets, end of period $	12,232		1,339		10
Investment income ratio*	4.26	%	1.88	%	0.00	%
Total return, lowest to highest**	(39.55%) to (28.84	%)	(1.46%) to 1.53	%	13.60% to 14.38	%

(n) Fund available in prior year but no activity.

121

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Large Cap Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	12,299		1,132		198		—
Units issued	1,476		12,344		960		202
Units redeemed	(4,950	)	(1,177	)	(26	)	(4	)
Units, end of period	8,825		12,299		1,132		198
Unit value, end of period $	9.79		16.19		15.97		13.96
Assets, end of period $	86,413		199,133		18,073		2,765
Investment income ratio*	1.15	%	0.92	%	0.14	%	0.00	%
Total return, lowest to highest**	(39.52	%)	1.40	%	14.36	%	11.70	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Large Cap Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	29,054		18,023		—
Units issued	26,674		16,231		19,377
Units redeemed	(7,138	)	(5,200	)	(1,354	)
Units, end of period	48,590		29,054		18,023
Unit value, end of period $	9.00		14.03		13.43
Assets, end of period $	437,140		407,689		242,139
Investment income ratio*	1.99	%	1.19	%	0.19	%
Total return, lowest to highest**	(35.89%) to (22.82	%)	0.67% to 4.45	%	11.34% to 16.03	%

(n) Fund available in prior year but no activity.

122

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Large Cap Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	7,285		9,737		3,943		4,272		2,868
Units issued	10,527		1,449		6,387		4,868		1,737
Units redeemed	(1,755	)	(3,901	)	(593	)	(5,197	)	(333	)
Units, end of period	16,057		7,285		9,737		3,943		4,272
Unit value, end of period $	17.41		27.16		26.02		22.44		19.43
Assets, end of period $	279,502		197,865		253,348		88,500		83,020
Investment income ratio*	1.98	%	0.89	%	0.38	%	0.00	%	0.82	%
Total return, lowest to highest**	(35.91	%)	4.38	%	15.94	%	15.48	%	21.80	%

	Sub-Account
	Lifestyle Aggressive Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (q)
Units, beginning of period	102,974		14,198		—
Units issued	503,960		108,697		15,635
Units redeemed	(33,743	)	(19,921	)	(1,437	)
Units, end of period	573,191		102,974		14,198
Unit value, end of period $	8.41		14.50		13.34
Assets, end of period $	4,820,115		1,492,978		189,453
Investment income ratio*	3.05	%	8.15	%	0.03	%
Total return, lowest to highest**	(42.00%) to (28.35	%)	2.48% to 8.66	%	10.16% to 15.48	%

(q) Fund renamed on May 1, 2006. Previously known as Lifestyle Aggressive 1000 Trust. Fund available in prior year but no activity.

123

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Lifestyle Aggressive Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (y)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	13,259		14,854		5,780		4,195		1,349
Units issued	11,462		6,576		9,617		2,974		3,203
Units redeemed	(1,413	)	(8,171	)	(543	)	(1,389	)	(357	)
Units, end of period	23,308		13,259		14,854		5,780		4,195
Unit value, end of period $	9.23		15.91		14.66		12.70		11.48
Assets, end of period $	215,166		210,999		217,765		73,397		48,151
Investment income ratio*	2.40	%	8.45	%	4.98	%	1.49	%	0.51	%
Total return, lowest to highest**	(41.99	%)	8.56	%	15.45	%	10.64	%	16.06	%

(y) Fund renamed on May 1, 2006. Previously known as Lifestyle Aggressive 1000 Trust.

	Sub-Account
	Lifestyle Balanced Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (r)
Units, beginning of period	387,319		137,786		—
Units issued	504,994		289,926		143,814
Units redeemed	(321,462	)	(40,393	)	(6,028	)
Units, end of period	570,851		387,319		137,786
Unit value, end of period $	9.06		13.19		12.37
Assets, end of period $	5,169,712		5,107,767		1,704,547
Investment income ratio*	5.03	%	9.46	%	0.66	%
Total return, lowest to highest**	(31.33%) to (21.25	%)	3.29% to 6.60	%	9.80% to 12.80	%

(r) Fund renamed on May 1, 2006. Previously known as Lifestyle Balanced 640 Trust. Fund available in prior year but no activity.

124

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Lifestyle Balanced Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (z)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	262,330		267,166		262,131		262,614		24,690
Units issued	2,773		2,509		12,412		6,625		243,586
Units redeemed	(11,593	)	(7,345	)	(7,377	)	(7,108	)	(5,662	)
Units, end of period	253,510		262,330		267,166		262,131		262,614
Unit value, end of period $	12.10		17.61		16.54		14.67		13.73
Assets, end of period $	3,066,613		4,618,822		4,418,080		3,845,203		3,604,203
Investment income ratio*	3.32	%	7.59	%	5.33	%	3.89	%	2.78	%
Total return, lowest to highest**	(31.30	%)	6.47	%	12.73	%	6.88	%	13.50	%

(z) Fund renamed on May 1, 2006. Previously known as Lifestyle Balanced 640 Trust.

	Sub-Account
	Lifestyle Conservative Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (s)
Units, beginning of period	6,340		5,018		—
Units issued	6,745		11,135		5,107
Units redeemed	(1,762	)	(9,813	)	(89	)
Units, end of period	11,323		6,340		5,018
Unit value, end of period $	9.99		11.81		11.21
Assets, end of period $	113,099		74,882		56,248
Investment income ratio*	5.53	%	10.77	%	1.34	%
Total return, lowest to highest**	(16.40%) to (10.74	%)	4.04% to 5.35	%	7.10% to 8.44	%

(s) Fund renamed on May 1, 2006. Previously known as Lifestyle Conservative 280 Trust. Fund available in prior year but no activity.

125

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Lifestyle Conservative Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (b)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	24,166		21,148		20,917		17,371		12,746
Units issued	1,006		5,725		8,111		4,786		7,454
Units redeemed	(1,027	)	(2,707	)	(7,880	)	(1,240	)	(2,829	)
Units, end of period	24,145		24,166		21,148		20,917		17,371
Unit value, end of period $	14.09		16.68		15.83		14.60		14.19
Assets, end of period $	340,083		403,143		334,795		305,372		246,488
Investment income ratio*	4.40	%	7.91	%	4.36	%	4.75	%	2.74	%
Total return, lowest to highest**	(15.56	%)	5.37	%	8.43	%	2.88	%	8.60	%

(b) Fund renamed on May 1, 2006. Previously known as Lifestyle Conservative 280 Trust.

	Sub-Account
	Lifestyle Growth Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (t)
Units, beginning of period	525,334		204,103		—
Units issued	459,672		384,810		215,296
Units redeemed	(87,315	)	(63,579	)	(11,193	)
Units, end of period	897,691		525,334		204,103
Unit value, end of period $	8.73		13.76		12.79
Assets, end of period $	7,838,028		7,227,113		2,610,838
Investment income ratio*	3.35	%	8.66	%	0.48	%
Total return, lowest to highest**	(36.54%) to (24.41	%)	3.01% to 7.55	%	9.70% to 13.58	%

(t) Fund renamed on May 1, 2006. Previously known as Lifestyle Growth 820 Trust. Fund available in prior year but no activity.

126

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Lifestyle Growth Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (c)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	108,928		117,981		82,918		29,479		8,740
Units issued	22,074		12,615		36,718		61,289		21,893
Units redeemed	(30,550	)	(21,668	)	(1,655	)	(7,850	)	(1,154	)
Units, end of period	100,452		108,928		117,981		82,918		29,479
Unit value, end of period $	10.62		16.75		15.58		13.73		12.63
Assets, end of period $	1,066,797		1,824,691		1,838,058		1,138,146		372,374
Investment income ratio*	2.45	%	7.43	%	5.50	%	1.73	%	1.12	%
Total return, lowest to highest**	(36.60	%)	7.53	%	13.50	%	8.66	%	14.59	%

(c) Fund renamed on May 1, 2006. Previously known as Lifestyle Growth 820 Trust.

	Sub-Account
	Lifestyle Moderate Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (u)
Units, beginning of period	44,829		8,892		—
Units issued	29,124		45,475		9,210
Units redeemed	(9,077	)	(9,538	)	(318	)
Units, end of period	64,876		44,829		8,892
Unit value, end of period $	9.35		12.33		11.71
Assets, end of period $	606,807		552,888		104,101
Investment income ratio*	4.55	%	8.62	%	0.82	%
Total return, lowest to highest**	(24.16%) to (16.44	%)	3.32% to 5.34	%	8.31% to 10.49	%

(u) Fund renamed on May 1, 2006. Previously known as Lifestyle Moderate 460 Trust. Fund available in prior year but no activity.

127

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Lifestyle Moderate Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (d)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	42,145		41,866		41,768		37,194		415
Units issued	1,138		1,114		1,240		9,679		36,972
Units redeemed	(906	)	(835	)	(1,142	)	(5,105	)	(193	)
Units, end of period	42,377		42,145		41,866		41,768		37,194
Unit value, end of period $	12.65		16.70		15.86		14.36		13.79
Assets, end of period $	536,162		703,757		663,962		599,926		512,934
Investment income ratio*	4.10	%	7.68	%	4.62	%	3.84	%	0.31	%
Total return, lowest to highest**	(24.23	%)	5.29	%	10.42	%	4.15	%	11.04	%

(d) Fund renamed on May 1, 2006. Previously known as Lifestyle Moderate 460 Trust.

	Sub-Account
	Managed Trust Series 0
	Year Ended Dec. 31/08 (ai)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	926		4		—
Units issued	1,034		1,058		6
Units redeemed	(1,960	)	(136	)	(2	)
Units, end of period	—		926		4
Unit value, end of period $	45.11		57.27		56.17
Assets, end of period $	—		53,001		256
Investment income ratio*	0.54	%	6.58	%	0.00	%
Total return, lowest to highest**	(21.22%) to (12.07	%)	1.07% to 1.95	%	7.48% to 8.49	%

(ai) Terminated as an investment option and funds transferred to Lifestyle Balanced Trust on November 10, 2008.

(n) Fund available in prior year but no activity.

128

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Mid Cap Index Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	30,551		23,644		—
Units issued	14,028		8,151		26,995
Units redeemed	(3,296	)	(1,244	)	(3,351	)
Units, end of period	41,283		30,551		23,644
Unit value, end of period $	9.56		15.02		13.97
Assets, end of period $	394,657		458,910		330,235
Investment income ratio*	1.19	%	1.53	%	0.00	%
Total return, lowest to highest**	(36.99%) to (29.45	%)	0.35% to 7.55	%	5.84% to 9.74	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Mid Cap Index Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	6,042		5,958		6,882		7,308		6,580
Units issued	6,691		1,073		1,137		772		2,332
Units redeemed	(464	)	(989	)	(2,061	)	(1,198	)	(1,604	)
Units, end of period	12,269		6,042		5,958		6,882		7,308
Unit value, end of period $	14.62		22.99		21.39		19.49		17.40
Assets, end of period $	179,393		138,936		127,416		134,160		127,175
Investment income ratio*	1.04	%	1.35	%	0.60	%	0.51	%	0.40	%
Total return, lowest to highest**	(36.41	%)	7.51	%	9.72	%	12.02	%	15.83	%

129

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Mid Cap Intersection Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (f)
Units, beginning of period	119		—
Units issued	153		119
Units redeemed	(75	)	—
Units, end of period	197		119
Unit value, end of period $	5.40		9.31
Assets, end of period $	1,067		1,112
Investment income ratio*	0.20	%	0.00	%
Total return, lowest to highest**	(42.00%) to (30.76	%)	(6.87%) to (2.91	%)

(f) Reflects the period from commencement of operations on April 30, 2007 through December 31, 2007.

	Sub-Account
	Mid Cap Stock Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	7,246		1,424		—
Units issued	5,939		9,966		2,052
Units redeemed	(3,674	)	(4,144	)	(628	)
Units, end of period	9,511		7,246		1,424
Unit value, end of period $	27.71		49.27		39.87
Assets, end of period $	263,601		357,025		56,755
Investment income ratio*	0.00	%	0.01	%	0.00	%
Total return, lowest to highest**	(43.75%) to (29.90	%)	10.93% to 23.59	%	8.69% to 13.66	%

(n) Fund available in prior year but no activity.

130

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Mid Cap Stock Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	14,523		16,298		16,350		12,772		9,217
Units issued	4,794		1,154		3,063		6,339		5,182
Units redeemed	(1,048	)	(2,929	)	(3,115	)	(2,761	)	(1,627	)
Units, end of period	18,269		14,523		16,298		16,350		12,772
Unit value, end of period $	12.77		22.72		18.38		16.19		14.13
Assets, end of period $	233,356		329,876		299,587		264,686		180,462
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(43.76	%)	23.57	%	13.55	%	14.57	%	19.04	%

	Sub-Account
	Mid Cap Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	7,947		1,452		—
Units issued	2,047		7,139		1,468
Units redeemed	(1,264	)	(644	)	(16	)
Units, end of period	8,730		7,947		1,452
Unit value, end of period $	7.78		12.76		12.67
Assets, end of period $	67,898		101,410		18,388
Investment income ratio*	2.04	%	1.08	%	0.01	%
Total return, lowest to highest**	(39.05%) to (25.96	%)	(4.59%) to 0.72	%	11.71% to 12.30	%

(n) Fund available in prior year but no activity.

131

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Mid Cap Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	13,779		13,304		12,015		9,740		6,181
Units issued	1,530		1,595		2,715		4,457		4,382
Units redeemed	(1,047	)	(1,120	)	(1,426	)	(2,182	)	(823	)
Units, end of period	14,262		13,779		13,304		12,015		9,740
Unit value, end of period $	13.66		22.41		22.26		19.83		18.36
Assets, end of period $	194,882		308,843		296,130		238,230		178,816
Investment income ratio*	1.98	%	1.07	%	0.65	%	0.39	%	0.50	%
Total return, lowest to highest**	(39.04	%)	0.69	%	12.27	%	8.00	%	24.46	%

	Sub-Account
	Mid Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	10,814		159		—
Units issued	5,694		24,095		186
Units redeemed	(5,099	)	(13,440	)	(27	)
Units, end of period	11,409		10,814		159
Unit value, end of period $	14.18		21.71		21.60
Assets, end of period $	161,810		234,778		3,438
Investment income ratio*	1.29	%	2.77	%	0.00	%
Total return, lowest to highest**	(34.67%) to (26.96	%)	(3.42%) to 0.51	%	14.99% to 20.34	%

(n) Fund available in prior year but no activity.

132

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Money Market Trust B Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	158,313		51,888		—
Units issued	834,050		474,481		570,396
Units redeemed	(630,042	)	(368,056	)	(518,508	)
Units, end of period	362,321		158,313		51,888
Unit value, end of period $	17.26		16.90		16.12
Assets, end of period $	6,253,211		2,675,752		836,632
Investment income ratio*	1.99	%	4.62	%	3.67	%
Total return, lowest to highest**	0.40% to 2.12	%	1.92% to 4.82	%	3.05% to 4.70	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Money Market Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	115,689		160,059		280,201		189,654		185,160
Units issued	48,006		45,130		72,876		134,353		464,096
Units redeemed	(34,709	)	(89,500	)	(193,018	)	(43,806	)	(459,602	)
Units, end of period	128,986		115,689		160,059		280,201		189,654
Unit value, end of period $	13.42		13.19		12.61		12.08		11.76
Assets, end of period $	1,731,142		1,525,766		2,018,882		3,384,034		2,231,134
Investment income ratio*	1.73	%	4.47	%	4.35	%	2.68	%	0.76	%
Total return, lowest to highest**	1.78	%	4.54	%	4.45	%	2.67	%	0.76	%

133

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Natural Resources Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	11,126		1,753		—
Units issued	17,098		12,445		2,899
Units redeemed	(3,319	)	(3,072	)	(1,146	)
Units, end of period	24,905		11,126		1,753
Unit value, end of period $	11.53		23.82		16.92
Assets, end of period $	287,155		265,055		29,662
Investment income ratio*	0.87	%	1.25	%	0.46	%
Total return, lowest to highest**	(57.17%) to (41.22	%)	18.70% to 40.81	%	9.31% to 22.32	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Natural Resources Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (n)
Units, beginning of period	4,558		4,728		3,679		563		—
Units issued	786		1,245		3,138		4,918		578
Units redeemed	(1,767	)	(1,415	)	(2,089	)	(1,802	)	(15	)
Units, end of period	3,577		4,558		4,728		3,679		563
Unit value, end of period $	27.34		56.50		40.16		32.84		22.38
Assets, end of period $	97,811		257,560		189,869		120,819		12,594
Investment income ratio*	0.56	%	1.24	%	0.43	%	0.00	%	0.01	%
Total return, lowest to highest**	(51.61	%)	40.67	%	22.29	%	46.78	%	24.31	%

(n) Fund available in prior year but no activity.

134

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Optimized All Cap Trust Series 0
	Year Ended Dec. 31/08 (aj)		Year Ended Dec. 31/07 (n)
Units, beginning of period	722		—
Units issued	7,169		768
Units redeemed	(1,297	)	(46	)
Units, end of period	6,594		722
Unit value, end of period $	7.81		13.73
Assets, end of period $	51,490		9,907
Investment income ratio*	1.40	%	3.14	%
Total return, lowest to highest**	(43.12%) to (28.05	%)	(0.84%) to 3.82	%

(aj) Fund renamed on April 28, 2008. Previously known as Quantitative All Cap Trust.

(n) Fund available in prior year but no activity.

	Sub-Account
	Optimized All Cap Trust Series 1
	Year Ended Dec. 31/08 (aj)		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (a)
Units, beginning of period	2,069		1,665		1,203		2		—
Units issued	623		499		571		1,202		3
Units redeemed	(2,474	)	(95	)	(109	)	(1	)	(1	)
Units, end of period	218		2,069		1,665		1,203		2
Unit value, end of period $	13.19		23.21		22.36		19.42		17.88
Assets, end of period $	2,873		48,008		37,245		23,366		42
Investment income ratio*	0.15	%	1.29	%	1.14	%	25.57	%	0.74	%
Total return, lowest to highest**	(43.18	%)	3.79	%	15.17	%	8.58	%	14.91	%

(aj) Fund renamed on April 28, 2008. Previously known as Quantitative All Cap Trust.

(a) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

135

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Optimized Value Trust Series 0
	Year Ended Dec. 31/08 (ak)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	645		383		—
Units issued	24		281		383
Units redeemed	(34	)	(19	)	—
Units, end of period	635		645		383
Unit value, end of period $	7.60		12.91		13.61
Assets, end of period $	4,826		8,331		5,208
Investment income ratio*	2.63	%	2.26	%	0.00	%
Total return, lowest to highest**	(41.15%) to (27.37	%)	(5.53%) to (5.17	%)	17.56% to 21.36	%

(ak) Fund renamed on April 28, 2008. Previously known as Quantitative Value Trust.

(n) Fund available in prior year but no activity.

	Sub-Account
	Overseas Equity Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	2,808		317		—
Units issued	18,159		2,849		318
Units redeemed	(386	)	(358	)	(1	)
Units, end of period	20,581		2,808		317
Unit value, end of period $	12.42		21.43		19.04
Assets, end of period $	255,603		60,183		6,048
Investment income ratio*	5.36	%	2.45	%	0.00	%
Total return, lowest to highest**	(42.05%) to (24.67	%)	5.73% to 12.53	%	11.40% to 19.76	%

(n) Fund available in prior year but no activity.

136

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Pacific Rim Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	3,261		483		—
Units issued	6,599		3,013		2,161
Units redeemed	(1,768	)	(235	)	(1,678	)
Units, end of period	8,092		3,261		483
Unit value, end of period $	9.25		15.40		14.10
Assets, end of period $	74,861		50,215		6,815
Investment income ratio*	2.40	%	2.01	%	0.00	%
Total return, lowest to highest**	(39.92%) to (19.85	%)	(0.46%) to 9.19	%	2.51% to 11.22	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Pacific Rim Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	10,448		10,683		5,783		698		1,575
Units issued	1,440		1,100		5,280		5,229		84
Units redeemed	(628	)	(1,335	)	(380	)	(144	)	(961	)
Units, end of period	11,260		10,448		10,683		5,783		698
Unit value, end of period $	12.80		21.34		19.55		17.60		14.00
Assets, end of period $	144,135		222,935		208,854		101,817		9,774
Investment income ratio*	1.82	%	1.78	%	0.83	%	0.21	%	0.71	%
Total return, lowest to highest**	(40.01	%)	9.14	%	11.05	%	25.75	%	16.89	%

137

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Quantitative Mid Cap Trust Series 0
	Year Ended Dec. 31/08 (ae)		Year Ended Dec. 31/07 (n)
Units, beginning of period	251		—
Units issued	1		258
Units redeemed	(252	)	(7	)
Units, end of period	—		251
Unit value, end of period $	11.59		11.96
Assets, end of period $	—		2,996
Investment income ratio*	0.05	%	1.06	%
Total return, lowest to highest**	(3.07	%)	(5.80%) to (1.73	%)

(ae) Terminated as an investment option and funds transferred to Mid Cap Index Trust on April 28, 2008.

(n) Fund available in prior year but no activity.

	Sub-Account
	Quantitative Mid Cap Trust Series 1
	Year Ended Dec. 31/08 (ae)		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	8,227		7,124		5,772		1,498		470
Units issued	213		1,290		1,554		4,504		1,086
Units redeemed	(8,440	)	(187	)	(202	)	(230	)	(58	)
Units, end of period	—		8,227		7,124		5,772		1,498
Unit value, end of period $	14.51		14.96		15.28		14.68		12.92
Assets, end of period $	—		123,113		108,859		84,728		19,350
Investment income ratio*	0.04	%	0.51	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(3.03	%)	(2.08	%)	4.09	%	13.62	%	18.21	%

(ae) Terminated as an investment option and funds transferred to Mid Cap Index Trust on April 28, 2008.

138

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Real Estate Securities Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	4,791		1,852		—
Units issued	3,051		7,190		2,804
Units redeemed	(2,040	)	(4,251	)	(952	)
Units, end of period	5,802		4,791		1,852
Unit value, end of period $	48.75		80.44		95.27
Assets, end of period $	282,887		385,417		176,507
Investment income ratio*	3.65	%	2.97	%	0.50	%
Total return, lowest to highest**	(44.69%) to (36.94	%)	(15.56%) to (1.55	%)	30.03% to 38.17	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Real Estate Securities Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	13,087		13,329		13,302		11,870		10,506
Units issued	1,287		572		1,344		3,175		2,018
Units redeemed	(1,670	)	(814	)	(1,317	)	(1,743	)	(654	)
Units, end of period	12,704		13,087		13,329		13,302		11,870
Unit value, end of period $	17.66		29.15		34.54		25.01		22.36
Assets, end of period $	224,331		381,484		460,421		332,703		265,430
Investment income ratio*	3.39	%	2.60	%	1.76	%	1.82	%	2.24	%
Total return, lowest to highest**	(39.42	%)	(15.61	%)	38.10	%	11.85	%	32.04	%

139

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Real Return Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	13,462		5,831		—
Units issued	16,306		19,254		5,831
Units redeemed	(5,534	)	(11,623	)	—
Units, end of period	24,234		13,462		5,831
Unit value, end of period $	9.88		11.14		10.01
Assets, end of period $	239,506		149,991		58,338
Investment income ratio*	0.52	%	8.03	%	0.00	%
Total return, lowest to highest**	(14.76%) to (11.30	%)	8.41% to 11.36	%	0.43% to 1.65	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Real Return Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (n)
Units, beginning of period	682		720		506		476		—
Units issued	893		41		257		57		515
Units redeemed	(78	)	(79	)	(43	)	(27	)	(39	)
Units, end of period	1,497		682		720		506		476
Unit value, end of period $	14.38		16.21		14.56		14.50		14.30
Assets, end of period $	21,529		11,060		10,499		7,342		6,804
Investment income ratio*	0.37	%	6.68	%	2.40	%	0.00	%	0.00	%
Total return, lowest to highest**	(11.28	%)	11.33	%	0.39	%	1.43	%	9.07	%

(n) Fund available in prior year but no activity.

140

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Science & Technology Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	12,832		9,436		—
Units issued	7,667		3,990		9,471
Units redeemed	(1,521	)	(594	)	(35	)
Units, end of period	18,978		12,832		9,436
Unit value, end of period $	7.91		14.24		11.90
Assets, end of period $	150,194		182,724		112,341
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(44.42%) to (29.01	%)	6.67% to 19.62	%	5.60% to 8.36	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Science & Technology Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	46,958		43,417		31,228		31,376		28,158
Units issued	6,405		6,304		22,753		5,025		10,282
Units redeemed	(21,603	)	(2,763	)	(10,564	)	(5,173	)	(7,064	)
Units, end of period	31,760		46,958		43,417		31,228		31,376
Unit value, end of period $	4.76		8.56		7.16		6.79		6.65
Assets, end of period $	151,121		402,166		311,002		211,989		208,647
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(44.44	%)	19.57	%	5.52	%	2.09	%	0.86	%

141

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Short-Term Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	917		198		—
Units issued	21,424		803		198
Units redeemed	(20,857	)	(84	)	—
Units, end of period	1,484		917		198
Unit value, end of period $	15.45		19.05		18.45
Assets, end of period $	22,919		17,469		3,643
Investment income ratio*	5.38	%	10.66	%	0.00	%
Total return, lowest to highest**	(18.92%) to (15.98	%)	1.04% to 3.25	%	3.60% to 4.55	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Small Cap Growth Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	86		47		—
Units issued	14,490		87		61
Units redeemed	(1,255	)	(48	)	(14	)
Units, end of period	13,321		86		47
Unit value, end of period $	11.84		19.59		17.19
Assets, end of period $	157,744		1,681		808
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(39.54%) to (28.06	%)	6.76% to 13.98	%	5.68% to 13.47	%

(n) Fund available in prior year but no activity.

142

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Small Cap Growth Trust Series 1
	Year Ended Dec. 31/08 (al)
Units, beginning of period	—
Units issued	2,171
Units redeemed	(23	)
Units, end of period	2,148
Unit value, end of period $	10.00
Assets, end of period $	21,479
Investment income ratio*	0.00	%
Total return, lowest to highest**	0.01	%

(al) Reflects the period from commencement of operations on November 10, 2008 through December 31, 2008.

	Sub-Account
	Small Cap Index Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	19,597		8,711		—
Units issued	9,438		20,808		11,898
Units redeemed	(8,009	)	(9,922	)	(3,187	)
Units, end of period	21,026		19,597		8,711
Unit value, end of period $	10.05		15.16		15.48
Assets, end of period $	211,348		297,118		134,855
Investment income ratio*	1.50	%	2.04	%	0.00	%
Total return, lowest to highest**	(33.70%) to (27.53	%)	(2.06%) to (1.09	%)	9.41% to 17.64	%

(n) Fund available in prior year but no activity.

143

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Small Cap Index Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	7,890		7,280		7,525		8,085		5,923
Units issued	731		976		2,003		1,086		2,774
Units redeemed	(430	)	(366	)	(2,248	)	(1,646	)	(612	)
Units, end of period	8,191		7,890		7,280		7,525		8,085
Unit value, end of period $	12.65		19.08		19.50		16.58		15.96
Assets, end of period $	103,558		150,486		141,914		124,730		129,001
Investment income ratio*	1.35	%	1.73	%	0.48	%	0.50	%	0.29	%
Total return, lowest to highest**	(33.71	%)	(2.16	%)	17.62	%	3.89	%	17.33	%

	Sub-Account
	Small Cap Opportunities Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	11,393		8,906		—
Units issued	5,208		3,518		8,922
Units redeemed	(861	)	(1,031	)	(16	)
Units, end of period	15,740		11,393		8,906
Unit value, end of period $	6.87		11.87		12.85
Assets, end of period $	108,133		135,255		114,450
Investment income ratio*	2.84	%	2.05	%	0.00	%
Total return, lowest to highest**	(42.13%) to (30.64	%)	(7.60%) to (6.53	%)	4.03% to 10.47	%

(n) Fund available in prior year but no activity.

144

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Small Cap Opportunities Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (n)
Units, beginning of period	4,351		3,680		3,110		116		—
Units issued	573		874		806		3,145		131
Units redeemed	(480	)	(203	)	(236	)	(151	)	(15	)
Units, end of period	4,444		4,351		3,680		3,110		116
Unit value, end of period $	14.00		24.20		26.20		23.72		22.01
Assets, end of period $	62,219		105,271		96,430		73,778		2,557
Investment income ratio*	2.49	%	1.93	%	0.69	%	0.00	%	0.00	%
Total return, lowest to highest**	(42.13	%)	(7.66	%)	10.45	%	7.77	%	25.78	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Small Cap Trust Series 0
	Year Ended Dec. 31/08 (ag)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	649		253		—
Units issued	397		477		267
Units redeemed	(1,046	)	(81	)	(14	)
Units, end of period	—		649		253
Unit value, end of period $	7.27		12.39		12.32
Assets, end of period $	—		8,043		3,117
Investment income ratio*	0.02	%	0.00	%	0.00	%
Total return, lowest to highest**	(41.37%) to (30.49	%)	0.57% to 0.77	%	6.07% to 7.62	%

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

(n) Fund available in prior year but no activity.

145

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Small Cap Trust Series 1
	Year Ended Dec. 31/08 (ag)		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	562		508		58		—
Units issued	373		228		466		59
Units redeemed	(935	)	(174	)	(16	)	(1	)
Units, end of period	—		562		508		58
Unit value, end of period $	9.07		15.48		15.38		14.30
Assets, end of period $	—		8,695		7,820		834
Investment income ratio*	0.01	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(41.42	%)	0.65	%	7.55	%	14.40	%

(ag) Terminated as an investment option and funds transferred to Small Cap Growth Trust on November 10, 2008.

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Cap Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,206		932		—
Units issued	3,262		336		934
Units redeemed	(180	)	(62	)	(2	)
Units, end of period	4,288		1,206		932
Unit value, end of period $	25.43		34.40		35.44
Assets, end of period $	109,045		41,475		33,041
Investment income ratio*	1.98	%	1.11	%	0.00	%
Total return, lowest to highest**	(27.51%) to (21.37	%)	(4.00%) to (2.92	%)	13.65% to 19.32	%

(n) Fund available in prior year but no activity.

146

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Small Cap Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (g)
Units, beginning of period	1,427		—
Units issued	2,750		1,431
Units redeemed	(75	)	(4	)
Units, end of period	4,102		1,427
Unit value, end of period $	9.08		12.28
Assets, end of period $	37,219		17,514
Investment income ratio*	2.16	%	0.60	%
Total return, lowest to highest**	(26.07	%)	(1.78	%)

(g) Reflects the period from commencement of operations on November 12, 2007 through December 31, 2007.

	Sub-Account
	Small Company Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	1,033		907		4		—
Units issued	170		163		946		7
Units redeemed	(53	)	(37	)	(43	)	(3	)
Units, end of period	1,150		1,033		907		4
Unit value, end of period $	9.07		15.97		17.09		16.18
Assets, end of period $	10,424		16,494		15,507		71
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	(43.24	%)	(6.53	%)	5.60	%	6.32	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

147

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Small Company Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	6,435		1,980		—
Units issued	6,732		8,417		3,801
Units redeemed	(2,963	)	(3,962	)	(1,821	)
Units, end of period	10,204		6,435		1,980
Unit value, end of period $	9.67		13.25		13.41
Assets, end of period $	98,665		85,287		26,542
Investment income ratio*	0.93	%	0.15	%	0.00	%
Total return, lowest to highest**	(29.59%) to (27.05	%)	(2.27%) to (1.14	%)	5.55% to 15.50	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Small Company Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	20,044		20,450		21,737		21,728		16,417
Units issued	1,355		2,087		2,786		6,661		6,333
Units redeemed	(6,937	)	(2,493	)	(4,073	)	(6,652	)	(1,022	)
Units, end of period	14,462		20,044		20,450		21,737		21,728
Unit value, end of period $	16.98		23.28		23.56		20.41		19.07
Assets, end of period $	245,536		466,520		481,732		443,639		414,315
Investment income ratio*	0.65	%	0.15	%	0.07	%	0.25	%	0.15	%
Total return, lowest to highest**	(27.05	%)	(1.20	%)	15.42	%	7.04	%	25.20	%

148

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Strategic Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	352		226		—
Units issued	5,024		217		244
Units redeemed	(1,212	)	(91	)	(18	)
Units, end of period	4,164		352		226
Unit value, end of period $	9.23		10.99		10.99
Assets, end of period $	38,423		3,867		2,487
Investment income ratio*	11.55	%	10.24	%	0.00	%
Total return, lowest to highest**	(16.29%) to (9.37	%)	0.02% to 2.07	%	7.05% to 7.25	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Strategic Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	17,984		15,957		17,099		12,259		19,097
Units issued	2,130		3,201		3,827		6,199		3,903
Units redeemed	(1,329	)	(1,174	)	(4,969	)	(1,359	)	(10,741	)
Units, end of period	18,785		17,984		15,957		17,099		12,259
Unit value, end of period $	14.10		16.80		16.83		15.72		15.30
Assets, end of period $	264,832		302,113		268,472		268,725		187,609
Investment income ratio*	7.47	%	9.44	%	6.21	%	2.67	%	3.18	%
Total return, lowest to highest**	(16.08	%)	(0.15	%)	7.06	%	2.70	%	6.67	%

149

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Strategic Income Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,011		11		—
Units issued	1,968		1,436		12
Units redeemed	(278	)	(436	)	(1	)
Units, end of period	2,701		1,011		11
Unit value, end of period $	10.36		11.33		10.70
Assets, end of period $	27,975		11,451		111
Investment income ratio*	15.25	%	6.48	%	10.39	%
Total return, lowest to highest**	(10.62%) to (8.05	%)	3.96% to 5.85	%	2.73% to 4.08	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Strategic Income Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	2,579		2,329		547		—
Units issued	5,996		307		1,858		549
Units redeemed	(1,080	)	(57	)	(76	)	(2	)
Units, end of period	7,495		2,579		2,329		547
Unit value, end of period $	14.01		15.33		14.48		13.93
Assets, end of period $	105,013		39,540		33,725		7,623
Investment income ratio*	12.59	%	2.16	%	3.76	%	71.07	%
Total return, lowest to highest**	(8.61	%)	5.88	%	3.97	%	2.28	%

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

150

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Total Bond Market Trust B Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07 (ac)		Year Ended Dec. 31/06 (n)
Units, beginning of period	889		—		—
Units issued	3,945		939		—
Units redeemed	(1,452	)	(50	)	—
Units, end of period	3,382		889		—
Unit value, end of period $	18.01		17.03		15.89
Assets, end of period $	60,897		15,131		7
Investment income ratio*	7.37	%	17.08	%	0.00	%
Total return, lowest to highest**	3.41% to 5.79	%	5.28% to 7.13	%	4.07% to 4.95	%

(ac) Fund renamed on October 1, 2007. Previously known as Bond Index Trust B.

(n) Fund available in prior year but no activity.

	Sub-Account
	Total Return Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	19,520		9,727		—
Units issued	15,640		15,689		9,738
Units redeemed	(10,301	)	(5,896	)	(11	)
Units, end of period	24,859		19,520		9,727
Unit value, end of period $	12.71		12.37		11.39
Assets, end of period $	316,074		241,537		110,819
Investment income ratio*	5.46	%	8.82	%	0.00	%
Total return, lowest to highest**	(0.76%) to 2.76	%	7.18% to 8.61	%	3.67% to 4.15	%

(n) Fund available in prior year but no activity.

151

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Total Return Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	24,391		21,929		19,031		15,097		18,923
Units issued	6,163		4,349		5,551		5,524		4,332
Units redeemed	(4,811	)	(1,887	)	(2,653	)	(1,590	)	(8,158	)
Units, end of period	25,743		24,391		21,929		19,031		15,097
Unit value, end of period $	21.22		20.65		19.04		18.37		17.93
Assets, end of period $	546,372		503,738		417,436		349,701		270,713
Investment income ratio*	4.92	%	7.62	%	3.09	%	2.26	%	3.90	%
Total return, lowest to highest**	2.77	%	8.49	%	3.60	%	2.48	%	4.96	%

	Sub-Account
	Total Stock Market Index Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	699		49		—
Units issued	1,147		690		2,623
Units redeemed	(397	)	(40	)	(2,574	)
Units, end of period	1,449		699		49
Unit value, end of period $	30.58		48.65		46.25
Assets, end of period $	44,312		34,014		2,305
Investment income ratio*	2.14	%	3.99	%	0.00	%
Total return, lowest to highest**	(37.15%) to (25.73	%)	1.41% to 5.19	%	12.21% to 15.33	%

(n) Fund available in prior year but no activity.

152

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Total Stock Market Index Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	7,733		7,518		13,380		12,766		10,326
Units issued	951		794		1,665		2,486		2,913
Units redeemed	(654	)	(579	)	(7,527	)	(1,872	)	(473	)
Units, end of period	8,030		7,733		7,518		13,380		12,766
Unit value, end of period $	9.21		14.66		13.94		12.09		11.44
Assets, end of period $	73,919		113,343		104,768		161,733		146,010
Investment income ratio*	1.66	%	2.19	%	0.90	%	1.05	%	0.57	%
Total return, lowest to highest**	(37.20	%)	5.18	%	15.29	%	5.70	%	11.73	%

	Sub-Account
	Turner Core Growth Trust
	Year Ended Dec. 31/08 (n)
Units, beginning of period	—
Units issued	114
Units redeemed	(13	)
Units, end of period	101
Unit value, end of period $	16.72
Assets, end of period $	1,684
Investment income ratio*	0.00	%
Total return, lowest to highest**	(48.97%) to (29.61	%)

(n) Fund available in prior year but no activity.

153

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	U.S. Core Trust Series 0
	Year Ended Dec. 31/08 (ah)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	26		10		—
Units issued	432		33		19
Units redeemed	(458	)	(17	)	(9	)
Units, end of period	—		26		10
Unit value, end of period $	7.76		11.64		11.49
Assets, end of period $	—		301		111
Investment income ratio*	4.69	%	2.44	%	0.15	%
Total return, lowest to highest**	(33.37%) to (21.24	%)	0.22% to 1.31	%	9.26% to 10.74	%

(ah) Terminated as an investment option and funds transferred to Fundamental Value Trust on November 10, 2008.

(n) Fund available in prior year but no activity.

	Sub-Account
	U.S. Core Trust Series 1
	Year Ended Dec. 31/08 (ah)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (i)		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	52,976		52,696		51,833		54,972		66,744
Units issued	2,972		3,754		5,763		4,715		6,641
Units redeemed	(55,948	)	(3,474	)	(4,900	)	(7,854	)	(18,413	)
Units, end of period	—		52,976		52,696		51,833		54,972
Unit value, end of period $	7.22		10.84		10.71		9.81		9.61
Assets, end of period $	—		574,252		564,068		508,201		528,253
Investment income ratio*	1.36	%	2.23	%	1.20	%	1.37	%	0.83	%
Total return, lowest to highest**	(33.39	%)	1.26	%	9.17	%	2.03	%	6.77	%

(ah) Terminated as an investment option and funds transferred to Fundamental Value Trust on November 10, 2008.

(i) Fund renamed on May 1, 2006. Previously known as Growth & Income Trust.

154

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	U.S. Global Leaders Growth Trust Series 0
	Year Ended Dec. 31/08 (af)		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	181		49		—
Units issued	1,761		211		59
Units redeemed	(1,942	)	(79	)	(10	)
Units, end of period	—		181		49
Unit value, end of period $	11.60		11.51		11.10
Assets, end of period $	—		2,088		542
Investment income ratio*	0.17	%	1.77	%	0.00	%
Total return, lowest to highest**	0.73	%	3.72% to 4.85	%	1.81% to 6.90	%

(af) Terminated as an investment option and funds transferred to Blue Chip Growth Trust on April 28, 2008.

(n) Fund available in prior year but no activity.

	Sub-Account
	U.S. Global Leaders Growth Trust Series 1
	Year Ended Dec. 31/08 (af)		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (k)
Units, beginning of period	2,061		2,109		753		—
Units issued	24		106		2,599		979
Units redeemed	(2,085	)	(154	)	(1,243	)	(226	)
Units, end of period	—		2,061		2,109		753
Unit value, end of period $	14.16		14.08		13.58		13.34
Assets, end of period $	—		29,011		28,655		10,050
Investment income ratio*	0.38	%	1.29	%	0.00	%	0.21	%
Total return, lowest to highest**	0.63	%	3.63	%	1.81	%	0.87	%

(af) Terminated as an investment option and funds transferred to Blue Chip Growth Trust on April 28, 2008.

(k) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

155

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	U.S. Government Securities Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	8,751		8,201		—
Units issued	31,120		752		16,342
Units redeemed	(2,039	)	(202	)	(8,141	)
Units, end of period	37,832		8,751		8,201
Unit value, end of period $	12.45		12.64		12.24
Assets, end of period $	471,174		110,571		100,361
Investment income ratio*	6.42	%	8.37	%	0.00	%
Total return, lowest to highest**	(1.44%) to 2.87	%	2.42% to 3.25	%	4.39% to 4.74	%

(n) Fund available in prior year but no activity.

	Sub-Account
	U.S. Government Securities Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	40,891		38,338		35,208		30,248		34,492
Units issued	9,070		6,749		11,430		9,760		11,561
Units redeemed	(9,070	)	(4,196	)	(8,300	)	(4,800	)	(15,805	)
Units, end of period	40,891		40,891		38,338		35,208		30,248
Unit value, end of period $	14.48		14.69		14.24		13.64		13.43
Assets, end of period $	592,168		600,629		545,946		480,306		406,225
Investment income ratio*	3.81	%	8.30	%	5.05	%	1.62	%	1.90	%
Total return, lowest to highest**	(1.41	%)	3.15	%	4.39	%	1.58	%	2.88	%

156

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	U.S. High Yield Bond Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	9,165		8,952		—
Units issued	1,206		254		17,899
Units redeemed	(249	)	(41	)	(8,947	)
Units, end of period	10,122		9,165		8,952
Unit value, end of period $	9.31		11.76		11.42
Assets, end of period $	94,216		107,782		102,207
Investment income ratio*	6.31	%	10.56	%	0.00	%
Total return, lowest to highest**	(21.56%) to (19.03	%)	3.00% to 3.60	%	6.52% to 9.60	%

(n) Fund available in prior year but no activity.

	Sub-Account
	U.S. High Yield Bond Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	1,217		1,100		—
Units issued	162		162		1,115
Units redeemed	(59	)	(45	)	(15	)
Units, end of period	1,320		1,217		1,100
Unit value, end of period $	11.60		14.66		14.25
Assets, end of period $	15,321		17,853		15,680
Investment income ratio*	6.31	%	10.71	%	0.00	%
Total return, lowest to highest**	(20.86	%)	2.86	%	9.57	%

(n) Fund available in prior year but no activity.

157

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	U.S. Large Cap Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	36,100		20,441		—
Units issued	16,012		22,330		20,456
Units redeemed	(7,335	)	(6,671	)	(15	)
Units, end of period	44,777		36,100		20,441
Unit value, end of period $	7.57		12.37		12.41
Assets, end of period $	338,821		446,691		253,599
Investment income ratio*	2.84	%	1.23	%	0.00	%
Total return, lowest to highest**	(38.85%) to (23.68	%)	(3.98%) to (0.26	%)	7.78% to 10.68	%

(n) Fund available in prior year but no activity.

	Sub-Account
	U.S. Large Cap Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	20,647		21,071		19,526		19,069		9,388
Units issued	2,559		2,877		3,532		4,083		11,081
Units redeemed	(2,846	)	(3,301	)	(1,987	)	(3,626	)	(1,400	)
Units, end of period	20,360		20,647		21,071		19,526		19,069
Unit value, end of period $	10.29		16.83		16.89		15.26		14.43
Assets, end of period $	209,467		347,587		355,928		298,078		275,100
Investment income ratio*	2.41	%	1.11	%	0.54	%	0.41	%	0.22	%
Total return, lowest to highest**	(38.88	%)	(0.34	%)	10.66	%	5.81	%	9.39	%

158

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Utilities Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	13,796		2,946		—
Units issued	10,322		14,406		4,217
Units redeemed	(4,534	)	(3,556	)	(1,271	)
Units, end of period	19,584		13,796		2,946
Unit value, end of period $	11.89		19.33		15.17
Assets, end of period $	232,795		266,665		44,689
Investment income ratio*	3.45	%	2.20	%	1.33	%
Total return, lowest to highest**	(38.50%) to (21.20	%)	12.22% to 27.43	%	25.74% to 31.06	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Utilities Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	5,066		4,979		2,818		1,035		602
Units issued	121		618		2,381		1,879		479
Units redeemed	(663	)	(531	)	(220	)	(96	)	(46	)
Units, end of period	4,524		5,066		4,979		2,818		1,035
Unit value, end of period $	14.88		24.26		19.04		14.54		12.44
Assets, end of period $	67,328		122,895		94,806		40,963		12,883
Investment income ratio*	2.78	%	1.96	%	2.39	%	0.52	%	1.09	%
Total return, lowest to highest**	(38.65	%)	27.40	%	31.00	%	16.82	%	29.42	%

159

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

8. Financial Highlights

	Sub-Account
	Value Trust Series 0
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06 (n)
Units, beginning of period	761		226		—
Units issued	4,950		1,515		2,006
Units redeemed	(1,155	)	(980	)	(1,780	)
Units, end of period	4,556		761		226
Unit value, end of period $	8.90		15.05		13.90
Assets, end of period $	40,559		11,452		3,141
Investment income ratio*	1.89	%	2.05	%	0.00	%
Total return, lowest to highest**	(40.84%) to (28.53	%)	(0.18%) to 8.26	%	13.77% to 21.03	%

(n) Fund available in prior year but no activity.

	Sub-Account
	Value Trust Series 1
	Year Ended Dec. 31/08		Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04
Units, beginning of period	17,174		16,045		15,540		16,069		14,870
Units issued	5,121		2,765		3,113		2,110		5,425
Units redeemed	(1,416	)	(1,636	)	(2,608	)	(2,639	)	(4,226	)
Units, end of period	20,879		17,174		16,045		15,540		16,069
Unit value, end of period $	13.05		22.07		20.40		16.85		14.97
Assets, end of period $	272,504		379,076		327,277		261,861		240,568
Investment income ratio*	1.26	%	1.45	%	0.37	%	0.60	%	0.53	%
Total return, lowest to highest**	(40.87	%)	8.22	%	21.05	%	12.56	%	15.18	%

160

John Hancock Life Insurance Company of New York Separate Account B

Notes to Financial Statements (continued)

(*) These ratios, which are not annualized, represent the dividends, excluding distributions of capital gains, received by the sub-account from the underlying Trust portfolio, net of management fees assessed by the Trust portfolio adviser, divided by the average net assets of the sub-account. The recognition of investment income by the sub-account is affected by the timing of the declarations of dividends by the underlying Trust portfolio in which the sub-accounts invest. It is the practice of the Trust, for income tax reasons, to declare dividends in April for investment income received in the previous calendar year for all sub-accounts of the Trust except for the Money Market Trust which declares and reinvests dividends on a daily basis. Any dividend distribution received from a sub-account of the Trust is reinvested immediately, at the net asset value, in shares of that sub-account and retained as assets of the corresponding sub-account so that the unit value of the sub-account is not affected by the declaration and reinvestment of dividends.

(**) These ratios, which are not annualized, represent the total return for the period indicated, including changes in the value of the underlying Trust portfolio. There are no expenses of the Account that result in a direct reduction in unit values. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.

161

May, 2009

This disclosure is distributed to policy owners of variable life insurance policies issued by John Hancock Life Insurance Company of New York (“John Hancock NY”) and offering interests in John Hancock Life Insurance Company of New York Separate Account B (the “Account” or “Separate Account”). Certain of the investment options described in this disclosure may not be available to you under your policy.

1. Investment Options

Certain of the investment options listed below are offered under variable life insurance policies bearing the following titles: VUL Accumulator, EPVUL, VUL Protector, Accumulation VUL, Survivorship VUL, and SPVL.

500 Index	Financial Services	Money Market
500 Index B	Franklin Templeton Founding Allocation	Money Market B
Active Bond	Fundamental Value	Natural Resources
All Cap Core	Global	Optimized All Cap
All Cap Growth	Global Allocation	Optimized Value
All Cap Value	Global Bond	Overseas Equity
Alpha Opportunities	Global Real Estate	Pacific Rim
American Asset Allocation	Health Sciences	PIMCO VIT All Asset
American Blue Chip Income and Growth	High Yield	Real Estate Securities
American Bond	International Core	Real Return Bond
American Diversified Growth and Income	International Equity Index A	Science & Technology
American Fundamental Holdings	International Equity Index B	Short-Term Bond
American Global Diversification	International Opportunities	Small Cap Growth
American Growth	International Small Cap	Small Cap Index
American Growth-Income	International Value	Small Cap Opportunities
American International	Investment Quality Bond	Small Cap Value
American New World	Large Cap	Small Company Value
Balanced	Large Cap Value	Strategic Bond
Blue Chip Growth	Lifestyle Aggressive	Strategic Income
Capital Appreciation	Lifestyle Balanced	Total Bond Market B
Capital Appreciation Value	Lifestyle Conservative	Total Return
Core Allocation Plus	Lifestyle Growth	Total Stock Market Index
Core Bond	Lifestyle Moderate	U.S. Government Securities
Core Strategy	Mid Cap Index	U.S. High Yield Bond
Disciplined Diversification	Mid Cap Intersection	Utilities
Emerging Small Company	Mid Cap Stock	Value
Equity-Income	Mid Value

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2. Total annual portfolio operating expenses

The following table shows the minimum and maximum total portfolio level fees and expenses charged by any of the portfolios underlying a variable investment option offered through the VUL Accumulator, EPVUL, VUL Protector, Accumulation VUL, Survivorship VUL, and SPVL policies, expressed as a percentage of average net assets (rounded to two decimal places). These expenses are deducted from portfolio assets. For more information, please see the prospectus for the underlying portfolio.

	Minimum	Maximum
Expenses that are deducted from the portfolio assets, including advisory fees, Rule 12b-1 fees and other expenses	0.50%	1.64%

3. Table of investment options and investment subadvisers

Please note that certain of the investment options described in this table may not be available to you under your policy.

The following table provides a general description of the portfolios that underlie the variable investment options we make available under the policy. You bear the investment risk of any portfolio you choose as an investment option for your policy. You can find a full description of each portfolio, including the investment objectives, policies, restrictions, and risks, in the prospectus for that portfolio. You should read the portfolio’s prospectus carefully before investing in the corresponding variable investment option.

When you select a Separate Account investment option, we invest your money in shares of a corresponding portfolio of the John Hancock Trust (the “Trust” or “JHT”) (or the PIMCO Variable Insurance Trust (the “PIMCO Trust”) with respect to the PIMCO VIT All Asset portfolio) and hold the shares in a subaccount of the Separate Account. The Fee Tables show the investment management fees, Rule 12b-1 fees and other operating expenses for these portfolio shares as a percentage (rounded to two decimal places) of each portfolio’s average net assets for 2008, except as indicated in the footnotes appearing at the end of the table. Fees and expenses of the portfolios are not fixed or specified under the terms of the policies 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 will earn on any Separate Account investment options you select.

The John Hancock Trust and the PIMCO Trust are so-called “series” type mutual funds and each is registered under the Investment Company Act of 1940 (“1940 Act”) as an open-end management investment company. John Hancock Investment Management Services, LLC (“JHIMS”) provides investment advisory services to the Trust and receives investment management fees for doing so. JHIMS pays a portion of its investment management fees to other firms that manage the Trust’s portfolios. We are affiliated with JHIMS and may indirectly benefit from any investment management fees JHIMS retains. The PIMCO VIT 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.

Each of the American Asset Allocation, American Blue Chip Income and Growth, American Bond, American Diversified Growth and Income, American Global Diversification, American Growth-Income, American Growth, American New World, American Fundamental Holdings, and American International portfolios invests in Series 1 shares of the corresponding investment portfolio of the Trust and is subject to a 0.60% Rule 12b-1 fee. The American Asset Allocation, American Growth, American International, American Growth-Income, American New World, American Blue Chip Income and Growth and American Bond portfolios operate as “feeder funds,” which means that the portfolios do not buy investment securities directly. Instead, they invest in a “master fund” which in turn purchases investment securities. Each of the American feeder fund portfolios has the same investment objective and limitations as its master fund. The prospectus for the American Fund master fund is included with the prospectuses for the underlying funds. We pay American Funds Distributors, Inc., the principal underwriter for the American Funds Insurance Series, a percentage of some or all of the amounts allocated to the “American” portfolios of the Trust for the marketing support services it provides.

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 portfolios 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 that are deducted from a portfolio’s assets for the services we or our

2

affiliates provide to that portfolio. These compensation payments do not, however, result in any charge to you in addition to what is shown in the Fee Tables.

The investment options in the Separate Account are not publicly traded mutual funds. The investment options are only available to you as investment options in the policies, 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 investment options also may be available through participation in certain qualified pension or retirement plans. The portfolios’ investment advisers and managers (i.e. subadvisers) 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 investment option 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 investment options of our Separate Account.

Portfolio	Portfolio Manager	Investment Objective and Strategy
500 Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a broad-based U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the S&P 500 Index* and (b) securities (which may or may not be included in the S&P 500 Index) that the subadviser believes as a group will behave in a manner similar to the index. The subadviser may determine that the portfolio’s investments in certain instruments, such as index futures, total return swaps and exchanged traded portfolios (“ETFs”) have similar economic characteristics to investments that are in the S&P 500 Index.
500 Index B	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a broad-based U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the S&P 500 Index* and (b) securities (which may or may not be included in the S&P 500 Index) that the subadviser believes as a group will behave in a manner similar to the index. The subadviser may determine that the portfolio’s investments in certain instruments, such as index futures, total return swaps and exchanged traded portfolios (“ETFs”) have similar economic characteristics to investments that are in the S&P 500 Index.
Active Bond	Declaration Management & Research LLC/ MFC Global Investment Management (U.S.), LLC	To seek to provide income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in a diversified mix of debt securities and instruments.
All Cap Core	Deutsche Investment Management Americas Inc.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests in common stocks, other equity securities and other asset classes of those companies within the Russell 3000 Index.*
All Cap Growth	Invesco AIM Capital Management, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests its assets principally in common stocks of companies of all market capitalizations. The subadviser focuses on stocks of companies exhibiting long-term sustainable earnings and cash flow growth that is not yet reflected in investor expectations or equity valuations.
All Cap Value	Lord, Abbett & Co., LLC	To seek capital appreciation. Under normal market conditions, the portfolio invests in equity securities of U.S. and multinational companies in all capitalization ranges that the subadviser believes are undervalued. The portfolio will invest at least 50% of its net assets in equity securities of large, seasoned companies with market capitalizations at the time of purchase that fall within the market capitalization range of the Russell 1000 Index.* This range varies daily. The portfolio will invest the remainder of its assets in mid-sized and small company securities.
Alpha Opportunities	Wellington Management Company, LLP	To seek long-term total return. The portfolio employs a “multiple sleeve structure” which means the portfolio has several components that are managed separately in different styles. The portfolio seeks to attain its objective by combining these different component styles into a single portfolio.

3

Portfolio	Portfolio Manager	Investment Objective and Strategy
American Asset Allocation	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to provide high total return (including income and capital gains) consistent with preservation of capital over the long term. The portfolio invests all of its assets in Class 1 shares of the master fund, the Asset Allocation Fund, a series of American Funds Insurance Series. The master fund invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments. In addition, the master fund may invest up to 25% of its debt assets in lower quality debt securities (rated Ba or below by Moody’s and BB or below by S&P or unrated but determined to be of equivalent quality). Such securities are sometimes referred to as “junk bonds.” The master fund is designed for investors seeking above-average total return.
American Blue Chip Income and Growth	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to produce income exceeding the average yield on U.S. stocks generally (as represented by the average yield on the S&P 500 Index*) and to provide an opportunity for growth of principal consistent with sound common stock investing. The portfolio invests all of its assets in Class 1 shares of the master fund, the Blue Chip Income and Growth portfolio, a series of American Funds Insurance Series. The master portfolio invests primarily in common stocks of larger, more established companies based in the U.S. with market capitalizations of $4 billion and above. The master fund may also invest up to 10% of its assets in common stocks of larger, non-U.S. companies, as long as they are listed or traded in the U.S. The master portfolio will invest, under normal market conditions, at least 90% of its assets in equity securities. The portfolio is designed for investors seeking both income and capital appreciation.
American Bond	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to maximize current income and preserve capital. The portfolio invests all of its assets in Class 1 shares of the master fund, the Bond portfolio, a series of American Funds Insurance Series. The master fund normally invests at least 80% of its net assets (plus borrowing for investment purposes) in bonds. The master fund will invest at least 65% of its assets in investment-grade debt securities (including cash and cash equivalents) and may invest up to 35% of its assets in bonds that are rated Ba 1 or below by Moody’s and BB+ or below by S&P or that are unrated but determined to be of equivalent quality (so called “junk bonds”). It may invest in bonds of issuers domiciled outside the U.S.. The portfolio may also invest up to 20% of its assets in preferred stocks, including convertible and non-convertible preferred stocks. The portfolio is designed for investors seeking income and more price stability than stocks, and capital preservation over the long term.
American Diversified Growth & Income	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital and income. The portfolio invests in underlying portfolios as well as other types of investments. Under normal market conditions, the portfolio will generally invest between 70% and 80% of its assets in equity securities, which include securities held by the underlying portfolios, and between 20% and 30% of its assets in fixed income securities, which include securities held by the underlying portfolios.
American Fundamental Holdings	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. The portfolio invests in underlying portfolios as well as other types of investments. The portfolio operates as a fund of funds and currently invests primarily in four underlying portfolios of the American Funds Insurance Series: Bond portfolio, Growth portfolio, Growth-Income portfolio, and International portfolio. The portfolio is permitted to invest in six other underlying portfolios of the American Funds Insurance Series: Asset Allocation portfolio, Blue Chip Income and Growth portfolio, Global Growth portfolio, Global Small Capitalization portfolio, High-Income Bond portfolio, and New World portfolio as well as other underlying portfolios. When purchasing shares of the American Funds Insurance Series, the portfolio only purchases Class 1 shares (which are not subject to Rule 12b-1 fees).
American Global Diversification	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. The portfolio invests in underlying portfolios as well as other types of investments. Under normal market conditions, the portfolio will invest a significant portion of its assets in securities, which include securities held by the underlying portfolios, that are located outside of the U.S.

4

Portfolio	Portfolio Manager	Investment Objective and Strategy
American Growth	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow. The portfolio invests all of its assets in Class 1 shares of the master fund, the Growth portfolio, a series of American Funds Insurance Series. The Growth portfolio invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The Growth portfolio may also invest up to 15% of its assets in equity securities of issuers domiciled outside the U.S. and Canada. In seeking to pursue its investment objective, the portfolio may invest in the securities of issuers representing a broad range of market capitalizations. The portfolio is designed for investors seeking capital appreciation through stocks. Investors in the portfolio should have a long-term perspective and be able to tolerate potentially wide price fluctuations.
American Growth–Income	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investments grow and to provide the shareholder with income over time. The portfolio invests all of its assets in Class 1 shares of the master portfolio, the Growth-Income portfolio, a series of American Funds Insurance Series. The Growth-Income portfolio invests primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. The Growth-Income portfolio may invest up to 15% of its assets in securities of issuers domiciled outside the U.S. and not included in the S&P 500 Index.* The portfolio is designed for investors seeking both capital appreciation and income.
American International	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow. The portfolio invests all of its assets in Class 1 shares of the master fund, the International portfolio, a series of American Funds Insurance Series. The International portfolio invests primarily in common stocks of companies located outside the U.S. The portfolio is designed for investors seeking capital appreciation through stocks. Investors in the portfolio should have a long-term perspective and be able to tolerate potentially wide price fluctuations.
American New World	Capital Research Management Company (Adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow over time. The portfolio invests all of its assets in Class 1 shares of the master fund, the New World portfolio, a series of American Funds Insurance Series. The New World portfolio invests primarily in stocks of companies with significant exposure to countries with developing economies and/or markets. The New World portfolio may also invest in debt securities of issuers, including issuers of lower rated bonds, with exposure to these countries. Under normal market conditions, the portfolio will invest at least 35% of its assets in equity and debt securities of issuers primarily based in what the subadviser deems qualified countries that have developing economies and/or markets. In addition, the portfolio may invest up to 25% of its assets in nonconvertible debt securities of issuers, including issuers of lower rated bonds (“junk bonds”) and government bonds, primarily based in qualified countries or that have a significant portion of their assets or revenues attributable to developing countries. The portfolio may also, to a limited extent, invest in securities of issuers based in nonqualified developing countries.
Balanced	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests in both equity and fixed-income securities. The portfolio employs growth, value and core approaches to allocate its assets among stocks of small, medium and large-capitalization companies in both the U.S. and foreign countries. The portfolio may purchase a variety of fixed income securities, including investment grade and below investment grade debt securities with maturities that range from short to longer term, as well as cash. Under normal market conditions, 55-75% of the portfolio will be invested in equity securities and 25-45% of the portfolio will be invested in fixed-income securities. The precise mix of equity and fixed-income securities will depend on the subadviser’s outlook for the markets and generally reflect the subadviser’s long-term, strategic asset allocation analysis. The subadviser anticipates that adjustments to the targeted asset allocation will result primarily from changes to its outlook for the global and domestic economies, industry sectors and financial markets, and its assessment of the relative attractiveness of each asset class.

5

Portfolio	Portfolio Manager	Investment Objective and Strategy
Blue Chip Growth	T. Rowe Price Associates, Inc.	To seek to provide long-term growth of capital. Current income is a secondary objective. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of large and medium-sized blue chip growth companies. These are firms that, in the subadviser’s view, are well established in their industries and have the potential for above-average earnings growth.
Capital Appreciation	Jennison Associates, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity and equity related securities of companies that, at the time of investment, exceed $1 billion in market capitalization and that the subadviser believes have above-average growth prospects. These companies are generally medium to large-capitalization companies.
Capital Appreciation Value	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in common stocks of established U.S. companies that have above-average potential for capital growth. Common stocks typically constitute at least 50% of the portfolio’s total assets. The remaining assets are generally invested in other securities, including convertible securities, corporate and government debt, foreign securities, futures and options. The portfolio may invest up to 20% of its total assets in foreign securities.
Core Allocation Plus	Wellington Management Company, LLP	To seek total return, consisting of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. The portfolio will allocate its assets between fixed income securities, which may include investment grade and below investment grade debt securities with maturities that range from short to longer term, and equity securities, based upon the subadviser’s targeted asset mix, which may change over time. Under normal circumstances, the targeted asset mix may range between 50%-75% equity instruments and 25%-50% fixed income instruments and will generally reflect the subadviser’s long term, strategic asset allocation analysis. The subadviser anticipates that adjustments to the targeted asset allocation will result primarily from changes to its outlook for the global and domestic economies, industry sectors and financial markets and, to a lesser extent, its opinion of the relative attractiveness of each asset class.
Core Bond	Wells Capital Management, Incorporated	To seek total return consisting of income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in a broad range of investment grade debt securities, including U.S. Government obligations, corporate bonds, mortgage-backed and other asset-backed securities and money market instruments. The subadviser invests in debt securities that the subadviser believes offer attractive yields and are undervalued relative to issues of similar credit quality and interest rate sensitivity. The portfolio may also invest in unrated bonds that the subadviser believes are comparable to investment grade debt securities.
Core Strategy	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. Current income is also a consideration. Under normal market conditions, the portfolio invests in a number of the other index portfolios of JHT. The portfolio invests approximately 70% of its total assets in underlying portfolios which invest primarily in equity securities and approximately 30% of its total assets in underlying portfolios which invest primarily in fixed income securities.
Disciplined Diversification	Dimensional Fund Advisors LP	To seek total return consisting of capital appreciation and current income. Under normal market conditions, the portfolio invests primarily in equity securities and fixed-income securities of domestic and international issuers, including equities of issuers in emerging markets, in accordance with the following range of allocations:
		Target Allocation	Range of Allocations
		Equity Securities: 70%	65% – 75%
		Fixed-Income Securities: 30%	25% – 35%
		The portfolio may invest outside these ranges and may invest defensively during unusual or unsettled market conditions.

6

Portfolio	Portfolio Manager	Investment Objective and Strategy
Emerging Small Company	RCM Capital Management, LLC	To seek long term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in securities of small cap companies. The subadviser defines small cap companies as U.S. companies that have a market capitalization that does not exceed the highest market capitalization of any company contained in either the Russell 2000 Index* or the S&P Small Cap Index.*
Equity-Income	T. Rowe Price Associates, Inc.	To seek to provide substantial dividend income and also long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities, with at least 65% in common stocks of well-established companies paying above-average dividends.
Financial Services	Davis Selected Advisers, L.P.	To seek growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks of companies that, at the time of investment, are principally engaged in financial services.
Franklin Templeton Founding Allocation	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. The portfolio operates as a fund of funds and invests in other portfolios and in other investment companies as well as other types of investments. The portfolio currently invests primarily in three underlying portfolios: Global, Income and Mutual Shares portfolios, as described in the JHT prospectus. The portfolio may purchase any portfolios except other JHT funds of funds and the American feeder funds. When purchasing shares of other JHT funds, the Franklin Templeton Founding Allocation Fund only purchases NAV shares (which are not subject to Rule 12b-1 fees).
Fundamental Value	Davis Selected Advisers, L.P.	To seek growth of capital. Under normal market conditions, the portfolio invests primarily in common stocks of U.S. companies with market capitalizations of at least $10 billion. The portfolio may also invest in companies with smaller capitalizations.
Global	Templeton Global Advisors Limited	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in the equity securities of companies located throughout the world, including emerging markets.
Global Allocation	UBS Global Asset Management (Americas) Inc.	To seek total return, consisting of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. The portfolio will allocate its assets between fixed income securities and equity securities.
Global Bond	Pacific Investment Management Company LLC	To seek maximum total return, consistent with preservation of capital and prudent investment management. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income instruments that are economically tied to at least three countries (one of which may be the U.S.), which may be represented by futures contracts (including related options) with respect to such securities, and options on such securities. These fixed income instruments may be denominated in non-U.S. currencies or in U.S. dollars, which may be represented by forwards or derivatives, such as options, futures contracts, or swap agreements.
Global Real Estate	Deutsche Investment Management Americas Inc.	To seek a combination of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. real estate investments (“REITs”), foreign entities with tax-transparent structures similar to REITs and U.S. and foreign real estate operating companies. Equity securities include common stock, preferred stock and securities convertible into common stock. The portfolio will be invested in issuers located in at least three different countries, including the U.S.
Health Sciences	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks of companies engaged, at the time of investment, in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
High Yield	Western Asset Management Company	To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in high yield securities, including corporate bonds, preferred stocks, U.S. Government and foreign securities, mortgage-backed securities, loan assignments or participations and convertible securities which have the following ratings (or, if unrated, are considered by the subadviser to be of equivalent quality):
		Corporate Bonds, Preferred Stocks and Convertible Securities
		Rating Agency
		Moody’s	Ba through C
		S&P	BB through D
International Core	Grantham, Mayo, Van Otterloo & Co, LLC	To seek high total return. Under normal market conditions, the portfolio invests at least 80% of its total assets in equity investments. The portfolio typically invests in equity investments in companies from developed markets outside the U.S. The portfolio seeks to achieve its objective by outperforming its benchmark, the MSCI EAFE Index.*
International Equity Index A	SSgA Funds Management, Inc.	To seek 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. Under normal market conditions, the portfolio invests at least 80% of its assets in securities listed in the MSCI All CountryWorld Ex U.S. Index* or American Depository Receipts or Global Depository Receipts representing such securities.
International Equity Index B	SSgA Funds Management, Inc.	To seek 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. Under normal market conditions, the portfolio invests at least 80% of its assets in securities listed in the MSCI All CountryWorld Ex U.S. Index* or American Depository Receipts or Global Depository Receipts representing such securities.
International Opportunities	Marsico Capital Management, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in common stocks of foreign companies that are selected for their long-term growth potential. The portfolio may invest in companies of any size throughout the world. The portfolio invests in issuers from at least three different countries not including the U.S. The portfolio may invest in common stocks of companies economically tied to emerging markets. Some issuers or securities in the portfolio may be based in or economically tied to the U.S.
International Small Cap	Franklin Templeton Investment Corp.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in investments of smaller companies outside the U.S., including emerging markets, which have total stock market capitalizations or annual revenues of $4 billion or less.
International Value	Templeton Investment Counsel, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests primarily in equity securities of companies located outside the U.S., including in emerging markets.
Investment Quality Bond	Wellington Management Company, LLP	To provide a high level of current income consistent with the maintenance of principal and liquidity. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in bonds rated investment grade at the time of investment. The portfolio will tend to focus on corporate bonds and U.S. government bonds with intermediate to longer term maturities.
Large Cap	UBS Global Asset Management (Americas) Inc.	To seek to maximize total return, consisting of capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. large capitalization companies. The portfolio defines large capitalization companies as those with a market capitalization range, at the time of investment, equal to that of the portfolio’s benchmark, the Russell 1000 Index.*

8

Portfolio	Portfolio Manager	Investment Objective and Strategy
Large Cap Value	BlackRock Investment Management, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of large cap companies selected from those that are, at the time of purchase, included in the Russell 1000 Value Index.* The portfolio will seek to achieve its investment objective by investing primarily in a diversified portfolio of equity securities of large cap companies located in the U.S. The portfolio will seek to outperform the Russell 1000 Value Index by investing in equity securities that the subadviser believes are selling at below normal valuations.
Lifestyle Aggressive	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Current income is not a consideration. The portfolio operates as a fund of funds and, except as otherwise described below, generally invests approximately 100% of its assets in underlying portfolios that invest primarily in equity securities.
Lifestyle Balanced	MFC Global Investment Management (U.S.A.) Limited	To seek a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. The portfolio operates as a fund of funds and generally invests approximately 40% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 60% in underlying portfolios that invest primarily in equity securities.
Lifestyle Conservative	MFC Global Investment Management (U.S.A.) Limited	To seek a high level of current income with some consideration given to growth of capital. The portfolio operates as a fund of funds and generally invests approximately 80% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 20% in underlying portfolios that invest primarily in equity securities.
Lifestyle Growth	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Current income is also a consideration. The portfolio operates as a fund of funds and, except as otherwise described below, generally invests approximately 20% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 80% in underlying portfolios that invest primarily in equity securities.
Lifestyle Moderate	MFC Global Investment Management (U.S.A.) Limited	To seek a balance between a high level of current income and growth of capital, with a greater emphasis on income. The portfolio operates as a fund of funds and, except as otherwise described below, generally invests approximately 60% of its assets in underlying portfolios that invest primarily in fixed income securities and approximately 40% in underlying portfolios that invest primarily in equity securities.
Mid Cap Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a mid-cap U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the S&P MidCap 400 Index* and (b) securities (which may or may not be included in the S&P MidCap 400 Index) that the subadviser believes as a group will behave in a manner similar to the index.
Mid Cap Intersection	Wellington Management Company, LLP	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium-sized companies with significant capital appreciation potential. For the purposes of the portfolio, “medium-sized companies” are those with market capitalizations, at the time of investment, within the market capitalization range of companies represented in either the Russell MidCap Index* or the S&P MidCap 400 Index.*
Mid Cap Stock	Wellington Management Company, LLP	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium-sized companies with significant capital appreciation potential. For the portfolio, “medium-sized companies” are those with market capitalizations within the collective market capitalization range of companies represented in either the Russell MidCap Index* or the S&P MidCap 400 Index.*

9

Portfolio	Portfolio Manager	Investment Objective and Strategy
Mid Value	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets in companies with market capitalizations that are within the S&P MidCap 400 Index* or the Russell MidCap Value Index.* The portfolio invests in a diversified mix of common stocks of mid-size U.S. companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation.
Money Market	MFC Global Investment Management (U.S.A.) Limited	To seek to obtain maximum current income consistent with preservation of principal and liquidity. Under normal market conditions, the portfolio invests in high quality, U.S. dollar denominated money market instruments. Certain market conditions may cause the return of the portfolio to become low or possibly negative.
Money Market B	MFC Global Investment Management (U.S.A.) Limited	To seek to obtain maximum current income consistent with preservation of principal and liquidity. Under normal market conditions, the portfolio invests in high quality, U.S. dollar denominated money market instruments. Certain market conditions may cause the return of the portfolio to become low or possibly negative.
Natural Resources	Wellington Management Company, LLP	To seek long-term total return. Under normal market conditions, the portfolio will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity and equity-related securities of natural resource-related companies worldwide, including emerging markets. Natural resource-related companies include companies that own or develop energy, metals, forest products and other natural resources, or supply goods and services to such companies.
Optimized All Cap	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity securities of U.S. companies. The portfolio will focus on equity securities of U.S. companies across the three market capitalization ranges of large, mid and small.
Optimized Value	MFC Global Investment Management (U.S.A.) Limited	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity securities of U.S. companies with the potential for long-term growth of capital, with a market capitalization range, at the time of investment, equal to that of the portfolio’s benchmark, the Russell 1000 Value Index.*
Overseas Equity	Capital Guardian Trust Company	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of a diversified mix of large established and medium-sized foreign companies located primarily in developed countries (outside of the U.S.) and, to a lesser extent, in emerging markets.
Pacific Rim	MFC Global Investment Management (U.S.A.) Limited	To seek to achieve long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks and equity-related securities of established, larger-capitalization non-U.S. companies located in the Pacific Rim region, including emerging markets, that have attractive long-term prospects for growth of capital. Current income from dividends and interest will not be an important consideration in the selection of portfolio securities.
PIMCO VIT All Asset (a series of PIMCO Variable Insurance Trust) (only Class M is available for sale)	Pacific Investment Management Company LLC	To seek maximum real return consistent with preservation of real capital and prudent investment management. The portfolio invests primarily in a diversified mix of: (a) common stocks of large and mid sized U.S. companies, and (b) bonds with an overall intermediate term average maturity.
Real Estate Securities	Deutsche Investment Management Americas Inc.	To seek to achieve a combination of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of real estate investments and real estate companies. Equity securities include common stock, preferred stock and securities convertible into common stock.

10

Portfolio	Portfolio Manager	Investment Objective and Strategy
Real Return Bond	Pacific Investment Management Company LLC	To seek maximum real return, consistent with preservation of real capital and prudent investment management. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus borrowings for investment purposes) in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. Governments, their agencies or instrumentalities and corporations, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.
Science & Technology	T. Rowe Price Associates, Inc. RCM Capital Management LLC	To seek long-term growth of capital. Current income is incidental to the portfolio’s objective. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of companies expected to benefit from the development, advancement, and/or use of science and technology. For purposes of satisfying this requirement, common stock may include equity linked notes and derivatives relating to common stocks, such as options on equity linked notes.
Short-Term Bond	Declaration Management & Research, LLC	To seek income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) at the time of investment in a diversified mix of debt securities and instruments. The securities and instruments will have an average credit quality rating of “A” or “AA” and a weighted average effective maturity between one and three years, and no more than 15% of the portfolio’s net assets will be invested in high yield bonds.
Small Cap Growth	Wellington Management Company, LLP	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in small-cap companies. For the purposes of the portfolio, “small-cap companies” are those with market capitalizations, at the time of investment, not exceeding the maximum market capitalization of any company represented in either the Russell 2000 Index* or the S&P SmallCap 600.*
Small Cap Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a small-cap U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the Russell 2000 Index* and (b) securities (which may or may not be included in the Russell 2000 Index) that the subadviser believes as a group will behave in a manner similar to the index.
Small Cap Opportunities	Invesco AIM Capital Management, Inc. & Dimensional Fund Advisors LP	To seek long-term capital appreciation. Under normal market conditions, Invesco AIM Capital Management, Inc. invests at least 80% of its subadvised net assets (plus any borrowings for investment purposes) in equity securities of small-capitalization companies. Dimensional Fund Advisors LP generally will invest its subadvised net assets in a broad and diverse group of readily marketable common stocks of small and mid cap companies traded on a principal U.S. exchange or on the over-the-counter market that Dimensional Fund Advisers LP determines to be value stocks at the time of purchase.
Small Cap Value	Wellington Management Company, LLP	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in small-cap companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation. For the purposes of the portfolio, “small-cap companies” are those with market capitalizations, at the time of investment, not exceeding the maximum market capitalization of any company represented in either the Russell 2000 Index* or the S&P Small Cap 600 Index.*
Small Company Value	T. Rowe Price Associates, Inc.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in companies with market capitalizations, at the time of investment, that do not exceed the maximum market capitalization of any security in the Russell 2000 Index.* The portfolio invests in small companies whose common stocks are believed to be undervalued.

11

Portfolio	Portfolio Manager	Investment Objective and Strategy
Strategic Bond	Western Asset Management Company	To seek a high level of total return consistent with preservation of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities.
Strategic Income	MFC Global Investment Management (U.S.) LLC	To seek a high level of current income. Under normal market conditions, the portfolio invests at least 80% of its assets in the following types of securities: foreign government and corporate debt securities from developed and emerging markets, U.S. Government and agency securities, and domestic high-yield bonds.
Total Bond Market B	Declaration Management & Research LLC	To seek to track the performance of the Barclays Capital U.S. Aggregate Bond Index** (which represents the U.S. investment grade bond market). Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in securities listed in the Barclays Capital U.S. Aggregate Bond Index.
Total Return	Pacific Investment Management Company LLC	To seek maximum total return, consistent with preservation of capital and prudent investment management. Under normal market conditions, the portfolio invests at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives, such as options, futures contracts, or swap agreements.
Total Stock Market Index	MFC Global Investment Management (U.S.A.) Limited	Seeks to approximate the aggregate total return of a broad U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in (a) the common stocks that are included in the Wilshire 5000 Total Market Index* and (b) securities (which may or may not be included in the Wilshire 5000 Total Market Index) that the subadviser believes as a group will behave in a manner similar to the index.
U.S. Government Securities	Western Asset Management Company	To obtain a high level of current income consistent with preservation of capital and maintenance of liquidity. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and derivative securities such as collateralized mortgage obligations backed by such securities and futures contracts. The portfolio may invest the balance of its assets in non-U.S Government securities including, but not limited to, fixed rate and adjustable rate mortgage-backed securities, asset-backed securities, corporate debt securities and money market instruments.
U.S. High Yield Bond	Wells Capital Management Incorporated	To seek total return with a high level of current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in U.S. corporate debt securities that are, at the time of investment, below investment grade, including preferred and other convertible securities in below investment grade debt securities (sometimes referred to as “junk bonds” or high yield securities). The portfolio also invests in corporate debt securities and may buy preferred and other convertible securities and bank loans.
Utilities	MFS Investment Management	To seek capital growth and current income (income above that available from the portfolio invested entirely in equity securities). Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in securities of companies in the utilities industry. Securities in the utilities industry may include equity and debt securities of domestic and foreign companies (including emerging markets).
Value	Van Kampen Investments	To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. Under normal market conditions, the portfolio invests in equity securities of companies with capitalizations, at the time of investment, similar to the market capitalization of companies in the Russell MidCapValue Index.*

*“Wilshire 5000 Total Market Index ^®” is a trademark of Wilshire Associates. “MSCI All Country World Ex US Index” is a trademark of Morgan Stanley & Co. Incorporated. “Russell 1000, ^®” “Russell 2000, ^®” “Russell 1000 Value, ^®” “Russell 3000, ^®” “Russell MidCap, ^®” and “Russell MidCap Value ^®” are trademarks of Frank Russell Company.”S&P 500, ^®” “S&P MidCap 400, ^®” and “S&P SmallCap 600 ^®” are trademarks of The McGraw-Hill Companies, Inc. None of the portfolios are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the portfolios.

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The indices referred to in the portfolio descriptions track companies having the ranges of approximate market capitalization, as of February 28, 2009, set out below:

Wilshire 5000 Total Market Index — $1 million to $385 billion MSCI All Country World Ex US Index — $199 million to $176 billion MSCI EAFE Index — $199 million to $126 billion

Russell 1000 Index — $41 million to $337.9 billion Russell 1000 Value Index — $41 million to $337.9 billion Russell 2000 Index — $3.2 million to $3.7 billion Russell 3000 Index — $3 million to $337.9 billion Russell MidCap Index — $41 million to $13.8 billion Russell MidCap Value Index — $41 million to $13.8 billion S&P 500 Index — $224 million to $337.9 billion S&P MidCap 400 Index — $42 million to $4.6 billion S&P SmallCap 600 Index — $200 million to $1 billion

**The Barclays Capital U.S. Aggregate Bond Index (which represents the U.S. investment grade bond market) is a bond index that relies on indicators such as quality, liquidity, term and duration as relevant measures of performance.

4. Tax considerations

This description of Federal income tax consequences is only a brief summary and is neither exhaustive nor authoritative. It was written to support the promotion of our products. It does not constitute legal or tax advice, and it is not intended to be used and cannot be used to avoid any penalties that may be imposed on you. Tax consequences will vary based on your own particular circumstances, and for further information you should consult a qualified tax adviser. Federal, state and local tax laws, regulations and interpretations can change from time to time. As a result, the tax consequences to you and the beneficiary may be altered, in some cases retroactively. The policy may be used in various arrangements, including non- qualified deferred compensation or salary continuation plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the value of using the policy in any such arrangement depends in part on the tax consequences, a qualified tax adviser should be consulted for advice.

General

We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of the Separate Account in our taxable income and take deductions for investment income credited to our “policy holder 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 the Separate Account for any resulting income tax costs, other than a “DAC tax” charge we may impose against the Separate Account to compensate us for the finance costs attributable to the acceleration of our income tax liabilities by reason of a “DAC tax adjustment.” We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the series funds. These benefits can be material. We do not pass these benefits through to the Separate Account, principally because: (i) the deductions and credits are allowed to us and not the policy owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on the Separate Account assets that are passed through to policy owners.

The policies permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the policies or the Separate Account. Currently, we do not anticipate making any specific charge for such taxes other than any DAC tax charge and premium 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.

Death benefit proceeds and other policy distributions

Generally, death benefits paid under policies such as yours are not subject to income tax. Earnings on your policy value are ordinarily not subject to income tax as long as we don’t pay them out to you. If we do pay out any amount of your policy value upon surrender or partial withdrawal, all or part of that distribution would generally be treated as a return of the premiums you’ve paid and not subjected to income tax. However certain distributions associated with a reduction in death benefit or other policy benefits within the first fifteen years after issuance of the policy are ordinarily taxable in whole or in part. Amounts you borrow are generally not taxable to you.

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However, some of the tax rules change if your policy is found to be a modified endowment contract. This can happen if you’ve paid premiums in excess of limits prescribed by the tax laws. Additional taxes and penalties may be payable for policy distributions of any kind, including loans. (See “7-pay premium limit and modified endowment contract status” below.)

We expect the policy to receive the same Federal income and estate tax treatment as fixed benefit life insurance policies. Section 7702 of the Internal Revenue Code (the “Code”) defines a life insurance contract for Federal tax purposes. For a policy to be treated as a life insurance contract, it must satisfy either the cash value accumulation test or the guideline premium test. These tests limit the amount of premium that you may pay into the policy. We will monitor compliance with these standards. If we determine that a policy does not satisfy section 7702, we may take whatever steps are appropriate and reasonable to bring it into compliance with section 7702.

If the policy complies with section 7702, the death benefit proceeds under the policy ordinarily should be excludable from the beneficiary’s gross income under section 101 of the Code. If your policy offers, and you have elected the Acceleration of Death Benefit for Qualified Long-Term Care Services Rider, the rider’s benefits generally will be excludable from gross income under the Code. The tax-free nature of these accelerated benefits is contingent on the rider meeting specific requirements under section 101 and/or section 7702B of the Code. We have designed the rider to meet these standards.

Increases in policy value as a result of interest or investment experience will not be subject to Federal income tax unless and until values are received through actual or deemed distributions. In general, unless the policy is a modified endowment contract, the owner will be taxed on the amount of distributions that exceed the premiums paid under the policy. An exception to this general rule occurs in the case of a decrease in the policy’s death benefit or any other change that reduces benefits under the policy in the first fifteen years after the policy is issued and that results in a cash distribution to the policy owner. Changes that reduce benefits include partial withdrawals, death benefit option changes, and distributions required to keep the policy in compliance with section 7702. For purposes of this rule any distribution within the two years immediately before a reduction in benefits will also be treated as if it caused the reduction. A cash distribution that reduces policy benefits will be taxed in whole or in part (to the extent of any gain in the policy) under rules prescribed in section 7702. The taxable amount is subject to limits prescribed in section 7702(f)(7). Any taxable distribution will be ordinary income to the owner (rather than capital gain).

Distributions for tax purposes include amounts received upon surrender or partial withdrawals. You may also be deemed to have received a distribution for tax purposes if you assign all or part of your policy rights or change your policy’s ownership. If your policy offers, and you have elected the Acceleration of Death Benefit for Qualified Long-Term Care Services Rider, you may be deemed to have received a distribution for tax purposes each time a deduction is made from your policy value to pay the rider charge. After 2009, such deductions from policy value will be treated as a return of premiums paid, but will not be included in income even if you have recovered all of your premiums.

It is possible that, despite our monitoring, a policy might fail to qualify as a life insurance contract under section 7702 of the Code. This could happen, for example, if we inadvertently failed to return to you any premium payments that were in excess of permitted amounts, or if any of the funds failed to meet certain investment diversification or other requirements of the Code. If this were to occur, you would be subject to income tax on the income credited to the policy from the date of issue to the date of the disqualification and for subsequent periods.

Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws will depend on the circumstances of each owner or beneficiary. If the person insured by the policy is also its owner, either directly or indirectly through an entity such as a revocable trust, the death benefit will be includible in his or her estate for purposes of the Federal estate tax. If the owner is not the person insured, the value of the policy will be includible in the owner’s estate upon his or her death. Even if ownership has been transferred, the death proceeds or the policy value may be includible in the former owner’s estate if the transfer occurred less than three years before the former owner’s death or if the former owner retained certain kinds of control over the policy. You should consult your tax adviser regarding these possible tax consequences.

Because there may be unfavorable tax consequences (including recognition of taxable income and the loss of income tax-free treatment for any death benefit payable to the beneficiary), you should consult a qualified tax adviser prior to changing the policy’s ownership or making any assignment of ownership interests.

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Policy loans

We expect that, except as noted below (see “7-pay premium limit and modified endowment contract status”), loans received under the policy will be treated as indebtedness of an owner and that no part of any loan will constitute income to the owner. However, if the policy terminates for any reason other than the payment of the death benefit, the amount of any outstanding loan that was not previously considered income will be treated as if it had been distributed to the owner upon such termination. This could result in a considerable tax bill. Under certain circumstances involving large amounts of outstanding loans, you might find yourself having to choose between high premiums required to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.

Diversification rules and ownership of the Account

Your policy will not qualify for the tax benefits of a life insurance contract unless the Account follows certain rules requiring diversification of investments underlying the policy. In addition, the rules require that the policy owner not have “investment control” over the underlying assets.

In certain circumstances, the owner of a variable life insurance policy may be considered the owner, for Federal income tax purposes, of the assets of the separate account used to support the policy. In those circumstances, income and gains from the separate account assets would be includible in the policy owner’s gross income. The Internal Revenue Service (“IRS”) has stated in published rulings that a variable policy owner will be considered the owner of separate account assets if the policy 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 sub-accounts 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 life insurance or annuity contract despite the owner’s ability to allocate funds among as many as twenty subaccounts.

The ownership rights under your policy are similar to, but different in certain respects from, those described in IRS rulings in which it was determined that policyholders were not owners of separate account assets. Since you have greater flexibility in allocating premiums and policy values than was the case in those rulings, it is possible that you would be treated as the owner of your policy’s proportionate share of the assets of the Account.

We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that the funds will be able to operate as currently described in the series funds’ prospectuses, or that a series fund will not have to change any fund’s investment objectives or policies. We have reserved the right to modify your policy if we believe doing so will prevent you from being considered the owner of your policy’s proportionate share of the assets of the Account, but we are under no obligation to do so.

7-pay premium limit and modified endowment contract status

At the time of policy issuance, we will determine whether the Planned Premium schedule will exceed the 7-pay limit discussed below. If so, our standard procedures prohibit issuance of the policy unless you sign a form acknowledging that fact.

The 7-pay limit is the total of net level premiums that would have been payable at any time for a comparable fixed policy to be fully “paid-up” after the payment of seven equal annual premiums. “Paid-up” means that no further premiums would be required to continue the coverage in force until maturity, based on certain prescribed assumptions. If the total premiums paid at any time during the first seven policy years exceed the 7-pay limit, the policy will be treated as a modified endowment contract, which can have adverse tax consequences.

Policies classified as modified endowment contracts are subject to the following tax rules:

• First, all partial withdrawals from such a policy are treated as ordinary income subject to tax up to the amount equal to the excess (if any) of the policy value immediately before the distribution over the investment in the policy at such time. If you own any other modified endowment contracts issued to you in the same calendar year by the same insurance company or its affiliates, their values will be combined with the value of the policy from which you take the withdrawal for purposes of determining how much of the withdrawal is taxable as ordinary income.

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• Second, loans taken from or secured by such a policy and assignments or pledges of any part of its value are treated as partial withdrawals from the policy and taxed accordingly. Past-due loan interest that is added to the loan amount is treated as an additional loan.

• Third, a 10% additional income tax is imposed on the portion of any distribution (including distributions on surrender) from, or loan taken from or secured by, such a policy that is included in income except where the distribution or loan:

• is made on or after the date on which the policy owner attains age 59 ¹/ 2;

• is attributable to the policy owner becoming disabled; or

• is part of a series of substantially equal periodic payments for the life (or life expectancy) of the policy owner or the joint lives (or joint life expectancies) of the policy owner and the policy owner’s beneficiary.

These exceptions to the 10% additional tax do not apply in situations where the policy is not owned by an individual.

Furthermore, any time there is a “material change” in a policy, the policy will begin a new 7-pay testing period as if it were a newly-issued policy. The material change rules for determining whether a policy is a modified endowment contract are complex. In general, however, the determination of whether a policy will be a modified endowment contract after a material change depends upon the relationship among the death benefit of the policy at the time of such change, the policy value at the time of the change, and the additional premiums paid into the policy during the seven years starting with the date on which the material change occurs.

Moreover, if there is at any time a reduction in benefits under the policy (such as a reduction in the death benefit or the reduction or cancellation of certain rider benefits) the 7-pay limit will generally be recalculated based on the reduced benefits and the policy will be re-tested from the beginning of the 7-pay testing period using the lower limit from the date it was issued. If the premiums paid to date at any point during the 7-pay testing period are greater than the recalculated 7-pay limit, the policy will become a modified endowment contract. If your policy is a survivorship policy, the 7-pay limit will generally be recalculated based on the reduced benefits and the policy will be re-tested, using the lower limit, from the date it was issued.

If your policy is issued as a result of a section 1035 exchange, it may be considered to be a modified endowment contract if the death benefit under the new policy is smaller than the death benefit under the exchanged policy, or if you reduce coverage in your new policy after it is issued. Therefore, if you desire to reduce the face amount as part of a 1035 exchange, a qualified tax adviser should be consulted for advice.

All modified endowment contracts issued by the same insurer (or its affiliates) to the same owner during any calendar year generally are required to be treated as one contract for the purpose of applying the modified endowment contract rules. A policy received in exchange for a modified endowment contract will itself also be a modified endowment contract. You should consult your tax adviser if you have questions regarding the possible impact of the 7-pay limit on your policy.

Corporate and H.R. 10 retirement plans

The policy may be acquired in connection with the funding of retirement plans satisfying the qualification requirements of section 401 of the Code. If so, the Code provisions relating to such plans and life insurance benefits thereunder should be carefully scrutinized. We are not responsible for compliance with the terms of any such plan or with the requirements of applicable provisions of the Code.

Withholding

To the extent that policy distributions to you are taxable, they are generally subject to withholding for your Federal income tax liability. However if you reside in the United States, you can generally choose not to have tax withheld from distributions.

Life insurance purchases by residents of Puerto Rico

In Rev. Rul. 2004-75, 2004-31 I.R.B. 109, the Internal Revenue Service ruled that income received by residents of Puerto Rico under a life insurance policy issued by a United States company is U.S.-source income that is subject to United States Federal income tax.

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Life insurance purchases by non-resident aliens

If you are not a U.S. citizen or resident, you will generally be subject to U.S. Federal withholding tax on taxable distributions from life insurance policies at a 30% rate, unless a lower treaty rate applies. In addition, you may be subject to state and/or municipal taxes and taxes imposed by your country of citizenship or residence. You should consult with a qualified tax adviser before purchasing a policy.

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In addition to the disclosure contained herein, John Hancock NY has filed with the SEC a prospectus and a Statement of Additional Information (the “SAI”) which contains additional information about John Hancock NY and the Account, including information on our history, services provided to the Account and legal and regulatory matters. The SAI and personalized illustrations of death benefits, account values and surrender values are available, without charge, upon request. You may obtain the personalized illustrations from your John Hancock NY representative. The SAI may be obtained by contacting the John Hancock NY Servicing Office. You should also contact the John Hancock NY Servicing Office to request any other information about your policy or to make any inquiries about its operation.

Information about the Account (including the SAI) can be reviewed and copied at the SEC’s Public Reference Branch, 100 F Street, NE, Room 1580, Washington, DC, 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 202-551-5850. Reports and other information about the Account are available on the SEC’s Internet website at http://www.sec.gov. Copies of such information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549-0102.

PART C

OTHER INFORMATION

Item 26. Exhibits

The following exhibits are filed as part of this Registration Statement:

(a) Resolutions of Board of Directors of First North American Life Assurance Company establishing FNAL Variable Life Account I (now referred to as Separate Account B). Incorporated by reference to exhibit A (1) file number 333-33351 filed with the Commission on August 11, 1997 on behalf of FNAL.

(b) Not applicable.

(c) (1) Underwriting and Distribution Agreement between John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) and Manulife Financial Securities LLC dated January 1, 2002. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(2) Specimen General Agent and Broker-Dealer Selling Agreement by and among John Hancock Life Insurance, John Hancock Variable Life Insurance Company, John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Distributors LLC. Incorporated by reference to pre-effective amendment number 2 file number 333-148992 filed with the Commission on October 10, 2008. List of third party broker-dealer firms (included as attachment A). Incorporated by reference to pre-effective amendment number 1 file number 333-157213 filed with the Commission on April 7, 2009.

(d) (1) Form of Specimen Flexible Premium Variable Universal Life Insurance Policy. Incorporated by reference to pre-effective amendment number 1 file number 333-131139 filed with the Commission on April 28, 2006.

(2) Form of Specimen Enhanced Cash Value Rider. Incorporated by reference to pre-effective amendment number 1 file number 333-131139 filed with the Commission on April 28, 2006.

(3) Form of Specimen Change of Life Insured Rider. Incorporated by reference to pre-effective amendment number 1 file number 333-131139 filed with the Commission on April 28, 2006.

(e) Form of Master COLI Application of Life Insurance, Insurance Schedule to Master COLI Application for Life Insurance, Application Supplement Customized Schedule, Simplified Application for Life Insurance, Application Supplement for Investment Allocation and Investor Suitability, and Consent to Life Insurance. Incorporated by reference to pre-effective amendment number 1 file number 333-131139 filed with the Commission on April 28, 2006.

(f) (1) Declaration of Intention and Charter of First North American Life Assurance Company dated January 30, 1992. Incorporated by reference to Exhibit (6)(A)(I) to post-effective amendment No. 7 file number 33-46217 filed with the Commission on February 25, 1998 on behalf of The Manufacturers Life Insurance Company of New York Separate Account A.

(a) Certificate of amendment of the Declaration of Intention and Charter of First North American Life Assurance Company dated March 6, 1992. Incorporated by reference to Exhibit (6)(A)(II) to post-effective amendment No. 7 file number 33-46217 filed with the Commission on February 25, 1998 on behalf of The Manufacturers Life Insurance Company of New York Separate Account A.

(b) Certificate of Amendment of the Declaration of Intention and Charter of the The Manufacturers Life Insurance Company of New York dated October 17, 1997. Incorporated by reference to Exhibit (6)(A)(III) to post-effective amendment No. 7 file number 33-46217 filed with the Commission on February 25, 1998 on behalf of The Manufacturers Life Insurance Company of New York Separate Account A.

(c) Form of Certificate of Amendment of the Declaration of Intention and Charter of The Manufacturers Life Insurance Company of New York dated January 1, 2005. Incorporated by reference to pre-effective amendment number 1 file number 333-127543 filed with the Commission on November 16, 2005.

(d) Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York dated July 26, 2006. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(2) By-laws of the John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York). Incorporated by reference to Exhibit (6)(B) to post-effective amendment No. 7 file number 33-46217 filed with the Commission on February 25, 1998 on behalf of The Manufacturers Life Insurance Company of New York Separate Account A.

(a) Secretary’s Certificate of Amendment to the By-Laws and Charter of John Hancock Life Insurance Company of New York dated November 17, 2005. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(g) (1) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Optimum Re Insurance Company. Incorporated by reference to pre-effective amendment number 2 file number 333-152407, filed with the Commission on November 21, 2008.

(g) (2) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Transamerica Financial Life Insurance Company. Incorporated by reference to pre-effective amendment number 2 file number 333-152407, filed with the Commission on November 21, 2008.

(g) (3) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Munich American Reassurance Company. Incorporated by reference to pre-effective amendment number 2 file number 333-152407, filed with the Commission on November 21, 2008.

(g) (4) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Generali USA Life Reassurance Company. Incorporated by reference to pre-effective amendment number 2 file number 333-152407, filed with the Commission on November 21, 2008.

(h) (1) Participation Agreement among The Manufacturers Life Insurance Company (U.S.A.), The Manufacturers Insurance Company of New York, PIMCO Variable Insurance Trust and PIMCO Advisors Distributors LLC dated April 30, 2004. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(2) 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. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(3) 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.

(4) 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.

(i) (1) Administrative Services Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) and John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) dated January 1, 2001. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(a) Amendment No. 1 to Administrative Services Agreement between John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York effective May 1, 2005. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(2) Investment Services Agreement between John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) and The Manufacturers Life Insurance Company dated October 1, 1997. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(a) Amendment No. 1 to Investment Services Agreement between John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) and The Manufacturers Life Insurance Company dated August 31, 2000. Incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.

(j) Not Applicable.

(k) Opinion and consent of Gretchen H. Swanz, Secretary and Counsel of The Manufacturers Life Insurance Company of New York dated April 9, 2001. Incorporated by reference to Exhibit (2)(a) to pre-effective amendment no. 1 file number 333-33504 filed with the Commission on May 3, 2001.

(l) Not Applicable.

(m) Not Applicable.

(n) Consents of Independent Registered Public Accounting Firm are filed herewith.

(n) (1) Opinion of Counsel as to the eligibility of this post-effective amendment pursuant to Rule 485(b) is filed herewith.

(o) Not Applicable.

(p) Not Applicable.

(q) Memorandum Regarding Issuance, Face Amount Increase, Redemption and Transfer Procedures for the Policies. Incorporated by reference to Exhibit (a)(6) to pre-effective amendment no. 1 file number 333-33504 filed with the Commission on May 3, 2001.

(i) Powers of Attorney for Marc Costantini, and James D. Gallagher are incorporated by reference to pre-effective amendment number 1 file number 333-131139 filed with the Commission on April 28, 2006.

(ii) Powers of Attorney for Thomas Borshoff, Steven A. Finch, Ruth Ann Fleming, William P. Hicks III, Katherine MacMillan, Neil M. Merkl, Bradford J. Race, Jr., Diana Scott, and Robert L. Ullman are incorporated by reference to post- effective amendment number 1 file number 333-131139 filed with the Commission on April 30, 2007.

(iii) Powers of Attorneys for Marianne Harrison and Ronald J. McHugh are filed herewith.

Item 27. Directors and Officers of the Depositor

OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK as of April 1, 2009.

Name and Principal Business Address	Position with Depositor
Directors
Thomas Borshoff
3 Robin Drive
Rochester, NY 14618	Director
Marc Costantini
601 Congress Street
Boston, MA 02210	Director
Steven A. Finch
197 Clarendon Street
Boston, MA 02117	Director
Ruth Ann Fleming
205 Highland Avenue
Short Hills, NJ 07078	Director
James D. Gallagher
601 Congress Street
Boston, MA 02210	Director
Marianne Harrison
197 Clarendon Street
Boston, MA 02116	Director
William P. Hicks III
115 Perimeter Center Place, Suite 965
Atlanta, GA 30346	Director
Katherine MacMillan
250 Bloor Street, East
Toronto, Canada M4W1E5	Director
Ronald J. McHugh
601 Congress Street
Boston, MA 02210	Director
Neil M. Merkl
35-35 161st Street
Flushing, NY 11358	Director
Bradford J. Race, Jr.
136 East 64th Street
New York, NY 10021	Director
Diana Scott
601 Congress Street
Boston, MA 02210	Director
Robert L. Ullmann
155 Seaport Boulevard
Boston, MA 02210	Director
Officers
James D. Gallagher*	Chairman and President

Name and Principal Business Address	Position with Depositor
Peter Levitt****	Senior Vice President and Treasurer
Krishna Ramdial****	Vice President, Treasury
Emanuel Alves*	Secretary and Chief Administrative Officer
Kwong Yiu****	Assistant Secretary
Richard Harris***	Appointed Actuary
Zahir Bhanji**	Illustration Actuary
Katherine MacMillan****	Executive Vice President, Retirement Plan Services
Ronald McHugh*	Senior Vice President and General Manager, Fixed Products
Hugh McHaffie*	Executive Vice President, US Wealth Management
James R. Boyle**	Executive Vice President, John Hancock Insurance Group
Steven A. Finch**	Executive Vice President, US Insurance
Marc Costantini*	Executive Vice President, Variable Annuities
Lynne Patterson*	Senior Vice President and Chief Financial Officer
Jeffery Whitehead*	Vice President and Controller
Daragh O’Sullivan**	Illustration Officer
Helene Landow***	Director, State Compliance Office
Brooks Tingle**	Senior Vice President, Life Operations
Jill Rebman***	Vice President, New Business
Christopher Walker***	Vice President, Inforce Operations
Gregory Mack**	Senior Vice President, Distribution

*Principal Business Office is 601 Congress Street, Boston, MA 02210

**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 28. Persons Controlled by or Under Common Control with the Depositor or the Registrant

Registrant is a separate account of John Hancock NY, operated as a unit investment trust. Registrant supports benefits payable under John Hancock NY’s variable life insurance policies by investing assets allocated to various investment options in shares of John Hancock Trust and other mutual funds registered under the Investment Company Act of 1940 as open-end management investment companies of the “series” type.

A list of persons directly or indirectly controlled by or under common contract with John Hancock NY as of December 31, 2008 appears below:

Subsidiary Name

Cavalier Cable, Inc.

JHUSA CIP Investments, LLC (Delaware)

John Hancock Advisers LLC (Delaware)

John Hancock Distributors LLC

John Hancock Investment Management Services, LLC

Manulife Service Corporation

Item 29. Indemnification

The Form of Selling Agreement or Service Agreement between John Hancock Distributors LLC and various broker- dealers may provide that the selling broker-dealer indemnify and hold harmless John Hancock Distributors LLC and the Company, including their affiliates, officers, directors, employees and agents against losses, claims, liabilities or expenses (including reasonable attorney’s fees), arising out of or based upon a breach of the Selling or Service Agreement, or any applicable law or regulation or any applicable rule of any self-regulatory organization or similar provision consistent with industry practice.

Item 30. Principal Underwriter

(a) Set forth below is information concerning other investment companies for which John Hancock Distributors LLC, the principal underwriter of the contracts, acts as investment adviser or principal underwriter.

Name of Investment Company	Capacity in Which Acting
John Hancock Variable Life Separate Account S	Principal Underwriter

Name of Investment Company	Capacity in Which Acting
John Hancock Variable Life Separate Account U	Principal Underwriter
John Hancock Variable Life Separate Account V	Principal Underwriter
John Hancock Variable Life Separate Account UV	Principal Underwriter
John Hancock Variable Annuity Separate Account I	Principal Underwriter
John Hancock Variable Annuity Separate Account JF	Principal Underwriter
John Hancock Variable Annuity Separate Account U	Principal Underwriter
John Hancock Variable Annuity Separate Account V	Principal Underwriter
John Hancock Variable Annuity 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 H	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 J	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.)
Separate Account K	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 B	Principal Underwriter
John Hancock Life Insurance Company of New York
Separate Account A	Principal Underwriter

(b) John Hancock Life Insurance Company (U.S.A.) is the sole member of John Hancock Distributors LLC and the following comprise the Board of Managers and Officers of John Hancock Distributors LLC as of April 1, 2009.

Name	Title
Edward Eng*****	Board Manager
Barry Evans******	Board Manager
Steven A. Finch**	Board Manager
Lynne Patterson*	Board Manager
Christopher Walker****	Board Manager
Karen Walsh*	Board Manager
Emanuel Alves*	Secretary
Philip Clarkson***	Vice President, U.S. Taxation
Brian Collins****	Vice President, U.S. Taxation
David Crawford****	Assistant Secretary
	Vice President, Product Development Retirement Plan
Edward Eng*****	Services
Steven A. Finch**	President and Chief Executive Officer
Peter Levitt*****	Senior Vice President, Treasurer
Heather Justason****	Chief Operating Officer
Jeff Long*	Financial Operations Principal
Declan O’Beirne**	Chief Financial Officer
Kathleen Pettit**	Vice President and Chief Compliance Officer
Kris Ramdial*****	Vice President, Treasury
Pamela Schmidt**	General Counsel
Karen Walsh*	Vice President, Annuity Distribution

*Principal Business Office is 601 Congress Street, Boston, MA 02210

**Principal Business Office is 197 Clarendon Street, Boston, MA 02116

***Principal Business Office is 200 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

******Principal Business Office is 101 Huntington Street, Boston, MA 02116

(c) John Hancock Distributors LLC

The information contained in the section titled “Principal Underwriter and Distributor” in the Statement of Additional Information, contained in this Registration Statement, is hereby incorporated by reference in response to Item 31.(c)(2-5).

Item 31. Location of Accounts and Records

The following entities prepare, maintain, and preserve the records required by Section 31(a) of the Act for the Registrant through written agreements between the parties to the effect that such services will be provided to the Registrant for such periods prescribed by the Rules and Regulations of the Commission under the Act and such records will be surrendered promptly on request: John Hancock Distributors LLC, John Hancock Place, Boston, Massachusetts 02117, serves as Registrant’s distributor and principal underwriter, and, in such capacities, keeps records regarding shareholders account records, canceled stock certificates. John Hancock (at the same address), in its capacity as Registrant’s depositor, and John Hancock Life Insurance Company of New York (at the same address), in its capacities as Registrant’s investment adviser, transfer agent, keep all other records required by Section 31 (a) of the Act.

Item 32. Management Services

All management services contracts are discussed in Part A or Part B.

Item 33. Fee Representation

Representation of Insurer Pursuant to Section 26 of the Investment Company Act of 1940.

John Hancock Life Insurance Company of New York 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.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this amendment to the Registration Statement to be signed on their behalf in the City of Boston, Massachusetts, as of the 24th day of April, 2009.

JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK

SEPARATE ACCOUNT B

(Registrant)

JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK

By: /s/ James D. Gallagher

James D. Gallagher

Principal Executive Officer

JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK

(Depositor)

By: /s/ James D. Gallagher

James D. Gallagher

Principal Executive Officer

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, this amendment to the Registration Statement has been signed by the following persons in the capacities indicated as of the 24th day of April, 2009.

/s/ Jeffery J. Whitehead	Vice President and Controller
Jeffery J. Whitehead
/s/ Lynne Patterson	Senior Vice President and Chief Financial Officer
Lynne Patterson
*	Director
Thomas Borshoff
*	Director
Marc Costantini
*	Director
Steven A. Finch
*	Director
Ruth Ann Fleming
*	Director
James D. Gallagher
*	Director
Marianne Harrison
*	Director
William P. Hicks III
*	Director
Katherine MacMillan
*	Director
Ronald J. McHugh
*	Director
Neil M. Merkl
*	Director
Bradford J. Race, Jr.
*	Director
Diana Scott
*	Director
Robert L. Ullmann
/s/ James C. Hoodlet
James C. Hoodlet
Pursuant to Power of Attorney

SUPPLEMENT DATED MAY 1, 2009

TO

PROSPECTUSES DATED MAY 1, 2009 OR LATER

This Supplement is to be distributed with certain prospectuses dated May 1, 2009 or later for variable life insurance policies issued by John Hancock Life Insurance Company, John Hancock Variable Life Insurance Company, John Hancock Life Insurance Company (U.S.A.) or John Hancock Life Insurance Company of New York.

The prospectuses involved bear the title “Protection Variable Universal Life,” “Accumulation Variable Universal Life,” “Corporate VUL,” “Medallion Variable Universal Life Plus,” “Medallion Variable Universal Life Edge,” “Medallion Variable Universal Life Edge II,” “Medallion Executive Variable Life,” “Medallion Executive Variable Life II,” “Medallion Executive Variable Life III,” “Performance Executive Variable Life,” “Variable Estate Protection,” “Variable Estate Protection Plus,” “Variable Estate Protection Edge,” “Performance Survivorship Variable Universal Life” and Survivorship Variable Universal Life.” We refer to these prospectuses as the “Product Prospectuses.”

This supplement will be used only with policies sold through the product prospectuses and through registered representatives affiliated with the M Financial Group.

This Supplement is accompanied with a current prospectus for the M Fund, Inc. that contains detailed information about the funds. Be sure to read that prospectus before selecting any of the four additional variable investment options/investment accounts.

AMENDMENT TO PRODUCT PROSPECTUSES

The table on the cover page of each product prospectus is amended to include the following four additional variable investment options/investment accounts:

Brandes International Equity

Turner Core Growth

Frontier Capital Appreciation

Business Opportunity Value

VL M SUPP (5/09)